/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061101.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, November 1, 2006, Vol. 7, No. 217 Headlines A U S T R I A AURATA HANDEL: Vienna Court Orders Business Shutdown CHRISTIAN TRAAR: Klagenfurt Court Orders Business Closure GOLFANLAGE SCHLOSS: Creditors to Recover 20% of Claims SARTOR LLC: Claims Registration Ends November 7 SNM PROJEKTBAU: Creditors' Meeting Slated for November 16 B E L G I U M HUNTSMAN INT'L: Moody's Assigns LGD6 Rating on Proposed Notes HUNTSMAN INT'L: S&P Puts B Rating on Proposed Sr. Sub. Notes B U L G A R I A KREMIKOVTZI AD: Moody's Junks 7-Year Sec. Guaranteed Bond Issue F R A N C E VALASSIS COMMUNICATIONS: Moody's Cuts Sr. Debt Ratings to Ba1 G E R M A N Y B K W SCHLOSSEREI: Claims Registration Ends November 5 CONCORDIA BAUTRAGER: Claims Registration Ends November 6 GERRY SPORTS: Claims Registration Ends November 8 MBM INTERNATIONALE: Claims Registration Ends November 9 OEZKAYA IMMOBILIEN: Claims Registration Ends November 7 PHOENIX CAPITAL: Claims Registration Ends November 8 PRISMA BAUTRAGERGESELLSCHAFT: Claims Registration Ends Nov. 8 TALK ABOUT: Claims Registration Ends November 7 TISCHLEREI ROLF: Claims Registration Ends November 6 W. ALSBACH: Claims Registration Ends November 9 WCM AG: Lender to Auction Klockner Shares for Debt Repayment WCM AG: Shuffles Management Board to Avoid Conflict of Interest I T A L Y FIAT SPA: Cherry Automobiles to Supply Gas Engines for China FIAT SPA: Names Alfredo Altavilla as Fiat Powertrain CEO WCM AG: Lender to Auction Klockner Shares for Debt Repayment WCM AG: Shuffles Management Board to Avoid Conflict of Interest K A Z A K H S T A N ALMATY PROJECT: Creditors Must File Claims by Nov. 26 ALTAIENERGO JSC: Proof of Claim Deadline Slated for Nov. 26 ASTANA FINANCE: Fitch Gives Long-Term BB+ Rating on Eurobond BAKYT-DENTA LTD: Creditors Must File Claims by Nov. 26 DOS-DOL LLP: South Kazakhstan Court Starts Bankruptcy Procedure GARANT LLP: Proof of Claim Deadline Slated for Nov. 26 KONYS COMPANY: Aktube Court Opens Bankruptcy Proceedings MARS CARD: Almaty Court Begins Bankruptcy Proceedings MOBILSTROYSERVICE LLP: Claims Filing Period Ends Nov. 26 ORNEK LLP: Claims Registration Ends Nov. 26 TALDYKORGANSVYAZSERVICE LLP: Creditors' Claims Due Nov. 26 TURANALEM FINANCE: Fitch Puts BB+ Rating on EUR500-Mln Eurobond K Y R G Y Z S T A N AI-PERI LLC: Creditors' Claims Due Dec. 13 JINDUO LLC: Claims Registration Ends Dec. 13 N E T H E R L A N D S E-MAC PROGRAM: S&P Rates EUR3.2-Mln Class E Notes at BB MONASTERY 2006-I: Moody's Rates EUR5.2-Mln Class E Notes at Ba2 PYATEROCHKA HOLDING: Renames to X5 Retail Group N.V. P O L A N D NETIA SA: Secures Partial Repayment of EUR150MM Credit Facility R U S S I A AEROGRAD OJSC: Assets Sale Slated for November 8 ALCO INTERNATIONAL: Court Names S. Prudnikov to Manage Assets CHOYSKIY DIARY: Court Names S. Kononenko as Insolvency Manager DALNEVOSTOCHNAYA STOCK: Court Starts Bankruptcy Supervision LOBVA: Sverdlovsk Court Starts Bankruptcy Supervision Procedure MURMANSK-STROM: Court Names S. Ryzhkov as Insolvency Manager NEREKHTA-BREAD: Kostroma Bankruptcy Hearing Slated for Nov. 16 NOMOS CAPITAL: Fitch Assigns Final B- Rating to US$125-MM Notes PYATEROCHKA HOLDING: Renames to X5 Retail Group N.V. REVDINSKIY WOODWORKING: Court Starts Bankruptcy Supervision ROSNEFT OIL: Denies Plans to Raise US$24.5-Bln Loan to Buy Yukos RUS'-INVEST: Moscow Court Names S. Suvorov as Insolvency Manager RUSSIAN GOLD: Court Names S. Suvorov as Insolvency Manager SIBACADEMBANK: Fitch Affirms Issuer Default Rating at B SKOPIN-AGRO-SNAB: Ryazan Bankruptcy Hearing Slated for Jan. 23 SIB-GAS-PRIBOR: Court Names V. Kravchenko as Insolvency Manager SOUTHERN TELECOM: Names Ruslan Bulguchev to Head Stavropol Unit TIMBER MILL 1: Court Starts Bankruptcy Supervision Procedure TIMBER MILL 34: Court Names A. Shabalin as Insolvency Manager URAL-MARBLE CJSC: Court Names A. Lavrov as Insolvency Manager VNESHTORGBANK JSC: Renaming Subsidiaries to VTB Bank VNESHTORGBANK JSC: Lack of Related Law Hits Promstroybank Merger YUKOS OIL: Rosneft Denies Plans to Raise US$24.5-Bln Bank Loan S W I T Z E R L A N D BOMBARDIER INC.: Fitch Downgrades Issuer Default Rating to BB- U K R A I N E KARM LLC: Court Names Yurij Ushach as Insolvency Manager KARSAN AVTOTRANS: Lviv Court Starts Bankruptcy Supervision LAN LLC: Court Names Zhmerinka Tax Inspection as Liquidator LINDA LLC: Court Names E. Golub as Liquidator/Insolvency Manager MAMADU LLC: Court Names Ludmila Zayikina as Insolvency Manager MAYAK LLC: Sumi Court Starts Bankruptcy Supervision REINFORCED METALS: Donetsk Court Starts Bankruptcy Supervision UKRAINA-SICH: Kyiv Court Starts Bankruptcy Supervision Procedure UKRMISTSEPROM PLUS: Court Names Andrij Zharikov as Liquidator VERHOVINA LLC: Zaporizhya Court Starts Bankruptcy Supervision U N I T E D K I N G D O M BETONSPORTS PLC: Interim Second Quarter Report Due on Nov. 5 BOMBARDIER INC.: Fitch Downgrades Issuer Default Rating to BB- CASTLEGATE 105: Bank of Scotland Names PwC as Receivers DAMOVO GROUP: Financial Restructuring Cues Moody's to Cut Rating DAMOVO GROUP: S&P Cuts Rating to D on Coupon Payment Deferral DESSOUS INT'L: Appoints Liquidators from Wilson Field DORAN ENGINEERING: Appoints Administrators from RSM Robson DURA AUTOMOTIVE: S&P Cuts Ratings to D on Chapter 11 Filing EFFECTIVE GOLF: Brings In Administrators from UHY Hacker Young EMI GROUP: Martin Bandier Steps Down in EMI Music Positions EMI GROUP: Revenue Decline Spurs S&P to Lower Ratings to BB EWER DESIGN: Names Keith Aleric Stevens Liquidator FEENIX COURIERS: Names Jeremy Nicholas Bleazard as Administrator FP&S LIMITED: Brings In PwC as Joint Administrators GANDALF IT: Appoints Martin Henry Linton to Administer Assets GATE & FENCING: Nominates Liquidator from Mayfields Insolvency GRAHAM HOLDINGS: Taps Begbies Traynor to Administer Assets HERTFORDSHIRE LEGAL: Nominates Ninos Koumettou as Liquidator HILLSIDE MOULDINGS: Creditors Confirm Liquidator's Appointment ICICI BANK: Moody's Assigns D- Financial Strength Rating INTERFACE INC: Improving Performance Cues S&P to Lift Rating JJR MARKETING: Brings In Liquidators from Harrisons J WILKINSON: Hires TCE Harrison to Liquidate Assets J WILLARD: Nominates Neville Richard Eckley as Liquidator KESTREL GREEN: Taps RSM Robson as Joint Administrators KNOTBOX RETAIL: Stephen M. Rout Leads Liquidation Procedure LANGUAGE LINE: S&P Assigns B Rating on Proposed Bank Facility LOUGH JOINERY: Claims Filing Period Ends Nov. 17 LUDGATE FUNDING: S&P Assigns BB Ratings on GBP5-Million Notes MARK RICHENS: Names Stephen P. J. White Liquidator MARTRANS TRAILERS: Calls In Liquidator from Haines Watts MASONLITE LIMITED: Taps Administrators from Smith & Williamson MET-TRAFFIC LIMITED: Taps Liquidator from Haines Watts MONEY PARTNERS: Fitch Places BB Rating on GBP14.7-Million Notes MOSES GATE: Hires Begbies Traynor as Joint Administrators N ROURKE & SON: Nominates Liquidator from Horsfields OPTIMUM BUSINESS: Creditors' Claims Due Nov. 24 OTLEY MOTORS: Appoints Begbies Traynor as Joint Administrators PLANTATION LIGHTING: Claims Registration Ends March 19, 2007 PLYFORM PRODUCTS: Barclays Bank Taps Receivers from Baker Tilly PROFESSIONAL SOLUTIONS: Hires Liquidator from Sinclair Harris PYECROFT ENGINEERING: Taps Smith & Williamson as Administrators R S GILLETT: Liquidator Sets Nov. 30 Claims Bar Date SCOOTABOUT LIMITED: Appoints Liquidators from Begbies Traynor SEA CONTAINERS: Employs Young Conaway as Counsel SEA CONTAINERS: Wants Court to Okay PwC as Investment Banker SEA CONTAINERS: Taps Kirkland & Ellis as Litigation Counsel SEA CONTAINERS: Moody's Withdraws Ratings on Chapter 11 Filings SHAW TAX: Brings In Moore Stephens to Administer Assets SIBACADEMFINANCE PLC: Fitch Places B Rating on US$1-Bln Notes SMART MANUFACTURING: Taps Harrisons as Joint Administrators VNESHTORGBANK JSC: Renaming Subsidiaries to VTB Bank VNESHTORGBANK JSC: Lack of Related Law Hits Promstroybank Merger W H SHAW: Brings In Kroll to Administer Assets WESTLEA FARM: Bank of Scotland Taps PwC as Receivers ********* ============= A U S T R I A ============= AURATA HANDEL: Vienna Court Orders Business Shutdown ---------------------------------------------------- The Trade Court of Vienna entered an order Sept. 12 shutting down the business of LLC Aurata Handel (FN 253095z). Court- appointed property manager Matthias Schmidt recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Matthias Schmidt Dr.Karl Lueger-Ring 12 1010 Vienna, Austria Tel: 5331695 Fax: 5355686 E-mail: schmidt@preslmayr.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 29 (Bankr. Case No. 38 S 51/06m). CHRISTIAN TRAAR: Klagenfurt Court Orders Business Closure --------------------------------------------------------- The Land Court of Klagenfurt entered an order Sept. 12 closing the business of LLC Christian Traar Internationale Transporte (FN 94603y). Court-appointed property manager Michael Schuller recommended the business closure after determining that the Debtor's continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Michael Schuller 10.Oktoberstrasse 2 9620 Hermagor, Austria Tel: 04282/2060 Fax: 04282/206011 E-mail: kanzlei.dr.schuller@utanet.at Headquartered in Hermagor, Austria, the Debtor declared bankruptcy on Aug. 21 (Bankr. Case No. 41 S 92/06m). GOLFANLAGE SCHLOSS: Creditors to Recover 20% of Claims ------------------------------------------------------ The Land Court of St. Poelten will close the bankruptcy case of LLC Golfanlage Schloss Goldegg (FN 74472v) following the Debtor's final distribution to its creditors. Affected creditors will recover 20% of their claim under the approved final allocation document filed by court-appointed property manager Georg Thum. Headquartered in Neidling, Austria, the Debtor declared bankruptcy on Aug. 8 (Bankr. Case No. 14 S 123/06p). The property manager can be reached at: Dr. Georg Thum Josefstrasse 13 3100 St. Poelten, Austria Tel: 02742/72222 Fax: 02742/72222-10 E-mail: kanzlei@tws-rae.at SARTOR LLC: Claims Registration Ends November 7 ----------------------------------------------- Creditors owed money by LLC Sartor (FN 102313k) have until Nov. 7 to file written proofs of claims to court-appointed property manager Richard Proksch at: Dr. Richard Proksch c/o Mag. Birgit Linder Heumarkt 9/I/11 1030 Vienna, Austria Tel: 713 46 51 Fax: 713 84 35 E-mail: proksch@eurojuris.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:15 p.m. on Nov. 21 to consider the adoption of the rule by revision. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 21 (Bankr. Case No. 6 S 81/06p). Birgit Linder represents Dr. Proksch in the bankruptcy proceedings. SNM PROJEKTBAU: Creditors' Meeting Slated for November 16 --------------------------------------------------------- Creditors owed money by LLC SNM Projektbau (FN 229834t) are encouraged to attend the creditors' meeting at 2:40 p.m. on Nov. 16 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Graz Hall L Room 230 2nd Floor Graz, Austria Court-appointed property manager Regina Schedlberger disclosed that group 2 creditors will recover 7.1% of their claims. Other creditors will not receive any quota. Headquartered in Graz, Austria, the Debtor declared bankruptcy on Jan. 17 (Bankr. Case No. 25 S 4/05h). Regina Schedlberger serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Regina Schedlberger Andritzer Reichsstrasse 42 8045 Graz-Andritz, Austria Tel: 0316/695100 Fax: 0316/6951009 E-mail: regina.schedlberger@chello.at ============= B E L G I U M ============= HUNTSMAN INT'L: Moody's Assigns LGD6 Rating on Proposed Notes ------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to Huntsman International LLC's, a wholly owned subsidiary of Huntsman Corp., proposed US$400 million senior subordinated notes. Moody's also assigned Loss Given Default Assessment of LGD6 to these notes in accordance with its Loss-Given-Default rating methodology that was initially implemented at the end of September 2006. Proceeds from the private offering of the proposed U.S. dollar and euro denominated notes will be used to redeem part of the company's outstanding 10 1/8% senior subordinated notes due 2009. The corporate family ratings of B1 for both HI and HC were affirmed and the rating outlooks for both companies remain developing. New ratings assigned: Huntsman International LLC * Proposed Sr. Sub Notes, US$400 million, due 2013 and 2014: B3, LGD6, 91% The proposed transaction is a modest credit positive for HC (and HI) as it will reduce the company's interest expense by redeeming high coupon debt. The rating outlook (for both, HC and HI) was changed to developing from positive in March 2006 after HC's management announced plans to separate HC's Base Chemicals and Polymer segments from HC's differentiated segments. The developing outlook reflects the possibility of additional transactions, over the medium term, to further separate the company. The outlook also reflects that the ratings may change subject to the development of a more formal debt structure and financial philosophy (including the possibility of dividends and incremental acquisitions) for the remaining businesses to be held at the differentiated segments. Moody's believes the decision to pursue a split by HC's management was prompted by ongoing concern over stock price valuation along with the receipt of an indication of interest from an outside party, occurring in late 2005, regarding an acquisition of all of the outstanding stock of HC. Moody's continues to believe that objectives for incremental debt reduction approaching US$1.45 billion by the end of 2007 are possible. Upon completion of debt reduction with proceeds of the proposed sale of Huntsman's European Commodities Business to SABIC, the ratings outlook may move to positive. The notching of the proposed senior subordinated notes at B3 and LGDA of LGD6 take into consideration the unconditional guarantees, on a subordinated basis, from all of HI's domestic subsidiaries and certain foreign subsidiaries. LGDAs 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% - 9%) to LGD6 (loss anticipated to be 90% - 100%). Huntsman Corp. is a global manufacturer of differentiated and commodity chemical products. Huntsman's products are used in a wide range of applications, including those in the adhesives, aerospace, automotive, construction products, durable and non- durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining and synthetic fiber industries. Huntsman had revenues for the twelve months ended September 30, 2006 of US$11 billion (after U.K. Base Chemical and Polymer Divestiture). HUNTSMAN INT'L: S&P Puts B Rating on Proposed Sr. Sub. Notes ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B' rating to Huntsman International LLC's proposed senior subordinated notes due 2014 and 2013. The 'B' rating is two notches below the corporate credit rating to reflect the deeply subordinated position of the noteholders versus approximately US$3.1 billion of senior and secured debt obligations in the capital structure as of Sept. 30, 2006. The proceeds from the proposed notes, estimated to be US$394 million, will be used to redeem the company's existing 10.125% senior subordinated notes due 2009, and to pay related fees. The ratings on the proposed notes have been placed on CreditWatch with positive implications. Standard & Poor's revised the CreditWatch implications on all of our ratings for Salt Lake City, Utah-based chemicals producer Huntsman Corp., and its affiliate Huntsman International, to positive from developing on Sept. 29. This followed the announcement that Huntsman had signed a definitive agreement with Saudi Basic Industries Corp., under which SABIC will acquire Huntsman's European base chemicals and polymers business for US$700 million in cash (prior to closing adjustments) and the assumption of approximately US$126 million of pension liabilities. "If completed as planned, the transaction would be an important step forward in the transformation of the portfolio toward greater reliance on differentiated product categories, while providing meaningful cash for debt reduction," said Standard & Poor's credit analyst Kyle Loughlin. The CreditWatch indicates that the ratings could be raised modestly upon completion of the sale, with the corporate credit rating potentially being raised to 'BB' from 'BB-'. The transaction is subject to regulatory approval and expected to close by the end of 2006. Standard & Poor's expects to resolve the CreditWatch listing upon completion of the pending sale of the U.K. petrochemical assets, or if uncertainty related to additional asset sales remains at that time, upon review of any subsequent developments. =============== B U L G A R I A =============== KREMIKOVTZI AD: Moody's Junks 7-Year Sec. Guaranteed Bond Issue --------------------------------------------------------------- Moody's Investors Service has assigned Caa1 corporate family ratings to Kremikovtzi AD and Caa1 rating to its 7 year secured guaranteed bond issued at Bulgaria Steel Finance BV with stable outlook. This is the first time rating. Following its privatization in 1999, Kremikovtzi AD ran into operational and financial difficulties, accumulated significant legacy liabilities and had liquidity problems. In 2005, Kremikovtzi was acquired by Global Steel Holding Limited group that indirectly controls 71% in the Company, while Bulgarian Government retains its 25.3% stake. The new controlling shareholder is implementing a turn-around program planned for 2006-2009 and raised a EUR325 million bond to fund the program and some of the accumulated liabilities. The assigned Caa1 global corporate family rating reflects the application of Moody's rating methodology for government-related issuers and comprises the following inputs: -- Baseline credit assessment (BCA) of 17 (on a scale of 1 to 21, where 1 represents lowest credit risk); -- Baa3 foreign currency rating of the Republic of Bulgaria; -- Low default dependence between the Company and the Republic; and -- Low support by the Republic. The low level of support reflects Moody's view of a very limited prospect of financial support that may be available to the bondholders in the event of distress, while the Government is expected to continue to back GSHL's restructuring effort at Kremikovtzi. The assessment of the level of dependency as low reflects Kremikovtzi's current focus on exports, as well as sufficient diversification of Bulgaria's revenues and a few direct financial linkages between the Government and company. At the current low level of support and dependency there is no rating uplift above the BCA. The BCA of 17 reflects the fundamental weakness of the business and the fact that Kremikovtzi's ability to service its obligations depends on the timely implementation and success of the turn-around program. The rating reflects: -- high risk profile of the financing structure, with limited shareholder contribution available at the initial stage resulting in a high level of debt (while the structure includes a contingent capital contribution option in an event of underperformance); -- significant execution and operational risks and a possible need to draw additional funding in an event of market downturn or delays with implementation, while the investment program and the anticipated recovery depend on the cash flow to be generated from the existing and new production facilities; -- high capital requirements that Kremikovtzi faces in the next 5 years; -- limited financial flexibility and limited liquidity available to the Company at the time of the rating; -- weak fundamental business position of the Company relying on the single operating site and exposure to volatility in prices for raw materials and flat steel products, as well as growing regional competition from low-cost better-capitalized steel producers; -- substantial legacy contingent liabilities currently negotiated with third parties and the Government, on-going legal proceedings (including an insolvency petition which has been currently rejected by the Sofia City Court of first instance), as well as limited financial track-record (particularly on consolidated basis). Moody's also takes into account: -- Kremikovtzi improving domestic market share; -- expected improvement in cost efficiency and profitability resulting from the turn-around program; -- better management under the new ownership; and -- involvement of the Bulgarian state as a stakeholder in Kremikovtzi providing some support in resolving legacy issues and preparing the viability plan to be approved by the EU. The bond is issued by Bulgaria Steel Finance BV, an "orphan" special purpose vehicle of the operating company, and benefits from unconditional irrevocable guarantee issued by Kremikovtzi AD. The bond is secured with pledge of assets and pledge of 100% of shares in Finmetals Holdings AD, a financial intermediary holding 71% in Kremikovtzi AD and wholly owned by Global Steel