/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060816.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, August 16, 2006, Vol. 7, No. 162 Headlines A U S T R I A A BIS Z: Salzburg Court Orders Closing of Business A TEC: Klagenfurt Court Orders Closing of Business CELESTE CAFE: Vienna Court Orders Closing of Business CHRISTIAN WAGNER: Vienna Court Orders Closing of Business EBO NEWORAL: Vienna Court Orders Closing of Business F R A N C E ATARI INC: Posts US$7.1 Million Net Loss in First Quarter 2006 G E R M A N Y 11-8-45 INFORMEDIA: Claims Registration Ends September 6 ACKERMANN SPEDITION: Claims Registration Ends September 7 ALERIS INTERNATIONAL: Board of Directors Okay Aurora Merger Pact ANKA SCHMUCKVERTRIEBS: Claims Registration Ends August 17 CLIMATECH AKTIENGESELLSCHAFT: Claims Registration Ends Aug. 30 DUERR AG: Cuts First-Half Net Loss to EUR3.3 Million HUSS MASCHINENFABRIK: Financial Woes Prompt Insolvency Filing HV DIRECT: Claims Registration Ends August 24 RACE DIRECT: Claims Registration Ends September 1 SCHNITZLER GMBH: Claims Registration Ends August 29 SWEN HEINRICHS: Claims Registration Ends September 1 TEN HAAF: Claims Registration Ends August 20 ULRICH BRUENEMANN: Claims Registration Ends August 30 VISTEON CORP: Closes US$675 Million Five-Year Credit Facilities G R E E C E OVERSEAS SHIPHOLDING: Earns US$60.2 Million in Second Quarter OVERSEAS SHIPHOLDING: Inks Partnership Pact with TransCanada OVERSEAS SHIPHOLDING: Moody's Assigns Ba1 Unsecured Debt Rating I T A L Y PARMALAT: Parma Court Approves Boschi's Composition of Creditors PARMALAT USA: Wants Court to Extend Claims Objection Deadline K A Z A K H S T A N JSC KAZTRANSOIL: Fitch Affirms Default Rating at BB+ KAIR: Proof of Claim Deadline Slated for Sept. 11 URISKY ELEVATOR: Creditors Must File Claims by Sept. 11 N E T H E R L A N D S GETRONICS NV: Posts EUR41-Million Loss for First Half 2006 KONINKLIJKE AHOLD: Two Investors Seek Sale of U.S. Units KONINKLIJKE AHOLD: Posts EUR10.5 Billion in First-Half Revenues P O L A N D BANK ZACHODNI: Fitch Affirms Individual Rating at C R U S S I A ARAMILSKIY FACTORY: L. Korovnikova to Manage Insolvency Assets BARNAULSKIY FACTORY: Altay Court Starts Bankruptcy Supervision CHILDREN FASHION: M. Vasilega to Manage Insolvency Assets COM-INVEST: Moscow Court Names M. Vasilega as Insolvency Manager ELA-TRADE: Court Names Y. Suzdalev as Insolvency Manager GAS-STROY: Court Names S. Sentyurin as Insolvency Manager KORENNOYE: Voronezh Court Starts Bankruptcy Supervision KURTAMYSHSKAYA FURNITURE: S. Sokolov to Manage Insolvency Assets MICHURINSKIY FOOD: Court Names V. Filatov as Insolvency Manager MIKHAYLOVSKIY LIME: A. Kashkurov to Manage Insolvency Assets RODNIK: Krasnodar Court Starts Bankruptcy Supervision RZHEVSKIY FACTORY: Court Starts Bankruptcy Supervision SIBAY-BREAD: Court Names O. Shakhova as Insolvency Manager SUAL: Sustainable Performance Spurs S&P to Affirm BB- Rating YUMAS: Khanty-Mansiyskiy Court Starts Bankruptcy Supervision YUKOS OIL: Eduard Rebgun Terminates Dutch Unit's Management YUKOS OIL: PKN Orlen Hopeful on Mazeikiu Nafta Purchase Deal S E R B I A & M O N T E N E G R O U.S. STEEL: Earns US$404 Million in Second Quarter 2006 S L O V A K R E P U B L I C U.S. STEEL: Earns US$404 Million in Second Quarter 2006 U K R A I N E AGROPROMPOSTACH: Cherkassy Court Starts Bankruptcy Supervision BARS: Kyiv Court Names Dmitro Luchenko as Insolvency Manager DEKSUM: Kyiv Court Names Denis Malusko as Insolvency Manager DONBAS-FOREST: Court Names Yaroslav Derevyanchenko as Liquidator EKONOMFINANS: Court Names Eduard Davidov as Insolvency Manager EUROPE: Kyiv Court Names Olena Tsiganenko as Liquidator FIESTA-INVEST: Court Names Vyacheslav Rabushko as Liquidator FINKOM: Mikolaiv Court Names Eduard Davidov as Liquidator LEMANS: Odessa Court Names G. Fedorovska as Insolvency Manager MARKETING-CENTER: Zaporizhya Court Starts Bankruptcy Supervision NEKTAR-AGRO: Court Names Viktoriya Cherepenko as Liquidator UKRSTOCKDEALING: Court Names District Tax Agency as Liquidator VORONTSOV: Court Names District Tax Agency to Liquidate Assets UKRGAZGRUP: Kyiv Court Starts Bankruptcy Supervision UNI-TRADE-SHIPPING AGENCY: Ludmila Zayikina to Liquidate Assets VERTIKAL: Court Names Vyacheslav Rabushko as Insolvency Manager ZAPORIZHYA' TERRITORIAL: Court Starts Bankruptcy Supervision ZOLOTE YAJTSE: Harkiv Court Starts Bankruptcy Supervision U N I T E D K I N G D O M ALERIS INTERNATIONAL: Board of Directors Okay Aurora Merger Pact AMANDA G LTD: Appoints Philip Simons as Liquidator APOLLO VIDEO: Creditors' Meeting Slated for August 22 BRITISH INFLUENCE: Taps Andrew Rosler to Administer Assets CITIZEN SECURITY: Creditors' Meeting Slated for August 23 DAMONT AUDIO: Nominates C. M. Iacovides as Liquidator DOUGLAS POINT: Creditors Confirm Joint Liquidators' Appointment EXEL RECRUITMENT: Brings In P&A Partnership as Administrators H. BROWN: Hires Joint Administrators from Begbies Traynor JOHN FLETCHER: Creditors Appoint Joint Liquidators JOHN PARRY: Taps Kroll Limited to Administer Assets KEY CONTRACTS: Creditors' Meeting Slated for August 22 LARCHCLOUD LIMITED: Names Roderick Graham Butcher Liquidator LEAF & CARVER: Taps Melvyn L. Rose to Liquidate Assets LOCAL AD: Brings In Joint Liquidators from Wilson Pitts LOVE TM: Creditors Resolve to Voluntary Liquidation MAC GOODS: Creditors Agree to Voluntary Winding-Up MAGDON LIMITED: Brings In Liquidator from Butcher Woods MISKIN PLANT: Hires Kroll Limited as Joint Administrators MONACTIVE LIMITED: Creditors' Meeting Slated for August 24 MOSAIC CARE: Claims Filing Period Ends Sept. 30 MOTORING 4 LIMITED: Names Andrew Fender as Administrator NBTY INC: S&P Upgrades Bank Loan Rating to BB+ From BB ODYSSEY RE HOLDINGS: Earns US$202 Mil. in Quarter Ended June 30 OVERSEAS SHIPHOLDING: Earns US$60.2 Million in Second Quarter OVERSEAS SHIPHOLDING: Inks Partnership Pact with TransCanada OVERSEAS SHIPHOLDING: Moody's Assigns Ba1 Unsecured Debt Rating P & N CONTRACTORS: Stephen P. J. Whites Leads Liquidation PAGEBOY SERVICES: Brings In Unity Business as Administrators PREMIER PORTABLE: Hires Administrators from Smith & Williamson PSL LIMITED: Appoints P&A Partnership as Joint Administrators R.T. STEWARD: Brings In Grant Thornton as Administrators RAVENSTONE PARTNERSHIP: Hires Joint Liquidators from Insol House RAWCLIFFE HOMES: Appoints Administrators from Begbies Traynor RAYLEIGH ENGINEERING: Placed Into Voluntary Liquidation REFCO INC: Davidson Kempner Offering to Buy Refco Capital Claims REFCO INC: Investors Buy US$69.9 Million in Claims REFCO INC: Court Extends Lease Decision Period Until Sept. 12 SCORPION SECURITY: Joint Liquidators Take Over Operations SEJOUR LIMITED: Taps Marriotts & David Rubin as Administrators SMC.TECH LIMITED: Taps Joint Liquidators from PKF (UK) LLP STUART SECURITY: Appoints Harrisons as Joint Administrators SYLHET FOODS: Creditors Pass Winding Up Resolution TECHNICAL COLOUR: Hires Administrators from Begbies Traynor U.K. CONSTRUCTION: Hires UHY Hacker Young as Administrators UNIVERSAL AERIAL: Brings In KPMG to Administer Assets V R FROZEN: Nominates Joint Liquidators from Abbott Fielding WHITE TOWER: Fitch Keeps BB Rating on GBP2.5-Mln Class E Notes WOW LIMITED: Creditors Opt to Voluntar Liquidation * Fitch Says Central Europe's Oil Refineries Face Supply Risk ********* ============= A U S T R I A ============= A BIS Z: Salzburg Court Orders Closing of Business -------------------------------------------------- The Land Court of Salzburg entered an order on June 23 closing the business of LLC A bis Z (FN 245687f). Court-appointed property manager Peter Perner determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Peter Perner Karolingerstrasse 1 5020 Salzburg, Austria Tel: 0662/826661 Fax: 0662/826661-10 E-mail: office@dr-perner.at Headquartered in Salzburg, Austria, the Debtor declared bankruptcy on May 31 (Bankr. Case No. 23 S 38/06t). A TEC: Klagenfurt Court Orders Closing of Business -------------------------------------------------- The Land Court of Klagenfurt entered an order on June 23 closing the business of LLC A TEC Advanced Process Technologies (FN 124536t). Court-appointed property manager Gerhard Brandl determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Gerhard Brandl Kardinalschuett 7 9020 Klagenfurt, Austria Tel: 0463/55577 Fax: 0463/502191 E-mail: rechtsanwalt@kanzlei-brandl.at Headquartered in Eberstein, Austria, the Debtor declared bankruptcy on June 20 (Bankr. Case No. 41 S 66/06p). CELESTE CAFE: Vienna Court Orders Closing of Business ----------------------------------------------------- The Trade Court of Vienna entered an order on June 22 closing the business of LLC Celeste Cafe (FN 73450s). Court-appointed property manager Johannes Jaksch determined that the continuing operation of the business would reduce the value of the estate. The property manager and his representative can be reached at: Dr. Johannes Jaksch c/o Dr. Alexander Schoeller Reischachstrasse 3/12 A 1010 Vienna, Austria Tel: 713 44 33 713 34 05 Fax: 713 10 33 E-mail: kanzlei@jsr.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 20 (Bankr. Case No. 2 S 66/06b). Alexander Schoeller represents Dr. Jaksch in the bankruptcy proceedings. CHRISTIAN WAGNER: Vienna Court Orders Closing of Business --------------------------------------------------------- The Trade Court of Vienna entered an order on June 23 closing the business of LLC Christian Wagner (FN 239038b). Court- appointed property manager Georg Unger determined that the continuing operation of the business would reduce the value of the estate. The property manager and his representative can be reached at: Dr. Georg Unger c/o Dr. Arno Maschke Mariahilfer Road 50 1070 Vienna, Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: schulyok-unger@csg.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 24 (Bankr. Case No. 5 S 76/06w). Arno Maschke represents Dr. Unger in the bankruptcy proceedings. EBO NEWORAL: Vienna Court Orders Closing of Business ---------------------------------------------------- The Trade Court of Vienna entered an order on June 22 closing the business of LLC Ebo - Neworal (FN 34335v). Court-appointed property manager Wolfgang Pitzal determined that the continuing operation of the business would reduce the value of the estate. The property manager and his representative can be reached at: Dr. Wolfgang Pitzal c/o Dr. Hannelore Pitzal Paulanergasse 9 1040 Vienna, Austria Tel: 587 31 11 587 31 12 Fax: 587 87 50 50 E-mail: office@heller-pitzal.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 20 (Bankr. Case No. 2 S 65/06f). Hannelore Pitzal represents Dr. Pitzal in the bankruptcy proceedings. =========== F R A N C E =========== ATARI INC: Posts US$7.1 Million Net Loss in First Quarter 2006 -------------------------------------------------------------- Atari Inc. filed its first fiscal quarter financial statements for the three months ended June 30, 2006, with the U.S. Securities and Exchange Commission on Aug. 9. The Company reported a US$7.114 million net loss on US$19.474 million of net revenues for the first fiscal quarter ended June 30, 2006, compared with a US$32.817 million net loss on US$23.877 million of net revenues for the same period in 2005. The Company said the net loss is the result of the lack of new products released in the current quarter combined with soft sales on its catalogue product. At June 30, 2006, the Company's balance sheet showed US$143.670 million in total assets, US$70.458 million in total liabilities, and US$73.212 million in total stockholders' equity. The Company's June 30 balance sheet showed strained liquidity with US$66.398 million in total current assets available to pay US$69.789 million in total current liabilities. Need for Additional Funding On May 31, the Company's credit facility with HSBC Business Credit (USA) Inc. expired and no alternative method of short- term financing has been established. Historically, the Company has relied on Infogrames Entertainment S.A., the Company's majority stockholder, to provide limited financial support; however, as IESA continues to address its own financial condition, its ability to fund its subsidiaries' operations, including Atari, remains limited. Atari said there can be no assurance that it will ultimately receive any funding from IESA. Atari is exploring various alternatives to improve its financial position and secure other sources of financing. Those possibilities include a new credit facility, new arrangements to license intellectual property, the sale of selected intellectual property rights and sale of development studios. To reduce working capital requirements and further conserve cash, it needs to take additional actions in the near-term, which may include further personnel reductions and suspension of certain development projects. These actions may or may not prove to be consistent with the Company's long-term strategic objectives. Since April 2006, the Company raised approximately US$9 million through sales of a certain intellectual property, and subsequent to June 30, 2006, Atari sold the Driver intellectual property, as well as certain assets of its wholly owned studio, Reflections Interactive Ltd., to a third party for approximately US$24 million. However, these amounts are insufficient to fully address the uncertainties of Atari's financial position. The Company continues to seek additional funding. Full-text copies of the Company's first quarter financials are available for free at http://ResearchArchives.com/t/s?f6e Going Concern Doubt As reported in the Troubled Company Reporter on July 3, 2006, Deloitte & Touche LLP expressed substantial doubt about Atari, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the for the fiscal years ended March 31, 2006 and 2005. The auditing firm pointed to Atari's significant operating losses and the expiration of its line of credit facility. New York-based Atari, Inc. (Nasdaq: ATAR) -- http://www.atari.com/-- develops interactive games for all platforms and is one of the largest third-party publishers of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre-defining franchises such as The Matrix(TM) (Enter The Matrix and The Matrix: Path of Neo), and Test Drive(R); and mass-market and children's franchises such as Nickelodeon's Blue's Clues(TM) and Dora the Explorer(TM), and Dragon Ball Z(R). Atari, Inc. is a majority- owned subsidiary of France-based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), the largest interactive games publisher in Europe. ============= G E R M A N Y ============= 11-8-45 INFORMEDIA: Claims Registration Ends September 6 -------------------------------------------------------- Creditors of 11-8-45 Informedia GmbH have until Sept. 6 to register their claims with court-appointed provisional administrator Jens M. Schmittmann. Creditors and other interested parties are encouraged to attend the meeting at 1:20 p.m. on Sept. 27 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 Essen Hall 293 2nd Floor Principal Establishment Gelber Bereich Zweigertstr. 52 45130 Essen, 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 Essen opened bankruptcy proceedings against 11-8-45 Informedia GmbH on July 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: 11-8-45 Informedia GmbH Ruhr Avenue 185 45136 Essen, Germany Attn: Georg Clemens Block, Manager Anemonenweg 4 45133 Essen, Germany The administrator can be contacted at: Dr. Jens M. Schmittmann Zweigertstrasse 28-30 45130 Essen, Germany Tel: 0201 438740 ACKERMANN SPEDITION: Claims Registration Ends September 7 --------------------------------------------------------- Creditors of Ackermann Spedition GmbH have until Sept. 7 to register their claims with court-appointed provisional administrator Friedrich von Kaltenborn-Stachau. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 28 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Lueneburg opened bankruptcy proceedings against Ackermann Spedition GmbH on July 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Ackermann Spedition GmbH Attn: Bernd Ackermann, Manager Appenstedter Way 61-65 21217 Seevetal, Germany The administrator can be contacted at: Friedrich von Kaltenborn-Stachau Jungfernstieg 30 20354 Hamburg, Germany Tel: 040/35006-0 Fax: 040/35006176 E-mail: friedrich.von.kaltenborn@brInet.com ALERIS INTERNATIONAL: Board of Directors Okay Aurora Merger Pact ---------------------------------------------------------------- Aleris International Inc.'s Board of Directors unanimously approved the Agreement and Plan of Merger with Aurora Acquisition Merger Sub, Inc. On Aug. 7, 2006, the Company entered into an Agreement and Plan of Merger pursuant to which Aurora Acquisition Holdings, Inc.'s wholly owned subsidiary, Aurora Merger, will merge with and into Aleris. Aleris will continue as the surviving corporation and becoming a wholly owned subsidiary of Aurora Holdings. Aurora Holdings is owned by affiliates of Texas Pacific Group. Pursuant to the Merger Agreement: * each outstanding share of common stock of Aleris other than shares owned by Aurora Holdings, Aurora Merger Sub or any subsidiary of Aurora Holdings or Aleris, * shares held in the treasury of Aleris, and * shares held by any stockholders who are entitled to and who properly exercise appraisal rights under Delaware law, will be cancelled and converted into the right to receive US$52.50 in cash, without interest. The Merger Agreement also provides for a post-signing "go-shop" period which permits Aleris to solicit competing acquisition proposals until 12:01 a.m. on Sept. 7, from any person who directly or indirectly through a controlled entity manufactures or fabricates metals and is not a discretionary private equity fund or other discretionary investment vehicle. A full-text copy of the Agreement and Merger Plan dated Aug. 7 is available for free at http://ResearchArchives.com/t/s?f6b About Aleris International Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris International, Inc. -- http://www.aleris.com/-- manufactures rolled aluminum products and is a global leader in aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The Company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. * * * As reported in TCR-Europe on Aug. 11, Standard & Poor's Ratings Services placed its 'BB-' corporate credit and other ratings on Beachwood, Ohio-based Aleris International Inc. on CreditWatch with negative implications. The rating action follows the announcement that Texas Pacific Group has come to an agreement to acquire the outstanding stock of Aleris for approximately US$1.7 billion plus assume or repay approximately US$1.6 billion of debt. The CreditWatch placement reflects our concerns of additional debt in the capital structure. Details of Texas Pacific's financing for this acquisition were not disclosed. ANKA SCHMUCKVERTRIEBS: Claims Registration Ends August 17 --------------------------------------------------------- Creditors of ANKA Schmuckvertriebs GmbH have until Aug. 17 to register their claims with court-appointed provisional administrator Frank Imberger. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Sept. 28 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 ANKA Schmuckvertriebs GmbH on July 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ANKA Schmuckvertriebs GmbH Attn: Recai Guer and Irfan Karaduman, Managers Konrad Adenauer Place 5-6 44787 Bochum, Germany Volker Winkelmeier, Manager Castroper Hellweg 49 44805 Bochum, Germany The administrator can be contacted at: Frank Imberger Huestrasse 34 44787 Bochum, Germany CLIMATECH AKTIENGESELLSCHAFT: Claims Registration Ends Aug. 30 -------------------------------------------------------------- Creditors of CLIMATECH Aktiengesellschaft have until Aug. 30 to register their claims with court-appointed provisional administrator Juergen Wallner. Creditors and other interested parties are encouraged to attend the meeting at 10:50 a.m. on Sept. 27 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 Leipzig Hall 145 Leipzig, 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 Leipzig opened bankruptcy proceedings against CLIMATECH Aktiengesellschaft on July 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: CLIMATECH Aktiengesellschaft Attn: Andreas Ebert, Manager Stoehrerstr. 7 04347 Leipzig, Germany The administrator can be contacted at: Dr. Juergen Wallner Karl Heine Road 25B 04229 Leipzig, Germany DUERR AG: Cuts First-Half Net Loss to EUR3.3 Million ---------------------------------------------------- Duerr AG released its financial results for the first half ended June 30, 2006. The Duerr Group's incoming orders increased in the first six months of 2006 by 16% on the previous year's period (EUR728.4 million) to EUR845.3 million. The improvement was mainly driven by growth in the Paint and Assembly Systems division. The Measuring and Process Systems division showed incoming orders up 4% in the first half of the year; the first quarter's decline was more than offset in the second quarter. Incoming orders from Asia rose 76.5% on the previous year. We received strategically important orders from Southern Europe in the second quarter. Business in the Americas held steady at an unsatisfactory level. Consolidated sales in the first six months of 2006 came to EUR626.3 million and was thus 4.7% below the previous year's level (EUR656.9 million), as expected. The main reason for was relatively weak incoming orders in the second half of 2005, which found expression at a time lag in sales. Orders on hand stood at EUR929.9 million on June 30, 2006, which was EUR206.4 million more than at the end of 2005. Earnings significantly improved The gross margin rose on annual average to date by 0.6 percentage points to 17%. The main reason for the plus was already realized efficiency gains and the service business, whose importance is growing. The decline of selling and administrative costs in the second quarter also deserves mention. The costs of implementing FOCUS, for which we were unable to create provisions last year due to IFRS accounting rules, are stated separately at EUR3.7 million. EBITDA reached EUR16.4 million in the first six months of 2006 (previous year: EUR14.7 million), and EBIT doubled from EUR3.0 million in the previous year's period to EUR6.0 million. Interest expenses declined by EUR5.2 million on the first half of 2005 to EUR13.1 million. Net financial debt amounted to EUR122.2 million on June 30, 2006, compared with EUR334.0 million on the same date last year. The net loss at the end of the first six months of 2006 came to EUR-3.3 million (previous year: EUR-12.5 million). In the second quarter of 2006, positive earnings after taxes of EUR1.3 million were achieved after EUR-5.9 million in the previous year's period, despite significantly lower reported sales (down by EUR46.6 million to EUR317.0 million). The equity ratio rose significantly to 23% as of June 30, 2006 (June 30, 2005: 18%). "We are satisfied with the development in the year to date. Notwithstanding the expected decline of sales in the second quarter, we improved earnings and were in the black," Ralf Dieter, CEO of Duerr AG commented. "Thanks to the FOCUS measures, we made visible progress on improving our cost structure in the second quarter. We expect a significant upturn of sales in the second half of the year, based on the strong incoming orders of the first half. We should also make further earnings progress". Process Improvement in FOCUS's Implementation Phase All FOCUS projects have already started up on schedule. In the framework of these projects, our internal processes have been examined for improvement potential. Implementing that potential in the FOCUS projects is the company's top priority. Eight of the projects were already completed by March 31 of this year. Another five were wrapped up in the second quarter of 2006. Outlook Because of the positive demand trend in modernization and service business and for new plants, especially from Asia and Eastern Europe, Duerr expects higher incoming orders in 2006 than in the previous year. Sales in 2006 will be at least at the previous year's level. Duerr expects a significant increase of operating earnings for 2006 because of the initiated FOCUS measures. Net interest results will improve compared with 2005. Overall, the company expects slightly positive earnings for 2006, which will remain a year of transition and implementation. Our medium-term return target is 4% based on earnings before taxes and 8% based on EBITDA. About Duerr Headquartered in Stuttgart, Germany, Duerr AG -- http://www.durr.com/en/-- supplies products, systems, and services for automobile manufacturing. Its range of products and services covers important stages of vehicle production. As a systems supplier, Duerr plans and builds complete paint shops and final assembly facilities. It also delivers cleaning and filtration systems for the manufacture of engine and transmission components as well as balancing systems. * * * Duerr AG's 9-3/4% senior subordinated notes due 2011 carry Moody's Investors Service's Caa1 rating and Standard & Poor's CCC+ rating. HUSS MASCHINENFABRIK: Financial Woes Prompt Insolvency Filing ------------------------------------------------------------- HUSS Maschinenfabrik GmbH & Co. KG was forced to file for insolvency on Aug. 1, after it was unable to obtain credit extensions from its lenders. The company said it has used up its credit line, which included bank guarantees, at the end of July 2006. The company's insolvency practitioner, the senior management and its investor are consulting in an effort to secure and maintain jobs, products and the HUSS brand for the world market. The filing, similar to a chapter 11 proceeding in the United States, has come about as part of the company's restructuring and refinancing relating to the involvement of a new investor. This, the company said, will ensure the continuation of HUSS in a much stronger financial position. Headquartered in Bremen, Germany, HUSS Maschinenfabrik GmbH & Co. KG was one of the largest, and most popular amusement ride manufacturer in the world. Founded in 1919, the company originally manufactured equipment for ships, but diversified out into the production of amusement rides in 1969. As of 2006, this was the sole business of the company. HV DIRECT: Claims Registration Ends August 24 --------------------------------------------- Creditors of HV Direct-Marketing GmbH have until Aug. 24 to register their claims with court-appointed provisional administrator Christian Willmer. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Oct. 5 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 Syke Hall 112 Hauptstr. 5A 28857 Syke, 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 Syke opened bankruptcy proceedings against HV Direct-Marketing GmbH on July 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: HV Direct-Marketing GmbH Attn: Volker Hauptvogel, Manager Buersteler Road 4 28816 Stuhr, Germany The administrator can be contacted at: Dr. Christian Willmer George Route 5 D-27283 Verden, Germany Tel: 04231/884-0 Fax: 04231/884-55 RACE DIRECT: Claims Registration Ends September 1 ------------------------------------------------- Creditors of Race Direct GmbH have until Sept. 1 to register their claims with court-appointed provisional administrator Ralf Mueller. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Sept. 26 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Lueneburg opened bankruptcy proceedings against Race Direct GmbH on July 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Race Direct GmbH Attn: Mathias Stolzenberg, Manager Beedenbosteler Way 3 29229 Celle, Germany The administrator can be contacted at: Ralf Mueller c/o Wasner & Mueller Veersser Str. 41 29525 Uelzen, Germany Tel: 0581/16006 Fax: 0581/17159 SCHNITZLER GMBH: Claims Registration Ends August 29 --------------------------------------------------- Creditors of Schnitzler GmbH have until Aug. 29 to register their claims with court-appointed provisional administrator Christian Plail. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Sept. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Augsburg Law Courts Meeting Room 149 Alten Einlass 1 86150 Augsburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Augsburg opened bankruptcy proceedings against Schnitzler GmbH on July 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Schnitzler GmbH Attn: Schnitzler Eugen-Andreas, Manager Dinkelstrasse 2 86845 Grossaitingen, Germany The administrator can be contacted at: Christian Plail c/o SKP Partnerschaftsgesellschaft Eserwallstr. 1-3 86150 Augsburg, Germany SWEN HEINRICHS: Claims Registration Ends September 1 ---------------------------------------------------- Creditors of Swen Heinrichs Putz Stuck Akustik Altbausanierung GmbH & Co. KG have until Sept. 1 to register their claims with court-appointed provisional administrator Johannes Klefisch. Creditors and other interested parties are encouraged to attend the meeting at 9:35 a.m. on Oct. 16 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 5 3rd Floor Alter Posthof 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 Swen Heinrichs Putz Stuck Akustik Altbausanierung GmbH & Co. KG on July 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Swen Heinrichs Putz Stuck Akustik Altbausanierung GmbH & Co. KG Attn: Swen Heinrichs, Manager Schellerwinkel 16 52222 Stolberg, Germany The administrator can be contacted at: Johannes Klefisch Rotter Bruch 6 52068 Aachen, Germany TEN HAAF: Claims Registration Ends August 20 -------------------------------------------- Creditors of ten Haaf Sicherheitsprodukte GmbH & Co. KG have until Aug. 20 to register their claims with court-appointed provisional administrator Axel Kampmann. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Sept. 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 Arnsberg Meeting Room 328 Eichholzstr. 4 59821 Arnsberg, 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 Arnsberg opened bankruptcy proceedings against ten Haaf Sicherheitsprodukte GmbH & Co. KG on July 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ten Haaf Sicherheitsprodukte GmbH & Co. KG Attn: Friedrich ten Haaf, Manager Huenenburg 28 59823 Arnsberg, Germany The administrator can be contacted at: Dr. Axel Kampmann Bronnerstrasse 7 44141 Dortmund, Germany ULRICH BRUENEMANN: Claims Registration Ends August 30 ----------------------------------------------------- Creditors of Ulrich Bruenemann-Kamper GmbH have until Aug. 30 to register their claims with court-appointed provisional administrator Hubertus Bange. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on Sept. 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 Muenster Meeting Room 13 B Gerichtsstr. 2-6 48149 Muenster, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Muenster opened bankruptcy proceedings against Ulrich Bruenemann-Kamper GmbH on July 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Ulrich Bruenemann-Kamper GmbH Attn: Ulrich Bruenemann-Kamper, Manager Holzhausener Road 1 49536 Lienen, Germany The administrator can be contacted at: Hubertus Bange Kardinal-von-Galen-Str. 5 48268 Greven, Germany VISTEON CORP: Closes US$675 Million Five-Year Credit Facilities --------------------------------------------------------------- Visteon Corp. has closed on new European and U.S. five-year revolving credit facilities with an aggregate availability of up to US$675 million. The facilities replaced the company's multi- year secured revolving credit facility of US$500 million expiring in June 2007. Citigroup Global Markets Inc., JPMorgan Securities Inc. and UBS Securities LLC led the European receivables securitization of US$325 million. JPMorgan Securities Inc. and Citigroup Global Markets Inc. led the U.S. secured revolver of US$325 million. "Closing on these facilities completes the financing we undertook earlier in the year, including a seven-year US$800 million secured term loan completed in June," James F. Palmer, Visteon executive vice president and chief financial officer disclosed. "The completion of our financing activities provides us with additional flexibility as we focus on implementing our three- year plan," Mr. Palmer added. About the Company Visteon Corp. (NYSE: VC)-- http://www.visteon.com/-- is a leading global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Kerpen, Germany; the company has more than 170 facilities in 24 countries and employs approximately 47,000 people. * * * As reported in TCR-Europe on June 19, Fitch Ratings placed a rating of B/RR1 to the senior secured bank debt announced by Visteon Corp. In addition, Fitch affirmed Visteon's Senior unsecured debt at CCC-/RR5. The Issuer Default Rating is unchanged at CCC. Fitch said the Rating Outlook is Negative. =========== G R E E C E =========== OVERSEAS SHIPHOLDING: Earns US$60.2 Million in Second Quarter ------------------------------------------------------------- Overseas Shipholding Group Inc. reported results for the second fiscal quarter of 2006. As of June 30, 2006, net income was US$60.2 million, down 47% from US$114.2 million in the same period a year earlier. The year ago quarter benefited from gains on vessel sales of US$13.2 million, compared with a loss of US$3.5 million, in the current quarter. EBITDA for the second quarter declined 38% to US$109.1 million from US$176.3 million in the second quarter of 2005. TCE revenues in the quarter decreased by 5% to US$216.3 million from US$228.6 million in the second quarter of 2005. For the six months ended June 30, 2006, the Company reported net income of US$188.6 million, a 32% decline from net income of US$279.1 million, recorded in the first half of 2005. Net income for the first half of 2005 benefited from gains on ship disposals of US$26.1 million, compared with a loss of US$3.6 million for the same period in fiscal 2006. EBITDA for the first six months of 2006 was US$289.2 million, a 28% decrease from US$399.7 million in the first half of 2005. TCE revenues for the six months of 2006 increased less than 1% to US$496.4 million from US$495.8 million in the first half of 2005. Morten Arntzen, president and chief executive officer, stated, "It was another quarter of strong performance in each of our sectors. In what is generally a seasonally weak quarter, our crude oil tanker fleet, which is entirely double hull, continued to benefit from the tanker market's greater discrimination against single hull tankers and from the tight oil markets across the globe. During the same period, we continued to produce steady results from our Product and U.S. segments, while also building a bigger book of longer term time charters." Mr. Arntzen continued, "We continue to generate strong cash flow, have nearly US$350 million in cash and tax-effected Capital Construction Fund and US$1.8 billion of credit, all available for future growth initiatives and our stock buyback program." About OSG Headquartered in New York, U.S.A., Overseas Shipholding Group, Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest publicly traded tanker companies in the world with an owned, operated and newbuild fleet of 117 vessels, aggregating 13.0 million dwt and 865,000 cbm, as of June 30, 2006. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, the Company is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world's most customer-focused marine transportation companies, with offices in New York, Athens, London, Newcastle and Singapore. * * * As reported in the Troubled Company Reporter on Aug. 9, Moody's Investors Service affirmed the debt ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured at Ba1. The outlook has been changed to stable from negative. OVERSEAS SHIPHOLDING: Inks Partnership Pact with TransCanada ------------------------------------------------------------ Overseas Shipholding Group Inc. disclosed a strategic partnership agreement with TransCanada CNG Technologies Ltd, a subsidiary of TransCanada Corp. Under the agreement, the Company will own and operate a new type of tanker vessel, capable of moving large quantities of compressed natural gas using TransCanada's patented technology for the design, construction and operation of Gas Transport Modules for the transportation of CNG from stranded gas fields throughout the world. Morten Arntzen, president and chief executive officer, said, "We are very excited about working with TransCanada on both the development of these unique gas carriers and the projects for which they are intended. As the world seeks alternative energy resources and fuel substitutions, this proprietary technology is a real breakthrough for facilitating the recovery of natural gas from fields that were once not cost effective to reach." Mr. Arntzen continued, "Combining TransCanada's unique technology with OSG's in-depth knowledge of marine transportation and vessel construction, will enable our respective companies to be the first to develop an efficient and commercially viable CNG vessel." About TransCanada TransCanada (NYSE, TSX: TRP) is a leader in the responsible development and reliable operation of North American energy infrastructure. TransCanada's network of more than 41,000 kilometres (25,600 miles) of wholly owned pipeline transports the majority of Western Canada's natural gas production to key Canadian and U.S. markets. A growing independent power producer, TransCanada owns, or has interests in, approximately 6,700 megawatts of power generation in Canada and the United States. About OSG Headquartered in New York, U.S.A., Overseas Shipholding Group, Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest publicly traded tanker companies in the world with an owned, operated and newbuild fleet of 117 vessels, aggregating 13.0 million dwt and 865,000 cbm, as of June 30, 2006. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, the Company is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world's most customer-focused marine transportation companies, with offices in New York, Athens, London, Newcastle and Singapore. * * * As reported in the Troubled Company Reporter on Aug. 9, Moody's Investors Service affirmed the debt ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured at Ba1. The outlook has been changed to stable from negative. OVERSEAS SHIPHOLDING: Moody's Assigns Ba1 Unsecured Debt Rating --------------------------------------------------------------- Moody's Investors Service affirmed the debt ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured at Ba1. The outlook has been changed to stable from negative. The ratings reflect Overseas Shipholding's leading market position as an operator of one of the world's largest tanker fleets. The Company derives approximately 75% of revenue from transporting crude oil at spot market rates. The high recent market rates have produced cyclically strong financial results for the Company. With EBIT margins of about 40%, Debt of about 3x and EBIT of almost 4x, OSG's metrics are consistent with its Ba1 debt ratings when applying Moody's methodology for the Global Shipping industry. The Company has repaid a substantial portion of the debt incurred from the February 2005 acquisition of Stelmar Shipping Ltd. and reported debt is down from the pre-acquisition levels. However, Overseas Shipholding increased the number of vessels chartered-in over this time and entered into large sale transactions for other vessels, resulting in a moderate increase in indebtedness with almost no change in leverage. The ratings consider the highly cyclical nature of the shipping sector and anticipate a modest weakening of the credit metrics as shipping rates normalize over time. In addition, Overseas Shareholding's fleet growth, expected to be financed by charter-in agreements, could increase future leverage, particularly during a cyclical trough in tanker rates. Recognizing the sharp shipping cycles and the planned fleet growth, OSG maintains strong liquidity, which supports the ratings. The ratings are also constrained by the yet to be resolved investigation and recent indictment by the United States Department of Justice regarding alleged violations concerning maintenance of books and records with respect to the handling of waste oils on some of the company's vessels. The change in outlook to stable from negative reflects Moody's view that demand for OSG's shipping services is likely to remain solid over the next 12 to 18 months. World demand for crude oil and refined products is strong and, working to OSG's advantage, there are longer ton-mile trades due to continuing demand in the Far East and geographic imbalances between refinery capacity and end use markets. The stable outlook also considers that approximately 25% of OSG's revenues are under time charters averaging three years. OSG is expected to maintain strong liquidity through cash on hand, the Capital Contribution Fund, and a large, long term revolving credit facility, which is undrawn at this time. The ratings could be downgraded if Debt is sustained above 4x, or if EBIT falls below 3x. Downward rating pressure could also result if OSG completes a significant debt-financed acquisition, which weakens the credit metrics for a sustained period of time, if it undertakes a more expansive charter-in fleet growth strategy, or if lower rates take hold resulting in sustained negative free cash flow. Favorable rating action could result if Debt is sustained below 2x while EBIT is sustained above 5x. A change in the chartering strategy resulting in a significant reduction of the company's exposure to the spot market, by fixing at least 50 percent of the crude carriers on long-term time charters, would likely change OSG's risk profile and could provide the impetus for an upgrade. About OSG Headquartered in New York, U.S.A., Overseas Shipholding Group, Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest publicly traded tanker companies in the world with an owned, operated and newbuild fleet of 117 vessels, aggregating 13.0 million dwt and 865,000 cbm, as of June 30, 2006. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, the Company is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world's most customer-focused marine transportation companies, with offices in New York, Athens, London, Newcastle and Singapore. ========= I T A L Y ========= PARMALAT: Parma Court Approves Boschi's Composition of Creditors ---------------------------------------------------------------- The Court of Parma entered an order validating the Composition with Creditors proposed by the Extraordinary Commissioner of Boschi Luigi e Figli S.p.A. in Extraordinary Administration pursuant to art. 4 bis of Law No. 166 of July 5, 2004, and Legislative Decree No 119 of May 3, 2004, as amended. Due to the validation of the Composition with Creditors, Boschi Luigi e Figli S.p.A. is no longer considered insolvent and will be included in the area of consolidation of the Parmalat Group starting from the third quarter 2006. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations 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. 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. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. (Parmalat Bankruptcy News, Issue No. 75; Bankruptcy Creditors' Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/) PARMALAT USA: Wants Court to Extend Claims Objection Deadline ------------------------------------------------------------- Parmalat USA Corp., Milk Products of Alabama, LLC, and Farmland Dairies, LLC, together with the Farmland Unsecured Creditors' Trust, ask the U.S. Bankruptcy Court for the Southern District of New York to reconsider its last order extending their Claim Objection Deadline, and, to the extent necessary, the Confirmation Order, to permit them to file objections to recently discovered claims. The confirmed Plan of Reorganization of Farmland Dairies LLC, and Plans of Liquidation of Parmalat USA Corp. and Farmland Stremicks Sub, LLC -- formerly known as Milk Products of Alabama -- established the deadlines for the Debtors to object to claims: -- Aug. 11, 2005, for Farmland and MPA; and -- Sept. 23, 2005, for Parmalat USA. Through various extension requests, the Court extended the U.S. Debtors' Claim Objection Deadline to December 16, 2005. Bankruptcy Services LLC, the Debtors' official claims agent, has informed the U.S. Debtors of its discovery of five proofs of claim filed electronically on the Court's electronic case filing system, David M. LeMay, Esq., at Chadbourne & Parke LLP, in New York, relates. Two claims were filed by Sun Company, Inc., and the remaining three by the City of New York Department of Finance. The procedures and instructions for filing a proof of claim on ECF, which can be found at the Court's official Web site, provide very specific instructions when it is appropriate to file a claim electronically, Mr. LeMay notes. Pursuant to the Instructions, an attorney should not proceed with the filing of a claim on the ECF in certain situations, including on bankruptcy cases with claims agent, in which instance, the attorney should refer to the bar date notice or contact the claims agent. The U.S. Debtors believe that the Claimants of the Electronically Filed Claims received actual notice of the Bar Date. Mr. LeMay points out that the Bar Date Notice and the Bar Date Order unambiguously provide that all creditors must submit a proof of claim "in writing" so that any the claim is received on or before the Bar Date. "A plain reading of the Instructions and Bar Date Order clearly demonstrates that the Electronically Filed [Claims] must be disallowed and expunged," Mr. LeMay asserts. Even if the Electronically Filed Claims were improperly filed and should be disallowed and expunged on that basis alone, the U.S. Debtors further contend that the Claims lack merit and assert liabilities that are absent from the Debtors' books and records. However, because no objection was filed to the Claims by the Claim Objection Deadline, the Claims are deemed allowed pursuant to Section 502(a) of the Bankruptcy Code. The U.S. Debtors believe that reconsideration is warranted under the circumstances. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations 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. 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. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. (Parmalat Bankruptcy News, Issue No. 75; Bankruptcy Creditors' Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/) =================== K A Z A K H S T A N =================== JSC KAZTRANSOIL: Fitch Affirms Default Rating at BB+ ---------------------------------------------------- Fitch Ratings changed the Kazakhstan-based oil pipeline monopoly company JSC KazTransOil's Outlook to Positive from Stable. Its Issuer Default rating is affirmed at BB+ and Short-term rating at B. The Positive Outlook foresees a gradual improvement in KTO's credit ratios as the company begins to generate revenue from the newly completed Atasu-Alashankou pipeline and further reduces debt. Higher cash flow from operations, combined with lower capital expenditure, is expected to return the company to a positive free cash flow position in 2006. KTO's free cash flow deteriorated in 2005 as a result of costs incurred by its joint venture with China's CNPC, the Kazakhstan- Chinese Pipeline LLP, for the construction of the Atasu- Alashankou trunk pipeline. KTO's IDR is supported by the strategic importance of the company to Kazakhstan's oil transportation infrastructure. It owns and operates 6,486 km of oil pipelines and controls at least 60% of the total oil transportation volume. KTO, which is classified as a natural monopoly in Kazakhstan, charges its customers a flat tariff for shipments through its pipeline. KTO has had stable tariffs since 2000, with an average of KZT2,413 per ton per 1,000 km. For supplies to the domestic market, the company uses a discount ratio of 0.54. The amount of the tariff is set by the Anti Monopoly Agency of Kazakhstan and is based primarily on KTO's costs for maintaining and operating the pipeline. As such, this regulated tariff regime means upside profit growth for the company is limited. However, Fitch notes the expected additional earnings from the new Atasu-Alashankou pipeline, as well as from an increase in water transportation tariffs. The additional crude oil transportation volumes of around 10 million tons should help to support the company's already existing customer base, which presently guarantees transit of up to 20 million tons of Kazakhstan's oil via the Russian Transneft pipeline system per year. Of this volume of oil, 15 million tons are allocated to the Atyrau-Samara pipeline and up to 5 million tons to the Makhachkala-Tikhoretsk pipeline. KTO's financial policy can be categorized as moderate. The company's US$150 million Eurobond matured in July 2006 and was fully discharged. At the present time, the company does not intend to issue any new Eurobonds, as future capital expenditure will be fully funded with cash generated from operations. Additionally, KTO's MunaiTas subsidiary plans to make an early repayment on a US$15 million credit facility, further reducing the group's consolidated debt. At the end of 2006, KTO expects to have consolidated total debt of US$175 million versus US$267 million in 2005. KTO has been the monopoly owner and operator of the Republic of Kazakhstan's oil pipeline network since 1997 and is the main provider of point-to-point oil export routing. As such it plays a crucial role in the development of Kazakhstan's oil reserves. KTO also owns and operates 2,434 km of water pipelines and is in charge of water transportation to the Atyrau and Mangistau areas. KAIR: Proof of Claim Deadline Slated for Sept. 11 ------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Company Kair insolvent on June 14. Creditors have until Sept. 11 to submit written proofs of claim to: LLP Company Kair Proletarskaya Str. 93-47 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan URISKY ELEVATOR: Creditors Must File Claims by Sept. 11 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared OJSC Urisky Elevator on June 13. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Sept. 11 to submit written proofs of claim to: OJSC Urisky Elevator Gagarina Str. 166a Kostanai Kostanai Region Kazakhstan Tel: 8 (3142) 54-55-60 ===================== N E T H E R L A N D S ===================== GETRONICS NV: Posts EUR41-Million Loss for First Half 2006 ---------------------------------------------------------- Getronics N.V. released its financial results for the first half ended June 30, 2006. Financial Highlights -- total revenue increased by 11% to EUR1.34 billion (H1 2005: EUR1.21 billion); -- service revenue increased by 16% to EUR1.16 billion (H1 2005: EUR1 billion), while product revenue decreased by 13% to EUR180 million (H1 2005: EUR207 million); -- total service revenue growth on a comparable basis was 1.3% in H1 2006; -- there was good service revenue growth on a comparable basis in: -- the Netherlands (6.2%), -- rest of Europe (4.7%), -- Latin America (4.1%), -- APAC (2.3%), -- North America (-16.6%). The drop in North America was due to the loss in 2005 of substantial parts of two major contracts (Wachovia, BP) as reported in previous announcements; -- EBITAE decreased to EUR34 million (H1 2005: EUR52 mln), resulting in an EBITAE margin of 2.5% (H1 2005: 4.3%); -- this decline in profitability was partly the result of continued price pressure, higher use of external contractors and some poor performing contracts. In addition, the Company suffered from the loss of substantial parts of two major contracts in North America and the first half results were negatively impacted by a number of major contracts in transition. Also the EBITAE in the first half 2005 included a pension related net benefit of EUR14 million in Japan, which explains part of the decrease; -- the operating result decreased to EUR15 million (H1 2005: EUR45 million) and includes EUR9 million acquisition integration expenses and EUR8 million amortisation of acquired intangible assets; -- net result from continuing operations amounted to EUR16 million (H1 2005: EUR7 million) including EUR24 million tax benefit; -- net result from total operations amounted to -EUR41 million (H1 2005: -EUR14 million), including the -EUR57 million net result from discontinued operations (net of an income tax gain of EUR26 million) that was recorded following the sale of the Italian operations completed on June 22, 2006; -- earnings per ordinary share from continuing operations was EUR0.13 (H1 2005: EUR0.06) and EPS from total operations was -EUR0.33 (H1 2005: -EUR0.15); and -- cash flow used in operating activities was EUR142 million in the first half of 2006 (H1 2005: EUR160) including EUR35 million for the Italian discontinued operations. The Italian discontinued operations also led to a -EUR42 million investing cash flow which includes EUR44 million cash transferred to the buyer and -EUR41 million financing cash flow relating to repayment of Italian borrowings. 