/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061102.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, November 2, 2006, Vol. 7, No. 218 Headlines A U S T R I A BOX LLC: Claims Registration Period Ends November 13 C.A.S.E. LLC: Claims Registration Period Ends November 7 ELEKTRIM SA: Repaid Debt Prompts Court to Deny Bankruptcy Motion FRANZ JOSEFS: Creditors' Meeting Slated for November 8 GALVANIA PRODUKTIONS: Distributes 10% Allocation to Creditors HASIC LLC: Linz Court Orders Business Shutdown KERSCHNER LLC: Property Manager Declares Insufficient Assets M. & L. LLC: Creditors' Meeting Slated for November 14 STURM GRAZ: Former League Champions File for Insolvency D E N M A R K TDC A/S: Posts DKK641 Million Net Income in 2006 Third Quarter F R A N C E ACXIOM CORP: Earns US$21.7 Million for Second Quarter 2007 BEARINGPOINT INC: Launches Corp. Performance Management System BORALEX INC: US Subsidiary to Secure US$80 Mil. Debt Financing COREL CORP: Pending Acquisition Spurs Moody's to Affirm Ratings TCL MULTIMEDIA: Restructuring European Operations to Cut Losses TCL MULTIMEDIA: TCL Corp Releases Thomson S.A. from Lockup G E R M A N Y BALL CORP: Earns US$101.5 Million for Third Quarter 2006 BALL CORP: Declares US$0.10 Per Share Cash Dividend BALTICA MARINE: Claims Registration Ends November 10 BREMER LANDESBANK: Fitch Affirms Individual Rating at C K & K DEUTSCHLAND: Claims Registration Ends November 10 LANDESBANK SAAR: Fitch Affirms Individual Rating at C MITSUBISHI MOTORS: Posts JPY16.1 Billion in First Half 2006 MODEHAUS SCHEDLER: Claims Registration Ends November 9 RFS DEKORBODEN: Claims Registration Ends November 12 RSS GMBH: Claims Registration Ends November 8 SEGGEWIES BAUAUSFUEHRUNG: Claims Registration Ends November 6 H U N G A R Y HUNTSMAN CORP: Moody's Rates Unit's Planned US$400MM Notes at B3 I T A L Y ALITALIA SPA: Hikes Net Debt by EUR91 Million in September MARK IV: Moody's Lowers Corporate Family Rating to B2 MAVERICK TUBE: Tenaris Deal Prompts Moody's to Withdraw Ratings TCL MULTIMEDIA: Restructuring European Operations to Cut Losses TCL MULTIMEDIA: TCL Corp Releases Thomson S.A. from Lockup UNITED TEST: Moody's Assigns (P)Ba3 Corporate Family Rating UNITED TEST: S&P Assigns BB- Rating on Proposed US$200-Mln Bonds K A Z A K H S T A N AL-BEREKE LLP: Creditors Must File Claims by Nov. 26 ALMATY GLOBAL: Proof of Claim Deadline Slated for Nov. 29 ARGUMENT LLP: Creditors Must File Claims by Nov. 26 ASTANA FINANCE: Moody's Puts Ba1 Rating on Sr. Unsecured Notes JIRENBAI LLP: Proof of Claim Deadline Slated for Nov. 26 KARAGANDINSKYI METALLURGICHESKYI: Creditors' Claims Due Nov. 29 KAZGYU COMMERCE: Claims Registration Ends Dec. 1 KOKTEM-4 LLP: Creditors' Claims Due Nov. 26 TEMIRYAZEVSKOYE LLP: Kostanai Court Starts Bankruptcy Procedure TRIK LLP: Claims Registration Ends Nov. 26 K Y R G Y Z S T A N ARSEN TRADE: Creditors' Claims Due Dec. 15 KYRGYZ AIR: Creditors' Meeting Slated for Nov. 10 L U X E M B O U R G GELDILUX-TS-2003: Fitch Affirms BB Rating on Class D Notes N E T H E R L A N D S ASTANA FINANCE: Moody's Puts Ba1 Rating on Sr. Unsecured Notes DALRADIAN EUROPEAN: Moody's Rates Class E Notes at (P)Ba3 P O L A N D ELEKTRIM SA: Repaid Debt Prompts Court to Deny Bankruptcy Motion R O M A N I A BANCA COMERCIALA: Fitch Affirms C/D Individual Rating R U S S I A ALLIANCE OF BUILDERS-A: Court Starts Bankruptcy Supervision BSPB FINANCE: Moody's Rates Loan Participation Notes at B1 BUILDING MATERIALS: Court Names N. Surtaev as Insolvency Manager DIVMET-METALLIST: Court Names M. Polyakov as Insolvency Manager FLORA OJSC: Tatarstan Bankruptcy Hearing Slated for January 16 GAZPROMBANK ZAO: Gazprom Exchanges Stake for Mosenergo Holdings KARASEVSKIY CERAMIC: Bankruptcy Hearing Slated for January 23 KRITOVSKOYE OJSC: Court Names A. Timoshkevich to Manage Assets LOGOVSKOYE CJSC: Altay Bankruptcy Hearing Slated for Feb. 26 MIBEKS OJSC: Court Names V. Yumanov as Insolvency Manager NIVA CJSC: Court Names A. Nesterov as Insolvency Manager PBB LPN: Fitch Assigns B-/RR4 Ratings to US$20-Mln Notes Issue PROGRESS CJSC: Krasnoyarsk Bankruptcy Hearing Slated for Jan. 31 ROTOR CENTRE: Court Names S. Piskarev as Insolvency Manager SEVERO-ZADONSKIY CONDENSER: Names A. Baranov to Manage Assets TAT-OIL-GAS-STROY: Court Names M. Basyrov as Insolvency Manager WIRELESS COMMUNICATION: Court Starts Bankruptcy Supervision T U R K E Y TURKIYE GARANTI: Fitch Affirms Default Rating at BB U K R A I N E ASTRABUD LLC: Court Names Viktor Denisenko as Insolvency Manager CHAJKA SANITARY: Court Names Radion Kravcheno as Liquidator DNIPROPETROVSK SILICATE: Viktoriya Androsova to Manage Assets GRIFIN LLC: Court Names Radion Kravcheno as Insolvency Manager ITM LLC: Sumi Court Names Boris Krivenko as Insolvency Manager IVANIVSKE: Court Names Oksana Venska as Insolvency Manager KRASILIV MACHINE: Court Commences Bankruptcy Supervision LOTOS CJSC: Kyiv Court Starts Bankruptcy Supervision NEVA PLANT: Hmelnnitskij Court Starts Bankruptcy Supervision SLOVYANETS ENTERPRISE: Oleksandr Shevich to Liquidate Assets TEHELEKTROSERVICE JSCCT: Volodimir Glyadchenko to Manage Assets ZORYANIJ LLC: Court Names Viktor Denisenko as Insolvency Manager U N I T E D K I N G D O M ACXIOM CORP: Earns US$21.7 Million for Second Quarter 2007 ALLEN CIVIL: Brings In Liquidators from Lines Henry ASTRAL CONSERVATORY: Taps Chantrey Vellacott as Administrators BUNDLES LIMITED: Creditors' Meeting Slated for November 6 CARNEY PRINT: Names David Paul Hudson Liquidator CB RICHARD: Inks Deal to Acquire Trammell Crow for US$2.2 Bln CB