Holding Limited, as well as 71% of shares in Kremikovtzi AD (subject to existing distraint order). Moody's notes that the shares in Kremikovtzi AD may only be pledged once the distraint order is lifted. While the rating agency understands that the Company and its controlling shareholder continue to discuss the release of the order with the government agencies, one potential risk is that Finmetals Holdings AD may loose its shareholding in Kremikovtzi AD; such development would constitute an event of default under the indentures and a change of control event; but, at this stage, is viewed as unlikely. Moody's considers the value of the security (including pledge of accounts, assets and shares) to be insufficient to cover the principal amount raised under the notes. Stable outlook assigned to the rating reflects Moody's view that the new owner is committed to the restructuring. The rating agency notes, however, that there are some delays with implementation of the initial plan for 2006. The stable outlook also reflects the expectation that the Company will continue to improve its liquidity. Kremikovtzi AD is a single-site steel producer in Bulgaria. Kremikovtzi revenues in 2005 were BGN853 million (EUR438 million) and EBITDA was negative BGN92 million (EUR47 million). =========== F R A N C E =========== VALASSIS COMMUNICATIONS: Moody's Cuts Sr. Debt Ratings to Ba1 ------------------------------------------------------------- Moody's Investors Service downgraded Valassis Communications, Inc.'s senior unsecured note ratings to Ba1 from Baa3. Moody's also assigned a Ba1 Corporate Family Rating, Ba1 Probability of Default Rating, and LGD4 loss given default assessments to Valassis' debt securities. The ratings remain on review for downgrade. Downgrades: Issuer: Valassis Communications, Inc. * Senior Unsecured Regular Bond/Debenture, to Ba1 from Baa3 Assignments: Issuer: Valassis Communications, Inc. * Corporate Family Rating, Ba1 * Probability of Default Rating, Ba1 * Senior Unsecured Regular Bond/Debenture loss given default assessment, LGD4-56 The downgrade reflects Moody's belief that deterioration in the company's earnings due to significant downward pressure on free-standing insert pricing into 2007 and customer consolidation in the neighborhood targeting segment, and the company's focus on shareholder value-enhancement initiatives, as demonstrated by the pursuit of the leveraging ADVO acquisition, will lead to a more aggressive leverage profile. In Moody's opinion, Valassis' modest size and the competitive profile of its business dictate a commitment to a very conservative capital structure to maintain an investment grade rating. The company's current leverage, even without the ADVO transaction (debt-to-EBITDA for 2006 about 2.5 x incorporating Moody's standard adjustments), no longer supports the Baa3 rating. Further, there can be no assurance that Valassis will not seek to increase its risk profile to boost returns to shareholders if the ADVO transaction is terminated. The ratings remain on review for downgrade pending the outcome of the litigation related to the ADVO acquisition. Consummation of the ADVO acquisition at the US$37 per share price set forth in the July 5th, 2006 merger agreement would likely result in a multi-notch downgrade of the CFR. Valassis Communications, Inc. headquartered in Livonia, Michigan, offers a wide range of promotional and advertising products including newspaper advertising and inserts, sampling, direct mail, targeted marketing, coupon clearing and consulting and analytic services. ============= G E R M A N Y ============= B K W SCHLOSSEREI: Claims Registration Ends November 5 ------------------------------------------------------ Creditors of B K W Schlosserei GmbH have until Nov. 5 to register their claims with court-appointed provisional administrator Heinrich C. Friedhoff. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Dec. 6 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 Cologne Meeting Room 142 1st Floor Luxemburger Road 101 50939 Cologne, 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 Cologne opened bankruptcy proceedings against B K W Schlosserei GmbH on Sept. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: B K W Schlosserei GmbH Attn: Manfred Werner Bornheim and Olaf Kruff Stolberg, Managers Willi-Messerschmitt-Str. 21 50126 Bergheim, Germany The administrator can be contacted at: Heinrich C. Friedhoff Bismarckstr. 27-29 50762 Cologne, Germany CONCORDIA BAUTRAGER: Claims Registration Ends November 6 -------------------------------------------------------- Creditors of Concordia Bautrager GmbH & Co. Kommanditgesellschaft have until Nov. 6 to register their claims with court-appointed provisional administrator Christoph Niering. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 4 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 1240 12th Floor Luxemburger Road 101 50939 Cologne, 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 Cologne opened bankruptcy proceedings against Concordia Bautrager GmbH & Co. Kommanditgesellschaft on Sept. 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Concordia Bautrager GmbH & Co. Kommanditgesellschaft Oppenheimstr. 9 50668 Cologne, Germany Attn: Dr. Rainer C. Kahrmann, Manager Ground Floor Flat 38 Wilton Cres GBR-SW1X8RX London/Great Britain The administrator can be contacted at: Dr. Christoph Niering Brabanter Str. 2 50674 Cologne, Germany GERRY SPORTS: Claims Registration Ends November 8 ------------------------------------------------- Creditors of GERRY SPORTS Fashion + Sportartikel Vertriebs GmbH have until Nov. 8 to register their claims with court-appointed provisional administrator Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 8:40 a.m. on Dec. 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 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 GERRY SPORTS Fashion + Sportartikel Vertriebs GmbH on Sept. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: GERRY SPORTS Fashion + Sportartikel Vertriebs GmbH Kleyer Way 3-10 44149 Dortmund, Germany The administrator can be contacted at: Dr. Sebastian Henneke Hansastrasse 61 44137 Dortmund, Germany MBM INTERNATIONALE: Claims Registration Ends November 9 ------------------------------------------------------- Creditors of MBM Internationale Spedition GmbH have until Nov. 9 to register their claims with court-appointed provisional administrator Jochen Schnake. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Nov. 30 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 Bielefeld Hall 4065 4 Floor Court Route 6 33602 Bielefeld, 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 Bielefeld opened bankruptcy proceedings against MBM Internationale Spedition GmbH on Sept. 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: MBM Internationale Spedition GmbH Attn: Peter Riesen, Manager Broenninghauser Str. 33 33729 Bielefeld, Germany The administrator can be contacted at: Jochen Schnake Ravensberger Str. 11 u. 12 33824 Werther, Germany OEZKAYA IMMOBILIEN: Claims Registration Ends November 7 ------------------------------------------------------- Creditors of Oezkaya Immobilien GmbH & Co. KG have until Nov. 7 to register their claims with court-appointed provisional administrator Andreas Stratenwerth. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Bielefeld Hall 4065 4 Floor Court Route 6 33602 Bielefeld, 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 Bielefeld opened bankruptcy proceedings against Oezkaya Immobilien GmbH & Co. KG on Sept. 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Oezkaya Immobilien GmbH & Co. KG Attn: Ahmet and Mehmet Oezkaya, Managers Moenichhusen 89 32549 Bad Oeynhausen, Germany The administrator can be contacted at: Andreas Stratenwerth Lemgoer Str. 4 33604 Bielefeld, Germany PHOENIX CAPITAL: Claims Registration Ends November 8 ---------------------------------------------------- Creditors of Phoenix Capital-Management AG have until Nov. 8 to register their claims with court-appointed provisional administrator Jan Markus Plathner. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Friedberg Hall 20a District Court Building Homburger Road 18 61169 Friedberg (Hessen), 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 Friedberg opened bankruptcy proceedings against Phoenix Capital-Management AG on Aug. 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Phoenix Capital-Management AG Waldstrasse 13a 63674 Altenstadt, Germany Attn: Harald R. Alber, Manager Hainstrasse 46 61118 Bad Vilbel, Germany The administrator can be contacted at: Dr. Jan Markus Plathner Lyoner Road 14 60528 Frankfurt am Main, Germany Tel: 069/962334-0 Fax: 069/962334-22 E-mail: m.plathner@brinkmann-partner.de PRISMA BAUTRAGERGESELLSCHAFT: Claims Registration Ends Nov. 8 ------------------------------------------------------------- Creditors of Prisma Bautragergesellschaft mbH have until Nov. 8 to register their claims with court-appointed provisional administrator Jan Markus Plathner. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Nov. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Friedberg Hall 20a District Court Building Homburger Road 18 61169 Friedberg (Hessen), 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 Friedberg opened bankruptcy proceedings against Prisma Bautragergesellschaft mbH on Sept. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Prisma Bautragergesellschaft mbH Attn: Bernd Felgner, Manager Kurstrasse 16 61231 Bad Nauheim, Germany The administrator can be contacted at: Dr. Jan Markus Plathner Lyoner Road 14 60528 Frankfurt am Main, Germany Tel: 069/962334-0 Fax: 069/962334-22 E-mail: m.plathner@brinkmann-partner.de TALK ABOUT: Claims Registration Ends November 7 ----------------------------------------------- Creditors of talk about communications GmbH have until Nov. 7 to register their claims with court-appointed provisional administrator Stephan Fluck. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Wiesbaden E 36 a 3rd Floor Building E Moritzstrasse 5 Hinterhaus 65185 Wiesbaden, 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 Wiesbaden opened bankruptcy proceedings against talk about communications GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: talk about communications GmbH Grohenstueck 13b 65396 Walluf, Germany Attn: Ralf Albert Hamm, Manager Pater-Cyrill-Weg 25 65366 Geisenheim, Germany The administrator can be contacted at: Stephan Fluck Aarstrasse 1 65195 Wiesbaden, Germany Tel: 0611/170160 Fax: 0611/170150 E-mail: info@ra-fluck.de TISCHLEREI ROLF: Claims Registration Ends November 6 ---------------------------------------------------- Creditors of Tischlerei Rolf und Britta Klindworth GmbH & Co. KG have until Nov. 6 to register their claims with court-appointed provisional administrator Andreas Kienast. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Dec. 5 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Tostedt Area CE.02 Linden 23 21255 Tostedt, 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 Tostedt opened bankruptcy proceedings against Tischlerei Rolf und Britta Klindworth GmbH & Co. KG on Sept. 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Tischlerei Rolf und Britta Klindworth GmbH & Co. KG Industriestr. 34 21640 Horneburg, Germany Attn: Britta Klindworth, Manager Stuck 21a 21640 Horneburg, Germany The administrator can be contacted at: Andreas Kienast Johnsallee 7 20148 Hamburg, Germany Tel: 040/808065920 Fax: 040/808065999 W. ALSBACH: Claims Registration Ends November 9 ----------------------------------------------- Creditors of W. Alsbach GmbH have until Nov. 9 to register their claims with court-appointed provisional administrator Ulrich Zerrath. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 30 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Room 112 B 1st Floor Gerichtsstr. 2-6 48149 Muenster, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Muenster opened bankruptcy proceedings against W. Alsbach GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: W. Alsbach GmbH Attn: Werner Alsbach, Manager Aspastrasse 6 59394 Nordkirchen, Germany The administrator can be contacted at: Ulrich Zerrath Lange Wanne 57 45665 Recklinghausen, Germany WCM AG: Lender to Auction Klockner Shares for Debt Repayment ------------------------------------------------------------ WCM Beteiligungs- und Grundbesitz AG will sell its majority stake in German machinery maker Klockner-Werke AG after failing to repay a EUR170 million loan provided by HSH Nordbank AG, Die Welt says. On Oct. 18, HSH notified WCM that it was calling in the loan extended to the investment. HSH warned WCM that it would auction off the latter's collateral shares in Klockner if the company fails to repay by Oct. 25. WCM had requested for the postponement of the cancellation of the loan until Jan. 31, 2007, but HSH rejected the proposal. HSH, Die Welt reports, now owns WCM's shares in Klockner and hospital operator Maternus. HSH has yet to set the auction date, but a large number of private equity funds, including U.S. investment firm Cerberus, have already expressed interest in participating. Once the shares are sold, WCM would no longer have any operating activities. About the Company Headquartered in Frankfurt, Germany, WCM Beteiligungs- und Grundbesitz-AG -- http://www.wcm.de/-- holds equity interests in other real estate investment, management, and development companies, as well as in the nursing homes and a packaging maker. The group owns 80% of Klockner-Werke AG, which also operates in Austria, Czech Republic, Denmark, France, United Kingdom, Italy, Netherlands, Spain, Switzerland, Australia, Brazil, India, Japan, Mexico, Russian Federation, Singapore, and the U.S.A. WCM has been posting consecutive annual net losses since 2002: EUR849 million in 2002; EUR315 million in 2003; EUR163 million in 2004; and EUR44 million in 2005. WCM AG: Shuffles Management Board to Avoid Conflict of Interest ---------------------------------------------------------------- WCM AG implemented a change in its Management Board on Oct. 26, 2006. Separating the dual mandates that exist within WCM and its Klockner subsidiary has been under consideration for several months. The Management Board reported this and other items in its speech to the Annual General Meeting on Aug. 8, 2006. The compulsory separation of mandates has arisen from the need to safeguard the interests of both companies and to avoid potential conflicts of interest. Effective Oct. 26, 2006, action appropriate to this need has been taken. Both members of the Management Board, Mr. Flach and Mr. Reisgen, resigned from their office at WCM and are now focusing fully on their duties as members of the Management Board of Klockner-Werke AG. Supervisory Board appointed Karl-Ernst Schweikert as the new member of the Management Board. Mr. Schweikert has been known for many years for his work on its Management Board and the Supervisory Board About the Company Headquartered in Frankfurt, Germany, WCM Beteiligungs- und Grundbesitz-AG -- http://www.wcm.de/-- holds equity interests in other real estate investment, management, and development companies, as well as in the nursing homes and a packaging maker. The group owns 80% of Klockner-Werke AG, which also operates in Austria, Czech Republic, Denmark, France, United Kingdom, Italy, Netherlands, Spain, Switzerland, Australia, Brazil, India, Japan, Mexico, Russian Federation, Singapore, and the U.S.A. WCM has been posting consecutive annual net losses since 2002: EUR849 million in 2002; EUR315 million in 2003; EUR163 million in 2004; and EUR44 million in 2005. ========= I T A L Y ========= FIAT SPA: Cherry Automobiles to Supply Gas Engines for China ------------------------------------------------------------ Fiat S.p.A.'s Fiat Auto and Chery Automobiles signed Oct. 31 a Memorandum of Understanding, which calls for Chery Automobiles to 1.6 and 1.8-liter gasoline engines for application in Fiat cars to be produced in China and outside China. The two companies expect an annual supply exceeding 100,000 engines and are engaged to sign the definitive supply agreement before year-end. "The agreement with Chery will give us the opportunity to further increase the competitiveness of our product range on the international markets. Chery is a young and modern company with a solid technical background and I am glad to welcome this further step in our strategy of targeted alliances. In the relation with Chery we see the potential for the wider cooperation both in powertrains and eventually, in other automotive sectors," Sergio Marchionne, Fiat and Fiat Auto CEO disclosed. "Fiat is a world famous auto company with a long history. The successful cooperation between Chery and Fiat Auto shows Fiat's confidence and trust in Chery, and it is also an important step taking by Chery. The prospect of our cooperation is very promising," Yin Tongyao, President and General Manager of Chery Automobiles expressed. Headquartered in Wuhu, China, Chery Automobile Co. Ltd. -- http://www.chery.cn/-- specializes in the production and operation of automobiles and auto components. Chery has developed complete product lines, and the company's own R&D projects have enabled the development and production of vehicles, engines, gearboxes and other core components. The present production capacity for whole vehicle and gearbox is respectively at 400,000 and 300,000 units per year. In 2005, Chery achieved a sales volume of 189,100 cars with a total increase rate of 118%, and exported 18,000 cars overseas, ranking No.1 in the export of domestically made cars. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported in the TCR-Europe on Oct. 4, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. This follows Fiat's exercise of its call option to buy back 29% of Ferrari's capital from a consortium led by Mediobanca. Fitch said the Outlook is Positive. On Aug. 8, Standard & Poor's Ratings Services raised its long- term corporate credit rating on Fiat S.p.A. to 'BB' from 'BB-'. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Fiat. S&P said the outlook is stable. "The upgrade reflects Fiat's strong debt reduction achievements, positive trends in the auto sector, and improvements in the group's profitability and cash generation," said Standard & Poor's credit analyst Nicolas Baudouin. On Aug. 7, Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from Stable. Its Issuer Default rating and senior unsecured rating are affirmed at BB-. The Short-term rating is affirmed at B. Around EUR6 billion of debt is affected by this rating action. The Outlook change is underpinned by the consistent improvement of the group's financial profile, the pick-up in Fiat Auto's market shares and earnings since late 2005 and positive expectations for the CNH and Iveco divisions. FIAT SPA: Names Alfredo Altavilla as Fiat Powertrain CEO -------------------------------------------------------- Fiat S.p.A. disclosed new appointments at the Fiat Group effective today. Tuerk Otomobil Fabrikasi A.S. Chief Executive Officer Alfredo Altavilla was appointed CEO of Fiat Powertrain Technologies to replace Domenico Bordone. Mr. Altavilla will join the Group Executive Council and he will continue to be in charge of industrial alliances in the automobiles sector. Ali Aydin Pandir will be the new Chief Executive Officer of TOFAS. Pandir previously worked at General Motors where he held posts of responsibility in various countries. Paolo Martinelli, current Head of the Racing Engine Department of Ferrari, will take on responsibility for the Gasoline Engine Development Department of FPT. Mario Mairano will be in charge of the Ferrari Human Resources and General Secretary Department, which is currently being established. Mairano will temporarily continue to be in charge of Fiat Group Human Resources. Fiat thanked Domenico Bordone, who leaves the Group on his request, for his important contribution over the many years spent with the Group and wishes him all the best for his future endeavors. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported in the TCR-Europe on Oct. 4, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. This follows Fiat's exercise of its call option to buy back 29% of Ferrari's capital from a consortium led by Mediobanca. Fitch said the Outlook is Positive. On Aug. 8, Standard & Poor's Ratings Services raised its long- term corporate credit rating on Fiat S.p.A. to 'BB' from 'BB-'. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Fiat. S&P said the outlook is stable. "The upgrade reflects Fiat's strong debt reduction achievements, positive trends in the auto sector, and improvements in the group's profitability and cash generation," said Standard & Poor's credit analyst Nicolas Baudouin. On Aug. 7, Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from Stable. Its Issuer Default rating and senior unsecured rating are affirmed at BB-. The Short-term rating is affirmed at B. Around EUR6 billion of debt is affected by this rating action. The Outlook change is underpinned by the consistent improvement of the group's financial profile, the pick-up in Fiat Auto's market shares and earnings since late 2005 and positive expectations for the CNH and Iveco divisions. WCM AG: Lender to Auction Klockner Shares for Debt Repayment ------------------------------------------------------------ WCM Beteiligungs- und Grundbesitz AG will sell its majority stake in German machinery maker Klockner-Werke AG after failing to repay a EUR170 million loan provided by HSH Nordbank AG, Die Welt says. On Oct. 18, HSH notified WCM that it was calling in the loan extended to the investment. HSH warned WCM that it would auction off the latter's collateral shares in Klockner if the company fails to repay by Oct. 25. WCM had requested for the postponement of the cancellation of the loan until Jan. 31, 2007, but HSH rejected the proposal. HSH, Die Welt reports, now owns WCM's shares in Klockner and hospital operator Maternus. HSH has yet to set the auction date, but a large number of private equity funds, including U.S. investment firm Cerberus, have already expressed interest in participating. Once the shares are sold, WCM would no longer have any operating activities. About the Company Headquartered in Frankfurt, Germany, WCM Beteiligungs- und Grundbesitz-AG -- http://www.wcm.de/-- holds equity interests in other real estate investment, management, and development companies, as well as in the nursing homes and a packaging maker. The group owns 80% of Klockner-Werke AG, which also operates in Austria, Czech Republic, Denmark, France, United Kingdom, Italy, Netherlands, Spain, Switzerland, Australia, Brazil, India, Japan, Mexico, Russian Federation, Singapore, and the U.S.A. WCM has been posting consecutive annual net losses since 2002: EUR849 million in 2002; EUR315 million in 2003; EUR163 million in 2004; and EUR44 million in 2005. WCM AG: Shuffles Management Board to Avoid Conflict of Interest ---------------------------------------------------------------- WCM AG implemented a change in its Management Board on Oct. 26, 2006. Separating the dual mandates that exist within WCM and its Klockner subsidiary has been under consideration for several months. The Management Board reported this and other items in its speech to the Annual General Meeting on Aug. 8, 2006. The compulsory separation of mandates has arisen from the need to safeguard the interests of both companies and to avoid potential conflicts of interest. Effective Oct. 26, 2006, action appropriate to this need has been taken. Both members of the Management Board, Mr. Flach and Mr. Reisgen, resigned from their office at WCM and are now focusing fully on their duties as members of the Management Board of Klockner-Werke AG. Supervisory Board appointed Karl-Ernst Schweikert as the new member of the Management Board. Mr. Schweikert has been known for many years for his work on its Management Board and the Supervisory Board About the Company Headquartered in Frankfurt, Germany, WCM Beteiligungs- und Grundbesitz-AG -- http://www.wcm.de/-- holds equity interests in other real estate investment, management, and development companies, as well as in the nursing homes and a packaging maker. The group owns 80% of Klockner-Werke AG, which also operates in Austria, Czech Republic, Denmark, France, United Kingdom, Italy, Netherlands, Spain, Switzerland, Australia, Brazil, India, Japan, Mexico, Russian Federation, Singapore, and the U.S.A. WCM has been posting consecutive annual net losses since 2002: EUR849 million in 2002; EUR315 million in 2003; EUR163 million in 2004; and EUR44 million in 2005. =================== K A Z A K H S T A N =================== ALMATY PROJECT: Creditors Must File Claims by Nov. 26 ----------------------------------------------------- LLP Almaty Project Engineering has declared insolvency. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Almaty Project Engineering Ozturka/Manas Str. 2/67- 19 Almaty, Kazakhstan ALTAIENERGO JSC: Proof of Claim Deadline Slated for Nov. 26 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared JSC Altaienergo insolvent on Aug. 29. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Nov. 26 to submit written proofs of claim to: JSC Altaienergo Myzy Str. 2/1-214 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 ASTANA FINANCE: Fitch Gives Long-Term BB+ Rating on Eurobond ------------------------------------------------------------ Fitch Ratings assigned Astana Finance B.V.'s upcoming eurobond due 2011 an expected BB+ Long-term rating. The bond will be guaranteed unconditionally and irrevocably by JSC Astana Finance and AF's subsidiary, JSC Leasing Company Astana-Finance. The final rating of the eurobond is contingent upon receipt of final documentation conforming materially to information already received. Fitch has been informed that JSC Leasing Company Astana-Finance is to be added as second guarantor to AFBV's outstanding US$125 million eurobond due 2009 (ISIN:XS0244275797), rated BB+ and guaranteed by AF. The terms and conditions of AFBV's new notes state that the guarantors' obligations under their guarantees will rank at least equally in right of payment with all their other respective present and future unsecured and unsubordinated obligations, save those preferred by relevant laws. The guarantors are required to keep a number of financial and non-financial covenants. There is a cross default clause and investors have a put option in the event that AF's Issuer Default rating or the rating of the notes be withdrawn or downgraded by at least two notches as a result of a merger or asset sale, or should the municipality of Astana's stake in AF fall below 25%. AF's Issuer Default rating, Short-term B and Support 3 ratings reflect Fitch's opinion that there is a moderate likelihood that support would be made available to it from the municipality of Astana or potentially the Kazakhstani sovereign, should support be required. The municipality of Astana has been supportive of AF to date in terms of equity injections, subsidized funding, first refusal on investments etc. A letter of comfort from the municipality of Astana will be included in the eurobond prospectus. However, the municipality of Astana itself has relatively limited funds specifically set aside that might be used to support AF. Consequently, sovereign support could be necessary, should more significant support be needed by AF than can be diverted at short notice from other municipal resources. Given, among other factors, the moral obligation the comfort letter creates on the country's flagship capital city to support AF, Fitch views there also to be a moderate probability that support might flow through from the Kazakhstani sovereign. Any movement in AF's IDR would reflect a change in our opinion regarding the propensity or ability of the municipality of Astana and/or the Kazakhstani sovereign to provide timely support to AF. AF's Individual rating of D/E reflects its small size, potentially volatile profitability, substantial concentrations and low capitalization targets. Its loan book is very concentrated, both by individual name and on the agriculture and construction/real estate sectors. While asset quality has been adequate to date, the loan book has been growing fast, so impaired loans could rise as loans season. AF was created in 1997 by the municipality of Astana to facilitate development finance for Astana, the rapidly growing new capital of Kazakhstan and for the surrounding Akmola region. It has since also diversified geographically and into certain aspects of investment banking. AF is 25.5%-owned by the municipality of Astana. BAKYT-DENTA LTD: Creditors Must File Claims by Nov. 26 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Akmola Region declared LLP Bakyt-Denta Ltd. insolvent on Sept. 1. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Bakyt-Denta Ltd. Auelbekov Str. 139a-228 Kokshetau Akmola Region Kazakhstan Tel: 8 (3162) 25-79-32 DOS-DOL LLP: South Kazakhstan Court Starts Bankruptcy Procedure --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region commenced bankruptcy proceedings against LLP Dos-Dol. LLP Dos-Dol is located at: Momysh-uly Str. 27 Shymkent South Kazakhstan Region Kazakhstan GARANT LLP: Proof of Claim Deadline Slated for Nov. 26 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Garant insolvent on Sept. 1. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Garant Aktau, 27-67-7 Mangistau Region Kazakhstan Tel/Fax: 8 (3292) 41-00-42 KONYS COMPANY: Aktube Court Opens Bankruptcy Proceedings -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube Region commenced bankruptcy proceedings against LLP Company Konys on Sept. 19. MARS CARD: Almaty Court Begins Bankruptcy Proceedings ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Firm Mars Card Holding Proms (RNN 600700533505) on Sept. 15. MOBILSTROYSERVICE LLP: Claims Filing Period Ends Nov. 26 -------------------------------------------------------- LLP Mobilstroyservice has declared insolvency. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Mobilstroyservice Micro District Tolkyn 3 Atyrau Atyrau Region Kazakhstan ORNEK LLP: Claims Registration Ends Nov. 26 ------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region declared LLP Ornek insolvent on Aug. 15. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Ornek Auelbekov Str. 139a-228 Kokshetau Akmola Region Kazakhstan Tel: 8 (3162) 25-79-32 TALDYKORGANSVYAZSERVICE LLP: Creditors' Claims Due Nov. 26 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Taldykorgan Connection Service Taldykorgansvyazservice declared insolvent on Sept. 6. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Taldykorgansvyazservice Ormanov Str. 49-65 Taldykorgan Almaty Region Kazakhstan Tel: 8 (32822) 21-28-02 8 (70155) 8-34-19 TURANALEM FINANCE: Fitch Puts BB+ Rating on EUR500-Mln Eurobond --------------------------------------------------------------- Fitch Ratings assigned TuranAlem Finance B.V.'s EUR500 million 6.25% eurobond issue due September 2011 a final Long-term BB+ rating. The issue is guaranteed by Kazakhstan's Bank TuranAlem, rated foreign currency Issuer Default BB+/Stable, local currency Issuer Default BBB-/Stable, Short-term foreign currency B, Short-term local currency F3, Individual C/D, and Support 3. The issue was made within the framework of BTA's and TAF's US$3 billion global medium-term note program, rated Long-term BB+ for senior unsecured foreign currency notes with maturities in excess of one year and Short-term B for senior unsecured foreign currency notes with maturities of less than one year. BTA was the second largest commercial bank in Kazakhstan by IFRS assets at end-2005, and has top three positions in all major market segments. The bank's common stock is owned primarily by a number of Kazakh investors. =================== K Y R G Y Z S T A N =================== AI-PERI LLC: Creditors' Claims Due Dec. 13 ------------------------------------------ LLC Manufacturing-Commercial Firm Proizvodstvenno-Kommercheskaya Firma Ai-Peri has declared insolvency. Creditors have until Dec. 13 to submit written proofs of claim to: LLC Ai-Peri Kalinin Str. 105 Karakol Issyk-Kul Region Kyrgyzstan JINDUO LLC: Claims Registration Ends Dec. 13 -------------------------------------------- LLC Jinduo has declared insolvency. Creditors have until Dec. 13 to submit written proofs of claim to: LLC Jinduo Fere Str. 33 Bishkek, Kyrgyzstan ===================== N E T H E R L A N D S ===================== E-MAC PROGRAM: S&P Rates EUR3.2-Mln Class E Notes at BB ------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the residential mortgage-backed floating-rate notes to be issued by E-MAC Program B.V. Compartment NL 2006-III. The collateral for this transaction comprises mortgage loans to individuals in The Netherlands. The originators are GMAC RFC Nederland B.V., Quion 20 B.V., and Atlas Funding B.V. This is the first transaction under the new multi-issuance program "E-MAC Program B.V." established by GMAC RFC Nederland. This program was set up for regular issuance of Dutch RMBS. For each transaction, the notes will be issued in segregated compartments only, this being NL 2006-III. All mortgage loans in the pool will be first-ranking, or, first- and sequentially lower-ranking, and a cash reserve of 0.4% will be funded at closing. Ratings List E-MAC Program B.V. Compartment NL 2006-III EUR803.2 Million Residential Mortgage-Backed Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ A1 AAA 151.2 A2 AAA 604.8 B AA 21.6 C A 12.0 D BBB 10.4 E (1) BB 3.2 (1) The proceeds of the class E notes will be used to fund the reserve fund. These notes provide credit enhancement in the capital structure, rather than in the form of class subordination. MONASTERY 2006-I: Moody's Rates EUR5.2-Mln Class E Notes at Ba2 --------------------------------------------------------------- Moody's Investors Service assigned definitive long-term credit ratings to these Notes to be issued by Monastery 2006-I B.V.: -- EUR140,000,000 Senior Class A1 Mortgage-Backed Notes due 2044: Aaa; -- EUR663,600,000 Senior Class A2 Mortgage-Backed Notes due 2044: Aaa; -- EUR28,000,000 Mezzanine Class B Mortgage-Backed Notes due 2044: Aa2; -- EUR28,700,000 Mezzanine Class C Mortgage-Backed Notes due 2044: A2; -- EUR9,500,000 Junior Class D Notes due 2044: Baa3; and -- EUR5,200,000 Subordinated Class E Notes due 2044: Ba2. Class E is not backed by mortgage principal, but excess margin from the interest payments from the mortgage loans. Transaction Structure Monastery 2006-I is the third securitization transaction backed by residential mortgages originated by DSB Bank N.V. the renamed former DSB Groep N.V. A new feature in this transaction in comparison to the two previous RMBS transactions of DSB is the application of the new Dutch law (in effect since Oct. 1, 2004). Under this new Dutch law the perfection of legal title to the loan receivables may be achieved without notifying each individual borrower but through the registration of a Deed of Assignment with either a Dutch notary or the Dutch tax authorities. The originator will transfer the loans using this silent assignment. The Issuer will finance the acquisition of the mortgage loan portfolio with funds to be raised through the issuance of notes. The total initial purchase price of the mortgage loan receivables will be equal to the net proceeds received from the issue of the rated classes of Notes, excluding the Class E Notes. The Reserve Fund will be partially financed from the issuance of the Class E Notes; the remaining balance will be funded out of available excess spread until the target level of 1.25% of the pool balance is reached. Any repayments received under the mortgage loans will be used to redeem the notes on a sequential basis in order of seniority starting with the Class A1 Notes up to the first optional redemption date. On and after the first optional redemption date in May 2012, all Notes will redeem on a pro-rata and pari passu basis subject to certain target amortization criteria, which must be met: -- The subordination below Class A Notes is 2.5 times the initial subordination; -- The Reserve Fund must be at its target level; -- No debit balance on any Principal Deficiency Ledger; -- No outstanding drawings on the liquidity facility; and -- Arrears over 60 days must be less than 1.5% of the current outstanding balance of Notes. To the extent any of these criteria are not met, the amortization will revert back to a sequential redemption structure. Any Excess Margin available in the transaction after all other obligations, including interest payments on Class E notes and replenishment of the Reserve Fund, have been met in full, will be used to redeem the Class E Notes until fully redeemed. The Issuer may also at its option redeem all Notes outstanding at the First Optional Redemption Date or on any payment date thereafter. An interest rate step up mechanism is used to create an incentive for the issuer to redeem all of the notes on the optional redemption date at their outstanding principal balance. While reviewing this transaction, Moody's has not taken into account such redemption given the optional nature thereof. The Issuer is a special purpose vehicle incorporated under the laws of the Netherlands with limited liability as a "besloten vennootschap met beperkte aansprakelijkheid" (B.V.). The shares of the Issuer are owned by a foundation established under the laws of the Netherlands: Stichting Administratiekantoor Monastery. Strengths of the Transaction -- the excess spread of 0.5% p.a. in the transaction guaranteed via the interest rate swap provided by a counterparty rated in compliance with Moody's criteria; -- the availability of a reserve fund with a target level of 1.25% of the notes' initial balance partially funded at closing through the issue of the Class E notes (0.6%) and further sourced by available excess spread; -- protection against losses to senior notes through subordination of more junior notes; -- the liquidity facility provided by a counterparty rated in compliance with Moody's criteria equal to 3.5% of the balance of the Notes; -- availability of a committed back-up servicer (Stater Nederland B.V.); -- the transaction does not involve a replenishment period; -- none of the pool debtors is self-employed; -- the originator provided "months current" data; -- the pool is regionally well diversified; and -- comparatively low set-off risk. Weaknesses and Mitigants -- securitization is a major funding source for the originator and hence the pool has limited seasoning; The inherent higher risk is reflected in Moody's analysis but also by the generally good performance of outstanding transactions and by fact that DSB began originating mortgages for third parties in 1996 and consumer loans since 1991. -- originator and servicer, DSB Bank N.V., is not rated; and The uncertainty regarding its credit standing is mitigated by its nature as regulated entity, its operational capabilities as servicer and the availability of a back-up servicer. -- the underlying mortgage pool has a relatively high LTFV. The associated risk and the therefore necessary credit enhancement have been reflected in the pool analysis and the cash flow modeling. The ratings assigned reflect the resulting expected loss of each tranche. The ratings address the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal with respect to the Notes by the legal final maturity. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Moody's assigned provisional ratings to these notes on Oct. 3. Moody's will monitor this transaction on an ongoing basis. PYATEROCHKA HOLDING: Renames to X5 Retail Group N.V. ---------------------------------------------------- Pyaterochka Holding N.V. will be known as X5 Retail Group N.V. The new name of the Group reflects the changes that have taken place in the Company following the merger of Pyaterochka and Perekriostok retail chains in May 2006 to create a clear leader of the Russian food retail sector. This has also been reflected in the company's new logo -- a sign representing the Roman letter X, symbolizing multiplication, growth and crossroad, and the historical number 5. "Following the merger of Russia's leading retail chains, The Company entered a new stage in its development which required a new, modern and dynamic name for the Group reflecting its ambitious strategic objective to become the main consolidator of the Russian fragmented food retail market, national champion of the sector able to compete with multinational companies," Lev Khasis, Group CEO, commented. About Pyaterochka Holding Headquartered in the Netherlands, Pyaterochka Holding N.V. -- http://www.5chka.com/-- operates a large store network largely covering the Moscow region and St. Petersburg but also has a good presence in other Russian regions through its franchise operations. The company has recently acquired two of its successful regional franchise operations -- in Yekaterinburg and Chelyabinsk. Pyaterochka's 2004 net revenues were US$1.1 billion. The company has reported unaudited net revenues of US$1.4 billion for 2005. * * * As reported in the TCR-Europe on Aug. 29, Moody's Investors Service downgraded the corporate family rating of Pyaterochka Holding N.V. to B1 from Ba3. Moody's said the outlook for the rating is stable. Standard & Poor's Services affirmed its 'BB-' long-term corporate credit rating on Pyaterochka Holding N.V., the owner of Russia's largest grocery retail network. At the same time, Standard & Poor's affirmed its 'BB-' long-term corporate credit and 'ruAA-' Russia national scale on Pyaterochka's guaranteed operating subsidiary OOO Agrotorg. The 'ruAA-' Russia national scale on the senior unsecured and senior secured debt issued by related entity Pyaterochka Finance have also been affirmed. All were removed from CreditWatch with negative implications, where they had been placed on April 12, following Pyaterochka's announced acquisition of Russia's leading supermarket chain Perekrestok. S&P said the outlook is negative. =========== P O L A N D =========== NETIA SA: Secures Partial Repayment of EUR150MM Credit Facility --------------------------------------------------------------- Netia S.A. concluded Oct. 31 a number of agreement partially securing the repayment of the credit facility of EUR150 million granted to P4 Spolka z ograniczona odpowiedzialnoscia, Netia's related entity, by China Development Bank, acting as the Mandated Lead Arranger and BPH SA, as the Facility Agent and Security Agent, under the Facility Agreement dated Oct. 31, 2006. The Facility agreement provides for a ten-year amortizing term Facility with a three-year availability period. The funds will be used by P4 for the purchase of core equipment for its UMTS network from Huawei, including the acquisition of transmitter construction sites and related network construction costs. In order to facilitate the conclusion of part of the vendor financing package assumed in P4's original business plans, P4's shareholders, Netia and Novator, provided certain undertakings and separate guarantees in direct proportion to their shareholdings in P4. Accordingly, Netia concluded: * Under the Share Retention Agreement, Netia provided a guarantee to a maximum amount of EUR27 million. The guarantee covers the repayment of 30% of the outstanding amounts under one of the tranches of the Facility to be applied towards the acquisition of transmitter and core network construction sites, and the costs of related civil works investments in P4's UMTS network, increased by interest and costs. Furthermore, Netia is obliged to ensure that the P4 equity stake currently held by the Netia group shall not be disposed of before Aug. 23, 2008. Thereafter, the current shareholders of P4 may not reduce their combined holdings below 50% of P4's share capital without the prior consent of China Development Bank. * Under the Equity Contribution Agreement, Netia and Novator One L.P. agreed to ensure that during the scheduled Facility repayment period, P4's share capital will be increased or the shareholders will grant subordinated loans to P4 pro rata to their respective shareholdings in P4 to ensure that P4 can meet its obligations up to a maximum committed amount of EUR300 million. The total outstanding amount of committed contributions still to be made by Netia will not exceed EUR51 million as at the agreement execution date. * Under the Subordination Agreement, Netia agreed to subordinate all of its, and the Netia group's, financial receivables due from P4, including any subordinated shareholders loans, by giving priority to the receivables due under the Facility granted to P4. The subordination does not affect commercial agreements concluded with P4 and other agreements, once accepted by the creditors on a case-by-case basis. Netia had no such receivables subject to subordination as at the date of entering into this agreement. * Under the Agreement for the Registered and Financial Pledges on Shares, Netia Mobile Sp. z o.o. (P4's shareholder), established a registered and a financial pledge in favor of the Security Agent on its entire equity stake in P4 to secure P4's obligations under the Facility. At the same time, under a separate Agreement on Change of Priority of the Pledges, Netia Mobile Sp. z o.o. agreed that the registered pledge established in its favor by Telecom Poland S.a.r.l. on P4's shares in connection with the conclusion of P4's Shareholders' Agreement be subordinated to the registered and financial pledges established by Telecom Poland S.a.r.l. on the same date in favor of the Security Agent to secure P4's obligations under the Facility. Netia's liabilities under the agreements referred to above may exceed 10% of the value of Netia's current equity. Consequently, the agreements are classified as material agreements. Headquartered in Warsaw, Poland, Netia S.A. (WSE: NET) (B+/Stable/) -- http://netia.pl/-- is an alternative fixed-line telecommunications operator in Poland. It operates on the basis of its own, state-of-the-art fiber-optic backbone network that connects the largest Polish cities as well as its local access networks. Netia provides a broad range of telecommunications services, including voice, data and network wholesale services. =========== R U S S I A =========== AEROGRAD OJSC: Assets Sale Slated for November 8 ------------------------------------------------ LLC Tura Yust, the bidding organizer for OJSC Aerograd, opened a public auction for the firm's properties at 3:00 p.m. on Nov. 8 at: LLC Tura Yust 5th floor Krasina Str. 7a 625003 Tyumen Region Russia To participate, bidders have until 4:00 p.m. on Nov. 6 to deposit an amount equivalent to 20 percent of the starting price to: OJSC AEROGRAD (TIN 8609000241, KPP 860901001) Zapsibkombank OJSC Salekhard Settlement Account 40702810300050000455 Correspondent Account 30101810600000000727 BIK 047182727 Bidding documents must be submitted to: LLC Tura Yust 5th floor Krasina Str. 7a 625003 Tyumen Region Russia The Debtor can be reached at: OJSC Aerograd Raduzhnyj Airport 628460 Khanty-Mansiyskiy Autonomous Region Russia ALCO INTERNATIONAL: Court Names S. Prudnikov to Manage Assets ------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Prudnikov as Insolvency Manager for CJSC Alco International. He can be reached at: S. Prudnikov Post User Box 98 214031 Smolensk-31 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-37242/06-73-621B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Alco International Vorontsovo Pole Str. 2/1 109028 Moscow Region Russia CHOYSKIY DIARY: Court Names S. Kononenko as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Altay Republic appointed Mr. S. Kononenko as Insolvency Manager for LLC Choyskiy Diary. He can be reached at: S. Kononenko Kirova Str. 62-2 Borovikha Pervomayskiy Region 658044 Altay Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A02-536/2006. The Debtor can be reached at: LLC Choyskiy Diary Pushkina Str. 21 Choya Choyskiy Region Altay Republic Russia DALNEVOSTOCHNAYA STOCK: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Amur Region commenced bankruptcy supervision procedure on OJSC Dalnevostochnaya Stock Insurance Company Amur (TIN/KPP 2801016197/280001001). The case is docketed under Case No. A04-3320/06-7/216 B. The Temporary Insolvency Manager is: M. Fedyaev A. Zhivova Str. 6 123100 Moscow Region Russia The Debtor can be reached at: OJSC Dalnevostochnaya Stock Insurance Company Amur Pushkina Str. 40 Blagoveshensk 675002 Amur Region Russia LOBVA: Sverdlovsk Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------------- The Arbitration Court of Sverdlovsk Region commenced bankruptcy supervision procedure on LLC Timber Industry Combine Lobva. The case is docketed under Case No. A60-19739/06-S11. The Temporary Insolvency Manager is: K. Zelyutin Post User Box 366 620015 Ekaterinburg Region Russia The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: LLC Timber Industry Combine Lobva Zavodslaya Str. 4 Lobva Novolyalinskiy Region 624420 Sverdlovsk Region Russia MURMANSK-STROM: Court Names S. Ryzhkov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Murmansk Region appointed Mr. S. Ryzhkov as Insolvency Manager for OJSC Murmansk-Strom. He can be reached at: S. Ryzhkov Office 719 Knipovicha Str. 23 183039 Murmansk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A42-4543/2006. The Arbitration Court of Murmansk Region is located at: Knipovicha Str. 20 Murmansk Region Russia The Debtor can be reached at: OJSC Murmansk-Strom S. Perovskoj Str. 25/26 Murmansk Region Russia NEREKHTA-BREAD: Kostroma Bankruptcy Hearing Slated for Nov. 16 -------------------------------------------------------------- The Arbitration Court of Kostroma Region will convene on Nov. 16 to hear the bankruptcy supervision procedure on OJSC Nerekhta- Bread. The case is docketed under Case No. A31-4869/2006-12. The Temporary Insolvency Manager is: V. Vasechkin Svobody Square 1 Nerekhta 157800 Kostroma Region Russia The Debtor can be reached at: OJSC Nerekhta-Bread Nerekhta 157500 Kostroma Region Russia NOMOS CAPITAL: Fitch Assigns Final B- Rating to US$125-MM Notes --------------------------------------------------------------- Fitch Ratings assigned NOMOS Capital S.A.'s US$125 million issue of 9.25% limited recourse loan participation notes with a 10- year maturity a final Long-term B- rating and a final Recovery Rating RR6. The notes are to be used solely for financing a subordinated loan to Russia's NOMOS Bank, rated Issuer Default B+/Stable, Short-term B, Support 5, Individual D, and National Long-term A- /Stable. NOMOS Capital S.A. will only pay noteholders amounts, if any, received from NOMOS under the subordinated loan agreement. NOMOS is ranked among the 20 largest Russian banks by total assets. It is primarily a corporate bank, but is also active in precious metals and securities trading and is developing retail banking to a limited extent. PYATEROCHKA HOLDING: Renames to X5 Retail Group N.V. ---------------------------------------------------- Pyaterochka Holding N.V. will be known as X5 Retail Group N.V. The new name of the Group reflects the changes that have taken place in the Company following the merger of Pyaterochka and Perekriostok retails chains in May 2006 to create a clear leader of the Russian food retail sector. This has also been reflected in the company's new logo -- a sign representing the Roman letter X, symbolizing multiplication, growth and crossroad, and the historical number 5. "Following the merger of Russia's leading retail chains, The Company entered a new stage in its development which required a new, modern and dynamic name for the Group reflecting its ambitious strategic objective to become the main consolidator of the Russian fragmented food retail market, national champion of the sector able to compete with multinational companies," Lev Khasis, Group CEO, commented. About Pyaterochka Holding Headquartered in the Netherlands, Pyaterochka Holding N.V. -- http://www.5chka.com/-- operates a large store network largely covering the Moscow region and St. Petersburg but also has a good presence in other Russian regions through its franchise operations. The company has recently acquired two of its successful regional franchise operations -- in Yekaterinburg and Chelyabinsk. Pyaterochka's 2004 net revenues were US$1.1 billion. The company has reported unaudited net revenues of US$1.4 billion for 2005. * * * As reported in the TCR-Europe on Aug. 29, Moody's Investors Service downgraded the corporate family rating of Pyaterochka Holding N.V. to B1 from Ba3. Moody's said the outlook for the rating is stable. Standard & Poor's Services affirmed its 'BB-' long-term corporate credit rating on Pyaterochka Holding N.V., the owner of Russia's largest grocery retail network. At the same time, Standard & Poor's affirmed its 'BB-' long-term corporate credit and 'ruAA-' Russia national scale on Pyaterochka's guaranteed operating subsidiary OOO Agrotorg. The 'ruAA-' Russia national scale on the senior unsecured and senior secured debt issued by related entity Pyaterochka Finance have also been affirmed. All were removed from CreditWatch with negative implications, where they had been placed on April 12, following Pyaterochka's announced acquisition of Russia's leading supermarket chain Perekrestok. S&P said the outlook is negative. REVDINSKIY WOODWORKING: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Sverdlovsk Region commenced bankruptcy supervision procedure on CJSC Revdinskiy Woodworking Plant. The case is docketed under Case No. A60-18242/2006-S11. The Temporary Insolvency Manager is: V. Maksimov Post User Box 58 620076 Ekaterinburg Region Russia The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Revdinskiy Woodworking Plant Nakhimova Str. 1 Revda Sverdlovsk Region Russia ROSNEFT OIL: Denies Plans to Raise US$24.5-Bln Loan to Buy Yukos ---------------------------------------------------------------- OAO Rosneft Oil Co. denies reports that it may raise a US$24.5 billion loan from seven western banks with a view to acquiring bankrupt OAO Yukos Oil Co., RosBusinessConsulting says. Rosneft told RBC that its board of directors has not convened on the matter and that it does not plan to discuss it any time soon. According to Kommersant Daily last month, Rosneft has reportedly approached its Western creditor banks, which include Deutsche Bank, to organize between US$15 billion and US$20 billion in loans, which will be used to purchase Yukos' assets to be sold at auction by August 2007. Russian market sources said that the banks, which lent US$7.5 billion to ROsneft in 2005, include: -- ABN Amro -- Barclays Capital -- Dresdner Kleinwort -- JP Morgan -- Morgan Stanley. Rosneft First Vice President Nikolai Borisenko confirmed its interest in Yukos assets saying that the company will have to resort to loans for the acquisition. According to Kommersant, MDM-bank analyst Andrey Gromadin estimated the assets to be worth about US$20 billion-US$23 billion; Alfa-bank analyst Konstantin Batunin estimates them at around US$15 billion. As reported in the TCR-Europe on Sept. 19, Rosneft Vice President Peter O'Brian said the company might buy some assets from Yukos to optimize the balance between oil refining and production. He said that the company had no plans to purchase assets abroad, but indicated plans to swap some assets for oil refineries in China. The company, however, was ready to consider purchasing oil assets in the Bashkortostan Republic if the move proved to be economically expedient. About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. The expected court ruling paves the way for the company's liquidation and auction. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft -- http://www.rosneft.ru/eng-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * Standard & Poor's assigned BB ratings to Rosneft's long-term and local foreign issuer credit in 2006, while Fitch assigned BB+ ratings to the Company's foreign currency and local currency long-term debt in 2005. RUS'-INVEST: Moscow Court Names S. Suvorov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for CJSC Investment Company Rus'-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. A40-15392/06-101-57B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Investment Company Rus'-Invest Building 1 Entuziastov Shosse 76/1 Moscow Region Russia RUSSIAN GOLD: Court Names S. Suvorov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Moscow Region appointed Mr. S. Suvorov as Insolvency Manager for CJSC Russian Gold. 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. A40-44718/06-103-803B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Russian Gold Krymskiy Val Str. 8 117049 Moscow Region Russia SIBACADEMBANK: Fitch Affirms Issuer Default Rating at B ------------------------------------------------------- Fitch Ratings affirmed Russia-based Sibacadembank's ratings at Issuer Default B with a Stable Outlook, Short-term B, Individual D, and Support 5. Also, Fitch assigned expected ratings of Recovery RR4 and Long-term B to SAB's upcoming senior unsecured eurobond issue. SAB's ratings reflect the credit and operational risks arising from the bank's very rapid ongoing and planned loan growth, modest capitalization and reliance on capital markets access to fund further capital increases, as well as the relatively high- risk Russian operating environment. At the same time, the ratings also consider the bank's strong regional franchise, continued sound asset quality and performance and low market risk appetite. SAB's planned merger with the smaller Uralvneshtorgbank in 2006 or Q107 should result in a further strengthening and geographical diversification of the franchise, while also increasing scale and offering opportunities for efficiency gains. UVTB has common shareholders with SAB and a broadly similar business model, and has also recorded high loan growth rates and good profit margins. Asset quality is somewhat weaker at UVTB than at SAB, reflecting the higher proportion of more risky unsecured retail lending at the former. The merged bank will be called URSA-Bank. Upward pressure on SAB's ratings could result from a strengthening of capitalization or a slowdown in loan growth, although Fitch regards the latter as unlikely in the near term. A further strengthening of the bank's franchise, an extension of the track record of acceptable asset quality and improvements in the Russian operating environment could also contribute to an upgrade. A deterioration of asset quality in the context of the current very rapid growth, possibly coupled with impaired access to international markets for both capital and liability funding purposes, is viewed by Fitch as the most likely source of potential downward pressure on the ratings. SAB is one of the leading banks in the Siberian Federal District and ranked 31st in Russia by total assets at end-H106. Business of both banks is focused on lending to local retail customers and small and medium-sized enterprises. Three individuals together hold a majority stake in the voting stock of SAB, and will also have a majority stake in the merged URSA-Bank. The EBRD currently has a blocking 25% stake in SAB, and the EBRD and Germany's DEG are expected to hold a combined stake of at least 25% in URSA-Bank from April 2007. SKOPIN-AGRO-SNAB: Ryazan Bankruptcy Hearing Slated for Jan. 23 -------------------------------------------------------------- The Arbitration Court of Ryazan Region will convene at noon on Jan. 23, 2007, to hear the bankruptcy supervision procedure on OJSC Skopin-Agro-Snab. The case is docketed under Case No. A54-3452/2006-S20. The Temporary Insolvency Manager is: L. Androsov Post User Box 269 390039 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 Skopin-Agro-Snab Skopin 391830 Ryazan Region Russia SIB-GAS-PRIBOR: Court Names V. Kravchenko as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Tyumen Region appointed Mr. V. Kravchenko as Insolvency Manager for CJSC Sib-Gas-Pribor. He can be reached at: V. Kravchenko Office 242 Melnikayte Str. 106 625026 Tyumen Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A70-2300/3-2006. The Arbitration Court of Tyumen Region is located at: Khokhryakova Str. 77 627000 Tyumen Region Russia The Debtor can be reached at: JSC Sib-Gas-Pribor Velizhanskiy Trakt 6km 625059 Tyumen Region Russia SOUTHERN TELECOM: Names Ruslan Bulguchev to Head Stavropol Unit --------------------------------------------------------------- The Board of Directors of Southern Telecommunications Company PJSC and General Director Alexander Andreev appointed Ruslan Bulguchev, former Deputy Director General of UTK for regional policy in the sphere of telecommunications, as Deputy Director General- Director of the Stavropol branch. Mr. Bulguchev was born in 1960 in the town of Pavlodar of the Kazakh Republic. He has been working in the telecommunications sector since 1975. He graduated from the Moscow Technical University of Communications and Informatics with a diploma of telecommunications engineer. In 1997-2005, Mr. Bulguchev was the Chairman of the State Communications Committee of the Ingush Republic, General Director of FGUP Directorate of Communications of the Ingush Republic. In November 2005 he was appointed Deputy Director General of UTK PJSC for regional policy in the sphere of telecommunications. At the post, Mr. Bulguchev replaced Alexander Roitblat who had died in the automobile accident. Deputy Director General of Svyazinvest OJSC Stanislav Panchenko and General Director of "UTK" PJSC Alexander Andreev presented the new appointed director at the meeting with top executives and trade-union bosses of the branch. The management believes that the main task of the work collective remains the retaining and strengthening of UTK's positions in the Stavropol Kray. Necessity of high interaction with regional authorities to solve social problems and to realize priority national projects was emphasized. Existing resources conservation and deployment of new communication technologies and services will ensure the branch's financial results growth and increase in tax proceeds to regional and local budgets. Capacity of the telephone network of the Stavropol branch of "UTK" PJSC exceeds 670,000 lines. During the nine months of 2006 the branch transferred 344 million rubles of taxes to all kinds of budgets, 121 million rubles of them -- to regional and local budgets. About the Company Headquartered in Krasnodar, Russia, Southern Telecommunications Co. -- http://www.stcompany.ru/-- provides local, long- distance, and cellular telephone, paging and telegraph services. * * * As reported in the TCR-Europe on Oct. 30, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based fixed-line telecommunications operator Southern Telecommunications Co. (OJSC) to 'B-' from 'CCC+', in light of the company's improving financial risk profile. S&P said the outlook is stable. At the same time, Standard & Poor's raised its long-term Russia national scale rating on STC to 'ruBBB' from 'ruBB'. STC is the incumbent fixed-line telecoms operator in the southern region of Russia. Southern Telecommunications carries Moody's Investors' Service's Caa1 issuer rating and B3 long-term corporate family rating since 2004. TIMBER MILL 1: Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------ The Arbitration Court of Sverdlovsk Region commenced bankruptcy supervision procedure on LLC Timber Mill 1. The case is docketed under Case No. A60-15713/2006-S11. The Temporary Insolvency Manager is: P. Podporin Belinskogo Str. 34.211 GSP-573 620219 Ekaterinburg Region Russia The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: LLC Timber Mill 1 Zavodskaya Str. 1-a Chernoyarka 624970 Sverdlovsk Region Russia TIMBER MILL 34: Court Names A. Shabalin as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Arkhangelsk Region appointed Mr. A. Shabalin as Insolvency Manager for OJSC Timber Mill 34. He can be reached at: A. Shabalin Post User Box 181 163000 Arkhangelsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A05-10060/05-21. The Arbitration Court of Arkhangelsk Region is located at: Loginova Str. 17 163069 Arkhangelsk Region Russia The Debtor can be reached at: OJSC Timber Mill 34 Mankevicha Str. 13 Onega Arkhangelsk Region Russia URAL-MARBLE CJSC: Court Names A. Lavrov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Chelyabinsk Region appointed Mr. Chelyabinsk as Insolvency Manager for CJSC Ural-Marble (TIN 7415022981). He can be reached at: A. Lavrov Post User Box 2234 Zlatoust 456208 Chelyabinsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-15870/06-60-156. The Arbitration Court of Chelyabinsk Region is located at: Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: CJSC Ural-Marble Turgoyakskoye Shosse Miass 456382 Chelyabinsk Region Russia VNESHTORGBANK JSC: Renaming Subsidiaries to VTB Bank ---------------------------------------------------- Vneshtorgbank JSC will re-brand all its local and foreign units to VTB Bank to enhance the bank's international recognition, Kommersant reports. All of the company's subsidiaries will carry the "VTB Bank" brand and the base country. The group's German unit, Ost-West Handelsbank, has been renamed to VTB Bank AG Europe. The re-branding will also affect the company's units in: -- Armenia, Georgia, Ukraine and Cyprus (Russian Commercial Bank, Cyprus), -- Switzerland (Russian Commercial Bank, Zurich), -- France (BCEN-Eurobank), and -- Austria (Donau Bank). The company's London unit, Moscow Narodny Bank, would be renamed to VTB Bank Europe without indicating a definite country. The renaming, however, will not include its Georgian unit, which name will be spelled in Roman. The company decided to re-brand Vneshtorgbank to VTB Bank since the former is hardly pronounceable for foreign investors. Swiss Interbrand handled VTB's rebranding for US$2 million. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * Following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. VNESHTORGBANK JSC: Lack of Related Law Hits Promstroybank Merger ---------------------------------------------------------------- Shareholders of Vneshtorgbank JSC failed to vote over the company's merger with Industry & Construction Bank of St. Petersburg (Promstroybank), CBonds says. According to unofficial reports cited by Cbonds, the merger, is hampered by the absence of pertinent presidential law, which would allow the company to dilute the state share in its capital. Vneshtorgbank is one of the Russian strategic enterprises that need Presidential legislation before making crucial decisions. Vneshtorgbank currently owns 75% plus three shares of Promstroybank. The company has rise in operating volumes and profit in the first half of 2006 to its acquisition of Promstroybank. The regional bank's shareholders has already approved of a takeover by VTB. As reported in the TCR-Europe on Oct. 27, once a decision for takeover is reached, Vneshtorgbank will apply for approval from the Russian government. Headquartered in St. Petersburg, Russia, Industry and Construction Bank -- http://www.icbank.ru/-- engages in universal banking with a special franchise in corporate finance and investment banking. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * Following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. YUKOS OIL: Rosneft Denies Plans to Raise US$24.5-Bln Bank Loan -------------------------------------------------------------- OAO Rosneft Oil Co. denies reports that it may raise a US$24.5 billion loan from seven western banks with a view to acquiring bankrupt OAO Yukos Oil Co., RosBusinessConsulting says. Rosneft told RBC that its board of directors has not convened on the matter and that it does not plan to discuss it any time soon. According to Kommersant Daily last month, Rosneft has reportedly approached its Western creditor banks, which include Deutsche Bank, to organize between US$15 billion and US$20 billion in loans, which will be used to purchase Yukos' assets to be sold at auction by August 2007. Russian market sources said that the banks, which lent US$7.5 billion to ROsneft in 2005, include: -- ABN Amro -- Barclays Capital -- Dresdner Kleinwort -- JP Morgan -- Morgan Stanley. Rosneft First Vice President Nikolai Borisenko confirmed its interest in Yukos assets saying that the company will have to resort to loans for the acquisition. According to Kommersant, MDM-bank analyst Andrey Gromadin estimated the assets to be worth about US$20 billion-US$23 billion; Alfa-bank analyst Konstantin Batunin estimates them at around US$15 billion. As reported in the TCR-Europe on Sept. 19, Rosneft Vice President Peter O'Brian said the company might buy some assets from Yukos to optimize the balance between oil refining and production. He said that the company had no plans to purchase assets abroad, but indicated plans to swap some assets for oil refineries in China. The company, however, was ready to consider purchasing oil assets in the Bashkortostan Republic if the move proved to be economically expedient. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft -- http://www.rosneft.ru/eng-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. The expected court ruling paves the way for the company's liquidation and auction. ===================== S W I T Z E R L A N D ===================== BOMBARDIER INC.: Fitch Downgrades Issuer Default Rating to BB- -------------------------------------------------------------- Fitch Ratings downgraded the debt and Issuer Default Ratings for both Bombardier Inc. and Bombardier Capital Inc.: Bombardier Inc. -- IDR to BB- from BB; -- Senior unsecured debt to BB- from BB; -- Credit facilities to BB- from BB; and -- Preferred stock to B from B+. Bombardier Capital Inc. -- IDR to BB- from BB; and -- Senior unsecured debt to BB- from BB. The ratings are removed from Rating Watch Negative, where they were placed on Oct. 23 over concerns about potential changes in Bombardier's financial strategy. The Rating Outlook is Stable. Fitch also expects to assign a BB- rating to Bombardier's proposed EUR1.8 billion issuance of senior unsecured bonds. The rating actions listed above are based on the expectation that Bombardier will complete the bond issuance, a related tender offer, and the proposed new letter of credit facility as described in materials distributed by the company. These ratings cover outstanding debt and preferred stock totaling approximately US$4.2 billion, which could rise to more than US$5.0 billion after the pending tender offer and bond issuance are completed. Due to the existence of a support agreement and demonstrated support by the parent, BC's ratings are linked to those of BI. The downgrade is based on what Fitch considers to be a change in Bombardier's financial strategy, which had included plans for significant debt reduction. Fitch's previous ratings had incorporated expectations for debt reduction in fiscal 2007, and possibly in fiscals 2008 and 2009. Bombardier recently announced three financial transactions which will offset most of the approximately US$1 billion of debt reduction achieved so far in fiscal 2007 and will likely defer additional debt reduction to beyond fiscal 2009. The transactions extend debt maturities, resolve some possible covenant pressures in fiscal 2008 and lower Bombardier's LC fees. However, Fitch believes that the transactions will result in Bombardier having higher leverage that is in line with the new rating level. Pro forma for the financial transactions, Fitch estimates that fiscal 2007 consolidated gross leverage will be in the 4.6x-4.9x range. Fitch estimates that consolidated net leverage will be in the 2.6x-2.9x range, although Fitch estimates that net leverage will be higher for most of fiscal 2008 due to Bombardier's seasonal working capital needs. After the financial transactions, all debt will be located at BI with the exception of BC's GBP300 million issue due in May 2009 and untendered bonds, if any. The net leverage estimates assume US$1.8 billion-US$2.2 billion of unrestricted cash balances at the end of F2007. Bombardier will also have approximately US$1.0 billion of restricted cash balances related to the new LC facility. These restricted cash balances are not available for liquidity purposes or for the benefit of unsecured bondholders. Bombardier's unrestricted cash balances will be the company's sole source of liquidity because the new LC facility is not available on a revolving credit basis. Factors supporting the ratings and Outlook include the company's diversification, leading market positions, the health of the business jet and turboprop markets, cash balances, revised debt maturity schedule, Bombardier Transportation's successful restructuring, and large backlog at BT. Concerns include the variability of free cash flow due to order flow at BT and Bombardier Aerospace; continued low margins and free cash flow; the levels of consolidated gross debt compared to EBITDA and free cash flow; business jet market cyclicality; the sizable pension plan deficit; the impact of exchange rate volatility on financial results and planning; and various regional jet concerns, including weak orders, uncertainty regarding development of new aircraft models, and contingent obligations related to past aircraft sales. Previously, Fitch calculated BI's credit metrics on a deconsolidated basis accounting for BC as an equity investment. This methodology was used for several reasons: consistency with the way other industrial companies with sizable finance subsidiaries are evaluated in the credit markets; the size of BC's operations and the amount of BC's outstanding debt; the fact that BC's debt was neither an obligation of BI nor guaranteed by BI; and the calculation of BI's covenants, which excluded BC. Going forward Fitch will calculate Bombardier's credit metrics on a consolidated basis, for the following reasons. BC's assets and pro forma debt have declined substantially in the past several years. In addition, Bombardier's covenants will be calculated on a consolidated basis for the new LC facility. Finally, Bombardier revised some of its financial reporting earlier this year, and it now reports only consolidated financial results. ============= U K R A I N E ============= KARM LLC: Court Names Yurij Ushach as Insolvency Manager -------------------------------------------------------- The Economic Court of Chernigiv Region appointed Yurij Ushach as Liquidator/Insolvency Manager for LLC Karm (code EDRPOU 14227010). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 12. The case is docketed under Case No. 4/283 B. The Economic Court of Chernigiv Region is located at: Miru Avenue 20 14000 Chernigiv Region Ukraine The Debtor can be reached at: LLC Karm Nosivskij shlyah Str. 19a Nizhin Chernigiv Region Ukraine KARSAN AVTOTRANS: Lviv Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Economic Court of Lviv Region commenced bankruptcy supervision procedure on LLC Karsan Avtotrans (code EDRPOU 31979428). The case is docketed under Case No. 6/150-8/233. The Temporary Insolvency Manager is: Igor Bolyak Strimka Str. 4/8 79019 Lviv Region Ukraine The Economic Court of Lviv Region is located at: Lichakivska Str. 81 79010 Lviv Region Ukraine The Debtor can be reached at: LLC Karsan Avtotrans Brativ Lisikiv Str. 1A Borislav Lviv Region Ukraine LAN LLC: Court Names Zhmerinka Tax Inspection as Liquidator ----------------------------------------------------------- The Economic Court of Vinnitsya Region appointed Zhmerinka Regional State Tax Inspection as Liquidator for Agricultural LLC Lan (code EDRPOU 03729761). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 7. The case is docketed under Case No. 5/247-06. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: Agricultural LLC Lan Kopistirin. Shargorodskij District Vinnitsya Region Ukraine LINDA LLC: Court Names E. Golub as Liquidator/Insolvency Manager ---------------------------------------------------------------- The Economic Court of Donetsk Region appointed Mr. E. Golub as Liquidator/Insolvency Manager for LLC LINDA (code EDRPOU 962215). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 30. The case is docketed under Case No. 27/139 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Linda Azizbekov Str. 51/2 83108 Donetsk Region Ukraine MAMADU LLC: Court Names Ludmila Zayikina as Insolvency Manager -------------------------------------------------------------- The Economic Court of Kyiv Region appointed Ludmila Zayikina as Liquidator/Insolvency Manager for LLC Creative Association Mamadu (code EDRPOU 30637580). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 15. The case is docketed under Case No. 43/631. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Creative Association Mamadu Ivan Shevtsov Str. 1 03113 Kyiv Region Ukraine MAYAK LLC: Sumi Court Starts Bankruptcy Supervision --------------------------------------------------- The Economic Court of Sumi Region commenced bankruptcy supervision procedure on LLC Mayak (code EDRPOU 30880582). The case is docketed under Case No. 8/385-06. The Temporary Insolvency Manager is: Andrij Savochka Office 39 Sumsko-Kiyivskih divizij Str. 20 40024 Sumi Region Ukraine The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: LLC Mayak Gagarin Str. 17 Verhnya Sagarivka Burinskij District Sumi Region Ukraine REINFORCED METALS: Donetsk Court Starts Bankruptcy Supervision -------------------------------------------------------------- The Economic Court of Donetsk Region commenced bankruptcy supervision procedure on OJSC Reinforced Metals and Concrete Products and Constructions (code EDRPOU 00168544) on Aug. 18. The case is docketed under Case No. 5/134 B. The Temporary Insolvency Manager is: M. Kondratyeva Gorkij Str. 34 83086 Donetsk Region Ukraine The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: OJSC Reinforced Metals and Concrete Products and Constructions Repin Str. Makiyivka 86129 Donetsk Region Ukraine UKRAINA-SICH: Kyiv Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on Agricultural LLC Ukraina-Sich (code EDRPOU 05384133). The case is docketed under Case No. 253. The Temporary Insolvency Manager is: D. Zheronkin Sumska Str. 2 Paskivshina Zgurivskij District 07630 Kyiv Region Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: Agricultural LLC Ukraina-Sich Sumska Str. 2 Paskivshina Zgurivskij District 07630 Kyiv Region Ukraine UKRMISTSEPROM PLUS: Court Names Andrij Zharikov as Liquidator ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Andrij Zharikov as Liquidator/Insolvency Manager for LLC Ukrmistseprom Plus (code EDRPOU 23578569). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 15. The case is docketed under Case No. 43/630. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Ukrmistseprom Plus Borispilska Str. 15 02093 Kyiv Region Ukraine VERHOVINA LLC: Zaporizhya Court Starts Bankruptcy Supervision ------------------------------------------------------------- The Economic Court of Zaporizhya Region commenced bankruptcy supervision procedure on LLC Verhovina (code EDRPOU 30708111) on Aug. 10. The case is docketed under Case No. 16/59/06. The Temporary Insolvency Manager is: Mr. V. Pyantkovskij Artem Str. 67/56 Zaporizhya Region Ukraine The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Verhovina Lazurne Melitopol District Zaporizhya Region Ukraine =========================== U N I T E D K I N G D O M =========================== BETONSPORTS PLC: Interim Second Quarter Report Due on Nov. 5 ------------------------------------------------------------ BetOnSports PLC has until Nov. 5 to file its interim report with the London Stock Exchange without incurring into sanctions, a manager of the AIM told TheOnlineWire.com Aug. 24. According to the report, the company's current status requires its directors to publish the company's second quarter 2006 results in order to avoid a possible default. On July 18, the company suspended stock trading at the LSE's Alternative Investments Market after a U.S. court banned the company from taking bets from customers residing in the U.S. According to a 22-count indictment against BetonSports founder Gary Kaplan and Chief Executive Officer David Carruthers, unsealed by the Justice Department on July 17, the company in 2003 had 100,000 active players who placed 33 million wagers worth US$1.6 billion through the company's Web sites. Charges include racketeering, mail fraud and facilitation of gambling across state and national boundaries. BetonSports is an online gaming company publicly trading on the London Stock Exchange, but has no operations in the United Kingdom. Around 80% of the company's business operates in the United States, where sports betting is illegal except in the State of Nevada. The group also has operations in Asia, Argentina and Mexico. BOMBARDIER INC.: Fitch Downgrades Issuer Default Rating to BB- -------------------------------------------------------------- Fitch Ratings downgraded the debt and Issuer Default Ratings for both Bombardier Inc. and Bombardier Capital Inc.: Bombardier Inc. -- IDR to BB- from BB; -- Senior unsecured debt to BB- from BB; -- Credit facilities to BB- from BB; and -- Preferred stock to B from B+. Bombardier Capital Inc. -- IDR to BB- from BB; and -- Senior unsecured debt to BB- from BB. The ratings are removed from Rating Watch Negative, where they were placed on Oct. 23 over concerns about potential changes in Bombardier's financial strategy. The Rating Outlook is Stable. Fitch also expects to assign a BB- rating to Bombardier's proposed EUR1.8 billion issuance of senior unsecured bonds. The rating actions listed above are based on the expectation that Bombardier will complete the bond issuance, a related tender offer, and the proposed new letter of credit facility as described in materials distributed by the company. These ratings cover outstanding debt and preferred stock totaling approximately US$4.2 billion, which could rise to more than US$5.0 billion after the pending tender offer and bond issuance are completed. Due to the existence of a support agreement and demonstrated support by the parent, BC's ratings are linked to those of BI. The downgrade is based on what Fitch considers to be a change in Bombardier's financial strategy, which had included plans for significant debt reduction. Fitch's previous ratings had incorporated expectations for debt reduction in fiscal 2007, and possibly in fiscals 2008 and 2009. Bombardier recently announced three financial transactions which will offset most of the approximately US$1 billion of debt reduction achieved so far in fiscal 2007 and will likely defer additional debt reduction to beyond fiscal 2009. The transactions extend debt maturities, resolve some possible covenant pressures in fiscal 2008 and lower Bombardier's LC fees. However, Fitch believes that the transactions will result in Bombardier having higher leverage that is in line with the new rating level. Pro forma for the financial transactions, Fitch estimates that fiscal 2007 consolidated gross leverage will be in the 4.6x-4.9x range. Fitch estimates that consolidated net leverage will be in the 2.6x-2.9x range, although Fitch estimates that net leverage will be higher for most of fiscal 2008 due to Bombardier's seasonal working capital needs. After the financial transactions, all debt will be located at BI with the exception of BC's GBP300 million issue due in May 2009 and untendered bonds, if any. The net leverage estimates assume US$1.8 billion-US$2.2 billion of unrestricted cash balances at the end of F2007. Bombardier will also have approximately US$1.0 billion of restricted cash balances related to the new LC facility. These restricted cash balances are not available for liquidity purposes or for the benefit of unsecured bondholders. Bombardier's