/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060914.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, September 14, 2006, Vol. 7, No. 183 Headlines A U S T R I A A. TRENTINI: Creditors' Meeting Slated for September 20 AMS NUSSBAUMER: Creditors' Meeting Slated for September 15 BAWAG PSK: Lack of Funds Prods OTP Bank to Reconsider Bid CORDT GERHARD: Claims Registration Ends September 22 CRC: Creditors' Meeting Slated for September 18 DIE KUECHE: Claims Registration Period Ends September 22 E + M: Property Manager Declares Insufficient Assets GESELLSCHAFT FUER TEAMENTWICKLUNG: Meeting Slated for Sept. 19 INN-FLEISCH: Claims Registration Period Ends September 20 INNOVENT: Creditors' Meeting Slated for September 21 LEONARDO GASTRO: Graz Court Orders Closing of Business F R A N C E CAP GEMINI: Improved Margins Spur S&P to Change Rating Outlook CAP GEMINI: Inks Partnership Agreement with Hindustan for Indigo G E R M A N Y DR. ERICH SPITZ: Claims Registration Ends September 28 DRUVE HEIZUNGS: Claims Registration Ends September 20 EVENT GROUP: Claims Registration Ends September 28 FIRSTREAM AG: Claims Registration Ends September 29 KARSTADQUELLE AG: Mail Order Unit Pursues Action vs. Fraudsters KOPP GMBH: Claims Registration Ends September 15 KURT UND ANDRE: Claims Registration Ends September 25 PB DOMICILE: S&P Rates EUR15.4-Mln Class E Notes at BB R. M. LICHT: Claims Registration Ends September 29 RAUSCHER MARKUS: Claims Registration Ends September 29 SCHEFENACKER AG: Financial Restructuring Cues S&P to Junk Rating SUMMIT REAL-ESTATE: Creditors' Meeting Slated for September 27 VOLKSWAGEN AG: Workers In Brazil to Vote on Labor Plan Today WORLDWIDE FOOD: Claims Registration Ends September 29 H U N G A R Y AES CORP: Selling 33% Stake in Eletropaulo Metropolitana I R E L A N D DALI CAPITAL: Moody's Assigns (P)Ba3 Rating to Series 23 Notes EUROCREDIT CDO: Moody's Rates EUR24-Mln Class E Notes at Ba3 I T A L Y ALITALIA SPA: Posts EUR221 Million Net Loss for First Half 2006 PARMALAT SPA: Grand Cayman Court Names Kroll as Liquidator PARMALAT SPA: Sells Stake In Italcheese & Australian Business K A Z A K H S T A N AJSK: Creditors Must File Claims by Oct. 10 ALATAU: Creditors Must File Claims by Oct. 10 ARDAGER-MUNAY: Akmola Court Opens Bankruptcy Proceedings ARSI SERVICE: Proof of Claim Deadline Slated for Oct. 10 DASTAR: Proof of Claim Deadline Slated for Oct. 6 DELTA PLUS-2: Akmola Court Begins Bankruptcy Proceedings KAZPOST JSC: Weak Profile Prompts S&P to Affirm BB+ Rating LARUS-UNITUM MODULE: Atyrau Court Starts Bankruptcy Procedure OKSI-AGRO: Claims Registration Ends Oct. 6 PROGRESS KASPYI: Atyrau Court Commences Bankruptcy Proceedings TECHNOSPETSSTROY: Atyrau Court Starts Bankruptcy Proceedings TEMIR-KAZYK: Claims Registration Ends Oct. 6 TEPLOSET: Creditors' Claims Due Oct. 6 TULPAR STROY: Creditors' Claims Due Oct. 18 TUMAR LOGISTIC: Akmola Court Starts Bankruptcy Procedure ZHETYSU COMMERCE: Creditors Must File Claims by Oct. 18 K Y R G Y Z S T A N FLINT: Proof of Claim Deadline Slated for Oct. 18 MBI COMPANY: Creditors Must Submit Claims by Oct. 18 OSHSTROY: Claims Registration Ends Oct. 18 L A T V I A PARITATE BANK: Moody's Assigns E+ Financial Strength Rating R U S S I A AVANGARD: Court Names S. Ryabov as Insolvency Manager BUTURLINSKIY DIARY: Court Names V. Morozov as Insolvency Manager CEDAR: Leningrad Court Names M. Golubeva as Insolvency Manager CORNELIAN: Court Names M. Vasilega as Insolvency Manager DIVEEVSKIY BUTTER: Court Names P. Milov as Insolvency Manager EDINSTVO: Court Names V. Morozov as Insolvency Manager FERRUM-STROY: Sakhalin Court Names V. Glik as Insolvency Manager FILLIPOV: Court Names E. Golenkov as Insolvency Manager GAZPROM OAO: Ukraine Presents Scheme to Keep US$95 Gas Price GORODETSKIY SHIPYARD: Bankruptcy Hearing Slated for Dec. 26 GRAVEL FACTORY: Court Names A. Mazur as Insolvency Manager KEZSKIY FLAX: Udmurtiya Court Starts Bankruptcy Supervision KIROVETS: Court Names L. Kornilova as Insolvency Manager KORKINSKIY DIARY: Court Starts Bankruptcy Supervision MIKHAYLOVSKOYE: Altay Court Starts Bankruptcy Supervision MONOLITH-V: Moscow Court Names M. Sorokin as Insolvency Manager NOVOPOKRORVSK-AGRO: Bankruptcy Hearing Slated for Oct. 17 OMSK-LEATHER: Court Names A. Budelev as Insolvency Manager REINFORCED CONCRETE: Bankruptcy Hearing Slated for Nov. 2 RUSSIAN FOREST: Court Names O. Feldman as Insolvency Manager SARAKTASHSKIY: Court Names O. Suslov as Insolvency Manager SEVER-TRANSPORT: Sverdlovsk Court Starts Reorganization Process SIBERIAN STOCKINET: Bankruptcy Hearing Slated for Nov. 28 SUAL GROUP: Finalizing Rusal Merger by Oct. 1, Report Says THEATRICAL EQUIPMENT: Court Starts Bankruptcy Supervision TOYS LIBERTY: Court Names D. Yaroslavtsev as Insolvency Manager VEGETABLES OF URAL: V. Vshivkov to Manage Insolvency Assets VNESHTORGBANK JSC: Buys 5% Stake in EADS for EUR922 Million VOLGOGRADSKIY INDUSTRIAL: V. Goncharov to Manage Assets WOODWORKING COMPANY: Bankruptcy Hearing Slated for Nov. 21 YUKOS OIL: Federal Court Nixes Moravel Appeal on US$680M Charge YUKOS OIL: Federal Court Denies State Appeal for Extra Tax Bill YUKOS OIL: To Seek US$50 Billion in Damages From Russia ZEMETCHINO-SUGAR: Court Names A. Bespalov as Insolvency Manager S P A I N IM CAJAMAR: Moody's Junks EUR12-Million Series E Notes PYME BANCAJA: Moody's Rates EUR28.7-Mln Series D Notes at (P)C U K R A I N E DUKO LLC: Donetsk Court Names Privatbank to Liquidate Assets GAZPROM OAO: Ukraine Presents Scheme to Keep US$95 Gas Price LADA-N: Court Names Mihajlo Tsurika as Insolvency Manager MARIOL-TEHNO MIKOLAIV: Court Names Mihajlo Tsurika as Liquidator SHALFEJNE: Court Names Vasil Kuhta as Insolvency Manager TISSA: Court Names Mihajlo Tsurika as Insolvency Manager TRANSUNIVERSAL: Court Names Nina Saricheva as Liquidator VASKO: Ivano-Frankivsk Court Names Andrji Budz as Liquidator U N I T E D K I N G D O M 4 CLEAN: Appoints Joint Administrators from Gerald Edelman A AND A: Taps C. H. I. Moore to Liquidate Assets ALAN CORPORATE: Creditors Ratify Voluntary Liquidation BAA PLC: Reports GBP13 Million Cost From August Terror Alert BAGUETTE BITE: Brings In Milner Boardman as Joint Administrators BIG HAIRY: Appoints Peter Engel as Liquidator BRADLEY COMMUNICO: Hires T. Papanicola to Liquidate Assets CARPET COURIERS: Brings In Liquidators from Vantis Redhead CHELSEA CARPET: Appoints Liquidator from Rendell Thomson CLUB HEAVEN: Brings In Liquidator from Begbies Traynor COLLINS & AIKMAN: Customers Oppose Committee's Planned Inquiries COOL-TOOLS: Creditors Confirm Liquidator's Appointment CORLEY AND LAWRENCE: Creditors Confirm Voluntary Liquidation COTSWOLD HONEY: Taps Menzies to Administer Assets COTSWOLD SPECIALITY: Appoints Joint Administrators from Menzies D & A SPORTS: Hires Liquidators from Gerald Edelman D M DONNER: Appoints Peter O'Hara as Liquidator DESIGNERWEAR SHOP: Names Salman Saud to Liquidate Assets DOVE VALLEY: Creditors Confirm Voluntary Liquidation E. MELLIT: Brings In Administrators from Begbies Traynor E. SKORSKI: Appoints Joint Liquidators from Begbies Traynor ETHNIC FOOD: Names Liquidator from Kay Johnson Gee EUROLIFE ASSURANCE: Appoints Administrators from F A Simms EUROLIFE CAPITAL: Brings In Administrators from F A Simms FAST COMMERCIALS: Taps Liquidator from Kay Johnson Gee FIBA-FIL: Brings In Jonathan M. Timmis to Liquidate Assets HENDON GLAZING: Calls In Joint Liquidators from Begbies Traynor INEOS VINYLS: Acquisition Cues Moody's to Confirm B3 Rating INTELSAT: Launches Broadband Services with European Companies INTELSAT LTD: Works with Telenor to Expand Network Coverage KRISPY KREME: Expects to Report Lower Second Quarter Revenues LEONARD FIELD: Appoints Joint Liquidators from Begbies Traynor LONDON BATHROOM: Nominates Liquidators from Abbott Fielding MAPLE PRESS: Hires Joint Administrators from Tenon Recovery METROPOLIS INT'L: Taps Ian William Kings to Liquidate Assets MID ESSEX: Creditors Confirm Liquidator's Appointment MONOCHROME EXPRESS: C. H. I. Moore Leads Liquidation Procedure NORTHERN PACKAGING: Calls In Liquidator from Debtmatters Ltd. NORTHERN REFRIGERATION: Claims Filing Period Ends Oct. 31 OAKBUILD SERVICES: Taps Stephen Evans to Liquidate Assets OLIVE GROVE: Appoints Liquidator from Parkin S. Booth & Co. OLYMPIA FOODS: Names Jonathan Elman Avery-Gee Liquidator OMEGA DESIGN: Nominates Timothy Frank Corfield as Liquidator PARA-FAIR: Creditors Confirm Voluntary Winding-Up Procedure PRINT 2000: Creditors Confirm Voluntary Liquidation QUADRO CONSULTING: Creditors Ratify Voluntary Liquidation RICHARD BARRY: G. W. Rhodes Leads Liquidation Procedure RIVERSIDE CONFERENCE: Names Eileen T. F. Sale Liquidator S.T.A.R. CONSULTANCY: Creditors Confirm Liquidator's Appointment SABRE EMPLOYMENT: Hires Mark Peter Jones to Liquidate Assets SCENE INTERIORS: Calls In Joint Liquidators from Begbies Traynor SCOTTISH RE: On Track of Auction Process, Chief Executive Says SCOTTISH RE: Will Launch Second Round of Bidding for Company SHEP ASSOCIATES: Brings In Liquidators from F A Simms SHERWOOD CASTLE: Moody's Assigns (P)Ba2 Ratings to Notes SHERWOOD CASTLE: S&P Assigns Low-B Ratings to EUR53-Mln Notes SHILDON PALLETS: Appoints T. Papanicola to Administer Assets SPECIALIST JOINERY: Names A. H. Tomlinson to Liquidate Assets STEEL TEAM: Nominates Joint Liquidators from Abbott Fielding STEPHEN BROWN: Names Timothy John Hargreaves as Administrator SWITCH DESIGN: Appoints N. A. Bennett to Liquidate Assets TOWERACTION LIMITED: Brings In Liquidator from Redman Nichols VIZ COMIC: Taps William Paxton to Liquidate Assets WORLD END: Creditors Confirm Liquidators' Appointment XMP SERVICE: Appoints Ian William Kings to Liquidate Assets * FTI Consulting to Acquire Financial Dynamics for $260 Million * PricewaterhouseCoopers Launches New Restructuring Practice * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= A. TRENTINI: Creditors' Meeting Slated for September 20 ------------------------------------------------------- Creditors owed money by LLC A. Trentini (FN 129122k) are encouraged to attend the creditors' meeting at 9:45 a.m. on Sept. 20 to consider the creditors' compensation payment. The creditors' meeting will be held at: The Trade Court of Vienna Room 1607 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 26 (Bankr. Case No. 28 Sa 3/06d). Christian Bachmann serves as the court-appointed compensation manager of the bankrupt estate. The compensation manager can be reached at: Christian Bachmann Opera Ring 8 1010 Vienna, Austria Tel: 512 87 01 Fax: 513 82 50 E-mail: bachmann.rae@aon.at AMS NUSSBAUMER: Creditors' Meeting Slated for September 15 ---------------------------------------------------------- Creditors owed money by LLC AMS Nussbaumer (FN 102192h) are encouraged to attend the creditors' meeting at 10:00 a.m. on Sept. 15 to consider the adoption of the rule by revision. The creditors' meeting will be held at: Trade Court of Vienna Room 1607 Vienna, Austria Headquartered in Vienna, Austria, the Debtor's bankruptcy case (Bankr. Case No. 28 S 15/06v) was removed from (Bankr. Case No. 36 S 18/05t) on March 28. BAWAG PSK: Lack of Funds Prods OTP Bank to Reconsider Bid --------------------------------------------------------- OTP Bank Plc, Hungary's largest retail bank, will not bid for Austrian bank Bawag P.S.K., citing lack of sufficient funds. As reported in TCR-Europe on July 10, OTP Bank said it was "evaluating BAWAG and deciding whether it's worth its resources to engage in the tender process," people privy to the company told Reuters. According to the source, OTP is eyeing Bawag's good position in the Austrian banking market, which it described as "mature but still growing." The Hungarian bank, however, would fall short of cash if it would take over Bawag since OTP recently acquired banks in Russia, Serbia and Ukraine. "At this point, OTP doesn't have the cash," the source further relays. "It could raise the money, possibly through issuing new shares but as it stands, it doesn't have the money." OTP's Board of Directors, AFX News reports, voted against launching a bid for Bawag. "OTP Bank announces that based on the decision of its Executive Board, the Bank does not participate in the tender for the sale of Vienna-based BAWAG P.S.K. Bank," the bank said. Both OTP chairman Sandor Csanyi and deputy CEO Laszlo Wolf had hinted the bank might bid for Bawag. "There will be much competition for the bank and the smaller growth on Austria's market relative to the market in Eastern Europe must be taken into consideration when pricing the bank," Mr. Wolf noted. "As we said already last week, BAWAG is too big for OTP to buy, and not a target in line with OTP's strategy," Jiri Stanik of Wood & Co. told Fortfolio.hu. OTP also denied reports in Austrian daily Der Standard that it plans to submit a joint bid with U.S. billionaire George Soros. OTP's decision followed announcements by Austria's Erste Banka and Bank Austria Creditanstalt that they would not also bid for Bawag. Osterreichischer Gewerkschaftsbund (OeGB), Bawag's parent company, officially began the bank's sale process in mid-July. Morgan Stanley, which began inviting bids after Bawag inked a US$675 million settlement deal with RefCo Inc. investors, will allow 10-12 possible buyers to access Bawag's accounts in September or October this year. Chief Executive Ewald Nowotny said that a number of parties have expressed interest in acquiring the financially embattled bank. OeGB, previously disclosed that it prefers to sell the bank as a whole and not in pieces indicating that the purchaser can break up the bank after the sale. OeGB has placed Bawag on the trading table following the bank's alleged role in the collapse of Refco. About OTP Bank Headquartered in Budapest, Hungary, OTP Bank Ltd., -- http://www.otpbank.hu/-- provides providing institutional, commercial, corporate, and private-level banking. The company operates around 430 banks in Hungary. About BAWAG Headquartered in Vienna, Austria, BAWAG P.S.K. (Bank fur Arbeit und Wirtschaft AG) is an Austrian universal bank founded in 1922 by former Austrian Chancellor Karl Renner. As of 2004, the bank's majority shareholder was the OGB (Osterreichischer Gewerkschaftsbund), the Austrian Trade Union Federation. The bank had total consolidated assets of EUR56 billion as of Dec. 31, 2004. * * * As reported in the TCR-Europe on May 11, Moody's downgraded BAWAG P.S.K's: -- financial strength rating (BFSR) to D- from C-; -- Tier 1 debt rating to Baa3 from Baa2. Both ratings remain under review for possible downgrade. At the same time, Moody's has also downgraded to Prime-2 with stable outlook from Prime-1 the bank's short-term debt and deposit rating. The A3 long-term debt and deposit ratings and the Baa1 subordinated debt rating remain on review for possible downgrade. These ratings were downgraded as part the rating action: -- BAWAG P.S.K.: bank financial strength rating from C- to D-; -- BAWAG P.S.K.: short-term rating from P-1 to P-2; -- BAWAG P.S.K. CAPITAL Finance (Jersey) Ltd.: debt and deposit rating to Baa3 from Baa2; -- BAWAG P.S.K. Capital Finance (Jersey) II Ltd.: debt and deposit rating to Baa3 from Baa2; and -- BAWAG P.S.K. Capital Finance (Jersey) III Ltd.: debt and deposit rating to Baa3 from Baa2. These ratings are under review for possible downgrade: -- BAWAG P.S.K.: bank financial strength rating of D-; -- BAWAG P.S.K.: long-term debt and deposit CORDT GERHARD: Claims Registration Ends September 22 ---------------------------------------------------- Creditors owed money by LLC Cordt Gerhard Dipl.Ing.Dr. have until Sept. 22 to file written proofs of claims to court- appointed property manager Peter Perner at: Dr. Peter Perner Karolingerstrasse 1 5020 Salzburg, Austria Tel: 0662/826661 Fax: 0662/826661-10 E-mail: office@dr-perner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on Oct. 5 to consider the adoption of the rule by revision. The meeting of creditors will be held at: The Land Court of Salzburg Room 221 2nd Floor Salzburg, Austria Headquartered in Zell am See, Austria, the Debtor declared bankruptcy on July 26 (Bankr. Case No. 23 S 48/06p). CRC: Creditors' Meeting Slated for September 18 ----------------------------------------------- Creditors owed money by LLC CRC (FN 216238y) are encouraged to attend the creditors' meeting at 10:45 a.m. on Sept. 18 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Eisenstadt Hall F Eisenstadt, Austria Headquartered in Oberwart, Austria, the Debtor declared bankruptcy on July 26 (Bankr. Case No. 26 S 79/06d). Gertraud Hofer serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Gertraud Hofer Main Place 11 Atrium Top 16 A 7400 Oberwart, Austria Tel: 03352/31375 Fax: 03352/31375-16 E-mail: dr.hofer@utanet.at DIE KUECHE: Claims Registration Period Ends September 22 -------------------------------------------------------- Creditors owed money by LLC Die KUECHE Hoecketstaller (FN 41690i) have until Sept. 22 to file written proofs of claims to court-appointed property manager Christian Maurer at: Mag. Christian Maurer Paris Lodron Road 3a 5020 Salzburg, Austria Tel: 0662/879998 Fax: 0662/879998-20 E-mail: office@smbi.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on Oct. 5 to consider the adoption of the rule by revision. The meeting of creditors will be held at: The Land Court of Salzburg Room 221 2nd Floor Salzburg, Austria Headquartered in Salzburg, Austria, the Debtor declared bankruptcy on July 26 (Bankr. Case No. 23 S 51/06d). The Debtor's manager, Michael Andreas Hoecketstaller, represents the Debtor in the bankruptcy proceedings. E + M: Property Manager Declares Insufficient Assets ---------------------------------------------------- Dr. Brigitte Stampfer, the court-appointed property manager for LLC E + M (FN 173674d), declared on July 26 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 10 (Bankr. Case No. 2 S 115/06h). The property manager can be reached at: Dr. Brigitte Stampfer Stadlergasse 27 1130 Vienna, Austria Tel: 877 33 30 E-mail: ra-stampfer@utanet.at GESELLSCHAFT FUER TEAMENTWICKLUNG: Meeting Slated for Sept. 19 -------------------------------------------------------------- Creditors owed money by LLC Gesellschaft fuer Teamentwicklung (FN 220120g) are encouraged to attend the creditors' meeting at 1:30 p.m. on Sept. 19 to consider the final calculation of creditors' claims. Creditors will receive 20% recovery on account of their claim. The creditors' meeting will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt, Austria Headquartered in Leobersdorf, Austria, the Debtor declared bankruptcy on March 3 (Bankr. Case No. 11 S 19/06i). Gerald Hegenbart serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Mag. Gerald Hegenbart Emperor Franz Ring 13 2500 Baden bei Wien, Austria Tel: 02252/85500 Fax: 02252/42577 E-mail: g.hegenbart@advokat-baden.at INN-FLEISCH: Claims Registration Period Ends September 20 --------------------------------------------------------- Creditors owed money by LLC INN-FLEISCH (FN 136828v) have until Sept. 20 to file written proofs of claims to court-appointed property manager Christoph Danner at: Mag. Christoph Danner c/o Dr. Ernst Grubeck Lamprechtstr. 2 4780 Schaerding, Austria Tel: 07712 / 5133 Fax: 07712 / 5133 20 E-mail: office@grubeck-danner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on Sept. 27 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: Land Court of Ried im Innkreis Hall 101 1st Floor Ried im Innkreis, Austria Headquartered in Wernstein am Inn, Austria, the Debtor declared bankruptcy on July 26 (Bankr. Case No. 17 S 29/06f). Ernst Grubeck represents Mag. Christoph Danner in the bankruptcy proceedings. INNOVENT: Creditors' Meeting Slated for September 21 ---------------------------------------------------- Creditors owed money by LLC Innovent (FN 195759g) are encouraged to attend the creditors' meeting at 9:10 a.m. on Sept. 21 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Feldkirch Hall 45 1st Floor Feldkirch, Austria Headquartered in Dornbirn, Austria, the Debtor declared bankruptcy on July 26 (Bankr. Case No. 13 S 39/06z). Ralph Vetter serves as the court-appointed property manager of the bankrupt estate. Andreas Fritsch represents Dr. Vetter in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Ralph Vetter c/o Dr. Andreas Fritsch Realm Yard Route 11 6890 Lustenau, Austria Tel: 05577/89300 Fax: 05577/89300-20 E-mail: vetter-fritsch@aon.at LEONARDO GASTRO: Graz Court Orders Closing of Business ------------------------------------------------------ The Land Court of Graz entered an order on July 26 closing the business of LLC Leonardo Gastro (FN 220053h). Court-appointed property manager Regina Schedlberger determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Regina Schedlberger Andritzer Reichsstrasse 42 8045 Graz - Andritz, Austria Tel: 0316/695100 Fax: 0316/6951009 E-mail: regina.schedlberger@chello.at Headquartered in Graz, Austria the Debtor declared bankruptcy on July 6 (Bankr. Case No. 26 S 71/06w). Werner Freistatter and Peter Freistatter - managers, represent the Debtor in the bankruptcy proceedings. =========== F R A N C E =========== CAP GEMINI: Improved Margins Spur S&P to Change Rating Outlook -------------------------------------------------------------- Standard & Poor's Ratings Services revised to positive from stable its outlook on France-based IT services provider Cap Gemini S.A., as the group has demonstrated ongoing improvements in its margins and free cash flow generation, recent gains in market share, and significantly better financial controls. At the same time, the 'BB+' long-term corporate credit and senior unsecured debt ratings were affirmed. At June 30, 2006, Cap Gemini reported consolidated gross on- balance-sheet debt of EUR1.2 billion. The company posted a 4.8% operating margin before restructuring in first-half 2006, up from 1.8% in first-half 2005. "The positive outlook recognizes the medium-term possibility of an upgrade if Cap Gemini manages to affirm the improvements it has made in its margin and free cash flow in 2007 and beyond," said Standard & Poor's credit analyst Patrice Cochelin. Standard & Poor's expects Cap Gemini to take part in the ongoing consolidation in the sector, although it also anticipates that any midsize to large acquisitions would be essentially equity funded, in line with the company's practices, with careful assessment of the related integration risks. "We do not expect the company to issue any new debt in the medium term, although part of Cap Gemini's cash pile could be used for small acquisitions or to fund the company's defined- benefit pension gap, without affecting the rating," added Mr. Cochelin. CAP GEMINI: Inks Partnership Agreement with Hindustan for Indigo ---------------------------------------------------------------- Hindustan Lever Limited has reached an agreement with Cap Gemini S.A., to acquire a 51% stake in Unilever India Shared Services Limited (Indigo). Indigo is currently a fully owned subsidiary of HLL, providing BPO services to a number of Unilever companies, including HLL, around the world. Terms of the agreement were not disclosed and the transaction is expected to be completed in October 2006. The partnership with Capgemini will bring world-leading financial BPO practices to HLL and to Unilever. Indigo's domain knowledge and deep capabilities built in the FMCG sector coupled with Capgemini's BPO expertise will enable Indigo to leverage its strengths and offer services to customers outside the Unilever Group. The partnership arrangement will ensure smooth implementation of HLL's transition into SAP as the ERP platform, as well as in other ongoing projects. The partnership with Unilever will strongly supplement Capgemini's market-leading business process outsourcing capabilities in finance and accounting in India and support Capgemini's strategy to enhance the existing BPO global delivery network in Poland, China, India, Australia, USA and Canada. It will also bring to Capgemini tremendous capabilities around innovative services like compliance and control assurance. Capgemini already has about 6000 professionals performing work in India (in Bangalore, Kolkata and Mumbai) and aims to reach the strategic objective of 10,000 employees in India by the end of 2007. Indigo is a provider of financial shared services and Sarbanes Oxley compliance services to the Unilever Group throughout the world. It has operating centers in Bangalore and Chennai and has nearly 600 professionals, including about 75 Chartered Accountants, working in these centers. It currently serves Unilever companies in about 45 countries in Asia, Africa, Australasia, Europe and North America. Indigo has rich experience of migrating and operating a variety of accounting and financial services across a number of countries and has considerable domain expertise in servicing the Fast Moving Consumer Goods industry. Mr. D. Sundaram, Finance Director of HLL and Chairman of Indigo said, "the partnership with Capgemini brings global shared services skills and technology to HLL and Unilever. It also enables leveraging the current Indigo expertise and capabilities and represents an exciting opportunity for Indigo employees to extend the business outside of the Unilever Group". "This acquisition reaffirms Capgemini's commitment to increasing its presence worldwide, in particular in India, and strengthening its position in BPO F&A services. We will greatly benefit from the expertise of the Indigo team, consolidating our capabilities to serve a wide range of clients," said Hubert Giraud - Chief Executive Officer, BPO Capgemini. About Hindustan Lever HLL is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians. HLL's mission is to "add vitality to life" through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. About Capgemini Headquartered in Paris, France, Cap Gemini S.A. -- http://www.capgemini.com/-- is one of the world's foremost providers of Consulting, Technology and Outsourcing services, has a unique way of working with its clients, which it calls the Collaborative Business Experience. The company helps businesses implement growth strategies, leverage technology, and thrive through the power of collaboration. Capgemini reported 2005 global revenues of EUR6.954 billion and employs approximately 61,000 people worldwide. * * * Standard & Poor's Ratings Services revised to positive from stable its outlook on France-based IT services provider Cap Gemini S.A., as the group has demonstrated ongoing improvements in its margins and free cash flow generation, recent gains in market share, and significantly better financial controls. At the same time, the 'BB+' long-term corporate credit and senior unsecured debt ratings were affirmed. ============= G E R M A N Y ============= DR. ERICH SPITZ: Claims Registration Ends September 28 ------------------------------------------------------ Creditors of Dr. Erich Spitz Consult Ingenieurgesellschaft mbH have until Sept. 28 to register their claims with court- appointed provisional administrator Dirk-Henning Toennesmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 13 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall W126 1. Stick William Route 21 53111 Bonn, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bonn opened bankruptcy proceedings against Dr. Erich Spitz Consult Ingenieurgesellschaft mbH on Aug. 