RICHARD: Acquisition Deal Spurs Moody's to Affirm Ba1 Ratings CB RICHARD: S&P Puts BB+ Ratings on CreditWatch Negative CIVIL COMMUNICATIONS: Taps Abbott Fielding as Administrators COACH COMPANIONS: Taps Robert Charles Millichap as Administrator CORUS GROUP: Confirms Issuance of Ordinary Shares and Bonds EASTMAN KODAK: Posts US$37 Million Third Quarter GAAP Net Loss EGRET CAPITAL: S&P Rates EUR12.25-Mln Class E Notes at BB- EXYCO LIMITED: Taps Peter Sargent to Liquidate Assets G.B.M. PARTS: Joint Liquidators Take Over Operations GB FRICTIONS: Creditors Confirm Voluntary Liquidation GENERAL MOTORS: Receiving 10,000 Tons of Steel from Usinas INCO LTD: CVRD Brings In New Board Following Purchase Completion INFONXX INC: Moody's Junks US$125-Mln Sec. Second Lien Term Loan INTERNATIONAL EXTENSION: Appoints Stephen M. Rout as Liquidator MANSARD MORTGAGES: Moody's Rates GBP20-Mln Class B2 Notes at Ba2 MOSAIC CO: Tender Offers Unlikely to Affect Rating, Moody's Says NCO GROUP: Moody's Junks Proposed US$200-Mln Sr. Sub. Notes NOWFIRST LTD: Claims Filing Period Ends Nov. 29 NWSG LTD.: Appoints Bridgestones as Joint Administrators PICKERING FINANCIAL: Hires Martin Henry Linton as Administrator PLANET MICRO: Names David Alexander Hole Liquidator SEA CONTAINERS: Wants Court Nod on Uniform Compensation Protocol SEA CONTAINERS: Moves to Employ Ordinary Course Professionals SECAL GROUP: Brings In BDO Stoy to Administer Assets SHERRIFF SECURITY: Creditors Confirm Liquidator's Appointment SKYEPHARMA PLC: UBS AG No Longer Holds Notifiable Interest STEALTH PRECISION: Hires Liquidator from Campbell Crossley SUPERIOR ENERGY: SESI LLC Begins Exchange for 6-7/8% Sr. Notes TAVISTOCK PRESS: Creditors' Claims Due Nov. 19 U.K. TILAPIA: Appoints Joint Administrators from PwC VISTEON CORP: Weak Earnings Forecast Cues S&P to Cut Rating to B WAINFLEET MOTOR: Brings In Tenon Recovery to Administer Assets WORLDWIDE HEALTHCARE: Creditors' Meeting Slated for November 7 * European Auto Suppliers Face Sector Consolidation - Fitch * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= BOX LLC: Claims Registration Period Ends November 13 ---------------------------------------------------- Creditors owed money by LLC Box (FN 33643a) have until Nov. 13 to file written proofs of claims to court-appointed property manager Annemarie Kosesnik-Wehrle at: Dr. Annemarie Kosesnik-Wehrle c/o Dr. Stefan Langer Oelzeltgasse 4/6 1030 Vienna, Austria Tel: 713 61 92 Fax: 713 61 92 22 E-mail: annemarie.kosesnik-wehrle@kosesnik-langer.at stefan.langer@kosesnik-langer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on Nov. 27 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 2102 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 15 (Bankr. Case No. 45 S 63/06b). Stefan Langer represents Dr. Kosesnik-Wehrle in the bankruptcy proceedings. C.A.S.E. LLC: Claims Registration Period Ends November 7 -------------------------------------------------------- Creditors owed money by LLC C.A.S.E. (FN 96665f) have until Nov. 7 to file written proofs of claims to court-appointed property manager Wolfgang Leitner at: Dr. Wolfgang Leitner c/o Dr. Helmut Platzgummer Kohlmarkt 14 1010 Vienna, Austria Tel: 533 19 39 E-mail: kanzlei@lp-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Nov. 21 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 15 (Bankr. Case No. 2 S 142/06d). Helmut Platzgummer represents Dr. Leitner in the bankruptcy proceedings. ELEKTRIM SA: Repaid Debt Prompts Court to Deny Bankruptcy Motion ---------------------------------------------------------------- A Court in Warsaw rejected the motions for bankruptcy of Elektrim S.A. filed by the company's creditors and Elektrim Telekomunikacja following a partial repayment of the company's debt, Polish News Bulletin says. Under an option agreement, Elektrim sold its 48% stake in Polska Telefonia Cyfrowa to Deutsche Telekom for EUR604 million. Deutsche Telekom, however, paid the amount to a Vienna arbitration court. On Oct. 26, Elektrim received EUR525 million of the amount and used it to repay its bondholders. The partial repayment prompted the Warsaw Court on Oct. 27 to dismiss the bankruptcy petition. "We know that court disputes are not over yet, but we have an important stage behind us," Piotr Nurowski, Elektrim Chief Executive, told Poland A.M. The Vienna court has yet to decide whether to release the remaining EUR79 million to Elektrim. Zygmunt Solorz-Zak, the company main shareholder, said Elektrim would use the remaining funds to invest in the power sector and land around Port Praski. The planned investment, Elektrim's spokespeople said, may be impeded by the current legal conflict between the company and Vivendi and Polish unit ET -- over the group's stake in PTC. Vivendi and PTC are protesting Elektrim's stake sale to Deutsche Telekom. A Vienna arbitration court, however ruled in June 2006 in favor of Elektrim, but Vivendi refused to acknowledge the court's decision. Mr. Solorz-Zak also revealed that Elektrim has filed two damage suits against Vivendi and ET and ruled out an amicable settlement. Elektrim, however, also has to pay the bondholders of its residual value -- pegged at 25% of the company's worth above EUR160 million. Estimates place the company's value at up to PLN3.7 billion. "We do not know yet whether there is any further obligation towards the bondholders," lawyer Jerzy Modrzejewski, who pleads for Elektrim, said. "This will depend on a valuation of the company." Headquartered in Warsaw, Poland, Elektrim S.A. -- http://www.elektrim.pl/-- engages