1) The consolidated results include PinkRoccade's results as of March 14, 2005. Pursuant to the Company's decision to sell the Italian operations, the results of the Italian operating company are reported in the condensed consolidated financial statements as 'discontinued operations.' Accordingly, the results of 2005 and 2006 as presented throughout the Operating and Financial Review are excluding the Italian operations, unless stated otherwise. Key Business Highlights -- the Company's focus on providing global, standardized, future-ready workspace services is starting to pay off, with significant new global wins achieved over the past 12 to 18 months, creating a healthy backlog of international business worth more than EUR1 billion; -- in the first half of 2006, Getronics achieved major global wins with Barclays and ING. Barclays awarded the Company a five-year contract worth approximately EUR200 million for Workspace Management Services, Application Services and Technology Transformation Services. This was the largest Ever order won by Getronics within the Financial Services sector. In the case of ING, the Preferred Supplier Team (PST) (including Accenture, Atos Origin, Getronics and KPN) signed a Memorandum of Understanding with ING for the outsourcing of workplace service provisions of 53,000 ING employees in Europe. The expected contractual value for the PST is in excess of EUR800 million and has a five year duration; -- 2006 is an important year of transition for Getronics, as the Company continues to invest in its services portfolio, in transitioning several major new contracts, in strengthening its international bid support process as well as its infrastructure for global service delivery to international clients. This is the primary reason why the increased service revenue growth in the majority of regions and countries (with the exception of North America) has not yet converted into improved profitability; -- Getronics has launched its Breakout Program for its global managed services operations in order to increase efficiency, streamline operations and to help accelerate the move to remote or near-shore working. The resulting service model will involve a client-intimate structure that enables sales and account management to quickly respond to client issues, identifying and solving business and technical problems near the client at the front end, with a remote global service delivery model at the back end. This will involve a headcount reduction of more than 1,000 FTEs. Outlook Continued emphasis will be put on increasing the Company's effectiveness at marketing and delivering its portfolio of services. Sustainable profitable growth in service revenue will be pursued by demonstrating the benefits of Getronics' remote managed services and global delivery model to large national and international clients. In areas where Getronics has decided to divest its direct operations, the Company remains dedicated to ensuring a sustained high level of services to its clients through its carefully selected partners and through its global service delivery model. About Getronics Headquartered in Amsterdam, Netherlands, Getronics N.V. -- http://www.getronics.com/-- designs, integrates and manages ICT infrastructures and business solutions for many of the world's largest global and local companies and organizations, helping them maximize the value of their information technology investments. Getronics has some 27,000 employees in over 30 countries and approximate revenues of EUR3 billion. The company has regional offices in Boston, Madrid and Singapore. Its shares are traded on Euronext Amsterdam. * * * As reported in TCR-Europe on Aug 8, kept Dutch IT services group Getronics N.V.'s 'B' long-term corporate credit rating, along with the 'CCC+' senior unsecured debt, 'B' bank loan, and '3' recovery ratings on CreditWatch with negative implications, where they had originally been placed on Jan. 19. The '3' recovery rating indicates Standard & Poor's expectation of meaningful (50%-80%) recovery of principal for secured lenders in the event of a payment default. As reported in TCR-Europe on Aug. 4, Moody's Investors Service downgraded Getronics' corporate family rating to B2 from B1 and placed the ratings on review for possible downgrade following the company's announcement of half year results showing a widening of net losses and fall in margins below the company's expectations. Concurrently the rating on the EUR100 million senior unsecured convertible Dutch bonds due 2008 has been downgraded to Caa1 from B3. KONINKLIJKE AHOLD: Two Investors Seek Sale of U.S. Units -------------------------------------------------------- Funds managed by Paulson & Co. Inc. and Centaurus Capital Ltd. are jointly investigating options to create value for the benefit of various Koninklijke Ahold N.V. stakeholders. Paulson and Centaurus hold an aggregated interest of approximately 6.4% in the issued ordinary shares of Koninklijke Ahold N.V. Paulson and Centaurus believe that the Company needs drastic strategic action to deliver shareholder value. "We believe keeping Ahold's disparate retail and wholesale interests together diminishes shareholder value and limits the operating potential of the individual businesses," Paulson and Centaurus said in a joint statement. The companies further believe that one of the best strategic actions to take for the future prospects of the Company and for enhancing shareholder value is to sell Ahold's U.S. businesses and become a pure play European retailer. "Our analysis, supported by numerous analysts and our financial adviser, based on publicly available information, indicates that by adopting a restructuring plan Ahold could be worth in excess of EUR9 per share. "For this purpose, Paulson and Centaurus will seek to enter into a constructive dialogue with Ahold and exchange views with other stakeholders in the company," they continued. Paulson and Centaurus have retained ING Corporate Finance as their financial advisor and Freshfields Bruckhaus Deringer as their legal advisor. According to Bloomberg News, Ahold's Stop & Shop, Tops and Giant chains -- which accounts for two-thirds of the Dutch retailer's sales -- struggled in the second quarter to compete with Wal- Mart Stores Inc. About Centaurus Headquartered in London, United Kingdom, Centaurus Capital Ltd. -- http://www.centaurus-capital.com/-- manages private investment management in Europe. The company invests in equity and credit securities of companies that are undergoing significant corporate events or are experiencing other major changes, as well as "deep value investments" in securities that we believe are undervalued relative to their fundamental or intrinsic value, or which we expect to appreciate, should a particular event take place. About Paulson Headquartered in New York, U.S.A., Paulson & Co. Inc. -- http://www.paulsonco.com/-- manages approximately US$2.9 billion of assets on behalf of U.S. and international investors. The firm was established in 1994 by John Paulson. About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe and Asia. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * Moody's Investors Service and Standard and Poor's has assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. KONINKLIJKE AHOLD: Posts EUR10.5 Billion in First-Half Revenues ---------------------------------------------------------------- Koninklijke Ahold N.V. posted consolidated net sales of EUR 10.5 billion for the second quarter of 2006 -- virtually unchanged from the same period last year. Excluding exchange rate changes, net sales were up 2.2%. Market conditions remained competitive and, particularly in the United States, energy costs continued to impact consumer behavior. Gross margin in Ahold's United States retail arenas will be positively impacted by further improvements at Giant- Landover as well as store portfolio rationalization at Tops. Although the multi-unit foodservice business is growing faster than the broadline foodservice business, U.S. Foodservice continues to make solid progress to meet its full year 2006 operating margin target. Sales performance Stop & Shop/Giant-Landover -- net sales in the arena increased 1.3% to US$3.9 billion. Excluding the net sales to BI-LO/Bruno's (US$23 million in 2005), net sales increased 1.9%; -- identical sales decreased 0.5% at Stop & Shop (1.7% excluding gasoline net sales) and 0.9% at Giant-Landover; -- comparable sales decreased 0.2% at Stop & Shop and 0.4% at Giant-Landover. Giant-Carlisle/Tops -- net sales in the arena decreased 3.9% to US$1.4 billion; -- identical sales increased 5% at Giant-Carlisle (2.4% excluding gasoline net sales), but decreased 5.3% at Tops (6.9% excluding gasoline net sales); -- comparable sales increased 7.3% at Giant-Carlisle, but decreased 4.5% at Tops. Albert Heijn -- net sales in the arena increased 8.5% to EUR 1.7 billion. -- net sales increased 8.8% to EUR 1.5 billion at Albert Heijn. -- identical sales increased 6.8% at Albert Heijn. Central Europe -- net sales increased 2.7% to EUR 423 million -- an increase more than explained by acquisitions and favorable exchange rate changes, partially offset by the change in the accounting period from three months to 12 weeks (EUR 28 million); and -- identical sales for the arena fell 6.3%. Schuitema -- net sales increased 4.4% to EUR 767 million; and -- Identical sales increased 4.3%. U.S. Foodservice -- net sales at U.S. Foodservice increased 2.3% to US$4.4 billion although the year-over-year increase was negatively impacted by approximately 1% as a result of exiting the Sofco business in the third quarter of 2005. Inflation had a negligible impact on quarterly comparisons; -- net sales at USF Broadline increased 1.8% to US$3.8 billion; -- net sales at North Star Foodservice increased 5.4% to US$586 million; Unconsolidated Joint Ventures and Associates -- net sales of unconsolidated joint ventures and associates increased 4.4%. Excluding the impact of currency, net sales increased 4.3% About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe and Asia. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * Moody's Investors Service and Standard and Poor's has assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. =========== P O L A N D =========== BANK ZACHODNI: Fitch Affirms Individual Rating at C --------------------------------------------------- Fitch Ratings affirmed Poland-based Bank Zachodni WBK's ratings at Issuer Default A, Short-term F1, Individual C and Support 1. The Outlook is Positive. "The bank is performing well, with improving asset quality, good profitability and strong capitalization," Chris Birney, Director with Fitch's Financial Institutions Group disclosed. He added, "The asset management and brokerage businesses are boosting earnings and improving revenue diversification, while the long-awaited return of corporate loan growth signals improved prospects." Fitch also notes that as the bank grows more confident in its risk management systems, it has been relaxing some of its credit granting procedures, with lengthening maturities for corporate lending and rapid growth of higher-risk asset classes such as cash retail loans. Additionally, an increasing portion of the loan portfolio consists of mortgage and other retail loans, which have a short history in Poland and have not been tested through a full economic cycle. The Issuer Default, Short-term and Support ratings are based on the extremely high potential for support fromWBK's controlling shareholder, Allied Irish Banks (AIB, rated AA- /Stable Outlook). WBK's Issuer Default rating is currently constrained by the Country Ceiling A for Poland. AIB is one of the largest banks in Ireland, with EUR8.4 billion of equity at end-2005. It employs over 24,000 people in more than 700 offices worldwide. AIB built a 60.1% stake in WBK between 1995 and 1996. In 1999 AIB acquired 80% of Bank Zachodni SA from the Polish State Treasury and in 2001 merged the two banks to createWBK, in which AIB currently has a 70.5% stake. BZWBK is Poland's fifth largest bank by assets. The Bank operated through 372 branches and had 7,798 full-time employees at end-June 2006. =========== R U S S I A =========== ARAMILSKIY FACTORY: L. Korovnikova to Manage Insolvency Assets -------------------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Ms. L. Korovnikova as Insolvency Manager for LLC Aramilskiy Factory of Reinforced Concrete Products. She can be reached at: L. Korovnikova Post User Box 177 620062 Ekaterinburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-7575/06-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: LLC Aramilskiy Factory of Reinforced Concrete Products Oktyabrskaya Str. 171 Aramil Sverdlovsk Region Russia BARNAULSKIY FACTORY: Altay Court Starts Bankruptcy Supervision -------------------------------------------------------------- The Arbitration Court of Altay Region has commenced bankruptcy supervision procedure on OJSC Barnaulskiy Factory of Fuel Apparatus. The case is docketed under Case No. A03-4592/06B. The Temporary Insolvency Manager is: A. Lyutyj Post User Box 103 119415 Moscow Region Russia The Debtor can be reached at: OJSC Barnaulskiy Factory of Fuel Apparatus Kalinina Str. 28. Barnaul 656037 Altay Region Russia CHILDREN FASHION: M. Vasilega to Manage Insolvency Assets --------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. M. Vasilega as Insolvency Manager for CJSC Garment Factory Children Fashion (TIN 7725049327). He can be reached at: M. Vasilega Post User Box 100 105318 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-17211/06-44-161B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Garment Factory Children Fashion 5th Kozhukhovskaya Str. 1/11 Moscow Region Russia COM-INVEST: Moscow Court Names M. Vasilega as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. M. Vasilega as Insolvency Manager for CJSC Com-Invest (TIN 7725047873). He can be reached at: M. Vasilega Post User Box 100 105318 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-17202/06-44-153B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Com-Invest Avtozavodskaya Str. 17 Moscow Region Russia ELA-TRADE: Court Names Y. Suzdalev as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Mr. Y. Suzdalev as Insolvency Manager for CJSC Ela-Trade. He can be reached at: Y. Suzdalev Post User Box 23 620048 Ekaterinburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-8731/06-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Ela-Trade Lenina Str. 180 Bisert' Nizhneserginskiy Region 623250 Sverdlovsk Region Russia GAS-STROY: Court Names S. Sentyurin as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Kurgan Region appointed Mr. S. Sentyurin as Insolvency Manager for CJSC Gas-Stroy. He can be reached at: S. Sentyurin Myagotina Str. 163a-62 Koli 640000 Kurgan Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A34-6200/05. The Debtor can be reached at: CJSC Gas-Stroy Chekhova Str. 2 Kurgan Region Russia KORENNOYE: Voronezh Court Starts Bankruptcy Supervision ------------------------------------------------------- The Arbitration Court of Voronezh Region has commenced bankruptcy supervision procedure on CJSC Korennoye. The case is docketed under Case No. A14-4335-2006 124/20b. The Temporary Insolvency Manager is: V. Neskromnykh Post User Box 12 Kalach 397600 Voronezh Region Russia The Arbitration Court of Voronezh Region is located at: Room 606 Srednemoskovskaya Str. 77 Voronezh Region Russia The Debtor can be reached at: CJSC Korennoye Lenina Str. 48 Korennoye Kalacheevskiy Region 397615 Voronezh Region Russia KURTAMYSHSKAYA FURNITURE: S. Sokolov to Manage Insolvency Assets ---------------------------------------------------------------- The Arbitration Court of Kurgan Region appointed Mr. S. Sokolov as Insolvency Manager for OJSC Kurtamyshskaya Furniture Factory. He can be reached at: S. Sokolov Proizvodstvennaya Str. 14b Kurtamysh 641430 Kurgan Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A34-1438/2006. The Debtor can be reached at: OJSC Kurtamyshskaya Furniture Factory Konstitutsii Str. 42 Kurtamysh Kurtamyshskiy Region Kurgan Region Russia MICHURINSKIY FOOD: Court Names V. Filatov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Tambov Region appointed Mr. V. Filatov as Insolvency Manager for LLC Michurinskiy Food Combine Resource. He can be reached at: V. Filatov Office 19 Astrakhanskaya Str. 1 392005 Tambov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A64-2784/05-21. The Debtor can be reached at: LLC Michurinskiy Food Combine Resource Zavoronezhskoye Michurinskiy Region Tambov Region Russia MIKHAYLOVSKIY LIME: A. Kashkurov to Manage Insolvency Assets ------------------------------------------------------------ The Arbitration Court of Sverdlovsk Region appointed Mr. A. Kashkurov as Insolvency Manager for CJSC Mikhaylovskiy Lime Pit. He can be reached at: A. Kashkurov Post User Box 171 620062 Sverdlovsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-9329/06-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Mikhaylovskiy Lime Pit Izvestkovaya Str. 1a Mikhaylovsk Nizhneserginskiy Region Sverdlovsk Region Russia RODNIK: Krasnodar Court Starts Bankruptcy Supervision ----------------------------------------------------- The Arbitration Court of Krasnodar Region has commenced bankruptcy supervision procedure on OJSC Health Centre Rodnik (TIN 2301006151). The case is docketed under Case No. A-32-9516/2006-1/295-B. The Temporary Insolvency Manager is: I. Ysko Post User Box 5973. 350007 Krasnodar Region Russia The Debtor can be reached at: OJSC Health Centre Rodnik Pionerskiy Pr. 30 Anapa 353456 Krasnodar Region Russia RZHEVSKIY FACTORY: Court Starts Bankruptcy Supervision ------------------------------------------------------ The Arbitration Court of Sverdlovsk Region has commenced bankruptcy supervision procedure on CJSC Rzhevskiy Factory of Metal-Roll. The case was docketed under Case No. A60-9230/2006-S11. The Temporary Insolvency Manager is: R. Palivoda Krasnoflottsev Str. 6a-204 620017 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Rzhevskiy Factory Of Metal-Roll Office 112 Lunacharskogo Str. 194 620020 Ekaterinburg Region Russia SIBAY-BREAD: Court Names O. Shakhova as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Chelyabinsk Region appointed Ms. O. Shakhova as Insolvency Manager for OJSC Sibay-Bread (TIN 0267005232). She can be reached at: O. Shakhova Lenina Pr. 21v 454091 Chelyabinsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-50895/2005-52-358. The Debtor can be reached at: OJSC Sibay-Bread K. Marksa Str. 2 Bolkhov 303142 Chelyabinsk Region Russia SUAL: Sustainable Performance Spurs S&P to Affirm BB- Rating ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Russia-based vertically integrated aluminum company Sual International Ltd., reflecting sustainable performance. The Russia national scale rating was also affirmed at 'ruAA-'. The outlook is stable. "The ratings on Sual are constrained by the company's ambitious investment plans; exposure to aluminum price fluctuations; and by the risks of operating in Russia, where most of the company's cash-generating assets are based," said Standard & Poor's credit analyst Elena Anankina. "Key positive rating factors are Sual's low cost position and self-sufficiency in bauxite and alumina, which support profitability and cash flow generation through the cycle." Sual is a midsize aluminum company operating a diversified production base of five aluminum smelters, three facilities combining alumina refining and smelting, and two bauxite mines. In 2005, on the back of favorable aluminum prices, its revenues totaled US$2.57 billion mostly export, EBITDA stood at US$600 million on 1.05 million tons of primary aluminum, and free operating cash flow was US$64 million despite capital expenditures increasing to US$260 million. This enabled Sual to retain stable debt. At Dec. 31, 2005, adjusted debt was US$759 million including US$647 million of on-balance-sheet debt, US$15 million in asset retirement obligations, US$78.5 million in guarantees, and US$18 million in postretirement obligations. In the next couple of years, Standard & Poor's expects that Sual's operating cash flow will benefit from high aluminum prices, while debt including off-balance-sheet continues to grow due to capital investment projects. Standard & Poor's believes that--given the location of the company's assets--Sual will likely retain its cost advantage. Standard & Poor's will monitor the extent to which uncertainties related to the ongoing reform of Russia's electricity and railway sectors affect Sual's cost position, and whether the company's strategy of actively managing electricity price risks through investment will prove successful. "The key rating driver is the implementation of the company's investment