unrestricted cash balances will be the company's sole source of liquidity because the new LC facility is not available on a revolving credit basis. Factors supporting the ratings and Outlook include the company's diversification, leading market positions, the health of the business jet and turboprop markets, cash balances, revised debt maturity schedule, Bombardier Transportation's successful restructuring, and large backlog at BT. Concerns include the variability of free cash flow due to order flow at BT and Bombardier Aerospace; continued low margins and free cash flow; the levels of consolidated gross debt compared to EBITDA and free cash flow; business jet market cyclicality; the sizable pension plan deficit; the impact of exchange rate volatility on financial results and planning; and various regional jet concerns, including weak orders, uncertainty regarding development of new aircraft models, and contingent obligations related to past aircraft sales. Previously, Fitch calculated BI's credit metrics on a deconsolidated basis accounting for BC as an equity investment. This methodology was used for several reasons: consistency with the way other industrial companies with sizable finance subsidiaries are evaluated in the credit markets; the size of BC's operations and the amount of BC's outstanding debt; the fact that BC's debt was neither an obligation of BI nor guaranteed by BI; and the calculation of BI's covenants, which excluded BC. Going forward Fitch will calculate Bombardier's credit metrics on a consolidated basis, for the following reasons. BC's assets and pro forma debt have declined substantially in the past several years. In addition, Bombardier's covenants will be calculated on a consolidated basis for the new LC facility. Finally, Bombardier revised some of its financial reporting earlier this year, and it now reports only consolidated financial results. CASTLEGATE 105: Bank of Scotland Names PwC as Receivers ------------------------------------------------------- Bank of Scotland appointed on Oct. 13 Colin Michael Trevethyn Haig, Anthony Victor Lomas, Robert Nicholas Lewis and David Christian Chubb of PricewaterhouseCoopers LLP joint administrative receivers of: -- Castlegate 105 Ltd. (Company Number 03689365), -- Display Marketing Group Ltd. (Company Number 03466113), -- European Home Retail PLC (Company Number 01782133), -- Kleeneze Distribution Ltd. (Company Number 02766100), -- Kleeneze Enterprises Ltd. (Company Number 01977831), -- Kleeneze Europe Ltd. (Company Number 04056693), -- Kleeneze Home Shopping Ltd. (Company Number 02764674), -- Kleeneze Services Ltd. (Company Number 03689360), -- EHR 2 LTD. (Company Number 03069078), and -- Macpreb Trustees Ltd. (Company Number 03525705). PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. Castlegate 105 Ltd., Display Marketing Group Ltd., European Home Retail PLC, Kleeneze Distribution Ltd., Kleeneze Enterprises Ltd., Kleeneze Europe Ltd., Kleeneze Home Shopping Ltd., Kleeneze Services Ltd., EHR 2 LTD., and Macpreb Trustees Ltd. can be reached at: Plumtree Court London EC4A 4HT Tel: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 DAMOVO GROUP: Financial Restructuring Cues Moody's to Cut Rating ---------------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of Damovo Group S.A. to Caa3 from Caa1 following the non-payment of a semi-annual interest coupon due on Oct. 30 on the company's 2012 senior notes and the announcement of its intention to undertake a financial restructure. Moody's has concurrently downgraded the rating on the senior notes, which are issued at Damovo III SA to Ca from Caa2. The outlook is negative. The rating actions conclude a review initiated on Oct. 16. Damovo announced that appointed advisors have commenced discussions with stakeholders to undertake a financial reorganization. The company reported that the restructuring proposal under consideration will reduce the interest burden for the group. Damovo and its advisers concluded that the company's interests were best served by preserving cash reserves and deferring the interest payment due. Moody's classifies this missed payment as a default. However, the agency notes that an event of default is not triggered under the note's indenture until the payment default continues for at least 30 days. According to Moody's, this deferral indicates further deterioration in the company's liquidity position. Even if the interest payment is made within the 30 day grace period the company will still need to address its underlying business and financial risks and Moody's considers that note holders will remain vulnerable to non-payment in the near term. Should a restructuring occur, it is Moody's expectation that it will result in recovery for note holders of materially less than par. Ratings also continue to reflect the high amount of non-recourse factoring of accounts receivable, which totaled EUR350.2 million as reported at 31 July 2006. This debt ranks ahead of the notes and would limit recovery for note holders in a workout scenario. Notes benefit from security in the form of pledges over the shares of the issuer's subsidiaries and other collateral including Italian receivables not already factored. However, Moody's opinion is that Damovo's balance sheet provides low recovery protection. Tangible assets largely comprise accounts receivable and cash and these can be quickly absorbed in a workout situation. Damovo operates across 10 countries and variations in the ranking of items such as pension obligations and trade claims could also weaken recovery rates. The company has historically been loss making with variable year on year EBITDA and Moody's believes this complicates recovery estimates using a going concern basis. The negative outlook for ratings reflects uncertainty surrounding implications for note holders. If the proposed restructure indicates a low recovery rate for note holders then ratings will be further downgraded. Rating actions: Damovo Group S.A. * corporate family rating, downgraded to Caa3 from Caa1 Damovo III S.A. * rating on senior secured notes, downgraded to Ca from Caa2. Headquartered in Glasgow, Scotland, Damovo is a provider of information and communications technology (ICT) and services to public service organizations and larger private sector companies. For the twelve months to July 31, 2006, the company reported revenues of EUR483 million. DAMOVO GROUP: S&P Cuts Rating to D on Coupon Payment Deferral ------------------------------------------------------------- Standard & Poor's Ratings Services lowered to 'D' from 'CCC+' its long-term corporate credit rating on U.K.-based telecommunications services provider Damovo Group S.A. At the same time, the long-term rating on subsidiary Damovo III S.A.'s EUR350 million senior secured notes was lowered to 'D' from 'CCC-'. The '4' recovery rating on Damovo III S.A.'s notes remains on CreditWatch with negative implications, where it was placed on Oct. 12. The '4' recovery rating indicates our expectation of marginal (25%-50%) recovery of principal for senior secured noteholders in the event of a payment default. The downgrades follow Damovo's announcement that the company will defer its EUR18.9 million semi-annual coupon payment due on Oct. 30 under the senior secured notes. Damovo is currently conducting restructuring discussions with its various stakeholders, including bondholders and shareholders. "Although the bond indenture includes a 30-day grace period to complete the payment, we do not have enough assurances that Damovo will be able to make the payment or that a restructure would not entail significant capital losses for noteholders," said Standard & Poor's credit analyst Patrice Cochelin. DESSOUS INT'L: Appoints Liquidators from Wilson Field ----------------------------------------------------- Lisa Hogg and Claire Foster of Wilson Field were appointed Joint Liquidators of Dessous International Limited on Oct. 16 for the creditors' voluntary winding-up procedure. Headquartered in Nottingham, England Dessous International Limited manufactures and wholesales lingerie and hosiery. DORAN ENGINEERING: Appoints Administrators from RSM Robson ---------------------------------------------------------- Gerald Clifford Smith and Dominic James Christie-Brown of RSM Robson Rhodes LLP were appointed joint administrators of Doran Engineering Co. Ltd. (Company Number 01621920) and Doran Engineering Co. (Holdings) Ltd. (Company Number 05010799) on Oct. 13. RSM Robson Rhodes LLP -- http://www.robsonrhodes.co.uk/-- provides a wide range of auditing, assurance, advisory and compliance services for both private and public sectors. The firm is a member of the RSM International, the world's sixth largest international organization of accountants and business advisers. Doran Engineering Co. Ltd. can be reached at: Units 51-52 Planetary Industrial Estate Planetary Road Willenhall West Midlands WV13 3XW United Kingdom Tel: 01902 866000 DURA AUTOMOTIVE: S&P Cuts Ratings to D on Chapter 11 Filing ----------------------------------------------------------- Standard & Poor's Ratings Services lowered Dura Automotive Systems Inc.'s senior secured and subordinated debt ratings to 'D' from 'CC' following the company's announcement that it and its U.S. and Canadian subsidiaries had filed for Chapter 11 bankruptcy protection. In addition, these ratings were removed from CreditWatch with negative implications. At the same time, the '1' recovery rating on the secured debt was affirmed and then withdrawn. The corporate credit rating on Dura and the rating on Dura Operating Corp.'s US$400 million senior notes were already 'D' following the company's failure to make an interest payment earlier this month. Well-known challenges cited by the company in its bankruptcy filing included production cuts by major U.S. automakers and escalating costs of raw materials. Dura indicated that its operations outside the U.S. and Canada, which in total account for about 51% of revenues, were not part of the filing. Dura has arranged a US$300 million DIP loan. Rochester Hills, Mich.-based Dura, a manufacturer of automotive and recreational vehicle components, has total debt of about US$1.2 billion. EFFECTIVE GOLF: Brings In Administrators from UHY Hacker Young -------------------------------------------------------------- Andrew Andronikou and Peter Kubik of UHY Hacker Young were appointed joint administrators of Effective Golf Ltd. (Company Number 05014691) on Oct. 13. The administrators can be reached at: Andrew Andronikou and Peter Kubik UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH United Kingdom Tel: 020 7216 4600 Effective Golf Ltd. can be reached at: Wandon End House Wandon End Luton Bedfordshire LU2 8NX United Kingdom Fax: 020 7638 2159 EMI GROUP: Martin Bandier Steps Down in EMI Music Positions ----------------------------------------------------------- Martin Bandier has resigned as chairman and joint CEO of EMI Music Publishing. As disclosed in January 2005, Roger Faxon, who is currently president and joint CEO of EMI Music Publishing, will succeed Bandier as sole CEO of EMI Music Publishing on April 1, 2007. "Over the last 17 years, Marty Bandier has led the development of EMI Music Publishing into a world-leading force," Eric Nicoli, chairman of EMI Group, said. "Roger Faxon and his highly talented management team will drive this outstanding business to new heights in the years ahead." Mr. Bandier said: "It is very satisfying to be leaving the company in such a strong position. It's a good moment to pass the torch. I wish EMI and Roger all the best for a bright future." Mr. Bandier's contract with EMI runs until April 2007 when he will leave the company. People familiar with the matter told Ethan Smith of The Wall Street Journal that Mr. Bandier has been contemplating his resignation for at least a couple of months now. They said that the collapse of merger talks between EMI Group and Warner Music Group Corp. partly contributed to Mr. Bandier's dissatisfaction, the Journal relates. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. * * * As reported in the TCR-Europe on Oct. 24, Moody's Investors Service downgraded EMI Group plc's senior debt and guaranteed debt ratings to Ba2 from Ba1. At the same time Moody's assigned a Ba2 Corporate Family Rating to EMI. The downgrade is based on Moody's expectation that EMI's debt protection measurements will not improve near-term to a level commensurate with the Ba1 rating category. Moody's said the rating outlook is now stable. EMI GROUP: Revenue Decline Spurs S&P to Lower Ratings to BB ----------------------------------------------------------- Standard & Poor's Rating Services lowered to 'BB' from 'BB+' its long-term corporate and senior unsecured ratings on U.K.-based music producer and distributor EMI Group PLC, following an annual review. The outlook is negative. "The rating action reflects our concerns about EMI's ability to rapidly improve debt measures, which remain tight for the rating category," said Standard & Poor's credit analyst Patrice Cochelin. Worldwide recorded music revenues were down by 4% in first-half 2006. Falling sales of recorded music in physical formats (notably CDs, which still represent about 80% of industry sales) and physical and digital piracy remain the industry's main challenges, despite strong growth in digital music sales (11% of industry revenues in first-half 2006). EMI has about 13% of the global recorded music market. A comparatively weak release schedule pushed recorded music revenues down by 4%. Although Standard & Poor's expects the company's strong second-half release schedule and a less challenging comparison to support year-on-year revenue growth in the balance of the financial year, the rating agency expects continued weakness in EMI's full-year discretionary cash flow generation after restructuring (GBP60 million) and dividends (about GBP64 million). EWER DESIGN: Names Keith Aleric Stevens Liquidator -------------------------------------------------- Keith Aleric Stevens of Wilkins Kennedy was appointed Liquidator of Ewer Design Limited on Oct. 17 for the creditors' voluntary winding-up procedure. Headquartered in London, United Kingdom, Ewer Design Limited -- http://www.ewerdesign.com/-- offers garden design and maintenance services. The company also installs lighting and irrigation. FEENIX COURIERS: Names Jeremy Nicholas Bleazard as Administrator ---------------------------------------------------------------- Jeremy Nicholas Bleazard of XL Business Solutions Ltd. was named administrator of Feenix Couriers Ltd. (Company Number 03001453) on Oct. 16. The administrator can be reached at: Jeremy Nicholas Bleazard XL Business Solutions Limited 1st Floor 2-4 Market Street Cleckheaton BD19 5AJ United Kingdom Tel: 01274 870101 E-mail: enquiries@xlbs.co.uk jbleazard@xlbs.co.uk Feenix Couriers Ltd. can be reached at: c/o Lishman Sidwell Campbell & Price Marlborough Ho Manningham La Bradford West Yorkshire BD8 7LD United Kingdom Fax: 01274 870606 FP&S LIMITED: Brings In PwC as Joint Administrators --------------------------------------------------- Stephen Mark Oldfield and Stephen Andrew Ellis of PricewaterhouseCoopers LLP were appointed joint administrators of FP&S Ltd. (Company Number 05218825) on Oct. 16. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. FP&S Ltd. can be reached at: Brierly Place 160-162 New London Road Chelmsford Essex CM2 0AP United Kingdom Tel: 01362 851 691 GANDALF IT: Appoints Martin Henry Linton to Administer Assets ------------------------------------------------------------- Martin Henry Linton of Leigh & Co. was appointed administrator of Gandalf IT Ltd. (Company Number 4939153) on Oct. 6. The administrator can be reached at: Martin Henry Linton Leigh & Co. Brentmead House Britannia Road London, N12 9RU United Kingdom Tel: 020 8446 6767 Gandalf IT Ltd. can be reached at: Gainsborough House 2 Sheen Road Richmond Surrey TW9 1AE United Kingdom Tel: 020 8973 2400 Fax: 020 8973 2402 GATE & FENCING: Nominates Liquidator from Mayfields Insolvency -------------------------------------------------------------- Paul John Webb of Mayfields Insolvency Practitioners was nominated Liquidator of Gate & Fencing Fabrications Limited on Oct. 17 for the creditors' voluntary winding-up procedure. The company can be reached at: Gate & Fencing Fabrications Limited Sams La West Bromwich West Midlands B70 7ED United Kingdom Tel: 012 1525 2386 Fax: 0121 525 8538 GRAHAM HOLDINGS: Taps Begbies Traynor to Administer Assets ---------------------------------------------------------- D. F. Wilson and J. N. R. Pitts of Begbies Traynor were appointed joint administrators of Graham Holdings Ltd. (Company Number 04415228) on Oct. 16. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Graham Holdings Ltd. can be reached at: Elizabeth House 13-19 Queen Street Leeds West Yorkshire LS1 2TW United Kingdom Tel: 0113 237 5560 Fax: 0113 237 5561 HERTFORDSHIRE LEGAL: Nominates Ninos Koumettou as Liquidator ------------------------------------------------------------ Ninos Koumettou of AlexanderLawsonJacobs was nominated Liquidator of Hertfordshire Legal Services Ltd. (formerly The Will Bureau Ltd.) on Oct. 17 for the creditors' voluntary winding-up procedure. The company can be reached at: Hertfordshire Legal Services Ltd. 435 Green Lanes Haringey London N4 1HA United Kingdom Tel: 020 8341 9704 Fax: 020 8340 9714 HILLSIDE MOULDINGS: Creditors Confirm Liquidator's Appointment -------------------------------------------------------------- Creditors of Hillside Mouldings (Hereford) Limited confirmed on Oct. 19 the appointment of Neil Francis Hickling of Smith & Williamson Limited as the company's Liquidator. Headquartered in Hereford, United Kingdom, Hillside Mouldings (Hereford) Limited manufactures plastic injection molding. ICICI BANK: Moody's Assigns D- Financial Strength Rating -------------------------------------------------------- Moody's Investors Service assigned first time foreign currency bank deposit ratings of Baa1/Prime-2 and a D- bank financial strength rating to ICICI Bank UK Ltd. The outlooks on all ratings are stable. The Baa1/P-2 long- and short-term bank deposit ratings of ICICI Bank UK Ltd. are the result of joint probabilities of default that are incorporated into ICICI Bank UK Ltd.'s bank deposit ratings. These include a) the extremely high level of expected support from ICICI Bank Ltd. (rated Ba2 for foreign currency bank deposits, Baa2 for foreign currency debt and C- for bank financial strength), b) the likelihood of a moratorium on debt in India, reflected by the Baa2 foreign currency debt ceiling, and c) Moody's opinion on the likelihood of support from ICICI Bank Ltd. being caught up in any moratorium put in place by the Indian financial authorities. ICICI Bank UK Ltd. is the largest operation outside India of the ICICI group and is an integral part of the group's international strategy and shares the same name and brand. Moody's also believes that the Reserve Bank of India may also be forthcoming in case of need given the possible reputational damage to the parent bank and any potential systemic risks for the Indian banking system. The D- bank financial strength rating reflects the banks improving financial fundamentals, as well as the relatively undeveloped franchise within the U.K. and its good positioning to benefit from increasing Indian investment into the U.K. The bank operates through a two-pronged retail strategy in the U.K. with a full suite of banking products being offered, primarily to the Indian community, through a small branch network, and a deposit product that is offered through the Internet. The corporate banking business is centered on providing services to Indian corporates who are investing in the U.K. including M&A advice, FX business and syndicating Indian paper. The banks financial fundamentals are solid with good levels of profitability (recurring earning power reached almost 1.5% in the year to end-March 2006), good efficiency, and good levels of capitalisation. Asset quality is excellent, reflecting the relative unseasoning of the portfolio as well the conservative criteria that the bank has in place, although the bank does have high lending concentrations. Based in London, England, ICICI Bank UK Ltd. had total assets of USD3.4 billion (EUR2.7 billion) at end-September 2006. INTERFACE INC: Improving Performance Cues S&P to Lift Rating ------------------------------------------------------------ Standard & Poor's Ratings Services raised its ratings on Atlanta, Ga.