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Dr. Erich Spitz Consult Ingenieurgesellschaft mbH Charleviller Place 29 53879 Euskirchen, Germany Attn: Dr. Erich Spitz, Manager Augenbroicher Str. 100 53879 Euskirchen, Germany The administrator can be contacted at: Dirk-Henning Toennesmann Josef-Ruhr-Str. 30 53879 Euskirchen, Germany Tel: 02251/65081-22 Fax: 02251/65081-25 DRUVE HEIZUNGS: Claims Registration Ends September 20 ----------------------------------------------------- Creditors of Druve Heizungs- und Sanitarbau GmbH have until Sept. 20 to register their claims with court-appointed provisional administrator Wolfgang Weber. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Oct. 13 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Schwarzenbek Hall 3 Moellner Str. 20 Schwarzenbek, 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 Schwarzenbek opened bankruptcy proceedings against Druve Heizungs- und Sanitarbau GmbH on Aug. 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Druve Heizungs- und Sanitarbau GmbH Attn: Heinz Markus Druve, Manager Main Street 14 23847 Kastorf, Germany The administrator can be contacted at: Wolfgang Weber Lauenburger Road 15 21493 Schwarzenbek, Germany EVENT GROUP: Claims Registration Ends September 28 -------------------------------------------------- Creditors of Event Group GmbH have until Sept. 28 to register their claims with court-appointed provisional administrator Volker Quinkert. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 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 during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Duesseldorf opened bankruptcy proceedings against Event Group GmbH on Aug. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Event Group GmbH Gilleshuette 99 41352 Korschenbroich, Germany Attn: Klaus Hartmann, Manager Old Krefelder Road 75 47829 Krefeld, Germany The administrator can be contacted at: Volker Quinkert Brucknerallee 6 41236 Moenchengladbach, Germany FIRSTREAM AG: Claims Registration Ends September 29 --------------------------------------------------- Creditors of Firstream AG have until Sept. 29 to register their claims with court-appointed provisional administrator Christian Gerloff. Creditors and other interested parties are encouraged to attend the meeting at 8:50 a.m. on Oct. 31 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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 Firstream AG on Aug. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Firstream AG c/o Dr. Werner Weber Thuillestrasse 52 81247 Munich, Germany The administrator can be contacted at: Christian Gerloff Nymphenburger Str. 139 80636 Munich, Germany Tel: 089/120260 Fax: 089/12026137 KARSTADQUELLE AG: Mail Order Unit Pursues Action vs. Fraudsters --------------------------------------------------------------- Quelle GmbH, mail order unit of KarstadQuele AG, initiated legal proceedings with the Dessau police authorities against persons unknown on account of suspicion of several cases of serious fraud. The fraud involved illegally accessing and manipulating storeowner and customer data, ordering goods on account of third parties, using false addresses, and subsequently failing to pay for goods. The perpetrators evidently exploited a temporary gap in Quelle's IT system that had arisen following a software update and which was immediately rectified once it was discovered, as a result of which further misuse can now be excluded. The resulting economic damage is limited. While no Quelle customers suffered any loss, the company has reimbursed a number of individual Quelle storeowners who did suffer financial loss as a result of the fraud. The IT companies Atosorigin GmbH and Itellium GmbH examine all Quelle's IT systems for weak points on a permanent and systematic basis and immediately rectify any problems in the event that these are discovered. Quelle thus intentionally subjects itself to a series of systematic security controls so as to be able to guarantee data security at all times. The company has now further intensified these already stringent measures. Data security at Quelle meets the security standards for German distance retail trade. "For a short period of time, Quelle unfortunately fell prey to defrauders, who illegally accessed data and used this for their economic benefit, Gerd Koslowski, spokesman, said. "We regret this. Our customers did not suffer any losses as a result of the above. We responded rapidly and systematically to guarantee the security of our customer data. We urgently recommend our customers not to pass on personal information that allows access to their personal Quelle account personal information such as their date of birth or customer number to third parties," said. About KarstadtQuelle Headquartered in Essen, Germany, KarstadtQuelle AG -- http://www.karstadtquelle.com/-- operates department stores and mail order businesses. It has annual sales of EUR15.5 billion and employs around 70,000. The retailer has been suffering from sluggish consumption and high unemployment rate in Germany. KarstadtQuelle posted an EBITDA of -EUR428 million in 2004. The group is currently restructuring operations by selling off non- core assets and implementing cost-saving measures. The group achieved and exceeded its targets for the 2005 financial year. Group sales, adjusted for the strong impact of the realignment, were EUR15.45 billion, compared to EUR16.14 billion in the previous year, down 4.2 percent. Adjusted EBITDA improved by 5.1 percent to EUR544 million, compared to EUR518 million in the previous year. In 2005, net financial liabilities were reduced by a third to EUR3.0 billion (including Thomas Cook), down from EUR4.5 billion in the previous year. In the first six months of 2006, adjusted group sales totaled EUR6.5 billion (2005: EUR6.8 billion). Adjusted EBITDA declined to -EUR41.7 million (2005: -EUR19.4 million). As of June 30, 2006, net financial liabilities (pro forma) stood at EUR600 million. KOPP GMBH: Claims Registration Ends September 15 ------------------------------------------------ Creditors of Kopp GmbH have until Sept. 15 to register their claims with court-appointed provisional administrator Thomas Luger. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Oct. 25 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Ludwigsburg Hall 2008 Palace Schuetz Schorndorfer Road 28 Ludwigsburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Ludwigsburg opened bankruptcy proceedings against Kopp GmbH on July 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kopp GmbH Attn: Ilona Kopp, Manager Kronenstr. 9 70825 Korntal Muenchingen, Germany The administrator can be contacted at: Thomas Luger Olgastr. 54 70182 Stuttgart, Germany KURT UND ANDRE: Claims Registration Ends September 25 ----------------------------------------------------- Creditors of Kurt und Andre Kohlmann GbR have until Sept. 25 to register their claims with court-appointed provisional administrator Thomas Guenther. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Oct. 26 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Room 033 Leipzig, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Leipzig opened bankruptcy proceedings against Kurt und Andre Kohlmann GbR on Aug. 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kurt und Andre Kohlmann GbR Attn: Andre Kohlmann, Manager Roedgener Anger 17 04509 Delitzsch, Germany The administrator can be contacted at: Thomas Guenther Spruce Road 3 04275 Leipzig, Germany PB DOMICILE: S&P Rates EUR15.4-Mln Class E Notes at BB ------------------------------------------------------ Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR117.8 million floating-rate credit- linked notes and EUR64.3 million deferrable floating-rate credit-linked notes to be issued by PB Domicile 2006-1 PLC, a special-purpose entity. The transaction is structured as a synthetic, partially funded RMBS that benefits from a synthetic excess spread mechanism. The purpose is to transfer the credit risk associated with a pool of residential mortgage loans that are currently on the balance sheet of Deutsche Postbank AG (A/Negative/A-1). These loans were originated in Germany by Postbank. "This is the first synthetic German RMBS transaction to introduce a synthetic excess spread mechanism," said Standard & Poor's credit analyst Volker Laeger. The excess spread is set at 57 bps a year on the performing balance of the portfolio and is available to cover current losses, to cure losses that resulted in note write-downs in previous periods, and to cure interest payments that were missed due to those write-downs. Mr. Laeger added: "Because this mechanism has been introduced, there is no additional cash reserve or unrated first-loss piece to provide further subordination. Only the ratings on the two lowest classes of notes are based on the availability of excess spread in later periods to cure previous write-downs and missed interest payments. As a result, the rating on these two classes will be linked to the 'A' rating on Postbank." At closing, Postbank will enter into a loss guarantee with the issuer. Under this agreement, the issuer will sell credit protection to the bank on the portfolio of loans. In turn, the issuer will issue credit-linked notes in the capital markets and invest the proceeds in collateral. Ratings List PB Domicile 2006-1 PLC EUR117.8 Million Floating-Rate Credit-Linked Notes and EUR64.3 Million Deferrable Floating-Rate Credit-Linked Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ A+ AAA 0.5 B AA 65.8 C A 51.5 D BBB 48.9 E BB 15.4 R. M. LICHT: Claims Registration Ends September 29 -------------------------------------------------- Creditors of R. M. Licht- & Werbetechnik GmbH have until Sept. 29 to register their claims with court-appointed provisional administrator Oliver Schartl. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Oct. 18 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Meiningen Hall A 0208 Linden Avenue 15 Meiningen, 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 Meiningen opened bankruptcy proceedings against R. M. Licht- & Werbetechnik GmbH on Aug. 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: R. M. Licht- & Werbetechnik GmbH Attn: Koeditz Bernd, Manager Johann-Christian-von-Weiss-Str. 3 36448 Schweina, Germany The administrator can be contacted at: Oliver Schartl Schwanthalerstr. 32 80336 Munich, Germany RAUSCHER MARKUS: Claims Registration Ends September 29 ------------------------------------------------------ Creditors of Rauscher Markus GmbH have until Sept. 29 to register their claims with court-appointed provisional administrator Peter May. Creditors and other interested parties are encouraged to attend the meeting at 8:05 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 Landshut Meeting Room 9/I Insolvency Court Maximilianstrasse 22-24 Landshut, 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 Landshut opened bankruptcy proceedings against Rauscher Markus GmbH on Aug. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Rauscher Markus GmbH Waldstr. 1 84056 Rottenburg, Germany The administrator can be contacted at: Dr. Peter May Bachstr. 6 84036 Landshut, Germany Tel: 0871/94321-0 Fax: 0871/9432150 SCHEFENACKER AG: Financial Restructuring Cues S&P to Junk Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on German automotive parts supplier Schefenacker AG to 'CCC-' from 'CCC+'. At the same time, the rating was placed on CreditWatch with negative implications. The rating actions follow the company's announcement that it has appointed financial-restructuring experts. "This confirms our concerns that Schefenacker might not respect the existing covenants on its bank debt and that a restructuring of the existing financial debt is needed," said Standard & Poor's credit analyst Barbara Castellano. "We see increasing risk of a solution that would include agreements to either reduce or postpone the scheduled payments on the financial debt, which are often part of financial- restructuring transactions." At end-June 2006, Schefenacker's debt comprised EUR200 million in subordinated bonds due 2014, EUR155 million in second-lien debt, and a EUR50 million secured revolving credit facility. In addition, there was about EUR20 million in bilateral credit lines. Standard & Poor's will closely monitor the situation, with the aim of resolving the CreditWatch status once the details of the restructuring process have been disclosed. SUMMIT REAL-ESTATE: Creditors' Meeting Slated for September 27 -------------------------------------------------------------- The court-appointed provisional administrator for Summit Real- Estate Pink GmbH, Peter Leonhardt, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:05 a.m. on Sept. 27. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:05 a.m. on Jan. 10, 2007 at the same venue. Creditors have until Nov. 14 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Summit Real-Estate Pink GmbH on Aug. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Summit Real-Estate Pink GmbH Dol 64 14195 Berlin, Germany The administrator can be reached at: Peter Leonhardt Kurfuerstendamm 212 10719 Berlin, Germany VOLKSWAGEN AG: Workers In Brazil to Vote on Labor Plan Today ------------------------------------------------------------ Volkswagen AG and the Brazilian union representing its 12,000 workers reached preliminary accord to terminate 3,600 workers in the next two years, Romina Nicaretta writes for Bloomberg News. Krishma Carreira, a spokeswoman for the union at the plant in Sao Bernardo do Campo in Sao Paulo told Bloomberg that workers are scheduled to vote on the plan today. Volkswagen offered early retirement to workers before starting the termination and reduced how much workers would have to pay health insurance costs, Ms. Carreira disclosed. Workers who decide to take early retirement by Nov. 21 will receive 1.4- times the monthly salary per year worked at company. The carmaker will cease the production of Fox compact cars for European shipment by next year and start production of a pick-up truck and another car in coming years if workers approve of the plan, Ms. Carreira was quoted by Bloomberg as saying. Volkswagen needs to shed exports by 40% through 2008, and production to 100,000 units to reduce its losses in the country. The preliminary accord was reached after 8,000 workers at the main plant went on a six-day strike after failed talks on the staff reduction plan. Volkswagen announced in May that it needed to cut labor costs and to decrease export market production in order to remain profitable. The company originally planned to cut as many as 6,000 jobs in South America by 2008. Headquartered in Wolfsburg, Germany, the Volkswagen Group -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in eleven European countries and a further seven countries in the Americas, Asia and Africa, Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle-related services on every working day. * * * Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by Chief Executive Bernd Pischetsrieder and Volkswagen brand head, Wolfgang Bernhard. In November last year, Volkswagen maintained its 2005 earnings guidance amid rumors it may lower targets. The company predicts a year-on-year improvement in both operating profit after special items and profit before tax this year. Rumors flew that the company would slash full-year earnings forecast due to higher restructuring costs. The company said the impact of its workforce reduction measures, which will be charged as special items in the fourth quarter, will be lower than last year's. The company also admitted there were no significant improvements in the economic environment in the first nine months of 2005, and the overall situation in the important automotive markets remained difficult. It also expected tougher competition in the Chinese and U.S. markets, and the rise in fuel prices to influence consumer confidence. WORLDWIDE FOOD: Claims Registration Ends September 29 ----------------------------------------------------- Creditors of WORLDWIDE FOOD GmbH have until Sept. 29 to register their claims with court-appointed provisional administrator Ingmar Jarchow. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on Oct. 27 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against WORLDWIDE FOOD GmbH on Aug. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: WORLDWIDE FOOD GmbH Deepenstoecken 5 22529 Hamburg, Germany Attn: Michael Schoop, Manager Sagemuehlenstrasse 1 22767 Hamburg, Germany The administrator can be contacted at: Ingmar Jarchow Heuberg 1 20354 Hamburg, Germany Tel: 3501690 Fax: 35016915 ============= H U N G A R Y ============= AES CORP: Selling 33% Stake in Eletropaulo Metropolitana -------------------------------------------------------- AES Corp. plans to sell a 33% stake in its Brazilian unit, Eletropaulo Metropolitana Electricidade de Sao Paulo SA, to help reschedule a US$1.2 billion debt owed to the state development bank, Bloomberg News reports. According to the report, the stake in Eletropaulo is valued at BRL1.29 billion (US$603 million) as of Sept. 1. AES Transgas Empreendimentos SA, a unit based in Sao Paulo, will sell 13.76 billion preferred B shares of Eletropaulo this month, through a public offering on domestic and international markets, Bloomberg says, citing a statement filed with Brazil's securities regulator. Brazil's state development bank, Banco Nacional de Desenvolvimento Economico e Social, could have gotten hold of AES' Brazilian assets two years ago if the power company did not agree to a debt restructuring. "AES is trying to improve its cash position in Brazil," Januario Hosten Jr., an equity analyst at Leme Investimentos in Florianopolis, Brazil was quoted by Bloomberg as saying. "It also shows that the company is seeing better opportunities of gains in other types of investments than Eletropaulo." Meanwhile, Eletropaulo's shares are adversely affected by the proposed sale. "The sale is having a negative impact on the price of shares because it shows that Transgas doesn't expect Eletropaulo's shares to rise too much in the future," Leme Investimentos analyst told Bloomberg. After the sale, Transgas' shares will be up to 4.9% in Eletropaulo. Transgas plans to price the shares on Sept. 21, Bloomberg says. About Eletropaulo Eletropaulo distributes power in Brazil's industrial hub of Sao Paulo city and 23 surrounding towns. Power consumption in Sao Paulo state grew 3.8% in 2005 from 2004, according to data from Sao Paulo state government. About the Company AES Corporation -- http://www.aes.com/-- is a global power company. The Company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the Company delivers electricity through 15 distribution companies. AES has been in Eastern Europe for nearly ten years, since it acquired three power plants in Hungary in 1996. Today, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * As reported in the Troubled Company Reporter on May 25, Fitch affirmed The AES Corporation's Issuer Default Rating at 'B+'. Fitch also affirmed and withdrew the ratings for the company's junior convertible debt. Fitch said the rating outlook for all remaining instruments is stable. In March, Standard & Poor's Ratings Services raised its corporate credit rating on diversified energy company The AES Corp. to 'BB-' from 'B+'. S&P said the outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, Moody's affirmed the ratings of The AES Corporation, including its Ba3 Corporate Family Rating and the B1 rating on its senior unsecured debt. Moody's said the rating outlook remains stable. ============= I R E L A N D ============= DALI CAPITAL: Moody's Assigns (P)Ba3 Rating to Series 23 Notes -------------------------------------------------------------- Moody's assigned a provisional rating of (P)Ba3 to the Series 23 RUB issue of Fixed Rate Notes to be issued by DALI Capital plc, a special-purpose vehicle. The exact amount and maturity date of the issue are not yet known. The Notes to be issued by the SPV will be used to fund a loan by Barclays Bank plc to the rosbank (OJSC JSCB), a bank established under the laws of the Russian Federation. The ruble denominated loan between Barclays Bank plc and ROSBANK is rated Ba3 by Moody's. The (P)Ba3 rating of the Notes is based primarily on: -- the integrity of the structure; -- the ability of ROSBANK, the ultimate obligor in respect of payments under the Notes, to make timely payments of interest and ultimate