/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061011.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, October 11, 2006, Vol. 7, No. 202 Headlines A U S T R I A A & O: Creditors' Meeting Slated for October 20 BAWAG PSK: Heavy Withdrawals Prompt 2006 Net Loss, Report Says DIE COMPUTERMACHER: Eisenstadt Court Declines Appeal FUERST ALFRED: Creditors' Meeting Slated for October 17 GRIMM MIRJAM: Creditors' Meeting Slated for November 7 GRS: Creditors' Meeting Slated for October 24 PIZZERIA RISTORANTE: Feldkirch Court Orders Company Shutdown B E L G I U M ARMSTRONG WORLD: Paying US$407 Million to Class 6 Creditors CHEMTURA CORP: Moody's Assigns Loss-Given-Default Rating B U L G A R I A TPP MARITSA: S&P Withdraws BB Long-Term Corporate Credit Rating C R O A T I A DIRECTED ELECTRONICS: Weak Finances Spur S&P to Cut Ratings C Y P R U S MASTERCROFT LIMITED: Fitch Lifts Issuer Default Rating to BB C Z E C H R E P U B L I C ZIVNOSTENSKA BANKA: Moody's Reviews D Financial Strength Rating F I N L A N D BENEFON OYJ: Launches New Handset & Unveils New Financing Plan F R A N C E BEARINGPOINT INC: Moody's Cuts Ratings on US$450-Mln Bonds to B3 BEARINGPOINT INC: S&P Holds Corp. Credit & Debt Ratings on Watch SPANSION LLC: Market Competition Spurs S&P to Affirm B Rating G E R M A N Y AUTO MANN: Claims Registration Ends October 16 BAUER, KOHNEN: Claims Registration Ends October 23 CONTENDIX MANAGEMENT: Claims Registration Ends October 20 EICHELE U. UTZ: Claims Registration Ends October 18 GATE 2006-1: Fitch Gives BB+ Rating on EUR15.3-Mln Class E Notes GERRESHEIMER ALPHA: S&P Places B+ Ratings on Watch Negative HAUS-RAT: Claims Registration Ends October 20 J.K. GRUNDSTUECKSVERWALTUNGS: Claims Registration Ends Oct. 20 MOEVE SPEDITIONS: Claims Registration Ends October 17 PANKE-PARK: Creditors' Meeting Slated for October 26 POLY-PLAST: Claims Registration Ends October 20 POTSDAMER STRASSE: Creditors' Meeting Slated for October 26 VOLKSWAGEN AG: CEO B. Pischetsrieder Wants New Deal for Scania G R E E C E OLYMPIC AIRLINES: Greece Must Recover State Aid, EC Insists I R E L A N D ELAN CORP: To Release Third Quarter 2006 Results on Oct. 25 I T A L Y ALITALIA SPA: Demise Looming with Current Structure & Conditions BOMBARDIER INC: Gets US$1.3-Bln Aircraft Order from NWA PARMALAT SPA: Regains Ownership of Newlat & Carnini Units SUAL GROUP: Merges with RusAl & Glencore International K A Z A K H S T A N ENERGETIC: Creditors Must File Claims by Nov. 3 FINAUDIT-ASTANA: Creditors Must File Claims by Nov. 3 JETYSAY MASLOZAVOD: Proof of Claim Deadline Slated for Nov. 3 KAZROSS: Proof of Claim Deadline Slated for Nov. 3 MURAGER: Almaty Court Opens Bankruptcy Proceedings PERS KOMP: Almaty Court Begins Bankruptcy Proceedings POKOLENIYE: South Kazakhstan Court Starts Bankruptcy Procedure SHER-ENGINEERING: Claims Registration Ends Nov. 3 UNITECHS: Claims Registration Ends Nov. 3 K Y R G Y Z S T A N INTERBOOKTRADE: Creditors' Claims Due Nov. 19 L A T V I A DIRECTED ELECTRONICS: Weak Finances Spur S&P to Cut Ratings L U X E M B O U R G EVRAZ GROUP: CFO Says Fitch Upgrade Affirms Strong Commitment EVRAZ GROUP: Fitch Upgrades Issuer Default Rating to BB N E T H E R L A N D S SIRVA INC: S&P Withdraws and Removes Ratings from Watch Negative VNU GROUP: Buying NetRatings' Minority Stake for US$16/Share R O M A N I A COMPANIA NATIONALA: Moody's Lifts Corp. Family Rating to Ba1 R U S S I A ATELIER ZEBRA: Court Names S. Suvorov as Insolvency Manager BOMBARDIER INC: Gets US$1.3-Bln Aircraft Order from NWA BUILDER: Bankruptcy Hearing Slated for Oct. 11 CONNECT: Moscow Court Names S. Suvorov as Insolvency Manager EVRAZ GROUP: CFO Says Fitch Upgrade Affirms Strong Commitment EVRAZ GROUP: Fitch Upgrades Issuer Default Rating to BB GAZPROM OAO: Props Up Investment in Bovanenkovo Gas Field INTER-PRODUCT: Court Names S. Suvorov as Insolvency Manager INVESTMENTS AND INNOVATION: E. Eliseeva to Manage Assets KAMERTON BANK: Court Names S. Suvorov as Insolvency Manager LUKOIL OAO: Upgrades Gas Conversion Capacities in Siberia NATIONAL CREDIT: Court Names S. Suvorov as Insolvency Manager NOVODEREVENKOVSK-AGRO-SNAB: Court Hearing Slated for Nov. 29 REFORMA-INVEST: Court Names S. Suvorov as Insolvency Manager RENAISSANCE CAPITAL: Fitch Assigns Issuer Default Rating at BB- RUBY: Moscow Court Names N. Tkachenko to Manage Assets SHILOVO-MEAT: Court Starts Bankruptcy Supervision Procedure SUAL GROUP: Merges with RusAl & Glencore International SUNRISE-INVEST: Court Names E. Eliseeva as Insolvency Manager TRANSPORT ENTERPRISE: Tomsk Court Starts Bankruptcy Supervision WHEAT VERKHOVSKAYA: Orel Bankruptcy Hearing Slated for Nov. 29 S P A I N CHEMTURA CORP: Moody's Assigns Loss-Given-Default Rating GC FTGENCAT: Fitch Junks EUR4.5 Million Class D Notes TDA IBERCAJA: Moody's Rates EUR7-Mln Series E Notes at (P)Ba1 S W E D E N ARMSTRONG WORLD: Paying US$407 Million to Class 6 Creditors S W I T Z E R L A N D SIRVA INC: S&P Withdraws and Removes Ratings from Watch Negative SUAL GROUP: Merges with RusAl & Glencore International T U R K E Y ANADOLUBANK A.S.: Obtains US$160 Million Syndicated Loan U K R A I N E AGROHIM: Hmelnitskij Court Names Viktor Matushak as Liquidator AVANGARD: Court Names Vasil Glebov as Insolvency Manager CENTRAL: Creditors Must File Claims by October 14 INTERHIM: Creditors Must File Claims by October 14 RENAISSANCE CAPITAL: Fitch Assigns Issuer Default Rating at BB- SILGOSPTEHNIKA: Court Commences Bankruptcy Supervision TRADE-SECURITIES: Court Names Maxim Vdovin as Insolvency Manager ZHOVTEN: Court Names Nataliya Levchenko as Insolvency Manager U N I T E D K I N G D O M ABITIBI-CONSOLIDATED: Poor Market Conditions Spur Mill Closures ACCESS DEVICES: Brings In Smith & Williamson as Administrators ADASOLVE LIMITED: Paul Appleton Leads Liquidation Procedure ANDREW KELLARD: Taps Smith & Williamson to Administer Assets ASL SYSTEMS: Creditors' Meeting Slated for October 13 B & B INTERIOR: Appoints C. B. Barrett as Liquidator B & M INSURANCE: Creditors Confirm Liquidator's Appointment BEARINGPOINT INC: Moody's Cuts Ratings on US$450-Mln Bonds to B3 BEARINGPOINT INC: S&P Holds Corp. Credit & Debt Ratings on Watch CAFE BLU: Creditors' Meeting Slated for October 18 COLT TELECOM: Receives Requisite Consents from Noteholders CORUS GROUP: Tata Steel to Launch a GBP5-Bln Takeover Bid DISABILITY ACCESS: Names Liquidators from Poppleton & Appleby FIBRES WORLDWIDE: Appoints Deloitte & Touche as Administrators GEMFLEX ENGINEERING: Brings In Begbies Traynor as Administrators GENERAL MOTORS: S&P Keeps Low-B Ratings on Watch Negative GENIUS CREATIVE: Taps Liquidators from Begbies Traynor GROUTAGE & INGRAM: Claims Filing Period Ends Nov. 3 HUIA LIMITED: Taps Kroll to Administer Assets IMMERSIVE MEDIA: Hires Liquidator from David Horner & Co. INDUSTRIAL PYROMETER: Creditors' Meeting Slated for Oct. 18 INFOCELL TELECOM: Hires Administrators from Chantrey Vellacott JSB SECURITIES: Claims Filing Period Ends Oct. 22 KEYHOLDERS LIMITED: Creditors' Meeting Slated for October 17 KOOKABURRA HOLDINGS: Brings In Kroll to Administer Assets LOBLITE LIMITED: Appoints PKF as Joint Administrators MEGA BUILDING: Calls In Liquidators from Rothman Pantall MMV PROJECTS: Appoints Peter O'Hara to Liquidate Assets PALACE PANELS: Creditors' Meeting Slated for October 12 RANK GROUP: Cancels One Million Shares in Buy Back Program SURREY COLLEGE: Brings In Liquidators from Blades Insolvency TANYA KNITWEAR: Taps BWC to Administer Assets UVINE.COM LIMITED: Brings In Administrators from Elwell Watchorn WEM ELECTRICAL: Taps T. Papanicola to Liquidate Assets WHITEOAK PACKAGING: Brings In Menzies to Administer Assets WHORTON REEVES: Hires Eileen T. F. Sale to Liquidate Assets * Moody's Reports Low High-Yield Default Rate in Third Quarter ********* ============= A U S T R I A ============= A & O: Creditors' Meeting Slated for October 20 ----------------------------------------------- Creditors owed money by Trade LLC A & O (FN 259943w) are encouraged to attend the creditors' meeting at 9:30 a.m. on Oct. 20 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 19 (Bankr. Case No. 5 S 64/06f). Guenther Hoedl serves as the court-appointed property manager of the bankrupt estate. Andrea Simma represents Dr. Hoedl in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Guenther Hoedl c/o Dr. Andrea Simma Schulerstrasse 18 1010 Vienna, Austria Tel: 513 16 55 Fax: 513 16 55 33 E-mail: Hoedl@anwaltsteam.at BAWAG PSK: Heavy Withdrawals Prompt 2006 Net Loss, Report Says -------------------------------------------------------------- Bawag P.S.K. Group will post a net loss for 2006 due to heavy withdrawals by bank depositors, AFX News reports citing Profil magazine as its source. Profil quoted a study by Morgan Stanley saying that Bawag will close 2006 with EUR20.3 million in full-year net losses, based on international standards. This conflicts an earlier statement by Bawag saying it would post a net profit this year, albeit on Austrian accounting rules. The bank, AFX News noted, can avoid a cash crunch if its parent, Osterreichischer Gewerkschaftsbund (OeGB), manages to sell the bank this year. Bankers and analysts expect the sale to raise between EUR2 billion to EUR2.5 billion for OeGB. OeGB has allowed possible buyers to begin due diligence of the bank's accounts to buyers who passed the second round of bidding. The list include: -- Kohlberg Kravis Roberts (KKR), -- Lone Star, -- Cerberus Capital Management, -- JC Flowers & Co., -- BayernLB, and -- Dresdner Bank. Morgan Stanley, which facilitates the sale, began inviting bids after Bawag inked a US$675 million settlement deal with Refco Inc. investors. Around 40 parties submitted their bids for the Austrian bank. As previously reported in the TCR-Europe, OeGB 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 Inc. The bank is currently the focus of an in-depth probe by Austrian prosecutors over a US$2-billion loss scandal. 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. DIE COMPUTERMACHER: Eisenstadt Court Declines Appeal ---------------------------------------------------- The Land Court of Eisenstadt declined Sept. 1 an appeal made by a creditor against the commencement of bankruptcy proceedings against of International Media Holding Inc. Die Computermacher (FN 257101s). Headquartered in Riedlingsdorf, Austria, the Debtor declared bankruptcy on July 17 (Bankr. Case No. 26 S 73/06x). Thomas Deschka serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Thomas Deschka Main Place 11 Atrium Top 16 A 7400 Oberwart, Austria Tel: 03352/31543 Fax: 03352/31543-20 E-mail: deschka@lawcenter.at FUERST ALFRED: Creditors' Meeting Slated for October 17 ------------------------------------------------------- Creditors owed money by LLC Fuerst Alfred (FN 111850k) are encouraged to attend the creditors' meeting at 9:00 a.m. on Oct. 17, to consider the inventory of the debtor's property and compulsory payment of compensation. Creditors will recover 20% of their claims payable within two years on adoption of the compensation project. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 1 (Bankr. Case No. 4 S 94/06k). Ute Toifl serves as the court-appointed property manager of the bankrupt estate. Astrid Haider represents Dr. Toifl in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Ute Toifl c/o Mag. Astrid Haider Tuchlauben 12/20 1010 Vienna, Austria Tel: 535 46 11-0 Fax: 535 46 11-11 E-mail: office@thr.at GRIMM MIRJAM: Creditors' Meeting Slated for November 7 ------------------------------------------------------ Creditors owed money by LLC Grimm Mirjam (FN 86720f) are encouraged to attend the creditors' meeting at 10:30 a.m. on Nov. 7, to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 22 (Bankr. Case No. 4 S 107/06x). Kurt Bernegger serves as the court-appointed property manager of the bankrupt estate. Maria Kainer represents Dr. Bernergger in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Kurt Bernegger c/o Mag. Maria Kainer Jacquingasse 21 1030 Vienna, Austria Tel: 799 15 80/0 Fax: 796 59 14 E-mail: kanzlei@bernegger-wt.com GRS: Creditors' Meeting Slated for October 24 --------------------------------------------- Creditors owed money by LLC GRS (FN 261634g) are encouraged to attend the creditors' meeting at 11:30 a.m. on Oct. 24 to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 22 (Bankr. Case No. 4 S 86/06h). Michael Neuhauser serves as the court-appointed property manager of the bankrupt estate. Stefan Jahns represents Mag. Neuhauser in the bankruptcy proceedings. The property manager and his representative can be reached at: Mag. Michael Neuhauser c/o Mag. Stefan Jahns Esslinggasse 9 1010 Vienna, Austria Tel: 536 50-0 Fax: 536 50-14 E-mail: officewien@aaa-law.at PIZZERIA RISTORANTE: Feldkirch Court Orders Company Shutdown ------------------------------------------------------------ The Land Court of Feldkirch entered an order Sept. 1 shutting down the business of LLC Pizzeria Ristorante O Sole Mio (FN 255183w). Court-appointed property manager Bernd Widerin determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Mag. Bernd Widerin Rathausgasse 6 6700 Bludenz, Austria Tel: 05552/650930 Fax: 05552/650936 E-mail: rechtsanwaelte@widerin.at Headquartered in Bludenz, Austria, the Debtor declared bankruptcy on Aug. 22 (Bankr. Case No. 14 S 37/06p). ============= B E L G I U M ============= ARMSTRONG WORLD: Paying US$407 Million to Class 6 Creditors ----------------------------------------------------------- Armstrong World Industries Inc. disclosed the amount of the initial distributions it expects to make to general unsecured creditors under its Chapter 11 plan. Specifically, distributions to holders of allowed unsecured claims falling in Class 6 will commence on Oct. 17, 2006, pursuant to its Court-approved "Fourth Amended Plan of Reorganization, as Modified," dated Feb. 21, 2006. Per US$10,000 of such claims, an initial distribution of 116 Common Shares of reorganized Armstrong World Industries and approximately US$2,435 in cash are expected. The initial distributions exclude approximately US$11 million of cash and 538,000 shares that are reserved from distribution due to disputed unsecured claims in Class 6. A total of 19,418,520 shares and US$407 million of cash will be distributed to creditors in Class 6 under the Plan. Separately, in discharge of all of its present and future asbestos-related personal injury claims, the Company issued under the Plan 36,981,480 Common Shares to the Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust and by Oct. 17, 2006, will distribute to the Trust US$738 million in cash, representing the portion of cash distributions to which the Trust is entitled under the Plan. All present and future asbestos-related personal injury claims must be asserted against, and will be resolved by, the Trust, and such claims may not be asserted against the Company. Under the Plan, payments to unsecured creditors having allowed claims of US$10,000 or less (or who have reduced their claims to US$10,000) began on Oct. 2, 2006. Those creditors receive distributions entirely in cash in an amount equal to approximately 75% of their allowed claims. The cash amount to be distributed to Class 6 creditors and the Trust includes "Available Cash" as defined in the Plan and US$775 million of the cash proceeds expected from US$800 million of term loans that the Company is arranging in lieu of issuing notes under the Plan. These term loans are in addition to a US$300 million revolving credit facility already established, which is currently undrawn and will be available to support the Company's ongoing liquidity needs. The Company also reported that its Common Shares have been approved for listing on the New York Stock Exchange under the ticker symbol "AWI" on Oct. 10, 2006. "We are pleased to return to the New York Stock Exchange, where Armstrong first began trading on July 17, 1935," said F. Nicholas Grasberger III, Armstrong's Senior Vice President and CFO. "This is the renewal of a long and rewarding relationship between Armstrong and the NYSE." "We are pleased to welcome back Armstrong World Industries to our family of NYSE-listed companies, resuming our 70-plus-year partnership with the company," said NYSE Group, Inc. Chief Executive Officer John A. Thain. "We look forward to serving Armstrong World Industries and its shareholders, and providing the company with superior market quality and brand visibility." A full-text copy of the Fourth Amended Plan of Reorganization is available for free at http://ResearchArchives.com/t/s?fb4 Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc. -- http://www.armstrong.com/-- the major operating subsidiary of Armstrong Holdings, Inc., designs, manufactures and sells interior floor coverings and ceiling systems, around the world including Belgium and Sweden. The Company and its debtor-affiliates filed for chapter 11 protection on December 6, 2000 (Bankr. Del. Case No. 00-04469). Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell C. Silberglied, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. The Debtors tapped the Feinberg Group for analysis, evaluation, and treatment of personal injury asbestos claims. Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Houlihan Lokey for financial and investment advice. The Official Committee of Asbestos Personal Injury Claimant hired Ashby & Geddes as counsel. When the Debtors filed for protection from their creditors, they listed US$4,032,200,000 in total assets and US$3,296,900,000 in liabilities. The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003. The District Court Judge Robreno confirmed AWI's Modified Plan on Aug. 14, 2006. The Clerk entered the formal written confirmation order on Aug. 18, 2006. AWI emerged from Chapter 11 protection on Oct. 2, 2006. * * * As reported in the Troubled Company Reporter on Oct. 9, 2006, Standard & Poor's Ratings Services raised its corporate credit rating on Armstrong World Industries Inc. to 'BB' from 'D', following the building products company's emergence from bankruptcy on Oct. 2, 2006. The outlook is stable. The 'BB' senior secured bank loan rating and the '2' recovery rating on Armstrong's proposed US$1.1 billion senior secured bank facility are affirmed. The bank loan rating was assigned on Sept. 28, 2006, based on the assumption that Armstrong would exit bankruptcy as well as satisfy other conditions. CHEMTURA CORP: Moody's Assigns Loss-Given-Default Rating -------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Chemicals and Allied Products sector, the rating agency confirmed its Ba1 Corporate Family Rating for Chemtura Corp. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500mm 6.875% Gtd. Sr. Notes due June 2016 Ba1 Ba1 LGD4 53% US$150mm 6.875% Sr. Sec. Debentures due Feb 2026 Ba1 Ba1 LGD4 53% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%) About Chemtura Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE: CEM) -- http://www.chemtura.com/-- is a global manufacturer and marketer of specialty chemicals, crop protection and pool, spa and home care products. The Company has approximately 6,400 employees around the world and sells its products in more than 100 countries. In Europe, the company maintains operations in Belgium, France, Germany, Italy, the Netherlands, Spain, Switzerland and the United Kingdom. =============== B U L G A R I A =============== TPP MARITSA: S&P Withdraws BB Long-Term Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB' long-term corporate credit rating on Bulgarian power utility TPP Maritsa East 2 EAD at the company's request. At the time of withdrawal, the outlook was stable. TPP has no public debt outstanding. ============= C R O A T I A ============= DIRECTED ELECTRONICS: Weak Finances Spur S&P to Cut Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on consumer electronics maker Directed Electronics Inc. following its acquisition of Polk Audio Inc., a provider of loudspeakers and audio equipment for homes and cars, for US$136 million in cash. The corporate credit rating was lowered to 'B+' from 'BB-', and was removed from CreditWatch negative where it was placed on Aug. 25. The ratings outlook on Vista, Calif.