-based carpet manufacturer Interface Inc. The corporate credit rating was raised to 'B' from 'B-', and the rating outlook is positive. Total debt outstanding at Oct. 1, 2006, was about US$441 million. "The upgrade follows our review of Interface and incorporates the company's improving operating performance and credit metrics, as well as the recovery of the corporate office market, which accounts for a significant amount of Interface's revenues," said Standard & Poor's credit analyst Susan H. Ding. In addition to robust demand in the office sector, Interface's operations benefited from its strategy to diversify its revenue base into other end markets, including the educational, government, and health care sectors. The company also intends to continue its focus on carpet tiles, which is the fastest growing segment of the carpet market and has been the main driver of increased revenues for Interface. While the company remains highly dependent on the corporate sector, it is diversifying its concentration in that segment and has realized some success in expanding to the healthcare, education, and government sectors. Interface is also expanding its carpet tile sales into the residential market. Standard & Poor's expects it will take some time before this segment becomes a revenue and profit contributor. Standard & Poor's also recognizes that Interface has made considerable efforts to reduce operating expenses and to rationalize capacity in all of its business segments. Although revenue trends and margins are better, rising petroleum-based raw material costs continue to be a rating concern. For the 12 months ended Oct. 1, 2006, revenues improved by about 9% from the prior-year period, and the operating margin (before depreciation and amortization) also improved, to 12.7% from 12.3%, despite higher operating and raw material costs. JJR MARKETING: Brings In Liquidators from Harrisons --------------------------------------------------- P. R. Boyle and J. C. Sallabank of Harrisons were appointed Joint Liquidators of JJR Marketing Communications Ltd. on Oct. 20 for the creditors' voluntary winding-up procedure. The company can be reached at: JJR Marketing Communications Ltd. 2-6 Easthampstead Road Wokingham Berkshire RG40 2EG United Kingdom Tel: 0118 977 1366 J WILKINSON: Hires TCE Harrison to Liquidate Assets --------------------------------------------------- TCE Harrison of Tom Harrison Insolvency Services was appointed Liquidator of J Wilkinson Brickwork Limited on Oct. 18 for the creditors' voluntary winding-up proceeding. The company can be reached at: J Wilkinson Brickwork Limited 50 Winding Way Leeds LS177RQ United Kingdom Tel: 011 3267 4810 J WILLARD: Nominates Neville Richard Eckley as Liquidator --------------------------------------------------------- Neville Richard Eckley was nominated Liquidator of J Willard & Son Limited on Oct. 17 for the creditors' voluntary winding-up proceeding. Headquartered in Wallington, United Kingdom, J Willard & Son Limited provides plastering services. KESTREL GREEN: Taps RSM Robson as Joint Administrators ------------------------------------------------------ Gerald Clifford Smith and Dominic James Christie-Brown of RSM Robson Rhodes LLP were appointed joint administrators of Kestrel Green Ltd. (Company Number 01623633) on Oct. 13. RSM Robson Rhodes LLP -- http://www.robsonrhodes.co.uk/-- provides a wide range of auditing, assurance, advisory and compliance services for both private and public sectors. The firm is a member of the RSM International, the world's sixth largest international organization of accountants and business advisers. Kestrel Green Ltd. can be reached at: Unit 51-52 Planetary Industrial Estate Planetary Road Willenhall West Midlands WV13 3XW United Kingdom Tel: 01902 866 000 Fax: 01902 866 222 KNOTBOX RETAIL: Stephen M. Rout Leads Liquidation Procedure ----------------------------------------------------------- Stephen M. Rout of Stephen M. Rout & Company was appointed Liquidator of Knotbox (Retail) Limited on Oct. 17 for the creditors' voluntary winding-up proceeding. Headquartered in Stamford, United Kingdom, Knotbox (Retail) Limited designs, manufactures and retails furniture. LANGUAGE LINE: S&P Assigns B Rating on Proposed Bank Facility ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' bank loan and '2' recovery rating to Language Line Inc.'s proposed amended and restated US$280 million senior secured bank facility. The secured bank loan rating is 'B', with a recovery rating of '2', indicating expectations of a substantial (80%-100%) recovery of principal in the event of a payment default. At the same time, Standard & Poor's affirmed its ratings on Language Line Holdings Inc., including its 'B' corporate credit rating, and on its Language Line Inc. operating subsidiary. The outlook on all ratings is negative. "When the transaction is completed, Standard & Poor's presently expects to revise its outlook on the company to stable from negative, reflecting improving operating performance, slightly reduced debt leverage, and enhanced liquidity," said Standard & Poor's credit analyst Hal F. Diamond. Monterey, Calif.-based Language Line Holdings had total debt of US$477 million as of Sept. 30, 2006. The ratings reflect Language Line's high debt leverage and the price-competitive nature of the over-the-phone interpretation market. These concerns are only partially mitigated by the company's strong position in the outsourced OPI market, favorable demographic trends, and good discretionary cash flow. Standard & Poor's expects to revise the negative outlook on the ratings to stable from negative when the amendment is completed. An outlook revision to positive is not anticipated for the foreseeable future because of the sharp increase in cash interest payments commencing in 2009. On the other hand, a noticeable decline in average revenue per billed minute without commensurate increases in billed minutes could prompt a revision of the outlook back to negative, especially if the company does not continue to reduce leverage. LOUGH JOINERY: Claims Filing Period Ends Nov. 17 ------------------------------------------------ Creditors of Lough Joinery Ltd. have until Nov. 17 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 Stephen P. J. White at: White & Co. 20 Cornhill Lincoln LN5 7HB United Kingdom The company can be reached at: Lough Joinery Ltd. 16 Crofton Drive Lincoln Lincolnshire LN3 4NR United Kingdom Tel: 01522 541 090 Fax: 01522 514 140 LUDGATE FUNDING: S&P Assigns BB Ratings on GBP5-Million Notes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the GBP375 million (equivalent) mortgage- backed floating-rate notes series 2006-FF1 to be issued by Ludgate Funding PLC. At the same time, Ludgate Funding will issue GBP2.8 million of excess spread rated notes. The collateral for this transaction comprises a pool of first- ranking mortgages secured over freehold and leasehold, owner-occupied, and "buy-to-let" (29.47%) properties in the U.K. Freedom Funding Ltd. originated the mortgage loans. Freedom Funding was established in May 2004. In July 2006, Merrill Lynch International Bank, its current ultimate parent, acquired 100% of the shares of Freedom Funding. Freedom Funding lends primarily to prime borrowers with a focus on self-certified borrowers and the buy-to-let sector. A small portion of its business is focused on borrowers with light adverse credit history, including borrowers with previous bankruptcies or individual voluntary arrangements, county court judgments, and arrears. This is Freedom Lending's first securitization of a portfolio of mortgages using the Ludgate Funding mortgage asset-backed MTN program. The proceeds of the class S notes will be used to fund the initial cash reserve, and to meet the issuer's costs and expenses in relation to the notes. Standard & Poor's expects to rate the notes on a segregated basis, that is, the rating on each series will be independent from the rating on each previous and subsequent series. This is the first series to be issued. Ratings List Ludgate Funding PLC GBP375.0 Million (Equivalent) Mortgage-Backed And GBP2.8 Million (Equivalent) Excess Spread Floating-Rate Notes Series 2006-FF1 Prelim. Prelim. Class rating amount (Mil. GBP equiv.) ----- ------ ------ A1 AAA 114.35 A2 AAA 233.95 B AA 12.00 C A 7.65 D BBB 4.80 E BB 2.25 S(1) BB 2.80 MERCs AAA N/A (1) The cash reserve fund will be funded at closing by using part of the issuance proceeds from the class S notes. The class S notes will be repaid through excess spread. N/A-Not applicable. MARK RICHENS: Names Stephen P. J. White Liquidator -------------------------------------------------- Stephen P. J. White was appointed Liquidator of Mark Richens Architectural Salvage and Reclamations Limited on July 31 for the creditors' voluntary winding-up proceeding. The company can be reached at: Mark Richens Architectural Salvage and Reclamations Limited Long Acres Swinderby Road Collingham Newark Nottinghamshire NG237NX United Kingdom Tel: 01636 893 930 MARTRANS TRAILERS: Calls In Liquidator from Haines Watts -------------------------------------------------------- Timothy Calverley of Haines Watts was appointed Liquidator of Martrans Trailers Limited (formerly Martrans Limited) on Oct. 19 for the creditors' voluntary winding-up proceeding. Headquartered in Gainsborough, United Kingdom, Martrans Trailers Limited -- http://martranstrailers.com/-- designs and manufactures a range of trailers for the road transport industry such as drawbar, SDU and tipping trailers. MASONLITE LIMITED: Taps Administrators from Smith & Williamson -------------------------------------------------------------- Gregory Andrew and Stephen John Tancock of Smith & Williamson Ltd. were appointed joint administrators of Masonlite Ltd. (Company Number 570959) on Oct. 18. Smith & Williamson -- http://www.smith.williamson.co.uk/-- provides investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. Masonlite Ltd. can be reached at: 36 Second Avenue Chatham Kent ME4 5AX United Kingdom Tel: 01634 812 751 Fax: 01634 811 883 MET-TRAFFIC LIMITED: Taps Liquidator from Haines Watts ------------------------------------------------------ Andrew Appleyard of Haines Watts was appointed Liquidator of Met-Traffic Limited on Oct. 16 for the creditors' voluntary winding-up procedure. The company can be reached at: Met-Traffic Limited Unit 18 Hamilton Road Sutton In Ashfield Nottinghamshire NG175LD United Kingdom Tel: 01623 514 440 Fax: 01623 514 040 MONEY PARTNERS: Fitch Places BB Rating on GBP14.7-Million Notes --------------------------------------------------------------- Fitch Ratings placed expected ratings to Money Partners Securities 4 Plc GBP600 million-equivalent mortgage-backed floating-rate notes: -- GBP-equivalent 496.50 million Class A1: AAA; -- A1 detachable coupons: AAA; -- GBP-equivalent 46.2 million Class M1 notes due 2039: AA; -- GBP-equivalent 27 million Class M2 notes due 2039: A; -- GBP-equivalent 15.6 Mln. Class B1 notes due 2039: BBB; and -- GBP-equivalent 14.7 million Class B2 notes due 2039: BB. The final ratings are contingent upon receipt of final documents conforming to information already received and satisfactory legal opinion. The collateral underlying the notes in this transaction consists of Money Partners Holdings and Kensington Mortgages Limited originations. The expected ratings are based on the quality of the collateral, available credit enhancement, the underwriting criteria of MPH and KML, the primary servicing capabilities of Homeloan Management Ltd. and the special servicing capabilities Kensington Mortgages Ltd. and the sound legal structure of the transaction. Credit enhancement for the Class A1 notes totals 18.6% and will be provided by the subordination of the Class M1, Class M2 Class B1, Class B2 and an initial reserve fund of representing an initial reserve fund of 1.35% of the initial issue size. The reserve fund is expected to increase to a target amount of GBP12.6 million, funded from available excess spread. To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its U.K. Residential Mortgage Default Model III. The agency also modeled cash flows using the results of the default model with structural stresses including various prepayment and interest rate scenarios. The cash flow tests showed that each Class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall and can retire principal by legal final maturity. MOSES GATE: Hires Begbies Traynor as Joint Administrators --------------------------------------------------------- D. Bailey and Kevin Coates of Begbies Traynor were appointed joint administrators of Moses Gate Welding Works Ltd. (Company Number 00975115) on Oct. 18. Headquartered in Manchester, United Kingdom, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Moses Gate Welding Works Ltd. can be reached at: Unit 7 Fishbrook Industrial Estate Stoneclough Road Kearsley Bolton Lancashire BL4 8EJ United Kingdom Tel: 01204 572 657 Fax: 01204 862 421 N ROURKE & SON: Nominates Liquidator from Horsfields ---------------------------------------------------- John Hendrik Chadwick Lee of Horsfields was nominated Liquidator of N Rourke & Son (Engineering) Limited on Oct. 11 for the creditors' voluntary winding-up procedure. Headquartered in Manchester, United Kingdom, N Rourke & Son (Engineering) Limited -- http://www.nrourke.co.uk/-- undertakes all types of fabrication work including pipework, dust and fume extraction systems, silo, structural steel, sheet metal work, bulk storage tans, process vessels and bunded oil storage tanks. The company also provides a wide range of decorative wrought iron products such as gates, fences and railings. OPTIMUM BUSINESS: Creditors' Claims Due Nov. 24 ----------------------------------------------- Creditors of Optimum Business Supplies Limited have until Nov. 24 to prove their debts by sending written statements of the amount they claim to be due to them from the Company to appointed Joint Liquidators Peter James Hughes-Holland and Frank Wessely at: Vantis 81 Station Road Marlow Buckinghamshire SL7 1NS United Kingdom The company can be reached at: Optimum Business Supplies Limited 1 Crownfield Wycombe Road Saunderton Princes Risborough Buckinghamshire HP279NR United Kingdom Tel: 018 4427 4427 Fax: 01844 344533 Web: http://www.optibiz.co.uk/ OTLEY MOTORS: Appoints Begbies Traynor as Joint Administrators -------------------------------------------------------------- D. F. Wilson and J. N. R. Pitts of Begbies Traynor were appointed joint administrators of Otley Motors Ltd. (Company Number 03428916) on Oct. 16. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Otley Motors Ltd. can be reached at: Cross Green Otley West Yorkshire LS21 1HE United Kingdom Tel: 01943 465 222 Fax: 01943 850 632 PLANTATION LIGHTING: Claims Registration Ends March 19, 2007 ------------------------------------------------------------ Creditors of Plantation Lighting Limited (formerly Korpush Limited) have until March 19, 2007, to send in full particulars of their debts or claims, and the names and addresses of their Solicitors (if any) to appointed Liquidator Michael F. McCarthy at: Walletts Insolvency Services 2-6 Adventure Place Hanley Stoke-on-Trent ST1 3AF United Kingdom Headquartered in Rugeley, United Kingdom, Plantation Lighting Limited manufactures household lamps and light shades. PLYFORM PRODUCTS: Barclays Bank Taps Receivers from Baker Tilly --------------------------------------------------------------- Barclays Bank PLC appointed Andrew Martin Sheridan and Matthew Richard Meadley Wild of Baker Tilly joint administrative receivers of Plyform Products Ltd. (Company Number 02578333) on Oct. 17. Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing and other services for mid-cap and smaller publicly listed companies and private companies, particularly those expanding into new foreign markets. Services include business and financial planning, tax-related services, corporate finance, litigation support, turnaround services, and technology consulting. Headquartered in Westbury, England, Plyform Products Ltd. manufactures pre-formed plywood and veneer laminated shapes. PROFESSIONAL SOLUTIONS: Hires Liquidator from Sinclair Harris ------------------------------------------------------------- Jonathan Sinclair of Sinclair Harris was appointed Liquidator of Professional Solutions U.K. Limited on Oct. 10 for the creditors' voluntary winding-up procedure. Headquartered in London, United Kingdom, Professional Solutions U.K. Limited -- http://www.prosolutionsuk.co.uk/-- offers vehicle matching and advertising services. PYECROFT ENGINEERING: Taps Smith & Williamson as Administrators --------------------------------------------------------------- Roger Tulloch and Robert Horton of Smith & Williamson Ltd. were appointed joint administrators of Pyecroft Engineering Ltd. (Company Number 05095180) on Oct. 17. Headquartered in Guildford, United Kingdom, Smith & Williamson - - http://www.smith.williamson.co.uk/-- provides investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. Pyecroft Engineering Ltd. can be reached at: Basin Road North Portslade Brighton East Sussex BN41 1WA United Kingdom Tel: 012 7341 5558 Fax: 012 7342 3545 R S GILLETT: Liquidator Sets Nov. 30 Claims Bar Date ---------------------------------------------------- Creditors of R S Gillett Ltd. have until Nov. 30 to send their names and addresses, with particulars of their debts or claims, together with particulars of their Solicitors (if any) to appointed Liquidator Graham Geoffrey King at: Kings 23 Porters Wood St. Albans Hertfordshire AL30 6PQ United Kingdom Headquartered in London, England, RS Gillett retails and installs car audio and mobile phones. SCOOTABOUT LIMITED: Appoints Liquidators from Begbies Traynor ------------------------------------------------------------- D. F. Wilson and J. N. R. Pitts of Begbies Traynor were appointed Joint Liquidators of Scootabout Limited on Oct. 12 for the creditors' voluntary winding-up procedure. Headquartered in Leeds, United Kingdom, Scootabout Limited -- http://www.scootabout.net/-- is the only authorized dealer of Peugeot scooters in Leeds. Scootabout stocks an extensive range of Peugeot, Sym, Malaguti and Vulcan scooters, along with a wide range of accessories. The company also offers scooter servicing. SEA CONTAINERS: Employs Young Conaway as Counsel ------------------------------------------------ Sea Containers Ltd. and its debtor-affiliates asked the U.S. Bankruptcy Court for the District of Delaware permission to employ Young Conaway Stargatt & Taylor, LLP, as their counsel, nunc pro tunc to Oct. 15. Edwin S. Hetherington, vice president, general counsel and secretary of Sea Containers, Ltd., states that the Debtors want Young Conaway as their counsel because the firm has extensive experience and knowledge in the field of debtors' and creditors' rights and business reorganizations under Chapter 11 of the Bankruptcy Code. Young Conaway will: (a) provide legal advice with respect to the Debtors' powers and duties as debtors-in-possession in their continued operation of their business and management of their properties; (b) prepare and pursue confirmation of a plan and approval of a disclosure statement; (c) prepare on the Debtors' behalf necessary applications, motions, answers, orders, reports and other legal papers; (d) appear in Court and protect the Debtors' interests before the Court; and (e) perform all other legal services for the Debtors which may be necessary and proper in the Chapter 11 proceedings. The Debtors will pay Young Conaway on an hourly basis, plus reimbursement of actual and necessary expenses and charges incurred. The principal attorneys and paralegal designated to represent the Debtors and their current hourly rates are: Robert S. Brady $515 Edwin J. Harron $460 Edmon L. Morton $380 Sean T. Greecher $270 Sanjay Bhatnagar $230 Thomas Hartzell $175 The Debtors retained Young Conaway in September 2006 and they paid the firm a $150,000 retainer in connection with the planning and preparation of initial documents, payment of Chapter 11 filing fees, and the proposed postpetition representation of the Debtors. Robert S. Brady, Esq., a partner at Young Conaway Stargatt & Taylor, LLP, assures the Court that his firm holds no interest adverse to the Debtors, their creditors or any other parties-in- interest, and it is a "disinterested person," as defined in Section 101(14) of the Bankruptcy Code. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Wants Court to Okay PwC as Investment Banker ------------------------------------------------------------ Edwin S. Hetherington, vice president, general counsel and secretary of Sea Containers Ltd., says the Debtors need the services of seasoned and experienced restructuring advisors, investment bankers and accounting and tax financial advisors that are familiar with the Debtors' businesses and operations, the Chapter 11 process, and the various issues related to cross- border insolvency proceedings. By this application, the Debtors seek the Court's authority to employ PricewaterhouseCoopers LLP as their restructuring advisor, investment banker, and accounting and tax advisor, nunc pro tunc to the Petition Date. Since January 2006, PwC has provided a wide range of services to the Debtors, including reviewing the Company's business plan and banking agreements, advising the Debtors with respect to certain accounting matters, assisting the Company in refinancing certain of its indebtedness, and assisting the Company to sell certain of its businesses. Under its Restructuring Services, PwC will: (a) marshal information to develop an effective draft restructuring plan; (b) analyze and outline the Debtors' major potential financial restructuring options, including analysis of the advantages and disadvantages and summary of major issues associated with each option; (c) consider the restructuring options with the Debtors and their other advisors; (d) assist the Debtors to consult and negotiate with key financial stakeholders, regulators, rating agencies, and other parties, including preparing information and accompanying the Debtors to meetings and attending meetings on the Debtors' behalf; (e) refine the proposed restructuring plan and prepare a contingency plan; (f) assist the Debtors implement the restructuring plan and achieve a Restructuring Transaction; (g) negotiate interim amendments to existing debt facilities and note indentures, pending the negotiation and implementation of a final restructuring, assist the Debtors to define and negotiate with relevant parties the appropriate amendments while they continue to work on definitive restructuring agreements; and (h) provide other financial advisory services in relation to the restructuring, including seeking any regulatory approvals. Under its Accounting and Tax Advisory Services, PwC will: (a) assist in the preparation of the Debtors' financial information for distribution to creditors and other parties-in-interest, including: * 13-week rolling cash flow projections; * cash receipts and disbursement analysis for inclusion in the monthly operating reports; * commentary and variance analysis against budgets of company-prepared management accounts; * revised short-term and medium-term forecasts and business plans identifying any key variances from earlier submissions as appropriate; * analysis of material asset and liability accounts and financial analysis of proposed asset sales for which Court approval is sought; (b) assist with the identification and implementation of short-term cash management procedures; (c) assist with the identification and cost/benefit evaluation of material contracts and leases to enable management to assess, whether to renew or discontinue them; (d) assist in compiling the Schedules of Assets and Liabilities and Statements of Financial Affairs, and in the analysis of creditor claims by type, entity and individual claim; (e) assist in the preparation of information and financial analysis necessary for a plan of reorganization, including but not limited to assistance in the preparation of a pro-forma balance sheet, financial projections and a liquidation analysis; (f) assist in the preparation of financial information to be tabled at meetings with potential investors, banks and other secured lenders, the Official Committee of Unsecured Creditors, the United States Trustee, other parties-in-interest, including but not limited to financial projections, sensitivity analysis, recovery analysis, and other financial information; (g) assist in the preparation and maintenance of the Debtors' project plan to coordinate the financial restructuring with the operational restructuring program; (h) provide advice in the development of an appropriate tax structure in conjunction with the development of the Debtors' proposed restructuring plan: * advice on the tax impact of simplifying the inter-company loan position; * tax impact of the decision to either fund or not fund individual group companies; * whether a conversion of debt for equity could result in change of ownership issues. This requires understanding of both whether there would be a change of ownership for tax purposes and the potential downside to any change of ownership; * whether there are any tax costs associated with the disposals any of the container businesses and whether any tax planning could enhance the value of the disposals; * whether there are any tax costs associated with any non-core disposals and whether any tax planning could enhance the value of the disposals; * withholding tax implications of the proposed disposals and refinancing options; * the tax impact of transferring assets out of the Debtors as part of the restructuring process, should this be considered appropriate as a way forward; * advice on the tax impact of reorganizing and funding the pension deficit; * any other points that require tax consideration as the more detailed restructuring steps are formulated; and * general advice to the Debtors on the current tax status of the Debtors and Non-Debtor subsidiaries; and (i) provide advice or testimony on matters arising from PwC's work and provide regular updates to the Debtors. PricewaterhouseCoopers is a multi-national corporate advisory firm that provides a broad range of corporate advisory services to its clients including, services pertaining to: -- general financial advice; -- mergers, acquisitions, and divestitures; -- special committee assignments; -- capital raising; and -- corporate restructurings. Mr. Hetherington notes PwC has resources and restructuring expertise in the United Kingdom and other countries throughout the world. He adds the firm and its senior professionals have extensive experience in the reorganization and restructuring of troubled companies. PwC will charge a GBP50,000 Restructuring Services monthly fee, a Degearing Event fee, and a Restructuring Transaction Fee equal to 1.5% of the total par amount of Restructured Debt. PwC employees providing restructuring services will keep time records describing their general daily activities, the identity of persons performing those activities, and the estimated amount of time expended on those activities on a daily basis. The firm will charge the Debtors per hour for Accounting and Tax Advisory Services: Partner GBP536 Director GBP442 Senior Manager GBP338 Manager GBP270 Executive GBP212 Analyst GBP130 PwC's accounting and tax professionals will provide a description of the services rendered and the amount of time spent on each date, in half-hour increments. PwC will seek reimbursement for all out-of-pocket expenses, including reasonable fees and expenses of its counsel, travel and lodging expenses, word processing charges, messenger and duplication services, facsimile expenses, and other customary expenditures incurred. Before the Petition Date, PwC received approximately GBP4,400,000 for services rendered and expenses incurred. PwC will apply any excess amounts towards fees and expenses that accrue postpetition. Steven Pearson, a partner at PricewaterhouseCoopers LLP, assures the Court that PwC is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code, and does not hold or represent an interest adverse to the Debtors' estates. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Taps Kirkland & Ellis as Litigation Counsel ----------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates sought the U.S. Bankruptcy Court for the District of Delaware's permission to employ Kirkland & Ellis LLP as their special conflicts litigation counsel for litigation relating to GE SeaCO SRL, nunc pro tunc to Oct. 15. Edwin S. Hetherington, vice president, general counsel and secretary of Sea Containers Ltd., states that the Debtors want Kirkland to prosecute or defend litigation or contested matters involving GE Capital Corporation and some of its subsidiaries concerning GE SeaCo and other matters adverse to GE. Mr. Hetherington notes that the Debtors' general reorganization and bankruptcy counsel, Sidley Austin LLP, represents GE in matters wholly unrelated to the Debtors and their Chapter 11 cases. Because Sidley also represents the Debtors in connection with all operational and substantive aspects of the Chapter 11 proceedings, including with respect to issues raised by GE, the Debtors want Kirkland to serve as their special conflicts litigation counsel to the limited extent that underlying litigation or certain contested matters are commenced by GE or the Debtors during the pendency of the Chapter 11 proceedings. Mr. Hetherington assures the Court that Sidley and Kirkland have discussed Kirkland's role to avoid duplication of work and expenses. The two firms will confer on certain matters to minimize duplicative efforts and billing. Kirkland's current hourly rates are: Attorneys $295 - $825 Paraprofessionals $115 - $255 The firm will also charge the Debtors for all costs and expenses incurred, including charges on mails, travels, overtime expenses, "working meals," and other overhead expenses. Kirkland received a $100,000 retainer for its prepetition services. David L. Eaton, Esq., a partner at Kirkland & Ellis, assures the Court that his firm does not hold or represent any interests adverse to the Debtors and their estates. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Moody's Withdraws Ratings on Chapter 11 Filings --------------------------------------------------------------- Moody's downgraded all ratings of Sea Containers Ltd., including the senior unsecured rating to Ca from Caa3. Moody's will withdraw all ratings because Sea Containers and two of its subsidiaries filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code on Oct. 15. The downgrades reflect Moody's belief that holders of the unsecured notes are likely to recognize a meaningful loss upon the resolution of the bankruptcy proceedings. Holders of Sea Containers unsecured notes of US$386 million, and the company's pension trusts are expected to be the largest creditors. Sea Containers is a holding company and its operating subsidiaries were not included in the bankruptcy filing. The senior unsecured notes, however, do not benefit from upstream guarantees from the operating subsidiaries. In Moody's view, the value of Sea Containers 50% interest in GE SeaCo will be a primary contributor of value in any debt reorganization plan, although there is considerable uncertainty in value. Sea Containers has not filed financial statements for some time (last filed Form 10-Q for the third quarter of 2005); however, it recently filed the GE SeaCo 2005 annual report (Form 8-K dated Sept. 26). At December 31, 2005, GE SeaCo assets totaled US$1.3 billion, including US$1.1 billion of marine containers, with total debt of US$939 million including advances due to the parent companies. There have been no recent sales of large marine container fleets; however, applying the current market multiples for TAL International Group, Inc., to GE SeaCo's 2005 financial statements, implies a possible value for Sea Containers 50% interest in the US$100 million to US$200 million range. Moody's notes that changes in the GE SeaCo container fleet or lease book subsequent to December 31, 2005, could affect the value. Separately, however, General Electric Capital Corporation, the 50% partner in GE SeaCo, notified Sea Containers that GECC will exercise its right to purchase Sea Containers' 50% equity interest at a fair market value not disclosed. This notice was made prior to Sea Containers' bankruptcy filing. GECC believes a change of control, as defined by the GE SeaCo Member's Agreement, occurred upon the resignation of Sea Containers former CEO. According to Sea Containers, it will contest GECC's interpretation of the Members Agreement. In addition to the senior unsecured notes, Sea Containers is liable for certain debt obligations of its operating subsidiaries, including approximately US$60 million of term loans secured by first lien mortgages on ten vessels. Some of these vessels are trading currently while others are laid up. While the collateral coverage on a loan-by-loan basis is not clear, Moody's does not anticipate significant residual claims. While adequate to cover the secured debt, Moody's does not expect these vessels nor the residual value of the containers pledged to the recently amended Sea Containers' container securitization facility to provide significant additional recovery value relative to the liabilities of Sea Containers. The remaining unencumbered containers owned by Sea Containers (valued at US$15 million by the company) might also contribute if not used as a source of liquidity during the bankruptcy proceedings. Debt list: Sea Containers Ltd. Ratings downgraded and to be withdrawn: * Corporate Family, to Ca from Caa2 * Senior Unsecured, to Ca from Caa3 * Issuer Rating, to Ca from Caa3 Sea Containers Ltd. headquartered in Hamilton Bermuda, is the franchisee-operator of the Great North Eastern Railroad in the U.K., a lessor of cargo containers to the shipping industry, and a 50% co-owner of GE SeaCo, a container leasing joint venture between Sea Containers and General Electric Capital Corp. SHAW TAX: Brings In Moore Stephens to Administer Assets ------------------------------------------------------- Mark Elijah Thomas Bowen and Nigel Price of Moore Stephens LLP were appointed joint administrators of Shaw Tax (London) Ltd. (Company Number 05226172) on Oct. 12. Headquartered in Birmingham, United Kingdom, Moore Stephens -- http://www.moorestephens.co.uk-- offers audit, business support, corporate finance, corporate recovery, dispute analysis, financial services, insurance broking, IT consultancy, pensions audit, risk advisory services, tax and trusts & estates services. Its U.K. network comprises over 1,400 partners and staff. Shaw Tax (London) Ltd. can be reached at: Harborne Court 67-69 Harborne Road Birmingham West Midlands B15 3BU United Kingdom Tel: 0121 233 2557 SIBACADEMFINANCE PLC: Fitch Places B Rating on US$1-Bln Notes ------------------------------------------------------------- Fitch Ratings placed Sibacademfinance Plc's US$1 billion loan participation notes issuance program ratings of Long-term B and Short-term B. At the same time, Fitch has assigned the upcoming issue under the program of three-to-five year EUR-denominated senior unsecured notes expected ratings of Recovery RR4 and Long-term B. The notes are to be used solely for financing a loan to Russia- based Sibacadembank, which is rated Issuer Default B with a Stable Outlook, Short-term B, Individual D, and Support 5. The final ratings of the issue are contingent upon receipt of final documentation conforming materially to information already received. Fitch also today affirmed SAB's ratings. Sibacademfinance PLC will only pay noteholders principal and interest received from SAB under the loan agreement. It will charge certain rights and interests to J.P. Morgan Corporate Trustee Services Limited for the benefit of the noteholders under a trust deed and the loan agreement. Its claims under the loan agreement will rank at least equally with the claims of other senior unsecured creditors of SAB, save those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application. Under Russian law, the claims of retail depositors rank above those of other senior unsecured creditors. At end-H106, retail deposits accounted for 32% of SAB's total liabilities, according to the bank's IFRS accounts, or 37% of the combined liabilities of SAB and Uralvneshtorgbank, with which SAB plans to merge in 2006 or Q107. The senior facility agreement, which defines terms of senior loans made by Sibacademfinance to SAB under the program, contains covenants restricting mergers and disposals by SAB and specifies that transactions between the bank and its affiliates must be done on market terms, with aggregate loans to affiliates not to exceed 10% of total loans. Dividend payments by the bank and its subsidiaries are limited to 50% of net income for the reporting period. The loan agreement also contains a cross default clause, which is triggered by overdue debt of US$10 million or more, and a negative pledge clause, which limits securitizations to 15% of assets. SAB also covenants to maintain a minimum Basel I total capital adequacy ratio of 11%. SAB is one of the leading banks in the Siberian Federal District and ranked 31st in Russia by total assets at end-H106. Business of both banks is focused on lending to local retail customers and small and medium-sized enterprises. Three individuals together hold a majority stake in the voting stock of SAB, and will also have a majority stake in the merged bank, to be called URSA-Bank. The EBRD currently has a blocking 25% stake in SAB, and the EBRD and Germany's DEG are expected to hold a combined stake of at least 25% stake in URSA-Bank from April 2007. SMART MANUFACTURING: Taps Harrisons as Joint Administrators ----------------------------------------------------------- P. R. Boyle and J. C. Sallabank of Harrisons were appointed joint administrator of Smart Manufacturing Ltd. (Company Number 02243807) on Oct. 18. Headquartered in Reading, United Kingdom, Harrisons -- http://www.harrisons.uk.com/-- provides advice and solutions to professional advisors who found their clients experiencing financial difficulties. Originally trading from offices in Reading and has added London, Manchester, Bristol and Derby and has associate offices in Grantham and Stockton on Tees. Smart Manufacturing Ltd. can be reached at: Clovelly Road Industrial Estate Bideford Devon EX39 3HN United Kingdom Tel: 01237 471 977 Fax: 01237 478 779 VNESHTORGBANK JSC: Renaming Subsidiaries to VTB Bank ---------------------------------------------------- Vneshtorgbank JSC will re-brand all its local and foreign units to VTB Bank to enhance the bank's international recognition, Kommersant reports. All of the company's subsidiaries will carry the "VTB Bank" brand and the base country. The group's German unit, Ost-West Handelsbank, has been renamed to VTB Bank AG Europe. The re-branding will also affect the company's units in: -- Armenia, Georgia, Ukraine and Cyprus (Russian Commercial Bank, Cyprus), -- Switzerland (Russian Commercial Bank, Zurich), -- France (BCEN-Eurobank), and -- Austria (Donau Bank). The company's London unit, Moscow Narodny Bank, would be renamed to VTB Bank Europe without indicating a definite country. The renaming, however, will not include its Georgian unit, which name will be spelled in Roman. The company decided to re-brand Vneshtorgbank to VTB Bank since the former is hardly pronounceable for foreign investors. Swiss Interbrand handled VTB's rebranding for US$2 million. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * Following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. VNESHTORGBANK JSC: Lack of Related Law Hits Promstroybank Merger ---------------------------------------------------------------- Shareholders of Vneshtorgbank JSC failed to vote over the company's merger with Industry & Construction Bank of St. Petersburg (Promstroybank), CBonds says. According to unofficial reports cited by Cbonds, the merger, is hampered by the absence of pertinent presidential law, which would allow the company to dilute the state share in its capital. Vneshtorgbank is one of the Russian strategic enterprises that need Presidential legislation before making crucial decisions. Vneshtorgbank currently owns 75% plus three shares of Promstroybank. The company has rise in operating volumes and profit in the first half of 2006 to its acquisition of Promstroybank. The regional bank's shareholders has already approved of a takeover by VTB. As reported in the TCR-Europe on Oct. 27, once a decision for takeover is reached, Vneshtorgbank will apply for approval from the Russian government. Headquartered in St. Petersburg, Russia, Industry and Construction Bank -- http://www.icbank.ru/-- engages in universal banking with a special franchise in corporate finance and investment banking. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * Following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. W H SHAW: Brings In Kroll to Administer Assets ---------------------------------------------- D. J. Whitehouse and C. P. Holder of Kroll Ltd. were appointed joint administrators of W H Shaw and Son Ltd. (Company Number 00493829) on Oct. 18. Headquartered in Leeds, United Kingdom, Kroll Limited -- http://www.krollworldwide.com/-- offers risk-consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Headquartered in Oldham, United Kingdom, W H Shaw and Son Ltd. manufactures wooden containers. WESTLEA FARM: Bank of Scotland Taps PwC as Receivers ---------------------------------------------------- Bank of Scotland appointed Colin Michael Trevethyn Haig, Anthony Victor Lomas, Robert Nicholas Lewis and David Christian Chubb of PricewaterhouseCoopers LLP joint administrative receivers of Talk Turkey Ltd. (Company Number 01509185) and Westlea Farm Foods Ltd. (Company Number 01871827) on Oct. 13. Headquartered in London, United Kingdom, PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. Westlea Farm Foods Ltd. can be reached at: 1 Abbey Street Birkenhead Merseyside CH41 5JG United Kingdom Tel: 0151 666 1660 Fax: 0151 647 4172 ********* 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 * * *