payment of principal on the Loan; and -- the ability of Barclays Bank plc to act as Lender. Moody's issues provisional ratings in advance of the final sale of the securities. The ratings, however, only represent Moody's preliminary credit opinion. Upon conclusive review of all transaction and associated documents, Moody's will endeavor to assign definitive ratings to the notes. A definitive rating may differ from a prospective rating. The SPV is a special purpose company located in Ireland and established for the purpose of repackaging debt securities. EUROCREDIT CDO: Moody's Rates EUR24-Mln Class E Notes at Ba3 ------------------------------------------------------------ Moody's assigned these definitive ratings to eight classes of notes issued by Eurocredit CDO V PLC, a bankruptcy remote special-purpose vehicle incorporated in Ireland: -- EUR210 Million Class A-1 Senior Secured Floating Rate Notes: Aaa; -- EUR120 Million Class A-2 Senior Floating Rate Dual Currency Notes: Aaa; -- EUR72 Million Class A-3 Senior Secured Floating Rate Notes: Aaa; -- EUR42 Million Class B Senior Secured Floating Rate Notes: Aa2; -- EUR36 Million Class C Secured Deferrable Floating Rate Notes: A2; -- EUR27 Million Class D Secured Deferrable Floating Rate Notes: Baa3; -- EUR24 Million Class E Secured Deferrable Floating Rate Notes: Ba3; and -- EUR6 Million Class V Combination Notes: Baa2. These ratings are based upon: -- An assessment of the credit quality and of the diversification of the assets in the initial portfolio; -- An assessment of the eligibility criteria applicable to the future additions to the portfolio; -- The overcollateralization of the notes; -- The protection against losses through the subordination of the Class B, C, D, E notes, the EUR69 million subordinated notes and the excess spread available in the transaction; -- The analysis of the foreign currency risk involved in the transaction; and -- The legal and structural integrity of the issue. The ratings of the Class A, B, C, D and E Notes address the expected loss posed to investors by the legal maturity of each class (in September 2022). The rating of Class V Notes addresses the expected loss posed to investors by the legal final maturity as a proportion of the Rated Balance, where the Rated Balance is equal, at any time, to the principal amount of the Combination Notes on the closing date minus the aggregate of all payments made from the closing date to such date, either through interest or principal payments. This transaction is a high yield collateralized loan obligation related to a portfolio of mainly senior and mezzanine loans. This portfolio is dynamically managed by Intermediate Capital Managers Limited. This portfolio will be partially acquired at closing date and partially during the six-month ramp-up period at the end of which the portfolio shall comply (amongst others) with the following tests (subject to Moody's matrices): a diversity score greater than 43, a weighted average rating factor lower than 2,200, and weighted average spread greater than 2.65% and a weighted average recovery rate greater than 52%. Thereafter, the portfolio of loans will be actively managed and the portfolio manager will have the option to direct the issuer to buy or sell loans. Any addition or removal of loans will be subject to a number of portfolio criteria. This transaction features a multi-currency revolving class of notes (class A-2 notes) that can be drawn either in Euros or in Sterlings. Sterling advances will be initially used to purchase loans denominated in Sterling. Should such Sterling assets default, Sterling advances would not be fully collateralized by Sterling assets and therefore Euro proceeds may need to be converted into Sterling in order to redeem Sterling advances, thus creating a foreign exchange risk exposure. This currency risk has been considered in Moody's analysis. ========= I T A L Y ========= ALITALIA SPA: Posts EUR221 Million Net Loss for First Half 2006 --------------------------------------------------------------- The Board of Directors of Alitalia Linee Aeree Italiane S.p.A., chaired by President-CEO Giancarlo Cimoli, has approved the consolidated report for the first half of 2006 for the Alitalia Group. Following the negative economic results of the first quarter, characterized by strong union unrest in January, the second quarter showed an indicative and tangible recovery, still underway, which enabled the Alitalia Group to reach an effective balance in terms of the operating result -- which gave rise to a small profit, excluding the effect of the subsidiary Volare S.p.A., which went through a difficult start up period due to questions which are unrelated to the industrial scenario. The persistence of the difficult market conditions marked by higher fuel costs and increased competition in some network sectors, combined with continuing unrest in the industrial relations field, made it necessary to implement further measures of the Business Plan. It should be noted that the main economic and financial factors relating to the semester, shown below, have been drawn up in compliance with international accounting principles (IAS/IFRS) and reflect the changed Company organization following the splitting off of Alitalia Servizi, which took place in November 2005. -- traffic revenues during the first half of 2006 amounted to EUR2.043 billion showing an increase of EUR55 million (+2.8%) compared to the previous year, with an increase in the second quarter of EUR54 million (+5.0%) compared to the same period in 2005. -- consolidated net results for the first half of 2006 amounted to EUR2.24 billion showing a decrease of about EUR36 million (-1.6%) mainly due to deconsolidating the revenues from Alitalia Servizi -- for the semester, the other operating revenues are reduced by about EUR91 million of which about EUR61 million refer directly to handling and maintenance activities carried out for third- party customers in 2005, now deconsolidated with Alitalia Servizi. -- the consumption costs for materials, services and other operating expenses (excluding fuel) amounted to EUR1.39 billion showing an increase of about EUR111 million compared to 2005 mainly due to the fact that Alitalia Servizi issued invoices for activities previously carried out within the Company organization, using its own workforce. -- labor costs amounted to EUR384 million showing a decrease of EUR184 million compared to 2005 (-32%) due to splitting off Alitalia Servizi and implementing the measures set out in the Company's Business Plan. -- the cost of purchasing fuel reached EUR471 million showing a marked upswing of EUR107 million compared to the same period last year (+30%), mainly due to the sharp rise in fuel prices and associated exchange rate factors. -- the consolidated operating loss for the first half of 2006 amounted to EUR132 million, higher than the loss for the first half of 2005 (which was EUR84 million) partly due to high fuel costs (+EUR107 million) and to the strikes which took place during the first quarter of the year (which led to a worsening of the accounts by about EUR40 million). It should be noted that, in spite of a further rise in fuel costs of about EUR46 million during the second semester, the operating result was only slightly negative (an operating loss of only EUR3 million). -- the sharp rise in fuel costs (which increased by more than EUR107 million during the semester, compared to the previous year), the increased competitive pressure from low-cost companies, together with the negative impact of the strikes last January, led to a net result for the semester of -EUR221 million (down EUR97 million compared to the previous year). -- the net financial position on June 30, 2006, amounted to EUR791 million, a decline of approximately EUR37 million compared to Dec. 31, 2005, mainly due to monetary requirements caused by typical seasonal factors in the first quarter. -- on June 30, 2006, cash-to-hand amounted to EUR893 million. -- the Group's average workforce on the payroll on June 30, 2006 was 10,052 people showing a decrease of 8,963 (-47% circa) compared to June 30, 2005, mainly due to splitting off Alitalia Servizi (7,985 people) and to improving efficiency in deploying resources (-1,110 people, without including the members of the subsidiary Volare not consolidated on June 30, 2005). -- the Group's workforce on 30 June 2006 was 11,663 people showing a decrease of 8,374 (-42% circa) compared to 30 June 2005, due to splitting off Alitalia Servizi and improving efficiency in the deployment of resources. -- the operational fleet on 30 June 2006 consisted of 183 aircraft of which 154 for short/medium-haul routes and 29 for long-haul routes. -- regarding the evolution of traffic and the network in the passenger sector, where a large part of the Alitalia Group's results come from, during the first half of 2006, there was an overall increase in the number of passengers carried amounting to +2.4% (from 1,777 million ton kilometers carried to 1,819) in spite of a drop in the capacity offered of -2.7% (from 2,598 million ton kilometers offered to 2,527). -- in overall terms, the load factor reached 72%, showing an improvement of 3.6 percentage points compared to the previous period. -- the absolute value of revenues from passenger traffic showed an increase of 1.4% (from EUR1.728 billion to EUR1.752 billion) while the number of passengers carried during the first half of 2006 amounted to 11.7 million, up by 3.1% compared to the same period in 2005. -- the semester also reported a reduction in the level of unit revenue (yield) amounting to -1.5%. The forecast for the second half of the year is for positive operating and net results, partly due to some non-recurring items. The Group's consolidated net result for the full year 2006 should approach the level achieved in 2005. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- generates around EUR4.8 billion in annual revenue and employs more than 11,000 people. Alitalia flies to about 80 destinations in more than 60 countries from hubs in Rome and Milan and operates a fleet of about 185 aircraft. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. PARMALAT SPA: Grand Cayman Court Names Kroll as Liquidator ---------------------------------------------------------- The appointment of Gordon I. MacRae and James Cleaver at Kroll (Cayman) Limited as Joint Official Liquidators of Parmalat Capital Finance Limited has been affirmed by the Court of Appeals in Cayman Islands, Richard I. Janvey, Esq., at Janvey Gordon Herlands Randolph & Cox LLP, in New York, informs Judge Drain. As previously reported, the Grand Court of Cayman Islands appointed Messrs. MacRae and Cleaver as Joint Official Liquidators of Parmalat Capital, Dairy Holdings Limited, and Food Holdings Limited in May 2006. Parmalat Finanziaria S.p.A. and its affiliates and subsidiaries took an appeal from the Grand Court Order. Dr. Enrico Bondi, Extraordinary Administrator of the Parmalat companies, has indicated that he will take the appeal to the Privy Counsel, Mr. Janvey relates. Messrs. MacRae and Cleaver are former partners of Ernst & Young Restructuring Ltd., before Kroll Cayman, an affiliate of Kroll, Inc., acquired the Cayman Islands insolvency and advisory arm of Ernst & Young in 2005. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. (Parmalat Bankruptcy News, Issue No. 75; Bankruptcy Creditors' Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/) PARMALAT SPA: Sells Stake In Italcheese & Australian Business ------------------------------------------------------------- Parmalat S.p.A. communicates that, as part of the restructuring process of the Group, it has sold 100% of its Italian subsidiary Italcheese S.p.A. as well as stakes held indirectly in some Australian companies. Italcheese S.p.A. is an Italian company that commercializes and stores food products and in 2005 generated EUR27 million in revenues. The Australian holdings: -- Norco Pauls Milk Joint Venture, -- Norcofields Pty Ltd., -- The Norcofields Unit Trust, -- Fieldco Pty. Ltd., -- The Fieldco Unit Trust, -- Gold Coast Milk Pty. Ltd., and -- Beaudesert Milk Pty. Ltd were held in a joint venture agreement with Norco Co-operative Ltd. and were sold following the approval of the Composition with Creditors of the Parmalat Group of Oct.1 2005, and the consequent exercise of the call option accorded to the partner under the joint venture agreement. The proceeds of the sale of these Australian participations will be applied to reducing indebtedness towards the Group's Australian bank lenders and therefore to decreasing the interest due by AUS$5 million (approximately EUR3 million) annually. The sale will result in a marginal decrease in EBITDA of approximately A$6.3 million (approximately EUR3.7 million). Itaca and Consorzio Latterie Reggiane, consortiums of Confcooperative and Legacoop of Reggio Emilia, acquired Italcheese S.p.A. for EUR4,000,000, Agenzia Giornalistica Italia reports. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. (Parmalat Bankruptcy News, Issue No. 75; Bankruptcy Creditors' Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/) =================== K A Z A K H S T A N =================== AJSK: Creditors Must File Claims by Oct. 10 ------------------------------------------- CJSC AJSK has declared insolvency. Creditors have until Oct. 10 to submit written proofs of claim at: CJSC AJSK Azerbaev Str. 60 Almaty, Kazakhstan Tel: 8 (3272) 34-39-48 ALATAU: Creditors Must File Claims by Oct. 10 --------------------------------------------- LLP Alatau has declared insolvency. Creditors have until Oct. 10 to submit written proofs of claim at the company's addresses in: Karasay-Batyr Str. 39-2 Almaty, Kazakhstan -- or -- Vitner Str. 2a Almaty, Kazakhstan Tel: 8 (3272) 91-10-86 ARDAGER-MUNAY: Akmola Court Opens Bankruptcy Proceedings -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region commenced bankruptcy proceedings against LLP Ardager-Munay on August 2. ARSI SERVICE: Proof of Claim Deadline Slated for Oct. 10 -------------------------------------------------------- LLP Arsi Service (RNN 600300536516) has declared insolvency. Creditors have until Oct. 10 to submit written proofs of claim at: LLP Arsi Service Ubileynaya Str. 20a Almaty, Kazakhstan Tel: 8 (3272) 21-95-61 DASTAR: Proof of Claim Deadline Slated for Oct. 6 ------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Dastar insolvent. Creditors have until Oct. 6 to submit written proofs of claim at: LLP Dastar Proletarskaya Str. 93-47 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan DELTA PLUS-2: Akmola Court Begins Bankruptcy Proceedings -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region commenced bankruptcy proceedings against LLP Delta Plus-2 on July 31. KAZPOST JSC: Weak Profile Prompts S&P to Affirm BB+ Rating ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed its long-term 'BB+' issuer credit and 'kzAA-' Kazakhstan national scale ratings on the state-owned postal company Kazpost (JSC). The outlook is stable. "The ratings on Kazpost reflect its weak financial profile resulting from the modest profitability of its core services and strong competition faced by the company in Kazakh cities," said Standard & Poor's credit analyst Felix Ejgel. "These factors are mitigated by the fact that Kazpost continues to be a 100% state-owned entity, now via the recently established Samruk holding company." In addition, Kazpost is expected to receive extraordinary support from the Republic of Kazakhstan in case of financial distress in recognition of the important public service role that Kazpost provides in rural areas. Standard & Poor's follows the top-down approach for assessing Kazpost, which is therefore rated higher than its stand-alone credit quality would warrant. The absence of a liquidity mechanism or an explicit state guarantee for all the company's debts, and the planned cessation of direct state financial support after 2007, justifies the gradual divergence between the ratings on Kazpost and those on Kazakhstan. Kazpost is the national postal operator in the Republic, providing public postal services, unregulated private postal services, and financial services. In 2006, the company's sales are expected to reach US$90 million. "We expect Kazpost's current public-policy role to remain unchanged in the foreseeable future, and expect that although state financial support will diminish there will be continuing strong state oversight," said Mr. Ejgel. "Furthermore, the strengthening of the company's market position and continuing infrastructure upgrade following capital injections from the state should offset the potential reduction in direct subsidies and consequent growth of nonguaranteed borrowings after 2007." If the company benefits from substantial financial support from the state, directly or through Samruk, after 2007, in the form of additional capital injections, compensation for losses, or higher tariffs, the outlook could be revised to positive. Conversely, if Kazpost's debt burden grows beyond expected levels, or the company's profitability deteriorates, this could put the ratings under pressure. LARUS-UNITUM MODULE: Atyrau Court Starts Bankruptcy Procedure ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region commenced bankruptcy proceedings against LLP Larus-Unitum Module. OKSI-AGRO: Claims Registration Ends Oct. 6 ------------------------------------------ The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Oksi-Agro insolvent on July 17. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Oct. 6 to submit written proofs of claim at: LLP Oksi-Agro 3rd Floor Sutushev Str. 58 Petropavlovsk North Kazakhstan Region Kazakhstan PROGRESS KASPYI: Atyrau Court Commences Bankruptcy Proceedings -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region commenced bankruptcy proceedings against LLP Progress Kaspyi. TECHNOSPETSSTROY: Atyrau Court Starts Bankruptcy Proceedings ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Atyrau Region commenced bankruptcy proceedings against LLP Technospetsstroy. TEMIR-KAZYK: Claims Registration Ends Oct. 6 -------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Temir-Kazyk insolvent. Creditors have until Oct. 6 to submit written proofs of claim at: LLP Temir-Kazyk Taran Str. 85-40 Kostanai Kostanai Region Kazakhstan Tel: 8 (3142) 54-28-39 TEPLOSET: Creditors' Claims Due Oct. 6 -------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Teploset insolvent. Creditors have until Oct. 6 to submit written proofs of claim at: LLP Teploset Proletarskaya Str. 93-47 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan TULPAR STROY: Creditors' Claims Due Oct. 18 ------------------------------------------- LLP Construction Company Tulpar Stroy Ltd. has declared insolvency. Creditors have until Oct. 18 to submit written proofs of claim to: LLP Tulpar Stroy Ltd. Novaya Str. 27 Alatau Karasai District Almaty Region, Kazakhstan TUMAR LOGISTIC: Akmola Court Starts Bankruptcy Procedure -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region commenced bankruptcy proceedings against LLP Tumar Logistic on July 27. ZHETYSU COMMERCE: Creditors Must File Claims by Oct. 18 ------------------------------------------------------- LLP Zhetysu Commerce has declared insolvency. Creditors have until Oct. 18 to submit written proofs of claim at: LLP Zhetysu Commerce Micro District Jetysu 12/5 Taldykorgan Almaty Region Kazakhstan Tel: 8 (3282) 24-18-54 =================== K Y R G Y Z S T A N =================== FLINT: Proof of Claim Deadline Slated for Oct. 18 ------------------------------------------------- Kyrgyz-Russian LLC Flint has declared insolvency. Creditors have until Oct. 18 to submit written proofs of claim at: Inquiries can be addressed to (+996 3922) 5-03-57. MBI COMPANY: Creditors Must Submit Claims by Oct. 18 ---------------------------------------------------- LLC MBI Company has declared insolvency. Creditors have until Oct. 18 to submit written proofs of claim at: LLC MBI Company Imanaliev Str. 62 Ortosay Bishkek, Kyrgyzstan OSHSTROY: Claims Registration Ends Oct. 18 ------------------------------------------ UM-3 of JSC Oshstroy has declared insolvency. Creditors have until Oct. 18 to submit written proofs of claim. Inquiries can be addressed to (+996 3222) 5-72-83. =========== L A T V I A =========== PARITATE BANK: Moody's Assigns E+ Financial Strength Rating ----------------------------------------------------------- Moody's Investors Service assigned local currency and foreign currency deposit ratings of B2/Non-Prime and a financial strength rating of E+ to Paritate Bank. The ratings carry a stable outlook. Paritate Bank is predominantly owned by Ukraine's Privatbank and is engaged in the provision of banking services to local and non-resident private individuals as well as domestic and foreign corporate customers. According to Moody's, the B2/NP/E+ ratings reflect Paritate Bank's fairly resilient market share as well as the improvements in the bank's profitability, notwithstanding the fact that interest income could in time become more susceptible to margin pressure. Moody's also notes the competitive challenges facing the bank owing to the presence of larger foreign-owned players in Latvia, which are in a position to benefit from the commercial scale and expertise of their respective backers. Beyond Latvia, the bank is also targeting EU-wide opportunities in terms of servicing existing clients of its parent and to that end plans to open overseas offices in the future. The B2 long- term deposit ratings additionally incorporate a degree of support from the bank's primary owner, Privatbank. Paritate's loan portfolio is primarily domestically oriented and has evidenced good credit quality indicators in recent years. Moreover the absolute level of write-offs is negligible. Nevertheless, the institution is considerably exposed to the Latvian real estate market, particularly with regard to retail mortgage lending. Additionally, rapid growth in the bank's loan portfolio, specifically retail mortgages, could lead to a less seasoned book going forward. Similar to other banks operating in the Baltic region, the credit standing of Paritate Bank remains constrained by the less mature operating environment in which it operates. However, concerns are mitigated to a degree by the fact that the majority of loans are secured, the fact that loan growth has occurred from a relatively low base as well as improvements in the classification and provisioning of non-performing loans. A substantial proportion of the mortgage loan portfolio has been granted within fairly conservative loan-to-value parameters. In Moody's view, capitalization levels are relatively modest owing to the aforementioned portfolio concentration risks. Paritate Bank's deposit base is characterized by a preponderance of corporate, non-resident deposits. Consequently, the institution displays a greater vulnerability to the threat of external shocks than banks, which have a more substantial domestic retail deposit base. In Moody's opinion, Paritate Bank faces the challenge of raising its domestic retail funding base, but expects that, over time, the institution should be in a position to take advantage of developments within the Latvian economy as well as the growing confidence in the Latvian banking system, particularly in light of EU accession. From an ALM perspective, the bank is also addressing the maturity gap between its assets and liabilities by raising longer-term funding, as reflected by the first-time issuance of mortgage bonds in May 2006. However, Moody's also notes the degree of ALM currency incongruence. Paritate Bank maintains good liquidity levels, reflected by its liquidity ratio of 49.47% as at year-end 2005, above the minimum regulatory requirement of 30%. Market risk is low reflected in part by the small size of the bank's securities portfolio in addition to the fact that Paritate Bank does not engage in proprietary trading activities. Headquartered in Riga, Latvia, Paritate Bank's total assets amounted to LVL69.98 million (EUR100.8 million) as at Dec. 31, 2005. =========== R U S S I A =========== AVANGARD: Court Names S. Ryabov as Insolvency Manager ----------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Ryabov as Insolvency Manager for CJSC Trading Company Avangard. He can be reached at: S. Ryabov Post User Box 132 603005 N.Novgorod Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 40-23602/06-123-291 B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Trading Company Avangard Building 1 Bolshaya Spasskaya Str. 6 Moscow Region Russia BUTURLINSKIY DIARY: Court Names V. Morozov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region appointed Mr. V. Morozov as Insolvency Manager for OJSC Buturlinskiy Diary. He can be reached at: V. Morozov Apartment 66 Golovanova Str. 59 603137 Nizhniy Novgorod Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A 43-46091/2005-33-507. The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: OJSC Buturlinskiy Diary Pristantsionnaya Str. 35 Buturline Buturlinskiy Region 607440 Nizhniy Novgorod Region Russia CEDAR: Leningrad Court Names M. Golubeva as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of St. Petersburg and the Leningrad Region appointed Ms. M. Golubeva as Insolvency Manager for OJSC Woodworking Factory Cedar. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-13594/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: OJSC Woodworking Factory Cedar Lavrsloy Proezd 5 191167 St. Petersburg Region CORNELIAN: Court Names M. Vasilega as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. M. Vasilega as Insolvency Manager for CJSC Cornelian (TIN 7706008861). He can be reached at: M. Vasilega Post User Box 100 105318 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-38169/06-95-108b. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Cornelian Krymskiy Val 8 Moscow Region Russia DIVEEVSKIY BUTTER: Court Names P. Milov as Insolvency Manager ------------------------------------------------------ The Arbitration Court of Nizhniy Novgorod Region appointed Mr. P. Milov as Insolvency Manager for LLC Diveevskiy Butter Factory. He can be reached at: P. Milov Shmidta Str. 4 440039 Penza Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43-7650/2006-27-248. The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: LLC Diveevskiy Butter Factory Magistralnaya Str. 1 Diveevo Nizhniy Novgorod Region Russia EDINSTVO: Court Names V. Morozov as Insolvency Manager ------------------------------------------------------ The Arbitration Court of Nizhniy Novgorod Region appointed Mr. V. Morozov as Insolvency Manager for CJSC Agro Company Edinstvo. He can be reached at: V. Morozov Apartment 66 Golovanova Str. 59 603137 Nizhniy Novgorod Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43-6111/2006-36-384. The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: CJSC Agro Company Edinstvo Varvarino Vorotynskiy Region Nizhniy Novgorod Region Russia FERRUM-STROY: Sakhalin Court Names V. Glik as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Sakhalin Region appointed Mr. V. Glik as Insolvency Manager for CJSC Ferrum-Stroy. He can be reached at: V. Glik Post User Box 168 693008 Yuzhno-Sakhalinsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A59-1463/06-S4. The Debtor can be reached at: CJSC Ferrum-Stroy Lenina Str. 486. Yuzhno-Sakhalinsk Region 693000 Sakhalin Region Russia FILLIPOV: Court Names E. Golenkov as Insolvency Manager ------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region appointed Mr. E. Golenkov as Insolvency Manager for LLC Brewing Company Fillipov. He can be reached at: E. Golenkov Shmidta Str. 4 440039 Penza Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43-5272/2006-33-80. The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: LLC Brewing Company Fillipov Parkhomenko Str. Shakhunya Nizhniy Novgorod Region Russia GAZPROM OAO: Ukraine Presents Scheme to Keep US$95 Gas Price ------------------------------------------------------------ The Ukrainian government is offering to repay its US$322 million debt to RosUkrEnergo, a unit of OAO Gazprom, to keep the gas prices at US$95 in the fourth quarter of 2006. The proposal follows an agreement between Gazprom Chief Executive Alexei Miller and Ukraine Fuel and Energy Minister Yuriy Boiko concerning the country's looming fuel crisis in the next six months from October 2006 to March 2007. Ukraine is offering to pay state-owned gas firm Naftogaz Ukrainy's US$322 million debt in three installments: -- US$150 million on Sept. 17, -- US$150 million on Sept. 25, and -- US$22 million in early October. Gazprom is mulling to hike its gas prices in Ukraine after sealing a deal early this month with Turkmenistan. Under the contract, Gazprom will buy 50 billion cubic meters of gas from Turkmenistan at US$100 per 1,000 cubic meters, up from previous price of US$65 per 1,000 cubic meters. With the higher cost, Gazprom is demanding that Ukraine pay between US$135 and US$140 per 1,000 cubic meters of gas. Gazprom, through RosUkrEnergo, has been supplying Russian and Turkmen gas to Ukraine since January 2006. The company buys Russian gas for US$230 per 1,000 cubic meters. The blend of Russian and Turkmenian gas is then sold to Ukrainian consumers for US$95 per 1,000 cubic meters. About Naftogaz Ukrainy Headquartered in Kiev, Ukraine, Naftogaz Ukrainy OJSC -- http://www.naftogaz.com/-- produces and transmits of oil and gas. 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. GORODETSKIY SHIPYARD: Bankruptcy Hearing Slated for Dec. 26 ----------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region will convene at 9:45 a.m. on Dec. 26 to hear the bankruptcy supervision procedure on OJSC Gorodetskiy Shipyard. The case is docketed under Case No. A43-14611/2006 24-174. The Temporary Insolvency Manager is: O. Vdovin Minina Str. 3a-1 603005 Nizhniy Novgorod Region Russia The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: OJSC Gorodetskiy Shipyard Novaya Str. 31 Gorodets 606508 Nizhniy Novgorod Region Russia GRAVEL FACTORY: Court Names A. Mazur as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Khabarovsk Region appointed Mr. A. Mazur as Insolvency Manager for LLC Gravel Factory. He can be reached at: A. Mazur Komsomolskaya Str. 82 680000 Khabarovsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A73-3917/2006-39. The Debtor can be reached at: LLC Gravel Factory Komsomolskaya Str. 82 680000 Khabarovsk Region Russia KEZSKIY FLAX: Udmurtiya Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Udmurtiya Republic commenced bankruptcy supervision procedure on Municipal Unitary Enterprise Kezskiy Flax Factory (TIN 1812000493). The case is docketed under Case No. A71-004457/2006-G2. The Temporary Insolvency Manager is: S. Olin K. Libknekhta Str. 65 Izhevsk 426063 Udmurtiya Republic Russia The Debtor can be reached at: Municipal Unitary Enterprise Kezskiy Flax Factory Lnozavodskaya Str. 2 Kez Kezskiy Region 427693 Udmurtiya Republic Russia KIROVETS: Court Names L. Kornilova as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Ms. L. Kornilova as Insolvency Manager for CJSC Kirovets. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-12354/06-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Kirovets Mashinostroiteley Str. 32-7 Ekaterinburg Region Russia KORKINSKIY DIARY: Court Starts Bankruptcy Supervision ----------------------------------------------------- The Arbitration Court of Chelyabinsk Region commenced bankruptcy supervision procedure on OJSC Korkinskiy Diary. The case is docketed under Case No. A76-10751/06-60-110. The Temporary Insolvency Manager is: Y. Remizov Kirova Str. 118 454091 Chelyabinsk Region Russia The Arbitration Court of Chelyabinsk Region is located at: Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: OJSC Korkinskiy Diary Kirova Str. 118 454091 Chelyabinsk Region Russia MIKHAYLOVSKOYE: Altay Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Altay Region commenced bankruptcy supervision procedure on OJSC Agro Company Mikhaylovskoye. The case is docketed under Case No. A03-3919/06-B. The Temporary Insolvency Manager is: N. Zaeva Lenina Pr. 162-79 Rubtsovsk 658200 Altay region Russia The Debtor can be reached at: OJSC Agro Company Mikhaylovskoye K. Marksa Str. 779 Mikhaylovskoye Mikhaylovskiy region 658960 Altay region Russia MONOLITH-V: Moscow Court Names M. Sorokin as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. M. Sorokin as Insolvency Manager for CJSC Monolith-V. He can be reached at: M. Sorokin M. Ekaterininskaya Str. 17/21 129110 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-14918/06-78-93B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Monolith-V M. Ekaterininskaya Str. 17/21 129110 Moscow Region Russia NOVOPOKRORVSK-AGRO: Bankruptcy Hearing Slated for Oct. 17 --------------------------------------------------------- The Arbitration Court of Krasnodar Region will convene on Oct. 17 to hear the bankruptcy supervision procedure on OJSC Novopokrorvsk-Agro-Prom-Khimiya (TIN 2344012329). The case was docketed under Case No. A-32-12954/2006-27/591 B. The Temporary Insolvency Manager is: A. Baskakov Post User Box 162 350020 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 Novopokrorvsk-Agro-Prom-Khimiya Leteynaya Str. 100 Novopokrovskaya St 353020 Krasnodar Region Russia OMSK-LEATHER: Court Names A. Budelev as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Omsk Region appointed Mr. A. Budelev as Insolvency Manager for CJSC Omsk-Leather. He can be reached at: A. Budelev 5th Kordnaya Str. 65b 644018 Omsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. K/E-387/05. The Debtor can be reached at: CJSC Omsk-Leather Perova Str. 43 644034 Omsk Region Russia REINFORCED CONCRETE: Bankruptcy Hearing Slated for Nov. 2 --------------------------------------------------------- The Arbitration Court of Kemerovo Region will convene at 2:00 p.m. on Nov. 2 to hear the bankruptcy supervision procedure on LLC Factory of Reinforced Concrete Products. The case is docketed under Case No. A-27-10339/2006-4. The Temporary Insolvency Manager is: S. Bortnikov Post User Box 966 650000 Kemerovo Region Russia The Arbitration Court of Kemerovo Region is located at: Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: LLC Factory of Reinforced Concrete Products Vokzalnaya Str. 51a Sheregesh 652971 Kemerovo Region Russia RUSSIAN FOREST: Court Names O. Feldman as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Moscow appointed Mr. O. Feldman as Insolvency Manager for CJSC Russian Forest (TIN 7724126850). He can be reached at: O. Feldman Post User Box 53 109156 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-28425/06-86-425B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Russian Forest Mussy Dzhalilya Str. 5-1017 115580 Moscow Region Russia SARAKTASHSKIY: Court Names O. Suslov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Orenburg Region appointed Mr. O. Suslov as Insolvency Manager for OJSC Saraktashskiy Brick. He can be reached at: O. Suslov Office 400 Mekhanizatorov Str. 1 460006 Orenburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A 47-3893/2006-14GK. The Arbitration Court of Orenburg Region is located at: 9th January Str. 64 460046 Orenburg Region Russia The Debtor can be reached at: OJSC Saraktashskiy Brick Location Orenburg Region Russia SEVER-TRANSPORT: Sverdlovsk Court Starts Reorganization Process --------------------------------------------------------------- The Arbitration Court of Sverdlovsk Region commenced external management bankruptcy procedure on OJSC Sever-Transport. The case is docketed under Case No. A60-3940/06-S11. The External Insolvency Manager is: D. Mazurovskiy Post User Box 106 Main Post Office 62000 Ekaterinburg Region Russia The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: OJSC Sever-Transport Vatutina Str. 1a Severouralsk 624480 Sverdlovsk Region Russia SIBERIAN STOCKINET: Bankruptcy Hearing Slated for Nov. 28 --------------------------------------------------------- The Arbitration Court of Irkutsk Region will convene at 10:30 a.m. on Nov. 28 to hear the bankruptcy supervision procedure on CJSC Siberian Stockinet. The case is docketed under Case No. A39-1 3046/06-38. The Temporary Insolvency Manager is: V. Safonov Post User Box 146 664025 Irkutsk Region Russia The Arbitration Court of Irkutsk Region is located at: Room #319 Gagarina Avenue 70 Irkutsk Russia The Debtor can be reached at: CJSC Siberian Stockinet Vostochnyj Proezd 5 Cheremkhovo 665401 Irkutsk Region Russia SUAL GROUP: Finalizing Rusal Merger by Oct. 1, Report Says ---------------------------------------------------------- Siberian-Urals Aluminium Company has set an Oct. 1 deadline to finalize a possible merger deal with Rusal Ltd., Jackie Range and Michael Wang of the Wall Street Journal cites people familiar with the matter. The parties entered into a tentative agreement late August, which would create the world's biggest aluminum company with a US$20 billion market capitalization. The WSJ says that if a definitive agreement isn't reached, the preliminary deal will expire, allowing Sual to accelerate flotation plans on the London Stock Exchange. According to the report, Sual will proceed to complete its prospectus in October and begin its search for potential investors on a valuation for an initial public offering of stock if the negotiation deadline is missed. Another source, however, pointed out that either Sual or Rusal could leave the negotiating table before the deadline since the preliminary agreement is still non-binding. IPO Plans Sual CEO Brian Gilbertson confirmed last week that the company intends to trade on the LSE in November. The company, which is expected to place at least 25% of the company in public hands, has tapped J.P. Morgan Cazenove and UBS AG for advice regarding the share offering. If the merger pushes through, Sual, controlled by Russian billionaire Viktor Vekselberg, would hold a 21.5% stake in the combined entity, which would be inflated with the purchase of alumina assets from Switzerland's Glencore International AG, the WSJ reports. In exchange, Glencore would hold a 14% stake in the new company while Rusal, owned by billionaire Oleg Deripaska, would control 64.5%. The WSJ reveals that Sual is in advanced talks to acquire a 25% stake in Canada's Global Alumina Corp., competing against BHP Billiton PLC's intent to purchase Global Alumina's stake. About RusAl Headquartered in Moscow, Russia, Russky Alyuminiyum -- http://www.rusal.com/-- produces and smelts aluminium with US$6.65 billion in revenues in 2005. The group produced 2.714 million tons of primary aluminium in 2005. RusAl employs about 50,000 people in nine Russian regions and thirteen countries. About SUAL Headquartered in Moscow, Russia, Siberian-Urals Aluminium Company -- http://www.sual.com/-- produces and smelts aluminium and ranks amongst the world's top ten producers. It comprises 18 businesses that are located in nine Russian regions and in Ukraine, Zaporozhye City, are involved in the production of bauxite, alumina, primary aluminium, silicon, semi-finished and finished aluminium products. The Group's revenue for the year ended Dec. 31, 2005, was US$2.7 billion. It has 60,000 employees. * * * Standard & Poor's Ratings Services assigned its 'BB-'long-term corporate credit rating to SUAL International Ltd. The outlook is stable. Standard & Poor's also assigned its 'ruAA-' Russian national scale rating to SUAL. At the same time, Moody's Investors Service, assigned 'Ba3' corporate family rating to SUAL International Ltd. Outlook is stable. THEATRICAL EQUIPMENT: Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Chelyabinsk Region commenced bankruptcy supervision procedure on OJSC Chelyabinskiy Factory of Theatrical Equipment. The case is docketed under Case No. A76-9799/2006-60-S11. The Temporary Insolvency Manager is: E. Lysov Lenina Pr. 5 454007 Chelyabinsk Region Russia The Arbitration Court of Chelyabinsk Region is located at: Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: OJSC Chelyabinskiy Factory of Theatrical Equipment Lenina Pr. 5 454007 Chelyabinsk Region Russia TOYS LIBERTY: Court Names D. Yaroslavtsev as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. D. Yaroslavtsev as Insolvency Manager for CJSC Toys Liberty. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-26494/06-74-391B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Toys Liberty Smolenskiy Avenue, 13 119121 Moscow Region Russia VEGETABLES OF URAL: V. Vshivkov to Manage Insolvency Assets ----------------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Mr. V. Vshivkov as Insolvency Manager for LLC Agro Company Vegetables of Ural. He can be reached at: V. Vshivkov Tsvetnikov Str. 1 Revda 623283 Sverdlovsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A53-3827/2006-S2-8. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: LLC Agro Company Vegetables of Ural Sovkhoznaya Str. 5 Polevskoy Sverdlovsk Region Russia VNESHTORGBANK JSC: Buys 5% Stake in EADS for EUR922 Million ----------------------------------------------------------- JSC Vneshtorgbank notified European Aeronautic, Defence & Space Co. late Friday that it has bought a 5% stake for EUR922 million in EADS, Bloomberg News reports. The state-owned Vneshtorgbank, which is holding the shares for the Russian aerospace industry, has been purchasing shares in the defense and aerospace contractor for months. "This may strengthen the relationship between the Russian state and EADS, which in turn may help their prospects of sharing in valuable future orders and development work while partnering or manufacturing and materials supply with Russian industry," Will Mackie, an analyst at Mainfirst Bank AG in London told Bloomberg. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. At the beginning of 2006, VTB purchased a 98% stake in the Bank Mriya located in Ukraine. VTB has operated under a full banking License No. 1000 from the Central Bank of the Russian Federation since 1990. With 23,145 employees as of Dec. 31, 2005, the Group operates in the commercial banking sector including deposit taking and commercial lending, support of clients' export/import transactions, foreign exchange, securities trading, and trading in derivative financial instruments. The Government of the Russian Federation is the main shareholder of VTB and owns through the Federal Property Management Agency 99.9% of its registered share capital. * * * As reported in TCR-Europe on July 31, following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. VOLGOGRADSKIY INDUSTRIAL: V. Goncharov to Manage Assets ------------------------------------------------------- The Arbitration Court of Volgograd Region appointed Mr. V. Goncharov as Insolvency Manager for CJSC Volgogradskiy Industrial Complex (TIN 3435044739). He can be reached at: V. Goncharov Kholzunova Str. 19-9 400123 Volgograd Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-8624/06-s48. The Debtor can be reached at: CJSC Volgogradskiy Industrial Complex Druzhby Str. 74 Volzhskiy Volgograd Region Russia WOODWORKING COMPANY: Bankruptcy Hearing Slated for Nov. 21 ---------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region will convene at 11:00 a.m. on Nov. 21 to hear the bankruptcy supervision procedure on CJSC Woodworking Company (TIN 5254017399). The case is docketed under Case No. A43-15405/2006 27-607. The Temporary Insolvency Manager is: S. Slepov Beketova Str. 38a 603146 Nizhniy Novgorod Region Russia The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: CJSC Woodworking Company Zheleznodorozhnaya Str. 16 Sarov 607188 Nizhniy Novgorod Region Russia YUKOS OIL: Federal Court Nixes Moravel Appeal on US$680M Charge --------------------------------------------------------------- The Moscow District Federal Arbitration Court rejected an appeal filed by Moravel Investment Ltd., a subsidiary of Yukos' core shareholder, Group Menatep, to charge US$680 million from OAO Yukos Oil Co., RIA Novosti says. The Federal Arbitration Court upheld a July 17 ruling of the Moscow Arbitration Court rejecting the company's appeal to enforce a decision made by a London arbitration tribunal on Sept. 16, 2005, to charge the principal amount of the debt and interest from Yukos, Russia's news and information agency reports. On Sept. 30, 2003, Societe Generale Bank extended a US$1.6 billion loan to Yukos under which it may demand early repayment over threats of default. The bank then demanded the repayment of the remaining US$655.25 million debt when Yukos ran into financial difficulties. When Yukos failed to meet its obligations, the bank re-assigned its claim to Moravel Investment which then took the case to an arbitration tribunal in London, the Russian news agency relates. About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. The expected court ruling paves the way for the company's liquidation and auction. YUKOS OIL: Federal Court Denies State Appeal for Extra Tax Bill --------------------------------------------------------------- The Federal Arbitration Court in Moscow rejected an appeal by Russia's tax authorities to charge additional RUR165 million (about US$6.1 million) from Samaraneftegaz, a subsidiary of OAO Yukos Oil Co., RIA Novosti reports. The federal court ruling upheld a decision by the Moscow Arbitration Court on Feb. 26 that invalidated an extra tax bill for January 2005 brought against Samaraneftegaz. Tax charges against Samaraneftegaz include: Year Amount ---- ------ 2001 RUR8.9 billion 2002 RUR8.7 billion 2004 RUR7 billion Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. The expected court ruling paves the way for the company's liquidation and auction. YUKOS OIL: To Seek US$50 Billion in Damages From Russia ------------------------------------------------------- GML (fka Group Menatep), the majority shareholder of OAO Yukos Oil Co., intends to seek more than US$50 billion in compensation against Russia, MosNews reports citing The Times as its source. The Times says the damages, which were previously estimated at US$30 billion, is set to rise to about US$50 billion. "We would have sold out of Yukos at this higher price, so when our accountants are finished working out the numbers I think the claim will be closer to US$50 billion," Tim Osborne, a director of GML, said. According to the report, GML is bringing the Energy Charter Treaty Claim against the Kremlin, seeking damages and accusing it of discriminatory treatment against the company. The case is being heard by the United Nations Commission on International Trade Law in the Hague. Mr. Osborne disclosed that GML decided to abandon settlement negotiations until Russian President Vladimir Putin is due to step down. Yukos, what was once Russia's largest oil producer, is now split into two parts: the Russian assets under administration, and the foreign assets held by a Dutch holding company. The company's Russian assets are likely to be sold to either Rosneft and Gazprom while the foreign properties are being sold off to return cash to GML and pay debts, MosNews relates. Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. The expected court ruling paves the way for the company's liquidation and auction. ZEMETCHINO-SUGAR: Court Names A. Bespalov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Penza Region appointed Mr. A. Bespalov as Insolvency Manager for OJSC Zemetchino-Sugar. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A 49-2233/2006-222b/3. The Arbitration Court of Penza Region is located at: Belinskogo Str. 2 440600 Penza Region Russia The Debtor can be reached at: OJSC Zemetchino-Sugar Zavodskoy Pr. 1 Zemetchino 442000 Penza Region Russia ========= S P A I N ========= IM CAJAMAR: Moody's Junks EUR12-Million Series E Notes ------------------------------------------------------ Moody's Investors Service assigned these definitive ratings to the debt to be issued by IM CAJAMAR 4 FONDO DE TITULIZACI�N DE ACTIVOS: -- EUR961.5 million Series A notes: Aaa; -- EUR25 million Series B notes: Aa3; -- EUR5 million Series C notes: Baa1; -- EUR8.5 million Series D notes: Ba1 and -- EUR12 million Series E notes: Ca. This transaction marks the fourth time that Cajamar has independently tapped the residential mortgage-backed securities market. The products being securitized are first-lien mortgage loans granted to individuals, all of whom will use these loans to acquire properties located in Spain. All of the mortgage loans were originated by Cajamar, which will continue to service them. Strong features within this deal include among others: -- good collateral in terms of LTV; -- a reserve fund to cover potential shortfalls in interest or principal; -- a 12-month artificial write-off mechanism; and -- the fact that all the loans are secured by a first-lien mortgage guarantee. It is worth pointing out that the reserve fund will be fully funded with the benefits from the issuance of Series E Notes. Weaker features in Moody's opinion include: -- about half of the debtors have the possibility of enjoying automatic discounts in their margin based on their degree of linkage to Cajamar; -- geographical concentration in the regions of Andalusia and Murcia; -- pro rata amortization of the notes; -- the negative impact of the interest deferral trigger on the subordinated series; and -- interest rate risk only partially hedged. These increased risks are reflected in the credit enhancement calculation. As of Aug. 25, 2006, the provisional portfolio comprises 10,921 loans for a total amount of EUR1,205,909,409. The original weighted average LTV (WALTV) is 67.83%. The current WALTV is 65.43%. The average loan size is EUR110,921 and the largest loan is EUR780,599. The loans have been originated between 1994 and 2006 with a weighted average seasoning of 1.05 years and a weighted average remaining term of 24.90 years. All the loans are paid via direct debit. No loan more than 30 days in arrears will be finally securitized. Moody's based the ratings primarily on: -- an evaluation of the underlying portfolio of loans; -- historical performance information; -- the swap agreement partially hedging the interest rate risk; -- the credit enhancement provided through the GIC account, the pool spread, the reserve fund and the subordination of the notes; and -- the legal and structural integrity of the transaction. The ratings address the expected loss posed to investors by the legal final maturity (March 22, 2049). In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal on Series A, B, C and D at par on or before the rated legal final maturity date, and for ultimate payment of interest and principal at par on or before the rated legal final maturity date on Series E. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Moody's will monitor this transaction on an ongoing basis. PYME BANCAJA: Moody's Rates EUR28.7-Mln Series D Notes at (P)C -------------------------------------------------------------- Moody's Investors Service assigned these provisional (P) ratings to the debt to be issued by Spain's PYME BANCAJA 5, FTA: -- EUR260.0 million Series A1 notes: (P)Aaa; -- EUR185.0 million Series A2 notes: (P)Aaa; -- EUR618.2 million Series A3 notes: (P)Aaa; -- EUR62.7 million Series B notes: (P)A2; -- EUR24.1 million Series C notes: (P)Baa3; and -- EUR28.8 million Series D notes: (P)C. The provisional ratings address the expected loss posed to investors by the legal final maturity (Feb. 14, 2039). In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date on Classes A/B/C, and for ultimate payment of interest and principal at par on or before the rated final legal maturity date on Class D. The ratings do not address full redemption of the Notes on the expected maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. PYME Bancaja 5, FTA is a securitization fund created with the aim of purchasing a pool of loans granted by Caja de Ahorros de Valencia, Castellon y Alicante (Bancaja) to Spanish small- and medium-sized enterprises. Strong features within this deal include among others: -- a reserve fund to cover potential shortfalls in interest or principal; -- an 18-month artificial write-off mechanism; -- the fact that the management company will elect the loans from the provisional pool that will result in the least concentrated securitized pool; and -- good performance of Bancaja's previous FTPYME deals. The deal's weaker features include: -- interest rate risk only partially hedged; -- pro rata amortization of the notes; -- geographical concentration in the region of Valencia; (4) the negative impact of the interest deferral trigger on the subordinated series; and -- 66% of the portfolio is concentrated in Building and Real Estate sector according to Moody's industry classification. These increased risks were reflected in the credit enhancement calculation. The provisional pool of underlying assets was 1,276,186,875 as of Aug. 31, 2006. The loans were originated between 2001 and April 2006, with a weighted average seasoning of 1.01 years and a weighted average remaining term of 6.68 years. The loan with the longest duration matures in December 2035. Around 56.71% of the pool enjoys a grace period on principal payments with an average length of five quarters. Around 77% of the outstanding of the portfolio is secured by a mortgage guarantee over different types of properties. The remaining 22% is secured by personal guarantee. Geographically the pool is concentrated in Valencia (50.86%), Madrid (16.81%) and Catalonia (9.08%). Moody's based the provisional ratings primarily on: -- an evaluation of the underlying portfolio of loans; -- historical performance information; -- the swap agreement partially hedging the interest rate risk; -- the credit enhancement provided through the Guaranteed Investment Contract account, the pool spread, the reserve fund and the subordination of the notes; and -- the legal and structural integrity of the transaction. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only reflect the agency's preliminary credit opinions regarding the transaction. Upon a conclusive review of the final pool of assets and the final documentation, Moody's will endeavor to assign a definitive rating to the notes. A definitive rating, if any, may differ from a provisional rating. ============= U K R A I N E ============= DUKO LLC: Donetsk Court Names Privatbank to Liquidate Assets ------------------------------------------------------------ The Economic Court of Donetsk Region appointed CJSC Privatbank as Liquidator for LLC Duko (code EDRPOU 23426351). The Liquidator can be reached at: CJSC Privatbank Kramatorsk Dnipropetrovsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 26. The case is docketed under Case No. 42/133-B. The Debtor can be reached at: LLC Duko Yuvilejna Str. 50/128 Kramatorsk 84300 Donetsk Region Ukraine GAZPROM OAO: Ukraine Presents Scheme to Keep US$95 Gas Price ------------------------------------------------------------ The Ukrainian government is offering to repay its US$322 million debt to RosUkrEnergo, a unit of OAO Gazprom, to keep the gas prices at US$95 in the fourth quarter of 2006. The proposal follows an agreement between Gazprom Chief Executive Alexei Miller and Ukraine Fuel and Energy Minister Yuriy Boiko concerning the country's looming fuel crisis in the next six months from October 2006 to March 2007. Ukraine is offering to pay state-owned gas firm Naftogaz Ukrainy's US$322 million debt in three installments: -- US$150 million on Sept. 17, -- US$150 million on Sept. 25, and -- US$22 million in early October. Gazprom is mulling to hike its gas prices in Ukraine after sealing a deal early this month with Turkmenistan. Under the contract, Gazprom will buy 50 billion cubic meters of gas from Turkmenistan at US$100 per 1,000 cubic meters, up from previous price of US$65 per 1,000 cubic meters. With the higher cost, Gazprom is demanding that Ukraine pay between US$135 and US$140 per 1,000 cubic meters of gas. Gazprom, through RosUkrEnergo, has been supplying Russian and Turkmen gas to Ukraine since January 2006. The company buys Russian gas for US$230 per 1,000 cubic meters. The blend of Russian and Turkmenian gas is then sold to Ukrainian consumers for US$95 per 1,000 cubic meters. About Naftogaz Ukrainy Headquartered in Kiev, Ukraine, Naftogaz Ukrainy OJSC -- http://www.naftogaz.com/-- produces and transmits of oil and gas. 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. LADA-N: Court Names Mihajlo Tsurika as Insolvency Manager --------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Mihajlo Tsurika as Liquidator/Insolvency Manager for LLC Lada-N (code EDRPOU 32819237). He can be reached at: Mihajlo Tsurika General Karpenko Str. 2/1-41 54038 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 4. The case is docketed under Case No. 14/190/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine MARIOL-TEHNO MIKOLAIV: Court Names Mihajlo Tsurika as Liquidator ---------------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Mihajlo Tsurika as Liquidator/Insolvency Manager for LLC Mariol-Tehno Mikolaiv (code EDRPOU 33188817). He can be reached at: Mihajlo Tsurika General Karpenko Str. 2/1-41 54038 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 8. The case is docketed under Case No. 5/352/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine SHALFEJNE: Court Names Vasil Kuhta as Insolvency Manager -------------------------------------------------------- The Economic Court of AR Krym Region appointed Vasil Kuhta as Liquidator/Insolvency Manager for OJSC Shalfejne (code EDRPOU 00388116). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 3. The case is docketed under Case No. 2-20/6654-2006. The Economic Court of AR Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region Ukraine The Debtor can be reached at: OJSC Shalfejne Shkilna Str. 3 Razdolne Sovetskij District 97215 AR Krym Region Ukraine TISSA: Court Names Mihajlo Tsurika as Insolvency Manager -------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Mihajlo Tsurika as Liquidator/Insolvency Manager for LLC Tissa (code EDRPOU 32819284). He can be reached at: Mihajlo Tsurika General Karpenko Str. 2/1-41 54038 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 4. The case is docketed under Case No. 148/188/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine TRANSUNIVERSAL: Court Names Nina Saricheva as Liquidator -------------------------------------------------------- The Economic Court of Odessa Region appointed Nina Saricheva as Liquidator/Insolvency Manager for LLC Transuniversal (code EDRPOU). She can be reached at: Sabanskij Lane 2 65014 Odessa Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 21. The case is docketed under Case No. 24/171-06-7241. The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region Ukraine The Debtor can be reached at: LLC Transuniversal Kulikove Pole 1/131 65079 Odessa Region Ukraine VASKO: Ivano-Frankivsk Court Names Andrji Budz as Liquidator ------------------------------------------------------------ The Economic Court of Ivano-Frankivsk Region appointed Andrji Budz as Liquidator/Insolvency Manager for LLC Vasko (code EDRPOU 30535659). He can be reached at: Andrji Budz Shevchenko Str. 14 Stari Kuti Kosivskij District Ivano-Frankivsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 30. The case is docketed under Case No. B-7/40. The Economic Court of Ivano-Frankivsk Region is located at: Shevchenko Str. 16a 76000 Ivano-Frankivsk Region Ukraine The Debtor can be reached at: LLC Vasko Zhabyevska Str. 1 Verhovuna 78700 Ivano-Frankivsk Region Ukraine =========================== U N I T E D K I N G D O M =========================== 4 CLEAN: Appoints Joint Administrators from Gerald Edelman ---------------------------------------------------------- Ian Douglas Yerrill and Bernard Hoffman of Gerald Edelman Business Recovery were appointed joint administrators of 4 Clean Supplies Limited (Company Number 05580459) on Aug. 22. Gerald Edelman -- http://www.geraldedelman.com/-- is registered to carry on audit work by the Institute of Chartered Accountants in England and Wales and is authorized and regulated by the Financial Services Authority. Gerald Edelman Financial Solutions Ltd is an appointed representative of Independent Solutions Group Ltd who is regulated by the Financial Services Authority. Headquartered in Kent, United Kingdom, 4 Clean Supplies Limited supplies consumables to the dry cleaning industry. A AND A: Taps C. H. I. Moore to Liquidate Assets ------------------------------------------------ C. H. I. Moore of K.J. Watkin & Co. was appointed Liquidator of A and A Tree Surgery Limited on June 28 for the creditors' voluntary winding-up procedure. The company can be reached at: A and A Tree Surgery Limited 42 Mostyn Avenue Llandudno Gwynedd LL301DZ United Kingdom Tel: 01492 872 594 ALAN CORPORATE: Creditors Ratify Voluntary Liquidation ------------------------------------------------------ Creditors of Alan Corporate Promotion Limited ratified on June 27 the resolution for voluntary liquidation together with the appointment of Robert C. Keyes and Gareth W. Roberts of Hurst Morrison Thomson Corporate Recovery LLP as Liquidators of the company. The company can be reached at: Alan Corporate Promotion Limited Unit 17 Eversley Way Thorpe Industrial Estate Egham Surrey TW20 8RG United Kingdom Tel: 01784 470 020 BAA PLC: Reports GBP13 Million Cost From August Terror Alert ------------------------------------------------------------ BAA PLC's UK airports handled a total of 14.3 million passengers in August 2006, an increase of 0.3% on August 2005. Despite the sudden tightening of security at all UK airports on Aug. 10, fewer than 2% of a total of 116,000 flights were cancelled at BAA's UK airports. Passenger numbers fell 5% against forecast with a loss of revenue and incurred costs for the month of GBP13 million, which includes a number of 'one-off' costs specifically related to the immediate period following the introduction of the new security measures The market most affected by the disruption was UK Domestic where passenger numbers were down 7.6%. European scheduled traffic was up 4.5%. European charter traffic was down 6.8% although this was largely due to the ongoing competition from low cost scheduled services. North Atlantic traffic fell 3.3%, whilst other long haul traffic grew 8.8%, in line with recent trends. Among individual airports, Heathrow and Glasgow both saw passenger numbers fell 2.2%, whilst Edinburgh saw a decrease of 1.3%. Stansted continued to see good growth with a 4.9% gain. Gatwick's grew 2.1%, while Aberdeen improved on recent trends with an increase of 8.1%. Southampton recorded growth of 1%. The number of air transport movements recorded increased 0.1% on last year, when British Airways also suffered flight cancellations as a result of the Gate Gourmet dispute. In total cargo tonnage was down 7.6% on last year. 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. Itsairports handle over 117 million international passenger during the 12 months up to October 2005. International passengers make up 81% of its totalairport 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. BAGUETTE BITE: Brings In Milner Boardman as Joint Administrators ---------------------------------------------------------------- Colin Burke and Gary J. Corbett of Milner Boardman & Partners were appointed joint administrators of Baguette Bite Limited (Company Number 04895405) on Aug. 31. Headquartered on Hale, Altrincham, South Manchester, Milner Boardman -- http://www.milnerboardman.co.uk/-- is an independent firm of chartered accountants and business advisers. Headquartered in Liverpool, United Kingdom, Baguette Bite Limited is engaged in catering. BIG HAIRY: Appoints Peter Engel as Liquidator --------------------------------------------- Peter W. Engel of Solomon Hare Business Rescue was appointed liquidator of Big Hairy Monsters Ltd. on June 23 for the creditors' voluntary winding-up proceedings. The company can be reached at: Big Hairy Monsters Ltd. 6 West Park Bristol Avon BS8 2LT United Kingdom Tel: 01454 320 500 BRADLEY COMMUNICO: Hires T. Papanicola to Liquidate Assets ---------------------------------------------------------- T. Papanicola of Bond Partners LLP was appointed Liquidator of Bradley Communico Limited on July 5 for the creditors' voluntary winding-up procedure. The company can be reached at: Bradley Communico Limited North Lodge Coneysthorpe York YO607DD United Kingdom Tel: 0870 922 0707 CARPET COURIERS: Brings In Liquidators from Vantis Redhead ---------------------------------------------------------- G. Mummery and P. Atkinson of Vantis Redhead French Limited were appointed liquidators of Carpet Couriers Limited on June 26 for the creditors' voluntary liquidation procedure. The company can be reached at: Carpet Couriers Limited 11 London Road Westside Centre Stanway Colchester Essex CO3 8PH United Kingdom Tel: 01206 212 313 CHELSEA CARPET: Appoints Liquidator from Rendell Thomson -------------------------------------------------------- Robert James Thompson of Rendell Thomson was appointed liquidator of Chelsea Carpet Company Limited on June 20 for the creditors' voluntary winding-up proceedings. The company can be reached at: Chelsea Carpet Company Limited Unit 2 Capital Business Centre Willow Lane Mitcham Surrey CR4 4NQ United Kingdom Tel: 020 8687 2889 CLUB HEAVEN: Brings In Liquidator from Begbies Traynor ------------------------------------------------------ S. J. Williams of Begbies Traynor was appointed Liquidator of Club Heaven & Hell (Leeds) Ltd. (formerly Hallco 314 Limited) on July 11 for the creditors' voluntary winding-up procedure. The company can be reached at: Club Heaven & Hell (Leeds) Ltd. Unit 5-6 Metropolitan Business Park Preston New Road Blackpool FY3 9LT United Kingdom Tel: 0113 243 9963 COLLINS & AIKMAN: Customers Oppose Committee's Planned Inquiries ---------------------------------------------------------------- The request of the Official Committee of Unsecured Creditors of Collins & Aikman Corporation and its debtor-affiliates to conduct examinations and obtain documents from the Debtors' three largest customers, Ford Motor Corporation, General Motors Corporation, and DaimlerChrysler Corporation, drew fire from both the Debtors and the affected customers. As reported in the Troubled Company Reporter on Aug. 18, 2006, the committee wished to obtain additional evidence relating to potential causes of action that may be asserted against these principal customers under applicable fraudulent transfer and antitrust laws. Objections (1) Debtors The Committee seeks overly broad discovery with respect to tenuous causes of action for which it lacks standing at a particularly sensitive juncture in the Debtors' Chapter 11 cases, Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, argues. As previously reported, the Committee wants to conduct an examination under Rule 2004 of the Federal Rules of Bankruptcy Procedure against DaimlerChrysler Corporation, General Motors Corporation, and Ford Motor Company to investigate alleged fraudulent actions. Mr. Schrock points out that the Committee's requested discovery is duplicative of an investigation currently being conducted by the Debtors. The Debtors believe that through the Request, the Committee has turned to an ill-timed effort to gain negotiation leverage with respect to the Debtors' plan of reorganization. Mr. Schrock argues that these tactics directed at DaimlerChrysler, GM, and Ford are not only outside the permissible scope of Rule 2004 but also place at risk the success of the Debtors' ongoing negotiations with their major customers regarding the global resolutions necessary for the Debtors to emerge from bankruptcy. Mr. Schrock relates that, as reflected in the recently filed Disclosure Statement and the Plan of Reorganization, the value of the Debtors' enterprise appears to be substantially below the debt owed to its lenders. The Debtors continue to be engaged in productive discussions with the Customers regarding the award of future new business, the resolution of outstanding commercial issues, and the reconciliation of prepetition claims, Mr. Schrock says. The Debtors ask the U.S. Bankruptcy Court for the Eastern District of Michigan to view the Committee's request in its true light -- a harassment tactic being used in an effort to gain leverage in negotiations with respect to the Plan. (2) GM E. Todd Sable, Esq., at Honigman Miller Schwartz and Cohn LLP, in Detroit, Michigan, tells Judge Rhodes that the Committee has sought expansive discovery to investigate claims that can be described, at best, as specious. According to Mr. Sable, the Committee's fraudulent transfer theory can be summarized as: if a debtor loses money on a contract with a third party that the debtor entered into at a time when it was insolvent, then, by definition, a debtor is entitled to collect the amount of the losses under such contract. Fundamentally, this theory ignores the risks inherent in contracting in a free market, which include fluctuating raw material costs, rising labor costs and a myriad of other factors that impact upon a contract's ultimate profitability, Mr. Sable points out. Mr. Sable relates that the Debtors are investigating the facts underlying the Committee's allegations and analyzing the attenuated legal theory introduced by the Committee in support of those claims. The Court should not take the extraordinary step of divesting the Debtors of the right to pursue, settle or abandon those claims, Mr. Sable says. (3) Ford The Committee, by its own admission, seeks permission to go on a "fishing expedition" into the confidential business records of Ford, DaimlerChrysler and GM to investigate alleged fraudulent transfers. Stephen S. LaPlante, Esq., at Miller, Canfield, Paddock and Stone, PLC, in Detroit, Michigan, points out that while the Request was filed a few weeks before the Plan, it is apparent that the Committee was well aware of the terms and conditions of the Plan and the treatment provided for its constituencies. Mr. LaPlante explains that the Plan offers little, if anything, for unsecured creditors and asserts that unsecured creditors are out of the money. The filing of the Request at the same as the Debtors' determination of the treatment for unsecured creditors and the commencement of the Plan confirmation process is not mere coincidence, Mr. LaPlante notes. Mr. LaPlante argues that the Request lacks any discernible legal basis or legitimate purpose. Its apparent purpose is to unduly pressure Ford, GM and DaimlerChrysler in an effort to extract an enhanced payment under the Plan. Ford denies that it engaged in any collusive conduct with DaimlerChrysler, GM or any other competitor. Mr. LaPlante assure the Court that information and decisions about the pricing of component parts purchased from suppliers like the Debtors are confidential and proprietary to Ford. (4) DaimlerChrysler James A. Plemmons, Esq., at Dickinson Wright PLLC, in Detroit, Michigan, asserts that overall, the Committee's claims are prima facie insufficient to state a claim and the timing of the Committee's Request speaks volumes as to its true motivations. The discussions taking place now between the Customers and Debtors may well determine whether the Debtors are able to emerge from bankruptcy, Mr. Plemmons points out. As the Debtors' financial condition has continued to deteriorate, the Committee certainly recognizes that its members will likely not realize any substantial value on their claims against the Debtors, Mr. Plemmons said. "[T]he Committee is desperately resorting to the possible 'in terrorem' affect this sort of broad discovery might have and how it would negatively affect the Customers in their discussions with the Debtors," notes Mr. Plemmons. DaimlerChrysler asks the Court to not condone these tactics. 