in the power and telecommunication businesses. In addition to its core business activities, Elektrim also manufactures sells cables, and provides data transmission services. As reported in the TCR-Europe on Oct. 4, Elektrim filed a bankruptcy petition with the possibility of an arrangement on Sept. 29, five days before its creditors were set to launch a lawsuit over the bankruptcy. Creditors are demanding the company's liquidation and the introduction of an official bankruptcy assignee since they have not received payments from the company for nearly two years. As reported in the TCR-Europe on April 26, Law Debenture Trust Corp., in its capacity as Elektrim's bond trustee, was granted an enforcement clause, allowing bondholders to take possession of the group's assets, against which the debts have been secured. Elektrim bondholders' spokesperson Kamila Gorecka said the debt claims against the company could be satisfied through the sale of the bankrupt estate. She stressed that debt collectors must prioritize the bondholders' claims once Elektrim is declared bankrupt. Ms. Gorecka, however, noted that Elektrim's properties could be seized regardless of the bankruptcy proceedings. FRANZ JOSEFS: Creditors' Meeting Slated for November 8 ------------------------------------------------------ Creditors owed money by LLC Franz Josefs-Stueberl (FN 81737b) are encouraged to attend the creditors' meeting at 11:00 a.m. on Nov. 8 to consider the inventory of the Debtor's property and compulsory payment of the compensation. Creditors will recover 20% of their claims. The quota will be paid within two years after the adoption of the compensation project. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 14, 2005 (Bankr. Case No. 4 S 62/05b). Alexander Gruber serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Alexander Gruber Wipplingerstrasse 20 1010 Vienna, Austria Tel: 533 14 17 Fax: 533 14 17 18 E-mail: gruberkeg@law-mediation.at GALVANIA PRODUKTIONS: Distributes 10% Allocation to Creditors ------------------------------------------------------------- The Land Court of Ried im Innkreis allowed Sept. 14 the free distribution of 10% allocation to non-banking creditors of LLC Galvania Produktions (FN 198683g). Headquartered in St. Pantaleon, Austria, the Debtor declared bankruptcy on Sept. 20, 2005 (Bankr. Case No. 17 S 65/05y). Hans Estermann serves as the court-appointed property manager of the bankrupt estate. Michaela Speer represents Dr. Estermann in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Hans Estermann c/o Mag. Michaela Speer Stadtplatz 6 5230 Mattighofen, Austria Tel: 07742 / 2319 Fax: 07742 / 4984 E-mail: dr.estermann-partner@aon.at HASIC LLC: Linz Court Orders Business Shutdown ---------------------------------------------- The Land Court of Linz entered an order Sept. 14 shutting down the business of LLC HASIC (FN 247854t). Court-appointed property manager Martin Hengstschlager recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Mag. Martin Hengstschlager Fadingerstrasse 9/2 4020 Linz, Austria Tel: 78 40 80 -0 Fax: 78 40 80-4 E-mail: office@hengstschlaeger-lindner.at Headquartered in Linz, Austria, the Debtor declared bankruptcy on Sept. 7 (Bankr. Case No. 38 S 41/06t). KERSCHNER LLC: Property Manager Declares Insufficient Assets ------------------------------------------------------------ Dr. Gerhard Taufner, the court-appointed property manager for LLC Kerschner (FN 176231p), declared Sept. 14 that the Debtor's property is insufficient to cover creditors' claims. The Land Court of St. Poelten is yet to rule on the property manager's claim. Headquartered in St. Leonhard, Austria, the Debtor declared bankruptcy on April 25 (Bankr. Case No. 14 S 69/06x). The property manager can be reached at: Dr. Gerhard Taufner Bahnhofstrasse 5 3390 Melk, Austria Tel: 02752/52466 Fax: 02752/52574 E-mail: rechtsanwalt.taufner@taufner.at M. & L. LLC: Creditors' Meeting Slated for November 14 ------------------------------------------------------ Creditors owed money by LLC M. & L. (FN 219638 y) are encouraged to attend the creditors' meeting at 11:25 a.m. on Nov. 14 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of St. Poelten Room 216 2nd Floor Old Building St. Poelten, Austria Headquartered in Gaming, Austria, the Debtor declared bankruptcy on Dec. 1, 2003 (Bankr. Case No. 27 S 509/03v). Christian Kies serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Mag. Christian Kies Rathausplatz 8 3270 Scheibbs, Austria Tel: 07482/44222 E-mail: christian.kies@utanet.at STURM GRAZ: Former League Champions File for Insolvency ------------------------------------------------------- Austrian Bundesliga club Sturm Graz declared insolvency on Oct. 23 after accumulating up to EUR8.6 million in debts. The club has sought court permission to continue fulfilling their domestic fixtures. "We filed for insolvency as well as for partial discharge of our debts and for a permit to continue playing," a club employee declining to be named told Reuters. In November 2005, the club disclosed that it needed to plug a EUR2 million hole this year amid debts of about EUR5.7 million, after spending heavily on players during the Champions League from 1998 to 2001. Sturm Graz President Hannes Kartnig admitted the club had spent a lot of money, mentioning the transfer of Ghanaian Charles Amoah. The midfielder, Reuters relates, became Graz's record signing after he received around EUR3.9 million to secure his move from St. Gallen in Switzerland in 2001. Mr. Kartnig disclosed that he would be