/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060621.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, June 21, 2006, Vol. 7, No. 122 Headlines A U S T R I A AGG: Claims Registration Period Ends July 4 FEKETE TRADE: Creditors' Meeting Slated for June 22 GWIND: Claims Registration Period Ends June 28 ISOTEC: St. Polten Court Closes Bankruptcy Proceedings PS GASTRONOMIE: Claims Registration Period Ends July 4 SPORTS CENTER: Claims Registration Period Ends July 12 VWS - LOGOPACK: Claims Registration Period Ends June 22 C Z E C H R E P U B L I C LG PHILIPS: Eyes Strategic Partnership & Debt Settlement F R A N C E DOMOFORM SAS: Undergoes Court-Supervised Administration G E R M A N Y ANG LOGISTIK: Creditors' Meeting Slated for July 5 BAUER AG: DBAG Eyes 41% Equity Sale in Upcoming IPO BLUB BADEPARADIES: Creditors' Meeting Slated for July 4 GRIFF U. RAHMEN: Claims Registration Ends June 30 HOLZBEARBEITUNG HOMANN: Claims Registration Ends July 4 HOSSBACH GMBH: Claims Registration Ends July 5 K & K BAUUNTERNEHMUNG: Creditors' Meeting Slated for July 5 POBURSKI GESCHAFTSFUEHRUNGS: Claims Registration Ends June 23 ROXANA FASHION: Claims Registration Ends July 3 V & K MASSIVHAUS: Claims Registration Ends July 3 VC-TECHNOLOGY: Claims Registration Ends July 5 H U N G A R Y BORSODCHEM RT: Firthlion Hikes Equity Stake to 25.412% I T A L Y PARMALAT SPA: In Talks to Sell Two Venezuelan Plants K A Z A K H S T A N DJEMENEI: Creditors Must File Claims by July 4 EURASIA INSURANCE: S&P Assigns B+ Long-Term Credit Rating GIDROIZOL VEE: Creditors Must File Claims by July 4 IRTYSH-GMS: Creditors' Claims Due July 4 KASKOR-MASHZAVOD: Creditors' Claims Due July 4 LUBBOCK TRADING: Proof of Claim Deadline Slated for July 4 MEGA: Akmola Court Opens Bankruptcy Proceedings PROMETEI: Proof of Claim Deadline Slated for July 4 RTS: East Kazakhstan Court Sets July 4 Claims Bar Date SAREPTA: Claims Registration Ends July 4 UST-KAMENOGORSKOYE MOTOR: Claims Registration Ends July 4 K Y R G Y Z S T A N ASISTA TREID: Creditors Must File Claims by July 30 RIA ERIDAN-SENTR: Proof of Claim Deadline Slated for July 30 SVANS COMPANY: Proof of Claim Deadline Slated for July 28 N E T H E R L A N D S PYATEROCHKA HOLDING: Obtains US$800-Mln Loan to Support Merger R U S S I A ANNINSKIY ELEVATOR: Court Starts Bankruptcy Supervision EVRAZ GROUP: Millhouse Group Acquires 41.3% Equity Stake ISENBAEVSKIY BRICKWORKS: A. Kurochkin Named to Manage Assets KAM-GES-AUTO-TRANS: Court Names L. Peshkov as External Manager KUYBYSHEVSKOYE GRAIN: Court Appoints L. Safin to Manage Assets MAMONSKIY BREAD: Court Appoints Y. Khludnev Insolvency Manager MB CAPITAL: Moody's Rates Loan Participation Notes at B1 NAMSKIY LAPIDARY: Court Begins Bankruptcy Supervision NOVOSHESHMINSKIY BRICKWORKS: M. Shamsiev to Manage Assets OAO SEVERSTAL: Proposes Improved Merger Terms to Arcelor OIL-RESOURCE: Court Opens Bankruptcy Proceedings PYATEROCHKA HOLDING: Obtains US$800-Mln Loan to Support Merger ROSBANK: Fitch Affirms IDR at B+ with Positive Outlook ROSTELECOM: Russia Demands RUB3.47 Billion in Back Taxes RUSSIAN CORN: Court Names K. Garkanov as Insolvency Manager STERLITAMAKSKIY CONCRETE 1: D. Karavaev to Manage Assets VERKHNE-MAMON-AGRO-TRANS: I. Ageev to Manage Insolvency Assets T U R K E Y FORD OTOSAN: Fitch Lowers Local Currency IDR to BB+ U K R A I N E ARTEKA: Ludmila Zayikina to Liquidate Assets BUDSNABRESURS-K: Court Names O. Sherban to Liquidate Assets DEFO: Court Appoints Ludmila Zayikina as Liquidator DEKRA: Court Names I. Fedorov as Insolvency Manager FIESTA: Zaporizhya Court Starts Bankruptcy Supervision GAL-HIMFARB: Andrij Kolisnik Liquidate Insolvency Assets NOVOGRIGORIVSKE: Court Names V. Pejchev to Manage Assets UKRAGROTEHSOUZ: Kyiv Court Begins Bankruptcy Supervision UKRAINIAN INDUSTRIAL: Court Names I. Fedorov Insolvency Manager ZVIT: Court Names S. Kitsul as Insolvency Manager U N I T E D K I N G D O M A.C.I.I. LIMITED: Hires DTE Leonard as Joint Administrators A.I. WORLDWIDE: Brings In Administrators from Smith & Williamson ALBA 2006-1: Fitch Gives BB Rating to GBP9.2-Mln Class E Notes BASELINE LTD: Creditors Pass Winding Up Resolution BRISTOL TOOL: Financial Woes Prompt Liquidation C4 CARRIERS: Creditors Resolve to Voluntary Liquidation CENTRAL SERVICES: Taps N.A. Benett to Liquidate Assets CIG MON: Taps Grant Thornton to Administer Assets CORUS GROUP: S&P Lifts Long-Term Corporate Credit Rating to BB CLAVIS SECURITIES: Fitch Rates GBP8.1-Mln Class B2 Notes at BB DRESS TRIMMINGS: Claims Filing Period Ends July 4 ETHOS PRODUCTIONS: Names G.W. Rhodes Liquidator GOLD SEAL: Appoints Liquidator to Wind Up Assets HADLEIGH DEVELOPMENTS: Hires Begbies Traynor as Administrators HOMECHOICE TRADING: Hires Liquidator from David Horner & Co ID BUILDERS: Brings In Joint Liquidators from Lines Henry INDI-BLUE LIMITED: Begins Liquidation Procedure INMARSAT: Moody's Assigns Ba2 Corporate Family Rating INN HOUSE: Appoints John Paul Bell as Administrator JTD TIMBER: Names Joint Administrators from KPMG KENSA LIMITED: Taps Begbies Traynor to Administer Assets LUCITE INT'L: S&P Lowers Long-Term Corporate Rating to B+ NORTHERN ELECTRICAL: Appoints Joint Administrators from PwC OLWEN DIRECT: Brings In Harris Lipman as Administrators REAL INTERIORS: Hires Gerals Edelman as Joint Administrators SEA CONTAINERS: Moody's Further Cuts Junk Sr. Unsecured Rating ROYAL & SUNALLIANCE: Targets GBP130-Mln Cost Savings by 2008 ********* ============= A U S T R I A ============= AGG: Claims Registration Period Ends July 4 ------------------------------------------- Creditors owed money by LLC AGG (FN 241595m) have until July 4 to submit written proofs of claim to court-appointed property manager Susanne Fruhstorfer at: Dr. Susanne Fruhstorfer Seilerstrasse 228 1010 Vienna Austria Tel: 512 57 76 13 Fax: 512 57 76 50 E-mail: office@fg-lawyers.at Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 18 to consider the revision of the rule by adoption and accountability. Headquartered in Vienna, Austria, the Debtor filed for bankruptcy protection at the Trade Court of Vienna on May 11 (Bankr. Case No. 2 S 80/06m). FEKETE TRADE: Creditors' Meeting Slated for June 22 --------------------------------------------------- Creditors owed money by Fekete Trade Ltd (FN und Company No. 05017782) are encouraged to attend the creditors' meeting at 9:10 a.m., tomorrow, June 22, to consider the revision of the rule by adoption and accountability. The meeting will be held at: The Land Court of Feldkirch Conference Hall 45 1st Floor Feldkirch Austria Headquartered in Salford, Austria, the Debtor declared bankruptcy on May 11 (Bankr. Case No. 14 S 23/06d). Dr. Andreas Fritsch serves as the court-appointed property manager of the bankrupt estate. GWIND: Claims Registration Period Ends June 28 ---------------------------------------------- Creditors owed money by Trade LLC Gwind (FN 260045w) have until June 28 to file written proofs of claims to court-appointed property manager Sieglinde Schubert at: Dr. Sieglinde Schubert Lerchenfelderstrasse 39 1070 Vienna Austria Tel: 3684950 Fax: 368495050 E-mail: sieglindeschubert@aon.at Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 12 to consider the revision of the rule by adoption and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 11 (Bankr. Case No. 4 S 77/06k). Herbert Sachffler represents Dr. Schubert in the bankruptcy proceedings. ISOTEC: St. Polten Court Closes Bankruptcy Proceedings ------------------------------------------------------ The Land Court of St. Polten entered an order closing the bankruptcy proceedings of LLC On Automation And Technology Isotec (FN 254499p) on May 11. Under the confirmed compulsory compensation payment scheme, creditors will recover 40% of their claims to be paid in three installments: (a) 20% within 14 days after confirmation of the payment scheme, but not until the closing of the Debtor's bankruptcy case; (b) 10% within one year; and (c) 10% to be paid within two years. Headquartered in Sitzenberg - Reidling, Austria, the Debtor declared bankruptcy on Feb. 7 (Bankr. Case No. 14 Sa 1/06x). Dr. Friedrich Nusterer served as the court-appointed property manager in the bankrupt estate. PS GASTRONOMIE: Claims Registration Period Ends July 4 ------------------------------------------------------ Creditors owed money by LLC PS Gastronomie (FN 245860i) have until July 4 to file written proofs of claims to court-appointed property manager Beate Sumper at: Beate Sumper Gonzagagasse 15 1010 Vienna Austria Tel: 533 28 55 Fax: 533 28 55 28 E-mail: office@anwaltwien.at Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on July 18 to consider the revision of the rule by adoption and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 11 (Bankr. Case No. 6 S 48/06k). Dr. Susi Rathauscher represents Beate Sumper in the bankruptcy proceedings. SPORTS CENTER: Claims Registration Period Ends July 12 ------------------------------------------------------ Creditors owed money by Sports Center Of The Salzburg Workers have until July 12 to submit written proofs of claim to court- appointed property manager Michael Pallauf at: Dr. Michael Pallauf Petersbrunnstr. 13 5020 Salzburg Austria Tel: 0662-841202 Fax: 0662-84120250 E-mail: officesalzburg@aaa-law.at Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 24 to consider the revision of the rule by adoption and accountability. Headquartered in Salzburg, Austria, the Debtor, which operates a sports center, filed for bankruptcy protection at the Land Court of Salzburg on May 11 (Bankr. Case No. 23 S 34/06d). Johann Jakub represents the Debtor in the bankruptcy proceedings. VWS - LOGOPACK: Claims Registration Period Ends June 22 ------------------------------------------------------- Creditors owed money by LLC VWS - Logopack (FN 55187h) have until tomorrow, June 22, to file written proofs of claims to court-appointed property manager Guenther Viehbock at: Dr. Guenther Viehbock Bahnhofsplatz 1a/1/5 2340 Modling Austria Tel: 02236/22050 Fax: 02236/49239 E-mail: office@viehboeck.at Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 5 to consider the revision of the rule by adoption and accountability. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt, Austria Headquartered in Vosendorf, Austria, the Debtor declared bankruptcy on May 11 (Bankr. Case No. 10 S 41/06t). Maria- Christina Nau represents Dr. Viehbock in the bankruptcy proceedings. =========================== C Z E C H R E P U B L I C =========================== LG PHILIPS: Eyes Strategic Partnership & Debt Settlement -------------------------------------------------------- LG.Philips Displays Czech Republic is trying to settle 30% of its EUR230 million debt within the next 18 months as it seeks for a strategic partner in a stab to prolong its existence, Jason Hovet writes for Czech Business Weekly. LG.Philips, advised by PricewaterhouseCoopers, is currently holding talks with 15 potential strategic partners, mostly liquid crystal display makers and car manufacturers looking for facilities in the region, the paper relates. According to CBW, LG.Philips expects to find a partner by late 2006 or early 2007. The Company has also filed a EUR70-million settlement claim at the Regional Court in Ostrava, North Moravia. Philips, the group's Dutch parent, as well as major creditors, has welcomed the settlement claim, CBW says. The Court might be forced to declare LG.Philips bankrupt if the settlement fails to push through. LG.Philips Display Holding, the group's local parent, succumbed to bankruptcy in February, bringing the Company's future into doubt. LG.Philips plans to stop production of cathode ray tube screens within three-to-four years following a significant decline in the market for CRT, especially in Europe, and a rising market preference to the more modern LCD televisions. For 2006, LG.Philips forecasts an operating profit from CZK5.5 billion in sales. The site has produced 838,000 TV tubes between January and mid-May. LG.Philips Displays Czech Republic s.r.o. is the Czech unit of LG.Philips Displays Holding B.V., the European holding company for LG.Philips Displays. The holding group disclosed that it will not be able to provide further financial support to certain loss-making subsidiaries because it has been unable to obtain sustainable new or additional funding. The holding company filed for insolvency protection on Jan. 27, along with its Dutch subsidiary, LG.Philips Displays Netherlands B.V., and its German subsidiary in Aachen. =========== F R A N C E =========== DOMOFORM SAS: Undergoes Court-Supervised Administration ------------------------------------------------------- The Commercial Court of Poitiers has placed Domoform S.A.S. under court-supervised administration following the Company's series of financial problems brought by a decline in business, Les Echos says. According to the report, Domoform, which will be under a six- month observation period, may have incurred between EUR6 million to EUR8 million in total debts. Headquartered in Montmorillon, France, Domoform -- http://www.domoform.fr/-- manufactures small pieces of furniture and kitchen units, both assembled (average-low price positioning) flat pack kitchen furniture. The Company, which employs 366 workers, is a unit of Italian group Snaidero. ============= G E R M A N Y ============= ANG LOGISTIK: Creditors' Meeting Slated for July 5 -------------------------------------------------- The court-appointed provisional administrator for ANG Logistik GmbH, Wolfgang Schroder, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:20 a.m. on July 5. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 II Stock District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. Creditors have until Aug. 16 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against ANG Logistik GmbH on May 12. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: ANG Logistik GmbH Kinzigstr. 23 10247 Berlin, Germany The administrator can be reached at: Dr. Wolfgang Schroder Genthiner Str. 48 10785 Berlin, Germany BAUER AG: DBAG Eyes 41% Equity Sale in Upcoming IPO --------------------------------------------------- Deutsche Beteiligungs AG will sell its entire 41% stake in Bauer AG, which represents 5.276 million shares, to the public in Bauer's upcoming initial public offering slated for late June or early July, according to published reports. The Bauer family, on the other hand, will remain as the Company's biggest shareholder after it will cut its 56% holdings to 48.2%. As previously reported, the Company will float around 8.9 million shares, representing 52% of its total stock, to fund domestic and foreign expansions. The subscription is expected to run from June 26 to July 3 with the IPO date likely to be on July 4, AFX News reveals. According to AFX, the flotation will include a capital increase of up to 2.35 million shares and a possible greenshoe option of up to 808,160 shares by DBAG. Two Bauer AG units will also sell 450,000 shares, AFX relates. IPO facilitators include: -- Deutsche Bank AG as sole global coordinator and sole bookrunner; -- Dresdner Bank AG as co-lead manager; -- Sal Oppenheim KGaA and Bayerische Landesbank as co- managers. The Company posted a EUR300,000 net loss before minorities in the first quarter 2006, compared to a EUR4.6 million loss for the same period in 2005. Headquartered in Schrobenhausen, Germany, Bauer AG -- http://www.bauer.de/-- is the holding company for Bauer Group and its affiliates. Bauer is engaged in the execution of construction contracts and the sale of construction equipment. Associated activities carried out by the operating companies include environmental technology, structural repair and restoration of buildings, bridge construction and project management. Bauer AG, managed by a Management Board comprising four members and is chaired by Professor Dipl.-Kfm. Thomas Bauer, is responsible for all personnel matters. * * * As reported in TCR-Europe on May 17, Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit rating on Germany-based engineering company Bauer AG on CreditWatch with positive implications, based on an anticipated improvement of capital structure following the company's announcement of its planned IPO, coupled with improved business performance in 2005. BLUB BADEPARADIES: Creditors' Meeting Slated for July 4 ------------------------------------------------------- The court-appointed provisional administrator for BLUB Badeparadies GmbH, Wolfgang Schroder, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:55 a.m. on July 4. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 II Stock District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:40 a.m. on Oct. 24 at the same venue. Creditors have until Aug. 30 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against BLUB Badeparadies GmbH on May 29. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: BLUB Badeparadies GmbH Buschkrugallee 64 12359 Berlin, Germany The administrator can be reached at: Dr. Wolfgang Schroder Genthiner Str. 48 10785 Berlin, Germany GRIFF U. RAHMEN: Claims Registration Ends June 30 ------------------------------------------------- Creditors of Griff u. Rahmen GmbH have until June 30 to register their claims with court-appointed provisional administrator Ingo Wiese. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Kiel Hall 18 Kiel, 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 Kiel opened bankruptcy proceedings against Griff u. Rahmen GmbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Griff u. Rahmen GmbH Knooper Way 33 24103 Kiel, Germany The administrator can be contacted at: Ingo Wiese Oberbaumbruecke 1 20457 Hamburg, Germany HOLZBEARBEITUNG HOMANN: Claims Registration Ends July 4 ------------------------------------------------------- Creditors of Holzbearbeitung Homann GmbH have until July 4 to register their claims with court-appointed provisional administrator Dirk Andres. Creditors and other interested parties are encouraged to attend the meeting at 8:30 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 Bochum Hall A29 Ground Floor Principal Establishment Viktoriastrasse 14 44787 Bochum, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bochum opened bankruptcy proceedings against Holzbearbeitung Homann GmbH on May 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Holzbearbeitung Homann GmbH Attn: Martin Homann, Manager Karolinenstr. 90 44793 Bochum, Germany The administrator can be contacted at: Dr. Dirk Andres Viktoriastrasse 10 44787 Bochum, Germany Tel: 4145023 HOSSBACH GMBH: Claims Registration Ends July 5 ---------------------------------------------- Creditors of Hossbach GmbH have until July 5 to register their claims with court-appointed provisional administrator Peter Engelmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 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 Nuernberg Meeting Room 152/I Flaschenhofstr. 35 Nuernberg,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 Nuernberg opened bankruptcy proceedings against Hossbach GmbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Hossbach GmbH Attn: Dieter Hossbach, Manager Leipziger Road 11 92318 Neumarkt, Germany The administrator can be contacted at: Peter Engelmann Archivstr. 3 90408 Nuernberg, Germany Tel: 0911/5978122 Fax: 0911/5978144 K & K BAUUNTERNEHMUNG: Creditors' Meeting Slated for July 5 ----------------------------------------------------------- The court-appointed provisional administrator for K & K Bauunternehmung & Geruestbau GmbH, Stephan Heinrichsmeyer, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 1:50 p.m. on July 5. The meeting of creditors and other interested parties 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 at 9:00 a.m. on Sept. 13 at the same venue. Creditors have until July 26 to register their claims with the court-appointed provisional administrator. The District Court of Dortmund opened bankruptcy proceedings against K & K Bauunternehmung & Geruestbau GmbH on May 26. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: K & K Bauunternehmung & Geruestbau GmbH Attn: Tolga and Remzi Karakurt, Managers Alstedder Str. 21 44534 Luenen, Germany The administrator can be reached at: Stephan Heinrichsmeyer Spiekergasse 6-8 33330 Guetersloh, Germany Tel: 05241/92 02-0 Fax: 05241 92 02 22 POBURSKI GESCHAFTSFUEHRUNGS: Claims Registration Ends June 23 ------------------------------------------------------------- Creditors of Poburski Geschaftsfuehrungs GmbH Hamburg have until June 23 to register their claims with court-appointed provisional administrator Jens-Soren Schroder. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.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 Hamburg Hall B 405 4th Floor Insolvency Court 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 Poburski Geschaftsfuehrungs GmbH Hamburg on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Poburski Geschaftsfuehrungs GmbH Hamburg Randersweide 69-73 21035 Hamburg, Germany Attn: Max Dietrich Wilhelm Poburski, Manager Billeweg 24a 21465 Wentorf, Germany The administrator can be contacted at: Jens-Soren Schroder Raboisen 38 20095 Hamburg, Germany Tel: 334460 Fax: 33446111 ROXANA FASHION: Claims Registration Ends July 3 ----------------------------------------------- Creditors of Roxana Fashion GmbH have until July 3 to register their claims with court-appointed provisional administrator Christine Berg-Gruenenwald. Creditors and other interested parties are encouraged to attend the meeting at 9:25 a.m. on Aug. 3, 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 Munich Meeting Room 102 Infanteriestr. 5 Munich, 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 Munich opened bankruptcy proceedings against Roxana Fashion GmbH on May 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Roxana Fashion GmbH Liebigstr. 5a 85757 Karlsfeld, Germany The administrator can be contacted at: Dr. Christine Berg-Gruenenwald Leopoldstr. 139 80804 Munich, Germany Tel: 361930-0 Fax: 361930-499 V & K MASSIVHAUS: Claims Registration Ends July 3 ------------------------------------------------- Creditors of V & K Massivhaus GmbH have until July 3 to register their claims with court-appointed provisional administrator Hans von Gleichenstein. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on Aug. 1, 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 Munich Meeting Room 102 Infanteriestr. 5 Munich, 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 Munich opened bankruptcy proceedings against V & K Massivhaus GmbH on May 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: V & K Massivhaus GmbH Lindenstr. 4 82216 Maisach, Germany The administrator can be contacted at: Dr. Hans von Gleichenstein Rottmannstr. 11a 80333 Munich, Germany Tel: 089/5427300 Fax: 086/54273015 VC-TECHNOLOGY: Claims Registration Ends July 5 ---------------------------------------------- Creditors of VC-Technology Beteiligungs AG have until July 5 to register their claims with court-appointed provisional administrator Jorg Zumbaum. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Aug. 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 Aachen Meeting Room K 3 3rd Floor Post Office Yard 1 52062 Aachen, 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 Aachen opened bankruptcy proceedings against VC-Technology Beteiligungs AG on May 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: VC-Technology Beteiligungs AG Delitzscher Chaussee 4 06188 Landsberg, Germany Attn: Detlef Seiffert, Manager Richtericher Road 45 52072 Aachen, Germany The administrator can be contacted at: Jorg Zumbaum Zuelpicher Road 117 52349 Dueren, Germany ============= H U N G A R Y ============= BORSODCHEM RT: Firthlion Hikes Equity Stake to 25.412% ------------------------------------------------------ Firthlion Limited has acquired 2,183,169 ordinary shares in BorsodChem Rt. at an average price of HUF2,270 on June 16. As a result, Firthlion currently holds a total of 20,668,733 shares representing 25.412% direct shareholding in the Company. Kafijat Kereskedelmi es Consulting Kft., which is a 99.999% owner of Firthlion, indirectly holds the BorsodChem shares. The indicated shares also represent an indirect shareholding in BorsodChem by Megdet Rahimkulov, a 71.44% owner of Kafijat Kft., as well as by Messrs. Timur Rahimkulov and Ruszlan Rahimkulov, each possessing 14.28% in Kafijat Kft. and by Mr Megdet Rahimkulov and their close relatives. Parties that have sold their holdings in BorsodChem at an average price of HUF2,270 include: (a) BorsodChem Board Member Timur Megdetovics Rahimkulov: 126,295 ordinary shares; (b) Ruszlan Rahimkulov Megdetovics: 119,675 ordinary shares; and (c) Altalanos Ertekforgalmi Bank Rt.: 1,767,432 ordinary shares. About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. The group's EBITDA for 2005 was HUF27.0 billion, 31.7% higher than HUF20.5 billion in 2004. BorsodChem's net profit was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year ago. At Dec. 31, 2005, BorsodChem's had HUF237.9 billion in total assets, HUF98.9 billion in total liabilities and HUF139.02 billion in total shareholders' equity. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. ========= I T A L Y ========= PARMALAT SPA: In Talks to Sell Two Venezuelan Plants ---------------------------------------------------- Parmalat S.p.A. subsidiary Parmalat de Venezuela C.A. is in negotiations with the Venezuelan government regarding the sale of two of the company's seven industrial plants. According to Reuters, the Venezuelan government wants to use the plants in Machiques, Zulia state, and in Barquisimeto, Lara state, for state-supported cooperatives under a worker co- management model promoted as part of Venezuelan President Hugo Chavez's socialist revolution for the poor. Parmalat, however, clarifies that contrary to reports in the Venezuelan press, the government does not intend to acquire Parmalat de Venezuela itself. Parmalat says that Parmalat de Venezuela is its most important business in the Latin America region, generating EUR152.8 million revenues in 2005 and EUR43.5 million in the first quarter of 2006. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. The U.S. Debtors filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. =================== K A Z A K H S T A N =================== DJEMENEI: Creditors Must File Claims by July 4 ---------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Djemenei insolvent on April 11. Creditors have until July 4 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Office 206 Myzy Str. 2/1 Ust-Kamenogorsk, East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 Fax: 8 (3232) 24-92-10 EURASIA INSURANCE: S&P Assigns B+ Long-Term Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term counterparty credit and insurer financial strength ratings and its 'kzBBB' Kazakhstan national scale rating to Kazakhstan-based insurer Eurasia Insurance Co. The outlook is stable. Eurasia is the largest insurance company and the leading commercial insurer in Kazakhstan, specializing in commercial and reinsurance risks in the energy, aluminum, mining, and ore- related industries, with gross premium income of KZT11.5 billion (US$88.6 million) and equity of KZT10.7 billion at Dec. 31, 2005, and an approximate 18% share of the Kazakh insurance market. "The ratings on Eurasia reflect the high industry/country risk inherent to Kazakhstan and Eurasia's limited financial flexibility," said Standard & Poor's credit analyst Tatiana Grineva. "These negatives are mitigated, however, by the company's potentially strong competitive position in the commercial and reinsurance markets in the region and good earnings." The stable outlook reflects Standard & Poor's expectations that Eurasia will maintain its leading position in Kazakhstan, continue controlled growth of its portfolio with the current capital base, and maintain its current level of capitalization. Failure to meet these expectations may lead to a downgrade, however. Conversely, the ratings may be raised if Eurasia's exposure to industry/country risk diminishes. GIDROIZOL VEE: Creditors Must File Claims by July 4 --------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region declared LLP Gidroizol Vee insolvent on April 10. Creditors have until July 4 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Region G. Ilyaeva Str. 24 Shymkent South Kazakhstan Region Kazakhstan IRTYSH-GMS: Creditors' Claims Due July 4 ---------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Irtysh-GMS insolvent on April 11. Creditors have until July 4 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Office 206 Myzy Str. 2/1 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 Fax: 8 (3232) 24-92-10 KASKOR-MASHZAVOD: Creditors' Claims Due July 4 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Kaskor-Mashzavod ARS insolvent on Jan. 5. Creditors have until July 4 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Region Micro District 28, 22-11 Aktau Mangistau Region Kazakhstan Tel: 8 (3292) 40-38-41 LUBBOCK TRADING: Proof of Claim Deadline Slated for July 4 ---------------------------------------------------------- LLP Lubbock Trading LLC-Klimat has declared insolvency. Creditors have until July 4 to submit written proofs of claim to: LLP Lubbock Trading LLC-Klimat Raimbeka Ave. 193a Almaty, Kazakhstan Tel: 8 (3272) 77-65-96 MEGA: Akmola Court Opens Bankruptcy Proceedings ----------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region commenced bankruptcy proceedings against CJSC Mega on April 26. PROMETEI: Proof of Claim Deadline Slated for July 4 --------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Prometei insolvent on April 11. Creditors have until July 4 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Office 206 Myzy Str. 2/1 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 Fax: 8 (3232) 24-92-10 RTS: East Kazakhstan Court Sets July 4 Claims Bar Date ------------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP RTS insolvent on April 11. Creditors have until July 4 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Office 206 Myzy Str. 2/1 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 Fax: 8 (3232) 24-92-10 SAREPTA: Claims Registration Ends July 4 ---------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan Region declared LLP Sarepta insolvent on April 17. Bankruptcy proceedings were introduced at the company. Creditors have until July 4 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of West Kazakhstan Region Building of the Factory JSC Diana Plus Evrazia Ave. 59/1 Uralsk West Kazakhstan Region Kazakhstan Tel: 8 (3112) 54-37-99 8 (3005) 99-27-85 UST-KAMENOGORSKOYE MOTOR: Claims Registration Ends July 4 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared OJSC Ust-Kamenogorskoye Motor Transport Enterprise 2 insolvent on April 11. Creditors have until July 4 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Myzy Str. 2/1, Office 206 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 Fax: 8 (3232) 24-92-10 =================== K Y R G Y Z S T A N =================== ASISTA TREID: Creditors Must File Claims by July 30 ---------------------------------------------------- LLC Asista Treid has declared insolvency. Creditors have until July 30 to submit written proofs of claim. The company can be contacted at (+996 312) 62-25-00. RIA ERIDAN-SENTR: Proof of Claim Deadline Slated for July 30 ------------------------------------------------------------ Joint Kyrgyz-Irish LLC Ria Eridan-Sentr has declared insolvency. Creditors have until July 30 to submit written proofs of claim to: Joint Kyrgyz-Irish LLC Ria Eridan-Sentr Baitik Baatyra Str. 73-41 Bishkek, Kyrgyzstan SVANS COMPANY: Proof of Claim Deadline Slated for July 28 --------------------------------------------------------- LLC Svans Company has declared insolvency. Creditors have until July 28 to submit written proofs of claim to: LLC Svans Company Ahunbayeva Str. 102 Bishkek Kyrgyzstan Tel: (+996 312) 21-96-34 ===================== N E T H E R L A N D S ===================== PYATEROCHKA HOLDING: Obtains US$800-Mln Loan to Support Merger -------------------------------------------------------------- Pyaterochka Holding N.V. obtained a US$800-million Syndicated Term Loan Facility, organized by a selection of international banks, which includes: -- ABN AMRO Bank N.V., -- HSBC Bank plc, -- Raiffeisen Zentralbank Osterreich AG, and -- ZAO Raiffeisenbank Austria Raiffeisen Zentralbank, the RZB Group and WestLB AG, London Branch, serves as the Lead Arrangers and Bookrunners. The loan facility will be used to support Pyaterochka's merger with Perekrestok Holdings Limited. Commerzbank Aktiengesellschaft AG and ING Bank N.V. have each pre-committed to the Facility and joined as Mandated Lead Arrangers. The Facility is fully underwritten by the Initial Mandated Lead Arrangers and consists of: -- a US$300-million three-year Tranche for the acquisition; -- a US$150-million three-year Tranche to refinance existing debt both with amortizing repayments; and -- a US$350-million three-year Tranche with a bullet repayment to finance the future development of the combined group. Headquartered in the Netherlands, Pyaterochka Holding N.V. -- http://www.e5.ru/english-- is a leading Russian food retailer operating a large store network largely covering the Moscow region and St. Petersburg but also with a good presence in other Russian regions through its franchise operations. The company has recently acquired two of its successful regional franchise operations -- in Yekaterinburg and Chelyabinsk. Pyaterochka's 2004 net revenues were US$1.1 billion. The company had unaudited net revenues of US$1.4 billion for 2005. * * * As reported in TCR-Europe on April 18, Moody's Investors Service placed the Ba3 corporate family rating and the Aa3.ru national scale rating of Pyaterochka Holding N.V. under review for possible downgrade. The review has been prompted by the company's announcement that it has agreed to merge with Perekriostok Holdings Limited, Russia's leading supermarket chain. =========== R U S S I A =========== ANNINSKIY ELEVATOR: Court Starts Bankruptcy Supervision ------------------------------------------------------- The Arbitration Court of Voronezh Region has commenced bankruptcy supervision procedure on OJSC Anninskiy Elevator (TIN 3601008786). The case is docketed under Case No. A14-5096/2005 56/16b. The