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) COOL-TOOLS: Creditors Confirm Liquidator's Appointment ------------------------------------------------------ Creditors of Cool-ToolsLimited (formerly Datatech Computer Software Limited) confirmed on July 13 the appointment of Tracy Ann Taylor of Abbey Taylor Limited as the company's Liquidator. The company can be reached at: Cool-ToolsLimited 9 Turbary Avenue Worcester WR4 0PS United Kingdom Tel: 01905 330 281 Web: http://www.cool-tools.co.uk/ CORLEY AND LAWRENCE: Creditors Confirm Voluntary Liquidation ------------------------------------------------------------ Creditors of Corley and Lawrence Limited confirmed on July 6 the resolutions for voluntary liquidation and the appointment of Martin Charles Armstrong of Turpin, Barker Armstrong as the company's Liquidator. The company can be reached at: Corley and Lawrence Limited 30-32 Crayford High Street Dartford DA1 4HG United Kingdom Tel: 01322 625 908 COTSWOLD HONEY: Taps Menzies to Administer Assets ------------------------------------------------- Andrew Gordon Stoneman and Paul John Clark of Menzies Corporate Restructuring were appointed joint administrators of Cotswold Honey Limited (Company Number 02884188) on Aug. 30. 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 Witney, United Kingdom, Cotswold Honey Limited manufactures food products. COTSWOLD SPECIALITY: Appoints Joint Administrators from Menzies --------------------------------------------------------------- Andrew Gordon Stoneman and Paul John Clark of Menzies Corporate Restructuring were appointed joint administrators of Cotswold Speciality Foods Limited (Company Number 03986910) on Aug. 30. 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. Cotswold Speciality Foods Limited can be reached at: Coach Way Mill Lane Benson Wallingford Oxfordshire OX10 6SU United Kingdom D & A SPORTS: Hires Liquidators from Gerald Edelman --------------------------------------------------- Bernard Hoffman and Ian Yerrill of Gerald Edelman Business Recovery were appointed liquidators of D & A Sports Limited on June 28 for the creditors' voluntary winding-up procedure. The company can be reached at: D & A Sports Limited 39 High Street Sittingbourne Kent ME10 4AW United Kingdom Tel: 01795 470 501 D M DONNER: Appoints Peter O'Hara as Liquidator ----------------------------------------------- Peter O'Hara of O'Hara & Co. was appointed Liquidator of D M Donner Building Contractors Ltd. on July 14 for the creditors' voluntary winding-up procedure. The company can be reached at: D M Donner Building Contractors Ltd. 23 Wilsic Road Tickhill Doncaster South Yorkshire DN119JG United Kingdom Tel: 01302 752 918 DESIGNERWEAR SHOP: Names Salman Saud to Liquidate Assets -------------------------------------------------------- Salman Saud of Saud & Company was appointed Liquidator of Designwear Shop Limited on July 13 for the creditors' voluntary winding-up procedure. The company can be reached at: Designwear Shop Limited Broad Street Mall Reading RG1 7QE United Kingdom Tel: 0118 957 5384 DOVE VALLEY: Creditors Confirm Voluntary Liquidation ---------------------------------------------------- Creditors of Dove Valley Limited confirmed on June 28 the resolutions for voluntary liquidation and the appointment of John Michael Munn and Joseph Gordon Maurice Sadler of Elwell Watchorn & Saxton LLP as joint liquidators of the company. The company can be reached at: Dove Valley Limited By-Ways Draycott-In-The-Clay Ashbourne Derbyshire DE6 5GX United Kingdom Tel: 01283 820 414 E. MELLIT: Brings In Administrators from Begbies Traynor -------------------------------------------------------- J. N. R. Pitts and S. L. Conn of Begbies Traynor were appointed joint administrators of E. Millet & Son Limited (Company Number 0393300) on Aug. 30. 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. E. Millet & Son Limited can be reached at: Pym Street Leeds West Yorkshire LS10 1PG United Kingdom Tel: 0113 243 4734 Fax: 0113 246 5551 E. SKORSKI: Appoints Joint Liquidators from Begbies Traynor ----------------------------------------------------------- Stephen Leonard Conn and Donald Bailey of Begbies Traynor were appointed Joint Liquidators of E. Skorski & Son Limited on July 14 for the creditors' voluntary winding-up proceeding. The company can be reached at: E. Skorski & Son Limited Cortress House Julia Street Manchester M3 1DQ United Kingdom Tel: 0161 831 7017 ETHNIC FOOD: Names Liquidator from Kay Johnson Gee -------------------------------------------------- Jonathan Elman Avery-Gee of Kay Johnson Gee was appointed Liquidator of Ethnic Food Company Limited on July 5 for the creditors' voluntary winding-up proceeding. The company can be reached at: Ethnic Food Company Limited Unit 5 Halfpenny Bridge Industrial Estate Lincoln Street Rochdale Lancashire OL111NS United Kingdom Tel: 01706 656 909 EUROLIFE ASSURANCE: Appoints Administrators from F A Simms ---------------------------------------------------------- Richard Frank Simms, Martin Richard Buttriss and Steven Peter Ford of F A Simms & Partners PLC were appointed joint administrators of Eurolife Assurance Company Limited (Company Number 967989) on Aug. 23. The administrators can be reached at: F A Simms & Partners PLC Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP United Kingdom Tel: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com Headquartered in London, United Kingdom, Eurolife Assurance Company Limited is engaged in insurance and reinsurance. EUROLIFE CAPITAL: Brings In Administrators from F A Simms --------------------------------------------------------- Richard Frank Simms, Martin Richard Buttriss and Steven Peter Ford of F A Simms & Partners PLC were appointed joint administrators of Eurolife Capital Funding PLC (Company Number 3763668) on Aug. 23. The administrators can be reached at: F A Simms & Partners PLC Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP United Kingdom Tel: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com Headquartered in London, United Kingdom, Eurolife Capital Funding PLC issues bonds listed on the Irish Stock Exchange. The company also carries businesses of traders, dealers and brokers in financial futures. FAST COMMERCIALS: Taps Liquidator from Kay Johnson Gee ------------------------------------------------------ Jonathan Elman Avery-Gee of Kay Johnson Gee was appointed Liquidator of Fast Commercials Limited on July 4 for the creditors' voluntary winding-up proceeding. The company can be reached at: Fast Commercials Limited 14 Sussex Street Rochdale Lancashire OL111EL United Kingdom Tel: 01706 660 184 FIBA-FIL: Brings In Jonathan M. Timmis to Liquidate Assets ---------------------------------------------------------- Jonathan M. Timmis of J M Marriott & Co. was appointed Liquidator of Fiba-Fil Limited on July 6 for the creditors' voluntary winding-up proceeding. The company can be reached at: Fiba-Fil Limited Lune Industrial Estate Lancaster LA1 5QP United Kingdom Tel: 01524 436 214 HENDON GLAZING: Calls In Joint Liquidators from Begbies Traynor --------------------------------------------------------------- Paul Michael Davis and Nicholas Roy Hood of Begbies Traynor (South) LLP were appointed Joint Liquidators of Hendon Glazing Company Limited on July 5 for the creditors' voluntary winding- up proceeding. The company can be reached at: Hendon Glazing Company Limited 78a Brent Street London NW4 2ES United Kingdom Tel: 020 8202 0531 INEOS VINYLS: Acquisition Cues Moody's to Confirm B3 Rating ----------------------------------------------------------- Moody's Investors Service confirmed B3 rating on notes of Ineos Vinyls Finance plc following acquisition of Ineos Vinyls group by Ineos Group, and assigned a B1 rating on EUR250 million second lien facilities issued by Ineos Holdings Limited. Concurrently, Moody's has withdrawn the B1 corporate family rating at EVC International NV and the B1 rating on its repaid senior facilities. Outlook is stable. This rating action concluded the review of Ineos Vinyls ratings initiated on May 25. As part of reorganization within the Ineos Group, Ineos Holdings Limited acquired Ineos Vinyls Group Limited, which had historically been separately held by common shareholders. As part of the financing structure, the Ineos Vinyls B3 notes are now guaranteed by Ineos Group Holdings plc, the immediate parent entity of Ineos Holdings Limited and the legacy EUR124.2 million senior facilities at EVC International NV have been refinanced with an inter-company loan. The guaranteed notes at Ineos Vinyls Finance plc, however, are subordinated to the inter-company loan and remain in a weaker position vis-a-vis the existing B2 rated notes at Ineos Group Holdings plc given the existing security structure available to those holders. To fund the inter-company loan, Ineos Holdings Limited raised EUR250 million in second lien facilities on the terms and conditions broadly in line with the existing B1 second lien facilities. Ineos Group Holdings plc is a diversified and integrated chemicals group headquartered in Southampton, the United Kingdom. Following the completion of the Innovene acquisition in December 2005, Ineos reported 2005 revenues of EUR22.3 billion and 1H 2006 revenues of EUR12.8 billion and EBITDA of 1.9 billion for 2005 and EUR1.1 billion for 1H 2006. INTELSAT: Launches Broadband Services with European Companies ------------------------------------------------------------- Intelsat Ltd., Telespazio and Hughes Network Systems Europe are cooperating in the launch of a new satellite broadband service platform to provide high-quality broadband IP connectivity, primarily serving Italian corporations with locations in Eastern Europe. Each location will be equipped with a Hughes very small aperture terminal or VSAT to access satellite broadband service with guaranteed levels of service. Intelsat is providing capacity on the IS-901 satellite located at 342 degrees E; Telespazio (Finmeccanica/Alcatel Company) is providing Internet backbone connectivity and managing operations from its teleport in Fucino, Italy; and Hughes is supplying the recently launched HN7000S product platform with DVB-S2 including a NOC (Network Operations Center) and broadband satellite routers, plus related services. End-user services will be marketed through Telespazio's and Hughes Europe's retail service provider sales channels. The new service platform will provide integrated networks to corporate enterprises incorporating fast Internet access, data and voice links, VoIP, and VPN solutions, giving them all the advantages of broadband connectivity, even where terrestrial infrastructure is not available. "This service offering is a perfect illustration of Intelsat's strategy to be a reliable wholesale supplier to its customers and to work in cooperation with them, enabling the deployment of new, flexible communications services in various parts of the world," said Intelsat's Stephen Spengler, Senior Vice President Europe, Africa, Middle East and Asia Pacific Sales. "Telespazio and Hughes Europe are important customers and trusted communications providers that we knew would share our commitment to providing superior connectivity services." "Hughes Europe is proud to be a contributor to this broadband service," said Luigi Pagni, Vice President, Hughes Europe. "Hughes technology is leading the way for enterprises and governments around the world to realize the benefits of an ever- growing suite of value-added broadband solutions, such as digital signage and other retail media networks, staff communications solutions, content distribution, access continuity and managed network services." "With the launch of this new broadband satellite service platform, our company intends to further reinforce its position in the international market, contributing to enhancing competitiveness in areas with a high potential for growth, but not always an adequate terrestrial communication infrastructure," said Telespazio's CEO, Giuseppe Veredice. About Hughes Hughes Europe is a group of European companies wholly owned by Hughes Network Systems, LLC (Hughes), and provides broadband satellite solutions, services and products throughout Europe, North Africa and the Middle East. Hughes provides broadband satellite networks and services to large enterprises, governments, small businesses and consumers. About Telespazio Telespazio, a joint venture between Finmeccanica (67%) and Alcatel (33%), is a world leader in satellite services from management of satellites to Earth observation services, and from satellite navigation to broadband multimedia telecommunications. Telespazio plays a leading role in the reference markets harnessing technological experience acquired over the years and through its participation in major European space programs such as: Galileo, Egnos, Gmes and Cosmo-Skymed. About Intelsat Intelsat, Ltd. - http://www.intelsat.com/-- offers telephony, corporate network, video and Internet solutions around the globe via capacity on 25 geosynchronous satellites in prime orbital locations. Customers in approximately 200 countries rely on Intelsat's global satellite, teleport and fiber network for high-quality connections, global reach and reliability. * * * As reported in the Troubled Company Reporter - Europe on Sept. 11, Moody's Investors Service assigned a B2 rating to Intelsat Corporation' (formerly PanAmSat Corp.) proposed senior unsecured term loan, the proceeds of which will be used to fund the repurchase of the existing 9% senior notes at Intelsat Corporation, that are subject to a mandatory change of control offer triggered by the acquisition of PanAmSat by Intelsat. If the change of control offer is fully accepted, Moody's will withdraw the ratings on the existing 9% senior notes, due 2014. Moody's views the new term loan as a dollar for dollar replacement of the existing notes, with minimal impact on leverage or cash flow. In addition, Moody's has affirmed all existing ratings. The outlook remains stable. Ratings actions: * Intelsat Corporation -- Proposed Sr. Unsecured Term Loan, due 2014, assigned B2; -- 9% senior notes, due 2014, affirmed B2 to be withdrawn if the change of control offer is fully accepted; -- Guaranteed Sr. Secured Revolver, due 2012, affirmed B1; -- Guaranteed Sr. Secured Loan A, affirmed B1; -- Guaranteed Sr. Secured Loan B, affirmed B1; -- 6.375% senior secured notes, due 2008, affirmed B1; -- 6.875% senior secured debentures, due 2028, affirmed B1; and -- 9% senior notes, due 2016, affirmed B2. * Intelsat Ltd. -- Corporate family rating, affirmed B2; -- SGL Rating, affirmed SGL-2; -- 5.25% Global notes, due 2008, affirmed Caa2; -- 7.625% Sr. Notes, due 2012, affirmed Caa2; and -- 6.5% Global Notes, due 2013, affirmed Caa2. * Intelsat (Bermuda) Ltd. -- 9.25% Guaranteed Sr. Notes, affirmed B2; -- Floating Rate Sr. Notes, affirmed Caa1; and -- 11.25% Sr. Notes, affirmed Caa1. * Intelsat Intermediate Holding Company Ltd. -- Sr. Discount Notes, due 2015, affirmed Caa1 * Intelsat Subsidiary Holding Company Ltd. -- Guaranteed Sr. Secured Revolver, due 2012, affirmed B1; -- Guaranteed Sr. Secured T/L B, due 2013, affirmed B1; -- Sr. Floating Rate Notes, due 2012, affirmed B2; -- 8.25% Sr. Notes, due 2013, affirmed B2; and -- 8.625% Sr. Notes, due 2015, affirmed B2. Moody's said the outlook is stable. At the same time, Standard & Poor's Rating Services assigned a 'B' rating to Intelsat Corp.'s US$667 million senior unsecured credit facility. INTELSAT LTD: Works with Telenor to Expand Network Coverage ----------------------------------------------------------- Intelsat Ltd. has entered into an agreement with Telenor Satellite Broadcasting aka TSBc to interconnect the two companies' fiber networks in London, providing customers of both Intelsat and Telenor with expanded, seamless access to new regions and services through each provider. Under the agreement, Telenor now has complete access to services on Intelsat's 51 satellites and GlobalConnex Media fiber and teleport network. This enables Telenor to offer global, end-to- end solutions to its broadcast customers who are primarily located in the UK, Scandinavia and Eastern Europe. Telenor expects this new capability to generate particular interest among European broadcasters who are seeking to carry US professional sports content, especially for basketball and ice- hockey, which are already carried on Intelsat's US fiber network in both high definition or HD and standard definition or SD. The London interconnect, being established as an extension of Intelsat's successful partnership with Broadwing Communications in the US, will allow Intelsat to provide its customers worldwide with services originating and terminating in six of Telenor's European points-of-presence or PoP. Content will pass through the interconnection in first generation, with no format changes or conversions necessary. This will allow Intelsat to better support coverage of sports and news events originating in the region, and improve access to DTH platforms on Intelsat and Telenor satellites that are co-located at 1 degreesW. David Gilmore, Telenor's Commercial Director, said, "This agreement is the latest phase in our successful, long-standing relationship with Intelsat. We expect this interconnect will significantly expand our customer service in Europe. We look forward to bringing enhanced sports and news coverage in both SD and HD to programmers in Europe, as well as marketing the 1 degreesW European DTH platform to programmers worldwide." Stephen Spengler -- Intelsat's Senior Vice President in Europe, Africa, Middle East and Asia Pacific Sales -- said, "The expansion of our presence in London is another example of how Intelsat, working in partnership with customers such as Telenor, is continuing to deliver more flexible and comprehensive solutions. Our customers can now access the huge quantity of content carried on our network each day and reach global cable and DTH platforms in more than 40 cities on three continents via a simple fiber connection." About Telenor Satellite Broadcasting Telenor Satellite Broadcasting -- http://www.telenorsbc.com/-- is part of Telenor Broadcast, one of the three core businesses of Norway's leading communications operator, Telenor ASA. Telenor Satellite provides extensive television broadcasting services for distribution, contribution and occasional applications to all the Nordic Broadcasters and many other broadcasters throughout Europe, using its hybrid network comprised of three satellites, terrestrial circuits and earth stations. It provides fixed satellite communication and uplinking services for data and remote Internet applications together with VSAT and broadband services in Europe and the Middle East. About Intelsat Intelsat, Ltd. - http://www.intelsat.com/-- offers telephony, corporate network, video and Internet solutions around the globe via capacity on 25 geosynchronous satellites in prime orbital locations. Customers in approximately 200 countries rely on Intelsat's global satellite, teleport and fiber network for high-quality connections, global reach and reliability. * * * As reported in the Troubled Company Reporter - Europe on Sept. 11, Moody's Investors Service assigned a B2 rating to Intelsat Corporation' (formerly PanAmSat Corp.) proposed senior unsecured term loan, the proceeds of which will be used to fund the repurchase of the existing 9% senior notes at Intelsat Corporation, that are subject to a mandatory change of control offer triggered by the acquisition of PanAmSat by Intelsat. If the change of control offer is fully accepted, Moody's will withdraw the ratings on the existing 9% senior notes, due 2014. Moody's views the new term loan as a dollar for dollar replacement of the existing notes, with minimal impact on leverage or cash flow. In addition, Moody's has affirmed all existing ratings. The outlook remains stable. Ratings actions: * Intelsat Corporation -- Proposed Sr. Unsecured Term Loan, due 2014, assigned B2; -- 9% senior notes, due 2014, affirmed B2 to be withdrawn if the change of control offer is fully accepted; -- Guaranteed Sr. Secured Revolver, due 2012, affirmed B1; -- Guaranteed Sr. Secured Loan A, affirmed B1; -- Guaranteed Sr. Secured Loan B, affirmed B1; -- 6.375% senior secured notes, due 2008, affirmed B1; -- 6.875% senior secured debentures, due 2028, affirmed B1; and -- 9% senior notes, due 2016, affirmed B2. * Intelsat Ltd. -- Corporate family rating, affirmed B2; -- SGL Rating, affirmed SGL-2; -- 5.25% Global notes, due 2008, affirmed Caa2; -- 7.625% Sr. Notes, due 2012, affirmed Caa2; and -- 6.5% Global Notes, due 2013, affirmed Caa2. * Intelsat (Bermuda) Ltd. -- 9.25% Guaranteed Sr. Notes, affirmed B2; -- Floating Rate Sr. Notes, affirmed Caa1; and -- 11.25% Sr. Notes, affirmed Caa1. * Intelsat Intermediate Holding Company Ltd. -- Sr. Discount Notes, due 2015, affirmed Caa1 * Intelsat Subsidiary Holding Company Ltd. -- Guaranteed Sr. Secured Revolver, due 2012, affirmed B1; -- Guaranteed Sr. Secured T/L B, due 2013, affirmed B1; -- Sr. Floating Rate Notes, due 2012, affirmed B2; -- 8.25% Sr. Notes, due 2013, affirmed B2; and -- 8.625% Sr. Notes, due 2015, affirmed B2. Moody's said the outlook is stable. At the same time, Standard & Poor's Rating Services assigned a 'B' rating to Intelsat Corp.'s US$667 million senior unsecured credit facility. KRISPY KREME: Expects to Report Lower Second Quarter Revenues ------------------------------------------------------------- Krispy Kreme Doughnuts, Inc., disclosed that on a preliminary basis it expects to report revenues of approximately US$110 million for the second quarter of fiscal 2007, which ended July 30, 2006, compared to revenues of approximately US$140 million for the second quarter of fiscal 2006. The decrease in revenues reflects a decline in the number of Company stores as well as lower sales to franchisees by the Company's Manufacturing and Distribution segment. Systemwide sales fell approximately 15% in the second quarter of fiscal 2007 compared to the second quarter of the prior year primarily due to an approximately 17% decrease in the number of factory stores to 303 (total stores, including satellites, decreased approximately 6%). Average weekly sales per factory store (which is computed by dividing sales from all factory and satellite stores by the number of factory stores in operation) increased approximately 8% and 5% in Company stores and systemwide, respectively, compared to the second quarter of fiscal 2006. Average weekly sales per store (which is computed by dividing sales from all factory and satellite stores by the aggregate number of all such stores in operation) increased approximately 7% for Company stores and decreased approximately 8% systemwide, compared to the second quarter of fiscal 2006. Systemwide average sales per store declined while Company average sales per store rose principally because the growth in satellite stores, which have lower average sales than factory stores, largely has been concentrated in franchise stores and not in Company stores. The average sales per unit data reflect, among other things, store closures and the related shift in off- premises doughnut production into a smaller number of stores. Systemwide sales data include sales at all Company and franchise locations. Systemwide sales are a non-GAAP financial measure; however, the Company believes systemwide sales information is useful in assessing the overall performance of the Krispy Kreme brand and, ultimately, the performance of the Company. "We continue to make progress in Krispy Kreme's turnaround," said Daryl Brewster, President and Chief Executive Officer. "In the past quarter we resolved several legal disputes with franchisees. We reduced our guarantees of franchisee obligations from approximately US$22 million to approximately US$14 million and successfully executed pricing to offset rising input costs. In the United States, we saw signs of stability in company stores as evidenced by average weekly sales trends. We also advanced our international expansion plans with the signing of franchisees in six new markets." The Company noted that its financial results continue to be adversely affected by the substantial costs associated with the legal and regulatory matters previously disclosed by the Company. The Company expects to report a net loss for the second quarter of fiscal 2007. Financial Position The Company believes that cash flow from operations, combined with other anticipated cash inflows, will be sufficient to meet its liquidity needs. As of July 30, 2006, the Company's cash balance was approximately US$28 million and its indebtedness was approximately US$121 million (including capital lease obligations), compared to approximately US$16 million and US$123 million, respectively, at Jan. 29, 2006. The January amounts exclude amounts relating to Glazed Investments, its sole consolidated franchisee at the time. As of July 30, 2006, the Company had no consolidated franchisees. About Krispy Kreme Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme (NYSE: KKD) -- http://www.krispykreme.com/-- is a leading branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. There are currently approximately 300 Krispy Kreme stores and 90 satellites operating systemwide in the U.S., 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 US$10 million to US$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 US$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 US$10 million to US$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. LEONARD FIELD: Appoints Joint Liquidators from Begbies Traynor -------------------------------------------------------------- Julie Anne Palmer and Michael Francis Stevenson of Begbies Traynor were appointed Joint Liquidators of Leonard Field Group PLC on July 18 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Leonard Field Group PLC 233 Botley Road Southampton SO190AA United Kingdom Tel: 023 8040 2135 LONDON BATHROOM: Nominates Liquidators from Abbott Fielding ----------------------------------------------------------- Nedim Ailyan and Andrew Tate of Abbott Fielding were nominated Joint Liquidators of The London Bathroom Studio Ltd. on July 17 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: The London Bathroom Studio Ltd. 14 Church Road Sidcup Kent DA146BX United Kingdom Tel: 020 8302 4023 MAPLE PRESS: Hires Joint Administrators from Tenon Recovery ----------------------------------------------------------- S. J. Parker and S Burkett-Coltman of Tenon Recovery were appointed joint administrators of Maple Press (U.K.) Limited (Company Number 2634094) on Aug. 24. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Maple Press (U.K.) Limited can be reached at: 439 440 Perth Avenue Slough Berkshire SL1 4TS United Kingdom Tel: 01753 531 511 Fax: 01753 691 881 METROPOLIS INT'L: Taps Ian William Kings to Liquidate Assets ------------------------------------------------------------ Ian William Kings of Tenon Recovery was appointed Liquidator of Metropolis International Developments Limited (t/a Metropolis Model Making) on June 27 for the creditors' voluntary winding-up procedure. The company can be reached at: Metropolis International Developments Limited The Grange Business Centre Belasis Avenue Billingham Cleveland TS231LG United Kingdom Tel: 01642 361 255 MID ESSEX: Creditors Confirm Liquidator's Appointment ----------------------------------------------------- Creditors of Mid Essex Fasteners Limited confirmed on July 14 the appointment of Peter George Byatt of Lake Bushells as the company's Liquidator. The company can be reached at: Mid Essex Fasteners Limited Beehive Lane Chelmsford CM2 9TE United Kingdom Tel: 01245 257 323 MONOCHROME EXPRESS: C. H. I. Moore Leads Liquidation Procedure -------------------------------------------------------------- C. H. I. Moore of K.J. Watkin & Co. was appointed Liquidator of Monochrome Express Limited on July 3 for the creditors' voluntary winding-up procedure. The company can be reached at: Monochrome Express Limited 174 Argyle Street Birmingham B7 5TE United Kingdom Tel: 0870 411 1121 NORTHERN PACKAGING: Calls In Liquidator from Debtmatters Ltd. ------------------------------------------------------------- G. N. Ratcliffe of Debtmatters Ltd. was appointed Liquidator of Northern Packaging & Display Limited on July 4 for the creditors' voluntary winding-up procedure. The company can be reached at: Northern Packaging & Display Limited 446 Bradford Road Batley West Yorkshire WF175LW United Kingdom Tel: 01924 476 666 NORTHERN REFRIGERATION: Claims Filing Period Ends Oct. 31 --------------------------------------------------------- Creditors of Northern Refrigeration Services Ltd. have until Oct. 31 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator E. Walls of Marlor Walls at: E. Walls Marlor Walls C12 Marquis Court Marquis Way Team Valley Gateshead NE11 0RU United Kingdom The company can be reached at: Northern Refrigeration Services Ltd. 25 Broomridge Avenue Condercum Park Estate Newcastle Upon Tyne Tyne And Wear NE156QN United Kingdom Tel: 0191 273 8651 OAKBUILD SERVICES: Taps Stephen Evans to Liquidate Assets --------------------------------------------------------- Stephen Evans of Pure Recovery LLP was appointed liquidator of Oakbuild Services Limited on June 22 for the creditors' voluntary winding-up procedure. The company can be reached at: Oakbuild Services Limited 22 Waverley Road Enfield Middlesex EN2 7BT United Kingdom Tel: 020 8364 6227 OLIVE GROVE: Appoints Liquidator from Parkin S. Booth & Co. ----------------------------------------------------------- Jonathan R. Booth of Parkin S. Booth & Co. was appointed Liquidator of Olive Grove Taverna Limited on July 4 for the creditors' voluntary winding-up proceeding. The company can be reached at: Olive Grove Taverna Limited Regina House 1 Victoria Street Liverpool L2 5QA United Kingdom Tel: 0151 342 9100 OLYMPIA FOODS: Names Jonathan Elman Avery-Gee Liquidator -------------------------------------------------------- Jonathan Elman Avery-Gee of Kay Johnson Gee was appointed Liquidator of Olympia Foods Limited on July 4 for the creditors' voluntary winding-up proceeding. The company can be reached at: Olympia Foods Limited Unit 2 Crawford Street M K Business Park Rochdale Lancashire OL165NU United Kingdom Tel: 01706 651 155 Web: http://www.olympiafoods.co.uk/ OMEGA DESIGN: Nominates Timothy Frank Corfield as Liquidator ------------------------------------------------------------ Timothy Frank Corfield of Griffin & King was nominated Liquidator of Omega Design and Developments Limited on July 4 for the creditors' voluntary winding-up proceeding. The company can be reached at: Omega Design and Developments Limited Unit 6 Villiers Trading Estate Marston Road Wolverhampton WV2 4LA United Kingdom Tel: 01902 711 011 Web: http://www.omegaconservatories.co.uk/ PARA-FAIR: Creditors Confirm Voluntary Winding-Up Procedure ----------------------------------------------------------- Creditors of Para-Fair International Limited confirmed on June 30 the resolutions for voluntary winding-up procedure and the appointment of Harjinder Johal and George Michael of Ashcrofts as joint liquidators of the company. The company can be reached at: Para-Fair International Limited 129 Shirland Road City of Westminster London W9 2EP United Kingdom Tel: 020 7266 5556 PRINT 2000: Creditors Confirm Voluntary Liquidation --------------------------------------------------- Creditors of Print 2000 (Stockport) Limited confirmed on June 8 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: Print 2000 (Stockport) Limited Unit 8 Enterprise Centre Two Chester Street Stockport Cheshire SK3 0BR United Kingdom Tel: 0161 477 2466 QUADRO CONSULTING: Creditors Ratify Voluntary Liquidation --------------------------------------------------------- Creditors of Quadro Consulting Limited ratified on July 14 the resolutions for voluntary liquidation. They also confirmed the appointment of Robert Cooksey of Bridgestones as Liquidator on the same day. The company can be reached at: Quadro Consulting Limited Sandon Buntingford Hertfordshire SG9 0RU United Kingdom Tel: 01763 274 156 RICHARD BARRY: G. W. Rhodes Leads Liquidation Procedure ------------------------------------------------------- G. W. Rhodes of Begbies Traynor was appointed Liquidator of Richard Barry Southern Marketing Limited on July 17 for the creditors' voluntary winding-up procedure. The company can be reached at: Richard Barry Southern Marketing Limited 2 Chapel Place Portslade Brighton BN411DR United Kingdom Tel: 01273 424 552 Web: http://richardbarry.co.uk http://www.richardbarry.co.uk RIVERSIDE CONFERENCE: Names Eileen T. F. Sale Liquidator -------------------------------------------------------- Eileen T. F. Sale of Sale Smith & Co. Limited was appointed Liquidator of Riverside Conference & Training Centre Limited on July 4 for the creditors' voluntary winding-up procedure. The company can be reached at: Riverside Conference & Training Centre Limited Austin Way Hampstead Industrial Estate Birmingham B42 1DU United Kingdom Tel: 0121 357 2323 S.T.A.R. CONSULTANCY: Creditors Confirm Liquidator's Appointment ---------------------------------------------------------------- Creditors of S.T.A.R. Consultancy (North East) Limited confirmed on July 13 the appointment of Ian William Kings of Tenon Recovery as the company's Liquidator. The company can be reached at: S.T.A.R. Consultancy (North East) Limited The Eco Centre Windmill Way Hebburn Tyne And Wear NE311SR United Kingdom Tel: 0870 751 7717 SABRE EMPLOYMENT: Hires Mark Peter Jones to Liquidate Assets ------------------------------------------------------------ Mark Peter Jones of Mark Jones & Co. was appointed Liquidator of Sabre Employment Limited on July 4 for the creditors' voluntary winding-up procedure. The company can be reached at: Sabre Employment Limited Unit 1-3 Deptford Park Business Centre Grinstead Road London SE8 5AD United Kingdom Tel: 020 8305 6060 SCENE INTERIORS: Calls In Joint Liquidators from Begbies Traynor ---------------------------------------------------------------- Simon Robert Haskew and Kenneth Stephen Chalk of Begbies Traynor were appointed Joint Liquidators of Scene Interiors Limited on July 14 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Scene Interiors Limited 6 The Drove West Wilts Trading Estate Westbury Wiltshire BA134JE United Kingdom Tel: 01373 827 465 Web: http://www.sceneinteriors.com/ SCOTTISH RE: On Track of Auction Process, Chief Executive Says -------------------------------------------------------------- Scottish Re Group Limited's Interim CEO Paul Goldean said that the Company is on track to meet its objective of completing an auction process for the possible sale of the Company, and that it is also reviewing its options to address short-term liquidity pressures. As part of the auction process, the Company has provided a number of highly qualified parties with due diligence information, including a confidential valuation study performed by a third party actuarial firm indicating, based on a variety of assumptions, an aggregate value for the Company in excess of the Company's latest reported GAAP book value. Scottish Re received proposals from a number of potential bidders on Sept. 8, 2006. The proposals will be reviewed by the Company's Management and Board of Directors in an effort to identify those that maximize shareholder value. Selected parties will be invited to a second round during which additional due diligence will occur and more specific second round proposals will be requested. After second round proposals are received, the Company may initiate exclusive negotiations with a potential bidder. It is possible that this process could result in an announcement of a transaction as early as mid- to- late October or early November. In addition, the Company has received three written proposals for possible financing and expects to receive several additional proposals in the near future. Each of these proposals is subject to certain terms and conditions that have not as of yet been negotiated. Scottish Re plans to raise between US$150 million and US$250 million to reduce short-term liquidity pressures under a combination of reinsurance arrangements and credit facilities. About Scottish Re Scottish Re Group Limited -- http://www.scottishre.com/-- offers reinsurance of life insurance, annuities and annuity-type products through its operating companies in Bermuda, Charlotte, North Carolina, Grand Cayman Dublin, Ireland, and Windsor, United Kingdom. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * As reported in TCR-Europe on Sept. 7, Moody's Investors Service changed the direction of review for Scottish Re Group Limited's ratings to uncertain from possible downgrade. The change in the direction of the ratings review impacts the company's Ba3 senior unsecured debt rating and the Baa3 insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. (SALIC) and Scottish Re (U.S.), Inc. Moody's Rates Scottish Re Group Limited as: -- Senior Unsecured, to Ba2 from Baa2; -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2; -- Subordinate Shelf, to (P)Ba3 from (P)Baa3; -- Junior subordinate Shelf, to (P)B1 from (P)Ba1; -- Preferred Stock, to B1 from Ba1; -- Preferred Shelf, to (P)B1 from (P)Ba1 In August, Fitch Ratings also initiated these rating actions: -- IDR downgraded to 'BBB-' from 'BBB'; -- 4.5% US$115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; -- 5.875% US$142 million hybrid capital units downgraded to 'BB' from 'BB+'; -- 7.25% US$125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. Fitch said all ratings remain on Rating Watch Negative. A.M. Best Co. has downgraded on Aug. 22, 2006, the financial strength rating to B+ from B++ and the issuer credit ratings to "bbb-" from "bbb+" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). A.M. Best has also downgraded the ICR of Scottish Re to "bb-" from "bb+". AM Best put all ratings under review with negative implications. On Aug. 21, 2006, Standard & Poor's Ratings Services lowered its counterparty credit rating on Scottish Re Group Ltd. to 'B+' from 'BB+'. SCOTTISH RE: Will Launch Second Round of Bidding for Company ------------------------------------------------------------ Scottish RE Group Limited told AFX News that selected entities will be invited to a second round of the bidding process for the acquisition of the company. Scottish RE said that the second round could be disclosed in October or November. According to the report, Scottish RE's shares went up US$1.13 or 12% to US$10.44 on Sept. 11 on the New York Stock Exchange when the company made the announcement, after months of uncertainty over its future. Scottish Re told AFX News that it has received three written proposals for possible funding. The company said it expects to receive several additional proposals in the future. The firm plans to raise up to US$250 million to decrease short-term liquidity pressures. The report says that among companies interested in purchasing Scottish RE could be Germany's Hannover Re AG. Hannover Re's chief executive raised expectations that it might be a bidder when he said he couldn't comment on whether he had signed a non-disclosure accord with Scottish Re, which he would have to do if his company were a potential bidder, according to AFX News. Executives of Hannover Re had said in the past that the firm would consider acquiring Scottish Re if the latter would be sold, AFX News states. About Scottish Re Scottish Re Group Limited -- http://www.scottishre.com/-- offers reinsurance of life insurance, annuities and annuity-type products through its operating companies in Bermuda, Charlotte, North Carolina, Grand Cayman Dublin, Ireland, and Windsor, United Kingdom. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * As reported in TCR-Europe on Sept. 7, Moody's Investors Service changed the direction of review for Scottish Re Group Limited's ratings to uncertain from possible downgrade. The change in the direction of the ratings review impacts the company's Ba3 senior unsecured debt rating and the Baa3 insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. (SALIC) and Scottish Re (U.S.), Inc. Moody's Rates Scottish Re Group Limited as: -- Senior Unsecured, to Ba2 from Baa2; -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2; -- Subordinate Shelf, to (P)Ba3 from (P)Baa3; -- Junior subordinate Shelf, to (P)B1 from (P)Ba1; -- Preferred Stock, to B1 from Ba1; -- Preferred Shelf, to (P)B1 from (P)Ba1 In August, Fitch Ratings also initiated these rating actions: -- IDR downgraded to 'BBB-' from 'BBB'; -- 4.5% US$115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; -- 5.875% US$142 million hybrid capital units downgraded to 'BB' from 'BB+'; -- 7.25% US$125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. Fitch said all ratings remain on Rating Watch Negative. A.M. Best Co. has downgraded on Aug. 22, 2006, the financial strength rating to B+ from B++ and the issuer credit ratings to "bbb-" from "bbb+" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). A.M. Best has also downgraded the ICR of Scottish Re to "bb-" from "bb+". AM Best put all ratings under review with negative implications. On Aug. 21, 2006, Standard & Poor's Ratings Services lowered its counterparty credit rating on Scottish Re Group Ltd. to 'B+' from 'BB+'. SHEP ASSOCIATES: Brings In Liquidators from F A Simms ----------------------------------------------------- Richard Frank Simms and Steven Peter Ford of F A Simms & Partners PLC were appointed liquidators of Shep Associates Limited on June 28 for the creditors' voluntary winding-up procedure. The company can be reached at: Shep Associates Limited Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP United Kingdom Tel: 01763 261 686 SHERWOOD CASTLE: Moody's Assigns (P)Ba2 Ratings to Notes -------------------------------------------------------- Moody's Investors Service assigned these provisional ratings to approximately GBP[53.07] million of asset-backed notes to be issued by Sherwood Castle Funding Series 2006-1 PLC: -- GBP[ ] Class S1 Floating Rate Asset-Backed Notes: (P)Ba2; -- EUR[ ] Class S2 Floating Rate Asset-Backed Notes: (P)Ba2; and -- US$[ ] Class S3 Floating Rate Asset-Backed Notes: (P)Ba2. Sherwood Castle Funding Series 2006-1 PLC is the sixteenth transaction issued out of Capital One Bank (Europe) PLC'scredit card master trust. Pursuant to the terms of the Series 2006-1 Notes, pro-rata allocation of funds from the receivables trust to the Series 2006-1 Notes may be used in priority to meet any shortfalls in finance charge allocations to meet payments required in respect of the outstanding referenced series issued out of the Castle Receivables Trust Limited. The Referenced Series comprise Series 2002-1, Series 2002-2, Series 2003-1, Series 2003-2, Series 2004-1, Series 2004-2, Series 2004-3 and Series 2005-1. Moody's has taken into account in its analysis the use of allocations to the Series 2006-1 Notes as effective enhancement for the Referenced Series. Series 2006-1 Notes will not commence amortisation until the investor interest for each Referenced Series has reduced to zero. The provisional ratings of the Class S1, S2 and S3 Notes are based on the benefit of a spread trapping account that will trap excess spread, in a manner similar to the spread accounts that support the Class C Notes of the Referenced Series. The Series 2006-1 spread account may be funded from excess spread arising from the pro-rata allocation of finance charge receivables from the receivables trust to the Series 2006-1, any excess spread shared by any Referenced Series and other series within the Trust and amounts on deposit in the spread account of any Referenced Series upon release of such amounts. The provisional ratings address the expected loss posed to investors by the legal final maturity date. In Moody's opinion, the structure allows for ultimate payment of interest and principal at par on or before the rated legal final maturity date. SHERWOOD CASTLE: S&P Assigns Low-B Ratings to EUR53-Mln Notes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR53 million (equivalent) asset-backed floating-rate notes to be issued by Sherwood Castle Funding Series 2006-1 PLC, a special-purpose entity. The notes are backed by collateral consisting of originated credit-card receivables. "Charge-offs have increased to unprecedented levels over the past couple of years. This is reflective of performance across the credit card industry generally," said Standard & Poor's credit analyst Nikki Patel. "Yield and payment rates have remained fairly stable over this period. The current series of notes will be issued to address the increase in charge-offs and maintain the ratings on and provide effective enhancement to certain existing series of notes under the Castle Trust program." Ms. Patel explained: "Currently, the 'BBB' rated notes in the previous public term series are supported by their own excess spread account. Credit enhancement will be provided to the series 2006-1 notes themselves through a second, separate, excess spread capture mechanism." This issuance will be the servicer Capital One Bank (Europe) PLC's ninth public securitization of U.K.