ready to step down once the club's future was secured. "I am not going to leave a sinking ship," Mr. Kartnig told a news conference last week. "I hope we will get out of that cul- de-sac." Headquartered in Graz, Styria, SK Sturm Graz -- http://www.sksturm.at/-- is an Austrian football club playing in the Austrian Bundesliga. So far, Sturm Graz has won the Austrian Football Championship twice (1998 and 1999) and participated several times in the UEFA Champions League and UEFA Cup under the management of Ivica Osim. ============= D E N M A R K ============= TDC A/S: Posts DKK641 Million Net Income in 2006 Third Quarter -------------------------------------------------------------- TDC A/S reported a DKK641 million net income on DKK12 billion net revenues for the third quarter ended Oct. 31, 2006, compared to a DKK1.2 billion net income on DKK11.9 billion net revenues in the same period in 2005. At Oct. 31, 2006, the Company's balance sheet showed DKK79.4 billion in total assets and DKK77.3 billion in total liabilities, resulting in a DKK2 billion stockholder's equity. The Company's Oct. 31 balance sheet also showed strained liquidity with DKK13.3 billion in total current assets available to pay DKK13.7 billion in total current liabilities coming due within the next 12 months. All of TDC's operating companies have experienced growth in earnings, and continued stringent cost control has been obtained. In Denmark and Switzerland, TDC has attracted more broadband and mobile customers, and the influx of new customers continues in the international mobile companies, such as Talkline and Bite, and in TDC Cable TV. TDC now has 15.9 million customers, which is 1.2 million more than at the same time last year. "The financial statements which we present today are satisfactory. On a highly competitive market, TDC attracts many new customers every day and, at the same time, we maintain strict cost control. Therefore, it is a financially healthy TDC which I can now pass on to my successor," retiring President and CEO Henning Dyremose says. The expectations for the 2006 revenue are adjusted downward by DKK700 million, but, at the same time, the expectations for the gross profit ratio are adjusted upward due to cost reductions and, therefore, the expectations for EBITDA and net income for the year are maintained. About TDC Headquartered in Copenhagen, Denmark, TDC A/S -- http://www.tdc.com/-- provides communications solutions in Denmark and is the second-largest telecommunications provider on the Swiss market. It has a presence in a number of select markets in Northern and Central Europe due to its shareholdings in major companies. * * * As reported in the TCR-Europe on May 11, Fitch affirmed TDC A/S's Issuer Default Rating at BB- with Stable Outlook and senior secured bank facilities at BB+. The various notes issued under TDC's EMTN program are affirmed at BB-. EMTN bonds rated BB-: -- DEM 5.0% notes due 2008; -- JPY 1.28% notes due 2008; -- EUR 5.625% notes due 2009; and -- EUR 6.5% notes due 2012. =========== F R A N C E =========== ACXIOM CORP: Earns US$21.7 Million for Second Quarter 2007 ---------------------------------------------------------- Acxiom Corp. reported financial results for the second quarter of fiscal 2007 ended Sept. 30, 2006. Consolidated net earnings for the quarter increased 204% to US$21.7 million. Gross margin increased to 27.5% from 26.2% in the same quarter a year ago. Second-quarter revenue totaled US$348.3 million, an increase of 5.4% over the same quarter last year. "We are pleased that Acxiom delivered another solid performance in the second quarter and remains on track to meet the fiscal 2007 targets we communicated at our Sept. 27 analysts' meeting in New York," Company Leader Charles D. Morgan said. "We continue to execute the fundamentals of our business and are delivering the results that we expected. I believe we are well positioned for a successful second half of the fiscal year." Highlights: -- revenue of US$348.3 million, up 5.4% from US$330.5 million in the second quarter a year ago. -- income from operations of US$41.9 million, a 123% increase compared to US$18.8 million in the second quarter last year. Last year's second-quarter results included the impact of net pretax charges of US$15.8 million associated with restructuring, the sale of non-strategic operations and other unusual items. Excluding the impact of those charges, income from operations would have been up 21%. -- diluted earnings per share of US$.25, a 213% increase compared to US$.08 in the second quarter of fiscal 2006. The impact of the net charges described above reduced diluted EPS by US$.12 for the second quarter last year. Excluding this impact, diluted earnings per share increased 25%. -- operating cash flow of US$64.4 million and free cash flow available to equity of US$15.3 million. -- gross margin of 27.5% compared to 26.2 percent in the same quarter last year. -- computer, communications and other equipment expense equaling 20.9% of revenue compared to 23.1 percent of revenue in the second quarter of fiscal 2006. "The improvement in our earnings and margins -- assisted by reduced computer expense as a percentage of revenue -- shows the increasing strength of our business and the results of our initiatives to improve operational efficiencies," Mr. Morgan said. Mr. Morgan also noted that Acxiom recently completed new contracts with Procter & Gamble Co., E*TRADE FINANCIAL Corp., D&B and Safety-Kleen Systems, Inc. Based in Little Rock, Arkansas, Acxiom