temporary insolvency manager is: V. Bryakin Post User Box 147 394000 Voronezh Region Russia The Debtor can be reached at: OJSC Anninskiy Elevator Anna 396250 Voronezh Region Russia EVRAZ GROUP: Millhouse Group Acquires 41.3% Equity Stake -------------------------------------------------------- The Millhouse group has agreed to acquire approximately 41% stake in the Evraz Group S.A., a holding company comprising several metallurgical and mining businesses in Russia and abroad. The value of the acquisition is not disclosed but reported to be in line with current market conditions. Completion of the transaction is subject to regulatory approvals. Millhouse chairman Eugene Shvidler said that the company has a positive view of prospects for the metallurgical industry and expects substantial growth in shareholder value for the acquired asset. He added that the Millhouse group decided on this investment due, in part, to the highly professional management team at Evraz. "The management structure and personnel have a proven track record of efficiency," Mr. Shvidler said. "We are counting on continued success from the team currently in place." About the Company Evraz Group is one of the largest vertically integrated steel and mining businesses with operations mainly in Russia. In 2004, Evraz produced 13.7 million tons of crude steel. Evraz's principal assets include three of the leading steel plants in Russia: Nizhny Tagil in the Urals region, and West Siberian and ovokuznetsk (in Siberia). * * * Evraz Group's 8-1/4% notes due November 2015 carry Moody's Investors Service's (P)B2 rating, Standard & Poor's B+ rating and Fitch's BB- rating. ISENBAEVSKIY BRICKWORKS: A. Kurochkin Named to Manage Assets ------------------------------------------------------------ The Arbitration Court of Tatarstan Republic named Mr. A. Kurochkin as insolvency manager for CJSC Isenbaevskiy Brickworks (Case No. A65-9177/2005-SG4-16). He can be reached at: A. Kurochkin Post User Box 7 Naberezhnye Chelny 423815 Tatarstan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: CJSC Isenbaevskiy Brickworks Usenbaevo Agryzskiy Region 422222 Tatarstan Republic Russia KAM-GES-AUTO-TRANS: Court Names L. Peshkov as External Manager -------------------------------------------------------------- The Arbitration Court of Tatarstan Republic appointed Mr. L. Peshkov as external insolvency manager for LLC Kam-Ges-Auto- Trans (Case No. A65-16807/2005-SG4-16). He can be reached at: L. Peshkov Post Use Box 131 Gidrostroiteley Str. 17 Naberezhnye Chelny 423807 Tatarstan Republic Russia The Court has commenced external management bankruptcy procedure on the company. The Debtor can be reached at: LLC Kam-Ges-Auto-Trans Post Use Box 131 Gidrostroiteley Str. 17 Naberezhnye Chelny 423807 Tatarstan Republic Russia KUYBYSHEVSKOYE GRAIN: Court Appoints L. Safin to Manage Assets -------------------------------------------------------------- The Arbitration Court of Tatarstan Republic appointed Mr. L. Safin as insolvency manager for OJSC Kuybyshevskoye Grain Receiving Enterprise (TIN 1637002135). He can be reached: L. Safin Post User Box 143 Kazan 420039 Tatarstan Republic The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A65-33390/2005-SG4-27. The Debtor can be reached at: OJSC Kuybyshevskoye Grain Receiving Enterprise Gordeeva Str. 1 Bolgar Spasskiy Region 422840 Tatarstan Republic Russia MAMONSKIY BREAD: Court Appoints Y. Khludnev Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Voronezh Region appointed Mr. Y. Khludnev as insolvency manager for LLC Mamonskiy Bread (TIN 3606003478). He can be reached at: Y. Khludnev Sadovyj Per. 6 Verkhniy Mamon 396460 Voronezh Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A14-8385-2004/57/7b. The Debtor can be reached at: LLC Mamonskiy Bread Lenina Square 1 Verkhniy Mamon 6460 Voronezh Region Russia MB CAPITAL: Moody's Rates Loan Participation Notes at B1 -------------------------------------------------------- Moody's Investors Service has assigned a B1 rating to Loan Participation Notes to be issued on a limited recourse basis by MB Capital S.A., a Luxembourg-based special-purpose vehicle, for the sole purpose of funding a loan to Moscow Bank for Reconstruction and Development. The volume and the tenor of the issue are yet to be determined, depending on market conditions. The outlook for the rating is stable. Moody's B1 rating is based on MBRD's fundamental credit quality, which factors in only a limited degree of support from the bank's majority owner, Joint Stock Financial Corporation Sistema, a large Moscow-based holding company with main assets in the telecommunications and insurance sectors. The loan to the bank, the cash flows from which will be used to repay the notes, will rank at least pari passu with the claims of all of MBRD's other unsecured creditors save those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application. Moody's notes that the noteholders may choose to exercise a put option in the event that Sistema relinquishes its direct or indirect control of the bank. In addition, the notes may become payable in the event that the bank's long-term rating is downgraded following a reorganization such as a merger, accession, division or transformation. As one of the financial covenants, the bank is obliged to maintain -- unless such a requirement is waived -- a ratio of capital to risk-weighted assets at a pre-specified level inversely related to the bank's ratings. The rating agency notes that, while the likelihood of any of the above covenants being triggered is relatively low, if such were to occur, it could potentially have adverse liquidity implications for the bank and might exert additional downward pressure on its ratings. MBRD is headquartered in Moscow, the Russian Federation, and reported total consolidated assets of RUB32 billion (US$1.1 billion) and total equity of RUB3.8 billion (US$134 million) in accordance with IFRS as at Dec. 31, 2005. At end-March 2006 the bank ranked 30th in Russia in terms of total assets. NAMSKIY LAPIDARY: Court Begins Bankruptcy Supervision ----------------------------------------------------- The Arbitration Court of Sakha Republic - Yakutiya has commenced bankruptcy supervision procedure on LLC Namskiy Lapidary Factory (TIN 1417000012). The case is docketed under Case No. A58- 8565/05. The temporary insolvency manager is: V. Popov Room 25 Kurashova Str. 28/1 Yakutsk 677000 Sakha Republic - Yakutiya Russia The Debtor can be reached at: LLC Namskiy Lapidary Factory Chernyshevskogo Str. 14 Namtsy Namskiy ulus 678040 Sakha Republic - Yakutiya Russia NOVOSHESHMINSKIY BRICKWORKS: M. Shamsiev to Manage Assets --------------------------------------------------------- The Arbitration Court of Tatarstan Republic appointed Mr. M. Shamsiev as insolvency manager for State Unitary Enterprise Novosheshminskiy Brickworks (Case No. A65-8458/2002-SA2-21). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: State Unitary Enterprise Novosheshminskiy Brickworks Novosheshminskiy Region Tatarstan Republic Russia OAO SEVERSTAL: Proposes Improved Merger Terms to Arcelor -------------------------------------------------------- OAO SeverStal has proposed to substantially improve the terms of its merger agreement with Arcelor S.A. announced on May 26. The proposal is in response to investor feedback provided by Arcelor's shareholders over the course of the last several weeks. SeverStal proposes several changes to the merger agreement: -- Alexey A. Mordashov, SeverStal's Chairman and controlling shareholder, will now receive 210 million new Arcelor shares instead of 295 million shares, representing approximately 25% of the enlarged company (previously 32%). -- The Strategic Committee will be eliminated. In return, Mr. Mordashov will be free to vote his shares in line with normal shareholder practice and the standstill and lockup provisions will be eliminated. -- The cash contribution from Mr. Mordashov of EUR1.25 billion will no longer be included. -- In all other respects, the merger agreement will remain unchanged. According to SeverStal, the revised terms are significantly more attractive for Arcelor shareholders and reflect a valuation of the assets to be contributed by Mr. Mordashov that is extremely compelling. Based on Monday's closing price for Arcelor shares of EUR34.70, the revised terms represent an acquisition multiple of 3.6x 2005 EBITDA for the contributed businesses, and a value enhancement of EUR2 billion for Arcelor shareholders. In addition, Mr. Mordashov confirms his intention not to increase, either actively or passively, his shareholding in Arcelor above 33.3% without making a mandatory tender offer to all shareholders in accordance with Luxembourg law. "We have met with a large number of Arcelor shareholders over the past three weeks and discussed the transaction at great length with them," Mr. Mordashov said. "These shareholders have generally been very supportive of our value proposition and proposed merger. I have taken careful note of all the investor feedback and believe that this enhanced proposal meets their requirements. The improved terms create outstanding value to shareholders and reflect my continuing belief in the industrial logic of combining these two superb companies into the global steel champion." A full-text copy of an information memorandum describing in detail all of the contributed businesses in the merger transaction is available at SeverStal's Web site at http://www.severstal.com/ About Arcelor Headquartered in Avenue de la Liberte, Luxembourg, Arcelor S.A. http://www.arcelor.com/-- is the number one steel company in the world with EUR32.6 billion in turnover in 2005. The company holds leadership positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. In 2006, Arcelor employs 110,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labor relations and social responsibility. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of approximately EUR150 per ton. As at March 1, 2004, 82.75% of Severstal's share capital was controlled directly or indirectly by Alexey Mordashov, Chairman of Severstals Board of Directors. Institutional investors held around 6.5% of Severstals shares while management and employees held the remaining 10.75%. As of Dec. 31, 2005, Severstal had US$10.75 billion in total assets, US$3.66 billion in total liabilities and US$7.09 billion in total shareholders' equity. * * * As reported in the TCR-Europe on May 30, Standard & Poor's Ratings Services placed its 'B+' long-term corporate credit rating on Russia-based integrated steel maker OAO Severstal on CreditWatch with positive implications, following the announcement of an agreed merger with Luxembourg steelmaker Arcelor S.A. Moody's Investors Service also placed the corporate family rating of B1 and the senior unsecured rating of B2 of Severstal on review for possible upgrade following the intention of Severstal's majority owner to merge Severstal and its mining assets with Arcelor. On Feb. 13, Moody's has changed the outlook of Severstal's ratings from stable to positive, following the company's announcement of the acquisition of a majority interest in mining assets currently held by affiliated parties outside the borrowing group. Fitch Ratings also placed OAO Severstal's ratings of Issuer Default BB-, Senior Unsecured BB-, Short-term B and National Long-term A+ on Rating Watch Positive, following Severstal's agreement to merge with Arcelor. OIL-RESOURCE: Court Opens Bankruptcy Proceedings ------------------------------------------------ The Arbitration Court of Voronezh Region commenced bankruptcy proceedings against CJSC Oil-Resource after finding it insolvent. The case is docketed under Case No. A14-21290-2005-159/20b. The Insolvency Manager is: A. Alekseev Post User Box 606 394036 Voronezh Russia The Debtor can be reached at: CJSC Oil-Resource Leningradskaya Str. 2 394007 Voronezh Russia PYATEROCHKA HOLDING: Obtains US$800-Mln Loan to Support Merger -------------------------------------------------------------- Pyaterochka Holding N.V. obtained a US$800-million Syndicated Term Loan Facility, organized by a selection of international banks, which includes: -- ABN AMRO Bank N.V., -- HSBC Bank plc, -- Raiffeisen Zentralbank Osterreich AG, and -- ZAO Raiffeisenbank Austria Raiffeisen Zentralbank, the RZB Group and WestLB AG, London Branch, serves as the Lead Arrangers and Bookrunners. The loan facility will be used to support Pyaterochka's merger with Perekrestok Holdings Limited. Commerzbank Aktiengesellschaft AG and ING Bank N.V. have each pre-committed to the Facility and joined as Mandated Lead Arrangers. The Facility is fully underwritten by the Initial Mandated Lead Arrangers and consists of: -- a US$300-million three-year Tranche for the acquisition; -- a US$150-million three-year Tranche to refinance existing debt both with amortizing repayments; and -- a US$350-million three-year Tranche with a bullet repayment to finance the future development of the combined group. Headquartered in the Netherlands, Pyaterochka Holding N.V. -- http://www.e5.ru/english-- is a leading Russian food retailer operating a large store network largely covering the Moscow region and St. Petersburg but also with a good presence in other Russian regions through its franchise operations. The company has recently acquired two of its successful regional franchise operations -- in Yekaterinburg and Chelyabinsk. Pyaterochka's 2004 net revenues were US$1.1 billion. The company had unaudited net revenues of US$1.4 billion for 2005. * * * As reported in TCR-Europe on April 18, Moody's Investors Service placed the Ba3 corporate family rating and the Aa3.ru national scale rating of Pyaterochka Holding N.V. under review for possible downgrade. The review has been prompted by the company's announcement that it has agreed to merge with Perekriostok Holdings Limited, Russia's leading supermarket chain. ROSBANK: Fitch Affirms IDR at B+ with Positive Outlook ------------------------------------------------------ Fitch Ratings changed the Outlooks on Russia-based Rosbank's Issuer Default rating and National Long-term rating to Positive from Stable. The IDR of B+ and National Long-term rating of A- are affirmed. At the same time, the bank's other ratings are also affirmed at Short-term B, Individual D and Support 4. The change in the Outlooks follows the recent announcement that Societe Generale acquired a 10% stake in Rosbank. It also entered into exclusive negotiations to implement a cooperation agreement to support Rosbank's future development and increase Societe Generale's stake to 20% from 10%. In Fitch's view, even as a minority shareholder Societe Generale is likely to have a material positive impact on certain aspects of Rosbank's risk management and business development. Rosbank's IDR, National Long-term, Short-term and Individual ratings reflect the growth and diversification of its business following the integration with OVK banks, acquired by Interros in 2003. They also consider the resulting diversification in the loan book and gradual improvements in the operating environment. However, the ratings also reflect Fitch's concerns over the historically weak core profitability, Rosbank's continued reliance on related-party funding and growing credit risk in its retail portfolio. Rosbank's IDR was upgraded to B+ from B on May 29. Rosbank was founded in 1992 and ranks among the top 10 banks in Russia by total assets. About 87% of its shares are ultimately controlled by Interros, one of Russia's largest financial industrial groups, with interests in the metals, power-machine building, agricultural and insurance sectors. ROSTELECOM: Russia Demands RUB3.47 Billion in Back Taxes -------------------------------------------------------- Rostelecom has received a RUB3.47 billion tax claim from Russia's Federal Tax Service. The total amount represents RUB2.18 billion in additional taxes owed by the Company in 2003 plus RUB1.29 billion in fines and penalties. The decision came following an inspection carried out by the Federal Tax Service of Russia's No. 7 Interregional Inspectorate for the largest taxpayers. The inspection took place from Oct. 3, 2005, to April 27, 2006. Rostelecom insists that it will contest the conclusions and claims of the tax authorities and will defend its position in the courts in accordance with current Russian tax legislation. "The Company is a lawful taxpayer and believes it will be able to demonstrate that the claims presented by the tax authorities are without merit," Rostelecom said in a statement. Headquartered in Moscow, Russia, Rostelecom -- http://www.rostelecom.ru/en-- is Russia's national long- distance telecommunications operator. The Company owns and operates a nationwide modern backbone network enabling the provision of telecommunications services across the entire Russian Federation. * * * As reported in TCR-Europe on March 30, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Rostelecom to 'BB-' from 'B+', reflecting the company's strengthened financial profile. S&P said the outlook is stable. RUSSIAN CORN: Court Names K. Garkanov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Saratov Region appointed Mr. K. Garkanov as insolvency manager for LLC Russian Corn. He can be reached at: K. Garkanov Post User Box 4166 443110 Samara Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A57-495b/05-12. The Debtor can be reached at: LLC Russian Corn Entuziastov Str. 43 Saratov Russia STERLITAMAKSKIY CONCRETE 1: D. Karavaev to Manage Assets -------------------------------------------------------- The Arbitration Court of Bashkortostan Republic appointed Mr. D. Karavaev as insolvency manager for OJSC Sterlitamakskiy Reinforced Concrete Factory 1 (TIN 0268014399). He can be reached at: D. Karavaev Ufimskiy Trakt 4 Sterlitamak 453102 Bashkortostan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-14036/03-G-PAV. The Debtor can be reached at: OJSC Sterlitamakskiy Reinforced Concrete Factory 1 Ufimskiy Trakt 4 Sterlitamak Bashkortostan Republic Russia VERKHNE-MAMON-AGRO-TRANS: I. Ageev to Manage Insolvency Assets -------------------------------------------------------------- The Arbitration Court of Voronezh Region appointed Mr. I. Ageev as insolvency manager for OJSC Verkhne-Mamon-Agro-Trans (Case No. A14-21195-2005-164/20b). He can be reached at: I. Ageev Post User Box 42 Main Post Office 394000 Voronezh Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: OJSC Verkhne-Mamon-Agro-Trans Stroitelnaya Str. 11 Verkhniy Mamon Voronezh Region Russia =========== T U R K E Y =========== FORD OTOSAN: Fitch Lowers Local Currency IDR to BB+ --------------------------------------------------- Fitch Ratings downgraded Turkey-based Ford Otosan's Local Currency Issuer Default Rating to BB+ from BBB-. The rating Outlook is Negative. The rating action follows the downgrade of Ford Motor Company's Issuer Default Rating to B+ from BB on June 8, based on increasing concerns over the unfavorable trend of revenues and key cost factors in the USA, expected to result in negative cash flows for FMC. The downgrade of FMC does not have any direct and immediate impact on FO's financial profile or its ability to continue its production and delivery operations in Turkey. However, FO's export sales, representing 47% of 2005 revenues, remain dependent on FMC's international distribution network in Europe. Over FY05, Ford Otosan gained further market share and maintained its leadership in the domestic market, which grew by 5%. As of end Q106, Ford Otosan remained the overall automotive market leader with an 18% share in Turkey, and continued to service a stable overall market for light commercial vehicles in Europe. The current capacity expansion at FO's plant to 280,000 units from 240,000 units was financed entirely by the company's own cash flows, supporting Fitch's assessment of FO's good sales growth prospects, cash generation ability and financial independence from FMC. The Negative Outlook reflects the brand ownership, shareholder relationship as well as the export sales network dependence between FO and FMC, indicating that further deterioration of FMC's rating could negatively impact FO's rating. uch effect will be assessed on a case by case basis, with any future rating or outlook change in FMC causing Fitch to review FO's rating. Ford Motor Company of USA and Koc Group of Turkey exercise joint control in FO with a 41% stake each, with 18% of FO publicly quoted on Istanbul Stock Exchange. ============= U K R A I N E ============= ARTEKA: Ludmila Zayikina to Liquidate Assets -------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Ludmila Zayikina as Liquidator/Insolvency Manager for LLC Arteka (code EDRPOU 30688295). She can be reached at: Ludmila Zayikina Melnikov Str. 2/10 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 14. The case is docketed under Case No. B 26/33/06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Arteka Kujbishev Str. 1-a 49600 Dnipropetrovsk Region Ukraine BUDSNABRESURS-K: Court Names O. Sherban to Liquidate Assets ----------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. O. Sherban as Liquidator/Insolvency Manager for LLC Budsnabresurs-K (code EDRPOU 33052808). He can be reached at: O. Sherban a/b 157 01030 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 20. The case is docketed under Case No. 43/926. 