-based DEI is stable. Pro forma balance sheet debt at June 30, 2006, including the acquisition debt, totaled about US$307 million. "The downgrade reflects DEI's weaker financial position after the Polk acquisition," said Standard & Poor's credit analyst Nancy C. Messer. To fund the acquisition, the company increased the size of its term loan by US$141 million under an amended and restated senior secured credit facility. This amount was an addition to the company's existing US$165.8 million term loan. At the same time that debt is increased, DEI will be required to invest in higher levels of working capital in the next several years to support its product build for the satellite radio accessories market. As a result of the higher cash interest expense and required investment in working capital, the company will generate minimal free cash flow for debt reduction in 2006 and 2007. Beginning in 2008, the company expects to generate sufficient free cash flow to allow for debt reduction. Following the acquisition, DEI is highly leveraged, with lease-adjusted total debt to EBITDA of about 4.4x. Standard & Poor's expects DEI's lease-adjusted leverage to remain at 4x or higher over the intermediate term, as the company expands and diversifies sales through new product introductions and possible periodic acquisitions. The Polk acquisition, which will increase DEI's revenues by a material 25%, adds integration risk to the credit, although mitigating this concern is DEI's successful track record of integrating prior acquisitions. At the 'B+' rating, the rating agency expects funds from operations to total debt in the range of 10%- 15% and lease-adjusted total debt to EBITDA in the range of 4x-4.5x. The Polk acquisition is consistent with DEI's strategy of growing both organically and through acquisitions in home electronics, mobile electronics, and adjacent product categories to leverage DEI's existing distribution network, customer relationships, and sales force, since the markets are highly fragmented. =========== C Y P R U S =========== MASTERCROFT LIMITED: Fitch Lifts Issuer Default Rating to BB ------------------------------------------------------------ Fitch Ratings upgraded Luxembourg-registered Evraz Group S.A.'s Issuer Default and senior unsecured ratings to BB from BB-. The agency also upgraded Cyprus-registered subsidiary Mastercroft Limited's Issuer Default rating and Evraz Securities S.A.'s senior unsecured notes to BB from BB-. Mastercroft's and Evraz's Short-term B ratings are affirmed. The Outlooks for both IDRs remain Stable. Evraz Securities is a 100%-owned subsidiary of Mastercroft. The upgrade reflects the agency's increased confidence that Evraz's strong business profile as a low-cost, vertically integrated steelmaker with a high degree of self-sufficiency in raw materials will enable it to maintain a conservative financial profile throughout the steel price cycle. It also reflects the progress made in improving the quality of corporate governance and transparency following the group's initial public offering in June 2005. The agency also notes Evraz's successful track record of integrating acquired assets. Evraz is the largest steel producer by output in Russia and among the largest in the world. It holds a leading domestic market position in long steel products with an almost monopolistic position in railway transport steel products. Evraz's main customers in Russia are JSC Russian Railways as well as the construction and pipe-producing industries. In 2005 a majority of export sales were made to Asian markets; however, the European share of revenues is expected to grow following the recent acquisition of Palini e Bertoli in Italy and Vitkovice Steel in the Czech Republic. In 2006 Evraz also acquired several vanadium assets in the U.S. and South Africa, thus becoming one of leading vanadium producer worldwide. Fitch notes that in FY05 Evraz generated revenues of US$6.5 billion, a 9% increase on the previous year. Evraz's FY05 EBIDTA margin of 28%, while lower than the FY04 margin of 34%, still remained higher than those of its Russian and global peers. The agency views positively Evraz's selective acquisition strategy, which provides a degree of geographical diversification while maintaining leverage at a moderate net debt/EBITDA of 1x as at FY05. Evraz's financial discipline is evidenced by the company's sound credit metrics and strong operating cash flow generation. Fitch notes the commitment of Evraz's management to adhere to net debt/EBITDA of less than 1.5x and to consider equity financing for any sizable acquisition. Evraz's liquidity is good, underpinned by retained cash balances of US$641 million at FY05. At FY05, gross debt increased to US$2.4 billion from US$1.4 billion at FY04. Half of the additional gross debt was due to a new note issue by Evraz of US$750 million with an 8.25% coupon due in 2015. Fitch notes that on Sept. 25 Evraz repaid its debut eurobond of US$175 million. =========================== C Z E C H R E P U B L I C =========================== ZIVNOSTENSKA BANKA: Moody's Reviews D Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service placed on review for possible upgrade the D financial strength rating of Zivnostenska banka. The bank's A2/P-1 foreign currency deposit ratings were affirmed with a stable outlook. In placing the FSR ratings on review for possible upgrade, Moody's said it took note of the progress of business and operational integration between Zivnostenka Banka and HVB Bank Czech Republic. Moody's also noted that the review for upgrade reflects its expectations that the legal merger between the two banks will take place over the next eight to nine months and that the merger will be completed by mid-2007. The A2/P-1 deposit ratings of Zivnostenska banka were affirmed with a stable outlook notwithstanding the planned transfer of ZB's ownership from Unicredito Italiano SpA to Bank Austria Creditanstalt, a wholly-owned subsidiary of Unicredit, since in Moody's view the level of support from Unicredit Group to the merged banks will remain the same. Zivnostenska Banka and HVB Bank Czech Republic announced a planned merger in March 2006 following the acquisition of HVB by Unicredito Italiano. Since the announcement, the banks have demonstrated a meaningful progress in operational integration, including the designation of the merged bank's future Board members and co-ordination of their business strategies. The merger will create the fourth largest bank in the Czech Republic with a strong franchise among corporate customers, SMEs and high net worth individuals. The merged bank would have total assets of EUR7.4 billion, around 60 branches and more than 180,000 customers. Moody's noted that the review is likely to be longer than the normal three month period given that the likely timing of the completion of the legal merger between Zivnostenka Banka and HVB Bank Czech Republic is mid-2007. Headquartered in Prague, Czech Republic, Zivnostenska banka reported total assets of CZK48.9 billion (EUR1.7 billion) as of Dec. 31, 2005 under IFRS. Headquartered in Prague, Czech Republic, HVB bank reported total assets of CZK165.4 billion (EUR6.6 billion) as of Dec. 31, 2005 under IFRS. ============= F I N L A N D ============= BENEFON OYJ: Launches New Handset & Unveils New Financing Plan -------------------------------------------------------------- Benefon will launch its new TWIG Discovery GSM/GPS handset in October 2006. Launch dates for China and Russia will remain on track for December 2006. The revision of the launch date is caused by a delay in the mass production. The manufacturing in the China production unit has been delayed for approximately three weeks, but now the problems have been solved and the plant is in full use. Because of the delay Benefon will be revising its forecast guidance published in August. "Despite the recent challenges in launching our latest handset, Benefon still has the opportunity for a strong product launch in Western Europe," Jonathan Bate, Benefon CEO, said. "The continued interest in our products provides us with continued confidence. We will have a great portfolio of products over the coming 12 to 18 months and a strong line of innovative GSM/GPS devices to offer our customers." Business Continuity from Financing Plan Benefon discloses of a new financing plan that will guarantee the sufficiency of company's working capital. The company has agreed on a financing package comprising subscriptions in shares, convertible bond loan issues, options and debt instruments with Octagon Solutions Ltd. and Ashland Partners LP., totaling at maximum of EUR7.35 million. The funding is secured and committed by Octagon Solutions Ltd. and the total number of investors providing the funds may not exceed ten. The agreed funding is divided into five tranches each of which the Board of Directors is entitled to call separately. Investors' financing commitment is valid for six months until March 28, 2007. Provided that the maximum amount of the funding is raised, the investors may subscribe to up to 16,761,905 new investment series shares at EUR0.21. In addition, an equity convertible bond loan of the amount of EUR880,000 is offered to investors that can be used to subscribe for a maximum of 17,600,000 new investment series shares. Some EUR2,950,000 of the 7.35 million may also be issued as interest free debt securities at the company's option. As a part of the agreement the investors will also be entitled to subscribe for a maximum of 4,425,000 option rights with EUR0.10 strike price in proportion to their financing commitments. The financing plan is aimed at securing that Benefon will maintain its capability to continue introducing new products despite the additional costs resulting from the recent delays with TWIG Discovery. About Benefon Headquartered in Salo, Finland, Benefon Oyj -- http://www.benefon.com/-- provides mobile telematics solutions saving lives, securing assets and improving field management. At Dec. 31, 2005, Benefon Oyj's had EUR4.97 in total assets and EUR7.30 million in total liabilities, resulting in a EUR2.33 million stockholders' deficit. =========== F R A N C E =========== BEARINGPOINT INC: Moody's Cuts Ratings on US$450-Mln Bonds to B3 ---------------------------------------------------------------- Moody's Investors Service downgraded the ratings of BearingPoint Inc. and has placed the company's ratings on review for further possible downgrade. The rating actions reflect the company's YTD September 2006 cash outflows, which have largely been driven by higher than expected finance and accounting systems costs, delays in filing its annual financial reports with the SEC, and increased Q2 2006 voluntary employee turnover. The review will focus on the company's prospects for reducing costs to operate its accounting and financial systems, prospects for becoming current on the filing of its SEC periodic reports, reducing its voluntary turnover, and generating free cash flow. As part of the review, Moody's will also assess the company's prospects for either achieving bondholder consents or appealing litigation (or disputing damage claims) stemming from a September 2006 New York State Supreme Court Order, which grants summary judgment to plaintiffs and finds the company in breach under the indenture governing the company's 2.75% Series B convertible subordinated debentures. On Sept. 26, the company announced it has further delayed the filing of its FY 2005 10-K as a direct consequence of the September 2006 Order and does not expect to be current on the filing of its SEC financial statements until the spring of 2007 at the earliest. The company also announced that it expects 2006 cash will be negatively impacted by unanticipated, unusual, and ongoing costs to operate its accounting and financial systems and by unanticipated and unusual costs to retain its employees. Ratings downgraded and placed on review for further possible downgrade: * Corporate Family Rating --downgraded to B2 from B1 * US$250 million series A subordinated convertible bonds due 2024 --downgraded to B3 from B2 * US$200 million series B subordinated convertible bonds due 2024 --downgraded to B3 from B2 Headquartered in McLean, Virginia, BearingPoint Inc. is an I/T systems integrator, consultancy, and managed services provider for commercial and governmental entities worldwide. In Europe, the company maintains operations in 15 countries including Austria, France, Germany, the Netherlands, Switzerland, and the United Kingdom. BEARINGPOINT INC: S&P Holds Corp. Credit & Debt Ratings on Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services' ratings on McLean, Virginia- based BearingPoint Inc., remained on CreditWatch with developing implications, where they were placed on March 18, 2005, reflecting concerns regarding continued financial reporting problems and a recently announced order entered by the New York State Supreme Court for New York County finding BearingPoint in default under the indenture governing the company's 2.75% Series B Convertible Subordinated Debentures because of a failure to file timely regulatory reports. "This court ruling also introduces the possibility that holders of BearingPoint's other indebtedness could pursue a similar notice of default or acceleration," said Standard & Poor's credit analyst Philip Schrank. Acceleration of the $200 million Series B debentures has not been sought by the trustee, nor ordered by the court and the company had almost $300 million in cash at Sept. 25, 2006. While indemnity agreements relating to surety bonds and certain other customer contracts could also be impacted, no other class of bond holder has yet filed a notice of default. Furthermore, senior debt holders can exercise blocking rights on payments, including acceleration, under certain terms of all series of BearingPoint's subordinated debentures. Although the company intends to appeal this ruling, and seek waivers from a majority of each series of debentures, barring either of these outcomes, BearingPoint would also face the possibility that its debt obligations would be classified as current, if it were to file its 10-k currently. Standard & Poor's will continue to monitor BearingPoint's progress toward completing its delayed filings and its discussions with representatives of the holders of all of its debentures and its banks. If progress is not made over the next few weeks in coming to agreements with all creditor groups regarding waivers and forbearance, the ratings will be lowered to the 'CCC' category. Conversely, the ratings could be reviewed for a possible upgrade following the resolution of all financial reporting issues and agreements with all the creditors. Ratings on CreditWatch: BearingPoint Inc.: * Corporate credit rating: B-/Watch Dev./-- * Senior secured: B-/Watch Dev. * Senior unsecured: B-/Watch Dev. * Subordinated debt: CCC+/Watch Dev. SPANSION LLC: Market Competition Spurs S&P to Affirm B Rating ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed it 'B' corporate credit rating on Sunnyvale, Calif.-based Spansion Inc. At the same time, Standard & Poor's assigned its 'B+' issue rating, one notch above the corporate credit rating, and its '1' recovery rating to Spansion LLC's new US$400 million term loan. The outlook is stable. "The ratings reflect the company's exposure to the aggressively competitive and cyclical 'NOR' flash semiconductor industry, significant capital investment requirements, and a history of periodic material negative free cash flows," said Standard & Poor's credit analyst Bruce Hyman. These factors partly are offset by Spansion's leading market position, prospects for the development of differentiated technologies, and likely growth in certain served markets. Spansion manufactures NOR flash semiconductors, used in mobile phones, consumer products, automotive electronics, and other devices. The US$8 billion NOR market is composed largely of commodity products, and is subject to severe revenue cyclicality, intense price pressure, high capital investment requirements, and periods of negative free cash flows for suppliers. Furthermore, the NOR flash market has a relatively modest expected growth rate. Spansion has been gaining market share through its introduction of differentiated products, which also contributes to revenue and profitability growth. Spansion's NOR market share was recently 31%, vs. principal rival Intel Corp.'s 24%; historically, the companies were tied for leadership. Still, competitors are also introducing differentiated chips, which could, over time, erode Spansion's current leadership position. STMicroelectronics has a 17% share, and Samsung Electronics Co. Ltd. also participate in the market, among others. ============= G E R M A N Y ============= AUTO MANN: Claims Registration Ends October 16 ---------------------------------------------- Creditors of Auto Mann KG have until Oct. 16 to register their claims with court-appointed provisional administrator Hans- Juergen Paul. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 16 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Hall 056 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 Auto Mann KG on Aug. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Auto Mann KG Attn: Andreas Mann, Manager Rossweiner Str. 67 04720 Doebeln, Germany The administrator can be contacted at: Hans-Juergen Paul Getzelauer Str. 2 04279 Leipzig, Germany BAUER, KOHNEN: Claims Registration Ends October 23 -------------------------------------------------- Creditors of Bauer, Kohnen & Co. Grossverbraucherdienst GmbH have until Oct. 23 to register their claims with court-appointed provisional administrator Helmut Irmen. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 28 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Aachen Meeting Room K 5 3rd Floor Alter Posthof 1 52062 Aachen, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Aachen opened bankruptcy proceedings against Bauer, Kohnen & Co. Grossverbraucherdienst GmbH on Aug. 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Bauer, Kohnen & Co. Grossverbraucherdienst GmbH Langen Graben 37 52353 Dueren, Germany Attn: Franz Ludwig Kohnen, Manager Heisterner Str. 10 52379 Langerwehe, Germany The administrator can be contacted at: Helmut Irmen Windmuehle 80 52399 Merzenich, Germany CONTENDIX MANAGEMENT: Claims Registration Ends October 20 --------------------------------------------------------- Creditors of Contendix Management GmbH have until Oct. 20 to register their claims with court-appointed provisional administrator Stephan Mitlehner. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on Nov. 8 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 0105 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 Contendix Management GmbH on Aug. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Contendix Management GmbH Attn: Reinhard Hotop, Manager Langes Tal 47 98553 Schleusingen, Germany The administrator can be contacted at: Stephan Mitlehner Walter-Benjamin-Place 6 10629 Berlin-Charlottenburg, Germany EICHELE U. UTZ: Claims Registration Ends October 18 --------------------------------------------------- Creditors of Eichele u. Utz GmbH have until Oct. 18 to register their claims with court-appointed provisional administrator Gerhard Fichter. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on Nov. 14 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Heilbronn Hall 4 Ground Floor Insolvency Court Rollwagstr. 10a 74072 Heilbronn, 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 Heilbronn opened bankruptcy proceedings against Eichele u. Utz GmbH on Aug. 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Eichele u. Utz GmbH Attn: Jochen Schmidt, Manager East Road 105 74072 Heilbronn, Germany The administrator can be contacted at: Gerhard Fichter Uhlandstrasse 4 74072 Heilbronn, Germany Tel: 07131/888666 Fax: 07131/888667 GATE 2006-1: Fitch Gives BB+ Rating on EUR15.3-Mln Class E Notes ---------------------------------------------------------------- Fitch Ratings assigned expected ratings to GATE 2006-1, Ltd.'s issue of EUR185 million of floating-rate notes as: -- EUR42,000,000 Class A: AAA; -- EUR26,500,000 Class B: AA; -- EUR7,500,000 Class C: A+; -- EUR20,000,000 Class D: BBB+; and -- EUR15,300,000 Class E: BB+. The Class F notes, totaling EUR73,500,000 are not rated. The final ratings are contingent upon the receipt of final documents conforming to information already received. This transaction is a partially funded, synthetic securitization of debt obligations originated by Deutsche Bank Aktiengesellschaft to certain small-and medium sized enterprise clients domiciled mainly in Germany, while a smaller percentage is located around the globe. The transaction is designed to provide credit protection on a EUR2.1 billion portfolio that can be replenished until January 2015, of which the issuer will bear aggregate losses up to EUR185 million. The expected ratings of the notes are based on the credit quality of the reference portfolio, the credit enhancement provided by subordination, the quality of the collateral, the strength of the swap counterparty and the transaction's sound financial and legal structure. The expected ratings address the timely payment of interest and the ultimate repayment of principal. At closing, DB will enter into a credit default swap with the issuer and a super senior credit default swap with an investor. Under the CDS, the issuer will sell credit protection to DB with respect to the reference portfolio. The issuer will hedge itself by issuing credit-linked notes. The replenishment criteria include, inter alia, the weighted- average rating factor test, a weighted-average life covenant of four years and compliance with the Fitch VECTOR model, which is used as a portfolio management tool. The WARF test is met if the weighted-average Fitch equivalent rating of the reference obligations to be added is not lower than BBB-/BB+ according to the Fitch VECTOR model. In this transaction, the issuer depends on the swap counterparty to make the quarterly CDS premium payments to provide timely interest payments on the notes. Therefore, adequate downgrade provisions are in place for the expected ratings of the notes to be de-linked from the rating of the swap counterparty. Credit enhancement for the Class A totals 8.8% and is provided by subordination of the Class B to Class F notes. GERRESHEIMER ALPHA: S&P Places B+ Ratings on Watch Negative ----------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B+' long-term corporate credit ratings on Germany-based packaging manufacturer Gerresheimer Alpha GmbH and its fully owned subsidiary Gerresheimer Holdings GmbH on CreditWatch with negative implications. This follows the announcement that the latter is considering an acquisition for a total consideration of EUR300 million. "We are concerned that Gerresheimer's financial profile might not be adequate for the 'B+' rating following the acquisition of the company, the name of which has not been disclosed, based on the limited information available at this stage," said Standard & Poor's credit analyst Izabela Listowska. "The deal, which is expected to be closed within the next few months, would be fully debt funded and could delay the expected improvement of the group's credit protection measures." At May 31, 2006, credit protection measures were already weak for the ratings, with net cash debt to EBITDA for the 12 months to May 31, 2006, at 6.8x. Furthermore, the group's high capital expenditures over the next two years will put pressure on cash flows. Free cash flow will likely be negative in 2006 as a result of increased capital expenditures. Standard & Poor's had been expecting the group to improve credit protection measures to net cash debt to EBITDA of below 6x in the short term on the back of restructuring gains largely related to moving production to low-cost countries and reducing manufacturing capacities. "We will meet with management in the near future to discuss the effect of this acquisition on Gerresheimer's business and financial profile," said Ms. Listowska. "Before resolving the CreditWatch, we would also need a clearer understanding of the group's future business and financial strategies, including acquisition aims". The ratings continue to reflect Gerresheimer's highly leveraged financial profile and increasingly aggressive financial policy. These factors are mitigated by the group's good geographic diversification and leading positions in highly consolidated and growing pharmaceuticals end markets. HAUS-RAT: Claims Registration Ends October 20 --------------------------------------------- Creditors of Haus-Rat Sanierungsberatung GmbH have until Oct. 20 to register their claims with court-appointed provisional administrator Frank Wiedemann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 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 Aachen Meeting Room K 5 3rd Floor Alter Posthof 1 52062 Aachen, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Aachen opened bankruptcy proceedings against Haus-Rat Sanierungsberatung GmbH on Aug. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Haus-Rat Sanierungsberatung GmbH Vetschauer Way 65 52072 Aachen, Germany Attn: Dr. Guido Josef Schneider, Manager Birkenstr. 12 A 52078 Aachen, Germany The administrator can be contacted at: Frank Wiedemann Eupener Str. 181 52066 Aachen, Germany J.K. GRUNDSTUECKSVERWALTUNGS: Claims Registration Ends Oct. 20 -------------------------------------------------------------- Creditors of J.K. Grundstuecksverwaltungsgesellschaft mbH have until Oct. 20 to register their claims with court-appointed provisional administrator Josef Nachmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 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 Munich Meeting Room 101 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 J.K. Grundstuecksverwaltungsgesellschaft mbH on Aug. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: J.K. Grundstuecksverwaltungsgesellschaft mbH Maximiliansplatz 5 80333 Munich, Germany The administrator can be contacted at: Josef Nachmann Theatinerstr. 32 80333 Munich, Germany Tel: 089/24217737 Fax: 089/24217738 MOEVE SPEDITIONS: Claims Registration Ends October 17 ----------------------------------------------------- Creditors of Moeve Speditions- und Transportgesellschaft mbH have until Oct. 17 to register their claims with court-appointed provisional administrator Winfrid Andres. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on Nov. 7 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 2nd Floor Court Place 1 44135 Dortmund, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Dortmund opened bankruptcy proceedings against Moeve Speditions- und Transportgesellschaft mbH on Aug. 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Moeve Speditions- und Transportgesellschaft mbH Attn: Eberhard Schramm, Manager Meissener Str. 60 44139 Dortmund, Germany The administrator can be contacted at: Dr. Winfrid Andres New Customs Office 3 40221 Duesseldorf., Germany PANKE-PARK: Creditors' Meeting Slated for October 26 ---------------------------------------------------- The court-appointed provisional administrator for Panke-Park Wohnungsbaugesellschaft mbH & Co Wohnhaus KG, Christoph Schulte- Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:15 a.m. on Oct. 26. 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. 18, 2007, at the same venue. Creditors have until Nov. 30 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings Panke-Park Wohnungsbaugesellschaft mbH & Co Wohnhaus KG on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Panke-Park Wohnungsbaugesellschaft mbH & Co Wohnhaus KG Mommsenstrasse 71 10629 Berlin, Germany The administrator can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin, Germany POLY-PLAST: Claims Registration Ends October 20 ----------------------------------------------- Creditors of Poly-plast Smetan GmbH have until Oct. 20 to register their claims with court-appointed provisional administrator Hans-Joerg Derra. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 14 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Goeppingen Hall 0.24 Ground Floor Pfarrstrasse 25 73033 Goeppingen, 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 Goeppingen opened bankruptcy proceedings against Poly-plast Smetan GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Poly-plast Smetan GmbH Attn: Viola Zigelli, Manager Robert-Bosch-Str. 24 73079 Suessen, Germany The administrator can be contacted at: Hans-Joerg Derra Frauenstr. 14 89073 Ulm, Germany Tel: 0731/92288-0 POTSDAMER STRASSE: Creditors' Meeting Slated for October 26 ----------------------------------------------------------- The court-appointed provisional administrator for Potsdamer Strasse 147 KG KIBUS Geschaftsfuehrungs-GmbH & Co., Christoph Schulte-Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:10 a.m. on Oct. 26. 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. 18, 2007, at the same venue. Creditors have until Nov. 30 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings Potsdamer Strasse 147 KG KIBUS Geschaftsfuehrungs- GmbH & Co. on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Potsdamer Strasse 147 KG KIBUS Geschaftsfuehrungs-GmbH & Co. Brabanter Str. 18-20 10713 Berlin, Germany The administrator can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin, Germany VOLKSWAGEN AG: CEO B. Pischetsrieder Wants New Deal for Scania -------------------------------------------------------------- Volkswagen AG Chief Executive Bernd Pischetsrieder wants MAN AG and Scania AB to negotiate a new deal that would replace the cash-and-stock bid for Scania by MAN, Jason Singer, Christoph Rauwald and Stephen Power reports for Wall Street Journal. As reported in TCR-Europe on Oct. 9, Volkswagen acquired a 15.6% stake in MAN to secure its strategic interest in the truck sector and should make possible a friendly and jointly developed solution. Volkswagen holds the biggest share in Scania with 34% of the voting rights and 18.7% of the equity. The carmaker rejected Sept. 18 MAN's EUR9.6 billion offer for Scania, expressing it did not address Volkswagen's "industrial interest" in Scania. Along with VW, the bid was also rejected by Swedish investment firm Investor AB. "We need the best solution and at the end of the day the best solution has to be in the interests of the shareholders," Mr. Pischetsrieder disclosed. "What kind of structure a new company or a merged company would have, I don't want to speculate on." According to the report, Mr. Pischetsrieder, who is also chairman of Scania, supports the logic behind the recent hostile bid for Scania by MAN noting that his comments were made as Volkswagen's CEO and not as Scania's chairman. WSJ says Mr. Pischetsrieder has recused himself from Scania board meetings due to his conflicting interests. Mr. Pischetsrieder refused to rule out a possible counter-bid by Scania to take over MAN. WSJ says that the reverse bid would be something that would allow Volkswagen to retain its super-voting shares in Scania. When asked whether the investment company favored a counter-bid by Scania for MAN, Investor AB spokesman Fredrik Lindgren told WSJ that "we're open to all alternatives." Takeover Talks Meanwhile, MAN called for Scania to start takeover talks after the latter rejected the company's hostile bid, Bloomberg reports. "MAN has invited Scania to open negotiations," Andreas Lampersbach, a spokesman for MAN told Bloomberg. "They've asked us to start talks, but there still is a hostile bid for Scania on the market by MAN," disclosed Cecilia Edstroem, a spokeswoman for the Scania. "The situation hasn't changed vis-a-vis the bid that's on the table," she added. According to Reuters citing a person familiar with the deal, MAN CEO Hakan Samuelsson, a former Scania executive, has proposed to hold formal talks this week. If the deal pushes through, a combination of MAN and Scania would create Europe's biggest maker of commercial vehicles by market share and the world's third biggest behind Sweden's Volvo AB and Germany's DaimlerChrysler AG. 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. =========== G R E E C E =========== OLYMPIC AIRLINES: Greece Must Recover State Aid, EC Insists ----------------------------------------------------------- The European Commission warned the Greek government of a possible legal action if the state remains adamant in recovering EUR161 million in illegal aid apportioned to national carrier Olympic Airlines, AFX News says. "The Commission is still awaiting from the Greek authorities proof that they have applied this decision and recovered the illegal aid paid to Olympic," a spokesman for the executive arm of the European Union said. "The Court of Justice sentenced Greece for not having applied the decision in 2002. Similar proceedings are now underway and may go the Court if Greece does not apply the decision quickly." As reported in TCR-Europe on May 2, the European Commission referred Greece to the European Court of Justice for failure to comply with its state aid decision of Sept. 14, 2005. The decision required Greece to quantify and recover all the unlawfully granted aid to Olympic Airways and Olympic Airlines since December 2002. It also asked Greece to immediately suspend all further payments of aid to Olympic Airways and Olympic Airlines, and gave Greece two months to inform the Commission of the steps taken to comply. In its decision of September 2005, the Commission found that Greece had granted illegal and incompatible state aid through a number of measures: -- EUR40 million from the Greek State and Olympic Airways to cover part of the costs to Olympic Airlines of leasing aircraft; -- an unjustified payment of some EUR90 million from the Greek State to Olympic Airways when Olympic Airlines was set up and transferred to the State, achieved by overvaluing the assets transferred to the State; -- the Greek State's toleration of Olympic Airways' failure to pay more than EUR350 million in tax and social security liabilities due between December 2002 and December 2004; -- the assumption by the Greek State of a number of Olympic Airways' financial obligations, e.g. in connection with aircraft leasing contracts and the repayment of a bank loan, amounting to up to EUR60 million. Greece was required to recover the aid without delay, the exact amount of which had to be defined during the execution of the September 2005 decision. It was also required to immediately suspend all further payments of illegal aid to Olympic Airways and Olympic Airlines. The European Court of Justice then ruled that Greece infringed European Union rules by failing to comply with the EC's request. The Commission also deemed the Greek government of distorting competition for failure to recover the illegal state aid. Headquartered in Athens, Greece, Olympic Airlines S.A. -- http://www.olympicairlines.com/-- the holding company of the Olympic Airways group of companies, flies passengers and cargo to five continents, while offering ground handling, technical maintenance and information technology services to third parties. The group's net loss widened to EUR87 million in 2004 from EUR23 million a year before. Together with the 2004 deficit, Olympic's EUR110 million in accumulated losses are nearly equivalent to its EUR130 million in equity. ============= I R E L A N D ============= ELAN CORP: To Release Third Quarter 2006 Results on Oct. 25 ----------------------------------------------------------- Elan Corporation plc will publish its third quarter 2006 financial results on Oct. 25, 2006, before the U.S. and European financial markets open. The Company will then host a conference call at 8:30 a.m. Eastern Time (ET), 1:30 p.m. British Summer Time (BST) on the same date. About the Company Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Elan shares trade on the New York, London and Dublin Stock Exchanges. * * * As reported by TCR-Europe on May 2, 2005, the company's net loss for the first quarter of 2005 amounted to US$115.6 million, an increase of 86% over the US$62.2 million reported in the same quarter of 2004. Of the US$74.7 million net operating loss for the first quarter of 2005, US$58.6 million related to Tysabri. Total revenue decreased 31% to US$102.7 million in the first quarter of 2005 from US$148.3 million in the first quarter of 2004. As reported in the TCR-Europe on June 19, Moody's Investors Service revised the outlook on the of Elan to stable from negative. At the same time, Moody's affirmed Elan's ratings, including the B3 corporate family rating. These rating actions follow the FDA decision to approve Tysabri for resumed marketing in the U.S. The stable outlook reflects Moody's current assumption that with a reasonably successful Tysabri re-launch, Elan is more likely to meet its 2008 debt maturities with a combination of internal funds and refinancing in the event of a shortfall. Moody's expects that the market acceptance of Tysabri will be a critical factor driving any future changes in Elan's credit rating. Ratings affirmed: Elan Corporation, plc -- B3 corporate family rating Elan Finance plc -- B3 fixed-rate senior notes of US$850 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) -- B3 floating rate senior notes of US$300 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) Athena Neurosciences Finance, LLC -- B3 senior notes of US$613 million due 2008 (guaranteed by Elan Corporation, plc and subsidiaries) ========= I T A L Y ========= ALITALIA SPA: Demise Looming with Current Structure & Conditions ---------------------------------------------------------------- In a document sent to the Italian Parliament, Alitalia S.p.A. CEO Giancarlo Cimoli said the airline is poised for collapse given its current cost structure and market conditions, AFX News relates. "At present, the national carrier is unable to generate profit, even for previously invested capital," Mr. Cimoli said. Mr. Cimoli particularly blamed: -- excessive market regulations; -- high labor costs; -- recurrent labor strikes; -- rising oil prices; -- airport and regulatory inefficiencies; and -- unfair competitive advantages' enjoyed by low-cost airlines. The chief executive noted that compared to its European neighbors, Italy has "poorer" geographically sparse market, which is "centered on Rome and Milan." Mr. Cimoli also chided Italy's civil aviation and antitrust authorities for their failure to secure Alitalia from "unfair" competition. Mr. Cimoli said these conditions have made it unviable for Alitalia to compete with low-cost and foreign rivals. "The more [Alitalia] flies, the more it loses money," Mr. Cimoli added. "The present context of the market for the air transportation of people resembles a scenario in which the law of the jungle seems to prevail, rather than a coordinated and coherent system in which competition between airlines is regulated by market law and benefits consumers, the workforce and the country." Mr. Cimoli had vowed to have Alitalia make a profit by year-end, but reaching the goal seems unlikely after the carrier posted EUR221 million in first-half net losses. Mr. Cimoli noted that between July 2005 and June 2006, Alitalia earned 17.5 eurocents per kilometer on domestic routes, compared to British Airways' 21.1 cents and Lufthansa's 27.9 cents. The chief executive warned in the document that unless Italian lawmakers do something radical, Alitalia might be headed to a doom. 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. BOMBARDIER INC: Gets US$1.3-Bln Aircraft Order from NWA ------------------------------------------------------- Bombardier Aerospace Corp., a subsidiary of Bombardier Inc., disclosed that Northwest Airlines Corp. has placed an order for 36 Bombardier CRJ900 aircraft and has taken options on an additional 96, for a total of 132 aircraft if all options are exercised. The transaction is conditional upon Northwest Airlines receiving approval from the U.S. Bankruptcy Court for Southern District of New York. The value of the orders based on CRJ900 aircraft list price would be approximately US$1.35 billion. The value could rise to US$5.18 billion if all options are exercised. The aircraft will be offered in a dual class configuration with 12 First Class and 64 Economy Class seats within a spacious cabin. Concurrent with the purchase of these CRJ900 aircraft, Northwest has agreed to continue to operate all 141 CRJ200/CRJ440 aircraft as part of the Northwest Airlink operation. "[The] order builds on an established relationship with Bombardier and will provide our customers with a comfortable and efficient flight experience," said Doug Steenland, Northwest president and chief executive. "The new aircraft will lower our operating costs through a combination of significantly lower fuel consumption along with inherent maintenance cost advantages." "Major airlines are shifting short- and medium-haul flying to larger and more fuel-efficient state-of-the-art aircraft," said Steven Ridolfi, President, Bombardier Regional Aircraft. "The CRJ900 aircraft fills this requirement perfectly." Northwest is the 10th customer for the CRJ900 aircraft since the aircraft was introduced into revenue service in 2003. The CRJ900 aircraft has established itself as having the lowest operating costs of any jet in the 90-seat class. It is also very popular with passengers due to its comfortable seating with increased legroom, modern amenities and additional baggage storage capacity. As of July 31, 2006, firm orders for the Bombardier CRJ900 airliner stood at 102 aircraft with 59 delivered. Orders for the CRJ family of regional jets numbered 1,449, making it the fifth best-selling commercial jetliner family in aviation history. About Northwest Airlines Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/ -- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents. The Company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel. When the Debtors filed for protection from their creditors, they listed US$14.4 billion in total assets and $17.9 billion in total debts. About Bombardier Inc. Headquartered in Valcourt, Quebec, Bombardier Inc. (TSX: BBD) -- http://www.bombardier.com/-- manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment. Bombardier Inc.'s 6.3% Notes due 2014 carry Moody's Investor Service's Ba2 rating and Standard & Poors' and Fitch Ratings' BB ratings. PARMALAT SPA: Regains Ownership of Newlat & Carnini Units --------------------------------------------------------- Parmalat S.p.A. has reclaimed its two Italian dairy units -- Newlat Srl and Carnini S.p.A. -- at no cost, following a ruling by a Parma Court, AFX News says. According to the report, Italian authorities seized the units in the middle of a probe into Parmalat's fictitious disposals to circumvent antitrust laws. To fully regain the units, Parmalat must sell its Matese and Torre in Pietra brands to comply with a June 30, 2005 order by the Italian antitrust agency. Parmalat also has to sell some of Newlat's production facilities to ease the group's dominant position in the fresh milk market. In 2005, Newlat posted EUR150 million and Carnini registered EUR45 million in sales. 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/) SUAL GROUP: Merges with RusAl & Glencore International ------------------------------------------------------ Siberian-Urals Aluminium Company (SUAL), Russky Alyuminiyum (RusAl), and Glencore International AG have signed an agreement to create the "United Company RUSAL," by merging their respective aluminium and alumina assets. As previously reported in the TCR-Europe, the parties signed a non-binding agreement for a EUR23.5 billion merger. The new company will become the world's largest aluminium and alumina producer, employing more than 110,000 people in 17 countries on five continents. The annual volume of production will be approximately four million tons of aluminium and 11 million tons of alumina. The company will account for approximately 12.5% of global aluminium and 16% of global alumina production, respectively. The combined company will own bauxite mining, alumina refinery, aluminium smelting and foil production facilities. Under the terms of the share-for-share deal, EN+ as RUSAL's shareholder will own 66% of the new company, with SUAL's shareholders owning 22% and Glencore 12%, respectively. The parties expect to complete the deal by April 1, 2007, subject to approval by antitrust regulators in Russia and a number of other countries and the consent of other stakeholders through the exercise of their beneficial rights. To manage the process, the companies will create a coordination committee, which will be headed by SUAL representative. By merging their assets, RUSAL, SUAL Group and Glencore International AG are striving to create a true global leader in the aluminium industry. The company will have all the required resources to drive further expansion and diversification of its metals and mining businesses in key international markets. In addition, the merger will deliver significant synergies in areas including management, research and development and manufacturing. Stock Flotation The agreement also calls for the transformation of the new company into a public entity through an initial public offering on the London Stock Exchange within three years from the date of the deal's closing. The shareholders do not view an IPO as a goal in itself, but rather as an instrument to further expand and strengthen the United Company RUSAL's market-leading position in the global aluminium industry. The Board of Directors of the new company will consist of 12 members. Brian Gilbertson, currently SUAL's President, will act as the non-executive chairman. Before the IPO, the Board, in addition to Mr. Gilbertson, will be comprised of six members from RUSAL, two from SUAL, one from Glencore and two independent directors. Alexander Bulygin, currently RUSAL's CEO will serve as CEO of the joint company and will head the Executive Board, the highest governing body of the new company. The United Company RUSAL will take on all of the obligations that the merged companies and assets have to all stakeholders, as well as social obligations, cooperation with local communities, the support and development of the regions where they work. In addition, the new company will preserve the whole portfolio of investment projects that were developed by the companies independently before the merger. This includes the programs to modernize and develop existing production facilities. "This transaction is a logical step in our strategy of establishing the world's leading aluminium company," RUSAL Chairman Oleg Deripaska said. "The combination of RUSAL, SUAL and Glencore's alumina assets transforms the new group into a truly global company. The combined company will have greater financial, technical, research and development, network and marketing resources. The transactions have a compelling industrial logic and deliver significant synergies for further growth. The new joint company will be highly ambitious and [the] announcement is a staging post towards our future objectives." "This deal gives us a unique opportunity to realize the powerful potential, extensive experience and significant knowledge accumulated by Russian metallurgy," Victor Vekselberg, SUAL Holding Chairman, said. "The new company is a continuation of our joint projects intended to create one of the leaders of the global mining and metallurgical sectors." "We are pleased to join forces with RUSAL and SUAL in this exciting new venture," Ivan Glazenberg, the CEO of Glencore, said. "We believe that this agreement provides us with a unique opportunity to become a part of an integrated and well-balanced aluminium corporation - the new leader in the international market. The transaction will deliver significant synergy benefits that will provide additional value for Glencore's shareholders." The unified company will include RUSAL's assets: -- Bratsk Smelter, -- Krasnoyarsk Smelter, -- Novokuznetsk Smelter, -- Sayanogorsk Aluminium Smelter, -- Achinsk Alumina Plant, -- Nikolaev Alumina Refineries, -- Boksitogorsk Alumina Refineries, -- Friguia Alumina Plant (Guinea), -- Compagnie des Bauxites de Kindia (Guinea), -- Bauxite Company of Guyana, -- a stake in the Queensland Alumina Refinery (Australia), -- a stake in ARMENAL, -- a stake in SAYANAL, and -- a cathode plant in China. SUAL Group will contribute: -- Irkutsk Smelter, -- Ural Smelter, -- Kandalaksha Smelter, -- Bogoslovsky Smelter, -- Nadvoitsy Smelter, -- Volgograd Smelter, -- Volkhov Aluminium Smelter, -- Zaporozhye Aluminium Combine, -- Pikalevo Alumina Refinery, -- SUBR, -- Ural Foil, -- Irkutsk Silicon, -- Ural Silicon, and -- Irkutsk Powder Metallurgy. Glencore International AG will contribute: -- Aughinish in Ireland, -- Windalco in Jamaica, -- Alpart in Jamaica, and -- Eurallumina in Italy, -- Kubikenborg Aluminium Smelter in Sweden. About Glencore Headquartered in Baar, Switzerland, Glencore International AG -- http://www.glencore.com/-- engages in the smelting, refining, mining, processing, purchasing, selling and marketing of metals and minerals, energy products and agricultural products. Glencore operates on a global scale, marketing physical commodities produced in its industrial assets or purchased from third parties to industrial consumers, such as those in the automotive, steel, power generation, oil and food processing industries. Energy products and commodities are marketed and coordinated primarily in Glencore's headquarters in Baar, Switzerland and through the offices of its subsidiaries in London, Stamford and Singapore. 