Corp. (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. Acxiom has a team of specialists with sales and business development associates based in the largest Latin American markets: Brazil, Argentina and Mexico. In Europe, Acxiom has operations in France, Germany, the Netherlands, Portugal, Spain, and the United Kingdom. * * * Standard & Poor's Ratings Services assigned on Sept. 6, 2006, its loan and recovery ratings to Little Rock, Arkansas-based Acxiom Corp.'s proposed US$800 million secured first-lien financing. The first-lien facilities consist of a US$200 million revolving credit facility and a US$600 million term loan. They are rated 'BB' with a recovery rating of '2'. As reported in the Troubled Company Reporter on Aug. 25, 2006, Moody's Investors Service assigned a Ba2 rating to Acxiom Corporation's US$800 million senior secured credit facilities, while affirming its corporate family rating of Ba2. Moody's said the rating outlook is stable. BEARINGPOINT INC: Launches Corp. Performance Management System -------------------------------------------------------------- BearingPoint Inc. leveraged its 10-year commitment to developing innovative corporate performance management systems to unveil Corporate Performance Management, a premier global services solution integrated with Oracle Business Intelligence. According to a recent study, business intelligence ranks second behind security on the CIO's list of top 10 priorities. In today's changing business environment, CEOs and CFOs of leading organizations need more insight into their business. The pressure to deliver results while shouldering responsibility for compliance compels them to demand greater return on investments in enterprise resource planning systems, business intelligence applications and compliance tools. BearingPoint CPM is designed to help companies improve return on investment, enhance timely and accurate information delivery, and improve reporting and corporate governance, while increasing efficiency and effectiveness. "BearingPoint's solution enables businesses to leverage the costs associated with streamlining business processes to help meet regulatory and governance mandates, such as Basel II, gaining value and competitive advantage from their investment," said Greg Molley, managing director, for BearingPoint's Oracle Business Intelligence Practice. "We've strategically aligned our resources with Oracle to make the connections needed for the development and delivery of innovative business transformation solutions. Our cross-competency teams have been working together extensively, giving us more experience on Oracle technologies, greatly reducing client risk. We were the first to consolidate both the Oracle and PeopleSoft practices and added the Siebel Practice to our global integrated community as of January 2006. Because of this, we're more closely aligned with Oracle and its development process and have contributed to the development and roll-out of upgrades and Oracle's Business Intelligence strategy leveraging Oracle SOA." BearingPoint's CPM provides the business insight executives require, delivering in high value, business transformation through: -- seasoned practitioners with cross-industry and cross-functional business process knowledge, as well as Oracle and non-Oracle technology experience; -- repeatable implementation practices to help companies manage risk and deliver predictable, value-added outcomes; -- reusable tools and project accelerators that are tailored to individual client needs through a collaborative delivery approach; -- specialized vertical solutions to meet the needs of the company's financial services clients; and -- specialized domain solutions for helping companies to meet their compliance needs and drive focused process improvement. "BearingPoint was a very early partner in embracing our larger BI strategy and working with our development team to understand our strategy. They communicated this strategy to our clients and built out a solution we recognized this week with a Titan Award. BearingPoint moved quickly to align its practice to capitalize on the opportunity," said Robert Stackowiak, vice president, Business Intelligence Oracle Corporation Technology Business Unit. "BearingPoint's CPM solution leverages its significant Oracle technology expertise with industry expertise, business process and change management to help their clients deliver solid business results. The company's leadership in developing innovative solutions has made it a valuable Oracle partner for many years and they are well positioned to deliver our Fusion business intelligence solutions as they are introduced." "BearingPoint takes a holistic approach in applying strategy, business process industry expertise, and change management to help increase our clients' return on investment," said Mr. Molley. "With the power of Oracle Business Intelligence at the core, our teams focus on developing an integrated view of the data locked in customers' information systems. With our CPM solution, we can offer a global network of professionals providing implementations, upgrades and strategic solutions across the entire suite of Oracle products." As a Certified Advantage Partner in the Oracle Partner Network, BearingPoint has completed more than 2,000 Oracle implementations and upgrades in more than 50 countries. To date, it supports the evolution of Oracle Fusion Applications, Oracle's initiative to protect customer investments while extending and evolving the functionality of its Oracle, PeopleSoft, JD Edwards, Siebel and