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 Budsnabresurs-K Lisogirska Str. 8 03028 Kyiv Region Ukraine DEFO: Court Appoints Ludmila Zayikina as Liquidator --------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Ludmila Zayikina as Liquidator/Insolvency Manager for LLC Defo (code EDRPOU 32388040). She can be reached at: Ludmila Zayikina Melnikov Str. 2/10 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 14. The case is docketed under Case No. B 26/30/06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Defo Zaporizke Shose Str. 68/119 49000 Dnipropetrovsk Region Ukraine DEKRA: Court Names I. Fedorov as Insolvency Manager ---------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. I. Fedorov as Liquidator/Insolvency Manager for LLC Dekra (code EDRPOU 33742946). He can be reached at: I. Fedorov Amosov Str. 4/85 03141 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 19. The case is docketed under Case No. 24/226-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: LLC Dekra Lihachov Str. 9 Kyiv Region Ukraine FIESTA: Zaporizhya Court Starts Bankruptcy Supervision ------------------------------------------------------ The Economic Court of Zaporizhya Region commenced bankruptcy supervision procedure on LLC Fiesta (code EDRPOU 23880676). The case is docketed under Case No. 21/83/06. The Temporary Insolvency Manager is: V. Rabushko Fuchik Str. 14 Melitopol 72315 Zaporizhya Region Ukraine The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Ukraine The Debtor can be reached at: LLC Fiesta Peremogi Str. 21 50-Richya Melitopol 72312 Zaporizhya Region Ukraine GAL-HIMFARB: Andrij Kolisnik Liquidate Insolvency Assets -------------------------------------------------------- The Economic Court of Lviv Region appointed Andrij Kolisnik as Liquidator/Insolvency Manager for Joint Ukrainian-Polish LLC Gal-Himfarb (code EDRPOU 23883700). He can be reached at: Andrij Kolisnik Tarnavskij Str. 104 b/54 79017 Lviv Tel: 8 (067) 353-25-09 The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 19. The case is docketed under Case No. 6/58-29/58. The Economic Court of Lviv Region is located at: Lichakivska Str. 81 79010 Lviv Ukraine The Debtor can be reached at: Joint Ukrainian-Polish LLC Gal-Himfarb Pulyuj Str. 1/95 Lviv Region Ukraine NOVOGRIGORIVSKE: Court Names V. Pejchev to Manage Assets -------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Mr. V. Pejchev as Liquidator/Insolvency Manager for Agricultural CJSC Novogrigorivske (code EDRPOU 04541247). He can be reached at: V. Pejchev Starov Str. 6/55 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 11. The case is docketed under Case No. 5/119/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: Agricultural CJSC Novogrigorivske Novogrigorivka Arbuzinskij District Mikolaiv Region Ukraine UKRAGROTEHSOUZ: Kyiv Court Begins Bankruptcy Supervision -------------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC Ukragrotehsouz (code EDRPOU 32104343) on March 7. The case is docketed under Case No. 15/195-b. The Temporary Insolvency Manager is: Ivan Gusar a/b 29 01030 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 Ukragrotehsouz Solomyanska Square 2 03035 Kyiv Region Ukraine UKRAINIAN INDUSTRIAL: Court Names I. Fedorov Insolvency Manager --------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. I. Fedorov as Liquidator/Insolvency Manager for LLC Ukrainian Industrial Company (code EDRPOU 31838615). He can be reached at: I. Fedorov Amosov Str. 4/85 03141 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 19. The case is docketed under Case No. 24/227-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: LLC Ukrainian Industrial Company Lihachov Str. 9 Kyiv Region Ukraine ZVIT: Court Names S. Kitsul as Insolvency Manager ------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. S. Kitsul as Liquidator/Insolvency Manager for LLC Zvit (code EDRPOU 32423335). He can be reached at: S. Kitsul Liskivska Str. 29/15 02097 Kyiv Region Tel: 8 (067) 295-08-03 The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 5. The case is docketed under Case No. 43/229. 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 Zvit Pravdi Str. 12-V/9 04108 Kyiv Region =========================== U N I T E D K I N G D O M =========================== A.C.I.I. LIMITED: Hires DTE Leonard as Joint Administrators ----------------------------------------------------------- J.M. Titley and A. Poxon of DTE Leonard Curtis were appointed joint administrators of A.C.I.I. Limited (Company Number 03961036) on May 26. 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 Shrewsbury, United Kingdom, A.C.I.I. Limited is engaged in architectural and technical consultancy. A.I. WORLDWIDE: Brings In Administrators from Smith & Williamson ---------------------------------------------------------------- Christopher Stevens and Stephen Tancock of Smith & Williamson Limited were appointed joint administrators of A.I. Worldwide Movers Limited (Company Number 04504664) on May 26. Smith & Williamson -- http://www.smith.williamson.co.uk/-- is an independent professional and financial services group employing over 1,200 people. It is the leading provider of investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. A.I. Worldwide Movers Limited is a removal and storage company. ALBA 2006-1: Fitch Gives BB Rating to GBP9.2-Mln Class E Notes -------------------------------------------------------------- Fitch Ratings assigned final ratings to ALBA 2006-1's GBP556 million mortgage-backed floating-rate notes due in 2037. -- GBP166.90 million Class A1 notes: AAA; -- GBP93.50 million Class A2 notes: AAA; -- GBP119.10 million Class A3a notes: AAA; -- GBP80 million Class A3b notes: AAA; -- GBP54.75 million Class B notes: AA; -- GBP19.20 million Class C notes: A; -- GBP13.60 million Class D notes: BBB; and -- GBP9.20 million Class E notes: BB. All the notes have a final legal maturity of 2037. This transaction is a securitization of non-conforming residential mortgages originated and located in the U.K. The ratings are based on the quality of the collateral, available credit enhancement, the underwriting criteria of GMAC-RFC and Kensington and the sound legal structure of the transaction. Credit enhancement for the Class A notes is initially 18% provided by the subordination of the Class B, Class C, Class D and Class E notes and an initial target reserve fund with a balance of 0.6% of the total aggregate note balances for the A1, A2, A3a, A3b, B, C, D and E notes as of closing. There is also a liquidity facility available to meet income deficiencies, including interest shortfalls on the Class A notes. However, it will not be available to fund any periodic principal deficiencies. Fitch's rating of the Mortgage Early Redemption Certificates addresses the likelihood of receipt of MERC payments assuming that payment of the mortgage early repayment charges is legally valid, binding and enforceable against the borrowers and such mortgage early repayment charges are actually collected from borrowers, and not waived by the seller. To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its U.K. 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. BASELINE LTD: Creditors Pass Winding Up Resolution -------------------------------------------------- Creditors of Baseline Limited passed a resolution to wind up the company's operations during an extraordinary general meeting on April 5. Subsequently, Peter John Bridger was appointed Liquidator. The company can be reached at: Baseline Limited 37 Rothes Road Dorking Surrey RH4 1LG United Kingdom Tel: 01306 889 911 BRISTOL TOOL: Financial Woes Prompt Liquidation ----------------------------------------------- Bristol Tool & Gauge Engineering Limited is winding up its operations after creditors established the company could no longer continue its business due to mounting debts. Nigel Morrison of Grant Thornton U.K. LLP, was appointed Liquidator. The company can be reached at: Bristol Tool & Gauge Engineering Limited Unit E Siston Centre Station Road Kingswood Bristol BS154GQ United Kingdom Tel: 0117 967 4881 Fax: 0117 960 3800 C4 CARRIERS: Creditors Resolve to Voluntary Liquidation ------------------------------------------------------- Creditors of Brooks Lane Limited resolved to voluntarily liquidate the company's assets during an extraordinary general meeting on March 27. Peter Rees of Beachcroft Wansboroughs was appointed Liquidator. The company can be reached at: C4 Carriers Limited 1 Oak Road Exeter EX4 1QB United Kingdom Tel: 01392 270 733 CENTRAL SERVICES: Taps N.A. Benett to Liquidate Assets ------------------------------------------------------ N. A. Bennett of Leonard Curtis was appointed Liquidator of Central Services & Distribution Limited after creditors agreed to wind up the company on April 5. The company can be reached at: Central Services & Distribution Limited 40 Brownfields Welwyn Garden City Hertfordshire AL7 1AX United Kingdom Tel: 0870 7606266 CIG MON: Taps Grant Thornton to Administer Assets ------------------------------------------------- Leslie Ross and Keith Hinds of Grant Thornton U.K. LLP were appointed joint administrators of Cig Mon Cymru Limited (Company Number 3579278) on May 24. Headquartered in London, Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- is the U.K. member of Grant Thornton International, one of the world's leading international organizations of independently owned and managed accounting and consulting firms. These firms provide a comprehensive range of business advisory services from around 540 offices in over 110 countries worldwide. Headquartered in Llangefni, United Kingdom, Cig Mon Cymru Limited is engaged in meat precessing. CORUS GROUP: S&P Lifts Long-Term Corporate Credit Rating to BB -------------------------------------------------------------- Standard & Poor's Ratings Services removed from CreditWatch and raised its long-term corporate credit rating on U.K.-based steel consortium Corus Group PLC to 'BB' from 'BB-', reflecting the group's improved financial risk profile. The outlook is stable. The 'B' short-term corporate credit rating was also removed from CreditWatch and was affirmed. At the same time, Standard & Poor's removed from CreditWatch and raised its senior secured bank loan ratings on Corus to 'BB+' from 'BB', and its senior unsecured debt ratings on Corus and Corus Finance PLC to 'BB-' from 'B+'. The ratings were originally placed on CreditWatch on March 16, following the group's announcement that it was to dispose of its aluminum division. "The upgrade reflects the considerable improvements in Corus' financial risk profile as a result of generally positive market conditions over the past 18 months and a prudent financial policy," said Standard & Poor's credit analyst Tatiana Kordyukova. "At the same time, Corus' business risk profile has not changed materially and will continue to constitute a relative weakness of the group's overall credit quality." Corus generated positive cash flows of GBP275 million in 2005, and used this cash to repay some of its existing debt. Moreover, we expect the proceeds of GBP502 million from the disposal of the group's aluminum business will be used to strengthen Corus' balance sheet further. On a pro forma basis, the group's debt, netted against surplus cash, will decline to about GBP1.2 billion from GBP1.8 billion at Jan. 1. This will help to mitigate deteriorations in the group's credit metrics following a reduction in cash flows as a result of cost pressures, working capital fluctuations, and increased capital expenditure. Corus' financial profile, therefore, will be sustainable with a 'BB' long-term corporate credit rating even if the steel market enters into a downturn in the future. "Corus' weak business risk profile limits upside potential for the ratings," added Ms. Kordyukova. "Despite ongoing management initiatives, the group's business risk profile is unlikely to sustain higher ratings in the short-to-medium term." At the same time, Standard & Poor's will continue to monitor the group's ability to resist expected costs inflation, as well as the group's cash flow levels, policies toward capital expenditure, cash distributions, and ambitions regarding M&A activity in the consolidating global steel industry. Lower-than-expected financial performance as a result of aggressive financial policies might put pressure on the ratings. CLAVIS SECURITIES: Fitch Rates GBP8.1-Mln Class B2 Notes at BB -------------------------------------------------------------- Fitch Ratings assigned final ratings to Clavis Securities Series PLC's 2006-1 Series GBP600.3 million-equivalent mortgage-backed floating-rate notes. -- GBP-equivalent 161.5 million Class A1 notes due 2031: AAA; -- GBP-equivalent 100 million Class A2 notes due 2031: AAA; -- GBP-equivalent 250 million Class A3 notes due 2031: AAA; -- GBP-equivalent 43.2 million Class M1 notes due 2039: AA; -- GBP-equivalent 24 million Class M2 notes due 2039: A; -- GBP-equivalent 13.6 Mln Class B1 notes due 2039: BBB; and -- GBP-equivalent 8.1 million Class B2 notes due 2039: BB. The collateral underlying the notes in this transaction consists solely of GMAC-RFC originations. The final ratings are based on the quality of the collateral, available credit enhancement, the underwriting criteria of GMAC, the primary servicing capabilities of Specialist Mortgage Services Limited and the special servicing capabilities of Basinghall Limited Ltd and the sound legal structure of the transaction. Credit enhancement for the Class A1, A2 and A3 notes totals 15.45% and will be provided by the subordination of the Class M1, Class M2, Class B1, Class B2 and an initial reserve fund of 0.65% of the initial issue size. The reserve fund is expected to increase to a target amount of 0.85% To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its U.K. 