-originated credit card receivables. As in previous transactions, the collateral consists of Visa, MasterCard, and American Express receivables generated on accounts owned by COBE. The most recent transaction, Sherwood Castle Funding Series 2005-1 PLC, was completed in August 2005. The key difference in this transaction is that only one class of notes will be issued, divided into three tranches. These will provide effective enhancement to all the existing public series issued under the Sherwood Castle Trust in the market (the referenced series). Ratings List Sherwood Castle Funding Series 2006-1 PLC EUR53 Million (Equivalent) Asset-Backed Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil.) ----- ------ ------ S1 BB GBPTBD S2 BB EURTBD S3 BB US$TBD TBD - To be determined. SHILDON PALLETS: Appoints T. Papanicola to Administer Assets ------------------------------------------------------------ T. Papanicola of Bond Partners LLP was appointed administrator of Shildon Pallets Limited (Company Number 03827068) on Aug. 25. The administrator can be reached at: Bond Partners LLP The Grange 100 High Street London N14 6TG United Kingdom Tel: 020 8444 2000 Fax: 020 8444 3400 Headquartered in Darlington, United Kingdom, Shildon Pallets Limited manufactures wood products. SPECIALIST JOINERY: Names A. H. Tomlinson to Liquidate Assets ------------------------------------------------------------- A. H. Tomlinson of Tomlinsons was appointed Liquidator of Specialist Joinery Services Limited on July 11 for the creditors' voluntary winding-up procedure. The company can be reached at: Specialist Joinery Services Limited Richmond House 90 Rose Place Liverpool L3 3BN United Kingdom Tel: 0151 207 4090 STEEL TEAM: Nominates Joint Liquidators from Abbott Fielding ------------------------------------------------------------ Nedim Ailyan and Andrew Tate of Abbott Fielding were nominated Joint Liquidators of Steel Team Southern Ltd. on June 29 for the creditors' voluntary winding-up proceeding. The company can be reached at: Steel Team Southern Ltd. Mackenzie House Coach & Horses Passage Tunbridge Wells Kent TN2 5NP United Kingdom Tel: 01892 614 311 STEPHEN BROWN: Names Timothy John Hargreaves as Administrator ------------------------------------------------------------- Timothy John Hargreaves of T H Associates was named administrator of Stephen Brown Associated Contractors Limited (Company Number 02935572) on Aug. 31. The administrator can be reached at: T H Associates Towngate House 116-118 Towngate Leyland Lancashire PR25 2LQ United Kingdom Tel: 01772 641146 Headquartered in Kent, United Kingdom, Stephen Brown Associated Contractors Limited is engaged in general construction of buildings and civil engineering work. SWITCH DESIGN: Appoints N. A. Bennett to Liquidate Assets --------------------------------------------------------- N. A. Bennett of Leonard Curtis was appointed Liquidator of Switch Design & Promotions Limited on July 14 for the creditors' voluntary winding-up proceeding. The company can be reached at: Switch Design & Promotions Limited 4 Square Rigger Row London SW113TZ United Kingdom Tel: 020 7978 4900 TOWERACTION LIMITED: Brings In Liquidator from Redman Nichols ------------------------------------------------------------- Andrew James Nichols of Redman Nichols was appointed Liquidator of Toweraction Limited on July 5 for the creditors' voluntary winding-up proceeding. The company can be reached at: Toweraction Limited Unit 5 Belprin Road Beverley North Humberside HU170LN United Kingdom Tel: 01482 866 492 VIZ COMIC: Taps William Paxton to Liquidate Assets -------------------------------------------------- William Paxton of Robson Laidler LLP was appointed Liquidator of Viz Comic Distributions on July 5 for the creditors' voluntary winding-up proceeding. The company can be reached at: Viz Comic Distributions Unit 14 Brough Park Way Newcastle Upon Tyne Tyne And Wear NE6 2YF United Kingdom Tel: 0191 228 4090 WORLD END: Creditors Confirm Liquidators' Appointment ---------------------------------------------------- Creditors of World End Imports (U.K.) Limited (t/a Think East Fashion Jewellery) ratified on July 14 the resolutions for voluntary liquidation. They also confirmed the appointment of Allan Cooper and John Russell of The P&A Partnership as Liquidators on the same day. The company can be reached at: World End Imports (U.K.) Limited Park House Green Road Harrogate North Yorkshire HG1 4BA United Kingdom Tel: 01765 640 189 XMP SERVICE: Appoints Ian William Kings to Liquidate Assets ----------------------------------------------------------- Ian William Kings of Tenon Recovery was appointed Liquidator of XMP Service Limited on July 5 for the creditors' voluntary winding-up procedure. The company can be reached at: XMP Service Limited Unit 10 Chillingham Industrial Estate Back Chapman Street Newcastle Upon Tyne NE6 2XX United Kingdom Tel: 0845 230 8044 * FTI Consulting to Acquire Financial Dynamics for $260 Million --------------------------------------------------------------- FTI Consulting, Inc. entered into an agreement to acquire privately held Financial Dynamics International (Holdings) Limited for approximately $260 million. "Our acquisition of FD is a unique opportunity to execute, in a single transaction, many of the strategic objectives for our international expansion and one that should enable us to achieve our 2009 Plan a year earlier than expected," Jack Dunn, FTI's president and chief executive officer, commented. "First, FD has senior level, deeply ingrained, trusted advisor relationships with businesses and governments in important financial centers throughout the world. These relationships will allow us to expand and grow our "gold standard" practices into new markets under the auspices and through the contacts of FD, a widely recognized and trusted brand. Second, FD brings global market leadership to FTI and our clients in a new practice area -- strategic business and financial communications -- one of the most critical areas facing corporate boards and executives given the vital and increasing importance of reputational risk. These strategic communications services represent immediate opportunity and value to our clients in the U.S. Finally, the core values of the great professionals at FD are the same as our own: dedication to clients, highest standards of integrity and a commitment to bring the very best in intellectual capital to bear on the financial, regulatory and reputational issues that affect the futures of our clients. Teams of professionals from both companies are already at work on the integration and client service opportunities that will allow us to hit the ground running." "FTI is a company we have greatly admired for some time and we believe this partnership is a perfect commercial, cultural and strategic fit for FD," Charles Watson, CEO of FD, added. "We live and operate in complementary markets and practices where we enjoy numerous relationships and interests in common. The potential for collaboration is compelling. Joining forces with a recognized leader in the consulting world that, like FD, focuses on critical issues that confront clients, also marks a landmark for the communications industry -- creating the optimal environment in which FD will continue to thrive and grow for the benefit of all our staff and, most importantly, our clients. We are genuinely excited about our future together." FD's business is structured around four principal practice areas: * Financial Communications: FD provides counsel on matters that affect the valuation of companies' securities in the public markets, such as M&A transactions, capital market activities including IPOs, regulatory and corporate governance issues and financial markets intelligence; * Brand Communications: FD counsels clients on all issues pertaining to protecting and enhancing the reputation of their products and services; * Public Affairs and Crisis & Issues Management: FD advises on issues affecting corporate and organizational reputation, relations with governments at the national and local level, public policy and all aspects of crisis communications; * Business Consulting: FD's business consulting practice is at the intersection of all three communications practices. It uses extensive diagnostic research tools to assess brand, reputation and valuation issues and develops strategies to address and resolve the issues coming from the research. Purchase Price The purchase price for the acquisition is $260 million, consisting of $215 million in cash, $20 million in notes and deferred purchase obligations and $25 million of restricted FTI stock. To finance the acquisition of FD, FTI intends to offer $215 million of senior unsecured notes. Deutsche Bank Securities, Inc., which acted as financial advisor to FTI, is committed to provide the financing to fund the acquisition. It is anticipated that the acquisition will close in the first week of October and be accretive to FTI's 2007 earnings per diluted share. FD is currently owned by Advent International, a global private equity firm, and FD management. Advent has elected to receive cash for all of its holdings. Management shareholders are expected to elect the alternate offer comprised of cash, the FTI restricted stock and the opportunity to participate in future contingent consideration of up to $80 million based on exceeding certain financial objectives over the next five years, which would further align the interests of FD professionals and FTI and its shareholders. Robert W. Baird & Co. acted as exclusive financial advisor to FD. FTI intends to operate FD as a separate business segment run by the existing management team, including FD's London based Group CEO Charles Watson and U.S. CEO Declan Kelly. Margin Improvement Steps In light of the acquisition and in keeping with the Company's previously announced commitment to address underperforming operations, FTI has taken action to restructure its U.K. operations and consolidate certain non-core practices in the U.S. The Company expects to record a one-time charge related to this of approximately $20 million ($0.28 per diluted share after tax), in the third quarter, primarily reflecting severance costs. Excluding the one-time charge, the Company is maintaining its earnings guidance for 2006 and continues to expect earnings per diluted share to be in a range of $1.26 to $1.35, which includes the impact of the FD acquisition and expensing stock options. About FD FD is a strategic business and financial communications consultancy, providing a comprehensive range of solutions for the communications requirements of the corporate boardroom. The Company advises over 750 clients with a staff of over 450 people. It has offices in London, New York, Washington, San Francisco, Frankfurt, Paris, Dublin, Boston, Bahrain, Chicago, Hong Kong, Moscow, Dubai, Manchester, Johannesburg and Cape Town. About FTI Consulting FTI Consulting Inc. (NYSE:FCN) provides problem-solving consulting and technology services to major corporations, financial institutions and law firms when confronting critical issues that shape their future and the future of their clients, such as financial and operational improvement, major litigation, complex investigations, mergers and acquisitions and regulatory issues. FTI has 25 offices in major U.S. cities, and offices in Europe, Asia and Australia. FTI's total workforce of more than 1,400 employees includes numerous PhDs, MBAs, CPAs, CIRAs and CFEs, who are committed to delivering the highest level of service to clients. * PricewaterhouseCoopers Launches New Restructuring Practice ------------------------------------------------------------ PricewaterhouseCoopers LLP formally launched on Sept. 12, PricewaterhouseCoopers Corporate Advisory & Restructuring LLC, a new business providing integrated financial, transactional and operational services to underperforming and distressed companies. The company's restructuring advisor Tom Sperry has joined PwC CAR's leadership team as U.S. Market Leader. Peter Spratt will serve as president of PwC CAR and head of PwC's global restructuring practice. PwC CAR's formation marks the natural extension of PricewaterhouseCooper's related service offerings and market leading global restructuring capabilities into the U.S. market. These services encompass value-enhancing solutions for companies at various stages of financial pressure. With its ability to leverage the global network of PricewaterhouseCoopers and its extensive range of services and industry-specific capabilities, PwC CAR addresses the increasing demand for a suite of financial, transactional and operational services that clients need to implement the types of changes that lead to a sustained recovery. "PwC CAR will bring fresh thinking and a renewed approach to the corporate turnaround market for the benefit not only of companies in difficulty, but also for the restructuring business itself," Mr. Spratt disclosed. On the addition of Mr. Sperry, Mr. Spratt commented, "Tom brings a wealth of practical experience and creativity to the corporate restructuring market in the U.S. that will enhance PwC CAR's broad capabilities in solving problems of companies facing operational issues and financial difficulties." "I am thrilled at the opportunity to work with top professionals in PwC CAR to help lead and grow our U.S. practice," Mr. Sperry expressed. "I am excited about the capabilities PwC CAR has to preserve and create value for our clients by drawing on our already deep restructuring expertise as well as the full range of services that only a major global organization can provide," he added. A former managing director at UBS Warburg, where he founded and headed its Restructuring Group, Mr. Sperry most recently started and ran a restructuring advisory practice for middle market mergers and acquisitions firm Goldsmith Agio Helms. Mr. Sperry has an extensive background in helping underperforming and insolvent multinational and middle market companies to restructure billions of dollars in liabilities in the U.S. and various countries around the world. Mr. Sperry has worked as an advisor and investment banker for both public and private companies in many of the largest out-of- court and Chapter 11 cases. These include acting as financial advisor to multinational Ferruzzi/Montedison Group of Italy on a multi-tiered US$12 billion debt restructuring; advising Integrated Health Services on its US$3.4 billion Chapter 11 debt restructuring and break-up; and representing the creditors of Confederation Life of Canada in the largest ever North American insurance company failure. PwC CAR provides integrated financial, transactional and operational services to underperforming and distressed companies. Drawing upon the global network of PricewaterhouseCoopers member firms, PwC CAR provides a wide array of services designed to help troubled companies emerge healthier and drive a sustained recovery. The PwC CAR team includes experienced advisors drawn from its restructuring and corporate finance practices throughout the global network of PricewaterhouseCoopers. PwC CAR consolidates the position of PricewaterhouseCoopers as the dominant global restructuring practice with approximately 2,000 dedicated professionals from member firms located in over 60 countries. In combination with the industry resources of PwC, the PwC CAR team possesses restructuring experience across numerous industries and senior members of the U.S.-based PwC CAR team have played significant roles in many high profile domestic and cross-border restructurings. Examples include America West Airlines, Beaulieu of America, P.A. Bergner/Carson Pirie Scott, ConFederation Life Insurance, Drax Power, El Paso Electric, Ferruzzi/Montedison Group, Globopar, Global Telesystems, Huffy Corp., Integrated Health Services, Iridium Satellite, Marconi, Sylvania, Tower Automotive, TrizecHahn Corporation, and Von Roll Corporation. PricewaterhouseCoopers -- http://www.pwc.com/-- provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries work collaboratively across our network using Connected Thinking to develop fresh perspectives and practical advice. PricewaterhouseCoopers Corporate Advisory & Restructuring LLC (PwC CAR) is owned by PricewaterhouseCoopers LLP, a member firm of the PricewaterhouseCoopers network and is a member of the NASD and SIPC. PwC CAR is not engaged in the practice of public accountancy. "PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- September 13-15, 2006 TURNAROUND MANAGEMENT ASSOCIATION Texas Regional Conference Hyatt Regency Resort & Spa Lost Pines, TX Contact: 870-760-7116 or http://www.turnaround.org/ September 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Kick-Off Reception Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ September 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION BOK Review - Management Gardner Carton & Douglas, Chicago, IL Contact: 815-469-2935 or http://www.turnaround.org/ September 17-24, 2006 NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES Optional Alaska Cruise Seattle, Washington Contact: 800-929-3598 or http://www.nabt.com/ September 19-20, 2006 STRATEGIC RESEARCH INSTITUTE 2nd Annual Euro Distressed Debt Summit Le Meridien Parkhotel, Frankfurt, Germany Contact: http://www.srinstitute.com/ September 20, 2006 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner Bankers Club, Miami, Florida Contact: 561-882-1331 or http://www.turnaround.org/ September 21, 2006 TURNAROUND MANAGEMENT ASSOCIATION Restructuring Workshop With US Bankruptcy Judges Hale, Nelms and Lynn Belo Mansion - The Pavilion, Dallas, TX Contact: http://www.turnaround.org/ September 24, 2006 TURNAROUND MANAGEMENT ASSOCIATION Restructuring the Troubled High Tech Company Arizona Contact: http://www.turnaround.org/ September 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, Florida Contact: 561-882-1331 or http://www.turnaround.org/ September 27, 2006 TURNAROUND MANAGEMENT ASSOCIATION Joint Education Program with NYIC Joint Reception CFA/RMA/IWIRC Woodbridge Hilton, Iselin, NJ Contact: http://www.turnaround.org/ September 27, 2006 TURNAROUND MANAGEMENT ASSOCIATION 7th Annual Cross Border Business Restructuring and Turnaround Conference Banff, Alberta Contact: http://www.turnaround.org/ October 5, 2006 TURNAROUND MANAGEMENT ASSOCIATION Commercial Lenders Breakfast Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ October 10, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting Center Club, Baltimore, Maryland Contact: 703-912-3309 or http://www.turnaround.org/ October 11, 2006 TURNAROUND MANAGEMENT ASSOCIATION Professional Development Meeting Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ October 11-14, 2006 TURNAROUND MANAGEMENT ASSOCIATION 2006 Annual Conference Milleridge Cottage, Long Island, New York Contact: 312-578-6900; http://www.turnaround.org/ October 12, 2006 TURNAROUND MANAGEMENT ASSOCIATION UTS Fundamentals of Turnaround Management Mecure Hotel - Haymarket, Sydney, Australia Contact: http://www.turnaround.org/ October 17, 2006 TURNAROUND MANAGEMENT ASSOCIATION Updates on the New Bankruptcy Law Kansas City, Missouri Contact: http://www.turnaround.org/ October 19, 2006 TURNAROUND MANAGEMENT ASSOCIATION Billards Networking Night - Young Professionals TBA, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ October 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Hedge Funds - Expanded Financing Opportunities in Business Turnarounds Arizona Contact: http://www.turnaround.org/ October 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Speaker Series #3 TBA, Calgary, Alberta Contact: 403-294-4954 or http://www.turnaround.org/ October 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Speaker Series #3 TBA, Calgary, Alberta Contact: 403-294-4954 or http://www.turnaround.org/ October 27, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast with Coach Dan Reeves Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ October 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION BK/TMA Golf Tournament Orange Tree Golf Resort, AZ Contact: 623-581-3597 or http://www.turnaround.org/ October 30-31, 2006 Distressed Debt Summit: Preparing for the Next Default Cycle Financial Research Associates LLC Helmsley Hotel, New York, NY Contact: http://www.frallc.com/ October 31, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Citrus Club, Orlando, Florida Contact: 561-882-1331 or http://www.turnaround.org/ October 31 - November 1, 2006 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC Annual Conference San Francisco, California Contact: http://www.iwirc.com/ November 1, 2006 TURNAROUND MANAGEMENT ASSOCIATION Halloween Isn't Over! - Ghosts of turnarounds past who remind you about what you should have done differently Portland, Oregon Contact: http://www.turnaround.org/ November 1-4, 2006 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges San Francisco, California Contact: http://www.ncbj.org/ November 2-3, 2006 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Third Annual Conference on Physician Agreements & Ventures Successful Strategies for Medical Transactions and Investments The Millennium Knickerbocker Hotel - Chicago Contact: 903-595-3800; 1-800-726-2524; http://www.renaissanceamerican.com/ November 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Marriott, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting Marriott Tyson's Corner, Vienna, Virginia Contact: 703-912-3309 or http://www.turnaround.org/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia National Conference Sydney, Australia Contact: http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Program St. Louis, Missouri Contact: 815-469-2935 or http://www.turnaround.org/ November 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION Joint Reception with NYIC/NYTMA TBA, New York Contact: 908-575-7333 or http://www.turnaround.org/ November 15, 2006 LI TMA Formal Event TMA Australia National Conference Long Island, New York Contact: http://www.turnaround.org/ November 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner Citrus Club, Orlando, Florida Contact: 561-882-1331 or http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Bankruptcy Judges Panel Duquesne Club, Pittsburgh, Pennsylvania Contact: http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Dinner Program TBA, Seattle, Washington Contact: 503-223-6222 or http://www.turnaround.org/ November 23, 2006 TURNAROUND MANAGEMENT ASSOCIATION Martini Party Vancouver, British Columbia Contact: 403-294-4954 or http://www.turnaround.org/ November 27-28, 2006 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Thirteenth Annual Conference on Distressed Investing Maximizing Profits in the Distressed Debt Market The Essex House Hotel - New York Contact: 903-595-3800; 1-800-726-2524; http://www.renaissanceamerican.com/ November 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, FL Contact: 561-882-1331 or http://www.turnaround.org/ November 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Special Program TBA, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ November 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Industry Trends Jasna Polana, Princeton, NJ Contact: http://www.turnaround.org/ November 30-December 2, 2006 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Hyatt Regency at Gainey Ranch, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ December 6, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Dinner Portland, Oregon Contact: 503-223-6222 or http://www.turnaround.org/ December 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast The Newark Club, Newark, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION LI TMA Holiday Party TBA, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function GE Commercial Finance, Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ December 20, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA, AVF & CFA Georgia Aquarium, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ January 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Lender's Panel Breakfast Westin Buckhead, Atlanta, GA Contact: http://www.turnaround.org/ February 8-11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Certified Turnaround Professional (CTP) Training NY/NJ Contact: http://www.turnaround.org/ February 2007 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium San Juan, Puerto Rico Contact: 1-703-739-0800; http://www.abiworld.org/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Martini Madness Cocktail Reception with Geraldine Ferraro Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ March 15-18, 2007 NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES NABT Spring Seminar Ritz-Carlton Buckhead, Atlanta, GA Contact: http://www.NABT.com/ March 27-31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spring Conference Four Seasons Las Colinas, Dallas, Texas Contact: http://www.turnaround.org/ March 29-31, 2007 ALI-ABA Chapter 11 Business Reorganizations Scottsdale, Arizona Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/ April 11-15, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Annual Spring Meeting J.W. Marriott, Washington, DC Contact: 1-703-739-0800; http://www.abiworld.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, Illinois Contact: http://www.airacira.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, RI Contact: 1-703-739-0800; http://www.abiworld.org/ October 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Orlando, Florida Contact: http://www.ncbj.org/ October 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ December 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ September 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ October 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ October 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, Nevada Contact: http://www.ncbj.org/ October 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, Louisiana Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers - the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Emerging Role of Corporate Compliance Panels Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ ********* 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. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *