/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060906.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, September 6, 2006, Vol. 7, No. 177 Headlines A U S T R I A CULT: Salzburg Court Orders Business Shutdown DE ICCO: Claims Registration Period Ends September 7 DEMCO: Vienna Court Orders Business Shutdown F.U.I. STRAUSS: St. Poelten Court Shuts Down Business FEROO: Creditors' Meeting Slated for October 3 FUIOR: Creditors' Meeting Slated for October 4 HAUSER FRAN: Creditors' Meeting Slated for October 4 HELMUT FINK: Claims Registration Period Ends September 27 HOLZCONZEPT TISCHLEREI: Property Manager Claims Lack of Assets KADLETZ: Claims Registration Period Ends September 27 W.M.P.: Creditors' Meeting Slated for September 14 F R A N C E ATARI INC: Nasdaq Global Market Issues Delisting Notice RHODIA S.A.: Improved Performance Spurs Moody's to Lift Ratings G E R M A N Y DRESDNER BANK: Fitch Affirms Individual Rating at C GASTSTATTENBETRIEBE ANDREAS: Claims Registration Ends Sept. 14 HYBRI FITNESS: Claims Registration Ends September 15 KUECHEN DROSS: Claims Registration Ends September 8 KUEHNLE KG: Claims Registration Ends September 7 LEITNER BAUUNTERNEHMUNG: Creditors' Meeting Slated for Sept. 27 LEUNASPAN GMBH: Claims Registration Ends September 18 LSB MEDIZINISCHE: Claims Registration Ends September 15 P-BAU GMBH: Claims Registration Ends September 13 PFLEIDERER AG: Hikes Second-Quarter EBITDA to EUR90.1 Million SEMA LANDTECHNIK: Claims Registration Ends September 8 TUERKOM HANDELSGESELLSCHAFT: Claims Registration Ends Sept. 22 TUI AG: Denies Report on Hapag-Lloyd Sale Talks TUI AG: Boards Discuss Strategies for Tourism & Shipping Units H U N G A R Y CLOROX COMPANY: Equity Deficit Narrows to US$156 Mln at June 30 K A Z A K H S T A N AITUR KA: Creditors Must File Claims by Oct. 4 ASIA SOFTWARE: Creditors Must File Claims by Oct. 4 DOS MARKET: Proof of Claim Deadline Slated for Oct. 4 ELEKTROSETPROECT: Proof of Claim Deadline Slated for Oct. 4 PAVLODAR -TEHSERVIS: Claims Registration Ends Oct. 4 REFRAIL: Claims Registration Ends Oct. 4 STROYTRANSSERVIS LTD: Creditors' Claims Due Oct. 4 SV-SERVICE: Creditors' Claims Due Oct. 4 TELMANSKAYA AGROPROMTEHNIKA: Creditors' Claims Due Oct. 4 K Y R G Y Z S T A N ISSYK-KUL NARYN: Public Auction Scheduled for Sept. 22 L U X E M B O U R G TMK CAPITAL: Issues Eurobond to Fund Loan to Parent Company N E T H E R L A N D S GETRONICS N.V.: Banks Cancel EUR30-Mln Cut on Credit Facility R U S S I A AGRO-PROM-KHIMIYA: Kostroma Court Starts Bankruptcy Supervision AGRO-TEKH-SERVICE: Court Names S. Bogay as Insolvency Manager AKSENIKHINSKOYE: Court Names. V. Poroshkov as Insolvency Manager BAYKALSKOYE WOOD: Court Names V. Safonov as Insolvency Manager BRYANSKIY WOOD: Court Names S. Suvorov as Insolvency Manager BUILDER: Tver Court Names L. Mopchalina as Insolvency Manager CERAMICS: Court Names M. Kolesnikov as Insolvency Manager CLOROX COMPANY: Equity Deficit Narrows to US$156 Mln at June 30 DISCOUNT BANK: Central Bank Revokes License for Violations GARMENT FACTORY: Bankruptcy Hearing Slated for Oct. 5 GAS-COM: Tula Court Names T. Alekseeva as Insolvency Manager GAZPROM OAO: Completes Revamp of Orenburggazprom Helium Plant HYDRO-COAL: Moscow Court Names A. Sorokin as Insolvency Manager KUBAN: Krasnodar Court Starts Bankruptcy Supervision KUVSHINOVO-AGRO-PROM-KHIMIYA: Bankruptcy Supervision Starts MARBLE: Krasnodar Court Names K. Dovbenko as Insolvency Manager MEDYAKOVO: Novosibirsk Court Starts Bankruptcy Supervision NOVAYA LYADA: Tambov Court Starts Bankruptcy Supervision ORENBURG-ALCO: Court Names N. Tokarev as Insolvency Manager PACKAGE: Vologda Bankruptcy Hearing Slated for Nov. 23 PENZENSKIY FACTORY: Penza Court Starts Bankruptcy Supervision RAINBOW: Kostroma Court Names T. Litvinova as Insolvency Manager ROSNEFT OAO: Inks Pipeline Construction Deal with TNK-BP RUSS-AVIA: Moscow Court Names P. Tumbasov as Insolvency Manager RYAZHSKAYA POULTRY: S. Kozlovtsev to Manage Insolvency Assets SEL-KHOZ-TEKHNIKA: S. Osipova to Manage Insolvency Assets SEL-KHOZ-TEKHNIKA: Court Names Z. Orlova as Insolvency Manager SIB-OIL-PROM: Court Names O. Matveeva as Insolvency Manager TERRA: Arkhangelsk Court Names V. Zakirov as Insolvency Manager TMK OAO: TMK Capital Issues Eurobond to Fund Loan to Parent TMK OAO: Uncertain Financial Structure Cues S&P to Put B+ Rating TNK-BP: Inks Pipeline Construction Deal with OAO Rosneft TROITSKOYE: Orenburg Bankruptcy Hearing Slated for Oct. 17 VASYURINSKIY FACTORY: E. Tkhakushinov to Manage Assets VOSKHOD: Voronezh Court Names D. Kozlov as Insolvency Manager U K R A I N E FOOD PRODUCTS: Court Names Vitalij Gartenko as Liquidator FORUM BANK: Fitch Assigns B- Default Rating on Modest Earnings INDUSTRIAL TAS: Court Names S. Ivanenko as Insolvency Manager ROZDILSKIJ BRICK: Court Names Oleksandr Polishuk as Liquidator SHPOLA' BREAD: Court Names O. Zayichenko as Insolvency Manager SPECTRUM-PETROL: Court Names Ruslan Purij as Insolvency Manager SPIKA: Kyiv Court Starts Bankruptcy Supervision Procedure TRADE TAS: Kyiv Court Names S. Ivanenko as Insolvency Manager ZAKARPATNAFTA: Court Names Oleksandr Polishuk as Liquidator U N I T E D K I N G D O M 2 PM: Appoints Liquidator from Middleton Partners 3 PEAKS: Creditors Confirm Voluntary Liquidation 3D SOLUTIONS: Creditors Confirm Liquidators' Appointment A B COMPACTORS: Taps Paul James Fleming to Liquidate Assets A B DRURY: Brings In Joint Liquidators from Begbies Traynor A.P.C. LIMITED: Names Shay Lettice Liquidator ACADEMY FLOORING: Hires Joint Liquidators from Begbies Traynor ADAMS HARDWARE: Taps Liquidator from Roger Evans AFD LIMITED: Andrew Fender Leads Liquidation Procedure AUTOMOTIVE COMPONENTS: Appoints Joint Administrators from Vantis BAA PLC: Rejects Calls to Split U.K. Airport Company BALL CORP: Earns US$132.7 Million in Second Quarter 2006 BON VIVEUR: Appoints Joint Liquidators to Wind Up Business BRITANNIA TOOL: Names Joint Liquidators from Harrisons C C INTEX: Creditors Approve Liquidators' Appointment CAVENDISH SILKS: Hires Joint Liquidators from Vantis CELLCAST PLC: Posts GBP1.8 Million Net Loss in 2006 First Half CLOROX COMPANY: Equity Deficit Narrows to US$156 Mln at June 30 COLLINS & AIKMAN: Outlines Business Plan in Disclosure Statement COLLINS & AIKMAN: Exchanging Secured Debt for Stock Under Plan CORPORATE EVENT: Creditors Ratify Voluntary Liquidation CORPORATE PROJECT: Names Joint Liquidators from Begbies Traynor DEVIANT LIMITED: Appoints Ian Franses to Liquidate Assets ELECTRO FIXIT: Names Liquidator from B & C Associates EUROVENT PURIFYING: J. N. Bleazard Leads Liquidation Procedure FORD MOTOR: Looks at New Business Models to Ensure Recovery FORD MOTOR: Names Mulally Pres. & CEO, Ford Stays as Chairman GARRY HEINS: Appoints Joint Administrators from Bridgestones GENERAL MOTORS: Retail Sales Up 8% in August 2006 GLOBAL DEFENCE: Taps Begbies Traynor as Joint Administrators GRAHAM PACKAGING: Posts US$507,294 Partners' Deficit at June 30 HANDLING BY DESIGN: Appoints Liquidator from Price & Co. HARWAL LIMITED: Brings In Joint Administrators from Kroll HOUSE WORKS: Creditors Confirm Liquidator's Appointment INCO LTD: CVRD Gets Canadian & U.S. Antitrust OK for Inco Offer IRON ENGINEERING: Joint Liquidators Take Over Operations ISOFT GROUP: FY 2006 Net Losses Widen to GBP382.2 Million JFL AUTOMOTIVE: Appoints Joint Administrators from KPMG JOHN HAMPDEN: Creditors' Meeting Slated for September 11 KENNA TRANSPORT: Appoints Nigel Morrison to Liquidate Assets KRISPY KREME: Settles Suit with Sweet Traditions LA-DI-DA LIMITED: Calls In Joint Liquidators from Wilson Field LANCASHIRE ON-LINE: Taps Begbies Traynor to Administer Assets LOGISTICAL SERVICES: Taps Liquidators from Acre House LONTEC GROUP: Names Joint Liquidators to Wind Up Business MAMMOTH RETECH: Shay Lettice Leads Liquidation Procedure MARTLET NATURAL: Brings In Menzies to Administer Assets METROPOLITAN DESIGN: Calls In Liquidator from Carter Clark NEEDLER FINANCIAL: Brings In Liquidator from Maidment Judd NEWTON TRAINING: Taps Peter O'Hara to Liquidate Assets NORTHERN INDUSTRIAL: Names Joint Administrators from DTE OCCO COOLERS: Calls In Joint Liquidators from Begbies Traynor OSBORN & SIMMONS: Hires Joint Liquidators from Mercer & Hole PENDULUM PROPERTIES: Nominates Liquidator to Wind Up Business PINNACLE SHEET: Brings In Kroll to Administer Assets POWELL SECURITY: Eileen T. F. Sale Leads Liquidation Procedure PREMIER SPORTS: Creditors Confirm Liquidators' Appointment QUANSIS LIMITED: Creditors Ratify Liquidator's Appointment RANK GROUP: Mulls Job Cuts at Headquarters & Mecca Bingo Clubs RANK GROUP: Earns GBP9.6 Million in First Half of 2006 RANK GROUP: Cancels 550,000 Shares in Buy Back Program REFCO INC: Creditors Panel Wants Houlihan Lokey's Fees Increased RISSINGTON FLOORING: Brings In Liquidator from Bottomley & Co. ROSE PERFORMANCE: Creditors Ratify Liquidators' Appointment SABER LIMITED: Names Liquidator from Sinclair Harris SOUTHPORT ELECTRONICS: Taps Paul J. Fleming to Liquidate Assets SPECIAL RISKS: Appoints Joint Administrators from Bishop Fleming SYNERGY CARE: Appoints Clive Morris to Liquidate Assets T.D.A. DESIGN: Hires Frank Anthony Hatch to Liquidate Assets TAILORTECH LTD.: A. Evans Leads Liquidation Procedure TITANIUM METALS: Board Declares 6-3/4% Preferred Stock Dividend TRIDENT BUILDING: Hires Joint Administrators from Hurst Morrison U.K. CONSTRUCTION: Creditors' Meeting Slated for September 7 UNIVERSAL LOGISTICS: Names Kevin Goldfarb Liquidator VERITY APPOINTMENTS: Taps Begbies Traynor to Administer Assets WALLTALK GALLERIES: Hires Joint Liquidators from Wilson Field WENTWOOD MANAGEMENT: Taps Liquidator from BN Jackson Norton ********* ============= A U S T R I A ============= CULT: Salzburg Court Orders Business Shutdown --------------------------------------------- The Land Court of Salzburg entered an order on July 14 shutting down the business of LLC Cult (FN 184128b). Court-appointed property manager Guenther Auer determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Guenther Auer Kirchplatz 3 5110 Oberndorf bei Salzburg, Austria Tel: 06272/7087-0 Fax: 06272/7088-14 E-mail: office@greger-auer.at Headquartered in Salzburg, Austria, the Debtor declared bankruptcy on June 29 (Bankr. Case No. 23 S 42/06f). The Debtor's manager, Wolfgang Pichler represents the Debtor in the bankruptcy proceedings. DE ICCO: Claims Registration Period Ends September 7 ---------------------------------------------------- Creditors owed money by LLC De Icco (FN 220793x) have until Sept. 7 to file written proofs of claims to court-appointed property manager Ilse Korenjak at: Dr. Ilse Korenjak Casting House Road 6 1040 Vienna, Austria Tel: 512 21 02 Fax: 512 21 02-20 E-mail: office@buresch-korenjak.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Sept. 21 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria the Debtor declared bankruptcy on July 26 (Bankr. Case No. 5 S 109/06y). DEMCO: Vienna Court Orders Business Shutdown -------------------------------------------- The Trade Court of Vienna entered an order on July 14 shutting down the business of LLC DEMCO (FN 262251p). Court-appointed property manager Herbert Hochegger 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. Herbert Hochegger c/o Dr. Bernhard Eder Brucknerstrasse 4/5 1040 Vienna, Austria Tel: 505 78 61 Fax: 505 78 61 9 E-mail: office@hoch.co.at Headquartered in Vienna, Austria the Debtor declared bankruptcy on July 11 (Bankr. Case No. 5 S 98/06f). Bernhard Eder represents Dr. Hochegger in the bankruptcy proceedings. F.U.I. STRAUSS: St. Poelten Court Shuts Down Business ----------------------------------------------------- The Land Court of St. Poelten entered an order on July 14 shutting down the business of LLC F.U.I. Strauss & Co KG (FN 17570p). Court-appointed property manager Anton Hintermeier determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Anton Hintermeier Andreas Hofer-Strasse 8 3100 St. Poelten, Austria Tel: 02742/847 Fax: 02742/847-50 E-mail: stpoelten@lhup.at Headquartered in Grafendorf, Austria, the Debtor declared bankruptcy on July 13 (Bankr. Case No. 14 S 111/06y). FEROO: Creditors' Meeting Slated for October 3 ---------------------------------------------- Creditors owed money by Trade LLC FEROO (FN 223596v) are encouraged to attend the creditors' meeting at 9:15 a.m. on Oct. 3 to consider the final calculation. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 19 (Bankr. Case No. 4 S 7/06s). Viktor Igali-Igalffy serves as the court-appointed property manager of the bankrupt estate. Petra Diwok represents Dr. Igali-Igalffy in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Viktor Igali-Igalffy c/o Mag. Petra Diwok Landstrasser Main Street 34 1030 Vienna, Austria Tel: 713 80 57 Fax: 713 07 76 E-mail: vii@aon.at FUIOR: Creditors' Meeting Slated for October 4 ---------------------------------------------- Creditors owed money by LLC Fuior (FN 250448g) are encouraged to attend the creditors' meeting at 9:00 a.m. on Oct. 4 to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 24 (Bankr. Case No. 4 S 93/06p). Karl Schirl serves as the court-appointed property manager of the bankrupt estate. Markus Siebinger represents Dr. Schirl in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Karl Schirl c/o Mag. Markus Siebinger Krugerstrasse 17/3 1010 Vienna, Austria Tel: 513 22 31 Fax: 513 22 31-1 E-mail: dr.karl.schirl@der-rechtsanwalt.at HAUSER FRAN: Creditors' Meeting Slated for October 4 ---------------------------------------------------- Creditors owed money by Special Partnership Hauser Fran (FN 1030s) are encouraged to attend the creditors' meeting at 9:15 a.m. on Oct. 4 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 5 (Bankr. Case No. 4 S 4/06z). Annemarie Kosesnik- Wehrle serves as the court-appointed property manager of the bankrupt estate. Stefan Langer represents Dr. Kosesnik-Wehrle in the bankruptcy proceedings. The property manager and her representative can be reached at: Dr. Annemarie Kosesnik-Wehrle c/o Dr. Stefan Langer Oelzeltgasse 4/6 1030 Vienna, Austria Tel: 713 61 92 Fax: 713 61 92 22 E-mail: kanzlei@kosesnik-langer.at HELMUT FINK: Claims Registration Period Ends September 27 --------------------------------------------------------- Creditors owed money by LLC Helmut Fink (FN 122409p) have until Sept. 27 to file written proofs of claims to court-appointed property manager Stefan Kohlfuerst at: Mag. Stefan Kohlfuerst Marburgerkai 47 8010 Graz, Austria Tel: 0316/815454 Fax: 0316/815454-22 E-mail: kohlfuerst@hofstaetter.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:00 p.m. on Oct. 12 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Graz Hall L Room 230 2nd Floor Graz, Austria Headquartered in Graz, Austria the Debtor declared bankruptcy on July 28 (Bankr. Case No. 25 S 63/06m). Dr. Bernd Fritsch represents the Debtor in the bankruptcy proceedings. The Debtor's representative can be reached at: Dr. Bernd Fritsch Reitschulgasse 1 A-8010 Graz, Austria Tel: 0316/810030 HOLZCONZEPT TISCHLEREI: Property Manager Claims Lack of Assets -------------------------------------------------------------- Dr. Franz Hofbauer, the court-appointed property manager for LLC Holzconzept Tischlerei (FN 124723t), declared on July 31 that the Debtor's property is insufficient to cover creditors' claim. The Land Court of St. Poelten is yet to rule on the property manager's claim. Headquartered in Poechlarn, Austria, the Debtor declared bankruptcy on July 5 (Bankr. Case No. 14 S 104/06v). The Court dismissed Gerhard Taufner as property manager of the Debtor for valid reason. The new property manager can be reached at: Dr. Franz Hofbauer Main Place 6 3370 Ybbs a.d. Donau, Austria Tel: 07412/52731 Fax: 07412/52731-22 E-mail: dr.hofbauer@wibs.at KADLETZ: Claims Registration Period Ends September 27 ----------------------------------------------------- Creditors owed money by LLC Kadletz (FN 104826g) have until Sept. 27 to file written proofs of claims to court-appointed property manager Beate Holper at: Mag. Beate Holper c/o Dr. Susi Rathauscher Gonzagagasse 15 1010 Vienna, Austria Tel: 01/533 28 55 Fax: 01/533 28 55 28 E-mail: office@anwaltwien.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Oct. 11 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 2nd Floor Korneuburg, Austria Headquartered in Schwechat, Austria, the Debtor declared bankruptcy on July 31 (Bankr. Case No. 36 S 88/06t). Susi Rathauscher represents Mag. Holper in the bankruptcy proceedings. W.M.P.: Creditors' Meeting Slated for September 14 -------------------------------------------------- Creditors owed money by LLC W.M.P. (FN 261468m) are encouraged to attend the creditors' meeting at 9:30 a.m. on Sept. 14 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt, Austria Headquartered in Laxenburg, Austria, the Debtor declared bankruptcy on July 28 (Bankr. Case No. 10 S 66/06v). Viktor Igali-Igalffy serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Viktor Igali-Igalffy Bruehlerstrasse 63 2340 Moedling, Austria Tel: 02236/45240 Fax: 02236/45240-22 E-mail: vii@aon.at =========== F R A N C E =========== ATARI INC: Nasdaq Global Market Issues Delisting Notice ------------------------------------------------------- Atari Inc., has received a Nasdaq Staff Determination Letter stating that it failed to regain compliance with the Rule during the 180-day cure period and its securities are subject to delisting from the Nasdaq Global Market. The Company previously received a notice from The Nasdaq Stock Market advising that it was not in compliance with Nasdaq Marketplace Rule 4450(a)(5), which requires the Company to maintain a US$1 minimum bid price for its Common Stock. Nasdaq gave the Company 180 calendar days, or until Aug. 30, 2006, to regain compliance with the Rule. The Company intends to request an appeal hearing before the Nasdaq Listing Qualifications Panel and present its plan of compliance. The request for an appeal will stay the Staff's Determination and its securities will remain listed on the Nasdaq Global Market until the Panel issues its decision following the hearing. 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 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. * * * 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. RHODIA S.A.: Improved Performance Spurs Moody's to Lift Ratings --------------------------------------------------------------- Moody's Investor's Service upgraded all ratings of Rhodia S.A. by one notch. The Outlook is stable. The rating action reflects an improvement in Rhodia's operating performance over recent quarters to 1H 2006 as well as the stability of the company's liquidity, with no major repayments in 2006 and 2007. The strengthened operating performance is now being reflected in increased cash flows and lower leverage; at the end of 2Q 2006, Rhodia reported LTM Total Adjusted Debt / EBITDA at x5.5, and LTM RCF / Net Adjusted Debt close to 7% compared to 4% at the same point in 2005. (Moody's includes pension deficit in the calculation of Adjusted Debt). The upgrade of the corporate family rating by one notch to B1 is supported by: -- improvements in the operating margins of the key divisions with a confirmed target of c.EUR 200 million additional fixed cost reductions planned over the period of 2006- 2008; -- successful divestment of a number of low- or negative- margin businesses and optimization of the company's portfolio; -- improvement in cash flow generation with the expectation that the Company is likely to move towards FCF break-even by the end of 2006; as well as -- stable medium-term liquidity position achieved through securing long-term bank financing for working capital needs and extending maturity profile of the outstanding debt. The corporate family rating continues to reflect: -- weakness of the Company's balance sheet, with relatively high absolute level of indebtedness (including pension liabilities) and reported negative equity; -- Rhodia's high exposure to oil-derived raw material prices; -- lack of track record in maintaining its pricing power in less favorable market conditions and challenges that a weaker economic environment may bring to achieving robust FCF generation; as well as -- structural exposure to USD/EUR exchange rate with c.49% of revenues derived outside of Europe. The stable outlook reflects Moody's expectation that Rhodia's performance will show improved resilience in 2006, supported by continuous demand and ability of the Company to transfer increases in raw material prices and maintain its margins. Moody's may upgrade the ratings if Rhodia continues to show sustainable improvement in its operations and margins, enabling a reduction in the leverage towards x4.5 on Total Adjusted Debt/ EBITDA basis and robust cash flow generation with FCF / Total Adjusted Debt sustained at mid-single digits. Ratings affected: * Rhodia S.A. -- Corporate Family Rating, upgraded from B2 to B1; -- Senior Unsecured ratings, upgraded from B3 to B2; and -- Senior Subordinated ratings, upgraded from Caa1 to B3. Headquartered in Paris, France, Rhodia S.A. is a diversified specialty chemicals group that generated consolidated Revenues of EUR5.08 billion and EUR2.63 billion in 2005 and first half of 2006, and EBITDA of EUR596 million in 2005 and EUR366 million in the first half of 2006. ============= G E R M A N Y ============= DRESDNER BANK: Fitch Affirms Individual Rating at C --------------------------------------------------- Fitch Ratings affirmed Dresdner Bank AG's ratings at Issuer Default A, Short-term F1, Individual C and Support 1. The Outlook on the Issuer Default rating remains Stable. Fitch has also affirmed the Long-term ratings of Dresdner's hybrid instruments Dresdner Funding Trust I, II, III, and IV (dated silent participations), HT1 Funding GmbH's perpetual Tier 1 securities and UT2 Funding PLC's dated Upper Tier 2 securities at A-. The IDR, Short-term and Support ratings are based on extremely high potential support from its parent Allianz AG (A+/Stable Outlook), Germany's largest insurance group, in case of need. Dresdner's Individual rating reflects the achievements of the bank's restructuring, especially in its loan book, and the efforts it has made to reduce its cost base. In addition, it reflects a focused business model and steady improvements with regard to recurrent revenues, but also the sluggish economy and the bank's still moderate underlying profitability. "All core businesses show good progress in terms of increased revenues," Sabine Bauer from Financial Institutions disclosed. "However, revenue generation remains a challenge for Dresdner as H106 revenue improvements are largely capital market-driven," she added. Adjusted for the unwound Institutional Restructuring Unit as well as for the IAS 39 effects, Dresdner's underlying revenues increased 27% yoy in H106. This resulted from significantly higher trading income and 14% yoy gain in net commissions. Commission income benefited from favorable capital markets in Q106 as income from its securities business (up 17% in H106), which makes up half of commission income, was the main driver for higher fee income. In H106 trading income made up about a quarter of operating revenue, with its positive momentum benefiting all product groups. Although around 90% of trading income is said to be client- driven, these revenues are in general more volatile. Net interest income decreased 3% due to lower dividend income and tighter lending spreads. The bank's margin on its operating loan business has declined, albeit gradually. Dresdner's operating return on average equity continued to improve to stand at 12.5% in H106 (8.2% in H105), driven by revenue growth and low loan impairment charges due to high releases. Fitch expects LICs to normalize over the next quarters and estimates that the ROAE would still have been around 11% on a standard risk cost basis in H106 (around 9% in 2005). The bank's cost-to-income ratio improved to 77% in H106 from a high 82% in 2005 but still underlines the need to continue growing revenues and actively manage its cost base. "The progress made in bancassurance and assurbanking, such as a 13.5% contribution from Dresdner's sales force to parent Allianz AG's new life insurance business in H106, reflects the improved integration between Dresdner and Allianz," Thomas von Luepke, Head of German Banking at Fitch disclosed. "However, we do not expect both areas to become major contributors to Dresdner's profit in the medium-term," Mr. Luepke concluded. Asset quality remains sound and loan impairment coverage satisfactory. At end-June 2006, Dresdner's reserve coverage ratio weakened slightly to 48%, excluding collateral, which is slightly below its peers. However, Dresdner's experience with NPL sales indicates that these were adequately provisioned for. Since mid-2005, Dresdner's Tier 1 ratio is calculated based on IFRS capital. Fitch's eligible capital/weighted risks ratio, which adjusts for deferred tax assets, goodwill, dated hybrids and revaluation reserves, has increased to above 8%, including the Tier 1 hybrid issued in July 2006, which is a comfortable level compared to peers. GASTSTATTENBETRIEBE ANDREAS: Claims Registration Ends Sept. 14 -------------------------------------------------------------- Creditors of Gaststattenbetriebe Andreas Schuster GmbH have until Sept. 14 to register their claims with court-appointed provisional administrator Winfrid Andres. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Sept. 29 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Area A 409 4th Floor Muehlenstrasse 34 40213 Duesseldorf, Germany The Court will also verify the claims set out in the administrator's report at 8:00 a.m. on Oct. 20 at the same venue. The District Court of Duesseldorf opened bankruptcy proceedings against Gaststattenbetriebe Andreas Schuster GmbH on Aug. 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gaststattenbetriebe Andreas Schuster GmbH Attn: Andreas Schuster, Manager Andreas Road 7/9 40213 Duesseldorf, Germany The administrator can be contacted at: Dr. Winfrid Andres New Customs Office 3 40221 Duesseldorf, Germany HYBRI FITNESS: Claims Registration Ends September 15 ---------------------------------------------------- Creditors of HYBRI Fitness GmbH have until Sept. 15 to register their claims with court-appointed provisional administrator Hans-Peter Lehner. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on Oct. 9 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Regensburg Room 105 Augustenstr. 5 Regensburg, 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 Regensburg opened bankruptcy proceedings against HYBRI Fitness GmbH on Aug. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: HYBRI Fitness GmbH Trade Area D 9 93059 Regensburg, Germany The administrator can be contacted at: Dr. Hans-Peter Lehner Ditthornstr. 5 93055 Regensburg, Germany Tel: 0941/640820-0 Fax: 0941/640820-10 KUECHEN DROSS: Claims Registration Ends September 8 --------------------------------------------------- Creditors of Kuechen Dross + Schaffer GmbH i.L. have until Sept. 8 to register their claims with court-appointed provisional administrator Hubert Ampferl. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Oct. 20 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Regensburg Room 105 Augustenstr. 5 Regensburg, 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 Regensburg opened bankruptcy proceedings against Kuechen Dross + Schaffer GmbH i.L. on Aug. 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kuechen Dross + Schaffer GmbH i.L. Trade Area D 19 93059 Regensburg, Germany The administrator can be contacted at: Dr. Hubert Ampferl Kumpfmuehler Str. 30 93051 Regensburg, Germany Tel: 0941/2807370 Fax: 0941/2807379 KUEHNLE KG: Claims Registration Ends September 7 ------------------------------------------------ Creditors of Kuehnle KG have until Sept. 7 to register their claims with court-appointed provisional administrator Wolfgang Illig. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Oct. 19 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stuttgart Hall 4 Ground Floor Hauffstr. 5 70190 Stuttgart, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Stuttgart opened bankruptcy proceedings against Kuehnle KG on Aug. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kuehnle KG Porschestr. 8 70435 Stuttgart, Germany The administrator can be contacted at: Wolfgang Illig Kriegerstr. 3 70191 Stuttgart, Germany Tel: 0711/2255830 LEITNER BAUUNTERNEHMUNG: Creditors' Meeting Slated for Sept. 27 --------------------------------------------------------------- The court-appointed provisional administrator for Leitner Bauunternehmung GmbH, Barbara Beutler, will present her first report on the Company's insolvency proceedings at a creditors' meeting at 9:30 a.m. on Sept. 27. The meeting of creditors and other interested parties will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 Munich, Germany The Court will also verify the claims set out in the administrator's report at 9:30 a.m. on Nov. 21 at the same venue. Creditors have until Oct. 10 to register their claims with the court-appointed provisional administrator. The District Court of Munich opened bankruptcy proceedings against Leitner Bauunternehmung GmbH on Aug. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Leitner Bauunternehmung GmbH Griesstr. 43 82239 Alling, Germany The administrator can be reached at: Barbara Beutler Schwanthalerstr. 32 80336 Munich, Germany Tel: 089/54511-0 Fax: 089/54511-444 LEUNASPAN GMBH: Claims Registration Ends September 18 ----------------------------------------------------- Creditors of LEUNASPAN GmbH have until Sept. 18 to register their claims with court-appointed provisional administrator Thomas Jacobs. Creditors and other interested parties are encouraged to attend the meeting at 10:15 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 Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle, 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 Halle-Saalkreis opened bankruptcy proceedings against LEUNASPAN GmbH on Aug. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: LEUNASPAN GmbH Attn: Werner Elmenthaler and Joachim Landmann, Managers Building 4613 06237 Leuna, Germany The administrator can be contacted at: Thomas Jacobs Tieckstrasse 3 04275 Leipzig, Germany Tel: 0341/303850 Fax: 0341/3038511 LSB MEDIZINISCHE: Claims Registration Ends September 15 ------------------------------------------------------- Creditors of LSB medizinische Labor-Service GmbH have until Sept. 15 to register their claims with court-appointed provisional administrator Rainer U. Mueller. Creditors and other interested parties are encouraged to attend the meeting at 8:45 a.m. on Oct. 4 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 162 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 LSB medizinische Labor-Service GmbH on Aug. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: LSB medizinische Labor-Service GmbH Attn: Siegfried Kaiser, Manager Sichelstr. 1 1/2 86179 Augsburg, Germany The administrator can be contacted at: Rainer U. Mueller Schiessstaettenstr. 15 86159 Augsburg, Germany P-BAU GMBH: Claims Registration Ends September 13 ------------------------------------------------- Creditors of P-Bau GmbH have until Sept. 13 to register their claims with court-appointed provisional administrator Lucas F. Floether. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on Oct. 11 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 Magdeburg Hall B Insolvency Department Liebknechtstrasse 65-91 39110 Magdeburg, 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 Magdeburg opened bankruptcy proceedings against P-Bau GmbH on Aug. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: P-Bau GmbH Attn: Karl-Heinz Preuss, Manager See 1 a 39365 Seehausen, Germany The administrator can be contacted at: Dr. Lucas F. Floether Halberstadter Str. 55 39112 Magdeburg, Germany Tel: 0391/5556840 Fax: 0391/5556849 E-mail: magdeburg@feigl.biz PFLEIDERER AG: Hikes Second-Quarter EBITDA to EUR90.1 Million ------------------------------------------------------------- MDAX-listed Pfleiderer AG (ISIN DE0006764749) released its financial results for the April-to-June period. Highlights -- Pfleiderer achieves best half-year results: EBITDA more than doubles to EUR90.1 million-- margin of 14.1 percent for Q2/06; -- excellent financial basis for further growth: equity ratio increases to 35.1 percent after capital increase and sale of Pfleiderer track systems -- integration of Kunz creates further earnings potential -- clearly improved cost structures already achieved in first half 2006; and -- Board of Management confirms targets for 2006 with revenues of EUR1.4 billion and EBITDA expected to rise to at least EUR200 million. "We have strongly improved our results again in the first half of 2006 and report a new record in revenues and EBITDA," declared Hans H. Overdiek, CEO of Pfleiderer AG. "Pfleiderer AG aims to achieve revenues of EUR1.4 billion and an EBITDA of at least EUR200 million in the current fiscal year. That means that our company will achieve the best ever results in its history in 2006," confirmed Mr. Overdiek. During the reporting period, the Group reported revenues of EUR344.4 million (+81.1 percent, y-o-y) in the period April to June, and an EBITDA of EUR48.4 million, which is 113.5 percent up against previous year's figure. EBITDA Margin Increases to over 14 Percent The EBITDA margin rose correspondingly to 14.1 percent for Q2/06, an increase of 2.2 percentage points compared to the same period last year. Overall, the Group has greatly improved its profitability in the first half of 2006, with revenues at 679.3 million euros (+77.5 percent y-o-y). EBITDA rose by 102.4 percent to 90.1 million euros. The EBITDA margin climbed in the first six months of 2006 to 13.3 percent (H1/05: EBITDA 44.5 million euros, margin 11.6 percent). The marked improvement in results over the previous year and compared to the previous quarter is driven by continuing strong business in the Western Europe and the growth markets of North America and Eastern Europe. In the Business Center Eastern Europe, in Q2/06 the EBITDA margin rose clearly compared to the first quarter, ending at 22.2 percent, so that the margin for the first six months of the current year increased to 19.2 percent. The Business Center North America profited in the last quarter from the positive effects of restructuring in the Panels segment, now completed. This led to an adjustment in capacity on the supply side and considerably improved cost structures. In line with this, the EBITDA margin increased in the second quarter to 14.5 percent. Good use was also made in the last quarter of additional revenue opportunities, which resulted when a competitor in North America stopped production for a protracted period following an explosion. Pfleiderer was able to react to the new market situation in North America at short notice, with production capacity in the Panel segment increased at one Canadian site. During the period January to June 2006, the EBITDA margin in North America increased to 13.4 percent in the second quarter, despite a stoppage in the Flooring segment due to investment in new plant which was still in effect in the second quarter. In the Business Center Western Europe, the EBITDA margin in the period April to June 2006 moved up from single digit number margin in the comparable period of the previous year to 12.8 percent. The new Kunz plants in Germany are reporting margins in excess of 15 percent and are much more profitable than the "old Pfleiderer" sites. Benchmark comparisons completed over the last few months show further potential to improve results in the latter sites, both in terms of operating and personnel costs. By the end of 2007, these sites should achieve their target margins of 15 percent. Development of EBIT Clearly Positive Earnings before interest and taxes (EBIT) in the Pfleiderer Group also continued to develop positively. In the period April to June 2006, EBIT for the Group rose by 158.1 percent y-o-y to 30.9 million euros (Q2/05: 12.0 million euros). The EBIT margin in the second quarter of 2006 is now standing at 9.0 percent (Q2/05: 6.3 percent). During the six-month reporting period EBIT rose to 53.5 million euros, compared to 22.6 million euros in the same period of the previous year. The EBIT margin came to 7.9 percent in the first half of 2006. The operative result for continued operations in the Pfleiderer Group (EBT) for the period April to June 2006 has also improved significantly, rising by 116 percent over the previous year to close at 16.6 million euros. During the first six months of the year, for its continued operations Pfleiderer AG achieved a pre- tax profit (EBT) of 25.3 million euros, compared to 15.3 million euros for the same period of the previous year. The tax rate for the Pfleiderer Group including deferred taxes came to 29.7 percent for the first six months of fiscal 2006, compared to 32.4 percent for the comparative period last year. However, the effective tax rate for the Group is well below this. Related to the first six month of fiscal 2006, the tax rate came in at 22.3 percent. Significant Increase in Net Income Overall, net income after taxes and minority interests for third party holdings in the Polish subsidiary Pfleiderer Grajewo increased to EUR46.1 million in the reporting period, compared to EUR7.3 million for the first six months of the previous year. Undiluted earnings per share for the Group rose to 96 eurocents (previous year: 17 eurocents), of which 22 eurocents per shares came from continued operations in the first half of the current fiscal year, compared to 8 eurocents in the comparable period of the previous year. That represents an increase of 175 percent compared to the same period in previous year -- and this despite the fact that the number of shares in circulation increased by 25 percent following the capital increase. Earnings per share from continued operations more than tripled in the quarter taken alone, rising from 4 eurocents in Q2/05 to 13 eurocents per share in the second quarter of 2006. Operating Cash Flow Reflects Strong Operating Performance The consolidated cash flow from the Group's operating activities rose strongly in the second quarter of 2006 by +70 percent q-o-q compared to Q1/06 (16.9 million euros). Cumulative operating cash flow for the Pfleiderer Group increased during the reporting period to EUR45.2 million, compared to EUR35.8 million in the comparative period of the previous year. Equity Ratio Increases to 35.1 Percent Following the successful sale of Pfleiderer track systems and the resulting cash flow, as well as the successful capital increase, equity rose as expected to EUR497.1 million (EUR274.2 million in the previous quarter). The equity ratio for the Group also improved significantly as a result, rising to 35.1 percent of the balance sheet total as of June 30, 2006. This figure stood at 19.1 percent at the end of fiscal 2005. This underlines just how much the Pfleiderer Group's financial basis has since improved. In line with this, net corporate indebtedness also fell to a total of EUR341.5 million (Q1/06: EUR651.6 million) as of balance sheet closing on June 30, 2006. As expected, the equity basis greatly strengthened in the period April to June 2006 with the Group's financial structure undergoing a sustained improvement, creating the basis for further earnings-led expansion. Board of Management of Pfleiderer AG confirms targets for 2006 as business on the engineered wood markets in Eastern and Western Europe and North America continues to develop stably, the Board of Management is confirming its targets for the full fiscal year 2006 of revenues of 1.4 billion euros and an EBITDA of at least 200 million euros. An average EBITDA margin of 14.3 percent is being targeted. Headquartered in Neumarkt, Germany, Pfleiderer AG -- http://www.pfleiderer.com/-- manufactures engineered woods and infrastructure products through its subsidiaries. The Company produces wood-based panels for furniture and interior fittings, track systems for urban and intercity rail networks, and a range of poles and towers for energy and commercial infrastructures. * * * As reported in the Troubled Company Reporter-Europe on March 16, Fitch Ratings affirmed Germany-based Pfleiderer AG's Issuer Default Rating at BB and Short-term rating at B. Fitch said the Outlook is Stable. SEMA LANDTECHNIK: Claims Registration Ends September 8 ------------------------------------------------------ Creditors of SEMA Landtechnik Vertriebsgesellschaft mbH have until Sept. 8 to register their claims with court-appointed provisional administrator Kaufmann Geiwitz. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 21 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Ravensburg Hall 3 Herrenstr. 42 88212 Ravensburg, 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 Ravensburg opened bankruptcy proceedings against SEMA Landtechnik Vertriebsgesellschaft mbH on Aug. 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SEMA Landtechnik Vertriebsgesellschaft mbH Attn: Sergei Malishenko, Manager Schwarzenbacher Road 5 88348 Bad Saulgau, Germany The administrator can be contacted at: Kaufmann Geiwitz Bahnhofstr. 39 89231 Neu-Ulm, Germany TUERKOM HANDELSGESELLSCHAFT: Claims Registration Ends Sept. 22 -------------------------------------------------------------- Creditors of TUERKOM Handelsgesellschaft mbH have until Sept. 22 to register their claims with court-appointed provisional administrator Josef Nachmann. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Oct. 24 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 Munich, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Munich opened bankruptcy proceedings against TUERKOM Handelsgesellschaft mbH on Aug. 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: TUERKOM Handelsgesellschaft mbH Lindwurmstrasse 11 80337 Munich, Germany The administrator can be contacted at: Josef Nachmann Theatinerstr. 32 80333 Munich, Germany Tel: 089/24217737 Fax: 089/24217738 TUI AG: Denies Report on Hapag-Lloyd Sale Talks ----------------------------------------------- TUI AG dismissed reports that the company's supervisory board will convene a meeting on Sept. 8 to discuss a possible sale of its Hapag-Lloyd shipping line, Maria Sheahan writes for Bloomberg News. Handelsblatt newspaper earlier cited unidentified sources that TUI is eyeing the sale of its shipping unit to focus more on its tourism business. Company spokesman Kuzey Esener denied the claim. "There's not going to be a TUI supervisory board meeting, but only a regularly scheduled Hapag-Lloyd supervisory board meeting to discuss the integration of CP Ships," Mr. Esener told Bloomberg. "Splitting off shipping is absolutely not a topic of discussion." TUI became the world's fifth largest shipper after buying CP Ships Ltd. for US$2 billion last year. Headquartered in Hanover, Germany, TUI AG -- http://www.tui-group.com/en-- is Europe's largest integrated tourism group and a leading provider of container shipping services, with sales of EUR18.2 billion in 2005. * * * As reported in TCR-Europe on Aug. 15, Moody's Investors Service placed on review for possible downgrade the Ba2/B1 ratings of TUI Aktiengesellschaft as a result of the company's announcement that the Shipping division's full-year earnings for 2006 will be impacted by higher operating costs and lower-than-expected freight rates. The ratings affected by the review are TUI's Ba2 Corporate Family Rating, the Ba2 Senior Unsecured Long-Term ratings, and the B1 Subordinated ratings. TUI AG: Boards Discuss Strategies for Tourism & Shipping Units -------------------------------------------------------------- The Executive Board of TUI AG informed the company's Supervisory Board about the Group's current and future business situation. The Executive Board and the Supervisory Board discussed the fundamental factors affecting the two divisions, Tourism and Shipping, together with future strategies and alternative courses of action for them. The conference took place against the background of a deterioration in exogenous market conditions in both areas of business, which is currently contributing to unsatisfactory results and an unsatisfactory assessment of TUI AG on the capital markets. Since 2002, the reduction in number of employees in the Tourism division by more than 6,000 employees and savings of EUR360 million have stabilized the earnings situation, however, was not enough to realize the results targets. With regards to the current competition situation significant price increases are hardly realizable. Tourism Division The Supervisory Board supports the initiatives, which have been presented by the Executive Board to improve profitability in the tourism and shipping divisions in a sustainable way. The essential initiatives include a reorientation of the management structure, with the management of Tourism for all source markets and the Aviation and Internet units being centralized under Board Member Peter Rothwell. In addition, operational competence in the management holding company will be strengthened by the appointment of Christoph Mueller as a Member of the Executive Board responsible for Controlling. Bart Brackx will in future be Divisional Director with responsibility for the source market West. In order to ensure that result targets in the Tourism division are met, even though margins remain under pressure, further efficiency improvements are being realized. This includes pushing ahead more vigorously with the cost-cutting programs that have already been initiated in all source markets and the accelerated expansion of the internet business. Furthermore, it has been decided to integrate TUI's two German air carriers, Hapagfly and Hapag-Lloyd Express. Further strategic options in the German aviation market are being examined. Shipping Division In the Group's Shipping division, the integration of CP Ships into Hapag-Lloyd is proceeding more rapidly than originally expected and has revealed additional potential for enhanced earnings, so that the Group is now realizing a major part of the synergies of EUR220 million a year already in 2007. In addition, first steps to reduce the amount of tied-up capital in the Group and the costs of central functions have been decided. Furthermore, financial reporting is to be reorganized. Details will be determined by December, when next years' planning is adopted, and will be announced in due time. After extensive consultation the Supervisory Board and the Executive Board agree that the current structure as a two-pillar Group generates value for the shareholders through the integration of CP Ships. A separation of Hapag-Lloyd during the current cyclic sector down-turn would jeopardize value. This cannot be in the interest of the Group's shareholders and employees. Should external conditions change, the Executive Board will present the Supervisory Board all aspects of a portfolio change. Headquartered in Hanover, Germany, TUI AG -- http://www.tui-group.com/en-- is Europe's largest integrated tourism group and a leading provider of container shipping services, with sales of EUR18.2 billion in 2005. * * * As reported in TCR-Europe on Aug. 15, Moody's Investors Service placed on review for possible downgrade the Ba2/B1 ratings of TUI Aktiengesellschaft as a result of the company's announcement that the Shipping division's full-year earnings for 2006 will be impacted by higher operating costs and lower-than-expected freight rates. The ratings affected by the review are TUI's Ba2 Corporate Family Rating, the Ba2 Senior Unsecured Long-Term ratings, and the B1 Subordinated ratings. ============= H U N G A R Y ============= CLOROX COMPANY: Equity Deficit Narrows to US$156 Mln at June 30 --------------------------------------------------------------- The Clorox Company filed its report on financial results for the fiscal year ended June 30, 2006, on Form 10-K, with the U.S. Securities and Exchange Commission on Aug. 25, 2006. Net sales in fiscal year 2006 increased 6% to US$4.6 billion compared to US$4.4 billion in the prior period. Volume increased at a rate of 1% as price increases impacted shipments. Contributing to the volume growth in the current year was the introduction of several new products and product improvements, and strong shipments of home-care products within Latin America. Net earnings were US$444 million for the fiscal year 2006 versus US$1.1 billion in the previous fiscal year. Gross profit increased 3% to US$1.96 billion in fiscal year 2006 from US$1.9 billion in fiscal year 2005, and decreased as a percentage of net sales to 42.2% in fiscal year 2006 from 43.2% in fiscal year 2005. At June 30, 2006, the Company's balance sheet showed US$3.6 billion in total assets and US$3.8 billion in total liabilities resulting in US$156 million of stockholders' deficit. The Company's stockholders' deficit at June 30, 2005, stood at US$553 million. Return on Invested Capital decreased approximately 60 basis points to 13.3% during fiscal year 2006 due to lower adjusted operating profit and higher invested capital. Adjusted operating profit includes US$36 million of pretax incremental costs related to historical stock option compensation expense and the former chairman and chief executive officer's health- related retirement, which lowered ROIC by 60 basis points. Invested capital increased due to an increase in other assets as a result of the Company recording a net pension asset at June 30, 2006, compared to a net pension liability at June 30, 2005, for its domestic plan. Cash and cash equivalents for the fiscal year ended June 30, 2006 decreased to US$192 million from US$293 million in the prior fiscal year. A full-text copy of the Company's management's discussion and results of operations may be viewed at no charge at http://ResearchArchives.com/t/s?1099 Headquartered in Oakland, California, The Clorox Company -- http://www.thecloroxcompany.com/-- provides household cleaning products and reaches beyond bleach. Although best known for bleach (leader worldwide), Clorox makes laundry and cleaning items (Formula 409, Pine-Sol, Tilex), cat litter (Fresh Step), car care products (Armor All, STP), the Brita water- filtration system (in North America), and charcoal briquettes (Kingsford). The company has locations worldwide, including Hungary, Russia and the United Kingdom. =================== K A Z A K H S T A N =================== AITUR KA: Creditors Must File Claims by Oct. 4 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Astana declared LLP Aitur Ka insolvent. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Oct. 4 to submit written proofs of claim at: LLP Aitur Ka Valihanov Str. 71-68 Astana, Kazakhstan Tel: 8 (3172) 21-48-16 ASIA SOFTWARE: Creditors Must File Claims by Oct. 4 --------------------------------------------------- LLP Asia Software System declared insolvency. Creditors have until Oct. 4 to submit written proofs of claim at: LLP Asia Software System Jeltoksan Str. 177a-7 Almaty, Kazakhstan DOS MARKET: Proof of Claim Deadline Slated for Oct. 4 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Dos Market insolvent. Creditors have until Oct. 4 to submit written proofs of claim at: LLP Dos Market Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan ELEKTROSETPROECT: Proof of Claim Deadline Slated for Oct. 4 ----------------------------------------------------------- LLP Network Project Elektrosetproect declared insolvency. Creditors have until Oct. 4 to submit written proofs of claim at: LLP Network Project Elektrosetproect Kopernik Str. 92 Almaty, Kazakhstan PAVLODAR -TEHSERVIS: Claims Registration Ends Oct. 4 ---------------------------------------------------- LLP Pavlodar -Tehservis declared insolvency. Creditors have until Oct. 4 to submit written proofs of claim at: LLP Pavlodar -Tehservis Krupskaya Str. 76 Pavlodar Pavlodar Region Kazakhstan REFRAIL: Claims Registration Ends Oct. 4 ---------------------------------------- The Specialized Inter-Regional Economic Court of Astana declared LLP Refrail insolvent. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Oct. 4 to submit written proofs of claim at: LLP Refrail Valihanov Str. 71-68 Astana, Kazakhstan Tel: 8 (3172) 21-48-16 STROYTRANSSERVIS LTD: Creditors' Claims Due Oct. 4 -------------------------------------------------- LLP Stroytransservis Ltd. declared insolvency. Creditors have until Oct. 4 to submit written proofs of claim at: LLP Stroytransservis Ltd. Satpaev Str.192 Makat Makat District Atyrau Region Kazakhstan SV-SERVICE: Creditors' Claims Due Oct. 4 ---------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP SV-Service insolvent on July 12. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Oct. 4 to submit written proofs of claim at: LLP SV-Service Micro District 27, 15-18 Aktau Mangistau Region Kazakhstan Tel: 8 (3292) 41-83-94 TELMANSKAYA AGROPROMTEHNIKA: Creditors' Claims Due Oct. 4 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Telman Agroindustrial Technics Telmanskaya Agropromtehnika insolvent. Creditors have until Oct. 4 to submit written proofs of claim at: LLP Telmanskaya Agropromtehnika Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan =================== K Y R G Y Z S T A N =================== ISSYK-KUL NARYN: Public Auction Scheduled for Sept. 22 ------------------------------------------------------ The Issyk-kul Naryn Territorial Department of State Property will auction state properties to the public at 1:00 p.m. on Sept. 22 at: Building of Issyk-kul Naryn Territorial Department of State Property Baetova Str. 66 Cholpon-Ata, Kyrgyzstan The assets for sale comprise of two lots, which are part of head conduits located at: Kyzyl-Ompol Ton District Issyk-Kul Region Kyrgyzstan The entity has declared a KGS10,422,000 starting price for the properties. Interested bidders have until 4:00 p.m. on Sept. 21 to deposit an amount equivalent to 10% of the starting price to the settlement account of: The Issyk-kul Naryn Territorial Department of State Property Settlement Account No. 8164172080101001/403104103 Settlement and Saving Company Cholpon-Ata, Kyrgyzstan BIK 129019 Participants may submit their bids to: The Issyk-kul Naryn Territorial Department of State Property Baetova Str. 66 Cholpon-Ata, Kyrgyzstan Tel: (+996 3943) 4-29-21 =================== L U X E M B O U R G =================== TMK CAPITAL: Issues Eurobond to Fund Loan to Parent Company ----------------------------------------------------------- OAO TMK confirmed its intention to proceed with the offering of loan participation notes. These would be issued by a Luxembourg special purpose company, TMK Capital S.A., and the proceeds of the issuance will be used to fund a loan to OAO TMK. OAO TMK, Russia's largest pipe producer, intends to loan the proceeds from the placement of loan participation notes, together with other funds available to the company, to OAO TMK's principal shareholder, TMK Steel Ltd. This company plans to use this loan to increase its stake in OAO TMK. Following the repayment, OAO TMK in turn plans to use these funds to finance its strategic investment program. Under OAO TMK's strategic investment program, OAO plans to make capital expenditures of approximately US$ 1.2 billion through to 2010. The investment program is now more than 25% complete. The program is principally focused on: -- increasing the efficiency of its production processes; and -- improving the quality and range of seamless steel pipes. About TMK Headquartered in Moscow, Russia, OAO TMK -- http://www.tmkgroup.ru/eng/-- manufactures the entire product range of existing pipe products, which are used in the oil-and- gas industry, the chemical and petrochemical industries, the energy and machine-building industries, construction and the municipal housing economy, shipbuilding, aviation, space and rocket equipment, and agriculture. TMK has production facilities located in Russia and Romania which unite the four leading enterprises in the Russian pipe industry. Standard & Poor's Ratings Services assigned a 'B+' long-term corporate credit rating to OAO TMK. Standard & Poor's also assigned its 'B+' preliminary senior unsecured debt rating to TMK's proposed Eurobond, which will be issued by special-purpose vehicle TMK Capital S.A. ===================== N E T H E R L A N D S ===================== GETRONICS N.V.: Banks Cancel EUR30-Mln Cut on Credit Facility ------------------------------------------------------------- Getronics N.V. has been able to reach an agreement with its banking syndicate on the following amendment to its 2005 Syndicated Revolving Credit Facilities: -- following the announced sale of HRS, the Company has regained full lending commitment from its banks, without any further stipulation on other transactions; and -- as a result of this the earlier announced decrease with EUR30 million of the Syndicated Revolving Credit Facilities on Sept. 30, has been cancelled. This means that Getronics keeps full access to the Syndicated Credit Facilities of EUR284 million in total until maturity in March 2008, consisting of EUR225 million Revolving Credit Facilities and a Term Loan Facility of EUR59 million for acquisition purposes. Its Banking Syndicate consists of: -- ABN AMRO, -- Rabobank, -- ING Bank, -- SNS Bank and -- NIBC. "I am very happy with this agreement as it is a clear vote of confidence from our banking syndicate, which allows us -- after the sale of Italy and HRS - to fund our normal working capital needs going forward," CEO Klaas Wagenaar commented. About Getronics N.V. 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 Troubled Company Reporter - Asia Pacific, on Aug. 25, 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. The TCR-AP reported on Aug. 8, that 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. =========== R U S S I A =========== AGRO-PROM-KHIMIYA: Kostroma Court Starts Bankruptcy Supervision --------------------------------------------------------------- The Arbitration Court of Kostroma Region commenced bankruptcy supervision procedure on Municipal Enterprise Agro-Prom-Khimiya. The case is docketed under Case No. A 31-2704/2006-18. The Temporary Insolvency Manager is: V. Markov Post User Box 325 Krasnoobsk 630501 Novosibirsk Region Russia Tel: 348-53-06 The Debtor can be reached at: Municipal Enterprise Agro-Prom-Khimiya Vokzalnaya Str. 120 Manturovo 157300 Kostroma Region Russia AGRO-TEKH-SERVICE: Court Names S. Bogay as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Belgorod Region appointed Mr. S. Bogay as Insolvency Manager for CJSC Agro-Tekh-Service (TIN 3605000146). He can be reached at: S. Bogay Sredne-Moskovskaya Str. 6a Voronezh Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A08-2751/06-2 B. The Arbitration Court of Belgorod Region is located at: Narodnyj Avenue 135 308600 Belgorod Region Russia The Debtor can be reached at: CJSC Agro-Tekh-Service Okryabrskaya Str. 38 Volokonovka Belgorod Region Russia AKSENIKHINSKOYE: Court Names. V. Poroshkov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Novosibirsk Region appointed Mr. V. Poroshkov as Insolvency Manager for CJSC Aksenikhinskoye. He can be reached at: V. Poroshkov Post User Box 337 630102 Novosibirsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-136/06-10/2. The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: CJSC Aksenikhinskoye Aksenikha Krasnozerskiy Region Novosibirsk Region Russia BAYKALSKOYE WOOD: Court Names V. Safonov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Irkutsk Region appointed Mr. V. Safonov as Insolvency Manager for LLC Baykalskoye Wood Industry Enterprise. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A 19-12165/06-34. The Arbitration Court of Irkutsk Region is located at: Room 303 Gagarina Avenue 70 664025 Irkutsk Region Russia The Debtor can be reached at: LLC Baykalskoye Wood Industry Enterprise Magistralnyj 1st location 7-11 Kazachensko-Leninskiy Region 666504 Irkutsk Region Russia BRYANSKIY WOOD: Court Names S. Suvorov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Bryansk Region appointed Mr. S. Suvorov as Insolvency Manager for CJSC Bryanskiy Wood. He can be reached at: S. Suvorov Post User Box 183 Moscow 127018 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A09-2360/06-28. The Arbitration Court of Bryansk Region is located at: Room 602 Trudovoy Per. 5 Bryansk Region Russia The Debtor can be reached at Bryanskiy Wood Partizanskaya Str. 1-A Dyadkovo Bryansk Region Russia BUILDER: Tver Court Names L. Mopchalina as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Tver Region appointed Ms. L. Mopchalina as Insolvency Manager for OJSC Builder. She can be reached at: L. Mopchalina Office 205 Building 1 Permskaya Str. 11 Moscow Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-66-6678/2005. The Arbitration Court of Tver Region is located at: Room 7 Sovetskaya Str. 23b Tver Region Russia The Debtor can be reached at: OJSC Builder Kalinina Str 17 Zapadnaya Dvina Zapadnodvinskiy Region Tver Region Russia CERAMICS: Court Names M. Kolesnikov as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Vladimir Region appointed Mr. M. Kolesnikov as Insolvency Manager for CJSC Ceramics (TIN 3317000767). He can be reached at: M. Kolesnikov Office 802 Avtozavoskaya Str. 14/23 Moscow Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A11-3567/2006-K1-106B. The Arbitration Court of Vladimir Region is located at: Oktyabrskiy Pr. 14 Vladimir 600025 Russia The Debtor can be reached at: CJSC Ceramics 3rd Proezd Stanislavskogo 7 Kovrov Vladimir Region Russia CLOROX COMPANY: Equity Deficit Narrows to US$156 Mln at June 30 --------------------------------------------------------------- The Clorox Company filed its report on financial results for the fiscal year ended June 30, 2006, on Form 10-K, with the U.S. Securities and Exchange Commission on Aug. 25, 2006. Net sales in fiscal year 2006 increased 6% to US$4.6 billion compared to US$4.4 billion in the prior period. Volume increased at a rate of 1% as price increases impacted shipments. Contributing to the volume growth in the current year was the introduction of several new products and product improvements, and strong shipments of home-care products within Latin America. Net earnings were US$444 million for the fiscal year 2006 versus US$1.1 billion in the previous fiscal year. Gross profit increased 3% to US$1.96 billion in fiscal year 2006 from US$1.9 billion in fiscal year 2005, and decreased as a percentage of net sales to 42.2% in fiscal year 2006 from 43.2% in fiscal year 2005. At June 30, 2006, the Company's balance sheet showed US$3.6 billion in total assets and US$3.8 billion in total liabilities resulting in US$156 million of stockholders' deficit. The Company's stockholders' deficit at June 30, 2005, stood at US$553 million. Return on Invested Capital decreased approximately 60 basis points to 13.3% during fiscal year 2006 due to lower adjusted operating profit and higher invested capital. Adjusted operating profit includes US$36 million of pretax incremental costs related to historical stock option compensation expense and the former chairman and chief executive officer's health- related retirement, which lowered ROIC by 60 basis points. Invested capital increased due to an increase in other assets as a result of the Company recording a net pension asset at June 30, 2006, compared to a net pension liability at June 30, 2005, for its domestic plan. Cash and cash equivalents for the fiscal year ended June 30, 2006 decreased to US$192 million from US$293 million in the prior fiscal year. A full-text copy of the Company's management's discussion and results of operations may be viewed at no charge at http://ResearchArchives.com/t/s?1099 Headquartered in Oakland, California, The Clorox Company -- http://www.thecloroxcompany.com/-- provides household cleaning products and reaches beyond bleach. Although best known for bleach (leader worldwide), Clorox makes laundry and cleaning items (Formula 409, Pine-Sol, Tilex), cat litter (Fresh Step), car care products (Armor All, STP), the Brita water- filtration system (in North America), and charcoal briquettes (Kingsford). The company has locations worldwide, including Hungary, Russia and the United Kingdom. DISCOUNT BANK: Central Bank Revokes License for Violations ---------------------------------------------------------- The Central Bank of Russia cancelled the operating license of Moscow-based commercial Discount Bank over the latter's failure to comply with banking laws and the state bank's regulations, RIA Novosti says. The Central also revoked Discount Bank's license for violating money laundering and financing of terrorism laws. Discount Bank also failed to: -- comply with the CBR's reserve requirements; -- provide accurate financial statements; and -- identify its clients. Discount Bank has been placed under temporary administration until a receiver or liquidator is appointed, RIA Novosti cites the Central Bank. GARMENT FACTORY: Bankruptcy Hearing Slated for Oct. 5 ------------------------------------------------------ The Arbitration Court of Moscow Region will convene at 2:00 p.m. on Oct. 5 to hear the bankruptcy supervision procedure on CJSC Shaturskaya Garment Factory. The case is docketed under Case No. A41-K2-10690/06. The Temporary Insolvency Manager is: Y. Demidenko Post User Box 62 Stupino-5 Moscow Region Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: Garment Factory Sovetskaya Str. 46 Shatura Moscow Region Russia GAS-COM: Tula Court Names T. Alekseeva as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Tula Region appointed Ms. T. Alekseeva as Insolvency Manager for CJSC Gas-Com. She can be reached at: T. Alekseeva Arsenalnaya Str. 1D Tula 300002 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A68-229/B-06. The Debtor can be reached at: CJSC Gas-Com Apartment 51 Lenina Pr. 133 Tula Region Russia GAZPROM OAO: Completes Revamp of Orenburggazprom Helium Plant ------------------------------------------------------------- The Phase IV repair and reconstruction of the helium plant of OOO Orenburggazprom, a wholly owned subsidiary of OAO Gazprom, has been finished, symbolizing the end of revamp process. The formal ceremonies held to celebrate this event were led by Alexander Ryazanov, Deputy Chairman of Gazprom's Management Committee. The revamp made allows running at previous designed output providing an increase in production of several goods. During the revamp special attention has been given to safety and production reliability. Automatic operations control system, accident prevention system that monitors critical parameters and other innovations have significantly improved reliability and safety of equipment operation. OOO Orenburggazprom helium plant is a part of Orenburg gas complex for gas production and processing as well as the unique helium production facility in Russia and in Europe. The helium plant stopped operating because of an accident in August 2004. In September 2004 an emergency plan of plant reconstruction was approved. Phase I, II and III repair and reconstruction were completed in September 2004, April 2005, and May 2006 respectively. The revamp being completed Orenburggazprom design capacity enables to produce these annual amounts of major products: -- 340 thousand tons of ethane, -- 1 million tons of natural gas liquids, and -- 6.5 mcm of helium. About Gazprom Headquartered in Moscow, Russia, OAO Gazprom (RTS: GAZP; MICEX: GAZP; LSE: OGZD) -- http://www.gazprom.ru/eng-- produces 94% of the country's natural gas, controls 25% of the world's reserves, and is also the world's largest gas producer. It focuses on gas exploration, processing, transport, and marketing. Standard & Poor's Services raised on Jan. 17, 2006, its long-term corporate credit rating on OAO Gazprom to 'BB+' from 'BB'. * * * As reported in TCR-Europe on Jan. 18, Standard & Poor's Services raised its long-term corporate credit rating on OAO Gazprom to 'BB+' from 'BB'. As reported in the TCR-Europe on Oct 27, 2005, Fitch upgraded Gazprom International S.A. Series 1 US$1.25-billion structured export notes due Feb. 1, 2020 (XS0197695009) to 'BBB' from 'BBB-'. The upgrade follows Fitch's upgrade of OAO Gazprom's, the world's largest gas company, Senior Unsecured local and foreign currency to 'BB+' from 'BB', and a change in Gazprom's going concern assessment, which is now equivalent to a 'BBB' rating compared to 'BBB-' previously. HYDRO-COAL: Moscow Court Names A. Sorokin as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. A. Sorokin as Insolvency Manager for LLC Hydro-Coal (TIN 7714110890). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-20933/06-38-141 B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: LLC Hydro-Coal Building 1 Room 14 Leningradskiy Pr. 37a Moscow Russia KUBAN: Krasnodar Court Starts Bankruptcy Supervision ---------------------------------------------------- The Arbitration Court of Krasnodar Region commenced bankruptcy supervision procedure on OJSC Kuban. The case is docketed under Case No. A-32-9436/2005-27/285-B. The Temporary Insolvency Manager is: V. Kozmin Tovarnaya Str. 7 350033 Krasnodar Region Russia The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: OJSC Kuban Lenina Str. 10 Leningradskiy Region Krasnodar Region Russia KUVSHINOVO-AGRO-PROM-KHIMIYA: Bankruptcy Supervision Starts ----------------------------------------------------------- The Arbitration Court of Tver Region commenced bankruptcy supervision procedure on OJSC Kuvshinovo-Agro-Prom-Khimiya. The case is docketed under Case No. A66-4313/2006. The Temporary Insolvency Manager is: S. Kurochkin Post User Box 0620 Main Post Office 170100 Tver Region Russia The Arbitration Court of Tver Region is located at: Room 7 Sovetskaya Str. 23b Tver Region Russia The Debtor can be reached at: OJSC Kuvshinovo-Agro-Prom-Khimiya Mekhanizatorov Str. 33 Kuvshinovo 172110 Tver Region Russia MARBLE: Krasnodar Court Names K. Dovbenko as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Krasnodar Region appointed Mr. K. Dovbenko as Insolvency Manager for CJSC Marble. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-59823/2005-44/615-B. The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: CJSC Marble Aerodromnaya Str. 2/1 Mostovskiy Krasnodar Region Russia MEDYAKOVO: Novosibirsk Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Arbitration Court of Novosibirsk Region commenced bankruptcy supervision procedure on OJSC Medyakovo. The case is docketed under Case No. A45-11269/06-4/132. The Temporary Insolvency Manager is: V. Makarov Post User Box 325 Krasnoobsk 630501 Novosibirsk Region Russia Tel: 348-53-06 The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: OJSC Medyakovo Madyakovo Novosibirsk Region Russia NOVAYA LYADA: Tambov Court Starts Bankruptcy Supervision -------------------------------------------------------- The Arbitration Court of Tambov Region commenced bankruptcy supervision procedure on OJSC Novaya Lyada. The case is docketed under Case No. A64-2249/06-21. The Temporary Insolvency Manager is: V. Iradionov Voekhoz Novaya Lyada Tambov Region Russia The Debtor can be reached at: OJSC Novaya Lyada Voensovkhoz Tambov Region 392515 Russia ORENBURG-ALCO: Court Names N. Tokarev as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Orenburg Region appointed Mr. N. Tokarev as Insolvency Manager for OJSC Orenburg-Alco (TIN 5639003149). He can be reached at: N. Tokarev Ryabinovy Per. 5 Prigorodnyj Orenburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-8647/2005-14GK. The Arbitration Court of Orenburg Region is located at: 9th January Str. 64 Orenburg 460046 Russia The Debtor can be reached at: OJSC Orenburg-Alco (PSLVZ) Aerodromnaya Str. 3 Pervomayskiy Pervomayskiy Region Orenburg Region Russia PACKAGE: Vologda Bankruptcy Hearing Slated for Nov. 23 ------------------------------------------------------ The Arbitration Court of Vologda Region will convene at 3:30 p.m. on Nov. 23 to hear the bankruptcy supervision procedure on OJSC Package. The case is docketed under Case No. A13-2736/2006-22. The Temporary Insolvency Manager is: D. Suslin Bezymyannaya Str. 2 Cherepovets Vologda Region Russia The Debtor can be reached at: OJSC Package Borshodskaya Str. 48 Cherepovets Vologda Region Russia PENZENSKIY FACTORY: Penza Court Starts Bankruptcy Supervision ------------------------------------------------------------- The Arbitration Court of Penza Region commenced bankruptcy supervision procedure on OJSC Penzenskiy Factory of Reinforced- Concrete Goods. The case is docketed under Case No. A49-2905/ 2006-2766/10. The Temporary Insolvency Manager is: M. Presnyakova Baydukova Str. 67 Penza Region Russia The Arbitration Court of Penza Region is located at: Belinskogo Str. 2 440600 Penza Region Russia The Debtor can be reached at: OJSC Penzenskiy Factory of Reinforced-Concrete Goods Zakharova Str. 20 440600 Penza Region Russia RAINBOW: Kostroma Court Names T. Litvinova as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Kostroma Region appointed Ms. T. Litvinova as Insolvency Manager for CJSC Trading Company Rainbow. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A31-2859/2006-12. The Debtor can be reached at: CJSC Trading Company Rainbow Kalinovskaya Str. 40 Kostroma Region Russia ROSNEFT OAO: Inks Pipeline Construction Deal with TNK-BP -------------------------------------------------------- TNK-BP entered an agreement with OAO Rosneft Oil Co. to construct a permanent oil pipeline from the Verkhnechonskoye oil field in East Siberia to the Surgutneftegaz' Talakanskoye field from where oil from both fields will be supplied into the East Siberia-Pacific Ocean pipeline system. Discussions with Sugurtneftegaz are being conducted through OJSC Verkhnechonskneftegaz, the operating company for the VC field, pursuant to the terms of a Memorandum of Understanding signed by these companies. Agreement in principle with Transeft, the operator of the ESPO, has also been reached. TNK-BP and Rosneft are the major shareholders of VCNG, which holds the licence for development of VC, the largest oilfield in Irkutsk Oblast. Both companies have agreed to revise their earlier oil transportation project for pilot production from this field. This had envisaged building and operating a much longer and temporary pipeline from VC to a new rail terminal at Ust-Kut for the first three to five years of field development. Re-routing has enabled the change to the original plans and confirmation of scheduling works on the ESPO and the stated intention of Transneft to commission reversal of the Ust-Kut- alakan pipeline section. The Company confirms its intention to accelerate the construction of the supply pipeline from VC to align with Transneft's plans. Surveys along the proposed pipeline route are already underway by Verkhnechonskneftegaz. In the near future the company will conduct a tender among Russian design institutes for the right to develop the Feasibility Study to build the 120 km line to the cut-in point of the main ESPO. OJSC Verkhnechonskneftegaz was established in 2002 and holds a license to develop the Verkhnechonskoe oilfield. The company's shareholders are TNK-BP (62%), Rosneft (25%), and East Siberian Gas Company (11%). Verkhnechonskoe field (VC) is located in the Katanga District of the Irkutsk region, 1100 km north-east of Irkutsk and is the largest oilfield in the Irkutsk region. The field's reserves are expected to support production of seven to 10 million tons per year by 2010 -2011. The pilot development project currently in progress at the field includes drilling and testing wells and construction of field infrastructure required for full-scale field development. Total investment in the pilot stage of the project is estimated at US$200 million. About TNK-BP Headquartered in the British Virgin Islands, TNK-BP is one of the largest oil companies in Russia, jointly owned by BP Plc and Alfa Access/Renova. At year-end 2004, the group had just above 8 billion barrels of proved SEC (to economic life of fields) reserves and in the first 9 months of 2005 produced close to 1.56 million barrels of oil per day. TNK-BP generated revenues of US$14.3 billion in 2004. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft -- http://www.rosneft.ru/eng-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * As reported in TCR-Europe on Aug. 2, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Russia-based OJSC Oil Company Rosneft to 'BB' from 'B+'. S&P said the outlook is stable. RUSS-AVIA: Moscow Court Names P. Tumbasov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. P. Tumbasov as Insolvency Manager for CJSC Freight Agency Russ-Avia (TIN 7713188333). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-13754/06-78-66N. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Freight Agency Russ-Avia Dmitrovskoye Shosse 46 127238 Moscow Region Russia RYAZHSKAYA POULTRY: S. Kozlovtsev to Manage Insolvency Assets ------------------------------------------------------------- The Arbitration Court of Ryazan Region appointed Mr. S. Kozlovtsev as Insolvency Manager for LLC Ryazhskaya Poultry Farm. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A54-8126/2005 S20. The Arbitration Court of Ryazan Region is located at: Pochtovaya Str. 43/44 Ryazan Region Russia The Debtor can be reached at: LLC Ryazhskaya Poultry Farm F. Engelsa Str. 115 Ryazhsk Ryazan Region Russia SEL-KHOZ-TEKHNIKA: S. Osipova to Manage Insolvency Assets --------------------------------------------------------- The Arbitration Court of Samara Region appointed Ms. S. Osipova as Insolvency Manager for LLC Sel-Khoz-Tekhnika. She can be reached at: S. Osipova Gaya Str. 23a Orenburg Region Russia Tel./Fax: (3532) 78-38-36 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A55-3010/2006. The Debtor can be reached at: LLC Sel-Khoz-Tekhnika Bogatoe Bogatovskiy Region Samara Region 446630 Russia SEL-KHOZ-TEKHNIKA: Court Names Z. Orlova as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Novosibirsk Region appointed Ms. Z. Orlova as Insolvency Manager for CJSC Sel-Khoz-Tekhnika. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-7797/06-29/32. The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: CJSC Sel-Khoz-Tekhnika Leningradskaya Str. 113. Novosibirsk Region Russia SIB-OIL-PROM: Court Names O. Matveeva as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Moscow appointed Ms. O. Matveeva as Insolvency Manager for CJSC Sib-Oil-Prom (TIN 7717091607). She can be reached at: O. Matveeva Apartment 64 Building 1 Polotskaya Str. 29 Moscow 121351 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-24332/06-78-327B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Sib-Oil-Prom 1st Mytisinskaya Str. 3 Moscow Russia TERRA: Arkhangelsk Court Names V. Zakirov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Arkhangelsk Region appointed Mr. V. Zakirov as Insolvency Manager for CJSC Mining Company Terra. He can be reached at: V. Zakirov Lenina Pr. 77-311A 650066 Kemerovo Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A05-4400/2006-21. The Arbitration Court of Arkhangelsk Region is located at: Loginova Str. 17. 163069 Arkhangelsk Region Russia The Debtor can be reached at: CJSC Mining Company Terra Izhma Primorskiy Region Arkhangelsk Region Russia TMK OAO: TMK Capital Issues Eurobond to Fund Loan to Parent ----------------------------------------------------------- OAO TMK confirmed its intention to proceed with the offering of loan participation notes. These would be issued by a Luxembourg special purpose company, TMK Capital S.A., and the proceeds of the issuance will be used to fund a loan to OAO TMK. OAO TMK, Russia's largest pipe producer, intends to loan the proceeds from the placement of loan participation notes, together with other funds available to the company, to OAO TMK's principal shareholder, TMK Steel Ltd. This company plans to use this loan to increase its stake in OAO TMK. Following the repayment, OAO TMK in turn plans to use these funds to finance its strategic investment program. Under OAO TMK's strategic investment program, OAO plans to make capital expenditures of approximately US$ 1.2 billion through to 2010. The investment program is now more than 25% complete. The program is principally focused on: -- increasing the efficiency of its production processes; and -- improving the quality and range of seamless steel pipes. About TMK Headquartered in Moscow, Russia, OAO TMK -- http://www.tmkgroup.ru/eng/-- manufactures the entire product range of existing pipe products, which are used in the oil-and- gas industry, the chemical and petrochemical industries, the energy and machine-building industries, construction and the municipal housing economy, shipbuilding, aviation, space and rocket equipment, and agriculture. TMK has production facilities located in Russia and Romania which unite the four leading enterprises in the Russian pipe industry. Standard & Poor's Ratings Services assigned a 'B+' long-term corporate credit rating to OAO TMK. Standard & Poor's also assigned its 'B+' preliminary senior unsecured debt rating to TMK's proposed Eurobond, which will be issued by special-purpose vehicle TMK Capital S.A. TMK OAO: Uncertain Financial Structure Cues S&P to Put B+ Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term corporate credit rating to Russia-based pipe production company OAO TMK. Standard & Poor's also assigned its 'B+' preliminary senior unsecured debt rating to TMK's proposed Eurobond, which will be issued by special-purpose vehicle TMK Capital S.A. At the same time, 'ruA+' Russia national scale ratings were assigned to the company and its outstanding bonds. All ratings were immediately placed on CreditWatch with negative implications, pending clarification of the company's eventual balance sheet structure. "The ratings on TMK reflect the company's ambitious capital expenditure plans, improving but volatile margins, limited liquidity, and short track record as a combined group," said Standard & Poor's credit analyst Elena Anankina. "These factors are offset by TMK's robust market positions and the currently favorable market fundamentals for seamless and large-diameter welded pipes." At year-end 2005, TMK had RUR17.9 billion (US$622 million) debt (adjusted for postretirement benefits and guarantees), of which RUR12.5 billion was short-term debt. The 67% shareholder of the company, Dmitry Pumpyanskiy, is planning to increase his stake in TMK but details are undisclosed at this stage. Standard & Poor's believes this transaction will be largely financed by TMK, directly or indirectly. In addition to the Eurobond, TMK is planning an IPO in September or October 2006. The CreditWatch status reflects S&P's opinion that the rating could be lowered, likely by one notch, if the shareholder deal happens but refinancing with an IPO and longer-term debt does not occur in the second half of 2006. If the company's refinancing is successful or if the shareholder deal does not proceed, the ratings are likely to be affirmed. TNK-BP: Inks Pipeline Construction Deal with OAO Rosneft -------------------------------------------------------- TNK-BP entered an agreement with OAO Rosneft Oil Co. to construct a permanent oil pipeline from the Verkhnechonskoye oil field in East Siberia to the Surgutneftegaz' Talakanskoye field from where oil from both fields will be supplied into the East Siberia-Pacific Ocean pipeline system. Discussions with Sugurtneftegaz are being conducted through OJSC Verkhnechonskneftegaz, the operating company for the VC field, pursuant to the terms of a Memorandum of Understanding signed by these companies. Agreement in principle with Transeft, the operator of the ESPO, has also been reached. TNK-BP and Rosneft are the major shareholders of VCNG, which holds the licence for development of VC, the largest oilfield in Irkutsk Oblast. Both companies have agreed to revise their earlier oil transportation project for pilot production from this field. This had envisaged building and operating a much longer and temporary pipeline from VC to a new rail terminal at Ust-Kut for the first three to five years of field development. Re-routing has enabled the change to the original plans and confirmation of scheduling works on the ESPO and the stated intention of Transneft to commission reversal of the Ust-Kut- alakan pipeline section. The Company confirms its intention to accelerate the construction of the supply pipeline from VC to align with Transneft's plans. Surveys along the proposed pipeline route are already underway by Verkhnechonskneftegaz. In the near future the company will conduct a tender among Russian design institutes for the right to develop the Feasibility Study to build the 120 km line to the cut-in point of the main ESPO. OJSC Verkhnechonskneftegaz was established in 2002 and holds a license to develop the Verkhnechonskoe oilfield. The company's shareholders are TNK-BP (62%), Rosneft (25%), and East Siberian Gas Company (11%). Verkhnechonskoe field (VC) is located in the Katanga District of the Irkutsk region, 1100 km north-east of Irkutsk and is the largest oilfield in the Irkutsk region. The field's reserves are expected to support production of seven to 10 million tons per year by 2010 -2011. The pilot development project currently in progress at the field includes drilling and testing wells and construction of field infrastructure required for full-scale field development. Total investment in the pilot stage of the project is estimated at US$200 million. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft -- http://www.rosneft.ru/eng-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. About TNK-BP Headquartered in the British Virgin Islands, TNK-BP is one of the largest oil companies in Russia, jointly owned by BP Plc and Alfa Access/Renova. At year-end 2004, the group had just above 8 billion barrels of proved SEC (to economic life of fields) reserves and in the first 9 months of 2005 produced close to 1.56 million barrels of oil per day. TNK-BP generated revenues of US$14.3 billion in 2004. * * * As reported in TCR-Europe on Feb. 15, Fitch Ratings assessed TNK-BP International Ltd's Senior Unsecured rating at BB+ with Outlook Positive and Short-term B. Its US$700 million eurobond is affirmed at BB+. TNK-BP holds a strategic position as the second largest liquids producer in the Russian intergraded operating environment, accounting for approximately 18% of Russia's total crude oil production. TROITSKOYE: Orenburg Bankruptcy Hearing Slated for Oct. 17 ---------------------------------------------------------- The Arbitration Court of Orenburg Region will convene at 10:30 a.m. on Oct. 17 to hear the bankruptcy supervision procedure on OJSC Troitskoye. The case is docketed under Case No. A47-15479/2005-14GK. Temporary Insolvent Manager is: V. Kirzhaev Gaya Str. 23A Orenburg 460000 Russia Tel./Fax: 78-38-43 The Arbitration Court of Orenburg Region is located at: Krasnoznamennaya Str. 21 Matrosskiy Per. 12 Orenburg Russia The Debtor can be reached at: OJSC Troitskoye Sovetskaya Str. 33 Asekeevskiy Region Orenburg Region 461703 Russia VASYURINSKIY FACTORY: E. Tkhakushinov to Manage Assets ------------------------------------------------------ The Arbitration Court of Krasnodar Region appointed Mr. E. Tkhakushinov as Insolvency Manager for CJSC Vasyurinskiy Factory of Reinforced Concrete Goods. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-62234/2005-27/597-B. The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: CJSC Vasyurinskiy Factory of Reinforced Concrete Goods Vasyurinskaya St. Dinskoy Region Krasnodar Region Russia VOSKHOD: Voronezh Court Names D. Kozlov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Voronezh Region appointed Mr. D. Kozlov as Insolvency Manager for CJSC Agro Combine Voskhod. He can be reached at: D. KozlovRussia Studenetskaya Naberezhnaya Str. 20 Tambov Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A14-2891/2006 55/20b. The Arbitration Court of Voronezh Region is located at: Room 606 Srednemoskovskaya Str. 77 Voronezh Region Russia The Debtor can be reached at: Combine Voskhod Sakhzavodskaya Str. 22 Gribanovskiy Voronezh Region Russia ============= U K R A I N E ============= FOOD PRODUCTS: Court Names Vitalij Gartenko as Liquidator --------------------------------------------------------- The Economic Court of Donetsk Region appointed Vitalij Gartenko as Liquidator/Insolvency Manager for LLC Food Products Plant (code EDRPOU 30418386). He can be reached at: Vitalij Gartenko Shevchenko Boulevard 27 83017 Donetsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 13. The case is docketed under Case No. 5/111B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Food Products Plant Krasnoarmijsk 85300 Donetsk Region Ukraine FORUM BANK: Fitch Assigns B- Default Rating on Modest Earnings -------------------------------------------------------------- Fitch Ratings assigned Ukraine-based Forum Bank ratings of Issuer Default B- with a Stable Outlook, Short-term B, Support 5 and Individual D/E. The ratings reflect Forum's small size by international standards, modest earnings generation, relatively high borrower risk concentration in the loan book, risks stemming from rapid loan growth and potentially vulnerable liquidity. The ratings also acknowledge the bank's growing franchise, sound asset quality to date, continued industry diversification of the loan portfolio and limited market risks. Rating uplift might occur if the bank can demonstrate successful retail expansion without compromising its asset quality and profitability. A major improvement in its liquidity position may also have a positive effect on the ratings. However, downward pressure on the rating might come from significantly depressed profitability, deterioration of asset quality following rapid loan growth or the shareholders' failure to provide projected capital injections. Profitability has been modest to date, constrained by falling interest rates and rising operating costs, mainly associated with the network expansion. To improve the quality of services and expand retail penetration, Forum has embarked on a major growth drive through increasing the number of regional offices and the modernization of existing ones, which in the short to medium term will put additional pressure on profitability. The net interest margin might also come under further pressure from tighter competition from foreign entrants with cheaper funding sources. Asset quality has been adequate so far, as has the level of provisioning, although the latter may not cover the expected default rate, especially in an economic down-cycle. Forum's liquidity is vulnerable due to a lack of long-term resources but may improve following the new share issue and the Eurobond planned for later 2006. Forum was founded in 1994 as Lad-Credit Bank. In 1997, it was renamed Bank Forum. Initially it was a small bank, mostly providing cash management and lending services to a limited number of corporates, but since 2001 became a universal bank able to render a broader range of banking products to its clients. At end-June 2006, Forum was the 11th-largest Ukrainian bank by assets. Currently the bank's network comprises 140 points of sale and over 170 ATMs. The bank is majority-owned by Leonid Yurushev, a local businessman, and the members of his family. INDUSTRIAL TAS: Court Names S. Ivanenko as Insolvency Manager ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. S. Ivanenko as Liquidator/Insolvency Manager for LLC Industrial Company Tas (code EDRPOU 32254328). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 28. The case is docketed under Case No. 24/474-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 Industrial Company Tas Glibochitska Str. 17 Kyiv Region Ukraine ROZDILSKIJ BRICK: Court Names Oleksandr Polishuk as Liquidator -------------------------------------------------------------- The Economic Court of Donetsk Region appointed Oleksandr Polishuk as Liquidator/Insolvency Manager for OJSC Rozdilskij Brick Plant (code EDRPOU 31638894). He can be reached at: Oleksandr Polishuk Vorovskij Str. 5/1 83045 Donetsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 26. The case is docketed under Case No. 42/66 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: OJSC Rozdilskij Brick Plant Zarichna Str. 63 Artemivsk 84500 Donetsk Region Ukraine SHPOLA' BREAD: Court Names O. Zayichenko as Insolvency Manager -------------------------------------------------------------- The Economic Court of Cherkassy Region appointed Mr. O. Zayichenko as Liquidator/Insolvency Manager for OJSC Shpola' Bread Combine (code EDRPOU 5510987). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 4. The case is docketed under Case No. 01/26. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: OJSC Shpola' Bread Combine Artema Str. 10 Shpola Cherkassy Region Ukraine SPECTRUM-PETROL: Court Names Ruslan Purij as Insolvency Manager --------------------------------------------------------------- The Economic Court of Volinska Region appointed Ruslan Purij as Liquidator/Insolvency Manager for LLC Spectrum-Petrol (code EDRPOU 32269549). He can be reached at: Ruslan Purij a/b 8110 79066 Lviv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 8/36-B. The Economic Court of Volinska Region is located at: Voli Avenue 54-a 43010 Lutsk Volinska Region Ukraine The Debtor can be reached at: LLC Spectrum-Petrol President Grushevskij Avenue 30/151 430110 Lutsk Volinska Region Ukraine SPIKA: Kyiv Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC Spika. The case is docketed under Case No. 15/406-b. The Temporary Insolvency Manager is: V. Latskan Kikvidze Str. 17 A Kyiv Region Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Spika Kikvidze Str. 17 A Kyiv Region Ukraine TRADE TAS: Kyiv Court Names S. Ivanenko as Insolvency Manager ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. S. Ivanenko as Liquidator/Insolvency Manager LLC Trade Company Tas (code EDRPOU 32254312). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 28. The case is docketed under Case No. 24/473. 