emerging product lines. "BearingPoint has been a trusted advisor to our organization for many years," said Jennifer Fancher, first vice president, Washington Mutual, Inc. "We have clearly benefited from their strategic vision, and the business acumen, project management, and technical skills they bring to their teams to make the visioning a reality. Their work on our Corporate Performance Management Solution has allowed us to manage our company more effectively. This is why BearingPoint continues to be one of our key strategic partners." About the Company Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE: BE) -- http://www.BearingPoint.com/-- provides of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. The firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. BearingPoint has global locations in Australia, Austria, Brazil, China, France, India, Indonesia, Japan, Mexico, Portugal, Singapore, Thailand, and the United Kingdom, among others. * * * As reported in the TCR-Europe on Oct. 11, Moody's downgraded and placed these ratings on review for further possible downgrade: * Corporate Family Rating --downgraded to B2 from B1 * US$250 million series A subordinated convertible bonds due 2024 --downgraded to B3 from B2 * US$200 million series B subordinated convertible bonds due 2024 --downgraded to B3 from B2. BORALEX INC: US Subsidiary to Secure US$80 Mil. Debt Financing -------------------------------------------------------------- Boralex Industries Inc., the U.S. subsidiary of Boralex Inc., anticipates securing an US$80 million debt financing. The financing would have a term of seven years, and would be secured by the US hydro assets and US biomass assets of Boralex Industries, as well as certain payments made under the monetization of its US production tax credits described below. Proceeds from the financing would be used to retire US$5 million of existing debt and for general corporate purposes. Boralex also disclosed that it is continuing to pursue transaction described which would result in the monetization of the renewable energy US production tax credits to which Boralex Industries is entitled over the period beginning at closing of the transaction and concluding on Dec. 31, 2009 (the date of the conclusion of the program). The Transaction would result in the transfer to investors of indirect equity interests in the US biomass facilities, and the receipt by Boralex Industries of US$15 million cash at closing and a US$13.3 million contingent payment note. Boralex Industries has call rights to buy back the biomass assets at certain times and for certain amounts exercisable following the repayment of the contingent note. Boralex would operate the biomass facilities pursuant to an operation and maintenance agreement. Boralex anticipates closing the transactions by the end of November 2006, subject to the completion of definitive documentation and the satisfaction of customary closing conditions. Boralex Inc. -- http://www.boralex.com/-- focuses on four types of power generation: hydroelectric power, thermal or cogeneration power from natural gas or wood residue, and wind power. Boralex employs about 277 workers and owns 20 power stations in Quebec, the United States and France, with an installed capacity of 315 MW. Boralex also owns an urban wood processing and recycling center located in Montreal. In addition, Boralex holds a 23% interest in Boralex Power Income Fund which owns 10 power stations in Quebec and the United States with an installed capacity of close to 190 MW. Management of the Fund's assets is provided by Boralex. * * * As reported in the Troubled Company Reporter-Europe on Oct. 30, Standard & Poor's Ratings Services assigned its preliminary 'B+' rating and a '4' recovery rating to Boralex Investment L.P.'s proposed US$80 million secured term loan B due on the seventh anniversary of closing in 2013. Boralex Investment L.P. is a wholly owned subsidiary of Boralex Inc. As reported in the TCR-Europe on Oct. 26, 2006, Moody's Investors Service assigned a Ba3 rating to Boralex Investment LP's proposed US$80 million senior secured term loan due October 2013. Moody's said the rating outlook is stable. COREL CORP: Pending Acquisition Spurs Moody's to Affirm Ratings --------------------------------------------------------------- Moody's Investors Service affirmed the B3 corporate family rating and B3 senior secured bank loan ratings of Corel Corp. after reviewing Corel's pending US$195 million acquisition of InterVideo, Inc. The acquisition will be financed with cash on hand and the proceeds from a proposed offering of up to US$100 million senior secured term loan, which is rated B3 as well. The change in outlook to positive reflects Moody's view that a successful integration of InterVideo coupled with continued growth in revenue and profits could position Corel for an increased rating. While Moody's remains concerned about Corel's reliance on technical information sharing from its two primary competitors, Microsoft Corporation and Adobe Systems, Moody's views the addition of InterVideo with its successful line of video editing, burning and playback software (WinDVD) as a positive diversification to Corel's existing portfolio of software products, a diversification which could ultimately lead to a higher rating. The benefits of this product diversification as well as the access to InterVideo's large customer base and number of OEM partnerships are somewhat tempered by the integration risks associated with acquiring a company of InterVideo's size which