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. =================== K A Z A K H S T A N =================== ENERGETIC: Creditors Must File Claims by Nov. 3 ----------------------------------------------- LLP Energetic has declared insolvency. Creditors have until Nov. 3 to submit written proofs of claim to: LLP Energetic Bajov Str. 1-49 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan FINAUDIT-ASTANA: Creditors Must File Claims by Nov. 3 ----------------------------------------------------- LLP Finaudit-Astana has declared insolvency. Creditors have until Nov. 3 to submit written proofs of claim to: LLP Finaudit-Astana Office 311 Auezov Str. 84 Almaty, Kazakhstan The juridical address is: Micro District 6, 6-74 Astana, Kazakhstan Tel/Fax: 8 (3272) 50-37-22 8 (3272) 50-37-21 8 (3272) 50-37-20 JETYSAY MASLOZAVOD: Proof of Claim Deadline Slated for Nov. 3 ------------------------------------------------------------- LLP Jetysay Creamery Jetysay Maslozavod has declared insolvency. Creditors have until Nov. 3 to submit written proofs of claim to: LLP Jetysay Maslozavod Kojanov Street Jetysai South Kazakhstan Region Kazakhstan KAZROSS: Proof of Claim Deadline Slated for Nov. 3 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region entered an order placing LLP Kazross into compulsory liquidation. Creditors have until Nov. 3 to submit written proofs of claim to: LLP Kazross Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan MURAGER: Almaty Court Opens Bankruptcy Proceedings -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Publishing House Murager (RNN 600700234988) on Aug. 28. PERS KOMP: Almaty Court Begins Bankruptcy Proceedings ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Pers Komp (RNN 600700544445) on Aug. 28. POKOLENIYE: South Kazakhstan Court Starts Bankruptcy Procedure -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region commenced bankruptcy proceedings against LLP Pokoleniye. SHER-ENGINEERING: Claims Registration Ends Nov. 3 ------------------------------------------------- LLP Sher-Engineering has declared insolvency. Creditors have until Nov. 3 to submit written proofs of claim to: LLP Sher-Engineering Sanatorium Koktem, 16-2 Almaty, Kazakhstan UNITECHS: Claims Registration Ends Nov. 3 ----------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region entered an order placing LLP Unitechs into compulsory liquidation. Creditors have until Nov. 3 to submit written proofs of claim to: LLP Unitechs Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan =================== K Y R G Y Z S T A N =================== INTERBOOKTRADE: Creditors' Claims Due Nov. 19 --------------------------------------------- LLC Interbooktrade has declared insolvency. Creditors have until Nov. 19 to submit written proofs of claim to: LLC Interbooktrade Chui Ave. 30 Bishkek, Kyrgyzstan =========== L A T V I A =========== DIRECTED ELECTRONICS: Weak Finances Spur S&P to Cut Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on consumer electronics maker Directed Electronics Inc. following its acquisition of Polk Audio Inc., a provider of loudspeakers and audio equipment for homes and cars, for US$136 million in cash. The corporate credit rating was lowered to 'B+' from 'BB- ', and was removed from CreditWatch negative where it was placed on Aug. 25. The ratings outlook on Vista, Calif.-based DEI is stable. Pro forma balance sheet debt at June 30, 2006, including the acquisition debt, totaled about US$307 million. "The downgrade reflects DEI's weaker financial position after the Polk acquisition," said Standard & Poor's credit analyst Nancy C. Messer. To fund the acquisition, the company increased the size of its term loan by US$141 million under an amended and restated senior secured credit facility. This amount was an addition to the company's existing US$165.8 million term loan. At the same time that debt is increased, DEI will be required to invest in higher levels of working capital in the next several years to support its product build for the satellite radio accessories market. As a result of the higher cash interest expense and required investment in working capital, the company will generate minimal free cash flow for debt reduction in 2006 and 2007. Beginning in 2008, the company expects to generate sufficient free cash flow to allow for debt reduction. Following the acquisition, DEI is highly leveraged, with lease-adjusted total debt to EBITDA of about 4.4x. Standard & Poor's expects DEI's lease-adjusted leverage to remain at 4x or higher over the intermediate term, as the company expands and diversifies sales through new product introductions and possible periodic acquisitions. The Polk acquisition, which will increase DEI's revenues by a material 25%, adds integration risk to the credit, although mitigating this concern is DEI's successful track record of integrating prior acquisitions. At the 'B+' rating, the rating agency expects funds from operations to total debt in the range of 10%- 15% and lease-adjusted total debt to EBITDA in the range of 4x-4.5x. The Polk acquisition is consistent with DEI's strategy of growing both organically and through acquisitions in home electronics, mobile electronics, and adjacent product categories to leverage DEI's existing distribution network, customer relationships, and sales force, since the markets are highly fragmented. =================== L U X E M B O U R G =================== EVRAZ GROUP: CFO Says Fitch Upgrade Affirms Strong Commitment ------------------------------------------------------------- Evraz Group S.A. welcomes Fitch Ratings' upgrade of Evraz Group S.A.'s Issuer Default and senior unsecured ratings from 'BB-' to 'BB'. Fitch also upgraded the IDR of Cyprus-registered Mastercroft Limited to 'BB' from 'BB-' as well as the Senior Unsecured Notes issued by Mastercroft's 100% owned subsidiary, Evraz Securities S.A. At the same time the rating agency affirmed the Short-term 'B' rating of both Evraz and Mastercroft. In its press release Fitch Ratings commented that the rating action reflects Evraz's strong business profile as a low-cost, vertically integrated steelmaker with a high degree of self- sufficiency in raw materials as well as its successful track record of integrating acquired assets. Pavel Tatyanin, Evraz Group's Chief Financial Officer, said: "We are very happy to receive an upgrade from Fitch Ratings. We believe that it affirms Evraz's strong commitment and continuous efforts to being a world class steel and mining company, as well as our adherence to best principles of corporate governance and transparency. We view it as an important step towards achieving a medium-term strategic target - the investment grade rating for Evraz." About the Company Evraz Group is one of the largest vertically integrated steel and mining businesses with operations mainly in Russia. In 2004, Evraz produced 13.7 million tons of crude steel. Evraz's principal assets include three of the leading steel plants in Russia: Nizhny Tagil in the Urals region, and West Siberian and ovokuznetsk (in Siberia). EVRAZ GROUP: Fitch Upgrades Issuer Default Rating to BB ------------------------------------------------------- Fitch Ratings upgraded Luxembourg-registered Evraz Group S.A.'s Issuer Default and senior unsecured ratings to BB from BB-. The agency also upgraded Cyprus-registered subsidiary Mastercroft Limited's Issuer Default rating and Evraz Securities S.A.'s senior unsecured notes to BB from BB-. Mastercroft's and Evraz's Short-term B ratings are affirmed. The Outlooks for both IDRs remain Stable. Evraz Securities is a 100%-owned subsidiary of Mastercroft. The upgrade reflects the agency's increased confidence that Evraz's strong business profile as a low-cost, vertically integrated steelmaker with a high degree of self-sufficiency in raw materials will enable it to maintain a conservative financial profile throughout the steel price cycle. It also reflects the progress made in improving the quality of corporate governance and transparency following the group's initial public offering in June 2005. The agency also notes Evraz's successful track record of integrating acquired assets. Evraz is the largest steel producer by output in Russia and among the largest in the world. It holds a leading domestic market position in long steel products with an almost monopolistic position in railway transport steel products. Evraz's main customers in Russia are JSC Russian Railways as well as the construction and pipe-producing industries. In 2005 a majority of export sales were made to Asian markets; however, the European share of revenues is expected to grow following the recent acquisition of Palini e Bertoli in Italy and Vitkovice Steel in the Czech Republic. In 2006 Evraz also acquired several vanadium assets in the U.S. and South Africa, thus becoming one of leading vanadium producer worldwide. Fitch notes that in FY05 Evraz generated revenues of US$6.5 billion, a 9% increase on the previous year. Evraz's FY05 EBIDTA margin of 28%, while lower than the FY04 margin of 34%, still remained higher than those of its Russian and global peers. The agency views positively Evraz's selective acquisition strategy, which provides a degree of geographical diversification while maintaining leverage at a moderate net debt/EBITDA of 1x as at FY05. Evraz's financial discipline is evidenced by the company's sound credit metrics and strong operating cash flow generation. Fitch notes the commitment of Evraz's management to adhere to net debt/EBITDA of less than 1.5x and to consider equity financing for any sizable acquisition. Evraz's liquidity is good, underpinned by retained cash balances of US$641 million at FY05. At FY05, gross debt increased to US$2.4 billion from US$1.4 billion at FY04. Half of the additional gross debt was due to a new note issue by Evraz of US$750 million with an 8.25% coupon due in 2015. Fitch notes that on Sept. 25 Evraz repaid its debut eurobond of US$175 million. ===================== N E T H E R L A N D S ===================== SIRVA INC: S&P Withdraws and Removes Ratings from Watch Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on SIRVA Inc. and its primary operating subsidiary, SIRVA Worldwide Inc. In addition, all ratings are removed from CreditWatch, where they were placed with negative implications on March 15, 2005. "The rating withdrawal reflects our opinion that as a result of SIRVA's continued delay in filing updated financial statements for both 2005 and 2006, and the likelihood that the company will not be a current filer until the second half of 2007, it lacks adequate financial information to properly determine SIRVA's current credit standing and evaluate creditors' risks," said Standard & Poor's credit analyst Michael Scerbo. Ratings List Ratings Withdrawn, Removed From Creditwatch To From -- ---- SIRVA Inc. Corporate credit rating NR B/Watch Negative/-- SIRVA Worldwide Inc. Corporate credit rating NR B/Watch Negative/-- Senior secured debt NR B/Watch Negative/-- Recovery rating NR 3 VNU GROUP: Buying NetRatings' Minority Stake for US$16/Share ------------------------------------------------------------ VNU Group B.V. proposed to acquire the outstanding publicly held minority interest in NetRAtings Inc. for US$16 per share in cash, representing a 10% premium over the company's closing price on Oct. 6, and a 16% premium to the six-month average closing price. NetRatings' substantial cash position represents a significant portion of its equity value, for which VNU would not be expected to pay a premium. VNU's offer represents a 15% premium over the company's valuation on Oct. 6, and a 27% premium based on the six-month average closing price. VNU's offer values NetRatings at an enterprise value multiple of 54x and 36x over 2006 and 2007 EBITDA, respectively, based on Wall Street estimates. VNU said its proposal represents an excellent opportunity for NetRatings' stockholders to realize a fair price for their shares. VNU owns 60.5% of the common stock of NetRatings currently outstanding. Following the transaction, NetRatings would become a wholly owned subsidiary of VNU. VNU anticipated that NetRatings' Board of Directors would form a special committee of independent directors to consider the proposal, with the assistance of outside financial and legal advisors. The proposed merger would be subject to the negotiation and execution of a mutually acceptable definitive merger agreement following confirmatory due diligence by VNU and the approval of the NetRatings special committee and the holders of a majority of all the outstanding shares of NetRatings' common stock, as well as other customary conditions. VNU has advised NetRatings that VNU is only interested in acquiring the outstanding stock of NetRatings not currently owned by VNU. VNU has stated that it has no interest in a disposition of any of its stake in NetRatings. NetRatings and VNU will file appropriate materials with the Securities and Exchange Commission if a transaction agreement is successfully negotiated. J.P. Morgan Securities Inc. is serving as a financial advisor to VNU in the transaction. Headquartered in Haarlem, Netherlands, VNU N.V. -- http://www.vnu.com/-- operates publishing businesses and offers marketing and media information. The Company publishes and distributes telephone directories, children's books and periodicals, and business information periodicals. VNU also offers television and Internet usage data and advertising expenditure analysis. * * * As reported in TCR-Europe on July 20, Moody's Investors Service downgraded the Corporate Family Rating of VNU NV to B2 from B1 and its senior unsecured debt ratings to Caa1 from B1. This concludes Moody's review of VNU's ratings, which was last continued on May 26. Rating downgraded to B2 from B1: -- Corporate Family Rating Ratings downgraded to Caa1 from B1: -- floating rate Euro MT Notes due 2012; -- 6.75% Euro MT Notes due 2012; -- 2.5% Yen MT Notes due 2011, the floating rate Euro MT Notes due 2010; -- 5.625% GBP MT Notes due 2010/17; -- 5.5% Eurobonds due 2008; -- 6.75% Eurobonds due 2008; -- 6.625% Eurobonds due 2007; -- Euro MTN program; and -- Nielsen Media Research Inc.'s 7.6% Notes due 2009 guaranteed by VNU. In a TCR-Europe report on July 19, Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on Dutch media group VNU N.V. to 'B' from 'B+', and affirmed its 'B' short-term corporate credit rating. All ratings have been removed from CreditWatch, where they were placed with negative implications on Oct. 12, 2005. S&P said the outlook is negative. ============= R O M A N I A ============= COMPANIA NATIONALA: Moody's Lifts Corp. Family Rating to Ba1 ------------------------------------------------------------ Moody's Investors Service upgraded the corporate family rating of Compania Nationala de Cai Ferate CFR S.A. to Ba1 from Ba2. The rating outlook is stable. The rating action reflects the upgrade in the local currency rating of the Government of Romania to Baa3 from Ba1 on Oct. 6. This concludes the review for upgrade that Moody's initiated on June 7 following its decision to review for upgrade the ratings of the Government of Romania on the same day. In accordance with Moody's GRI rating methodology, the rating of CFR reflects the combination of the following inputs: -- Baseline credit assessment of 14-16 (on a scale of 1 to 21, where 1 represents lowest credit risk) -- Baa3 local currency rating of the Government of Romania -- High dependence -- High support There have been no changes to the baseline credit assessment, dependence, or support inputs into CFR's rating as a result of this rating action. Rating outstanding: * Corporate Family Rating -- Ba1, stable Moody's assessment of CFR's baseline credit risk, default dependence, and government support remain unchanged. The rating action therefore solely reflects the impact of the sovereign rating action, as applied through Moody's GRI rating methodology. Compania Nationala de Cai Ferate CFR S.A., headquartered in Bucharest, is the owner and operator of Romania's rail infrastructure. =========== R U S S I A =========== ATELIER ZEBRA: Court Names S. Suvorov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for CJSC Atelier Zebra. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-41107/06-73-846B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Atelier Zebra Krymskiy Val Str. 9 Moscow Region Russia BOMBARDIER INC: Gets US$1.3-Bln Aircraft Order from NWA ------------------------------------------------------- Bombardier Aerospace Corp., a subsidiary of Bombardier Inc., disclosed that Northwest Airlines Corp. has placed an order for 36 Bombardier CRJ900 aircraft and has taken options on an additional 96, for a total of 132 aircraft if all options are exercised. The transaction is conditional upon Northwest Airlines receiving approval from the U.S. Bankruptcy Court for Southern District of New York. The value of the orders based on CRJ900 aircraft list price would be approximately US$1.35 billion. The value could rise to US$5.18 billion if all options are exercised. The aircraft will be offered in a dual class configuration with 12 First Class and 64 Economy Class seats within a spacious cabin. Concurrent with the purchase of these CRJ900 aircraft, Northwest has agreed to continue to operate all 141 CRJ200/CRJ440 aircraft as part of the Northwest Airlink operation. "[The] order builds on an established relationship with Bombardier and will provide our customers with a comfortable and efficient flight experience," said Doug Steenland, Northwest president and chief executive. "The new aircraft will lower our operating costs through a combination of significantly lower fuel consumption along with inherent maintenance cost advantages." "Major airlines are shifting short- and medium-haul flying to larger and more fuel-efficient state-of-the-art aircraft," said Steven Ridolfi, President, Bombardier Regional Aircraft. "The CRJ900 aircraft fills this requirement perfectly." Northwest is the 10th customer for the CRJ900 aircraft since the aircraft was introduced into revenue service in 2003. The CRJ900 aircraft has established itself as having the lowest operating costs of any jet in the 90-seat class. It is also very popular with passengers due to its comfortable seating with increased legroom, modern amenities and additional baggage storage capacity. As of July 31, 2006, firm orders for the Bombardier CRJ900 airliner stood at 102 aircraft with 59 delivered. Orders for the CRJ family of regional jets numbered 1,449, making it the fifth best-selling commercial jetliner family in aviation history. About Northwest Airlines Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/ -- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents. The Company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel. When the Debtors filed for protection from their creditors, they listed US$14.4 billion in total assets and $17.9 billion in total debts. About Bombardier Inc. Headquartered in Valcourt, Quebec, Bombardier Inc. (TSX: BBD) -- http://www.bombardier.com/-- manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment. Bombardier Inc.'s 6.3% Notes due 2014 carry Moody's Investor Service's Ba2 rating and Standard & Poors' and Fitch Ratings' BB ratings. BUILDER: Bankruptcy Hearing Slated for Oct. 11 ----------------------------------------------- The Arbitration Court of Yamalo-Nenetskiy Autonomous Region will convene on Oct. 11 to hear the bankruptcy supervision procedure on LLC Builder (TIN 8906006165). The case is docketed under Case No. A81-3908/2006. The Temporary Insolvency Manager is: I. Bodnar Post User Box 39 Panel 3 17 Prom area Gubkinskiy Tyumen Region 629830 Yamalo-Nenetskiy Autonomous Region Russia The Arbitration Court of Yamalo-Nenetskiy Autonomous Region is located at: Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Autonomous Region Russia The Debtor can be reached at: LLC Builder Panel 12 Prom area Muravlenko 629603 Yamalo-Nenetskiy Autonomous Region Russia CONNECT: Moscow Court Names S. Suvorov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for CJSC Connect. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-38154/06-74-712B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Connect Krymskiy Val Str. 8 Moscow Region Russia EVRAZ GROUP: CFO Says Fitch Upgrade Affirms Strong Commitment ------------------------------------------------------------- Evraz Group S.A. welcomes Fitch Ratings' upgrade of Evraz Group S.A.'s Issuer Default and senior unsecured ratings from 'BB-' to 'BB'. Fitch also upgraded the IDR of Cyprus-registered Mastercroft Limited to 'BB' from 'BB-' as well as the Senior Unsecured Notes issued by Mastercroft's 100% owned subsidiary, Evraz Securities S.A. At the same time the rating agency affirmed the Short-term 'B' rating of both Evraz and Mastercroft. In its press release Fitch Ratings commented that the rating action reflects Evraz's strong business profile as a low-cost, vertically integrated steelmaker with a high degree of self- sufficiency in raw materials as well as its successful track record of integrating acquired assets. Pavel Tatyanin, Evraz Group's Chief Financial Officer, said: "We are very happy to receive an upgrade from Fitch Ratings. We believe that it affirms Evraz's strong commitment and continuous efforts to being a world class steel and mining company, as well as our adherence to best principles of corporate governance and transparency. We view it as an important step towards achieving a medium-term strategic target - the investment grade rating for Evraz." About the Company Evraz Group is one of the largest vertically integrated steel and mining businesses with operations mainly in Russia. In 2004, Evraz produced 13.7 million tons of crude steel. Evraz's principal assets include three of the leading steel plants in Russia: Nizhny Tagil in the Urals region, and West Siberian and ovokuznetsk (in Siberia). EVRAZ GROUP: Fitch Upgrades Issuer Default Rating to BB ------------------------------------------------------- Fitch Ratings upgraded Luxembourg-registered Evraz Group S.A.'s Issuer Default and senior unsecured ratings to BB from BB-. The agency also upgraded Cyprus-registered subsidiary Mastercroft Limited's Issuer Default rating and Evraz Securities S.A.'s senior unsecured notes to BB from BB-. Mastercroft's and Evraz's Short-term B ratings are affirmed. The Outlooks for both IDRs remain Stable. Evraz Securities is a 100%-owned subsidiary of Mastercroft. The upgrade reflects the agency's increased confidence that Evraz's strong business profile as a low-cost, vertically integrated steelmaker with a high degree of self-sufficiency in raw materials will enable it to maintain a conservative financial profile throughout the steel price cycle. It also reflects the progress made in improving the quality of corporate governance and transparency following the group's initial public offering in June 2005. The agency also notes Evraz's successful track record of integrating acquired assets. Evraz is the largest steel producer by output in Russia and among the largest in the world. It holds a leading domestic market position in long steel products with an almost monopolistic position in railway transport steel products. Evraz's main customers in Russia are JSC Russian Railways as well as the construction and pipe-producing industries. In 2005 a majority of export sales were made to Asian markets; however, the European share of revenues is expected to grow following the recent acquisition of Palini e Bertoli in Italy and Vitkovice Steel in the Czech Republic. In 2006 Evraz also acquired several vanadium assets in the U.S. and South Africa, thus becoming one of leading vanadium producer worldwide. Fitch notes that in FY05 Evraz generated revenues of US$6.5 billion, a 9% increase on the previous year. Evraz's FY05 EBIDTA margin of 28%, while lower than the FY04 margin of 34%, still remained higher than those of its Russian and global peers. The agency views positively Evraz's selective acquisition strategy, which provides a degree of geographical diversification while maintaining leverage at a moderate net debt/EBITDA of 1x as at FY05. Evraz's financial discipline is evidenced by the company's sound credit metrics and strong operating cash flow generation. Fitch notes the commitment of Evraz's management to adhere to net debt/EBITDA of less than 1.5x and to consider equity financing for any sizable acquisition. Evraz's liquidity is good, underpinned by retained cash balances of US$641 million at FY05. At FY05, gross debt increased to US$2.4 billion from US$1.4 billion at FY04. Half of the additional gross debt was due to a new note issue by Evraz of US$750 million with an 8.25% coupon due in 2015. Fitch notes that on Sept. 25 Evraz repaid its debut eurobond of US$175 million. GAZPROM OAO: Props Up Investment in Bovanenkovo Gas Field --------------------------------------------------------- The Gazprom Management Committee has reviewed the progress with the development of the substantiations of investment in supporting and gas transmission facilities of the Yamal Peninsula based Bovanenkovo field. The Management Committee ordered to initiate the investment stage of the Bovanenkovo oil and gas condensate field development and gas main network construction. Gazprom's core business units were tasked with bringing onstream in the third quarter of 2011 first 15 bcm/y upstream facilities for the Cenomanian-Aptian deposits of the Bovanenkovo field as well as a Bovanenkovo-Ukhta gas main system. In January 2002, the Gazprom Management Committee identified the Yamal Peninsula as a region of Gazprom's strategic interest. Commercial development of Yamal fields will help build up local gas production to 250 bcm/y. Accessing Yamal is of principled significance for securing gas extraction growth. Yamal has seen the discovery of 11 gas and 15 oil and gas condensate fields with the total recoverable gas, condensate and oil reserves of 10.4 tcm, 228.3 million tons and 291.8 million tons, respectively. The combined reserves of Yamal's largest fields, namely the Bovanenkovo, Kharasavey and Novoportovskoye fields operated by Nadymgazprom (a wholly owned subsidiary of Gazprom), account for 5.9 tcm of gas, 100.2 million tons of condensate and 227 million tons of oil. The Cenomanian-Aptian deposits of the Bovanenkovo field are paramount development target on Yamal. The Substantiations of investment in supporting and gas transmission facilities of the Yamal Peninsula based Bovanenkovo field were developed by VNIPIgazdobycha. The Substantiations cover the capacity commissioning sequence, gas extraction dynamics, general transmission route and gas main construction scheme. Some 115 bcm/y of projected gas production from Bovanenkovo is anticipated to increase to 140 bcm/y in the long-term. In order to deliver the extracted gas to the UGTS, it is necessary to build a 2,451-km-long gas transmission network including a new 1,100-km-long transmission corridor from Bovanenkovo to Ukhta. The Substantiations have received all government and expert approvals required by the existing RF legislation. All expert reports point to the expediency of executing the development project for the Bovanenkovo field and construction project for a gas transmission network from Yamal. 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. INTER-PRODUCT: Court Names S. Suvorov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for CJSC Company Inter-Product. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-42571/06-95-929B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Company Inter-Product Room 4 Samarkandskiy Avenue 15 Moscow Region Russia INVESTMENTS AND INNOVATION: E. Eliseeva to Manage Assets -------------------------------------------------------- The Arbitration Court of Moscow appointed Ms. E. Eliseeva as Insolvency Manager for Joint Stock Investments and Innovation Technologies. She can be reached at: E. Eliseeva 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. A40-23944/06-74-307 B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: Joint Stock Investments And Innovation Technologies Moscow Region Russia KAMERTON BANK: Court Names S. Suvorov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for LLC Kamerton Bank. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-46136/06-103-911B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: LLC Kamerton Bank 1st Tverskoy-Yamskoy 18/3 Moscow Region Russia LUKOIL OAO: Upgrades Gas Conversion Capacities in Siberia --------------------------------------------------------- Vagit Alekperov, OAO LUKOIL President, attended an official ceremony devoted to commissioning the Lokosovskiy gas processing unit production facilities after an upgrading process. As a result of the upgrading, producing capacity of the unit increased from 1 billion to 1.9 billion cu. M. of associated gas per year. The Lokosovskiy gas-processing unit upgrading was the final stage of creating a full associated oil and gas conversion system of OOO Lukoil-Zapadnaya Sibir (100% subsidiary of OAO LUKOIL). Gas conversion capacities intensification had been underway since 2004. Over 160 km of gas collection and two vacuum- compressor stations were constructed in its framework on Kogalym, Pokachi and Langepas fields. In 2005 an LPG tank farm, with the total capacity of 8 ths cu. M., and a loading rack for 30 rail tank cars working simultaneously, as well as a stable natural gasoline and propane-filling unit were put into operation in Langepas. While the gas treatment unit was being upgraded, a booster compression station, a gas pipeline over 8 km long and a gas measuring station were put into operation at the tap-in into OAO GAZPROM gas pipeline system. Presently, the average level of associated gas utilization in the Company is approximately 80%. OOO LUKOIL oil gas utilization program is aimed at reaching 95%. About Lukoil Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX, RTS: LKOH) is the country's largest vertically integrated oil & gas company in terms of reserves, and one of the largest oil & gas companies in the world. In the first nine months of 2005, the group produced 1.92 million barrels of oil equivalent (boe) per day and in 2004 had refinery throughput of 44 million tons. Total SPE reserves in 2004 were just over 20 billion boe. The group's 2005 nine-month revenues were US$40.6 billion. * * * As reported in TCR-Europe on July 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Lukoil OAO to 'BB+' from 'BB'. S&P said the outlook is positive. As reported in the TCR-Europe on Jan. 26, Moody's Investors Service has changed the outlook of OAO Lukoil's Ba1 Corporate Family Rating and Ba2 Issuer Rating to positive from stable. Moody's last rating action on LUKOIL was on April 26, when the agency upgraded the company's ratings from Ba2/Ba3 to Ba1/Ba2. NATIONAL CREDIT: Court Names S. Suvorov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for OJSC National Credit System. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-39482/06-78-811B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: OJSC National Credit System Krymskiy Val Str. 9 Moscow Region Russia NOVODEREVENKOVSK-AGRO-SNAB: Court Hearing Slated for Nov. 29 ------------------------------------------------------------ The Arbitration Court of Orel Region will convene on Nov. 29 to hear the bankruptcy supervision procedure on OJSC Novoderevenkovsk-Agro-Snab. The case is docketed under Case No. A48-3468/06-16b. The Temporary Insolvency Manager is: L. Titovoy Komsomolskaya Str. 386 302010 Orel Region Russia The Arbitration Court of Orel Region is located at: Gorkogo Str. 42 302000 Orel Region Russia The Debtor can be reached at: OJSC Novoderevenkovsk-Agro-Snab Komsomolskaya Str. 13 Khomutovo Novoderevenkovskiy Region Orel Region Russia REFORMA-INVEST: Court Names S. Suvorov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for CJSC Investment Company Reforma-Invest. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-39626/06-73-747B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Investment Company Reforma-Invest Arkhipova Str. 4/2 Moscow Region Russia RENAISSANCE CAPITAL: Fitch Assigns Issuer Default Rating at BB- --------------------------------------------------------------- Fitch Ratings affirmed Russia-based Renaissance Capital Holdings Limited's ratings at Issuer Default BB- with Stable Outlook, Short-term B, Individual C/D, and Support 5. The ratings of its subsidiary, Renaissance U.K. Holdings Limited are affirmed at Issuer Default BB- with Stable Outlook, Short- term B, Individual C/D, and Support 3. At the same time, Fitch has assigned an expected Long-term rating of BB- to the senior unsecured notes that are to be issued by Renaissance Securities Trading Limited, under the unconditional and irrevocable guarantee of Renaissance Capital and under Renaissance Capital's US$1 billion euro medium-term note Program. The final rating is contingent upon receipt of final documentation conforming materially to information already received. Renaissance Capital is a holding company and its ratings reflect the group's good investment-banking franchise in Russia, its strong profitability, its moderate leverage, its experienced management team and its good risk management. However, they also take into account the group's reliance on the high risk profile markets of Russia and, to a lesser extent, Ukraine for its business, which will make for volatile revenues and earnings over the long-term, as well as a complex group structure. The ratings of RUKHL reflect Fitch's view that there would be a strong propensity of RCHL to provide support for RUKHL, and the high level of integration between the two businesses. Upward pressure on Renaissance's Issuer Default rating and on RUKHL's Issuer Default rating via support, is likely to be limited given the group's sole focus on Russia and Ukraine and its complex group structure. Downward pressure could result from a material downturn in investor sentiment towards Russia, significant credit or market losses, or a material increase in the group's leverage or risk appetite. Renaissance's performance has been very strong and its performance outlook is positive while current conditions persist. However, its primary focus on Russia makes both it and RUKHL vulnerable to a sharp, prolonged downturn in investor confidence in Russia. Efficiency and cost flexibility are relatively strong. Revenue diversification is improving by product, if not by geography. Management is experienced and consistently being upgraded both in the front and back offices and at the executive level. The risk management function is good, but market risk is still considered by Fitch to be high, although proprietary trading is not a major activity. Operational risk arises from the risk of trade processing errors, trader misconduct and IT systems failure. An event that causes a serious blow to Renaissance Capital's reputation could quickly affect the group. Renaissance Capital's biggest asset is its staff. A departure of key managers or staff would be a substantial threat. Some mitigation is provided by the equity participation of around 100 senior managers. Liquidity is closely controlled and satisfactory, but asset liquidity is susceptible to volatility. Leverage has been increasing but remains lower than at the global investment banks and moderate. The Renaissance Capital group was founded in 1995 and is now a leading Russian and Ukrainian investment bank with the holding company located in Bermuda. RUKHL was created in 2000 in the U.K. for the group's trading operations with non-CIS clients. RUBY: Moscow Court Names N. Tkachenko to Manage Assets ------------------------------------------------------ The Arbitration Court of Moscow appointed Mr. N. Tkachenko as Insolvency Manager for CJSC Russian-Belarusian Company Ruby. He can be reached at: N. Tkachenko 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. A40-21787/06-78-275 B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Russian-Belarusian Company Ruby Moscow Region Russia SHILOVO-MEAT: Court Starts Bankruptcy Supervision Procedure ----------------------------------------------------------- The Arbitration Court of Ryazan Region commenced bankruptcy supervision procedure on OJSC Shilovo-Meat. The case is docketed under Case No. A54-3213/2006 s6. The Temporary Insolvency Manager is: E. Porkhunov Office 14 Zavrazhanova 5 Ryazan Region Russia The Arbitration Court of Ryazan Region is located at: Pochtovaya Str. 43/44 Ryazan Region Russia The Debtor can be reached at: OJSC Shilovo-Meat Ryazanskaya Str. 118 Shilovo Ryazan Region Russia SUAL GROUP: Merges with RusAl & Glencore International ------------------------------------------------------ Siberian-Urals Aluminium Company (SUAL), Russky Alyuminiyum (RusAl), and Glencore International AG have signed an agreement to create the "United Company RUSAL," by merging their respective aluminium and alumina assets. As previously reported in the TCR-Europe, the parties signed a non-binding agreement for a EUR23.5 billion merger. The new company will become the world's largest aluminium and alumina producer, employing more than 110,000 people in 17 countries on five continents. The annual volume of production will be approximately four million tons of aluminium and 11 million tons of alumina. The company will account for approximately 12.5% of global aluminium and 16% of global alumina production, respectively. The combined company will own bauxite mining, alumina refinery, aluminium smelting and foil production facilities. Under the terms of the share-for-share deal, EN+ as RUSAL's shareholder will own 66% of the new company, with SUAL's shareholders owning 22% and Glencore 12%, respectively. The parties expect to complete the deal by April 1, 2007, subject to approval by antitrust regulators in Russia and a number of other countries and the consent of other stakeholders through the exercise of their beneficial rights. To manage the process, the companies will create a coordination committee, which will be headed by SUAL representative. By merging their assets, RUSAL, SUAL Group and Glencore International AG are striving to create a true global leader in the aluminium industry. The company will have all the required resources to drive further expansion and diversification of its metals and mining businesses in key international markets. In addition, the merger will deliver significant synergies in areas including management, research and development and manufacturing. Stock Flotation The agreement also calls for the transformation of the new company into a public entity through an initial public offering on the London Stock Exchange within three years from the date of the deal's closing. The shareholders do not view an IPO as a goal in itself, but rather as an instrument to further expand and strengthen the United Company RUSAL's market-leading position in the global aluminium industry. The Board of Directors of the new company will consist of 12 members. Brian Gilbertson, currently SUAL's President, will act as the non-executive chairman. Before the IPO, the Board, in addition to Mr. Gilbertson, will be comprised of six members from RUSAL, two from SUAL, one from Glencore and two independent directors. Alexander Bulygin, currently RUSAL's CEO will serve as CEO of the joint company and will head the Executive Board, the highest governing body of the new company. The United Company RUSAL will take on all of the obligations that the merged companies and assets have to all stakeholders, as well as social obligations, cooperation with local communities, the support and development of the regions where they work. In addition, the new company will preserve the whole portfolio of investment projects that were developed by the companies independently before the merger. This includes the programs to modernize and develop existing production facilities. "This transaction is a logical step in our strategy of establishing the world's leading aluminium company," RUSAL Chairman Oleg Deripaska said. "The combination of RUSAL, SUAL and Glencore's alumina assets transforms the new group into a truly global company. The combined company will have greater financial, technical, research and development, network and marketing resources. The transactions have a compelling industrial logic and deliver significant synergies for further growth. The new joint company will be highly ambitious and [the] announcement is a staging post towards our future objectives." "This deal gives us a unique opportunity to realize the powerful potential, extensive experience and significant knowledge accumulated by Russian metallurgy," Victor Vekselberg, SUAL Holding Chairman, said. "The new company is a continuation of our joint projects intended to create one of the leaders of the global mining and metallurgical sectors." "We are pleased to join forces with RUSAL and SUAL in this exciting new venture," Ivan Glazenberg, the CEO of Glencore, said. "We believe that this agreement provides us with a unique opportunity to become a part of an integrated and well-balanced aluminium corporation - the new leader in the international market. The transaction will deliver significant synergy benefits that will provide additional value for Glencore's shareholders." The unified company will include RUSAL's assets: -- Bratsk Smelter, -- Krasnoyarsk Smelter, -- Novokuznetsk Smelter, -- Sayanogorsk Aluminium Smelter, -- Achinsk Alumina Plant, -- Nikolaev Alumina Refineries, -- Boksitogorsk Alumina Refineries, -- Friguia Alumina Plant (Guinea), -- Compagnie des Bauxites de Kindia (Guinea), -- Bauxite Company of Guyana, -- a stake in the Queensland Alumina Refinery (Australia), -- a stake in ARMENAL, -- a stake in SAYANAL, and -- a cathode plant in China. SUAL Group will contribute: -- Irkutsk Smelter, -- Ural Smelter, -- Kandalaksha Smelter, -- Bogoslovsky Smelter, -- Nadvoitsy Smelter, -- Volgograd Smelter, -- Volkhov Aluminium Smelter, -- Zaporozhye Aluminium Combine, -- Pikalevo Alumina Refinery, -- SUBR, -- Ural Foil, -- Irkutsk Silicon, -- Ural Silicon, and -- Irkutsk Powder Metallurgy. Glencore International AG will contribute: -- Aughinish in Ireland, -- Windalco in Jamaica, -- Alpart in Jamaica, and -- Eurallumina in Italy, -- Kubikenborg Aluminium Smelter in Sweden. About Glencore Headquartered in Baar, Switzerland, Glencore International AG -- http://www.glencore.com/-- engages in the smelting, refining, mining, processing, purchasing, selling and marketing of metals and minerals, energy products and agricultural products. Glencore operates on a global scale, marketing physical commodities produced in its industrial assets or purchased from third parties to industrial consumers, such as those in the automotive, steel, power generation, oil and food processing industries. Energy products and commodities are marketed and coordinated primarily in Glencore's headquarters in Baar, Switzerland and through the offices of its subsidiaries in London, Stamford and Singapore. 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. SUNRISE-INVEST: Court Names E. Eliseeva as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Moscow appointed Ms. E. Eliseeva as Insolvency Manager for OJSC Sunrise-Invest. She can be reached at: E. Eliseeva 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. A40-25150/06-74-344 B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: OJSC Sunrise-Invest Moscow Region Russia TRANSPORT ENTERPRISE: Tomsk Court Starts Bankruptcy Supervision --------------------------------------------------------------- The Arbitration Court of Tomsk Region commenced bankruptcy supervision procedure on LLC Transport Enterprise (TIN 7016005367). The case is docketed under Case No. A67-6579/06. The Temporary Insolvency Manager is: S. Ananin Post User Box 4790 630134 Tomsk Region Russia The Debtor can be reached at: LLC Transport Enterprise Chapaeva Str. 50A Melnikovo Shegarskiy Region 636140 Tomsk Region Russia WHEAT VERKHOVSKAYA: Orel Bankruptcy Hearing Slated for Nov. 29 -------------------------------------------------------------- The Arbitration Court of Orel Region will convene at 11:10 a.m. on Nov. 29 to hear the bankruptcy supervision procedure on OJSC Wheat Verkhovskaya. The case is docketed under Case No. A48-3352/06-20B. The Temporary Insolvency Manager is: I. Vasilenko Office 59a Gorkogo Str. 45 302040 Orel Region Russia The Arbitration Court of Orel Region is located at: Gorkogo Str. 42 302000 Orel Region Russia The Debtor can be reached at: OJSC Wheat Verkhovskaya Verkhvoye Verkhovskiy Region Orel Region Russia ========= S P A I N ========= CHEMTURA CORP: Moody's Assigns Loss-Given-Default Rating -------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Chemicals and Allied Products sector, the rating agency confirmed its Ba1 Corporate Family Rating for Chemtura Corp. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500mm 6.875% Gtd. Sr. Notes due June 2016 Ba1 Ba1 LGD4 53% US$150mm 6.875% Sr. Sec. Debentures due Feb 2026 Ba1 Ba1 LGD4 53% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%) About Chemtura Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE: CEM) -- http://www.chemtura.com/-- is a global manufacturer and marketer of specialty chemicals, crop protection and pool, spa and home care products. The Company has approximately 6,400 employees around the world and sells its products in more than 100 countries. In Europe, the company maintains operations in Belgium, France, Germany, Italy, the Netherlands, Spain, Switzerland and the United Kingdom. GC FTGENCAT: Fitch Junks EUR4.5 Million Class D Notes ----------------------------------------------------- Fitch Ratings assigned expected ratings to GC FTGENCAT Caixa Sabadell 1, Fondo de Titulizacion de Activos' notes totaling EUR304.5 million due in October 2040 as: -- EUR113.5 million Class A (S): AAA; -- EUR163 million Class A (G): AAA; -- EUR11.7 million Class B: A+; -- EUR11.8 million Class C: BBB-; and -- EUR4.5 million Class D: CCC. The final ratings are contingent on final documents conforming to information already received. The expected ratings address payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B and C notes, as well as the repayment of principal by legal final maturity date. The Class D notes will be issued to finance the creation of the reserve fund at closing. The good performance of the Class D notes depends on very favorable conditions for the collateral backing the Class A to C notes, and therefore its expected rating is supported by the recovery rate that note holders are likely to receive during the life of the transaction. The Autonomous Community of Catalonia will guarantee ultimate payment of interest and principal on the class A (G) notes. This transaction is a cash flow securitization of a EUR300 million revolving pool of secured and unsecured loans granted by Caixa d'Estalvis de Sabadell to small- and medium-sized enterprises in Spain and specifically in the region of Cataluna. Caixa Sabadell has participated in a number of securitization programs, especially CDO of CHs. This transaction, however, represents Caixa Sabadell's first single seller SME securitization. Static pool transactions are standard in the Spanish SME collateralized debt obligation market; however, this transaction has a 30-month revolving period after which the notes will amortize sequentially. Breach of certain triggers during the revolving period will lead to early amortization of the notes. Based on the dynamic and static delinquency data presented by Caixa Sabadell, Fitch verified that the performance triggers applicable during the revolving phase should be able to maintain the credit profile and financial quality of the collateral until the beginning of the amortization phase. TDA IBERCAJA: Moody's Rates EUR7-Mln Series E Notes at (P)Ba1 ------------------------------------------------------------- Moody's Investors Service assigned these provisional (P) ratings to seven series of Bonos de Titulizacion de Activos (securitization bonds) to be issued by TdA Ibercaja 4 Fondo de Titulizacion de Activos (TdA Ibercaja 4), a Spanish asset securitization fund that has been created by Titulizacion de Activos, S.G.F.T, S.A.: -- EUR250 million Series A1 notes: (P)Aaa; -- EUR819.4 million Series A2 notes: (P)Aaa; -- EUR270.4 million Series A3PAC notes: (P)Aaa; -- EUR14 million Series B notes: (P)Aa1; -- EUR28 million Series C notes: (P)A1; -- EUR11.2 million Series D notes: (P)Baa1; and -- EUR7 million Series E notes: (P)Ba1. Moody's provisional ratings address the expected loss posed to investors by the legal final maturity. The rating agency believes that the structure of the TdA Ibercaja 4 notes allows for timely payment of interest and ultimate payment of principal at par, on or before the final legal maturity date and not at any other expected maturity date. The ratings do not address the 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. According to Moody's, this deal benefits from strong features, including: -- the swap agreements, which guarantees 65 bp excess spread; -- a reserve fund that is fully funded upfront to cover a potential shortfall in interest and principal; -- an 18-month artificial write-off mechanism; -- the securing of 100% of loans by residential mortgages; and -- the good performance data on previous Ibercaja deals. However, Moody's notes that the deal also has weaknesses, including: -- the deferral of interest payments on each of Series B, C, D and E increases the expected loss on these subordinated series; and -- pro-rata amortization of the B, C, D and E Series of notes leads to reduced credit enhancement of the senior series in absolute terms. These increased risks were reflected in Moody's Credit Enhancement calculation. The products being securitised are first-lien mortgage loans granted to individuals (all of whom will use these loans to acquire or refurbish properties located in Spain), originated by Ibercaja, which will continue to service them. As of Sept. 14, the provisional portfolio comprised 14,877 loans for a total amount of EUR1,550,004,113. The original weighted average loan-to-value (WALTV) is 74.86%. The current WALTV is 67.72%. The average loan size is EUR104,188. The loans were originated between 1997 and 2006, with a weighted average seasoning of 27.24 months. The pool is concentrated in the Madrid (33%), Aragon (20%) and Catalonia (13%). All the properties on which the mortgage security has been granted are covered by property damage insurance and fire insurance. To hedge the potential mismatch risk derived from the different index reference rates on the assets side and the notes side, or the risk derived from any amendment in the terms of the mortgage agreements, the Fondo will enter into a swap agreement with Ibercaja. Moody's bases its ratings on: -- an evaluation of the underlying portfolio of mortgage loans securing the structure, and -- the transaction's structural protections, which include the subordination, the strength of the cash flows (including the reserve fund) and any excess spread available to cover losses. Moody's issues provisional ratings in advance of the final sale of financial instruments, but these ratings only represent Moody's preliminary credit opinions. Upon a conclusive review of the transaction and associated documentation, the rating agency will endeavor to assign a definitive rating. A definitive rating (if any) may differ from a provisional rating. =========== S W E D E N =========== ARMSTRONG WORLD: Paying US$407 Million to Class 6 Creditors ----------------------------------------------------------- Armstrong World Industries Inc. disclosed the amount of the initial distributions it expects to make to general unsecured creditors under its Chapter 11 plan. Specifically, distributions to holders of allowed unsecured claims falling in Class 6 will commence on Oct. 17, 2006, pursuant to its Court-approved "Fourth Amended Plan of Reorganization, as Modified," dated Feb. 21, 2006. Per US$10,000 of such claims, an initial distribution of 116 Common Shares of reorganized Armstrong World Industries and approximately US$2,435 in cash are expected. The initial distributions exclude approximately US$11 million of cash and 538,000 shares that are reserved from distribution due to disputed unsecured claims in Class 6. A total of 19,418,520 shares and US$407 million of cash will be distributed to creditors in Class 6 under the Plan. Separately, in discharge of all of its present and future asbestos-related personal injury claims, the Company issued under the Plan 36,981,480 Common Shares to the Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust and by Oct. 17, 2006, will distribute to the Trust US$738 million in cash, representing the portion of cash distributions to which the Trust is entitled under the Plan. All present and future asbestos-related personal injury claims must be asserted against, and will be resolved by, the Trust, and such claims may not be asserted against the Company. Under the Plan, payments to unsecured creditors having allowed claims of US$10,000 or less (or who have reduced their claims to US$10,000) began on Oct. 2, 2006. Those creditors receive distributions entirely in cash in an amount equal to approximately 75% of their allowed claims. The cash amount to be distributed to Class 6 creditors and the Trust includes "Available Cash" as defined in the Plan and US$775 million of the cash proceeds expected from US$800 million of term loans that the Company is arranging in lieu of issuing notes under the Plan. These term loans are in addition to a US$300 million revolving credit facility already established, which is currently undrawn and will be available to support the Company's ongoing liquidity needs. The Company also reported that its Common Shares have been approved for listing on the New York Stock Exchange under the ticker symbol "AWI" on Oct. 10, 2006. "We are pleased to return to the New York Stock Exchange, where Armstrong first began trading on July 17, 1935," said F. Nicholas Grasberger III, Armstrong's Senior Vice President and CFO. "This is the renewal of a long and rewarding relationship between Armstrong and the NYSE." "We are pleased to welcome back Armstrong World Industries to our family of NYSE-listed companies, resuming our 70-plus-year partnership with the company," said NYSE Group, Inc. Chief Executive Officer John A. Thain. "We look forward to serving Armstrong World Industries and its shareholders, and providing the company with superior market quality and brand visibility." A full-text copy of the Fourth Amended Plan of Reorganization is available for free at http://ResearchArchives.com/t/s?fb4 Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc. -- http://www.armstrong.com/-- the major operating subsidiary of Armstrong Holdings, Inc., designs, manufactures and sells interior floor coverings and ceiling systems, around the world including Belgium and Sweden. The Company and its debtor-affiliates filed for chapter 11 protection on December 6, 2000 (Bankr. Del. Case No. 00-04469). Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell C. Silberglied, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. The Debtors tapped the Feinberg Group for analysis, evaluation, and treatment of personal injury asbestos claims. Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Houlihan Lokey for financial and investment advice. The Official Committee of Asbestos Personal Injury Claimant hired Ashby & Geddes as counsel. When the Debtors filed for protection from their creditors, they listed US$4,032,200,000 in total assets and US$3,296,900,000 in liabilities. The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003. The District Court Judge Robreno confirmed AWI's Modified Plan on Aug. 14, 2006. The Clerk entered the formal written confirmation order on Aug. 18, 2006. AWI emerged from Chapter 11 protection on Oct. 2, 2006. * * * As reported in the Troubled Company Reporter on Oct. 9, 2006, Standard & Poor's Ratings Services raised its corporate credit rating on Armstrong World Industries Inc. to 'BB' from 'D', following the building products company's emergence from bankruptcy on Oct. 2, 2006. The outlook is stable. The 'BB' senior secured bank loan rating and the '2' recovery rating on Armstrong's proposed US$1.1 billion senior secured bank facility are affirmed. The bank loan rating was assigned on Sept. 28, 2006, based on the assumption that Armstrong would exit bankruptcy as well as satisfy other conditions. ===================== S W I T Z E R L A N D ===================== SIRVA INC: S&P Withdraws and Removes Ratings from Watch Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on SIRVA Inc. and its primary operating subsidiary, SIRVA Worldwide Inc. In addition, all ratings are removed from CreditWatch, where they were placed with negative implications on March 15, 2005. "The rating withdrawal reflects our opinion that as a result of SIRVA's continued delay in filing updated financial statements for both 2005 and 2006, and the likelihood that the company will not be a current filer until the second half of 2007, it lacks adequate financial information to properly determine SIRVA's current credit standing and evaluate creditors' risks," said Standard & Poor's credit analyst Michael Scerbo. Ratings List Ratings Withdrawn, Removed From Creditwatch To From -- ---- SIRVA Inc. Corporate credit rating NR B/Watch Negative/-- SIRVA Worldwide Inc. Corporate credit rating NR B/Watch Negative/-- Senior secured debt NR B/Watch Negative/-- Recovery rating NR 3 SUAL GROUP: Merges with RusAl & Glencore International ------------------------------------------------------ Siberian-Urals Aluminium Company (SUAL), Russky Alyuminiyum (RusAl), and Glencore International AG have signed an agreement to create the "United Company RUSAL," by merging their respective aluminium and alumina assets. As previously reported in the TCR-Europe, the parties signed a non-binding agreement for a EUR23.5 billion merger. The new company will become the world's largest aluminium and alumina producer, employing more than 110,000 people in 17 countries on five continents. The annual volume of production will be approximately four million tons of aluminium and 11 million tons of alumina. The company will account for approximately 12.5% of global aluminium and 16% of global alumina production, respectively. The combined company will own bauxite mining, alumina refinery, aluminium smelting and foil production facilities. Under the terms of the share-for-share deal, EN+ as RUSAL's shareholder will own 66% of the new company, with SUAL's shareholders owning 22% and Glencore 12%, respectively. The parties expect to complete the deal by April 1, 2007, subject to approval by antitrust regulators in Russia and a number of other countries and the consent of other stakeholders through the exercise of their beneficial rights. To manage the process, the companies will create a coordination committee, which will be headed by SUAL representative. By merging their assets, RUSAL, SUAL Group and Glencore International AG are striving to create a true global leader in the aluminium industry. The company will have all the required resources to drive further expansion and diversification of its metals and mining businesses in key international markets. In addition, the merger will deliver significant synergies in areas including management, research and development and manufacturing. Stock Flotation The agreement also calls for the transformation of the new company into a public entity through an initial public offering on the London Stock Exchange within three years from the date of the deal's closing. The shareholders do not view an IPO as a goal in itself, but rather as an instrument to further expand and strengthen the United Company RUSAL's market-leading position in the global aluminium industry. The Board of Directors of the new company will consist of 12 members. Brian Gilbertson, currently SUAL's President, will act as the non-executive chairman. Before the IPO, the Board, in addition to Mr. Gilbertson, will be comprised of six members from RUSAL, two from SUAL, one from Glencore and two independent directors. Alexander Bulygin, currently RUSAL's CEO will serve as CEO of the joint company and will head the Executive Board, the highest governing body of the new company. The United Company RUSAL will take on all of the obligations that the merged companies and assets have to all stakeholders, as well as social obligations, cooperation with local communities, the support and development of the regions where they work. In addition, the new company will preserve the whole portfolio of investment projects that were developed by the companies independently before the merger. This includes the programs to modernize and develop existing production facilities. "This transaction is a logical step in our strategy of establishing the world's leading aluminium company," RUSAL Chairman Oleg Deripaska said. "The combination of RUSAL, SUAL and Glencore's alumina assets transforms the new group into a truly global company. The combined company will have greater financial, technical, research and development, network and marketing resources. The transactions have a compelling industrial logic and deliver significant synergies for further growth. The new joint company will be highly ambitious and [the] announcement is a staging post towards our future objectives." "This deal gives us a unique opportunity to realize the powerful potential, extensive experience and significant knowledge accumulated by Russian metallurgy," Victor Vekselberg, SUAL Holding Chairman, said. "The new company is a continuation of our joint projects intended to create one of the leaders of the global mining and metallurgical sectors." "We are pleased to join forces with RUSAL and SUAL in this exciting new venture," Ivan Glazenberg, the CEO of Glencore, said. "We believe that this agreement provides us with a unique opportunity to become a part of an integrated and well-balanced aluminium corporation - the new leader in the international market. The transaction will deliver significant synergy benefits that will provide additional value for Glencore's shareholders." The unified company will include RUSAL's assets: -- Bratsk Smelter, -- Krasnoyarsk Smelter, -- Novokuznetsk Smelter, -- Sayanogorsk Aluminium Smelter, -- Achinsk Alumina Plant, -- Nikolaev Alumina Refineries, -- Boksitogorsk Alumina Refineries, -- Friguia Alumina Plant (Guinea), -- Compagnie des Bauxites de Kindia (Guinea), -- Bauxite Company of Guyana, -- a stake in the Queensland Alumina Refinery (Australia), -- a stake in ARMENAL, -- a stake in SAYANAL, and -- a cathode plant in China. SUAL Group will contribute: -- Irkutsk Smelter, -- Ural Smelter, -- Kandalaksha Smelter, -- Bogoslovsky Smelter, -- Nadvoitsy Smelter, -- Volgograd Smelter, -- Volkhov Aluminium Smelter, -- Zaporozhye Aluminium Combine, -- Pikalevo Alumina Refinery, -- SUBR, -- Ural Foil, -- Irkutsk Silicon, -- Ural Silicon, and -- Irkutsk Powder Metallurgy. Glencore International AG will contribute: -- Aughinish in Ireland, -- Windalco in Jamaica, -- Alpart in Jamaica, and -- Eurallumina in Italy, -- Kubikenborg Aluminium Smelter in Sweden. About Glencore Headquartered in Baar, Switzerland, Glencore International AG -- http://www.glencore.com/-- engages in the smelting, refining, mining, processing, purchasing, selling and marketing of metals and minerals, energy products and agricultural products. Glencore operates on a global scale, marketing physical commodities produced in its industrial assets or purchased from third parties to industrial consumers, such as those in the automotive, steel, power generation, oil and food processing industries. Energy products and commodities are marketed and coordinated primarily in Glencore's headquarters in Baar, Switzerland and through the offices of its subsidiaries in London, Stamford and Singapore. 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. =========== T U R K E Y =========== ANADOLUBANK A.S.: Obtains US$160 Million Syndicated Loan -------------------------------------------------------- Anadolubank A.S. obtained a US$160 million syndicated loan provided by 30 foreign banks, Reporter.gr reports. According to the report, the bank lenders included American Express Bank GmbH, Commerzbank Aktiengesellschaft, Deutsche Bank AG, London Branch, Finansbank (Holland) N.V., Standard Bank Plc, Standard Chartered Bank, Unicredit Group and Wachovia Bank, N.A. Headquartered in Turkey, Anadolubank A.S. -- http://www.anadolubank.com.tr/-- is majority-owned by Habas, a major producer and exporter of long steel and Turkey's dominant manufacturer of industrial and medical gases. It is a medium- sized bank focusing on corporate and commercial banking and foreign-trade finance, primarily providing services to medium- sized exporters. It has a securities brokerage, leasing and an offshore subsidiary in Northern Cyprus. Anadolubank, which started its banking activities in 1997 within three branches, has managed to increase the number of its branches to 49 as of 2004, and today offers services to its clients through 950 personnel. * * * As reported in TCR-Europe on July 10, Fitch Ratings affirmed Anadolubank's ratings at foreign and local currency Issuer Default B+, National Long-term BBB+ and Short-term foreign and local currency B, Individual D, and Support 4. The Outlook is Stable. ============= U K R A I N E ============= AGROHIM: Hmelnitskij Court Names Viktor Matushak as Liquidator -------------------------------------------------------------- The Economic Court of Hmelnitskij Region appointed Viktor Matushak as Liquidator/Insolvency Manager for OJSC Agrohim (code EDRPOU 05491439). He can be reached at: Viktor Matushak Grigorij Skovoroda Str. 14/151 29000 Hmelnitskij Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 15. The case is docketed under Case No. 3/176-B. The Economic Court of Hmelnitskij Region is located at: Nezalezhnosti Square 1 29000 Hmelnitskij Region Ukraine The Debtor can be reached at: OJSC Agrohim Skibnevo Hmelnitskij District Hmelnitskij Region Ukraine AVANGARD: Court Names Vasil Glebov as Insolvency Manager -------------------------------------------------------- The Economic Court of Vinnitsya Region appointed Vasil Glebov as Liquidator/Insolvency Manager for Agricultural LLC Avangard. The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 29. The case is docketed under Case No. 5/196-06. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: Agricultural LLC Avangard 60-richya Str. 21 Veliki Krushlintsi Vinnitsya District 23243 Vinnitsya Region Ukraine CENTRAL: Creditors Must File Claims by October 14 ------------------------------------------------- Creditors of LLC Production-Trade Firm Central (code EDRPOU 14227776) have until Oct. 14 to submit written proofs of claim to: Gorbach Sergij, Liquidator/Insolvency Manager a/b 45 08720 Kyiv Region Ukraine The Economic Court of Chernigiv Region commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 23. The case is docketed under Case No. 4/229 b. The Economic Court of Chernigiv Region is located at: Miru Avenue 20 14000 Chernigiv Region Ukraine The Debtor can be reached at: LLC Production-Trade Firm Central 50 rokiv SRSR Str. 7-a Chernigiv Region Ukraine INTERHIM: Creditors Must File Claims by October 14 -------------------------------------------------- Creditors of LLC Interhim (code EDRPOU 32255578) have until Oct. 14 to submit written proofs of claim to: R. Breus, Temporary Insolvency Manager Novoprudna Str. 4/70 61018 Harkiv Region Ukraine The Economic Court of Harkiv Region commenced bankruptcy supervision procedure on LLC Interhim (code EDRPOU 32255578) on Aug. 28. The case is docketed under Case No. B-48/89-06. The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor can be reached at: LLC Interhim Artema Str. 17 61002 Harkiv Region Ukraine RENAISSANCE CAPITAL: Fitch Assigns Issuer Default Rating at BB- --------------------------------------------------------------- Fitch Ratings affirmed Russia-based Renaissance Capital Holdings Limited's ratings at Issuer Default BB- with Stable Outlook, Short-term B, Individual C/D, and Support 5. The ratings of its subsidiary, Renaissance U.K. Holdings Limited are affirmed at Issuer Default BB- with Stable Outlook, Short- term B, Individual C/D, and Support 3. At the same time, Fitch has assigned an expected Long-term rating of BB- to the senior unsecured notes that are to be issued by Renaissance Securities Trading Limited, under the unconditional and irrevocable guarantee of Renaissance Capital and under Renaissance Capital's US$1 billion euro medium-term note Program. The final rating is contingent upon receipt of final documentation conforming materially to information already received. Renaissance Capital is a holding company and its ratings reflect the group's good investment-banking franchise in Russia, its strong profitability, its moderate leverage, its experienced management team and its good risk management. However, they also take into account the group's reliance on the high risk profile markets of Russia and, to a lesser extent, Ukraine for its business, which will make for volatile revenues and earnings over the long-term, as well as a complex group structure. The ratings of RUKHL reflect Fitch's view that there would be a strong propensity of RCHL to provide support for RUKHL, and the high level of integration between the two businesses. Upward pressure on Renaissance's Issuer Default rating and on RUKHL's Issuer Default rating via support, is likely to be limited given the group's sole focus on Russia and Ukraine and its complex group structure. Downward pressure could result from a material downturn in investor sentiment towards Russia, significant credit or market losses, or a material increase in the group's leverage or risk appetite. Renaissance's performance has been very strong and its performance outlook is positive while current conditions persist. However, its primary focus on Russia makes both it and RUKHL vulnerable to a sharp, prolonged downturn in investor confidence in Russia. Efficiency and cost flexibility are relatively strong. Revenue diversification is improving by product, if not by geography. Management is experienced and consistently being upgraded both in the front and back offices and at the executive level. The risk management function is good, but market risk is still considered by Fitch to be high, although proprietary trading is not a major activity. Operational risk arises from the risk of trade processing errors, trader misconduct and IT systems failure. An event that causes a serious blow to Renaissance Capital's reputation could quickly affect the group. Renaissance Capital's biggest asset is its staff. A departure of key managers or staff would be a substantial threat. Some mitigation is provided by the equity participation of around 100 senior managers. Liquidity is closely controlled and satisfactory, but asset liquidity is susceptible to volatility. Leverage has been increasing but remains lower than at the global investment banks and moderate. The Renaissance Capital group was founded in 1995 and is now a leading Russian and Ukrainian investment bank with the holding company located in Bermuda. RUKHL was created in 2000 in the U.K. for the group's trading operations with non-CIS clients. SILGOSPTEHNIKA: Court Commences Bankruptcy Supervision ------------------------------------------------------ The Economic Court of Ivano-Frankivsk Region commenced bankruptcy supervision procedure on OJSC Silgosptehnika (code EDRPOU 03743641). The case is docketed under Case No. B-16/266. The Temporary Insolvency Manager is: Yurij Gorodchuk Promislovij Lane 6 Tlumach 78000 Ivano-Frankivsk Region Ukraine The Economic Court of Ivano-Frankivsk Region is located at: Shevchenko Str. 16a 76000 Ivano-Frankivsk Region Ukraine The Debtor can be reached at: OJSC Silgosptehnika S. Visochana Str. 11 Gorodenka 78100 Ivano-Frankivsk Region Ukraine TRADE-SECURITIES: Court Names Maxim Vdovin as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Maxim Vdovin as Liquidator/Insolvency Manager for LLC Trade-Securities (code EDRPOU 32007866). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 8. The case is docketed under Case No. B 40/104/06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Trade-Securities Chernishevskij Str. 1-A 49000 Dnipropetrovsk Region Ukraine ZHOVTEN: Court Names Nataliya Levchenko as Insolvency Manager ------------------------------------------------------------- The Economic Court of Cherkassy Region appointed Nataliya Levchenko as Liquidator/Insolvency Manager for Agricultural LLC Zhovten (code EDRPOU 03792533). She can be reached at: Nataliya Levchenko Tobilevich Lane 9/1 18023 Cherkassy Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 27. The case is docketed under Case No. 01/3747. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: Agricultural LLC Zhovten Nova Greblya Zhashkivski District 19226 Cherkassy Region Ukraine =========================== U N I T E D K I N G D O M =========================== ABITIBI-CONSOLIDATED: Poor Market Conditions Spur Mill Closures --------------------------------------------------------------- Around 700 workers at Abitibi-Consolidated Inc. are set to lose their jobs as the Canadian forestry company closes four of its paper mills on Oct. 16, The Toronto Star reports. Yves Laflamme, Abitibi-Consolidated vice president, said in a report from The Star that weakening market conditions for lumber coupled with rising productions costs led to the closure decisions. CBC News relates that the four mills slated for closure are located in the regions of Abitibi-Temiscamingue, Lac Saint-Jean and the North Shore. In August, Abitibi-Consolidated disclosed the suspension of quarterly dividend payments as part of its efforts to reduce debt starting in 2007 as well as provide liquidity and improve profitability. Abitibi-Consolidated reported a US$48 million operating profit for the second quarter of 2006, compared with an operating profit of US$57 million for the same period in the prior year. The Company attributed lower operating profits in the 2006- second quarter to the strength of the Canadian dollar, lower prices in the wood products segment and higher cost of products sold in the commercial printing papers segment. According to Abitibi-Consolidated, the 10.8% appreciation of the Canadian dollar compared to the US dollar, is estimated to have had an unfavorable impact of US$83 million on the quarterly operating results. About Abitibi-Consolidated Abitibi-Consolidated, Inc. -- http://www.abitibiconsolidated.com/-- produces newsprint and commercial printing paper products from its 45 operating facilities. The Company also recycler newspapers and magazines, diverting approximately 1.9 million tonnes of waste paper from landfills annually. The Company supplies customers in approximately 70 countries including Canada, the United States and the United Kingdom. * * * Moody's Investors Service affirmed its B1 Corporate Family Rating for Abitibi-Consolidated, Inc., in connection with its implementation of the new Probability-of-Default and Loss-Given- Default rating methodology for the North American Forest Products sector. Moody's placed LGD4 Loss-Given-Default ratings to 15 of the Company's loan and bond debt obligations, suggesting a debt holders will experience a 57% loss in the event of a default. As reported in the Troubled Company Reporter on May 1, 2006, Dominion Bond Rating Service confirmed the ratings of Abitibi- Consolidated Inc., and Abitibi-Consolidated Company of Canada at BB (low). ACCESS DEVICES: Brings In Smith & Williamson as Administrators -------------------------------------------------------------- Anthony Murphy, Roger Tulloch and Robert Horton of Smith & Williamson Ltd. were appointed joint administrators of Access Devices Digital Ltd. (Company Number 4801471) on Sept. 28. Smith & Williamson -- http://www.smith.williamson.co.uk/-- is an independent professional and financial services group employing over 1,200 people. It is the leading provider of investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. Access Devices Digital Ltd. can be reached at: 6th Floor 58 Uxbridge Road London W5 2ST United Kingdom Tel: 020 8799 4480 Fax: 020 8799 4481 ADASOLVE LIMITED: Paul Appleton Leads Liquidation Procedure ----------------------------------------------------------- Paul Appleton of David Rubin & Partners was appointed Liquidator of Adasolve Limited on Sept. 27 for the creditors' voluntary winding-up procedure. The company can be reached at: Adasolve Limited 18 Bellevue Road West Cross Swansea West Glamorgan SA3 5QB United Kingdom Tel: 01792 526 303 ANDREW KELLARD: Taps Smith & Williamson to Administer Assets ------------------------------------------------------------ Anthony Murphy and Robert Horton of Smith & Williamson Ltd. were appointed joint administrators of Andrew Kellard Associates Ltd. (Company Number 05134138) on Sept. 25. Smith & Williamson -- http://www.smith.williamson.co.uk/-- is an independent professional and financial services group employing over 1,200 people. It is the leading provider of investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. Headquartered in Surrey, United Kingdom, Kellard Andrew Associates Ltd. -- http://www.thinkaka.com/-- is engaged in marketing and design, from print-based projects- including corporate brochures, magazines, advertising, direct mail and incentive schemes- to e-commerce campaigns. ASL SYSTEMS: Creditors' Meeting Slated for October 13 ----------------------------------------------------- Creditors of ASL Systems Limited (Company Number 00908900) will meet at 11:00 a.m. on Oct. 13 at: Tenon House Ferryboat Lane Sunderland SR5 3JN United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Oct. 12 at: Ian William Kings Administrator Tenon Recovery Tenon House Ferryboat Lane Sunderland SR5 3JN United Kingdom Tel: 0191 511 5000 Fax: 0191 511 5001 Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. B & B INTERIOR: Appoints C. B. Barrett as Liquidator ---------------------------------------------------- C. B. Barrett of Unity Business Services LLP was appointed Liquidator of B & B Interior Contracts Limited on Sept. 27 for the creditors' voluntary winding-up procedure. The company can be reached at: B & B Interior Contracts Limited Bridge House Harrow Road Bolton Lancashire BL1 4NH United Kingdom Tel: 01204 467700 B & M INSURANCE: Creditors Confirm Liquidator's Appointment ----------------------------------------------------------- Creditors of B & M Insurance Brokers Limited confirmed on Sept. 11 the appointment of David A. Butler of Nunn Hayward as the company's Liquidator. The company can be reached at: B & M Insurance Brokers Limited 38 High Street Tring Hertfordshire HP235AA United Kingdom Tel: 01442 890 033 Fax: 01442 891 047 BEARINGPOINT INC: Moody's Cuts Ratings on US$450-Mln Bonds to B3 ---------------------------------------------------------------- Moody's Investors Service downgraded the ratings of BearingPoint Inc. and has placed the company's ratings on review for further possible downgrade. The rating actions reflect the company's YTD September 2006 cash outflows, which have largely been driven by higher than expected finance and accounting systems costs, delays in filing its annual financial reports with the SEC, and increased Q2 2006 voluntary employee turnover. The review will focus on the company's prospects for reducing costs to operate its accounting and financial systems, prospects for becoming current on the filing of its SEC periodic reports, reducing its voluntary turnover, and generating free cash flow. As part of the review, Moody's will also assess the company's prospects for either achieving bondholder consents or appealing litigation (or disputing damage claims) stemming from a September 2006 New York State Supreme Court Order, which grants summary judgment to plaintiffs and finds the company in breach under the indenture governing the company's 2.75% Series B convertible subordinated debentures. On Sept. 26, the company announced it has further delayed the filing of its FY 2005 10-K as a direct consequence of the September 2006 Order and does not expect to be current on the filing of its SEC financial statements until the spring of 2007 at the earliest. The company also announced that it expects 2006 cash will be negatively impacted by unanticipated, unusual, and ongoing costs to operate its accounting and financial systems and by unanticipated and unusual costs to retain its employees. Ratings downgraded and placed on review for further possible downgrade: * Corporate Family Rating --downgraded to B2 from B1 * US$250 million series A subordinated convertible bonds due 2024 --downgraded to B3 from B2 * US$200 million series B subordinated convertible bonds due 2024 --downgraded to B3 from B2 Headquartered in McLean, Virginia, BearingPoint Inc. is an I/T systems integrator, consultancy, and managed services provider for commercial and governmental entities worldwide. In Europe, the company maintains operations in 15 countries including Austria, France, Germany, the Netherlands, Switzerland, and the United Kingdom. BEARINGPOINT INC: S&P Holds Corp. Credit & Debt Ratings on Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services' ratings on McLean, Virginia- based BearingPoint Inc., remained on CreditWatch with developing implications, where they were placed on March 18, 2005, reflecting concerns regarding continued financial reporting problems and a recently announced order entered by the New York State Supreme Court for New York County finding BearingPoint in default under the indenture governing the company's 2.75% Series B Convertible Subordinated Debentures because of a failure to file timely regulatory reports. "This court ruling also introduces the possibility that holders of BearingPoint's other indebtedness could pursue a similar notice of default or acceleration," said Standard & Poor's credit analyst Philip Schrank. Acceleration of the $200 million Series B debentures has not been sought by the trustee, nor ordered by the court and the company had almost $300 million in cash at Sept. 25, 2006. While indemnity agreements relating to surety bonds and certain other customer contracts could also be impacted, no other class of bond holder has yet filed a notice of default. Furthermore, senior debt holders can exercise blocking rights on payments, including acceleration, under certain terms of all series of BearingPoint's subordinated debentures. Although the company intends to appeal this ruling, and seek waivers from a majority of each series of debentures, barring either of these outcomes, BearingPoint would also face the possibility that its debt obligations would be classified as current, if it were to file its 10-k currently. Standard & Poor's will continue to monitor BearingPoint's progress toward completing its delayed filings and its discussions with representatives of the holders of all of its debentures and its banks. If progress is not made over the next few weeks in coming to agreements with all creditor groups regarding waivers and forbearance, the ratings will be lowered to the 'CCC' category. Conversely, the ratings could be reviewed for a possible upgrade following the resolution of all financial reporting issues and agreements with all the creditors. Ratings on CreditWatch: BearingPoint Inc.: * Corporate credit rating: B-/Watch Dev./-- * Senior secured: B-/Watch Dev. * Senior unsecured: B-/Watch Dev. * Subordinated debt: CCC+/Watch Dev. CAFE BLU: Creditors' Meeting Slated for October 18 -------------------------------------------------- Creditors of Cafe Blu Limited (Company Number 4467561) will meet at noon on Oct. 18 at: Benedict Mackenzie LLP 62 Wilson Street London EC2A 2BU United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Oct. 17 at: Anthony Peter McQueen Benedict Joint Administrator Benedict Mackenzie LLP 3-4 Mulgrave Court Mulgrave Road Sutton Surrey SM2 6LF United Kingdom Tel: 020 7247 1174 Fax: 020 7247 3494 COLT TELECOM: Receives Requisite Consents from Noteholders ---------------------------------------------------------- COLT Telecom Group Limited (formerly COLT Telecom Group plc) has received requisite consents in respect of its 7.625% Notes due 2009. COLT Telecom Group S.A. and COLT Telecom Group Limited disclosed that, as of 5:00 p.m., London time, Oct. 9, holders representing a majority in aggregate principal amount of the Notes have validly delivered their consents in connection with the consent solicitation announced on Sept. 25, the terms of which are set out more fully in the Consent Solicitation Statement dated Sept. 25. As the requisite consents have been given, the Issuer and the Trustee will shortly execute a supplemental indenture to the Indenture. The date for payment of the consent fee referred to in the announcement dated Sept. 25 is Oct. 16. On that date, the Issuer will pay, or cause to be paid, to all holders of the Notes who have delivered a valid consent on or before the Expiration Date, and in accordance with the Statement, the relevant consent fee. Deutsche Bank AG, London Branch was the sole solicitation agent in relation to the Solicitation. Headquartered in London, United Kingdom, Colt Telecom -- http://www.colt.net/-- offers business communication services across Europe. Through its fiber optic network, the Company offers voice, bandwidth, e-business and managed network services to finance, industry and service sector customers and governments. * * * As reported in TCR-Europe on Aug. 8, Standard & Poor's Ratings Services raised its long-term corporate credit rating on European business telecommunications provider COLT Telecom Group Ltd. to 'B' from 'B-' and removed the ratings from CreditWatch, where they were placed on Feb. 24. S&P said the outlook is stable. The issue ratings on COLT's existing senior unsecured notes were also raised to 'B' from 'B-' and removed from CreditWatch. At the same time, Standard & Poor's assigned its 'B' long-term corporate credit rating to COLT Telecom Group S.A., the new ultimate parent of COLT. S&P said the outlook is stable. As reported in TCR-Europe on July 28, Moody's Investors Service upgraded the rating of COLT Telecom Group Ltd.'s senior notes to B2 from B3 following the successful completion of the equity offering by COLT Telecom Group S.A. Concurrently Moody's assigned a B2 corporate family rating to COLT S.A. and removed the B3 corporate family rating of COLT Telecom Group Ltd. (formerly COLT Telecom Group plc). This rating action concludes the review initiated on May 16. Moody's said the ratings outlook is stable. The B2 corporate family rating reflects both the strengthened financial profile that has resulted from the successful completion of the company's recent equity offering as well as the improvements in operational performance demonstrated by the group over the past eighteen months. CORUS GROUP: Tata Steel to Launch a GBP5-Bln Takeover Bid --------------------------------------------------------- India's Tata Steel is set to launch a GBP5 billion takeover bid for Corus Group PLC, BBC News reports. According to The Times, speculations on the possible takeover bid rose after Tata told the Stock Exchange that it was considering a number of takeover opportunities, including Corus. It is also believed that Tata may choose Corus's option of a joint venture rather than a full takeover. Tata had prepared a GBP3.5 billion financing deal to make the acquisition, BBC cited Sunday Telegraph. Corus did not comment on Tata's statement of interest, but the Takeover Panel has put the company in an offer period because of the specified interest by the Indian company. Corus is expected to make a definitive statement if it receives a formal offer by Tata. About Tata Steel Headquartered in Mumbai, India, Tata Steel -- http://www.tatasteel.com/-- is Asia's first and India's largest private sector steel company. Tata Steel is among the lowest cost producers of steel in the world and one of the few select steel companies in the world that is EVA+ (Economic Value Added). It is a small steel producer by global standards, but has the backing of the giant Tata Group, one of India's largest companies with interests as diverse as carmaking, communications, tea and oil. About Corus Group Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. The group suffered six years ago from the crisis in British manufacturing, which prompted it to shake up management, close plants, cut jobs, and sell assets to lower debt. Its debt was thought to stand at GBP1.6 billion in 2002. After posting a net loss of GBP458 million in 2003, it embarked on a restructuring program, signed a new EUR1.2 billion banking facility, and issued GBP307 million worth of shares. It returned to operating profit in the first quarter of 2004. The recent recovery of steel prices and the strength of the euro are expected to help it achieve relatively strong earnings. * * * As reported by TCR-Europe on June 21, Standard & Poor's removed Corus Group PLC's CreditWatch and raised its long-term corporate credit rating to 'BB' from 'BB-', reflecting the group's improved financial risk profile. S&P said the Outlook is stable. Fitch Ratings changed Corus Group PLC's Outlook to Positive from Stable and affirmed the Issuer Default Rating at BB- following the company's announcement of its 2005 results and plan to dispose its aluminium business for EUR826 million. Corus' affirmed debt instruments include: a) Corus Group PLC EUR800 mln 7.5% senior notes B+; b) Corus Group PLC EUR307 mln 3.0% convertible bonds B+; c) Corus Finance PLC GBP200 mln 6.75% guaranteed bonds B+; and d) Corus Finance PLC EUR20 mln 5.375% guaranteed bonds B+. As reported in the TCR-Europe on May 11, Moody's Investors Service upgraded Corus Group plc's corporate family rating to Ba2, upgraded its senior unsecured and supported unsecured obligations to B1 and raised senior secured bank facility to Ba1. DISABILITY ACCESS: Names Liquidators from Poppleton & Appleby ------------------------------------------------------------- Stephen James Wainwright and Stephen Lord of Poppleton & Appleby were appointed Liquidators of The Disability Access Service Limited on Sept. 27 for the creditors' voluntary winding-up procedure. The company can be reached at: The Disability Access Service Limited Charlotte House Queens Dock Commercial Centre Norfolk Street Liverpool Merseyside L1 0BG United Kingdom Tel: 0870 757 8487 FIBRES WORLDWIDE: Appoints Deloitte & Touche as Administrators -------------------------------------------------------------- Ian Brown, William Kenneth Dawson and Lee Antony Manning of Deloitte & Touche LLP were appointed joint administrators of Fibres Worldwide Ltd. (Company Number 05543624) on Sept. 26. Headquartered in London, Deloitte & Touche LLP -- http://www.deloitte.com/-- is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. It provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. Headquartered in Grimsby, United Kingdom, Fibres Worldwide Ltd. manufactures man-made fibers. GEMFLEX ENGINEERING: Brings In Begbies Traynor as Administrators ---------------------------------------------------------------- Peter A. Blair and Richard A. B. Saville of Begbies Traynor were appointed joint administrators of Gemflex Engineering Ltd. (Company Number 02582669) on Sept. 26. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Ilkeston, United Kingdom, Gemflex Engineering Ltd. manufactures fabricated metal products. GENERAL MOTORS: S&P Keeps Low-B Ratings on Watch Negative --------------------------------------------------------- Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3' short-term corporate credit ratings on General Motors Corp. would remain on CreditWatch with negative implications, where they were placed March 29. The CreditWatch update follows the announcement that GM, Nissan Motor Co. Ltd., and Renault S.A. are no longer in talks to explore a global automotive partnership. Standard & Poor's had not factored any potential benefits of an alliance into GM's ratings. "Although such an alliance might have brought some cost savings in manufacturing, purchasing, or marketing," said Standard & Poor's credit analyst Robert Schulz, "any benefits would likely have taken a long time to materialize and would have been accompanied by substantial execution risks, given the complexity involved." GM's ratings are likely to remain on CreditWatch until we are able to ascertain the financial effect on GM of its exposure to bankrupt former unit Delphi Corp., and until the sale of a 51% stake in GMAC LLC (formerly General Motors Acceptance Corp.) to an investor consortium is at or near completion. We believe the Delphi situation will be resolved first, although resolution is not required for the GMAC sale. Beyond these events, Standard & Poor's will focus on GM's progress in improving its troubled North American automotive operations. The possibility that Kirk Kerkorian's Tracinda Corp. will increase its ownership stake in GM to about 12% from 9.9% could increase pressure on management to shift from existing strategies. However, given Tracinda's existing board representation, the potential effect of a higher stake is not likely to be a significant factor in the CreditWatch resolution. GM is suffering from meaningful market share erosion in the U.S. and marked deterioration of its product mix, most notably a precipitous weakening of sales of its midsize and large SUVs. These negative trends have vividly exposed the extent of capacity and cost challenges that need to be addressed in North America. GM is undertaking yet another significant round of cost reductions, production capacity cuts, and workforce rationalization. Yet, sustainable improvements in North America will also require success with product acceptance and pricing, in addition to cost reductions. Some--but not all--new products launched in 2006 are selling well. Prospects for GM's important late 2006 launch of a new full-size pickup truck are uncertain, given softness and competition in that segment. Executed cost reductions include the negotiation of an agreement with the United Auto Workers providing for reduced health care costs. Yet, this agreement will only partly address the competitive disadvantage posed by GM's health care burden. Moreover, cash savings will not be realized until 2008 because GM agreed to make a total of US$2 billion in contributions to a newly formed VEBA trust during 2006 and 2007. GM is also substantially reducing headcount through an accelerated attrition plan under which more than 34,000 hourly employees have agreed to leave. Although up to 5,000 Delphi employees can return to GM, GM will reach its 2008 goal of reducing 30,000 manufacturing jobs about two years early. GM took a net after-tax charge in the second quarter of about US$3.7 billion related to the attrition program. The most pressing near-term issue remains GM's exposure to Delphi, its former unit and important supplier. Hearings on Delphi's request to reject its labor contracts and unprofitable supply contracts with GM have been postponed a number of times during 2006, although we expect negotiations between Delphi, the United Auto Workers, and GM to continue. The court has scheduled a conference for Oct. 19. Standard & Poor's expects a resolution that does not entail a Delphi strike, partly because Delphi's attrition program was also very successful, but also because a strike would be catastrophic for GM. Delphi's much lower headcount is likely to be an important factor in resolving GM's exposure to the Delphi situation. Deterioration of GM's credit quality has limited GMAC's funding capabilities, and GM has agreed to sell a 51% ownership stake in GMAC to a consortium headed by unrated Cerberus Capital Management. If the sale is completed, net cash proceeds to GM at closing are expected to be about US$8 billion, which represents about US$10 billion received by closing less amounts reinvested in GMAC as part of the transaction. These proceeds would bolster GM's liquidity significantly. Several key closing conditions have recently been satisfied. However, the consortium is now considering how to deal with an unexpected six-month FDIC moratorium on approving ownership changes affecting industrial loan companies to avoid delaying the targeted closing date of late 2006. GENIUS CREATIVE: Taps Liquidators from Begbies Traynor ------------------------------------------------------ Michael Edward George Saville and Rob Sadler of Begbies Traynor were appointed Joint Liquidators of Genius Creative Public Relations Limited on Sept. 26 for the creditors' voluntary winding-up procedure. The company can be reached at: Genius Creative Public Relations Limited Queen Square Leeds West Yorkshire LS2 8AJ United Kingdom Tel: 077 6604 6479 GROUTAGE & INGRAM: Claims Filing Period Ends Nov. 3 --------------------------------------------------- Creditors of Groutage & Ingram Limited have until Nov. 3 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 C. H. I. Moore at: K. J. Watkin & Co. Emerald House 20-22 Anchor Road Aldridge Walsall United Kingdom Headquartered in Birmingham, England, Groutage & Ingram Limited manufactures pre-cast concrete products. HUIA LIMITED: Taps Kroll to Administer Assets --------------------------------------------- Fraser J. Gray and Andrew J. Pepper of Kroll Ltd. were appointed joint administrators of Huia Ltd. (Company Number 05194868) on Sept. 26. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Headquartered in London, United Kingdom, Huia Ltd. buys and sells own real estate. IMMERSIVE MEDIA: Hires Liquidator from David Horner & Co. --------------------------------------------------------- David Anthony Horner of David Horner & Co. was appointed Liquidator of Immersive Media Spaces Limited on Sept. 26 for the creditors' voluntary winding-up procedure. Headquartered in York, England, Immersive Media Spaces Limited -- http://www.immersivemediaspaces.co.uk/-- provides bespoke and off-the-shelf accessible interactive technology that turns movement to music, sound, light, video and special effects. The company also offers advice training and customer specific research and development services. INDUSTRIAL PYROMETER: Creditors' Meeting Slated for Oct. 18 ----------------------------------------------------------- Creditors of The Industrial Pyrometer Company Limited (Company Number 00432152) will meet at 10:30 a.m. on Oct. 18 at: Irwin & Company Station House Midland Drive Sutton Coldfield West Midlands B72 1TU United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Oct. 17 at: G. Irwin Administrator Irwin & Company Station House Midland Drive Sutton Coldfield Birmingham West Midlands B72 1TU United Kingdom Tel: 08700 111812 Fax: 08700 111813 E-mail: mail@irwinuk.net INFOCELL TELECOM: Hires Administrators from Chantrey Vellacott -------------------------------------------------------------- William John Turner and Kevin Anthony Murphy of Chantrey Vellacott DFK LLP were appointed joint administrators of Infocell Telecom Ltd. (Company Number 03841706) on Sept. 26. Headquartered in Hove, East Sussex, Chantrey Vellacott DFK -- http://www.cvdfk.com/-- is one of the oldest firms of chartered accountants in the United Kingdom. It provides accounting, taxation and related advisory services. Infocell Telecom Ltd. can be reached at: Mint House Copthorne Common Copthorne Crawley West Sussex RH10 3LF United Kingdom Tel: 01342 719 196 JSB SECURITIES: Claims Filing Period Ends Oct. 22 ------------------------------------------------- Creditors of JSB Securities (Liverpool) Limited have until Oct. 22 to send their names and addresses, and prove their debts or claims in writing to appointed Liquidator Gerard Keith Rooney at: Rooney Associates 2nd Floor 19 Castle Street Liverpool L2 48X United Kingdom The company can be reached at: JSB Securities (Liverpool) Limited 66 Ennerdale Drive Liverpool Merseyside L21 5JB United Kingdom Tel: 0151 284 7814 KEYHOLDERS LIMITED: Creditors' Meeting Slated for October 17 ------------------------------------------------------------ Creditors of Keyholders (U.K.) Limited (Company Number 04411397) will meet at 10:30 a.m. on Oct. 17 at: The Institute of Chartered Accountants Chartered Accountants Hall Moorgate Place London EC2P 2BJ United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Oct. 16 at: David Norman Kaye Administrator Crawfords Stanton House 41 Blackfriars Road Salford Manchester M3 7DB United Kingdom Tel: 0161 828 1000 Fax: 0161 832 1829 KOOKABURRA HOLDINGS: Brings In Kroll to Administer Assets --------------------------------------------------------- Fraser J. Gray and Andrew J. Pepper of Kroll Ltd. were appointed joint administrators of Kookaburra Holdings Ltd. (Company Number 05194809) on Sept. 26. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Kookaburra Holdings Ltd. can be reached at: 32 Carnaby Street City of Westminster London W1F 7DN United Kingdom LOBLITE LIMITED: Appoints PKF as Joint Administrators ----------------------------------------------------- William Duncan and Ian Schofield of PKF (U.K.) LLP were appointed joint administrators of Loblite Ltd. (Company Number 355115) and Loblite Electric Ltd. (Company Number 3141519) on Sept. 25. PKF (U.K.) LLP -- http://www.pkf.co.uk-- is one of the U.K.'s leading firms of accountants and business advisers, which specializes in advising the management of developing private and public businesses. Its principal services include assurance & advisory; corporate finance; corporate recovery & insolvency; forensic; management consultancy and taxation. It also offers financial services through its FSA authorized company, PKF Financial Planning Limited. Loblite Ltd. and Loblite Electric Ltd. can be reached at: Third Avenue Team Valley Trading Estate Gateshead Tyne and Wear NE1 10QQ United Kingdom Tel: 0191 487 8103 Fax: 0191 482 0270 MEGA BUILDING: Calls In Liquidators from Rothman Pantall -------------------------------------------------------- Robert Derek Smailes and Stephen Blandford Ryman of Rothman Pantall & Co. were appointed Joint Liquidators of Mega Building Contracts Limited on Sept. 26 for the creditors' voluntary winding-up procedure proceeding. The company can be reached at: Mega Building Contracts Limited 20 Craven Ter Lancaster Gate London W2 3QH United Kingdom Business Directory 020 7262 3322 MMV PROJECTS: Appoints Peter O'Hara to Liquidate Assets ------------------------------------------------------- Peter O'Hara of O'Hara & Co. was appointed Liquidator of MMV Projects Limited on Sept. 26 for the creditors' voluntary winding-up proceeding. The company can be reached at: MMV Projects Limited 6 Hawthorn Croft Lofthouse Wakefield West Yorkshire WF3 3ST United Kingdom Tel: 01924 827 061 PALACE PANELS: Creditors' Meeting Slated for October 12 ------------------------------------------------------- Creditors of Palace Panels Limited (Company Number 04257850) will meet at 11:00 a.m. on Oct. 12 at: Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Oct. 11 at: Carl Stuart Jackson Joint Administrator Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ United Kingdom Tel: 023 8064 6464 Fax: 023 8064 6666 Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. RANK GROUP: Cancels One Million Shares in Buy Back Program ---------------------------------------------------------- The Rank Group Plc purchased 1,000,000 Ordinary shares of 10 pence in the Company for cancellation at an average price of 233.0225 pence per share. About Rank Group Headquartered in London, Rank Group PLC -- http://www.rank.com/ -- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * On March 6, 2006, Moody's Investors Service assigned a Ba2 corporate family rating to The Rank Group Plc and concurrently downgraded the senior unsecured long-term debt ratings of Rank Group Finance Plc (guaranteed by The Rank Group Plc) to Ba2 from Baa3). At the same time, Fitch Ratings downgraded The Rank Group PLC's Long-term Issuer Default rating and Senior Unsecured ratings to BB- from BB+ and removed them from Rating Watch Negative. A Negative Outlook is assigned. The Short-term rating is affirmed at B. The downgrade follows the disposal of its film processing business, Deluxe Film, and confirmation of a return of capital to shareholders announced in conjunction with its 2005 preliminary results. In addition, Standard & Poor's Ratings Services lowered its long- and short-term corporate credit ratings on U.K.-based diversified leisure and entertainment company The Rank Group PLC to 'BB-/B' from 'BBB-/A-3'. S&P said the ou SURREY COLLEGE: Brings In Liquidators from Blades Insolvency ------------------------------------------------------------ Philip Anthony Brooks and Julie Willetts of Blades Insolvency Services were appointed Joint Liquidators of Surrey College Limited on Sept. 27 for the creditors' voluntary winding-up proceeding. The company can be reached at: Surrey College Limited Bonsall Street Long Eaton Nottingham Nottinghamshire NG102AN United Kingdom Tel: 01483 565 887 Fax: 01483 534 777 TANYA KNITWEAR: Taps BWC to Administer Assets --------------------------------------------- Gary Edgar Blackburn and Paul Andrew Whitwam of BWC Business Solutions were appointed joint administrators of Tanya Knitwear Ltd. (Company Number 04806344) on Sept. 26. The administrators can be reached at: BWC Business Solutions 8 Park Place Leeds West Yorkshire LS1 2RU United Kingdom Tel: 0113 243 3434 Fax: 0113 243 5049 E-mail: bwc@bwc-solutions.com Tanya Knitwear Ltd. can be reached at: Ferry Road Fiskerton Lincoln Lincolnshire LN3 4HU United Kingdom Tel: 01522 595 500 UVINE.COM LIMITED: Brings In Administrators from Elwell Watchorn ---------------------------------------------------------------- Graham Stuart Wolloff and John Michael Munn of Elwell Watchorn & Saxton LLP were appointed joint administrators of Uvine.Com Ltd. (Company Number 038855056) on Sept. 26. Elwell Watchorn & Saxton -- http://www.ews-insolvency.co.uk/-- provides insolvency and recovery services. The firm's partners have considerable expertise in all formal areas of insolvency, both corporate and personal and have been offering turnaround advice without the need for formal insolvency. Uvine.Com Ltd. can be reached at: 9 Tanner Street Southwark London SE1 3LE Business Directory Tel: 020 7089 2200 Fax: 020 7518 1556 WEM ELECTRICAL: Taps T. Papanicola to Liquidate Assets ------------------------------------------------------ T. Papanicola of Bond Partners LLP was appointed Liquidator of Wem Electrical Supplies Limited on Sept. 21 for the creditors' voluntary winding-up proceeding. The company can be reached at: Wem Electrical Supplies Limited Unit C6 Wem Industrial Estate Soulton Road Wem Shrewsbury Shropshire SY4 5SD United Kingdom Tel: 01939 236 660 WHITEOAK PACKAGING: Brings In Menzies to Administer Assets ---------------------------------------------------------- Andrew John Duncan and Andrew Gordon Stoneman of Menzies Corporate Restructuring were appointed joint administrators of Whiteoak Packaging Ltd. (Company Number 05651603) on Sept. 25. 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. MRI, which is ranked 8th amongst the leading international accounting associations, achieved global revenues of US$1,800 million in 2003. Whiteoak Packaging Ltd. can be reached at: Freebournes Road Witham Essex CM8 3DA United Kingdom Tel: 01376 512501 WHORTON REEVES: Hires Eileen T. F. Sale to Liquidate Assets ----------------------------------------------------------- Eileen T. F. Sale of Sale Smith & Co. Limited was appointed Liquidator of Whorton Reeves Patternmakers Limited on Sept. 26 for the creditors' voluntary winding-up proceeding. The company can be reached at: Whorton Reeves Patternmakers Limited Silver End Industrial Estate Brettell Lane Brierley Hill West Midlands DY5 3LA United Kingdom Tel: 01384 261 406 * Moody's Reports Low High-Yield Default Rate in Third Quarter -------------------------------------------------------------- Moody's global speculative-grade trailing 12-month default rate ended the third quarter at 1.5%, marking a fresh low in the default rate for speculative-grade corporate issuers in this credit cycle, reports Moody's Investors Service. Prior to September's data, the default rate had been range-bound between 1.6% and 2.1% since May 2005. The third quarter figure is also the fourth lowest level on record since 1985; in only three other months has the default rate been lower (May 1997, March 1995 and April 1995). The global speculative-grade default rate is down from 1.8% in the second quarter and from 1.9% at the start of the year. The latest results of Moody's speculative-grade default rate forecasting model suggest that the default rate may be at or near a low for this credit cycle. Moody's model also indicates that the speculative-grade default rate is likely to rise marginally in the short run. Moody's forecasting model predicts that the global issuer-weighted speculative-grade default rate will rise from its current 1.5% level to 2.6% by the end of September 2007. Moody's model also indicates that the speculative-grade default rate will remain virtually unchanged for the remainder of 2006 at 1.5%. Measured on a dollar volume basis, Moody's global speculative- grade default rate fell more sharply, from 4.0% for the 12-month period ending the second quarter to 2.1% ending the third quarter. The substantial decline is primarily due several very large defaults in September 2005 passing out of the numerator of the default rate, including last year's biggest default, Charter Communications Holdings, LLC, and two U.S. airlines, Delta and Northwest. The current dollar weighted default rate is also significantly down this year's beginning level of 3.8%. At this time of last year, the global dollar-weighted default rate was seen at 3.9%. In the third quarter, a total of five Moody's-rated corporate bond issuers defaulted. The first quarter of 2006 saw three bond defaults while the second quarter experienced six. In the month of September there were two corporate bond defaults. September's defaults include Charter Communications, Inc. (US$450 million) and Premier Entertainment Biloxi LLC (US$160 million). All of the 14 corporate bond defaults so far this year have been U.S.-based issuers except for Global Automotive Logistics S.A.S., which is based in France. By comparison, there were a total of 24 defaults in the first three quarters of 2005, 21 from the U.S., two from Sweden, and one from Brazil. In terms of defaulted volume, a total of US$901 million of bonds were recorded in the third quarter of 2006, down from US$1.4 billion in the second quarter and down from US$1.9 billion in the first quarter. Accompanying the slowing pace in the number of defaults in 2006 has been a fall in the average size of default. The average default size (year-to-date) is roughly US$300 million per issuer, less than half of the US$725 million average size in 2005 and roughly equivalent to the long-run average since 1980. Dana Corp (US$1.6 billion) is the largest default in 2006 so far. Among U.S. speculative-grade issuers, the issuer-weighted default rate finished the third quarter at 1.9%, down from 2.4% ending the previous quarter as well as the prior year. Measured on a dollar volume basis, the default rate among U.S. speculative-grade issuers dropped significantly, from 4.6% for the 12-months ending the second quarter to 2.4% ending the third quarter. At the beginning of 2006, the U.S. speculative-grade dollar-weighted default rate was 4.3%. In Europe, with no additional Moody's-rated defaults in the last four months, both the issuer- and dollar-weighted speculative- grade default rates remained unchanged from the second quarter to the third quarter. The issuer-weighted default rates stayed at 0.5% while the dollar-weighted series remained at 1.1%. A year ago, the issuer- and dollar-weighted European default rate was noticeably higher at 1.6% and 1.4% respectively. In the leveraged loan market, there were no Moody's-rated loan issuer defaults in the third quarter, leaving the year-to- default loan default counts unchanged from the previous quarter of five: four from the U.S. and one from France. For the comparable period in 2005, there were altogether 6 loan defaults, all by U.S. issuers. Defaulted loans total US$1.4 billion thus far in 2006, much lower than the US$4.0 billion year-to-date total for the same period of last year. Default rates among U.S. speculative-grade loan issuers finished at 1.0% for the 12-month period ending the third quarter. The current loan default rate is down from the 1.5% level recorded at the end of the second quarter as well as one year prior. ********* Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$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/ Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. ********* 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, Joy Agravante, and Zora Jayda Zerrudo Sala, 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 * * *