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 Company Tas Glibochitska Str. 17 Kyiv Region Ukraine ZAKARPATNAFTA: Court Names Oleksandr Polishuk as Liquidator ----------------------------------------------------------- The Economic Court of Donetsk Region appointed Oleksandr Polishuk as Liquidator/Insolvency Manager for LLC Zakarpatnafta (code EDRPOU 20466479). He can be reached at: Oleksandr Polishuk Vorovskij Str. 5/1 83045 Donetsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 26. The case is docketed under Case No. 42/67 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Zakarpatnafta Zarichna Str. 63 Artemivsk 84500 Donetsk Region Ukraine =========================== U N I T E D K I N G D O M =========================== 2 PM: Appoints Liquidator from Middleton Partners ------------------------------------------------- Stephen Patrick Jens Wadsted of Middleton Partners was appointed Liquidator of 2 PM Limited on June 2 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: 2 PM Limited Unit 1 13-15 Sunbeam Road London NW106JP United Kingdom Tel: 020 8965 9510 Web: http://www.2pm.co.uk/ 3 PEAKS: Creditors Confirm Voluntary Liquidation ------------------------------------------------ Creditors of 3 Peaks Limited confirmed on May 24 the resolutions for voluntary liquidation and the appointment of John Russell and Andrew Philip Wood of The P&A Partnership as Liquidators of the company. The company can be reached at: 3 Peaks Limited 300 Shalesmoor Sheffield South Yorkshire S3 8UL United Kingdom Tel: 0114 272 4500 3D SOLUTIONS: Creditors Confirm Liquidators' Appointment -------------------------------------------------------- Creditors of 3D Solutions Limited confirmed on May 24 the resolutions for voluntary liquidation and the appointment of Andrew Philip Wood and John Russell of The P&A Partnership as Liquidators of the company. The company can be reached at: 3D Solutions Limited Unit D Dunston Court Dunston Road Chesterfield Derbyshire S41 8NL United Kingdom Tel: 01246 267 788 A B COMPACTORS: Taps Paul James Fleming to Liquidate Assets ----------------------------------------------------------- Paul James Fleming of Parkin S. Booth & Co. was appointed Liquidator of A B Compactors Limited on June 15 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: A B Compactors Limited 20 Winmarleigh Street Warrington Cheshire WA1 1JY United Kingdom Tel: 01772 624 961 A B DRURY: Brings In Joint Liquidators from Begbies Traynor ----------------------------------------------------------- Timothy John Edward Dolder and Paul Michael Davis of Begbies Traynor (South) LLP were appointed Joint Liquidators of A B Drury Contracts Limited on May 25 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: A B Drury Contracts Limited Suit 9 Queens Road Wesley Chambers Aldershot Hampshire GU113DP United Kingdom Tel: 01252 322 323 A.P.C. LIMITED: Names Shay Lettice Liquidator --------------------------------------------- Shay Lettice was appointed Liquidator of A.P.C. (Eastern) Limited on May 30 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: A.P.C. (Eastern) Limited Unit 6 Faraday Place Thetford Norfolk IP243RG United Kingdom Tel: 01842 753 200 ACADEMY FLOORING: Hires Joint Liquidators from Begbies Traynor -------------------------------------------------------------- Timothy John Edward Dolder and Nicholas Roy Hood of Begbies Traynor (South) LLP were appointed Joint Liquidators of Academy Flooring Services Limited on May 26 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Academy Flooring Services Limited Unit 10 Dockley Road Industrial Estate Dockley Road London SE163SF United Kingdom Tel: 020 7394 8196 ADAMS HARDWARE: Taps Liquidator from Roger Evans ------------------------------------------------ Terry Christopher Evans of Rogers Evans was appointed Liquidator of Adams Hardware Stores (Southampton) Limited on June 9 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Adams Hardware Stores (Southampton) Limited 18 Victoria Road Southampton Hampshire SO199DX United Kingdom Tel: 023 8044 8531 AFD LIMITED: Andrew Fender Leads Liquidation Procedure ------------------------------------------------------ Andrew Fender of Sanderlings LLP was appointed Liquidator of AFD Limited on June 6 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: AFD Limited 9 Osprey Close Penarth South Glamorgan CF64 5FD United Kingdom Tel: 029 2070 5942 AUTOMOTIVE COMPONENTS: Appoints Joint Administrators from Vantis ---------------------------------------------------------------- Geoff Rowley and Frank Wessely of Vantis were appointed joint administrators of Automotive Components & Equipment Solutions Ltd. (Company Number 04762424) on Aug. 15. Headquartered in West Sussex, Vantis PLC -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. Headquartered in Berkshire, United Kingdom, Automotive Components & Equipment Solutions Ltd. sells automotive and automotive parts. BAA PLC: Rejects Calls to Split U.K. Airport Company -------------------------------------------------- BAA PLC dismissed calls for the break-up of its U.K. airports, arguing that a more fragmented ownership structure would undermine vitally needed investment in airport capacity. In a submission to the Office of Fair Trading study on the U.K. airports market, BAA urged the OFT to focus upon the true interests of consumers. "I fully understand why airlines like British Airways and Ryanair want to weaken airport operators and achieve greater control over prices and investment at the airports where they hold such powerful positions themselves, but the job of the competition authorities is to protect the longer term interests of all consumers," Stephen Nelson, BAA's Chief Executive, said. "The biggest problem facing U.K. air travelers is the shortage of airport capacity, especially in South East England. Failure to build new runway capacity will lead to gridlock, disappointed customers and significant loss to the national economy," Mr. Nelson added. "Despite this, some airlines want to break up BAA and impose even heavier price regulation. This have-it-both-ways proposal would be a poisonous cocktail for consumers. It risks setting back the much needed investment program which BAA is pursuing, to transform London's airports through projects like Heathrow Terminal 5, Heathrow East and the Stansted second runway," Mr. Nelson said. BAA's final submission to the OFT argues that the airports market is highly imperfect because most people use the airport closest to where they live, or which offers flights to their preferred destination. The market is also distorted by many unusual factors, such as airport slot allocation procedures and inter-governmental agreements on air services. BAA says that the threat to investment from break-up will outweigh any possible benefits to consumers in terms of choice, price or quality of service. BAA's U.K. airports are already among the cheapest in Europe in terms of landing charges, which are heavily subsidized by BAA's retail activities and regulated by the Civil Aviation Authority. "We are not saying that the current situation is perfect and we welcome the OFT's review, so long as it is wide-ranging and evidence-based," Mr. Nelson said. "The OFT needs to consider regulation as well as ownership structures. The evidence suggests that BAA has done a good job since privatization, in terms of security and safety, capacity, quality of service and price." About the Company Headquartered in London, England, BAA plc -- http://www.baa.com/ -- owns and operates seven airports in the United Kingdom, including Healthrow, the world's busiest international airport, and Budapest Airport, serving 700 destination by around 300 airlines. Its U.K. airports handle over 117 million international passenger during the 12 months up to October 2005. International passengers make up 81% of its total U.K. airport traffic. BAA had total assets of GBP15.2 billion and pre-tax profits of GBP757 million for the year ended March 31, 2006. * * * As reported in TCR-Europe on June 9, Moody's Investors Service downgraded to Ba1 from Baa3 the issuer rating of BAA Plc as well as the ratings for: -- GBP425 million convertible bonds due August 2009; -- GBP424 million convertible bonds due April 2008; and -- GBP200 million 7.875% bonds due February 2007. BAA's short-term rating was also downgraded to Not Prime from Prime-3. All other long-term debt ratings remain at Baa2. All long-term ratings remain on review for further downgrade. BALL CORP: Earns US$132.7 Million in Second Quarter 2006 -------------------------------------------------------- Ball Corp. reported second quarter earnings of US$132.7 million on sales of US$1.84 billion, compared to US$79 million on sales of US$1.55 billion in the second quarter of 2005. For the first six months of 2006, Ball's earnings were US$177.3 million on sales of US$3.21 billion, compared to US$137.6 million on sales of US$2.88 billion in 2005. The 2006 second quarter includes a US$74.1 million gain for insurance recovery from a fire that occurred April 1 at a beverage can manufacturing plant in Germany. The 2005 second quarter and first half results include an after-tax charge of US$5.9 million, or five cents per diluted share, related to the closing of a food can manufacturing plant in Quebec. "Though the insurance accounting gain skews our second quarter results, when you put that aside we still had a solid quarter," said R. David Hoover, chairman, president and chief executive officer. "Sales and earnings in the quarter were up in our packaging segments. Integration of the two businesses acquired at the end of the first quarter is underway. Beverage can volumes were strong in North America and Europe/Asia. We are proceeding to replace the production capacity lost to the fire and we plan to have the replacement capacity operating in the second quarter of 2007. Overall we are positive about the outlook as we move into the second half of 2006." Metal Beverage Packaging Earnings in the quarter for the metal beverage packaging, Americas, segment were US$67.4 million on sales of US$740.6 million. A year ago second quarter earnings in the segment were US$67.4 million on sales of US$664.5 million. For the first six months, earnings were US$121.9 on sales of US$1.33 billion, compared to US$129.2 million on sales of US$1.21 billion in 2005. Metal Beverage Packaging Second quarter earnings in the metal beverage packaging, Europe/Asia, segment were US$142.5 million including US$74.1 million of earnings due to the insurance accounting gain in 2006 on sales of US$433.8 million, compared to US$58.2 million on sales of US$394.3 million in 2005. For the first six months segment earnings were US$171.1 million, including the US$74.1 insurance accounting gain, on sales of US$734.7 million, compared to US$88.5 million on sales of US$692.3 million in the first half of 2005. Metal Food & Household Products Packaging Earnings for the second quarter in the metal food and household products packaging, Americas, segment were US$12.8 million on sales of US$314.2 million, compared to a US$6 million loss that includes an US$8.8 million business consolidation charge on sales of US$179.1 million in the second quarter of 2005. Through two quarters segment earnings were US$14.6 million on sales of US$503.5 million, compared to US$7 million, which includes an US$8.8 million business consolidation charge on sales of US$363.3 in the first half of 2005. Plastic Packaging Second quarter earnings in the plastic packaging, Americas, segment were US$7.4 million on sales of US$178.5 million, compared to US$4.7 million on sales of US$133.4 million in the second quarter of 2005. For the first six months earnings in the segment were US$9.2 million on sales of US$300.9 million, compared to US$8.2 million on sales of US$249.2 million in the first half of 2005. The second quarter and first six months of 2006 also included increased costs of US$1.2 million related to purchase accounting adjustments to step up the value of acquired finished goods inventory to fair market value. Aerospace and Technologies Earnings were US$8.3 million on sales of US$175.4 million in the aerospace and technologies segment in the second quarter of 2006, compared to US$14.9 million on sales of US$180.7 million in the second quarter of 2005. For the first half of 2006, earnings were US$17.8 million on sales of US$335.3 million, compared to US$23.8 million on sales of US$362.7 million in the first six months of 2005. Outlook "We are generally pleased with our second quarter results," Mr. Hoover said. "We ended the first quarter with a number of uncertainties arising out of our April 1 fire, the new beverage container redemption system in Germany, the threat of a possible disruption at a major aluminum supplier and the integration of two businesses acquired within days of each other. "As a result we are more confident about the outlook for 2006 than we were at the end of the first quarter and see a stronger second half of the year. Still, we realize there is a lot of work to do. We have to rebuild the lost capacity in Europe; aggressively pursue the synergies and benefits we anticipate from our acquisitions; complete the capital spending projects we have underway and begin to realize the cost savings associated with them; work through the delays in awarding and funding of projects that are affecting our aerospace and technologies segment; and continue to push cost recovery initiatives throughout our reporting segments." A full-text copy of the Company's quarterly report is available for free at http://researcharchives.com/t/s?1040 Headquartered in Broomfield, Colorado, Ball Corp. -- http://www.ball.com/-- is a supplier of high-quality metal and plastic packaging products and owns Ball Aerospace & Technologies Corp., which develops sensors, spacecraft, systems and components for government and commercial customers. Ball reported 2005 sales of US$5.7 billion and the company employs 13,100 people worldwide including Argentina, Germany, France and the United Kingdom. * * * Moody's Investors Service assigned ratings to Ball Corp's US$500 million senior secured term loan D, rated Ba1, and US$450 million senior unsecured notes due 2016-2018, rated Ba2. It also affirmed existing ratings, which include Ba1 Ratings on US$1.475 billion senior secured credit facilities and US$550 million senior unsecured notes due Dec. 12, 2012. The ratings outlook is stable. Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+' senior secured credit facilities, and 'BB' senior unsecured notes. Standard & Poor's Ratings Services also affirmed its 'BB+' corporate credit rating on Ball Corp. All ratings were placed in March 2006. BON VIVEUR: Appoints Joint Liquidators to Wind Up Business ---------------------------------------------------------- John W. Lewis and Terry C. Evans of J W Lewis Insolvency Services Ltd. were appointed Joint Liquidators of Bon Viveur Limited on June 9 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Bon Viveur Limited Suite B1 The White House Forest Road Kingswood Bristol Avon BS158DH United Kingdom Tel: 0117 925 2288 BRITANNIA TOOL: Names Joint Liquidators from Harrisons ------------------------------------------------------ P. R. Boyle and J. C. Sallabank of Harrisons were appointed Joint Liquidators of Britannia Tool Hire Limited on June 5 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Britannia Tool Hire Limited Unit 2270C Dunbeath Road Elgin Industrial Estate Swindon SN2 8EA United Kingdom Tel: 01793 480 008 Web: http://www.chamber-network.co.uk/ http://www.hireitbuyit.co.uk/ C C INTEX: Creditors Approve Liquidators' Appointment ----------------------------------------------------- Creditors of C C Intex Limited approved on June 7 the resolutions for voluntary liquidation and the appointment of Gordon Craig and Daniel Paul Hennessy of Cresswall Associates Limited as Joint Liquidators of the company. The company can be reached at: C C Intex Limited Wakefield Garage Wakefield Road Blackpool Lancashire FY2 0DL United Kingdom Tel: 01253 352 301 CAVENDISH SILKS: Hires Joint Liquidators from Vantis ---------------------------------------------------- J. S. French and G. Mummery of Vantis Redhead French were appointed Joint Liquidators of Cavendish Silks (London) Limited on May 30 for the purposes of the creditors' voluntary winding- up proceeding. The company can be reached at: Cavendish Silks (London) Limited Flitch Industrial Estate Chelmsford Road Dunmow Essex CM6 1XJ United Kingdom Tel: 01371 872 636 CELLCAST PLC: Posts GBP1.8 Million Net Loss in 2006 First Half -------------------------------------------------------------- Cellcast plc disclosed its interim results for the six months ended June 30, 2006. "With the Board having taken the necessary steps to restore the profitability of our U.K. operations, and with an increasing proportion of our revenues coming from international markets, I feel confident that Cellcast will prosper in this exciting marketplace," Julian Paul, Chairman of Cellcast plc, said. "The first half of 2006 has been a very challenging period for the Company due to external events that effected our U.K. operations. [The] Board reacted both swiftly and positively to counter this temporary set-back and as a result stability is now being restored to our U.K. operations. Importantly, during this period the Board remained focused on the continuing successful international roll-out and this is reflected in our results," Mr. Paul said. 2006 Interim Results For the six months ended June 30, 2006, the company posted an unaudited GBP1.8 million net loss on GBP820,592 in gross profit, compared with a GBP506,184 net loss on GBP1.4 million in gross profit for the same period last year. At June 30, 2006, the company's unaudited balance sheet showed GBP6.1 million in total assets, GBP4.1 million in total liabilities and GBP1.9 million in stockholders' equity. Turnover both in the U.K. and internationally, totaling GBP9.6 million, was up substantially on last year's GBP5.8 million for the same period. However, the Sky Electronic Programming Guide (EPG) reorganization that took place in March and April this year had a negative impact on the Group's profitability. The EPG reorganization has created scheduling inefficiencies and has made navigation difficult for the regular viewers of the Company's programs. These issues have led to the Company incurring higher than foreseen costs and have resulted in the Company reporting a larger than anticipated loss before tax for the six months to June 30, 2006, of GBP2 million (2005: GBP539,000). Losses at the EBITDA level were GBP1.6 million (operating loss of GBP2 million, less depreciation and amortization of GBP285,000 and minority interest share of overseas losses of GBP142,000). The equivalent figure for the six months to June 30, 2005, was an EBITDA loss of GBP327,000. No dividend is proposed (2005: GBPnil). The Company has moved quickly to counter the effect of the EPG changes, having introduced new formats, redeployed bandwidth and increased marketing of all its channels to help viewers locate them on the EPG. In addition, the Company has reduced production costs as well as operating expenses, which will provide significant cost savings in the future. The Board believes it is unlikely that Sky Digital will implement another similar EPG reorganization in the foreseeable future. The Directors also believe that good progress has been achieved in the development of Cellcast's international operations, which, from a negligible base last year, accounted for some 25% of revenues in the first half of 2006. Building on momentum from the second quarter, the Directors expect that the Company's international operations will represent a rapidly growing proportion of overall revenues in the second half of 2006. "The expansion of our international presence at relatively low cost not only is a demonstration of the scalability of the Company's business model, but also of the versatility and straightforward implementation of its technologies, usually in partnership with local broadcasters," Mr. Paul added. The company is actively involved in France, Ukraine, across the Middle East, India, China, Malaysia, Thailand, Indonesia, Argentina, Brazil and USA. The Company's emphasis lies in those markets where mobile phone penetration is growing rapidly. Outlook "With the Board having taken the necessary steps to restore the profitability of our U.K. operations, and with an increasing proportion of our revenues coming from international markets, I feel confident that Cellcast will prosper in this exciting marketplace," Mr. Paul said. Headquartered in London, United Kingdom, Cellcast plc -- http://www.cellcast.com/-- has developed strategies for integrating mobile content into the multi-channel TV environment. Its applications and programming are already building new traffic for mobile networks and generating significant revenue for its broadcast partners in Europe, the Middle East and Asia. * * * As reported in TCR-Europe on Sept. 5, Cellcast PLC said it intends to place 16,040,384 new ordinary shares in order to raise approximately GBP1.3 million and avert a possible liquidation, which would unlikely provide any return to shareholders. CLOROX COMPANY: Equity Deficit Narrows to US$156 Mln at June 30 --------------------------------------------------------------- The Clorox Company filed its report on financial results for the fiscal year ended June 30, 2006, on Form 10-K, with the U.S. Securities and Exchange Commission on Aug. 25, 2006. Net sales in fiscal year 2006 increased 6% to US$4.6 billion compared to US$4.4 billion in the prior period. Volume increased at a rate of 1% as price increases impacted shipments. Contributing to the volume growth in the current year was the introduction of several new products and product improvements, and strong shipments of home-care products within Latin America. Net earnings were US$444 million for the fiscal year 2006 versus US$1.1 billion in the previous fiscal year. Gross profit increased 3% to US$1.96 billion in fiscal year 2006 from US$1.9 billion in fiscal year 2005, and decreased as a percentage of net sales to 42.2% in fiscal year 2006 from 43.2% in fiscal year 2005. At June 30, 2006, the Company's balance sheet showed US$3.6 billion in total assets and US$3.8 billion in total liabilities resulting in US$156 million of stockholders' deficit. The Company's stockholders' deficit at June 30, 2005, stood at US$553 million. Return on Invested Capital decreased approximately 60 basis points to 13.3% during fiscal year 2006 due to lower adjusted operating profit and higher invested capital. Adjusted operating profit includes US$36 million of pretax incremental costs related to historical stock option compensation expense and the former chairman and chief executive officer's health- related retirement, which lowered ROIC by 60 basis points. Invested capital increased due to an increase in other assets as a result of the Company recording a net pension asset at June 30, 2006, compared to a net pension liability at June 30, 2005, for its domestic plan. Cash and cash equivalents for the fiscal year ended June 30, 2006 decreased to US$192 million from US$293 million in the prior fiscal year. A full-text copy of the Company's management's discussion and results of operations may be viewed at no charge at http://ResearchArchives.com/t/s?1099 Headquartered in Oakland, California, The Clorox Company -- http://www.thecloroxcompany.com/-- provides household cleaning products and reaches beyond bleach. Although best known for bleach (leader worldwide), Clorox makes laundry and cleaning items (Formula 409, Pine-Sol, Tilex), cat litter (Fresh Step), car care products (Armor All, STP), the Brita water- filtration system (in North America), and charcoal briquettes (Kingsford). The company has locations worldwide, including Hungary, Russia and the United Kingdom. COLLINS & AIKMAN: Outlines Business Plan in Disclosure Statement ---------------------------------------------------------------- In the Disclosure Statement accompanying the Plan of Reorganization, Collins & Aikman Corporation and its debtor- affiliates note that while they intend to maintain the relationships currently enjoyed with the Big 3 automakers -- DaimlerChrysler, Ford, and General Motors -- the Debtors intend to enhance business relations with new domestic customers, including Toyota, Nissan, Honda and Hyundai. John R. Boken, chief restructuring officer for the Debtors, relates that key initiatives include: -- repairing relationships with existing customers; -- expanding the scope of business opportunities with new domestic customers; -- addressing 2007 and 2008 revenue declines due to loss of quoting activity while in bankruptcy; -- attracting certain targeted short lead-time new awards; and -- winning back certain programs lost in 2004 and 2005. Longer term, the Debtors believe they are well positioned to win new awards for major programs with all customers in 2009 and beyond. According to Mr. Boken, the Debtors' strategy to expand the scope of business opportunities with new domestic customers includes levering existing relationships with the new domestic customers in the carpet & acoustics business to develop similar relationships in the plastics segment. In addition, the Debtors are reviewing alternatives to utilize joint ventures and keiretsu and to establish an engineering sales and marketing presence in Asia to broaden the scope of business opportunities. Furthermore, the Debtors have identified opportunities to improve manufacturing efficiency and right size the cost infrastructure by incorporating best practices for processes, procedures and technologies across their operations, Mr. Boken relates. Moreover, the Debtors are negotiating with numerous contract and lease counterparties to reduce costs. Potential Recoveries The Debtors expect to recover certain amounts from various entities. (1) European Operations The Debtors had asserted claims for $338,733,078 against 19 of their foreign subsidiaries and affiliates in Europe: European Debtor Claim Amount --------------- ------------ C&A Automotive Company Italia, S.r.l. $252,567 C&A Automotive Fabrics Limited 87,899 C&A Automotive Floormats Europe B.V. 25,420 C&A Automotive Holding Gmbh 233,758 C&A Automotive Limited 496,185 C&A Automotive s.r.o. 1,654,506 C&A Automotive Systems AB 1,018,431 C&A Automotive Systems S.L. 5,786,358 C&A Automotive Systems, GmbH 3,734,426 C&A Automotive Trim B.V. 11,331,556 C&A Automotive Trim B.V.B.A. 1,213,731 C&A Automotive Trim GmbH 1,872,505 C&A Automotive Trim Limited 219,808 C&A Europe B.V. 7,579,940 C&A Europe S.A. 233,253,012 C&A Holding AB 229 C&A Holdings B.V. 67,510,279 C&A Products, GmbH 2,356,111 Dura Convertible Systems GmbH 106,357 The Debtors estimate a $50 million to $70 million recovery from the European Debtors, with over 90% of that amount coming from Collins & Aikman Europe S.A., Collins & Aikman Holdings B.V., and Collins & Aikman Automotive Trim B.V. The Debtors anticipate that an initial distribution will be made by December 31, 2006, with the final distribution being made by March 31, 2007. As previously reported, the European Debtors commenced administration proceedings pursuant to the English insolvency law. IAC Acquisition Corporation Limited -- an entity funded by WL Ross & Co. LLC and Franklin Mutual Advisors LLC -- purchased substantially all assets of the European Debtors for over $100,000,000. As part of the sale, the Debtors agreed to transfer and license certain intellectual property to IAC for $12,500,000. (2) Avoidance Actions The Debtors are currently investigating prepetition transfers that may be avoided under Chapter 5 of the Bankruptcy Code as fraudulent or otherwise. With respect to potential actions under Section 547 of the Bankruptcy Code, in the 90 days before the Petition Date, the Debtors made 96,000 payments aggregating $618,000,000 to 3,900 different parties, Mr. Boken relates. About 210 of the 3,900 parties received payments in excess of $500,000 during that period, amounting to $486,000,000, Mr. Boken says. Mr. Boken maintains that with respect to payments to insiders during the one-year period before the Petition Date, the Debtors made $7,400,000 in payments to 32 entities. Also during the one-year period, the Debtors transferred $244,000,000 among various affiliates, he adds. The Debtors are continuing to investigate the facts and circumstances of each of these transfers. Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and $2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) COLLINS & AIKMAN: Exchanging Secured Debt for Stock Under Plan -------------------------------------------------------------- After a review of their current business operations, Collins & Aikman Corporation and its debtor-affiliates concluded that continuing to operate as a going concern would maximize creditors' recovery. The Debtors believe that their businesses and assets have significant value that would not be realized in liquidation. The Debtors' Plan of Reorganization provides for cancellation of claims under their senior secured credit facility in exchange for: (1) new common stock; (2) replacement of all undrawn letters of credit under the Prepetition Facility; (3) retention of adequate protection payments; (4) payment of reasonable fees and expenses of attorneys and financial advisor of JPMorgan Chase Bank, N.A., as administrative agent under the Prepetition Credit Agreement, in connection with consummation, administration and enforcement of Plan; and (5) certain releases and exculpation. John R. Boken, chief restructuring officer for Collins & Aikman Corporation, explains that the Debtors, as Reorganized Debtors, will continue to exist after the Effective Date as separate corporate entities, with all the powers of a corporation under applicable law. The Plan allows the Reorganized Debtors to enter into certain transactions to effect a corporate restructuring of their businesses, including mergers, consolidations, dispositions, liquidations or dissolutions. The initial board of directors of Reorganized Collins & Aikman Corporation will comprise the chief executive officer of Reorganized C&A Corporation and six other members selected by the Steering Committee of secured lenders. Exit Financing To obtain funds necessary to make payments required on the Effective Date and conduct post-reorganization operations, the Reorganized Debtors expect to enter into a New Bank Facility upon emergence from their Chapter 11 Cases. The Debtors are in discussions with several lenders to arrange this facility and have already received preliminary exit financing proposals. The New Bank Facility will likely be secured by substantially all of the real and personal property of the Reorganized Debtors. Litigation Trust On the Effective Date, a Litigation Trust will be established pursuant to the terms of a Litigation Trust Agreement. The Litigation Trust will initially be funded with $3,000,000, which will be repaid to the Reorganized Debtors from the first proceeds received by the Litigation Trust. The Litigation Trust will have the authority to file, settle, compromise, withdraw or litigate to judgment objections to general unsecured claims, senior note claims, and senior subordinated note claims. Treatment of Claims Under the Plan of Reorganization, the Debtors group claims and interests into 11 classes: Class Designation Status/Recovery Voting Rights ----- ----------- --------------- ------------- n/a Administrative Claims 100% Recovery - n/a Priority Tax Claims 100% Recovery - 1 Other Secured Claims Unimpaired deemed to accept 100% Recovery 2 Other Priority Claims Unimpaired deemed to accept 100% Recovery 3 Prepetition Facility Impaired entitled to vote Claims 4 OEM Junior Secured Impaired entitled to vote DIP Claims 5 General Unsecured Impaired entitled to vote Claims 6 Senior Note Claims Impaired entitled to vote 7 PBGC Claims Impaired entitled to vote 8 Senior Subordinated Impaired entitled to vote Note Claims 9 Equity Interests Impaired deemed to reject 0% Recovery 10 Subordinated Impaired deemed to reject Securities Claims 0% Recovery 11 Intercompany Claims Impaired deemed to reject 0% Recovery Kurtzman Carson Consultants, LLC, the Debtors' claims and solicitations agent, will: -- answer questions regarding the procedures and requirements for voting to accept or reject the Plan and for objecting to the Plan; -- provide additional copies of all materials; -- oversee the voting tabulation; and -- process and tabulate ballots for each Class entitled to vote to accept or reject the Plan. Parties-in-interest may contact KCC at: Collins & Aikman Solicitation c/o Kurtzman Carson Consultants L.L.C. 12910 Culver Boulevard, Suite I Los Angeles, California 90066 As of Aug. 25, 2006, KCC had received about 9,005 proofs of claim in the Debtors' Chapter 11 cases: (a) 1,024 secured claims for $3,091,210,506; (b) 40 administrative claims for $2,195,440; (c) 898 priority claims for $7,495,495,767; and (d) 7,043 unsecured claims for $42,639,506,934. The Debtors believe that many of the claims are invalid, untimely, duplicative or overstated. The Debtors are in the process of objecting to those claims. Through objections, the Court has disallowed 227 claims for $4,342,718,570. At the conclusion of the Claims objection, reconciliation and resolution process, the Debtors estimate that the aggregate amount of claims for each class will be: Class Estimated Amounts ----- ----------------- Allowed Administrative Claims $95,000,000 Allowed Secured Claims $940,000,000 Allowed Priority Claims $12,000,000 Allowed Senior Note Claims $521,000,000 Allowed Senior Subordinated Note Claims $414,000,000 Allowed General Unsecured Claims $540,000,000 Liquidation & Valuation Analyses The Debtors' management, together with KZC Services, LLC, their restructuring consultants, and Lazard Freres & Co. LLC, their financial advisors, prepared a Liquidation Analysis and Valuation Analysis, which describe the proceeds to be realized under the Plan as currently proposed, versus the distributions that would be realized by holders of claims and equity interests if the Debtors were liquidated in a case under Chapter 7 of the Bankruptcy Code. The Debtors believe that the Plan will produce a greater recovery for creditors than would be achieved in a Chapter 7 liquidation because, among other things: -- proceeds available for distribution in a liquidation under Chapter 7 would not include the Debtors' going concern value; -- the administrative and postpetition claims generated by a conversion to a Chapter 7 and the administrative costs of liquidation and associated delays would likely diminish the assets available for distribution to creditors. The value of the equity in the Reorganized Debtors on their exit from bankruptcy as a going concern is projected to be greater than the recovery realized from a liquidation of the Debtors' assets, Mr. Boken relates. Attempts to Sell the Business The Debtors had initiated a process to sell the company "in whole or in part" as part of its dual-track strategy. As of August 30, 2006, the Debtors report that they have been unable to reach an agreement with the interested parties that they believe would be acceptable to creditors. However, the Debtors continue to have discussions and provide due diligence information to certain parties. The Plan preserves the Debtors' enterprise value for holders of allowed claims while leaving open the possibilities of sale of some or all of their businesses should a suitable opportunity arise. A full-text copy of Collins & Aikman's Plan and Disclosure Statement is available for free at: http://researcharchives.com/t/s?10f2 The exhibits and appendices to the Plan and Disclosure Statement will be filed in pieces and will be posted in the same link as soon as they become available. The Debtors say they will file the Plan exhibits no later than 10 days before the hearing on the Disclosure Statement. The Court has yet to schedule the Disclosure Statement Hearing. Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and $2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CORPORATE EVENT: Creditors Ratify Voluntary Liquidation ------------------------------------------------------- Creditors of Cavendish Silks (London) Limited ratified on May 23 the resolutions for voluntary liquidation together with the appointment of Alan H. Tomlinson of Tomlinsons as Liquidator of the company. The company can be reached at: Cavendish Silks (London) Limited Britannia House Leeds Road Heckmondwike West Yorkshire WF169BS United Kingdom Tel: 0808 108 9939 CORPORATE PROJECT: Names Joint Liquidators from Begbies Traynor --------------------------------------------------------------- Paul Michael Davis and Timothy John Edward Dolder of Begbies Traynor (South) LLP were appointed Joint Liquidators of Corporate Project Management Company (U.K.) Limited on June 5 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Corporate Project Management Company (U.K.) Limited 113-115 Codicote Road Welwyn Hertfordshire AL6 9TY United Kingdom Tel: 01438 829 191 DEVIANT LIMITED: Appoints Ian Franses to Liquidate Assets --------------------------------------------------------- Ian Franses of Ian Franses Associates was appointed Liquidator of Deviant Limited on June 5 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Deviant Limited 55 Loudoun Road London NW8 0DL United Kingdom Tel: 020 8969 0666 ELECTRO FIXIT: Names Liquidator from B & C Associates ----------------------------------------------------- Jeffrey Mark Brenner of B & C Associates was appointed Liquidator of Electro Fixit Limited on June 13 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Electro Fixit Limited 90 Field End Road Pinner Middlesex HA5 1RL United Kingdom Tel: 020 8866 8955 EUROVENT PURIFYING: J. N. Bleazard Leads Liquidation Procedure -------------------------------------------------------------- J. N. Bleazard of XL Business Solutions Ltd. was appointed Liquidator of Eurovent Purifying Systems Limited on June 1 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Eurovent Purifying Systems Limited Unit 5 Ninth Avenue East Team Valley Trading Estate Gateshead Tyne And Wear NE110LJ United Kingdom Tel: 0191 430 9765 FORD MOTOR: Looks at New Business Models to Ensure Recovery ----------------------------------------------------------- Ford Motor Co.'s chief executive officer Bill Ford informed employees in a memo issued last week that "the business model that sustained [the Company] for decades is no longer sufficient to sustain profitability," the Associated Press reports. Mr. Ford plans to revitalize the ailing automaker by locking in on three key areas of change -- accelerating the "Way Forward" plan, leveraging global assets and strengthening leadership, AP relates. The admission came as Ford gears up for an aggressive reduction of North American production as part of broader efforts to accelerate the pace of its "Way Forward" turnaround. The North American restructuring calls for, among other things: -- material cost reductions of at least $6 billion by 2010; -- a 26% capacity reduction by 2008; and -- a reduction of plant-related employment by 25,000- 30,000 in 2006 to 2012. As reported in the Troubled Company Reporter on Aug. 21, 2006, the revised plan will cut fourth-quarter production by 21% -- or 168,000 units -- compared with the fourth quarter a year ago, and reduce third-quarter production by approximately 20,000 units. Recently, Ford disclosed that it has started exploring strategic options for the Aston Martin sports-car unit, including a potential sale of the brand. Mr. Ford had stated that Aston Martin may be an attractive opportunity to raise capital and generate value for the Company. Last month, talks also surfaced about the possible sale of the Company's Jaguar unit to Sir Anthony Bamford, JC Bamford Excavators Ltd.'s Chairman. Along with Volvo, Land Rover and Aston Martin, Jaguar forms Ford's Premier Automotive Group. The PAG segment incurred a US$180 million net loss in the second quarter of 2006. Mr. Ford is also open to ceding the top post if the right man comes along, The Australian Reports. However, Mr. Ford clarified that he is focused on pushing the "Way Forward" plan and not on finding a new CEO. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE: F)-- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. * * * As reported in the Troubled Company Reporter on Aug. 22, 2006, Dominion Bond Rating Service placed long-term debt rating of Ford Motor Company Under Review with Negative Implications following announcement that Ford will sharply reduce its North American vehicle production in 2006. DBRS lowered on July 21, 2006, Ford Motor Company's long-term debt rating to B from BB, and lowered its short-term debt rating to R-3 middle from R-3 high. DBRS also lowered Ford Motor Credit Company's long-term debt rating to BB (low) from BB, and confirmed Ford Credit's short-term debt rating at R-3(high). Fitch Ratings also downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered the Ford's senior unsecured rating to 'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB- /RR2' from 'BB/RR2'. The Rating Outlook remains Negative. Standard & Poor's Ratings Services also placed its 'B+' long- term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related entities on CreditWatch with negative implications. As reported in the Troubled Company Reporter on July 24, 2006, Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating of Ford Motor Credit Company to Ba3 from Ba2. The Speculative Grade Liquidity rating of Ford has been confirmed at SGL-1, indicating very good liquidity over the coming 12 month period. Moody's said the outlook for the ratings is negative. FORD MOTOR: Names Mulally Pres. & CEO, Ford Stays as Chairman ------------------------------------------------------------- Ford Motor Company has elected Alan Mulally as president and chief executive officer. He has also been elected to the Board of Directors. Bill Ford will continue his duties as executive chairman of the company. "One of the three strategic priorities that I've focused on this year is company leadership. While I knew that we were fortunate to have outstanding leaders driving our operations around the world, I also determined that our turnaround effort required the additional skills of an executive who has led a major manufacturing enterprise through such challenges before," Mr. Ford wrote in an e-mail message to Ford employees. "That's why I'm very pleased to announce that Alan Mulally, who turned around the Commercial Airplanes division of The Boeing Company, will become our president and CEO, effective immediately. Alan has deep experience in customer satisfaction, manufacturing, supplier relations and labor relations, all of which have applications to the challenges of Ford. He also has the personality and team-building skills that will help guide our Company in the right direction." Mr. Ford, who said he would remain "extremely active" in the business, praised Mr. Mulally as "an outstanding leader and a man of great character." He noted that Mr. Mulally had applied many of the lessons from Ford's success in developing the Taurus to Boeing's creation of the revolutionary Boeing 777 airliner. That experience, chronicled in the book, "Working Together," by James P. Lewis, tells how the leadership principles Mr. Mulally learned from Ford and developed at Boeing may be applied to other businesses. "Clearly, the challenges Boeing faced in recent years have many parallels to our own," Mr. Ford said. Mr. Mulally, 61, has spent 37 years at The Boeing Company, most recently as executive vice president. In addition, he has also been president and chief executive officer of Boeing Commercial Airplanes since 2001. In that position he was responsible for all of the company's commercial airplane programs and related services, which in 2005 generated record orders for new business and sales of more than $22.6 billion. Mr. Mulally was named president of Commercial Airplanes in September 1998. The responsibility of chief executive officer for the business unit was added in March 2001. "I think the opportunity to work with Mr. Ford and Ford Motor Company is the only thing that could have attracted me to a job other than Boeing, where I have so many great friends and memories," Mr. Mulally said. "I'm looking forward to working closely with Bill in the ongoing turnaround of this great Company. I'm also eager to begin engagement with the leadership team. I believe strongly in teamwork and I fully expect that our efforts will be a productive collaboration." Mr. Mulally noted that many of the challenges he encountered in commercial airplane manufacturing are analogous to the issues at Ford. "Just as I thought it was appropriate to apply lessons learned from Ford to Boeing, I believe the reverse is true as well," Mr. Mulally said. "I also recognize that Ford has a strong foundation upon which we can build. The Company's long tradition of innovation, developing new markets, and creating iconic vehicles that represent customer values is a great advantage that we can leverage for our future." Mr. Ford said he expected Mr. Mulally would assist Mark Fields and the Way Forward team as they accelerate their business plan. "After dealing with the troubles at Boeing in the post-9/11 world, Alan knows what it's like to have your back to the wall - - and fight your way out with a well-conceived plan and great execution," Mr. Ford said in his note to employees. "He also knows how to deal with long product cycles, changing fuel prices and difficult decisions in a turnaround." Prior to his current position, Mr. Mulally served as president of Boeing Information, Space & Defense Systems, and senior vice president of The Boeing Company. Appointed to that role in February 1997, he was responsible for Boeing's defense, space and government business. Beginning in 1994, he was senior vice president of Airplane Development for Boeing Commercial Airplanes Group, responsible for all airplane development activities, flight test operations, certification and government technical liaison. Mr. Mulally serves as co-chair of the Washington Competitiveness Council, and sits on the advisory boards of NASA, the University of Washington, the University of Kansas, Massachusetts Institute of Technology, and the U.S. Air Force Scientific Advisory Board. He is a member of the United States National Academy of Engineering and a fellow of England's Royal Academy of Engineering. Mr. Mulally holds bachelor's and master's of science degrees in aeronautical and astronautical engineering from the University of Kansas, and earned a master's in management from the Massachusetts Institute of Technology as a 1982 Alfred P. Sloan fellow. A member of the board since 1988, Mr. Ford, 49, was elected chairman in September 1998, and took office on Jan. 1, 1999. He also serves as chairman of the board's Environmental and Public Policy Committee and as a member of the Finance Committee. He was named Chief Executive Officer on Oct. 30, 2001. Mr. Ford, who led the Company to three straight years of profitability through 2005, told employees in his e-mail message that he looked forward to an excellent working partnership with Mr. Mulally on global strategic issues. "Let me assure you: I'm not going anywhere," Mr. Ford wrote to Ford workers. "As executive chairman, I intend to remain extremely active in the direction of this Company. I'll be here every day and I will not rest until a prosperous future for this Company is secured." Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE: F) -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company and The Hertz Corporation. * * * As reported in the Troubled Company Reporter on Aug. 22, 2006, Dominion Bond Rating Service placed long-term debt rating of Ford Motor Company Under Review with Negative Implications following announcement that Ford will sharply reduce its North American vehicle production in 2006. DBRS lowered on July 21, 2006, Ford Motor Company's long-term debt rating to B from BB, and lowered its short-term debt rating to R-3 middle from R-3 high. DBRS also lowered Ford Motor Credit Company's long-term debt rating to BB(low) from BB, and confirmed Ford Credit's short-term debt rating at R-3(high). Fitch Ratings also downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered the Ford's senior unsecured rating to 'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-/RR2' from 'BB/RR2'. The Rating Outlook remains Negative. Standard & Poor's Ratings Services also placed its 'B+' long- term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related entities on CreditWatch with negative implications. As reported in the Troubled Company Reporter on July 24, 2006, Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating of Ford Motor Credit Company to Ba3 from Ba2. The Speculative Grade Liquidity rating of Ford has been confirmed at SGL-1, indicating very good liquidity over the coming 12 month period. Moody's said the outlook for the ratings is negative. GARRY HEINS: Appoints Joint Administrators from Bridgestones ------------------------------------------------------------ Jonathan Guy Lord and Robert Lochmohr Cooksey of Bridgestones were appointed joint administrators of Garry Heins Limited (Company Number 01058033) on Aug. 11. The administrators can be reached at: Bridgestones 125-127 Union Street Oldham Lancashire OL1 1TE United Kingdom Tel: 0161 785 3700 Fax: 0161 785 3701 E-mail: rlc@bridgestones.co.uk Headquartered in Rochdale, United Kingdom, Garry Heins Limited manufactures specialized carbon fiber fabrics used to make structural components. GENERAL MOTORS: Retail Sales Up 8% in August 2006 ------------------------------------------------- General Motors Corp.'s dealers in the United States sold 368,776 new cars and trucks in August. Retail sales were up 8% on a sales day adjusted basis, compared with August 2005. "August retail sales were up almost 30,000 units compared to last year. That's great news. This was one of the stronger retail months of 2006, with our performance led by such launch vehicles as the Pontiac Torrent and G6, Saturn Sky, Chevrolet Cobalt, Impala and Buick Lucerne," Mark LaNeve, General Motors North America vice president, Vehicle Sales, Service and Marketing, said. "Importantly, we're capitalizing on the sale of fuel-efficient cars and trucks including such "30 mpg and Above Club" members as Pontiac G6 coupe and G5, Chevy HHR, Cobalt, Malibu and Impala, and Saab 9-3. Our large pickup retail sales for Chevrolet Silverado, Avalanche and GMC Sierra were up 27% compared with a year ago. Customers clearly are responding to the quality, value, versatility and fuel efficiency of our cars and trucks. We encourage everyone in the new-vehicle market to take advantage of our Final Summer Bonus Cash sales event that runs through September 5." Due to the success of new products, GM has seen sales strengthen over the last few months. GM market share on a retail basis has improved significantly in the last 90 days due to great launch vehicle performance and a broad-range of fuel-efficient vehicles. Consistent with our North America turnaround plan, GM continues to run above 3 million retail units on an annualized basis. GM also continues to reduce its reliance on low-margin daily rental sales. Daily rental sales were down 20% compared to year-ago levels, and were down 23% compared to July 2006. Total fleet sales (including daily rentals) were down 15% (14,112 vehicles) compared to year-ago levels. Total GM U.S. retail passenger car sales are up 5% versus August last year, demonstrating that GM can compete in all product categories and take advantage of shifting consumer preferences. In August, GM North America produced 465,000 vehicles (179,000 cars and 286,000 trucks). This is down 25,000 units or 5% compared to August 2005 when the region produced 490,000 vehicles (181,000 cars and 309,000 trucks). (Production totals include joint venture production of 26,000 vehicles in August 2006 and 28,000 vehicles in August 2005.) The region's 2006 third quarter production forecast remains unchanged at 1.050 million vehicles (405,000 cars and 645,000 trucks). In the third quarter of 2005 the region produced 1.146 million vehicles (423,000 cars and 723,000 trucks). Additionally, the region's initial 2006 fourth quarter production forecast is set at 1.130 million vehicles (455,000 cars and 675,000 trucks), down approximately 12%, or 150,000 units, compared to 2005 fourth quarter actuals. This production adjustment does not reflect a reduction in GM's sales outlook, but is consistent with our strategy to reduce low-margin daily rentals, and takes into account the plan to shift production of pick-ups to the next generation pick-ups during the fourth quarter. GM also announced 2006 revised third quarter and initial fourth quarter production forecasts for its international regions. GM Europe - GM Europe's 2006 third quarter production forecast remains unchanged at 372,000 vehicles. In the third quarter of 2005 the region built 412,000 vehicles. The region's 2006 initial fourth quarter production forecast is set at 451,000 units, up 2% from 2005 fourth quarter actuals. GM Asia Pacific -GM Asia Pacific's 2006 third quarter production forecast is revised at 425,000 vehicles, down 13% from last month's guidance. In the third quarter of 2005 the region built 409,000 vehicles. The region's 2006 initial fourth quarter production forecast is set at 524,000 units, up 25% from 2005 fourth quarter actuals. GM Latin America, Africa and the Middle East -The region's 2006 third quarter production forecast remains unchanged at 217,000 vehicles. In the third quarter of 2005 the region built 207,000 vehicles. The region's 2006 initial fourth quarter production forecast is set at 211,000 units, up 12% from 2005 fourth quarter actuals. About General Motors General Motors Corp. -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries, including India. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * On June 30, 2006, Standard & Poor's Ratings Services held all its ratings on General Motors Corp. -- including the 'B' corporate credit rating and the 'B+' bank loan rating, but excluding the '1' recovery rating -- on CreditWatch with negative implications, where they were placed March 29, 2006. On June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new US$4.48 billion senior secured bank facility. The 'RR1' (recovery of 90%-100%) is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. On June 21, 2006, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corporation, affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. GLOBAL DEFENCE: Taps Begbies Traynor as Joint Administrators ------------------------------------------------------------ Ian Edward Walker and Kenneth Stephen Chalk of Begbies Traynor were appointed joint administrators of Global Defence Procurement Limited (Company Number 04479094) on Aug. 17. 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. Global Defence Procurement Limited can be reached at: Plymouth Devon PL2 2BG United Kingdom Tel: 01752 565 580 Fax: 01752 565 538 GRAHAM PACKAGING: Posts US$507,294 Partners' Deficit at June 30 --------------------------------------------------------------- Graham Packaging Co. Inc. incurred a US$15,266,000 net loss on US$653,282,000 of revenues for the second quarter ending June 30, 2006, the Company disclosed in a Form 10-Q report filed with the Securities and Exchange Commission. As of June 30, 2006, the Company's balance sheet showed US$2,531,574 in assets and a US$507,294 partners' deficit. In the six months ended June 30, 2006, the Company funded, through its operating activities, US$88.9 million of investing activities and US$76.9 million of financing activities. Included in the Company's operating activities was a decrease in inventories of US$47.9 million from Dec. 31, 2005, to June 30, 2006, primarily due to a seasonal drop in finished goods inventories and a decrease in raw material reserves that were established at the end of 2005 to mitigate the effects on the supply of raw materials caused by the hurricanes in the United States in the latter part of 2005. A full-text copy of the regulatory filing is available for free at http://ResearchArchives.com/t/s?10ea About Graham Packaging Headquartered in York, Pennsylvania, Graham Packaging Co. Inc. -- http://www.grahampackaging.com/-- designs, manufactures and sells technology-based, customized blow-molded plastic containers for the branded food and beverage, household, personal care/specialty, and automotive lubricants product categories. The Company currently operates 88 plants worldwide including France, Hungary, the Netherlands, Poland, Spain, Turkey and the United Kingdom. The Blackstone Group of New York is the majority owner of Graham Packaging. * * * As reported in the Troubled Company Reporter on Apr 11, 2006, Standard & Poor's Ratings Services assigned its 'B' bank loan rating to Graham Packaging Co.'s proposed incremental US$150 million first-lien term loan B due 2011, based on preliminary terms and conditions. At the same time, Standard & Poor's affirmed its ratings, including its 'B' corporate credit rating, on the plastic packaging producer. S&P said the outlook remains positive. HANDLING BY DESIGN: Appoints Liquidator from Price & Co. -------------------------------------------------------- Alan R. Price of Price & Co. was appointed Liquidator of Handling By Design Limited on May 26 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Handling By Design Limited Brunel Road Earlstrees Industrial Estate Corby Northamptonshire NN174AU United Kingdom Tel: 01536 266 676 HARWAL LIMITED: Brings In Joint Administrators from Kroll --------------------------------------------------------- C. P. Holder and S. C. E. Mackellar of Kroll were appointed joint administrators of Harwal Limited (Company Number 3129747) on Aug. 21. 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. Harwal Limited can be reached at: Far Cringles Farm Cringles Lane Silsden Keighley West Yorkshire BD20 9JA United Kingdom HOUSE WORKS: Creditors Confirm Liquidator's Appointment ------------------------------------------------------- Creditors of The House Works Europe Limited confirmed on June 13 the appointment of Roderick Graham Butcher of Butcher Woods as Liquidator of the company for the purposes of the voluntary winding-up. The company can be reached at: The House Works Europe Limited St. Pauls Terrace 79 Caroline Street Birmingham West Midlands B3 1UP United Kingdom Tel: 077 3646 0335 INCO LTD: CVRD Gets Canadian & U.S. Antitrust OK for Inco Offer --------------------------------------------------------------- Companhia Vale do Rio Doce has obtained antitrust clearances from the Canadian Competition Bureau and the United States competition authorities with respect to its offer to acquire all the outstanding shares of Inco Limited if the Brazil mining company can win shareholder support for its $17 billion cash bid, reports Associate Press Business Writer Alan Clendenning. As reported in the Troubled Company Reporter on Aug. 30, 2006, Inco's Board of Directors continues to recommend that shareholders vote in favor of the proposed combination between Inco and Phelps Dodge Corp. at the special meeting of Inco shareholders on Sept. 7, 2006. Accordingly, the Board has recommended that Inco shareholders reject CVRD's offer to purchase for cash all of the outstanding common shares of Inco. Inco has been negotiating with CVRD to increase the bid, but CVRD has no plans on improving the offer. Phelps Dodge hasn't increased its offer either after an initial raise. Phelps Dodge's shareholders are concerned over the level of debt the Company would incur to complete the merger, Mr. Clendenning relates. Analysts have said that investors might support the CVRD offer after Teck Cominco Limited withdrew from the bidding, and Inco's stock settled at about $77 -- the value of CVRD's bid -- because it is all cash, writes Mr. Clendenning. About Phelps Dodge Headquartered in Phoenix, Arizona, Phelps Dodge Corp. (NYSE: PD) -- http://www.phelpsdodge.com/-- produces copper and molybdenum and is the largest producer of molybdenum-based chemicals and continuous-cast copper rod. The company and its two divisions, Phelps Dodge Mining Co. and Phelps Dodge Industries, employ approximately 13,500 people worldwide. About CVRD Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio Doce -- http://www.cvrd.com.br/-- engages primarily in mining and logistics businesses. It engages in iron ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. IRON ENGINEERING: Joint Liquidators Take Over Operations -------------------------------------------------------- Stephen James Wainwright and Stephen Lord of Poppleton & Appleby were appointed Liquidators of Iron Engineering Limited (t/a Derwent Services) on May 26 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Iron Engineering Limited 107 Bridge Street Swinton Manchester M27 4DN United Kingdom Tel: 0161 728 6644 ISOFT GROUP: FY 2006 Net Losses Widen to GBP382.2 Million --------------------------------------------------------- iSOFT Group plc disclosed its audited results for the year ended April 30, 2006. The Group's full year results are reported under IFRS regulations for the first time. The Group has also changed its accounting policy for revenue recognition, as disclosed on June 8, 2006. For the year ended April 30, 2006, the company posted a GBP382.2 million net loss on GBP201.7 million of revenues, compared with a GBP5.9 million net income on GBP186.1 million in revenues for the same period last year. "The second half of the financial year ended April 30, 2006 was a turbulent period for iSOFT and long-term shareholders will be feeling deeply disappointed by the events of recent months. I joined the Group as Chairman in October last year and share that disappointment, but I am determined to see through a series of actions and change that I believe are necessary to put this company back on a solid footing and enable it to capitalize on its underlying product strengths and experience," Chairman and acting Chief Executive Officer John Weston said. Borrowing facilities At April 30, 2006, the Group had bank facilities of GBP144 million, including a revolving credit facility of GBP105 million and a term loan facility of GBP39 million, both expiring in 2008. In the past, a significant proportion of cash flows were derived from customers willing to pay up-front for product and services or from the financing of customer receivables. In the main, these up-front payments fell into two categories; (1) payments supported by letters of credit and guarantees, which amounted to GBP88.2 million at April 30, 2006, provided under the GBP105 million revolving credit facility; and (2) payments via third-party contract financing arrangements which amounted to approximately GBP62 million at April 30, 2006. Following the adoption of IFRS and further detailed review of these contract financing arrangements have been brought on to the balance sheet. The Group's principal covenants under its bank facilities were that net financial indebtedness, including letters of credit issued in support of up front payments (but excluding non recourse financing), may not exceed three times earnings before tax, interest, depreciation and amortization, and net interest cover must be greater than five times earnings before interest and taxation. Due to the adoption of the new accounting policy and the expected future cash flow profile of the business, some aspects of the Group's banking facilities have had to be amended. The Group has therefore undertaken discussions with its banks with the objective of agreeing new terms. The outcome of those discussions is that the Group will retain the current facilities with no further amortization of the term loan and additional facilities of GBP25 million which will be available in certain circumstances until November 2007 on new terms. These terms include an up-front fee of GBP1.2 million and higher costs of borrowing including Payment In Kind (PIK) interest from Jan. 1, 2007, of 5% per annum, for the three months to March 31, 2007, 7.5% per annum for the three months to June 30, 2007, and 10% per annum thereafter. Within those terms, the Group will issue warrants amounting to 3.7% of iSOFT equity to the banks, with a strike price of 10 pence, when shareholder approval is obtained. An exit fee of GBP15 million is payable at the end of the facility, on refinancing or on change of control of the Company, and if the warrants are not issued prior to Oct. 31, 2006. If the warrants are issued prior to Oct. 31, 2006, then no exit fee is payable. Revenue Recognition Accounting Policy In June 2006, the Board said it had decided to change the Group's accounting policy for revenue recognition to an appropriate policy for today's commercial situation. In the past, iSOFT was primarily a software product company serving independent hospital and family doctor trusts. The Group is now engaged with larger, more complex and longer-term projects, in which it is increasingly difficult to distinguish between the supply of product licenses and their implementation. As a result, the current Board has decided that the use of the previous accounting policy has become inappropriate and have decided that license revenues will in future typically be recognized over the period of implementation, which may range from a few months to a number of years from contract signature, and over the full contract duration in the case of bundled services. The change in revenue recognition policy has been implemented by way of a prior year adjustment as mandated by International Financial Reporting Standard 1. This requires the Group to provide comparable figures prepared on a consistent basis for the financial year ended April 30, 2005. The accounting policy restatement has involved reversing revenues of GBP76 million, GBP54 million and GBP44 million (total: GBP174 million) which were recognized in the years ended April 30, 2005, 2004 and 2003 or earlier, respectively. Those revenues will now be recognized in future years in accordance with the provisions of the new accounting policy. In calculating the prior year adjustment, note 1 outlines the limitations in the historical data available to the Board. The Group believes that of the GBP174 million revenues reversed approximately GBP40-50 million will be recognized in each of the years ending April 30, 2007 and 2008, and the majority of the balance in the following three years. The main benefit of this change will be that revenues will reflect more closely the Group's trading activities and be more closely aligned with the Group's operational cash flows for the financial year 2009 and subsequently. Director Steve Graham Suspended As a result of work carried out by its auditors to review the adjustment to past revenues, possible accounting irregularities have come to light which have been the subject of an investigation by Deloitte & Touche LLP and Eversheds LLP. Deloitte & Touche LLP was appointed as the Group's auditor in July 2005 and was not therefore acting for the Group during the period covered by the investigation. After an initial review, the Board has deemed it appropriate to suspend Steve Graham, the Group's Commercial Director, pending the outcome of a more formal investigation. The investigation concerns several contracts where it would appear that revenues have been recognized earlier than they should have been in the financial years ended April 30, 2004 and 2005 in accordance with the accounting policy in force at that time. The irregularities uncovered to date do not appear to have affected the cash position of the Group. As reported in TCR-Europe on Aug. 28, the Financial Services Authority will be undertaking a more formal investigation into possible accounting irregularities at iSOFT Group plc, which could take months to complete. Streamlining the Cost Base The Group has been taking, and continues to take, action to re- align its operating costs with future revenue expectations. As part of this process, it is examining in detail the operating cost structure of each of its operations, both in the U.K. and internationally, to identify areas for cost reduction and improved organizational efficiency. The Group is targeting to reduce its total operating cost base from an annual run rate of just over GBP209 million at May 1, 2006, to below GBP185 million by the end of the current financial year. The current run-rate is higher than the total actual cost incurred for the year just ended because the Group has increased significantly its level of development resources to support both existing and future applications. As part of the plan to reduce costs, the Group entered into a consultation process with employees in the U.K. in early May 2006 and it is likely that at least 150 employees, representing approximately 15% of total headcount in the UK, will be made redundant. The cost of this action will be about GBP3 million, but is expected to reduce the current annual cost base by approximately GBP6 million. The Group also intends to reduce staff levels in some of its international operations and has taken steps to reduce sub- contract and overhead costs as part of the financial year 2007 budget review process. The total cost of action already in hand to reduce the cost base, which will be taken as a one-time charge in the year ending April 30, 2007, is estimated to be at least GBP7 million. Headquartered in Manchester, United Kingdom, iSOFT Group plc -- http://www.isoftplc.com/-- supplies advanced medical software applications for the healthcare sector. Its products are used by more than 8,000 organizations in 27 countries for managing patient information and driving improvements in healthcare services. In international markets, the Group has a strong presence in Germany, The Netherlands, Spain and Asia Pacific. JFL AUTOMOTIVE: Appoints Joint Administrators from KPMG ------------------------------------------------------- Mark Jeremy Orton and Andrew Stephen McGill of KPMG LLP were appointed joint administrators of JFL Automotive Limited (Company Number 00506874) on Aug. 18. 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 Birmingham, United Kingdom, JFL Automotive Limited manufactures components for motor industry. JOHN HAMPDEN: Creditors' Meeting Slated for September 11 -------------------------------------------------------- Creditors of John Hampden Packaging Limited (Company Number 4249152) will meet at 11:00 a.m. on Sept. 11 at: The Hilton Hotel Junction 24 M1 Derby Road Castle Donington Derby DE74 2YW 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 Sept. 8 at: L. R. Bailey Joint Administrative Receiver Vantis PLC 63 Temple Row Birmingham B2 5LS United Kingdom Tel: 0121 616 5800 Fax: 0121 616 5801 Vantis' Birmingham office -- http://www.vantisplc.com/-- provides a broad range of value-added accountancy, tax, business services and professional advice to owner-managed businesses and private individuals. KENNA TRANSPORT: Appoints Nigel Morrison to Liquidate Assets ------------------------------------------------------------ Nigel Morrison of Grant Thornton U.K. LLP was appointed Liquidator of Keena Transport Limited on June 1 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Keena Transport Limited Cargo Centre Ackworth Road Portsmouth PO3 5JT United Kingdom Tel: 023 9265 4543 KRISPY KREME: Settles Suit with Sweet Traditions ------------------------------------------------ Krispy Kreme Doughnut Corporation, a wholly owned subsidiary of Krispy Kreme Doughnuts, Inc., has reached litigation settlement with Sweet Traditions, LLC and Sweet Traditions of Illinois, LLC. The Company, in July 2005, was sued by one of its area developers, Sweet Traditions, LLC, and its Illinois corporate entity, Sweet Traditions of Illinois, LLC, in the Circuit Court for St. Clair County, Illinois. The case was subsequently removed to the United States District Court for the Southern District of Illinois. The Company disclosed that parties filed a joint stipulation for dismissal of the litigation with prejudice with the Court and the case was dismissed on Aug. 28, 2006. The resolution of the matter will not result in any accounting charge to the Company. About Krispy Kreme Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme (NYSE: KKD) -- http://www.krispykreme.com/-- is a branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. There are currently approximately 320 Krispy Kreme stores and 80 satellites operating systemwide in 43 U.S. states, Australia, Canada, Mexico, the Republic of South Korea and the United Kingdom. Headquartered in Winston-Salem, North Carolina, Freedom Rings LLC is a majority-owned subsidiary and franchisee partner of Krispy Kreme Doughnuts, Inc., in the Philadelphia region. The Debtor operates six out of the approximately 360 Krispy Kreme stores and 50 satellites located worldwide. The Company filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del. Case No. 05-14268). M. Blake Cleary, Esq., Margaret B. Whiteman, Esq., and Matthew Barry Lunn, Esq., at Young Conaway Stargatt & Taylor, LLP, represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it estimated $10 million to $50 million in assets and debts. Headquartered in Oak Brook, Illinois, Glazed Investments, LLC, is a 97%-owned unit of Krispy Kreme. Glazed filed for chapter 11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06- 00932). The bankruptcy filing will facilitate the sale of 12 Krispy Kreme stores, as well as the franchise development rights for Colorado, Minnesota and Wisconsin, for approximately $10 million to Westward Dough, the Krispy Kreme area developer for Nevada, Utah, Idaho, Wyoming and Montana. Daniel A. Zazove, Esq., at Perkins Coie LLP represents Glazed in its restructuring efforts. When Glazed filed for protection from its creditors, it estimated assets and debts between $10 million to $50 million. KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently restructuring under the Companies' Creditors Arrangement Act. Pursuant to the Court's Initial Order, Ernst & Young Inc. was appointed as Monitor in KremeKo's CCAA proceedings. The Monitor is attempting to sell the KremeKo business. LA-DI-DA LIMITED: Calls In Joint Liquidators from Wilson Field -------------------------------------------------------------- Lisa Hogg and Claire Foster of Wilson Field were appointed Joint Liquidators of La-Di-Da (Newark) Limited on May 30 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: La-Di-Da (Newark) Limited 24 Middle Gate Newark Nottinghamshire NG241AL United Kingdom Tel: 01636 613 633 LANCASHIRE ON-LINE: Taps Begbies Traynor to Administer Assets ------------------------------------------------------------- D. R. Acland and S. H. Bell of Begbies Traynor were appointed joint administrators of Lancashire On-Line Learning Limited (Company Number 04490376) on Aug. 18. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Lancashire, United Kingdom, Lancashire On-line Learning Limited is engaged in adult education. LOGISTICAL SERVICES: Taps Liquidators from Acre House ----------------------------------------------------- Stephen Katz and David Birne of Acre House were appointed Joint Liquidators of Logistical Services Limited on June 9 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Logistical Services Limited 105 Carrow Road Norwich Norfolk NR1 1HP United Kingdom Tel: 01603 625 826 LONTEC GROUP: Names Joint Liquidators to Wind Up Business --------------------------------------------------------- Kevin Goldfarb and Stephen Draine were appointed Joint Liquidators of Lontec Group Ltd. on May 24 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Lontec Group Ltd. Unit 18 North Orbital Commercial Park Napsbury Lane St. Albans Hertfordshire AL1 1XB United Kingdom Tel: 01727 846 882 MAMMOTH RETECH: Shay Lettice Leads Liquidation Procedure -------------------------------------------------------- Shay Lettice was appointed Liquidator of Mammoth Retech Limited on June 5 for the purposes of the creditors' voluntary winding- up procedure. The company can be reached at: Mammoth Retech Limited 17 Hamden Way Papworth Everard Cambridge CB3 8UG United Kingdom Tel: 01480 830 349 MARTLET NATURAL: Brings In Menzies to Administer Assets ------------------------------------------------------- Andrew Gordon Stoneman and Paul John Clark of Menzies Corporate Restructuring were appointed joint administrators of Martlet Natural Food & Drink Limited (Company Number 05358034) on Aug. 21. Headquartered in London, Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- is a member of Moores Rowland International, an association of independent accounting firms throughout the world with some 20,800 partners and staff, operating from 628 offices in 92 countries. Headquartered in Wellingborough, United Kingdom, Martlet Natural Food & Drink Limited manufactures food products. METROPOLITAN DESIGN: Calls In Liquidator from Carter Clark ---------------------------------------------------------- A. J. Clark of Carter Clark was appointed Liquidator of Metropolitan Design Limited on May 26 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Metropolitan Design Limited 185 Thorndon Avenue West Horndon Brentwood Essex CM133TP United Kingdom Tel: 01277 812 733 NEEDLER FINANCIAL: Brings In Liquidator from Maidment Judd ---------------------------------------------------------- Anthony David Kent of Maidment Judd was appointed Liquidator of Needler Financial Services Limited on May 30 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Needler Financial Services Limited Suite 1 Broxbourne Business Centre The Fairways Cheshunt Waltham Cross Hertfordshire EN8 0NJ United Kingdom Tel: 01992 627 761 Web: http://www.moneyweb.co.uk/ NEWTON TRAINING: Taps Peter O'Hara to Liquidate Assets ------------------------------------------------------ Peter O'Hara of O'Hara & Co. was appointed Liquidator of Newton Training Limited on June 2 for the purposes of the creditors' voluntary winding-up procedure proceeding. The company can be reached at: Newton Training Limited Dale House South Dale Caistor Market Rasen Lincolnshire LN7 6LN United Kingdom Tel: 01652 678 079 NORTHERN INDUSTRIAL: Names Joint Administrators from DTE -------------------------------------------------------- J. M. Titley and A. Poxon of DTE Leonard Curtis were appointed joint administrators of Northern Industrial Roofing Limited (Company Number 02446083) on Aug. 17. DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. Northern Industrial Roofing Limited can be reached at: Howley Lane Warrington Cheshire WA1 2DN United Kingdom Tel: 01925 244 442 Fax: 01925 244 299 OCCO COOLERS: Calls In Joint Liquidators from Begbies Traynor ------------------------------------------------------------- Robert Michael Young and Ian Michael Rose of Begbies Traynor were appointed Joint Liquidators of Occo Coolers Limited on June 8 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Occo Coolers Limited Cemetery Road Dawley Bank Telford Shropshire TF4 2BS United Kingdom Tel: 01952 630 361 OSBORN & SIMMONS: Hires Joint Liquidators from Mercer & Hole ------------------------------------------------------------ John Anthony Dickinson and Christopher Laughton of Mercer & Hole were appointed Joint Liquidators of Osborn & Simmons Limited for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Osborn & Simmons Limited Tower Bridge Business Complex 100 Clements Road London SE164DG United Kingdom Tel: 020 7252 3951 PENDULUM PROPERTIES: Nominates Liquidator to Wind Up Business ------------------------------------------------------------- Andreas Georgiou Kakouris was nominated Liquidator of Pendulum Properties Limited on May 31 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Pendulum Properties Limited 16 The Grangeway London N21 2HG United Kingdom Tel: 020 8560 1111 PINNACLE SHEET: Brings In Kroll to Administer Assets ---------------------------------------------------- Simon Wilson and Philip Francis Duffy of Kroll were appointed joint administrators of Pinnacle Sheet Metal Limited (Company Number 02868024) on Aug. 17. 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 Oldham, United Kingdom, Pinnacle Sheet Metal Limited manufactures metal goods and parts. POWELL SECURITY: Eileen T. F. Sale Leads Liquidation Procedure -------------------------------------------------------------- Eileen T. F. Sale, of Sale Smith & Co. Limited was appointed Liquidator of Powell Security Systems Limited on June 13 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Powell Security Systems Limited 53 Churchfield Street Dudley West Midlands DY2 8QN United Kingdom Tel: 01384 256 960 PREMIER SPORTS: Creditors Confirm Liquidators' Appointment ---------------------------------------------------------- Creditors of Premier Sports (Midlands) Limited confirmed on May 25 the resolutions for voluntary liquidation and the appointment of Andrew Philip Wood and John Russell of The P&A Partnership as Liquidators of the company. The company can be reached at: Premier Sports (Midlands) Limited David Lloyd Leisure 247 Cranmore Boulevard Shirley Solihull West Midlands B90 4ZL United Kingdom Tel: 0121 744 6399 QUANSIS LIMITED: Creditors Ratify Liquidator's Appointment ---------------------------------------------------------- Creditors of Quansis Limited ratified on June 14 the resolutions for voluntary liquidation and the appointment of Jonathan Lord of Bridgestones as Liquidator of the company. The company can be reached at: Quansis Limited Ainley Industrial Estate Elland West Yorkshire HX5 9JP United Kingdom Tel: 01422 373 700 RANK GROUP: Mulls Job Cuts at Headquarters & Mecca Bingo Clubs -------------------------------------------------------------- The Rank Group Plc intends to cut 200 jobs at its Mecca Bingo clubs across the United Kingdom and 40 posts at its head office, BBC News reports. Around 24 jobs will go at its bingo clubs in Scotland, BBC says. The job losses, which follow a strategic review of all the company's operations, aims to cut the wages bill, as it transfers headquarters from London to Maidenhead. According to Chief Executive Ian Burke, the strategies' priorities and key actions to date include: * Re-energize Gaming division -- Thorough review of businesses undertaken and action plans implemented -- Simplified management structure put in place * Establish appropriate cost structure for continuing Group -- GBP6 million of annual cost savings identified within Corporate and Gaming central overhead -- GBP10 million of annual operational cost savings identified in Mecca Bingo clubs and Grosvenor Casinos * Maintain growth at Hard Rock and assess strategic options -- Strategic review of Hard Rock commenced -- Territorial development rights re-acquired * Exit Deluxe Media Services and other non-core interests -- Exit of Deluxe Media's U.K. operations complete -- Commenced review of exit options for US Holidays * Complete balance sheet restructuring -- GBP102 million returned via share buy-back; further GBP98 million to be returned -- GBP172 million net proceeds from sale and leaseback and exit of surplus properties About Rank Group Headquartered in London, Rank Group PLC -- http://www.rank.com/ -- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * On March 6, 2006, Moody's Investors Service assigned a Ba2 corporate family rating to The Rank Group Plc and concurrently downgraded the senior unsecured long-term debt ratings of Rank Group Finance Plc (guaranteed by The Rank Group Plc) to Ba2 from Baa3). At the same time, Fitch Ratings downgraded The Rank Group PLC's Long-term Issuer Default rating and Senior Unsecured ratings to BB- from BB+ and removed them from Rating Watch Negative. A Negative Outlook is assigned. The Short-term rating is affirmed at B. The downgrade follows the disposal of its film processing business, Deluxe Film, and confirmation of a return of capital to shareholders announced in conjunction with its 2005 preliminary results. In addition, Standard & Poor's Ratings Services lowered its long- and short-term corporate credit ratings on U.K.-based diversified leisure and entertainment company The Rank Group PLC to 'BB-/B' from 'BBB-/A-3'. S&P said the outlook is stable. RANK GROUP: Earns GBP9.6 Million in First Half of 2006 ------------------------------------------------------ The Rank Group Plc disclosed its interim results for the six months ended June 30, 2006. For the first half of 2006, the company posted an unaudited GBP9.6 million net income on GBP426.1 million in revenues, compared with a GBP5.1 million net income on GBP397.3 million in revenues for the six months period ended June 30, 2005. At June 30, 2006, the company's balance sheet showed GPB1.02 billion in total assets, GBP962.9 million in total liabilities and GBP54.6 million in stockholders' equity. "During the first half of the year, Rank has delivered revenue growth from continuing operations, and both Grosvenor Casinos and Hard Rock have generated double-digit improvements in operating profits. Mecca Bingo has held revenue steady but operating profit remains under pressure from rising business costs. Group profits have been held back by a number of non- recurring items relating to restructuring," Rank Group CEO Ian Burke said. "Over the course of recent months my senior management team and I have undertaken a thorough review of the Group. We have identified five strategic priorities for Rank and taken steps to address each of these. Our strategic priorities are: to re- energise our U.K. Gaming business; to establish an appropriate operating platform and cost structure for the continuing Group; to maintain the growth and assess the strategic fit of Hard Rock; to exit Deluxe Media Services; and to complete the restructuring of the Group's balance sheet," Mr. Burke added. About Rank Group Headquartered in London, Rank Group PLC -- http://www.rank.com/ -- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * On March 6, 2006, Moody's Investors Service assigned a Ba2 corporate family rating to The Rank Group Plc and concurrently downgraded the senior unsecured long-term debt ratings of Rank Group Finance Plc (guaranteed by The Rank Group Plc) to Ba2 from Baa3). At the same time, Fitch Ratings downgraded The Rank Group PLC's Long-term Issuer Default rating and Senior Unsecured ratings to BB- from BB+ and removed them from Rating Watch Negative. A Negative Outlook is assigned. The Short-term rating is affirmed at B. The downgrade follows the disposal of its film processing business, Deluxe Film, and confirmation of a return of capital to shareholders announced in conjunction with its 2005 preliminary results. In addition, Standard & Poor's Ratings Services lowered its long- and short-term corporate credit ratings on U.K.-based diversified leisure and entertainment company The Rank Group PLC to 'BB-/B' from 'BBB-/A-3'. S&P said the outlook is stable. RANK GROUP: Cancels 550,000 Shares in Buy Back Program ------------------------------------------------------ The Rank Group Plc purchased 550,000 Ordinary shares of 10 pence in the Company for cancellation at an average price of 213.35 pence per share. About Rank Group Headquartered in London, Rank Group PLC -- http://www.rank.com/ -- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * On March 6, 2006, Moody's Investors Service assigned a Ba2 corporate family rating to The Rank Group Plc and concurrently downgraded the senior unsecured long-term debt ratings of Rank Group Finance Plc (guaranteed by The Rank Group Plc) to Ba2 from Baa3). At the same time, Fitch Ratings downgraded The Rank Group PLC's Long-term Issuer Default rating and Senior Unsecured ratings to BB- from BB+ and removed them from Rating Watch Negative. A Negative Outlook is assigned. The Short-term rating is affirmed at B. The downgrade follows the disposal of its film processing business, Deluxe Film, and confirmation of a return of capital to shareholders announced in conjunction with its 2005 preliminary results. In addition, Standard & Poor's Ratings Services lowered its long- and short-term corporate credit ratings on U.K.-based diversified leisure and entertainment company The Rank Group PLC to 'BB-/B' from 'BBB-/A-3'. S&P said the outlook is stable. REFCO INC: Creditors Panel Wants Houlihan Lokey's Fees Increased ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Refco Inc., and its debtor-affiliates tells the U.S. Bankruptcy Court for the Southern District of New York that as the Debtors' Chapter 11 cases have progressed, its need for Houlihan Lokey Howard & Zukin Capital, Inc.'s services, as investment banker, has increased. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & Mccloy LLP, in New York, explains that causes for this increased workload include: (i) the increasing difficulty of assisting the Official Committee in its investigation of the Debtors' financial Affairs, as growing numbers of employees have left the company; (ii) the demands of multiple parties on Houlihan in connection with attempts to reach a global Chapter 11 plan for the Debtors as well as a settlement for Refco Capital Markets, Ltd. estate; and (iii) the investigation of potential causes of action against third parties, including actions against SPhinX Managed Futures Fund and BAWAG P.S.K. Mr. Despins asserts that Houlihan's continued participation has been indispensable to the plan process as well as the Creditors Committee's ability to reach settlements favorable to the Debtors' estates like those in both the SPhinX and BAWAG litigations -- settlements that have the potential to add more than $1,000,000 in value to those estates. Accordingly, the Official Committee asks Judge Drain to amend Houlihan's engagement as investment bankers and financial advisors to provide that: -- Houlihan will be entitled to a $7,000,000 increase in its initial transaction fee, above and beyond the $2,000,000 that it has already earned but has not yet been paid; and -- $50,000, rather than 50%, of each monthly fee after the ninth Monthly Fee will be credited against the Transaction Fee. With respect to monitoring the BAWAG sale process, the Creditors Committee proposes that Houlihan be paid an additional $50,000 monthly fee beginning August 1, 2006, for acting as "Committee Banker" pursuant to the BAWAG Settlement. Houlihan will also receive 1% of a Contingent Payment received by the Refco, Inc. estates from specified BAWAG transactions. However, to the extent the BAWAG Transaction Fee exceeds $1,000,000, 50% of the BAWAG Monthly Fees will be credited against the BAWAG Transaction Fee. The Creditors Committee believes that the fees are reasonable and fair compensation for Houlihan, considering that the scope of engagement and the results the firm has achieved have significantly exceeded that contemplated when both the parties' Initial Engagement Letter and an amended Engagement Letter. In addition, the Creditors Committee contends that the amended retention: -- is consistent with the six-month review of compensation provision in the firm's Initial Retention Letter and statements of counsel; -- is contemplated by reservation of rights in the final order approving the firm's retention; and -- reflects the Committee's high degree of satisfaction with the services rendered by and extraordinary results achieved by Houlihan to date. 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 $16.5 billion in assets and $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. 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) RISSINGTON FLOORING: Brings In Liquidator from Bottomley & Co. -------------------------------------------------------------- David Halstead Bottomley of Bottomley & Co. was appointed Liquidator of The Rissington Flooring Company Ltd. on May 26 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: The Rissington Flooring Company Ltd. 27 Snipe Road Upper Rissington Cheltenham Gloucestershire GL542NJ United Kingdom Tel: 01451 810 178 ROSE PERFORMANCE: Creditors Ratify Liquidators' Appointment ----------------------------------------------------------- Creditors of Rose Performance Consulting Limited ratified on May 30 the resolutions for voluntary liquidation and the appointment of Jason James Godefroy and Paul John Clark of Menzies Corporate Restructuring as Liquidators of the company. The company can be reached at: Rose Performance Consulting Limited 64 Bell Street Henley-On-Thames Oxfordshire RG9 2BN United Kingdom Tel: 01491 414 242 SABER LIMITED: Names Liquidator from Sinclair Harris ---------------------------------------------------- Jonathan Sinclair of Sinclair Harris was appointed Liquidator of Saber Limited on May 31 on for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Saber Limited 7A Church Lane London N2 8DX United Kingdom Tel: 020 8444 2550 SOUTHPORT ELECTRONICS: Taps Paul J. Fleming to Liquidate Assets --------------------------------------------------------------- Paul J. Fleming of Parkin S. Booth & Co. was appointed Liquidator of Southport Electronics Limited on June 14 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Southport Electronics Limited 22 Glebe Lane Southport Merseyside PR9 8EU United Kingdom Tel: 01704 228 510 SPECIAL RISKS: Appoints Joint Administrators from Bishop Fleming ---------------------------------------------------------------- Jeremiah Anthony O'Sullivan and Samuel Jonathan Talby of Bishop Fleming were appointed joint administrators of Special Risks Bureau Limited (Company Number 04567958) on Aug. 16. With offices in Bristol, Exeter, London, Plymouth, Torbay and Truro, United Kingdom, Bishop Fleming -- http://www.bishopfleming.co.uk/-- is one of the biggest firms of Chartered Accountants for South West U.K. businesses that demand expert accounting and financial accounts management. Headquartered in Essex, United Kingdom, Special Risks Bureau Limited -- http://www.specialrisksbureau.com/-- is an insurance agency. SYNERGY CARE: Appoints Clive Morris to Liquidate Assets ------------------------------------------------------- Clive Morris was appointed Liquidator of Synergy Care Limited on May 26 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Synergy Care Limited 14-16 Hoghton Street Southport Merseyside PR9 0PA United Kingdom Tel: 01704 500912 T.D.A. DESIGN: Hires Frank Anthony Hatch to Liquidate Assets ------------------------------------------------------------ Frank Anthony Hatch of F A Hatch & Co. was appointed Liquidator of T.D.A. Design and Engineering Limited on June 8 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: T.D.A. Design and Engineering Limited Lychgate House High Street Pattingham Wolverhampton West Midlands WV6 7BQ United Kingdom Tel: 01902 701 984 TAILORTECH LTD.: A. Evans Leads Liquidation Procedure ----------------------------------------------------- A. Evans of Bevan & Buckland was appointed Liquidator of TailorTech Ltd. on June 12 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: TailorTech Ltd. 20 Llangyfelach Street Swansea West Glamorgan SA1 2BQ United Kingdom Tel: 01792 462 332 TITANIUM METALS: Board Declares 6-3/4% Preferred Stock Dividend --------------------------------------------------------------- Titanium Metals Corp.'s board of directors has declared a quarterly dividend of US$0.84375 per share on its 6-3/4% Series A Preferred Stock. The dividends are payable on Sep. 15, 2006, to stockholders of record as of the close of business on Sept. 1, 2006. Headquartered in Denver, Colorado, Titanium Metals Corporation (NYSE: TIE) -- http://www.timet.com/-- is a worldwide producer of titanium metal products. * * * Moody's Investors Services placed a Caa1 issuer rating and B3 LT Corp Family Rating on Titanium Metals. TRIDENT BUILDING: Hires Joint Administrators from Hurst Morrison ---------------------------------------------------------------- Robert C. Keyes and Gareth W. Roberts of Hurst Morrison Thomson CR LLP were appointed joint administrators of Trident Building Components Limited (Company Number 01639823) on Aug. 22. Hurst Morrison Thomson CR LLP 5 Fairmile Henley on Thames Oxfordshire RG9 2JR Tel: +44 (0) 1491 579866 Fax: +44 (0) 1491 573397 E-mail: hmt@hmtgroup.co.uk Trident Building Components Limited can be reached at: Unit 14 Clivemont Road Maidenhead Berkshire SL6 7BU United Kingdom Fax: 01628 580 073 U.K. CONSTRUCTION: Creditors' Meeting Slated for September 7 ------------------------------------------------------------ Creditors of U.K. Construction Services Limited (Company Number 04553094) will meet at 11:00 a.m. on Sept. 7 at: UHY Hacker Young 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 Sept. 6 at: Robert Edward Caunce Cook and Nicholas Andrew Hancock Joint Administrators UHY Hacker Young St James Buildings 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 UNIVERSAL LOGISTICS: Names Kevin Goldfarb Liquidator ---------------------------------------------------- Kevin Goldfarb was appointed Liquidator of Universal Logistics Ltd. on June 9 for the purposes of the creditors' voluntary winding-up proceeding. The company can be reached at: Universal Logistics Ltd. Acrey Fields Woburn Road Wootton Bedford Bedfordshire MK439EJ United Kingdom Tel: 01234 766 500 VERITY APPOINTMENTS: Taps Begbies Traynor to Administer Assets -------------------------------------------------------------- Paul Michael Davis and Timothy John Edward Dolder of Begbies Traynor were appointed joint administrators of Verity Appointments Limited (Company Number 02810396) on Aug. 21. Headquartered in Watford, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Verity Appointments Limited can be reached at: 10 South Molton Street City of Westminster London W1K 5QJ United Kingdom Tel: 020 7493 0437 Fax: 020 7493 0467 WALLTALK GALLERIES: Hires Joint Liquidators from Wilson Field ------------------------------------------------------------- Lisa Hogg and Claire Foster of Wilson Field were appointed Joint Liquidators of WallTalk Galleries Limited on June 8 on for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: WallTalk Galleries Limited 27 Rustlings Road Sheffield South Yorkshire S11 7AA United Kingdom Tel: 0114 268 5585 WENTWOOD MANAGEMENT: Taps Liquidator from BN Jackson Norton ----------------------------------------------------------- Graham Lindsay Down of BN Jackson Norton was appointed Liquidator of Wentwood Management Limited on May 31 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Wentwood Management Limited 69A Uplands Crescent Uplands Swansea SA2 0EY United Kingdom Tel: 01792 470 025 ********* Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ ********* 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. 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