at US$109 million in revenue for fiscal year 2005 is comparable to Corel's US$164 million in revenue for fiscal year 2005. Moody's notes however, Corel's recent successful acquisition and integration of two smaller software companies, Jasc Software, Inc. and WinZip, as indicative of their capabilities. The ratings are also tempered by InterVideo's recent loss of Hewlett Packard's consumer computer business as a major customer for their WinDVD product line. While the acquisition will increase Corel's leverage marginally above 3x (prior to any synergies for the combined companies), Moody's views this leverage as manageable and is offset by the increase in diversification from InterVideo's portfolio of consumer and pro-sumer software titles. Additionally, Moody's expects that Corel will continue to make debt financed acquisitions but does not expect leverage levels to exceed 3x for long periods of time, although there will continue to be meaningful amounts of debt. Corel Corporation is a global packaged software company. It provides products in the areas of office productivity, graphics, and digital imaging software. The company is headquartered in Ottawa, Canada. TCL MULTIMEDIA: Restructuring European Operations to Cut Losses --------------------------------------------------------------- TCL Multimedia Technology Holdings Limited, Thomson S.A., TTE Corporation, and TTE Europe SAS have agreed to restructure the European operation of TCL Multimedia Technology Holdings Limited. The agreement includes, among others, variation of certain terms in some existing agreements between TTE Corporation and Thomson S.A. and settlement with Thomson of certain receivables and payables between the Thomson Group and the Group. The restructuring and turnaround of TTE's Europe operations are expected to result in the amicable wind-down of the current activities of TTE Europe SAS and a business transition to a new business model. The process will commence in late October/early November 2006. TCL Multimedia Technology Holdings Limited has recorded substantial losses as a result of the poor business performance of its operations in Europe. It is estimated that the accumulated losses of the Group's investment in Europe as at Sept. 30, 2006 amounted to EUR203 million (HK$2.034 billion). Hence, it has been the top priority of the Company to take measures to drastically restructure its European operation in order to minimize incurring further losses. Europe Restructuring and New Business Model Recently, a major breakthrough has been made for the Europe restructuring as a result of an agreement reached between Thomson S.A., a substantial shareholder of the Company (having shares of the Company representing about 29.3% of the issued share capital thereof), TTE Corporation, a direct wholly owned subsidiary of the Company, TTE Europe SAS, an indirect wholly owned subsidiary of the Company, and the Company. The Term sheet describes the basic framework making possible the amicable wind-down of current activities of TTE Europe and the re-launch of the Company's business in Europe under a new business model. The Term Sheet was signed on Oct. 12, 2006, but was only binding on the parties and effective from Oct. 26, 2006, the date on which TTE Europe, together with its employee representatives, launched its restructuring plan. The process for the amicable wind-down of the activities of TTE Europe, the most important subsidiary of the Group in Europe, is expected to commence in late October/early November 2006 and to include, among others, restructuring of the majority of TTE Europe's current employee base in Europe devoted to Europe commercial activities and winding-up of most of its current operations. The wind-down covers substantially all the activities related to sale and marketing of TV products (excluding OEM business) of the Group in Europe. As part of the process, some other subsidiaries of the Group in Europe, such as the six sales subsidiaries of TTE Europe, in: -- Czech Republic, -- Germany, -- Hungary, -- Italy, -- Spain, and -- Sweden, should also undergo a restructuring in the future. Assets and inventories of the Group in Europe will also be disposed of in due course. Should any agreement be concluded, such may result in a notifiable transaction for the Company under Chapter 14 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited, further announcement will be made as and when appropriate. To maintain the Group's presence in Europe, the Group will pursue a new business model that will expand the Group's existing OEM business serving European customers. Compared to the old business model, this will be a huge simplification of operation. The new operation will have a much simpler supply chain and lean and efficient organization in Europe. It is planned that the majority of support services will be based in Hong Kong and PRC. As a result of the restructuring process, revenues of the Group in Europe will decline in 2007 (compared to 2006), but should rise again in 2008. The scaled- down operation of the Group in Europe and the new business model will reduce operating costs drastically. It is expected that the business of the Group in areas other than Europe, such as the PRC and North America, will not be affected as a result of the restructuring of TTE Europe in Europe. Term Sheet with Thomson The Term Sheet is structured to help TTE Europe to carry out restructuring, wind-down and transition to new business model. It represents the efforts of the Company to find an appropriate restructuring