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. DRESS TRIMMINGS: Claims Filing Period Ends July 4 ------------------------------------------------- Creditors of Dress Trimmings (U.K.) Limited have until July 4 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, Stephen Robert Cork, of Smith & Williamson. The company can be reached at: Dress Trimmings (U.K.) Limited 15-17 Garman Road London N17 0UR United Kingdom Tel: 020 8801 9166 Fax: 020 8801 9188 ETHOS PRODUCTIONS: Names G.W. Rhodes Liquidator ----------------------------------------------- G.W. Rhodes, of Begbies Traynor, was appointed Liquidator of Ethos Productions Limited after creditors decided to wind up the company during an extraordinary general meeting on April 5. The company can be reached at: Ethos Productions Limited 83 Hailsham Road Polegate East Sussex BN266NT United Kingdom Tel: 01323 486 074 Fax: 01323 482 155 Web: http://wwww.ethosproductions.co.uk/ GOLD SEAL: Appoints Liquidator to Wind Up Assets ------------------------------------------------ Gold Seal Electronics Limited is liquidating its assets after creditors found out the company could no longer continue its operations due to financial liabilities. John Alfred George Alexander and Patricia Kay Hartley-Mills, of Carter Becker Winter, were appointed Joint Liquidators. The company can be reached at: Gold Seal Electronics Limited 15 Oglander Road London SE154EQ Tel: 020 7635 5719 Fax: 020 7635 7811 HADLEIGH DEVELOPMENTS: Hires Begbies Traynor as Administrators -------------------------------------------------------------- Ian Michael Rose and Robert Michael Young of Begbies Traynor were appointed joint administrators of Hadleigh Developments Limited (Company Number 04312993) on Nov. 18, 2005. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Coventry, United Kingdom, Hadleigh Developments Limited sells and develops real estate. HOMECHOICE TRADING: Hires Liquidator from David Horner & Co ----------------------------------------------------------- David Anthony Horner of David Horner & Co, was appointed Liquidator of Homechoice Trading (2002) Limited after creditors resolved to liquidate the company's assets during an extraordinary general meeting on April 4. The company can be reached at: Homechoice Trading (2002) Limited 19B Bridgegate Howden Goole North Humberside DN147AE United Kingdom Tel: 01924 787 575 ID BUILDERS: Brings In Joint Liquidators from Lines Henry --------------------------------------------------------- ID Builders Limited is liquidating its assets after creditors passed a resolution to wind up the company on April 5. Neil Henry and Michael Simister of Lines Henry were appointed Joint Liquidators. The company can be reached at: ID Builders Limited Heapy Street Macclesfield Cheshire SK117JB United Kingdom Tel: 01625 439 175 Fax: 01625 613 361 INDI-BLUE LIMITED: Begins Liquidation Procedure ----------------------------------------------- Indi-Blue Limited is liquidating its assets after creditors moved to wind up the company during an extraordinary general meeting on April 5. G. Mummery and P. Atkinson of Vantis Redhead French Limited were appointed Joint Liquidators. The company can be reached at: Indi-Blue Ltd 213 High Street Canvey Island Essex SS8 7RN United Kingdom Tel: 01268 682400 INMARSAT: Moody's Assigns Ba2 Corporate Family Rating ----------------------------------------------------- Moody's Investors Service assigned a Ba2 corporate family rating to Inmarsat plc, the group's ultimate holding company created to effect Imarsat's IPO and withdrew the previous Ba3 corporate family rating at Inmarsat Holdings Limited. At the same time the rating agency upgraded to Ba3 from B1 the rating of the senior notes at Inmarsat Finance plc and to B1 from B2 the rating on the senior discount notes at Inmarsat Finance II plc, two financing vehicles set up in the context of Inmarsat's LBO in 2003. Inmarsat Holdings Limited and Inmarsat Group Limited, intermediate holding companies also set up in the context of the LBO, are guaranteeing the respective obligations of Inmarsat Finance II and Inmarsat Finance Plc. Ratings affected: -- Inmarsat plc: Corporate family rating, assigned at Ba2; -- Inmarsat Holdings Limited: Ba3 Corporate family rating, withdrawn; -- Inmarsat Finance plc: 7.625% senior notes due 2012, upgraded to Ba3 from B1; and -- Inmarsat Finance II plc: 10.375% senior discount notes due 2012, upgraded to B1 from B2. The outlook for all ratings is stable. The upgrade of the company's ratings reflects the reduction of Inmarsat's operating risk following the deployment of its second Inmarsat-4 satellite and acknowledges that the rollout of the company's broadband global area network appears to be on track. At the same time leverage has been maintained at the reduced levels achieved with the company's mid-2005 IPO. Debt/EBITDA as calculated by Moody's was 3.2x at the 2005 year-end. The new Ba2 CFR also factors in management's commitment not to return to pre-IPO debt levels. The ratings continue to incorporate Inmarsat's overall leading position in the mobile satellite services industry with particular strength in the maritime and data sectors of the market, the company's stable historic financial performance and strong operational track record as well as Inmarsat's large installed customer base and high overall barriers to entry. However, Inmarsat's ratings also reflect risks from Inmarsat's dependence on third-party distributors for the sale of end- services and a substantial and increasing revenue concentration with respect to the company's distributors. In addition, the company faces business risks resulting from the still limited visibility regarding the pricing and demand for its next generation of services, including the entry into the market for handheld satellite service announced earlier this year as well as overall uncertainties with respect to longer-term competitive and regulatory developments within the MSS market. Finally the rating is constrained by the lack of free cash flow generation in the near-term. The stable ratings outlook reflects Moody's expectation that Inmarsat can continue to deliver a satisfactory operating performance from its current base business, exploiting the growth momentum in its existing data business although stabilizing voice revenues will remain a challenge. Inmarsat also remains well positioned to benefit from expanding opportunities in the MSS market based on its established satellite fleet and solid distribution network. However, Moody's note that the current ratings and outlook do not factor in any major financial investments in currently less well defined business opportunities such as the exploitation of the terrestrial component of its satellite network. Moodys' believes that it is likely that Inmarsat will launch the third satellite in its I4 series, which currently functions as a ground spare. This, together with a commitment to pay significant cash dividends is likley to constrain Inmarsat's free cash flow generation and with that the ability to reduce debt in absolute terms into 2007. In the following years the conclusion of the current capex cycle should provide Inmarsat with meaningful discretionary cash flows. Moody's also notes that in August 2005, Stratos Global, Inmarsat's largest distributor acquired Xantic, the fourth largest. The new entity enjoys improved volume discounts and with that the combination exerts some pressure on margins. On a pro-forma 2005 basis the four largest distributors now represent 89.5% of Inmarsat's revenues. Although it is Moody's understanding that the company current dividend policy will be maintained, any greater than anticipated shareholder rewards, major difficulties in rolling out next generations products or large debt-funded acquisitions that push leverage towards 4x could all result in downward pressure on the rating. While a near-term upgrade appears unlikely, sustained operating stability including conclusive evidence on the roll- out of next generation products and leverage maintained visibly below the 3x level could result in upward ratings pressure over time. Headquartered in London, England, Inmarsat plc provides global mobile satellite communication services. For the twelve months ending Dec. 31, 2005, the company reported revenues of approximately US$491.1 million and EBITDA of US$317.7 million. INN HOUSE: Appoints John Paul Bell as Administrator --------------------------------------------------- John Paul Bell of Clarke Bell was appointed administrator of Inn House Pubs Limited (Company Number 04654995) on Feb. 23. The administrator can be reached at: Clarke Bell Parsonage Chambers 3 The Parsonage Manchester Greater Manchester M3 2HW United Kingdom Tel: 0161 907 4044 Fax: 0161 907 4086 E-mail: clarkebell@mac56.com Inn House Pubs Limited is a public house. JTD TIMBER: Names Joint Administrators from KPMG ------------------------------------------------ Howard Smith and Richard Dixon Fleming of KPMG LLP were appointed joint administrators of JTD Timber Frame Limited (Company Number 04910918) on May 24. KPMG -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the U.K. providing audit, tax and advisory services. JTD Timber Frame Limited can be reached at: Windsor House Cornwall Road Harrogate North Yorkshire HG1 2PW United Kingdom Tel: 01423 813 010 KENSA LIMITED: Taps Begbies Traynor to Administer Assets -------------------------------------------------------- Ian Edward Walker and Kenneth Stephen Chalk of Begbies Traynor were appointed joint administrator of Kensa Limited (Company Number 04219134) Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Saltash, United Kingdom, Kensa Limited is engaged in graphic and web designing. LUCITE INT'L: S&P Lowers Long-Term Corporate Rating to B+ --------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate rating on U.K.-based acrylics producer Lucite International Group Holdings Ltd. to 'B+' from 'BB' and removed the rating from CreditWatch with negative implications, where it was placed on June 7. The outlook is stable. At the same time, the 'B+' ratings on Lucite's 10.25% 2010 bonds were affirmed. "The downgrade reflects the weakening of Lucite's key credit ratios after a private equity-led recapitalization and including material debt-funded returns to shareholders," said Standard & Poor's credit analyst Khaled Zitouni. "The affirmation of the bond rating reflects our expectation that they will be fully refinanced by the recapitalization." As a result of the recapitalization, we expect the ratio of funds from operations to net adjusted debt including the pay-in- kind loans to weaken substantially, from about 22% in 2005, to 10% in 2006. What is more, total debt is likely to increase materially, from GBP335 million as of March 2006, to GBP570 million after the recap, of which 75%, or GBP180 million, is to be returned to shareholders. In addition to shareholder- oriented measures, leverage will be affected by planned substantial capital expenditure increases in 2006 and 2007 related to several growth projects, chiefly to do with the company's new alpha production process and plant. NORTHERN ELECTRICAL: Appoints Joint Administrators from PwC ----------------------------------------------------------- Russell Cash and Michael Horrocks of PricewaterhouseCoopers LLP were appointed joint administrators of Northern Electrical Connectors Limited (Company Number 02008319) on May 23. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides, among others, auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. Headquartered in Mossley, United Kingdom, Northern Electrical Connectors Limited manufactures electrical connectors for use in transport and electricity distribution industry. OLWEN DIRECT: Brings In Harris Lipman as Administrators ------------------------------------------------------- Barry David Lewis and Freddy Khalastchi of Harris Lipman LLP were appointed joint administrator of Olwen Direct Marketing Services (Croydon) Limited (Company Number 2545971) on May 26. The administrators can be contacted at: Harris Lipman LLP 2 Mountview Court 310 Friern Barnet Lane Whetstone London N20 0YZ United Kingdom Tel: (020) 8446 9000 Fax: (020) 8446 9537 Web site: http://www.harris-lipman.co.uk Olwen Direct Marketing Services (Croydon) Limited can be reached at: 1-2 Stafford Cross Croydon CR0 4FQ United Kingdom Tel: 020 8253 7000 Fax: 020 8688 1211 REAL INTERIORS: Hires Gerals Edelman as Joint Administrators ------------------------------------------------------------ Ian Douglas Yerrill and Bernard Hoffman of Gerald Edelman Business Recovery were appointed joint administrators of Real Interiors Limited (Company Number 04658703) on May 26. The administrators can be contacted 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 Headquartered in Sittingbourne, United Kingdom, Real Interiors Limited is engaged in interior design. SEA CONTAINERS: Moody's Further Cuts Junk Sr. Unsecured Rating -------------------------------------------------------------- Moody's Investors Service downgraded the senior unsecured ratings and confirmed the senior secured rating of Sea Containers Ltd. -- Senior Unsecured to Caa3, Senior Secured of B3. These actions complete the review for downgrade initiated on May 2. The outlook is negative. The downgrades are due to the increased probability of a payment default following Sea Containers' recent disclosure that it is unable to confirm whether it will pay the US$115 million principal amount of 10-3/4% senior unsecured notes due October 2006. Sea Containers also announced the sale of Silja Oy Ab. Consequently, the amount of a key component of Sea Containers' short-term liquidity could be resolved, if the transaction closes by the required completion date of July 28 and with no adjustments to the disclosed sale price. However, the company's estimate of excess proceeds (US$60 million) after retirement of approximately US$510 million of debt secured by the Silja Lines fleet would be insufficient for Sea Containers to fund expected operating losses and to retire the 10-3/4% Notes at maturity. Sea Containers disclosed that it held cash of US$183 million at May 31; however, only approximately US$52 million was not restricted by obligations to third parties or did not belong to subsidiaries that were restricted from remitting certain cash balances to Sea Containers. As well, provisions of an existing indenture require a portion of the proceeds from the sale of the shares of Orient Express Hotels to be returned to public note holders, in an amount, which could be in excess of the reported unrestricted cash. Sea Containers attributed approximately US$100 million of its cash balance at May 31 to the sale of the shares of OEH. The ability of Sea Containers to meet its payment obligations depends on a number of factors: -- the outcome of ongoing discussions with the public note holders, particularly with regards to the application of the remaining excess proceeds from the sales of the shares of OEH; -- the amount by which the realized sales price for Silja Lines exceeds the related secured debt; -- the speed with which the management team resolves the operational challenges affecting the rail and container businesses; and -- the values that could be realized from monetization of other assets such as the legacy container assets or the investment in GE SeaCo. The Caa3 senior unsecured rating reflects Moody's opinion that holders of the notes could receive less than a full recovery. The B3 rating on the US$85 million senior secured credit facility is notched up from the Corporate Family Rating because the facility is secured by a portion of Sea Containers' legacy container fleet, and advances are made under a borrowing base suggesting a reasonable collateral cushion. The company is not in compliance with certain financial covenants of the agreement although, according to the company, the lenders have entered into forbearance agreements that are scheduled to expire at the end of June 2006. The negative outlook reflects the heightened prospects of a default given the company's cash position and the ongoing discussions with public note holders. Ratings affected: Sea Containers Ltd.: -- Caa1 Corporate Family Rating lowered to Caa2; -- Caa2 Senior Unsecured Rating lowered to Caa3; -- Caa2 Issuer Rating lowered to Caa3; and -- Senior Secured Rating confirmed at B3. Sea Containers Ltd. headquartered in Hamilton Bermuda, is a provider of ferry services, primarily in the Baltic Sea, the franchisee-operator of the Great Northern Railroad in the U.K., and a lessor of cargo containers to the shipping industry. ROYAL & SUNALLIANCE: Targets GBP130-Mln Cost Savings by 2008 ------------------------------------------------------------ Royal & Sun Alliance Insurance Group PLC presented to investors and analysts on how the Core Group will drive profitable performance and included a number of new targets including: -- Growth initiatives in each of its core regions; and -- Further annualized expense savings of GBP130 million by mid 2008. In 2003, R&SA set out plans to restructure the Group. The Group target of achieving GBP270 million of annualized expense savings by the end of 2006 was delivered ahead of schedule. Driven by these actions to restructure the Group and drive operational excellence, R&SA has delivered nine successive quarters of sub 100 combined operating ratios. It remains committed to its objective of delivering sustainable profitable performance. R&SA disclosed a range of growth initiatives in each of its three regions - U.K., International and Scandinavia. These included annual double-digit growth in International, doubling premiums in the Baltics and growing its U.K. affinity business by more than 50%. R&SA targets a further GBP130 million of annualized expense savings, which represents approximately 9% of the 2005 cost base, to be delivered by mid 2008. These savings will be driven in part by a reduction in headcount of 1,550, including 1,000 in the U.K. The Group consulted and will continue to work closely with its union partners in the U.K. and Scandinavia over the next two years to minimize the number of compulsory redundancies. The costs of realizing the expense savings of around GBP100 million will be funded by the expected savings over the next two years and will not adversely impact profitability. The new expense savings targets are a key part of the Group's aim to reduce its expense ratios in the U.K. and Scandinavia to under 15% and its operating expense ratio for its intermediated business in Canada to single digits. "We have a clear strategy of running general insurance businesses with strong market positions to deliver sustainable profitable performance. The decision to reduce headcount is always a difficult one but necessary to ensure we remain as competitive as possible and to continue to deliver on our objective of sustainable profitable performance," Andy Haste, Group CEO of Royal & SunAlliance, commented. "Over the last three years we have built an excellent platform for growth with exciting opportunities. We have developed a strong track record of delivery and we will be pursuing these new opportunities with the same drive, energy and ambition as we have applied to the restructuring of the business. We are confident that we will deliver on our plans and that we will strengthen our position as one of the best general insurers," Mr. Haste concluded. Across the portfolio, the Core Group will also continue to look for bolt on acquisitions to drive profitable growth in its key markets and segments. In the UK, premiums at the end of the first quarter 2006 were 7% down on prior year reflecting the Group's commitment to maintaining technical price. During the first five months of the year, R&SA entered a number of significant new partnerships, which when fully on stream will bring annualized premium of GBP200 million. The Group's objective is to double its premiums in Latin America by 2010 and to continue to drive strong double digit growth from Johnson, its direct operation in Canada. As part of these plans, the Group signed a purchase agreement to acquire the personal lines business of Shillington Insurance Brokers and its subsidiary, which will add approximately GBP20 million of premium to the Johnson business. In the first quarter of 2006, the Group's Scandinavian operations delivered underlying premium growth of 4%. The Group's expectation is that it will continue to deliver low single digit underlying premium growth for the remainder of 2006. R&SA's longer-term objectives in the region are to strengthen its number three market positions in Denmark and Sweden and double premiums in the Baltics by 2010. The Baltics are attractive emerging markets where the Group already has number one positions and delivered premium growth of 44% in the first quarter of 2006. As part of its Baltic expansion plan, R&SA's Scandinavian subsidiary, Codan bought out of the minority interests in its Latvian and Lithuanian businesses for GBP53 million as well as its intention to enter the Estonian market in early 2007. In addition, Codan will be undertaking a buy back of shares in the market through a continuous buy back process of up to a maximum of GBP100 million. R&SA does not intend to participate in this buy back. Headquartered in London, Royal & SunAlliance Insurance Group PLC -- http://www.royalsunalliance.com/-- is a FTSE 100 company, listed on the London Stock Exchange and in New York. The group consists of three regions -- U.K., Scandinavia and International -- with operations in 30 countries, providing general insurance products to over 20 million customers worldwide. * * * As reported in the TCR-Europe on March 27, Standard & Poor's Ratings Services lowered its counterparty credit and insurer financial strength ratings on Royal & Sun Alliance Insurance Group PLC's U.S. insurance operations (RSA USA) to 'BB' from 'BB+'. S&P said the outlook remains negative. At the same time, the ratings were withdrawn at the request of the companies' management. ********* 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 * * *