plan," Ms. Anankina added. "Rating upside will depend on Sual's progress with its capital expenditure projects, particularly the benefits of the expansion of the Irkaz smelter and efficiency improvements at other plants." No significant debt-financed acquisitions or projects, except for the expansion of Irkaz and greenfield construction at Komi, the company's joint venture, are factored into the ratings and outlook. If the company undertakes significant debt-financed projects, the ratings or outlook might come under pressure. YUMAS: Khanty-Mansiyskiy Court Starts Bankruptcy Supervision ------------------------------------------------------------ The Arbitration Court of Khanty-Mansiyskiy Autonomous Region has commenced bankruptcy supervision procedure on Open-Joint Stock National Enterprise Yumas. The case was docketed under Case No. A75-1817/2006. The Temporary Insolvency Manager is: A. Reshetnik Apartment 168 2nd Location 24 Nyagan 628681 Tyumen Region Russia The Arbitration Court of Khanty-Mansiyskiy Autonomous Region is located at: Lenina Str. 54/1 Khanty-Mansiysk Autonomous Region Russia The Debtor can be reached at: Open-Joint Stock National Enterprise Yumas Yumas Kondinskiy Region Khanty-Mansiyskiy Autonomous Region YUKOS OIL: Eduard Rebgun Terminates Dutch Unit's Management ----------------------------------------------------------- Eduard Rebgun, in his capacity as court-appointed insolvency manager for OAO Yukos Oil Co., fired Bruce Misamore and David Godfrey of Dutch-based Yukos Finance BV hours after a Dutch court ruling on Aug. 11, MosNews says. "They stood against the interests of shareholders," Mr. Rebgun told Interfax. "They held talks, while I was completely sidelined. I considered that unacceptable and made a decision to change the managers," Mr. Rebgun said. Mr. Rebgun said Yukos shareholders authorized the decision hours after the Amsterdam court ruled that he was within his rights to call for an extraordinary meeting to discharge the managers, MosNews discloses. The decision paved the way for creditors to take control of Yukos Finance's main assets, including: -- a 54-percent stake in Lithuanian refinery Mazeikiu Nafta AB, worth almost US$1.5 billion; and -- a 49-percent stake in Transpetrol, worth between US$100 million and US$200 million. Mr. Rebgun's lawyers argued in court that Messrs. Misamore and Godfrey had moved the Dutch assets in 2005 to Yukos International U.K. BV, which then transferred its shares to Stichting Administratiekantoor Yukos International in exchange for certificates, in order to keep them out of creditors' reach, MosNews relates. As reported in TCR-Europe on May 30, Yukos and Poland's largest oil refiner signed a share sale and purchase agreement on May 26 wherein PKN will acquire the 53.7% stake in Mazeikiu Nafta for US$1.49 billion. At the same time, PKN Orlen will purchase the Lithuanian government's 30.66% stake in Mazeikiu. Under the agreement, PKN will have the right to walk away from the transaction by the end of the year if Mazeikiu's value falls significantly. The Slovakian government, which holds the remaining 51% in Transpetrol, indicated earlier this month that it is trying to reinforce its position in Transpetrol by re-acquiring a 49% stake it sold to Yukos in 2002. About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state-owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On July 25, Yukos creditors voted to liquidate the oil firm after rejecting a management rescue plan, which valued the company's assets at about US$30 billion. This would have permitted Yukos to continue its operations and attempt to pay off US$18 billion in debts through asset sales. The Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate Yukos Oil and declared what was once Russia's biggest oil firm bankrupt on Aug. 1. The expected court ruling paves the way for the company's liquidation and auction. YUKOS OIL: PKN Orlen Hopeful on Mazeikiu Nafta Purchase Deal ------------------------------------------------------------ Poland's PKN Orlen said that a change of management at bankrupt OAO Yukos Oil Co. was unlikely to influence Orlen's agreed purchase of Lithuanian oil refinery Mazeikiu Nafta AB, Reuters reports. Eduard Rebgun, in his capacity as court-appointed insolvency manager for Yukos, has fired Bruce Misamore and David Godfrey of Dutch-based Yukos Finance BV on Aug. 11 after they failed to involve him in foreign asset sales. "The agreement was signed and is in force," Orlen spokesman Dawid Piekarz was quoted by Reuters as saying. "We don't believe that this should have any impact." Yukos and Poland's largest oil refiner signed a share sale and purchase agreement on May 26 wherein PKN will acquire the 53.7% stake in Mazeikiu Nafta for US$1.49 billion. At the same time, PKN Orlen will purchase the Lithuanian government's 30.66% stake in Mazeikiu. Under the agreement, PKN will have the right to walk away from the transaction by the end of the year if Mazeikiu's value falls significantly. The company is awaiting regulatory approval from the Antimonopoly Committee of Ukraine and the appropriate antitrust authorities in the United States before the deal's expected completion early next year. PKN does not expect that the requirement to obtain additional consents in Ukraine and the US will delay the closing of the transaction or increase the risks for the successful closing. In a press conference last week, PKN Management Board President Igor Chalupiec said that the acquisition price of Mazeikiu Nafta, specified in the agreements concluded with Yukos International U.K. BV and the Lithuanian government, is a fixed price and may be reduced only in the event of payment of dividends from the 2005 profit to the existing shareholders. Mazeikiu Financing Orlen is negotiating with bank lenders to secure financing for the US$2.34 billion purchase of Mazeikiu Nafta, Mark Miler of Bloomberg News cited Orlen Finance Director Pawel Szymanski as saying. Mr. Szymanski said he expects an agreement on the financing "within weeks", Bloomberg relates. About PKN Orlen Headquartered in Poland, PKN Orlen operates three refineries located in Plock, Trzebinia and Jedlicze. It processes mainly URAL blend crude oil, shipped from Russia via the Friendship pipeline. Alternative supplies of crude oil to Plock may be sourced via the Pomerania pipeline, which connects the fuel reloading facility on the Baltic Sea with the Plock refinery. PKN ORLEN's retail network in Poland is made of 1,326 company owned stations, 504 affiliated stations and 87 franchised stations. About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On July 25, Yukos creditors voted to liquidate the oil firm after rejecting a management rescue plan, which valued the company's assets at about US$30 billion. This would have permitted Yukos to continue its operations and attempt to pay off US$18 billion in debts through asset sales. The Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate Yukos Oil and declared what was once Russia's biggest oil firm bankrupt on Aug. 1. The expected court ruling paves the way for the company's liquidation and auction. ===================================== S E R B I A & M O N T E N E G R O ===================================== U.S. STEEL: Earns US$404 Million in Second Quarter 2006 ------------------------------------------------------- United States Steel Corp. reported a net income of US$404 million, second quarter 2006, compared to first quarter 2006 net income of US$256 million and second quarter 2005 net income of US$249 million "Solid demand in our key end markets, outstanding operating performance, strong shipments and firming prices, particularly in spot markets, resulted in an excellent second quarter with earnings significantly higher than both the previous quarter and the same quarter last year," Commenting on results, U. S. Steel Chairman and CEO John P. Surma said. "We operated at high rates of production capability in the U.S. and Europe, reflecting an outstanding performance by our people and the benefits of our recent capital programs." The company reported second quarter 2006 income from operations of US$514 million, compared with income from operations of US$369 million in the first quarter of 2006 and US$421 million in the second quarter of 2005. The income tax provision in the second quarter of 2006 included a favorable adjustment of US$15 million, or 12 cents per diluted share, related to the 2005 estimated tax accrual. During the second quarter of 2006, our 7% Series B Mandatory Convertible Preferred Shares automatically converted into common stock, increasing our common stock outstanding by approximately 16 million shares. The Company repurchased 1.9 million shares of common stock for US$117 million during the second quarter, bringing the total shares repurchased to 7.7 million for US$371 million since our repurchase program was authorized in July 2005. Reportable Segments and Other Businesses Management believes segment income from operations is a key measure in evaluating company performance. U. S. Steel's reportable segments and Other Businesses reported segment income from operations of US$579 million in the second quarter of 2006, compared with US$429 million in the first quarter of 2006 and US$495 million in the second quarter of 2005. The increase in second quarter 2006 Flat-rolled income from operations compared to the first quarter mainly resulted from higher average realized prices and shipment volumes. Costs remained in line with first quarter levels as lower energy and outage costs were offset by higher raw material and profit-based costs. The improvement in European operating results was due primarily to higher prices and record shipments. Tubular operating results remained strong, but declined as expected from the first quarter due to scheduled maintenance outages, which were completed as planned. Outlook "We expect continued strong operating results for our three reportable segments in the third quarter of 2006," Commenting on U. S. Steel's outlook, Surma said. "Healthy steel consumption levels are expected during the quarter along with further increases in flat-rolled prices in the U.S. and in Europe." For Flat-rolled, the Company expects increased third quarter 2006 average realized prices, partially offset by increased costs for raw materials and outages, and shipments are expected to be comparable to second quarter levels. Third quarter average realized prices are also expected to improve for U. S. Steel Europe, partially offset by higher costs, primarily for raw materials. Shipments are expected to remain at second quarter levels. In Serbia, the Company is currently involved in discussions with our employees, unions and government agencies regarding a workforce reduction plan that may be initiated as early as the third quarter. Shipments and average realized prices for the Tubular segment in the third quarter of 2006 are expected to be in line with second quarter levels, and costs are expected to improve due mainly to lower outage costs. About the Company U.S. Steel (NYSE: X) -- http://www.ussteel.com/-- through its domestic operations, is engaged in the production, sale and transportation of steel mill products, coke, and iron- bearing taconite pellets; the management of mineral resources; real estate development; and engineering and consulting services and, through its European operations, which include U. S. Steel Kosice, located in Slovakia, and U. S. Steel Balkan located in Serbia, in the production and sale of steel mill products. Certain business activities are conducted through joint ventures and partially owned companies. United States Steel Corporation is a Delaware corporation. * * * As reported on the Troubled Company Reporter on July 31, 2006, Standard & Poor's Ratings Services placed its ratings, including its 'BB' corporate credit rating, on Pittsburgh, Pennsylvania- based United States Steel Corp. on CreditWatch with positive implications. As reported on the Troubled Company Repoter on March, 23, 2006, Moody's Investors Service upgraded the ratings for United States Steel Corporation, raising the company's corporate family rating to Ba1 from Ba2. In a related rating action, Moody's affirmed US Steel's SGL-1 speculative grade liquidity rating. The upgrade reflects the company's significantly strengthened operating margins and coverage ratios, its improved capital structure, and its greater geographic diversification. As a result, Moody's views the company as better placed to cope with the inherent cyclicality of its markets and the high operating leverage ofits asset base. Moody's said the rating outlook is stable. ============================= S L O V A K R E P U B L I C ============================= U.S. STEEL: Earns US$404 Million in Second Quarter 2006 ------------------------------------------------------- United States Steel Corp. reported a net income of US$404 million, second quarter 2006, compared to first quarter 2006 net income of US$256 million and second quarter 2005 net income of US$249 million "Solid demand in our key end markets, outstanding operating performance, strong shipments and firming prices, particularly in spot markets, resulted in an excellent second quarter with earnings significantly higher than both the previous quarter and the same quarter last year," Commenting on results, U. S. Steel Chairman and CEO John P. Surma said. "We operated at high rates of production capability in the U.S. and Europe, reflecting an outstanding performance by our people and the benefits of our recent capital programs." The company reported second quarter 2006 income from operations of US$514 million, compared with income from operations of US$369 million in the first quarter of 2006 and US$421 million in the second quarter of 2005. The income tax provision in the second quarter of 2006 included a favorable adjustment of US$15 million, or 12 cents per diluted share, related to the 2005 estimated tax accrual. During the second quarter of 2006, our 7% Series B Mandatory Convertible Preferred Shares automatically converted into common stock, increasing our common stock outstanding by approximately 16 million shares. The Company repurchased 1.9 million shares of common stock for US$117 million during the second quarter, bringing the total shares repurchased to 7.7 million for US$371 million since our repurchase program was authorized in July 2005. Reportable Segments and Other Businesses Management believes segment income from operations is a key measure in evaluating company performance. U. S. Steel's reportable segments and Other Businesses reported segment income from operations of US$579 million in the second quarter of 2006, compared with US$429 million in the first quarter of 2006 and US$495 million in the second quarter of 2005. The increase in second quarter 2006 Flat-rolled income from operations compared to the first quarter mainly resulted from higher average realized prices and shipment volumes. Costs remained in line with first quarter levels as lower energy and outage costs were offset by higher raw material and profit-based costs. The improvement in European operating results was due primarily to higher prices and record shipments. Tubular operating results remained strong, but declined as expected from the first quarter due to scheduled maintenance outages, which were completed as planned. Outlook "We expect continued strong operating results for our three reportable segments in the third quarter of 2006," Commenting on U. S. Steel's outlook, Surma said. "Healthy steel consumption levels are expected during the quarter along with further increases in flat-rolled prices in the U.S. and in Europe." For Flat-rolled, the Company expects increased third quarter 2006 average realized prices, partially offset by increased costs for raw materials and outages, and shipments are expected to be comparable to second quarter levels. Third quarter average realized prices are also expected to improve for U. S. Steel Europe, partially offset by higher costs, primarily for raw materials. Shipments are expected to remain at second quarter levels. In Serbia, the Company is currently involved in discussions with our employees, unions and government agencies regarding a workforce reduction plan that may be initiated as early as the third quarter. Shipments and average realized prices for the Tubular segment in the third quarter of 2006 are expected to be in line with second quarter levels, and costs are expected to improve due mainly to lower outage costs. About the Company U.S. Steel (NYSE: X) -- http://www.ussteel.com/-- through its domestic operations, is engaged in the production, sale and transportation of steel mill products, coke, and iron- bearing taconite pellets; the management of mineral resources; real estate development; and engineering and consulting services and, through its European operations, which include U. S. Steel Kosice, located in Slovakia, and U. S. Steel Balkan located in Serbia, in the production and sale of steel mill products. Certain business activities are conducted through joint ventures and partially owned companies. United States Steel Corporation is a Delaware corporation. * * * As reported on the Troubled Company Reporter on July 31, 2006, Standard & Poor's Ratings Services placed its ratings, including its 'BB' corporate credit rating, on Pittsburgh, Pennsylvania- based United States Steel Corp. on CreditWatch with positive implications. As reported on the Troubled Company Repoter on March, 23, 2006, Moody's Investors Service upgraded the ratings for United States Steel Corporation, raising the company's corporate family rating to Ba1 from Ba2. In a related rating action, Moody's affirmed US Steel's SGL-1 speculative grade liquidity rating. The upgrade reflects the company's significantly strengthened operating margins and coverage ratios, its improved capital structure, and its greater geographic diversification. As a result, Moody's views the company as better placed to cope with the inherent cyclicality of its markets and the high operating leverage ofits asset base. Moody's said the rating outlook is stable. ============= U K R A I N E ============= AGROPROMPOSTACH: Cherkassy Court Starts Bankruptcy Supervision -------------------------------------------------------------- The Economic Court of Cherkassy Region commenced bankruptcy supervision procedure on OJSC Talne' Commercial-Production Enterprise Agroprompostach (code EDRPOU 00908716). The case is docketed under Case No. 01/2424. The Temporary Insolvency Manager is: Igor Nogovskij Blagovisna Str. 414/1 Cherkassy Region Ukraine The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: OJSC Talne' Commercial-Production Enterprise Agroprompostach Vokzalna Str. 190 Talne 20400 Cherkassy Region Ukraine BARS: Kyiv Court Names Dmitro Luchenko as Insolvency Manager ------------------------------------------------------------ The Economic Court of Kyiv Region appointed Dmitro Luchenko as Liquidator/Insolvency Manager for LLC Bars (code EDRPOU 24884050). He can be reached at: Dmitro Luchenko Barabashova Str. 38/603 61168 Harkiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on May 19. The case is docketed under Case No. 126/14 b-06. 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 Bars Kiyivska Str. 1-V Bagrin Vasilkivskij District Kyiv Region Ukraine DEKSUM: Kyiv Court Names Denis Malusko as Insolvency Manager ------------------------------------------------------------ The Economic Court of Kyiv Region appointed Denis Malusko as Liquidator/Insolvency Manager for LLC Deksum (code EDRPOU 31808842). Denis Malusko as Liquidator/Insolvency Manager He can be reached at: Denis Malusko Lukyanivska Str. 63/48 04071 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 5. The case is docketed under Case No. 23/243-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 Deksum 40-richya Zhovtnya Avenue 120 03127 Kyiv Region Ukraine DONBAS-FOREST: Court Names Yaroslav Derevyanchenko as Liquidator ---------------------------------------------------------------- The Economic Court of Donetsk Region appointed Yaroslav Derevyanchenko as Liquidator/Insolvency Manager for LLC Donbas- Forest (code EDRPOU 23778713). The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 26. The case is docketed under Case No. 5/76 b. He can be reached at: Yaroslav Derevyanchenko Office 6 50-richya SRSR Str. 139 83100 Donetsk Region Ukraine The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Donbas-Forest Lagutenko Str. 1 83086 Donetsk Region Ukraine EKONOMFINANS: Court Names Eduard Davidov as Insolvency Manager -------------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Eduard Davidov as Liquidator/Insolvency Manager for LLC Ekonomfinans (code EDRPOU 32093489). He can be reached at: Eduard Davidov Kintseva Str. 10 54007 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 26. The case is docketed under Case No. 10/359/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: LLC Ekonomfinans Sevastopolska Str. 49 Mikolaiv Region Ukraine EUROPE: Kyiv Court Names Olena Tsiganenko as Liquidator ------------------------------------------------------- The Economic Court of Kyiv Region appointed Olena Tsiganenko as Liquidator/Insolvency Manager for LLC Europe (code EDRPOU 32416312). She can be reached at: Olena Tsiganenko Mayakovskij Avenue 7-a/141 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 200/2b-2006. 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 Europe Mala Kiltseva Str.10/1 Sofiyivska Borshagivka Kievo-Svyatoshinskij District 08131 Kyiv Region Ukraine FIESTA-INVEST: Court Names Vyacheslav Rabushko as Liquidator ------------------------------------------------------------ The Economic Court of Zaporizhya Region appointed Vyacheslav Rabushko as Liquidator/Insolvency Manager for LLC Fiesta-Invest (code EDRPOU 30952179). He can be reached at: Vyacheslav Rabushko Fuchik Str. 14 Melitopol 72319 Zaporizhya Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 29. The case is docketed under Case No. 25/30/06. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Fiesta-Invest Pivnichnij lane, 2 Melitopol 72312 Zaporizhya Region Ukraine FINKOM: Mikolaiv Court Names Eduard Davidov as Liquidator --------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Eduard Davidov as Liquidator/Insolvency Manager for LLC Finkom (code EDRPOU 32543091). He can be reached at: Eduard Davidov Kintseva Str. 10 54007 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 26. The case is docketed under Case No. 10/357/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: LLC Finkom Lenin Avenue 93 Mikolaiv Region Ukraine LEMANS: Odessa Court Names G. Fedorovska as Insolvency Manager -------------------------------------------------------------- The Economic Court of Odessa Region appointed Ms. G. Fedorovska as Liquidator/Insolvency Manager for LLC Lemans (code EDRPOU 33558030). The Court commenced bankruptcy proceedings against the company after finding it insolvent on May 19. The case is docketed under Case No. 24/82-06/4413. She can be reached at: Ms. G. Fedorovska Marshal Zhukov Avenue 87-b/19 65114 Odessa Region Ukraine The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region Ukraine The Debtor can be reached at: LLC Lemans Pershogo Travnya Str. 3 Illichivsk 68001 Odessa Region Ukraine MARKETING-CENTER: Zaporizhya Court Starts Bankruptcy Supervision ---------------------------------------------------------------- The Economic Court of Zaporizhya Region commenced bankruptcy supervision procedure on Scientific-Production LLC Marketing- Center (code EDRPOU 32130483) on June 20. The case is docketed under Case No. 16/36/06. The Temporary Insolvency Manager is: Bichkivskij Oleksij Peremogi Str. 40/7981 69001 Zaporizhya Region Ukraine The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: Scientific-Production LLC Marketing-Center Shaumyan Str. 2-B Berdyansk 71100 Zaporizhya Region Ukraine NEKTAR-AGRO: Court Names Viktoriya Cherepenko as Liquidator ----------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Viktoriya Cherepenko as Liquidator/Insolvency Manager for LLC Nektar-Agro (code EDRPOU 31309302). He can be reached at: Viktoriya Cherepenko Moskovska Str. 54a 54017 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 19. The case is docketed under Case No. 14/23/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: LLC Nektar-Agro Lenino Bashtanskij District Mikolaiv Region Ukraine UKRSTOCKDEALING: Court Names District Tax Agency as Liquidator -------------------------------------------------------------- The Economic Court of Kyiv Region appointed the State Tax Inspection of Golosiyivskij District of Kyiv Region as Liquidator for LLC Ukrstockdealing (code EDRPOU 30866568). The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 6. The case is docketed under Case No. 15/203-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 Ukrstockdealing Budindustrii Str. 5 01013 Kyiv Region Ukraine VORONTSOV: Court Names District Tax Agency to Liquidate Assets -------------------------------------------------------------- The Economic Court of Kyiv Region appointed the State Tax Inspection of Golosiyivskij District of Kyiv Region as Liquidator for LLC Trade House Vorontsov (code EDRPOU 31863180). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/829-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 Trade House Vorontsov Stelmah Str. 10-a Kyiv Region Ukraine UKRGAZGRUP: Kyiv Court Starts Bankruptcy Supervision ---------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on CJSC Holding Company Ukrgazgrup (code EDRPOU 30467543) on May 19. The case is docketed under Case No. 43/787. The Temporary Insolvency Manager is: Shnit Petro Knyazhij Zaton Str. 11/135 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: CJSC Holding Company Ukrgazgrup Zabolotnij Str. 20-a 03187 Kyiv Region Ukraine UNI-TRADE-SHIPPING AGENCY: Ludmila Zayikina to Liquidate Assets --------------------------------------------------------------- The Economic Court of Odessa Region appointed Ludmila Zayikina as Liquidator/Insolvency Manager for LLC Uni-Trade-Shipping Agency (code EDRPOU 32394205). She can be reached at: Ludmila Zayikina Office 203 Velika Arnautska Str. 2-a 65012 Odessa Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 15. The case is docketed under Case No. 7/152-06-5633. The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region Ukraine The Debtor can be reached at: LLC Uni-Trade-Shipping Agency Krimska Str. 72-A/9 65117 Odessa Region Ukraine VERTIKAL: Court Names Vyacheslav Rabushko as Insolvency Manager --------------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Vyacheslav Rabushko as Liquidator/Insolvency Manager for LLC Vertikal (code EDRPOU 31177101). He can be reached at: Vyacheslav Rabushko Fuchik Str. 14 Melitopol 72319 Zaporizhya Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 29. The case is docketed under Case No. 25/312. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Vertikal Vosmogo Bereznya Str. 43/5 Melitopol 72319 Zaporizhya Region Ukraine ZAPORIZHYA' TERRITORIAL: Court Starts Bankruptcy Supervision ------------------------------------------------------------ The Economic Court of Lugansk Region commenced bankruptcy supervision procedure on OJSC Zaporizhya' Territorial Fuel Concern (code EDRPOU 01884656) on June 23. The case is docketed under Case No. 22/246. The Temporary Insolvency Manager is: Podkolzina Lubov Centralnij Lane 7 Oleksandrivsk Lugansk Region Ukraine The Economic Court of Lugansk Region is located at: Geroiv VVV Square 3a 91000 Lugansk Region Ukraine The Debtor can be reached at: OJSC Zaporizhya' Territorial Fuel Concern Smolenska Str. 130 Lugansk Region Ukraine ZOLOTE YAJTSE: Harkiv Court Starts Bankruptcy Supervision --------------------------------------------------------- The Economic Court of Harkiv Region commenced bankruptcy supervision procedure on Agricultural LLC Zolote Yajtse (code EDRPOU 30957487) on June 13. The case is docketed under Case No. B-19/74-06. The Temporary Insolvency Manager is: Volodimir Shuba Gamarnik Str. 5 61003 Harkiv Region Ukraine The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor can be reached at: Agricultural LLC Zolote Yajtse Molodizhna Str. 20 Zamiske Valkivskij District Harkiv Region Ukraine =========================== U N I T E D K I N G D O M =========================== ALERIS INTERNATIONAL: Board of Directors Okay Aurora Merger Pact ---------------------------------------------------------------- Aleris International Inc.'s Board of Directors unanimously approved the Agreement and Plan of Merger with Aurora Acquisition Merger Sub, Inc. On Aug. 7, the Company entered into an Agreement and Plan of Merger pursuant to which Aurora Acquisition Holdings, Inc.'s wholly owned subsidiary, Aurora Merger, will merge with and into Aleris. Aleris will continue as the surviving corporation and becoming a wholly owned subsidiary of Aurora Holdings. Aurora Holdings is owned by affiliates of Texas Pacific Group. Pursuant to the Merger Agreement: * each outstanding share of common stock of Aleris other than shares owned by Aurora Holdings, Aurora Merger Sub or any subsidiary of Aurora Holdings or Aleris, * shares held in the treasury of Aleris, and * shares held by any stockholders who are entitled to and who properly exercise appraisal rights under Delaware law, will be cancelled and converted into the right to receive US$52.50 in cash, without interest. The Merger Agreement also provides for a post-signing "go-shop" period which permits Aleris to solicit competing acquisition proposals until 12:01 a.m. on Sept. 7, 2006, from any person who directly or indirectly through a controlled entity manufactures or fabricates metals and is not a discretionary private equity fund or other discretionary investment vehicle. A full-text copy of the Agreement and Merger Plan dated Aug. 7 is available for free at http://ResearchArchives.com/t/s?f6b About Aleris International Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris International, Inc. -- http://www.aleris.com/-- manufactures rolled aluminum products and is a global leader in aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The Company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. * * * As reported in TCR-Europe on Aug. 11, Standard & Poor's Ratings Services placed its 'BB-' corporate credit and other ratings on Beachwood, Ohio-based Aleris International Inc. on CreditWatch with negative implications. The rating action follows the announcement that Texas Pacific Group has come to an agreement to acquire the outstanding stock of Aleris for approximately US$1.7 billion plus assume or repay approximately US$1.6 billion of debt. The CreditWatch placement reflects our concerns of additional debt in the capital structure. Details of Texas Pacific's financing for this acquisition were not disclosed. AMANDA G LTD: Appoints Philip Simons as Liquidator -------------------------------------------------- Philip Simons of Langley Group LLP was appointed Liquidator of Amanda G Limited on May 17 by resolutions of members and creditors. The company can be reached at: Amanda G Limited 11 Rosemont Road London NW3 6NG United Kingdom Tel: 020 3112 0116 Web: http://www.technomarine.com/ APOLLO VIDEO: Creditors' Meeting Slated for August 22 ----------------------------------------------------- Creditors of Apollo Video Film Hire Limited (Company Number 02445361) will meet at 2:00 p.m. on Aug. 22 at: David Rubin & Partners Pearl Assurance House 319 Ballards Lane London N12 8LY United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 21 at: David Rubin Joint Administrator David Rubin & Partners Pearl Assurance House 319 Ballards Lane London N12 8LY United Kingdom Tel: 020 8343 5900 Fax: 020 8446 2994 David Rubin & Partners -- http://www.drpartners.com/-- specializes in corporate and personal insolvency, recovery, forensic accounting and litigation support. BRITISH INFLUENCE: Taps Andrew Rosler to Administer Assets ---------------------------------------------------------- Andrew Rosler of Ideal Corporate Solutions Ltd. was appointed administrator of The British Influence Limited (Company Number 05138517) on July 13. The administrator can be reached at: Ideal Corporate Solutions Limited 10 Eagley House Deakins Business Park Bolton BL7 9RP United Kingdom Headquartered in Southam, United Kingdom, The British Influence Limited manufactures outer wear for ladies. CITIZEN SECURITY: Creditors' Meeting Slated for August 23 --------------------------------------------------------- Creditors of Citizen Security Services Limited (Company Number 05508648) will meet at 11:00 a.m. on Aug. 23 at: St James Building 79 Oxford Street Manchester M1 6HT United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 22 at: Robert Edward Caunce Cook Administrator UHY Hacker Young St. James Building 79 Oxford Street Manchester M1 6HT United Kingdom Tel: 0161 236 6936 Fax: 0161 228 0117 E-mail: e.cook@uhy-uk.com DAMONT AUDIO: Nominates C. M. Iacovides as Liquidator ----------------------------------------------------- C. M. Iacovides of Jeffreys Henry Jacobs was nominated Liquidator of Damont Audio Limited on May 8. The appointment was confirmed at a subsequent meeting of creditors held on the same day. The company can be reached at: Damont Audio Limited 20-30 Blyth Road Hayes Middlesex UB3 1BY United Kingdom Tel: 020 8573 5122 DOUGLAS POINT: Creditors Confirm Joint Liquidators' Appointment --------------------------------------------------------------- Creditors of Douglas Point Consulting Limited confirmed on May 18 the appointment Neil Charles Money and Neil Richard Gibson of CBA as Joint Liquidators of the company. The company can be reached at: Douglas Point Consulting Limited Desford Road Newtown Unthank Leicester LE9 9FL United Kingdom Tel: 0870 429 6495 EXEL RECRUITMENT: Brings In P&A Partnership as Administrators ------------------------------------------------------------- Christopher Michael White and Derek Leslie Woolley of The P&A Partnership were appointed joint administrators of Exel Recruitment Limited (Company Number 03000598) on July 10. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- is a member firm of the Insolvency Practitioners Association and the Association of Business Recovery Professionals (R3) and act for all clearing banks and a growing number of factors and asset lenders. Headquartered in Derbyshire, United Kingdom, Exel Recruitment Limited is engaged in labor recruitment. H. BROWN: Hires Joint Administrators from Begbies Traynor --------------------------------------------------------- Timothy John Edward Delder and Paul Michael Davis of Begbies Traynor were appointed joint administrators of H. Brown (Fulham) Limited (Company Number 00370566) on July 12. 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. H. Brown (Fulham) Limited can be reached at: 7 Waterside Way London SW17 0HB United Kingdom Tel: 020 8944 0999 Fax: 020 8944 5551 JOHN FLETCHER: Creditors Appoint Joint Liquidators -------------------------------------------------- Creditors of John Fletcher & Co. Limited appointed Peter O'Hara and Simon Weir of O'Hara & Co. as Joint Liquidators of the company on May 18. The company can be reached at: John Fletcher & Co. Limited Unit 13B Climax Works Garnet Road Leeds LS115JY United Kingdom Tel: 0113 276 5141 JOHN PARRY: Taps Kroll Limited to Administer Assets --------------------------------------------------- Simon Wilson and Philip Francis Duffy of Kroll Limited were appointed joint administrators of John Parry (Timber) Limited (Company Number 02681972) on July 14. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Headquartered in Liverpool, United Kingdom, John Parry (Timber) Limited is engaged in sawmill, plane and impregnation wood. KEY CONTRACTS: Creditors' Meeting Slated for August 22 ------------------------------------------------------ Creditors of Key Contracts U.K. Limited (Company Number 04958146) will meet at 11:00 a.m. on Aug. 22 at: The Thistle Hotel Victoria Buckingham Palace Road London SW1W 0SJ United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 21 at: I. P. Sykes and G. W. Rhodes Joint Administrators Begbies Traynor 2-3 Pavilion Buildings Brighton BN1 1EE United Kingdom Tel: 01273 747847 Fax: 01273 747743 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. LARCHCLOUD LIMITED: Names Roderick Graham Butcher Liquidator ------------------------------------------------------------ Roderick Graham Butcher of Butcher Woods was appointed Liquidator of Larchcloud Limited on May 17. The appointment was confirmed at a meeting of creditors held on the same day. The company can be reached at: Larchcloud Limited Unit 1 Buntsford Park Road Bromsgrove Worcestershire B60 3DX United Kingdom Tel: 01527 576 000 LEAF & CARVER: Taps Melvyn L. Rose to Liquidate Assets ------------------------------------------------------ Melvyn L. Rose of Elliot, Woolfe & Rose was appointed Liquidator of Leaf & Carver (Electical Services) Limited on May 18 by resolutions of members and creditors. The company can be reached at: Leaf & Carver (Electical Services) Limited 323A Kennington Road London SE114QE United Kingdom Tel: 020 7735 8434 LOCAL AD: Brings In Joint Liquidators from Wilson Pitts ------------------------------------------------------- D. F. Wilson and J. N. R. Pitts of Wilson Pitts were appointed Joint Liquidators of The Local Ad Mag Limited on May 3 by resolutions of members and creditors. The company can be reached at: The Local Ad Mag Limited 21 Market Place Wetherby West Yorkshire LS226LQ United Kingdom Tel: 01937 588 473 Fax: 01937 588 203 LOVE TM: Creditors Resolve to Voluntary Liquidation --------------------------------------------------- Creditors of Love TM Limited resolved on May 15 to voluntarily liquidate the company's assets. Elizabeth Arakapiotis of Kallis & Co. was appointed Liquidator. The company can be reached at: Love TM Limited 1 Curtain Place London EC2A3AN United Kingdom Tel: 020 7689 7353 MAC GOODS: Creditors Agree to Voluntary Winding-Up -------------------------------------------------- Creditors of Mac Goods Limited agreed on May 19 to voluntarily wind up the company. Ninos Koumettou of Alexander Lawson & Co. was appointed Liquidator. The company can be reached at: Mac Goods Limited 7 Bradford Mall Saddlers Centre Walsall WS1 1YT United Kingdom Tel: 077 9157 1319 MAGDON LIMITED: Brings In Liquidator from Butcher Woods ------------------------------------------------------- Roderick Graham Butcher of Butcher Woods was appointed Liquidator of Magdon Limited on May 17. The appointment was confirmed at a meeting of creditors held on the same day. The company can be reached at: Magdon Limited 7 Oak Street Quarry Bank Brierley Hill West Midlands DY5 2JG United Kingdom Tel: 01384 480450 MISKIN PLANT: Hires Kroll Limited as Joint Administrators --------------------------------------------------------- Peter M. Saville and Andrew J. Pepper of Kroll Limited were appointed joint administrators of Miskin Plant & Tool Hire Company Limited (Company Number 02202309) on July 13. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Headquartered in Hertfordshire, United Kingdom, Miskin Plant & Tool Hire Company Limited is engaged in rental of construction equipment. MONACTIVE LIMITED: Creditors' Meeting Slated for August 24 ---------------------------------------------------------- Creditors of Monactive Limited (Company Number 03544763) will meet at 10:30 a.m. on Aug. 24 at: Courtyard Hotel Padworth Lane Bath Road Reading RG7 5HT United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 23 at: Graham Bushby Joint Administrator Baker Tilly 5th Floor Exchange House 446 Midsummer Boulevard Central Milton Keynes MK9 2EA United Kingdom Tel: 01908 687 800 Fax: 01908 687 801 Headquartered in Birmingham, United Kingdom, Baker Tilly -- http://www.bakertilly.co.uk/-- is a leading independent firm of chartered accountants and business advisers in the United Kingdom. The firm's annual fee income is over GBP168 million and is part of a global network, which has 122 member firms in 85 countries as an independent member of Baker Tilly International. MOSAIC CARE: Claims Filing Period Ends Sept. 30 ----------------------------------------------- Creditors of Mosaic Care Services Limited have until Sept. 30 to send in their names, addresses and descriptions, full particulars of debts and claims, and the names and addresses of solicitors (if any) to appointed Liquidator E. Walls of Marlor Walls at: E. Walls Marlor Walls C12 Marquis Court Marquis Way Team Valley Gateshead NE11 0RU United Kingdom The company can be reached at: Mosaic Care Services Limited 174 Newcastle Road Sunderland SR5 1NW United Kingdom Tel: 01665 510 531 MOTORING 4 LIMITED: Names Andrew Fender as Administrator -------------------------------------------------------- Andrew Fender of Sanderlings LLP was appointed administrator of Motoring 4 Limited (Company Number 04079696) on July 11. The administrator can be reached at: Sanderlings LLP Sanderling House 1071 Warwick Road Acocks Green Birmingham B27 6QT United Kingdom Tel: 0870 243 0540 Headquartered in West Midlands, United Kingdom, Motoring 4 Limited sells motor vehicle parts. NBTY INC: S&P Upgrades Bank Loan Rating to BB+ From BB ------------------------------------------------------ Standard & Poor's Ratings Services raised its bank loan rating for Bohemia, New York-based NBTY Inc., to 'BB+' from 'BB', and raised the recovery rating to '1' from '2'. At the same time, Standard & Poor's revised its outlook to stable from negative and affirmed the 'BB' corporate credit rating and all other ratings on NBTY. The '1' recovery rating indicates the expectation of a full recovery of principal in the event of a default. Approximately US$227.4 million of total debt was outstanding at June 30, 2006. "The higher ratings reflect the expectation of lenders' full recovery of principal on the company's US$160.4 million senior secured credit facility in a simulated payment default scenario because of a meaningful level of bank debt repayment over the past year," said Standard & Poor's credit analyst Alison Sullivan. "The outlook revision reflects the company's improved financial profile and credit measures resulting from reduced debt levels." NBTY repaid US$207 million of debt in the first nine months of fiscal 2006 and an additional US$10 million in July. The company is expected at minimum to maintain these lower debt levels and may further reduce leverage as a result of its continuing efforts to lower inventories and improve working capital. NBTY is a vertically integrated vitamin, mineral, and supplement manufacturer and marketer, with a strong retail presence in the U.K. S&P expects that continued promotional activity to capture market share will suppress material margin improvement through fiscal 2006. However, S&P expects margins to stabilize at the current levels over the near term and do not expect any further margin erosion. "In the event that the company's financial policy becomes more aggressive, or margins are further depressed, we could revise the outlook to negative," Ms. Sullivan said. ODYSSEY RE HOLDINGS: Earns US$202 Mil. in Quarter Ended June 30 --------------------------------------------------------------- Odyssey Re Holdings Corp. reported net income available to common shareholders of US$202.4 million for the quarter ended June 30, 2006, compared with a US$51.1 million net income for the quarter ended June 30, 2005. Net income available to common shareholders for the six months ended June 30, 2006 was US$361.8 million, compared to US$82.6 million for the comparable period of 2005. Total shareholders' equity was US$1.83 billion at June 30, 2006, an increase of US$208.5 million compared to total shareholders' equity of US$1.62 billion at Dec. 31, 2005. Commenting on the second quarter, Andrew A. Barnard, the Company's president and chief executive officer, stated, "We achieved the highest level of earnings this quarter in our history as we continued to benefit from solid underwriting and investment performance. Book value per share has increased 13.6% to date in 2006, allowing us to continue the momentum in compounding book value by 15% over the long term." Odyssey Re Holdings Corp. is an underwriter of property and casualty treaty and facultative reinsurance, as well as specialty insurance. OdysseyRe operates through its subsidiaries, Odyssey America Reinsurance Corporation, Hudson Insurance Company, Hudson Specialty Insurance Company, Clearwater Insurance Company, Newline Underwriting Management Limited and Newline Insurance Company Limited. The Company underwrites through offices in the United States, London, Paris, Singapore, Toronto and Mexico City. Odyssey Re Holdings Corp. is listed on the New York Stock Exchange under the symbol ORH. * * * Odyssey Re Holdings Corp.'s preferred stock rating carries Ba2 from Moody's and BB from Fitch. The Company's senior unsecured debt and long-term issuer default ratings also carry BB+ from Fitch. Moody's placed its rating on Oct. 12, 2005 with a stable outlook. Fitch placed its ratings on March 23, 2006. OVERSEAS SHIPHOLDING: Earns US$60.2 Million in Second Quarter ------------------------------------------------------------- Overseas Shipholding Group Inc. reported results for the second fiscal quarter of 2006. For the quarter ended June 30, 2006, net income was US$60.2 million, down 47% from US$114.2 million in the same period a year earlier. The year ago quarter benefited from gains on vessel sales of US$13.2 million, compared with a loss of US$3.5 million, in the current quarter. EBITDA for the second quarter declined 38% to US$109.1 million from US$176.3 million in the second quarter of 2005. TCE revenues in the quarter decreased by 5% to US$216.3 million from US$228.6 million in the second quarter of 2005. For the six months ended June 30, 2006, the Company reported net income of US$188.6 million, a 32% decline from net income of US$279.1 million, recorded in the first half of 2005. Net income for the first half of 2005 benefited from gains on ship disposals of US$26.1 million, compared with a loss of US$3.6 million for the same period in fiscal 2006. EBITDA for the first six months of 2006 was US$289.2 million, a 28% decrease from US$399.7 million in the first half of 2005. TCE revenues for the six months of 2006 increased less than 1% to US$496.4 million from US$495.8 million in the first half of 2005. Morten Arntzen, president and chief executive officer, stated, "It was another quarter of strong performance in each of our sectors. In what is generally a seasonally weak quarter, our crude oil tanker fleet, which is entirely double hull, continued to benefit from the tanker market's greater discrimination against single hull tankers and from the tight oil markets across the globe. During the same period, we continued to produce steady results from our Product and U.S. segments, while also building a bigger book of longer term time charters." Mr. Arntzen continued, "We continue to generate strong cash flow, have nearly US$350 million in cash and tax-effected Capital Construction Fund and US$1.8 billion of credit, all available for future growth initiatives and our stock buyback program." About OSG Headquartered in New York, U.S.A., Overseas Shipholding Group, Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest publicly traded tanker companies in the world with an owned, operated and newbuild fleet of 117 vessels, aggregating 13.0 million dwt and 865,000 cbm, as of June 30, 2006. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, the Company is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world's most customer-focused marine transportation companies, with offices in New York, Athens, London, Newcastle and Singapore. * * * As reported in the Troubled Company Reporter on Aug. 9, Moody's Investors Service affirmed the debt ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured at Ba1. The outlook has been changed to stable from negative. OVERSEAS SHIPHOLDING: Inks Partnership Pact with TransCanada ------------------------------------------------------------ Overseas Shipholding Group Inc. disclosed a strategic partnership agreement with TransCanada CNG Technologies Ltd, a subsidiary of TransCanada Corp. Under the agreement, the Company will own and operate a new type of tanker vessel, capable of moving large quantities of compressed natural gas using TransCanada's patented technology for the design, construction and operation of Gas Transport Modules for the transportation of CNG from stranded gas fields throughout the world. Morten Arntzen, president and chief executive officer, said, "We are very excited about working with TransCanada on both the development of these unique gas carriers and the projects for which they are intended. As the world seeks alternative energy resources and fuel substitutions, this proprietary technology is a real breakthrough for facilitating the recovery of natural gas from fields that were once not cost effective to reach." Mr. Arntzen continued, "Combining TransCanada's unique technology with OSG's in-depth knowledge of marine transportation and vessel construction, will enable our respective companies to be the first to develop an efficient and commercially viable CNG vessel." About TransCanada TransCanada (NYSE, TSX: TRP) is a leader in the responsible development and reliable operation of North American energy infrastructure. TransCanada's network of more than 41,000 kilometres (25,600 miles) of wholly owned pipeline transports the majority of Western Canada's natural gas production to key Canadian and U.S. markets. A growing independent power producer, TransCanada owns, or has interests in, approximately 6,700 megawatts of power generation in Canada and the United States. About OSG Headquartered in New York, U.S.A., Overseas Shipholding Group, Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest publicly traded tanker companies in the world with an owned, operated and newbuild fleet of 117 vessels, aggregating 13.0 million dwt and 865,000 cbm, as of June 30, 2006. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, the Company is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world's most customer-focused marine transportation companies, with offices in New York, Athens, London, Newcastle and Singapore. * * * As reported in the Troubled Company Reporter on Aug. 9, Moody's Investors Service affirmed the debt ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured at Ba1. The outlook has been changed to stable from negative. OVERSEAS SHIPHOLDING: Moody's Assigns Ba1 Unsecured Debt Rating --------------------------------------------------------------- Moody's Investors Service affirmed the debt ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured at Ba1. The outlook has been changed to stable from negative. The ratings reflect Overseas Shipholding's leading market position as an operator of one of the world's largest tanker fleets. The Company derives approximately 75% of revenue from transporting crude oil at spot market rates. The high recent market rates have produced cyclically strong financial results for the Company. With EBIT margins of about 40%, Debt of about 3x and EBIT of almost 4x, OSG's metrics are consistent with its Ba1 debt ratings when applying Moody's methodology for the Global Shipping industry. The Company has repaid a substantial portion of the debt incurred from the February 2005 acquisition of Stelmar Shipping Ltd. and reported debt is down from the pre-acquisition levels. However, Overseas Shipholding increased the number of vessels chartered-in over this time and entered into large sale transactions for other vessels, resulting in a moderate increase in indebtedness with almost no change in leverage. The ratings consider the highly cyclical nature of the shipping sector and anticipate a modest weakening of the credit metrics as shipping rates normalize over time. In addition, Overseas Shareholding's fleet growth, expected to be financed by charter-in agreements, could increase future leverage, particularly during a cyclical trough in tanker rates. Recognizing the sharp shipping cycles and the planned fleet growth, OSG maintains strong liquidity, which supports the ratings. The ratings are also constrained by the yet to be resolved investigation and recent indictment by the United States Department of Justice regarding alleged violations concerning maintenance of books and records with respect to the handling of waste oils on some of the company's vessels. The change in outlook to stable from negative reflects Moody's view that demand for OSG's shipping services is likely to remain solid over the next 12 to 18 months. World demand for crude oil and refined products is strong and, working to OSG's advantage, there are longer ton-mile trades due to continuing demand in the Far East and geographic imbalances between refinery capacity and end use markets. The stable outlook also considers that approximately 25% of OSG's revenues are under time charters averaging three years. OSG is expected to maintain strong liquidity through cash on hand, the Capital Contribution Fund, and a large, long term revolving credit facility, which is undrawn at this time. The ratings could be downgraded if Debt is sustained above 4x, or if EBIT falls below 3x. Downward rating pressure could also result if OSG completes a significant debt-financed acquisition, which weakens the credit metrics for a sustained period of time, if it undertakes a more expansive charter-in fleet growth strategy, or if lower rates take hold resulting in sustained negative free cash flow. Favorable rating action could result if Debt is sustained below 2x while EBIT is sustained above 5x. A change in the chartering strategy resulting in a significant reduction of the company's exposure to the spot market, by fixing at least 50 percent of the crude carriers on long-term time charters, would likely change OSG's risk profile and could provide the impetus for an upgrade. About OSG Headquartered in New York, U.S.A., Overseas Shipholding Group, Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest publicly traded tanker companies in the world with an owned, operated and newbuild fleet of 117 vessels, aggregating 13.0 million dwt and 865,000 cbm, as of June 30, 2006. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, the Company is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world's most customer-focused marine transportation companies, with offices in New York, Athens, London, Newcastle and Singapore. P & N CONTRACTORS: Stephen P. J. Whites Leads Liquidation --------------------------------------------------------- Stephen P. J. White of White & Co. was appointed Liquidator of P & N Contractors and Developers Limited on May 17 by resolutions of members and creditors. The company can be reached at: P & N Contractors and Developers Limited Villiers Street Works Villiers Street Burnley Lancashire BB115EH United Kingdom Tel: 01282 441 065 PAGEBOY SERVICES: Brings In Unity Business as Administrators ------------------------------------------------------------ Matthew Colin Bowker and Suzanne Payne of Unity Business Services LLP were appointed joint administrators of Pageboy Services (U.K.) Ltd. (Company Number 01424291), Starfinder Ltd. (Company Number 01576555) and Senator Communications Ltd. (Company Number 04036951) on July 13. The joint administrators can be reached at: Unity Business Services LLP Unity House Clive Street Bolton Lancashire BL1 1ET United Kingdom Tel: 01204 395000 Fax: 01204 383999 E-mail: matthewbowker@ubsg.co.uk Headquartered in Liverpool, United Kingdom, Pageboy Services (U.K.) Ltd., Starfinder Ltd. and Senator Communications Ltd. are engaged in call center activities. PREMIER PORTABLE: Hires Administrators from Smith & Williamson -------------------------------------------------------------- Stephen Robert Cork and Joanne Elizabeth Milner of Smith & Williamson were appointed joint administrators of Premier Portable Systems Limited (Company Number 4827442) on July 11. 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. Headquartered in Coulsdon, United Kingdom, Premier Portable Systems Limited manufactures metal structures and parts. PSL LIMITED: Appoints P&A Partnership as Joint Administrators ------------------------------------------------------------- Christopher Michael White and Brendan Ambrose Guilfoyle of The P&A Partnership were appointed joint administrators of PSL (Yorks) Limited (Company Number 03001550) on July 10. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- is a member firm of the Insolvency Practitioners Association and the Association of Business Recovery Professionals (R3) and act for all clearing banks and a growing number of factors and asset lenders. Headquartered in Selby, United Kingdom, PSL (Yorks) Limited offers tank testing, inspection and calibration services. R.T. STEWARD: Brings In Grant Thornton as Administrators -------------------------------------------------------- Ian Stewart Carr and Andrew David Conquest of Grant Thornton U.K. LLP were appointed joint administrators of R.T. Steward Transport Limited (Company Number 01068707) on July 7. 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 Essex, United Kingdom, R.T. Steward Transport Limited is engaged in haulage and storage contracts. RAVENSTONE PARTNERSHIP: Hires Joint Liquidators from Insol House ---------------------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss of Insol House were appointed Joint Liquidators of The Ravenstone Partnership Limited on May 17 after creditors moved to voluntarily wind up the company. The company can be reached at: The Ravenstone Partnership Limited 94 London Road Oadby Leicester LE2 5DJ United Kingdom Tel: 0116 299 3700 RAWCLIFFE HOMES: Appoints Administrators from Begbies Traynor ------------------------------------------------------------- Steven Williams and David Acland of Begbies Traynor were appointed joint administrators of Rawcliffe Homes Limited (Company Number 05746136) on July 10. 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 Goole, United Kingdom, Rawcliffe Homes Limited is engaged in property development. RAYLEIGH ENGINEERING: Placed Into Voluntary Liquidation ------------------------------------------------------- Creditors of Rayleigh Engineering Limited placed the company into voluntary liquidation on May 19. P. Atkinson and G. Mummery of Vantis Redhead French Limited were appointed Joint Liquidators. The company can be reached at: Rayleigh Enginering Limited 19 Nobel Square Burnt Mills Industrial Estate Basildon Essex SS131LP United Kingdom Tel: 01268 728 380 REFCO INC: Davidson Kempner Offering to Buy Refco Capital Claims ---------------------------------------------------------------- Davidson Kempner Capital Management LLC is offering to buy: * scheduled and undisputed Securities Customer Claims (as that term is defined in the RCM Settlement Agreement) against Refco Capital Markets, LTD, at a rate of 65 cents- on-the-dollar; and * scheduled and undisputed FX/Unsecured Claims (as that term is defined in the RCM Settlement Agreement) against Refco Capital Markets, LTD, at a rate of 25 cents-on-the- dollar. This offer is valid through August 21, 2006, contingent on due diligence, the price is subject to change based on events in the bankruptcy and day-to-day news in the industry, and other strings are attached. For additional information, contact: Aileen M. Watson Davidson Kempner Capital Management LLC 65 East 55th Street, 19th Floor New York, New York 10022 Telephone (212) 446-4065 Facsimile (646) 924-0465 About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945- 7000). REFCO INC: Investors Buy US$69.9 Million in Claims -------------------------------------------------- More than US$69,900,000 in claims against Refco, Inc., and its debtor-affiliates' estates have changed hands since they filed for bankruptcy. Investors capitalized on the decision of about 50 Refco claimants to cash in on their claims now instead of waiting for the Bankruptcy Court to confirm a plan of reorganization for Refco, to recover what they're owed. Total Claims Investor Acquired % Acquired -------- ------------ ---------- Abadi & Co. US$27,523,369 39% +++++++++++++++++++- Contrarian Funds 15,572,016 22% ++++++++++++ Hain Capital 8,823,133 13% ++++++- Deutsche Bank 8,781,246 13% ++++++- Fimex Int'l 4,206,762 6% +++ DK Acquisition 1,374,812 2% + QVT Fund LP. 1,006,491 2% + Others 3,992,643 5% ++- Abadi & Co. was the biggest spender, taking home US$27,523,369 in aggregate claims from 11 claimants, including: Transferor Claim Amount ---------- ------------ NKB Investments Ltd. US$11,303,266 Aldesa Valores Puesto 1,961,934 Atlantic Global 2,143,762 Union Bank for Savings& Investment 2,063,000 Hain Capital Holdings LLC filed on January 13, 2006, the first notice of transfer agreement pursuant to Rule 3001(e) of the Federal Rules of Bankruptcy Procedure, after acquiring an US$858,014 claim by Arbitrade 2003. Hain also bought claims from five other claimants, including a US$6,000,000 claim by Prism Ltd. Contrarian Funds LLC acquired four claims totaling US$7,603,741 from Denali Master Fund LP and a US$7,968,275 claim from KPC Corp. Deutsche Bank Securities, Inc., bought US$8,781,246 in claims from Frankfurt FX, LP, Alphix Co. Ltd., and North Hills Management LLC. Fimex International got two US$2,000,000 claims from Abadi & Co. QVT Fund bought claims from Ralph Hervarac, Inc., and Hibernia Investment & Finance, S.A. DK Acquisition got a US$1,374,812 claim by Capital Returns. Other investors that purchased claims against Refco are: Investor Total Amount -------- ------------ SPCP Group LLC US$965,361 Dresdner Bank AG 751,768 ASM Capital II, LP 213,832 Trade-Debt.net 74,934 ASM Capital, LP 72,950 Argo Partners 36,228 Liquidity Solutions 5,171 About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945- 7000). REFCO INC: Court Extends Lease Decision Period Until Sept. 12 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York extended, until Sept. 12, 2006, the time within which Albert Togut, the Chapter 7 trustee overseeing Refco, LLC's estate, may assume or reject certain executory contracts. The Chapter 7 trustee continues to identify and analyze executory contracts to which the Chapter 7 Debtor is a counterparty, to determine which contracts the estate will need to assume or reject, Scott E. Ratner, Esq., at Togut, Segal & Segal LLP, in New York, explains. To date, Mr. Ratner tells the Court, the Refco LLC Trustee has identified, evaluated and disposed of more than 700 executory contracts, by either rejection or assumption and assignment of the contracts to Man Financial, Inc. Nearly all of the assumed and assigned executory contracts involved broker agreements. Approximately 70 executory contracts, mostly equipment or vendor contracts, are still being evaluated and whose final disposition has not yet been determined, Mr. Ratner reports. Since the Chapter 7 Filing Date, the Refco LLC Trustee has met all obligations imposed on Refco LLC's estate under Section 365 with respect to executory contracts, Mr. Ratner says. The Trustee also is performing all of the estate's obligations under Refco LLC's Acquisition Agreement with Man Financial. Mr. Ratner contends that Man Financial is entitled to receive performance under, and the benefit of, certain of Refco LLC's executory contracts for a specified period of time pursuant to the Acquisition Agreement. Mr. Ratner assures the Court that the Extension Request is (i) without prejudice to the rights of any of the non-debtor counterparties to seek, for cause shown, an earlier date upon which the Refco LLC Trustee must assume or reject a specific contract and (ii) without prejudice to the Trustee's right to seek a further extension if necessary and appropriate. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/). SCORPION SECURITY: Joint Liquidators Take Over Operations --------------------------------------------------------- David Hill and John Davies of Begbies Traynor were appointed Joint Liquidators of Scorpion Security Services Limited on May 17 after creditors opted to voluntarily wind up the company. The company can be reached at: Scorpion Security Services Limited The Gatehouse Dragon Parc Abercanaid Merthyr Tydfil Mid Glamorgan CF481PQ United Kingdom Tel: 01685 370 999 Fax: 01685 370 555 SEJOUR LIMITED: Taps Marriotts & David Rubin as Administrators -------------------------------------------------------------- Kevin T. Brown of Marriotts LLP and Paul Robert Appleton of David Rubin & Partners were appointed joint administrators of Sejour Limited (Company Number 04382049) on July 12. The administrators can be reached at: Kevin T. Brown Marriotts LLP Allan House 10 John Princes St London W1G 0JW Tel: 020 7495 2348 Paul Robert Appleton David Rubin & Partners 26-28 Bedford Row London WC1R 4HE United Kingdom Headquartered in London, United Kingdom, Sejour Limited is a unisex hair salon. SMC.TECH LIMITED: Taps Joint Liquidators from PKF (UK) LLP ---------------------------------------------------------- Edward T. Kerr and Ian J. Gould, of PKF (UK) LLP were appointed Joint Liquidators of SMC.TECH Limited on May 16 by resolutions of members and creditors. The company can be reached at: SMC.TECH Limited Rearsby Business Park Gaddesby Lane Rearsby Leicester LE7 4YH United Kingdom Tel: 01664 424 900 Fax: 01664 424 169 STUART SECURITY: Appoints Harrisons as Joint Administrators ----------------------------------------------------------- P. R. Boyle and J. C. Sallabank of Harrisons were appointed joint administrators of Stuart Security Limited (Company Number 04718613) on July 12. Harrisons -- http://www.harrisons.uk.com/-- provides advice and solutions to professional advisors who found their clients experiencing financial difficulties. Originally trading from offices in Reading and has added London, Manchester, Bristol and Derby and has associate offices in Grantham and Stockton on Tees. Headquartered in Reading, United Kingdom, Stuart Security Limited is engaged in public security services. SYLHET FOODS: Creditors Pass Winding Up Resolution -------------------------------------------------- Sylhet Foods Limited passed on May 19 resolutions for voluntary liquidation together with the appointment of Jamie Taylor of Begbies Traynor as Liquidator. The company can be reached at: Sylhet Foods Limited Unit 14-16 Staffa Road Cromwell Industrial Estate London E10 7QZ United Kingdom Tel: 020 8532 8270 TECHNICAL COLOUR: Hires Administrators from Begbies Traynor ----------------------------------------------------------- David Moore and Donald Bailey of Begbies Traynor were appointed joint administrators of Technical Colour Services Limited (Company Number 4343078) on July 7. 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 Clwyd, United Kingdom, Technical Colour Services Limited manufactures masterbatch plastics. U.K. CONSTRUCTION: Hires UHY Hacker Young as Administrators ----------------------------------------------------------- Robert Edward Caunce Cook and Nicholas Andrew Hancock of UHY Hacker Young were appointed joint administrators of U.K. Construction Services Limited (Company Number 04553094) on July 14. The administrators can be reached at: UHY Hacker Young St. James Building 79 Oxford Street Manchester Greater Manchester M1 6HT United Kingdom Tel: 0161 236 6936 Fax: 0161 228 0117 E-mail: e.cook@uhy-uk.com Headquartered in Essex, United Kingdom, U.K. Construction Services Limited is engaged in general construction and civil engineering. UNIVERSAL AERIAL: Brings In KPMG to Administer Assets ----------------------------------------------------- Myles Antony Halley and Jane Bronwen Moriarty of KPMG LLP were appointed joint administrators of Universal Aerial Platforms Limited (Company Number 01575678) on July 14. 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. Headquartered in London, United Kingdom, Universal Aerial Platforms Limited hires access platforms and lifts. V R FROZEN: Nominates Joint Liquidators from Abbott Fielding ------------------------------------------------------------ Nedim Ailyan and Andrew Tate of Abbott Fielding were nominated Liquidator of V R Frozen Foods Limited after creditors decided to voluntarily wind up the company. The company can be reached at: V R Frozen Foods Limited Unit A Gold Star Distribution Centre Neptune Close Medway City Estate Rochester Kent ME2 4LT United Kingdom Tel: 01634 290 432 Fax: 01634 290 926 WHITE TOWER: Fitch Keeps BB Rating on GBP2.5-Mln Class E Notes -------------------------------------------------------------- Fitch Ratings upgraded White Tower 2004-1 PLC's Class B and C floating-rate notes due 2013 and affirmed others. -- GBP63.9 million Class A (XS0188956410) affirmed at AAA; -- GBP16 million Class B (XS0188957657) upgraded to AAA from AA; -- GBP9.3 million Class C (XS0188958036) upgraded to AA from A; -- GBP9.9 million Class D (XS0188958895) affirmed at BBB; and -- GBP2.5 million Class E (XS0188959356) affirmed at BB. The upgrades reflect the significantly improved credit enhancement following the prepayment of three of the five original loans and the sequential allocation of the principal as well as the overall good performance of the transaction. The Millbank loan accounts for 86% of the current pool, compared to 43% at closing. The Millbank Tower, an office building in Central London, is let to multiple tenants, many of which are government-related and therefore highly rated. The property is currently 16% vacant, partly due to refurbishment and modernization. The GBP90 million loan started to amortize in October 2005 and currently stands at GBP87.8 million, improving the loan-to-value to 72% from 74%. Despite the substantial vacancy rate, the interest coverage ratio improved to 1.8x in July 2006 from 1.3x in July 2004. Millbank is scheduled to mature in 2010. The GBP16.3 million Elm House loan has been paid down to GBP13.8 million as of July 2006, improving the LTV to 72% from 75%. Since closing, the ICR improved slightly to 1.9x from 1.8x. The Elm House property is fully let to a government entity until 2012. The loan will mature in 2008. Although the concentration risk increased in terms of largest loan (86%), property locations (100% London) and property type (100% offices), the good performance of the two remaining loans, the strong tenants in both properties and the improved credit enhancement warrant an upgrade of the notes as described above. WOW LIMITED: Creditors Opt to Voluntar Liquidation -------------------------------------------------- Creditors of Wow Limited opted on May 16 to voluntarily liquidate the company's assets. Andrew McTear of McTear Williams & Wood was appointed Liquidator. The company can be reached at: Wow Limited 9 Swan Lane Norwich Norfolk NR2 1HZ United Kingdom Tel: 01603 766 977 * Fitch Says Central Europe's Oil Refineries Face Supply Risk ------------------------------------------------------------- Fitch Ratings disclosed that Central European oil refining companies remain exposed to crude oil supply risk given their strong dependence on deliveries from Russia. While recent supply problems due to a leak in the northern branch of the Druzhba pipeline were only experienced by Lithuanian refinery Mazeikiu Nafta AB (rated B+, Rating Watch Positive), most other refineries in the CE region are dependent on pipeline supply from Russia. This includes PKN Orlen S.A. (rated 'BBB', Rating Watch Negative) and Grupa Lotos in Poland and MOL's refineries in Hungary and Slovakia. While all these refineries are able to continue operations in the event of severe crude delivery disruptions from Russia given their access to alternative sources of crude, such a scenario would harm their refining margins. This is the case with MN, which is now purchasing Russian crude oil from the Primorsk terminal close to St. Petersburg and transporting it by tankers to its Butinge terminal in Lithuania. This results in higher transportation costs when compared to deliveries by pipeline. If supplies of Russian crude oil by pipeline to MN are not resumed within the next few weeks, this could lead one to conclude that political rather than technical reasons are to blame for the supply disruption, as the Lithuanian refinery was recently acquired by Polish PKN and not by a Russian oil company. CE refineries' dependence on Russian crude is a combination of historical reasons and refinery location on the pipeline from Russia. This is also driven by increasing price advantage of Russian crude oil, which is sold at a discount to Brent oil (as much as US$5/bbl in Q206). It is Fitch's view that a mixture of political and economic reasons are behind the interruptions of Russian crude oil and gas supply to Central Europe experienced in the past two years. The most notable examples were the suspension of crude oil supply under long-term contracts by OAO Yukos in late 2004 and lower gas supply to the European Union from Russia in January 2006. However, Fitch views that intentional long-term supply disruption to CE refineries is unlikely given that Russian oil companies remain interested in exporting crude oil to this region, given its price advantage over domestic sales and difficulties to redirect such significant amounts of crude oil into other export routes. Fitch reflects the supply risk in its credit ratings for CE refineries. This is especially the case with pure refining and marketing companies, such as MN or PKN, which do not operate in oil exploration and production. Fitch notes that neither PKN nor MOL has experienced any significant disruptions in crude oil supply from Russia in the past 10 years. ********* 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 Zamesa 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 * * *