plan for TTE in Europe and also to ensure that the Group's market presence in Europe will be maintained. Implementation of this plan will also require settlement with other creditors of TTE Europe. So far TTE Europe has only discussed with TTE, the Company and Thomson (all being its major creditors) on its restructuring plan and has obtained their assistance and concessions in terms as set out in the Term Sheet. TTE Europe has yet been in detailed discussion with other creditors. In light of major creditors having already agreed to the plan, the board of directors of the Company is confident that other creditors will also cooperate and the restructuring of the European operations will be implemented as planned. The Term Sheet modifies certain existing arrangements and agreements between the Group and Thomson Group which are continuing connected transactions of the Company under Chapter 14A of the Listing Rules. Changes made to the Trademark License Agreement and New Angers Agreement are the more significant changes which will affect the future operation of the Group. Under the Trademark License Agreement between Thomson and TTE to use certain Thomson's registered trademarks for manufacture and sale of TV products in certain countries in the North America, Europe and other regions in return for a royalty fee based on the TTE's net sales of TV products. There is a minimum sales target for TTE to meet, the failure of which will entitle Thomson to terminate the Trademark License Agreement. Due to poor performance in Europe, TTE has not been able to meet the minimum sales target as stipulated. Following the discussions between Thomson and the Group, the parties have decided to amend the Trademark License Agreement. TTE will continue to have the right to use Thomson Trademark in Europe for the next two years and no payment of the royalty fee is required for the said use. For Russia, Ukraine, and Kazakhstan, with payment of royalty fee as agreed in the Trademark License Agreement, TTE can still use the Thomson Trademark for 7 more years up to late 2013. All the terms of the Trademark License Agreement remain unchanged. Under the New Angers Agreement between Thomson and TTE, Thomson sub-contracts its factory in Angers, France, to TTE at a certain hourly rate for manufacturing of TV products, sub-assemblies and modules and supply of rework services at the Angers Factory. In return, TTE guarantees a minimum order of such sub-contracting services in terms of hours and if such minimum hours are not observed, Thomson will invoice TTE for the difference not ordered on the same terms and conditions as the quantity ordered. TTE's orders to the Angers factory have from time to time fallen below the minimum as stipulated in the agreement. In light of the restructuring of Europe activities, the Term Sheet significantly reduces the minimum hours, which TTE must order, to 150,000 hours for year 2007 and to 75,000 hours for year 2008. This represents an average 61% reduction in 2007 and 78% reduction in 2008 of the contracted loads. The subcontracting arrangement will end at the end of 2008 instead of 30 July 2009 as originally agreed. As a result, financial commitment on part of TTE under the New Angers Agreement has been greatly reduced. In addition, the Term Sheet states that Thomson will proceed by January 2007, subject to certain conditions, with the payment of certain payables to TTE in relation to assets of the Angers factory that will not be transferred to TTE. The Term Sheet will render the transaction value to be involved under the aforesaid two agreements much lower than the proposed annual caps approved by the shareholders of the Company on Aug. 18, 2005 for those continuing connected transactions. Thomson will repay, subject to certain conditions, certain sum prepaid by the Group in relation to filing and management of certain intellectual property rights. Further, for an effective re-launch of the Company's business in Europe under a new business model, TTE commits to support the working capital needs of TTE Europe up to a maximum of EUR13 million (HK$130 million). The Board is of the view that the terms as stated in the Term Sheet are pre-requisites that make possible the restructuring for European operation and the best way to resolve the loss making trend for the Group in Europe. Financial Impact Turnover of the Group's European operation for the nine months ended Sept. 20, 2006, amounted to EUR328 million (around HK$3.275 billion), accounting for about 15% of the Group's turnover. Net loss of the European operation for the nine months ended Sept. 30, 2006, amounted to EUR159 million (HK$1.591 billion) while the Group recorded a net loss of HK$1,519 million for the period. Total assets of the European operation as at Sept. 30, 2006, amounted to EUR132 million (HK$1.323 million), representing about 10% of the Group's total assets. The restructuring costs is estimated to be in the region of EUR45 million (HK$450 million) covering primarily the provision for the redundancy payment or retrenchment benefits to the employees and certain other warranty costs or costs associated with termination of services. Part of it will be financed by the net cash-in-flow contributed by Thomson after netting off various payables and receivables between the Group and Thomson Group. It is estimated that after taking into account of the Term Sheet, the cash-out-flow on part of the Company as a result of the restructuring plan, if fully implemented as planned, will amount to about EUR24 million (HK$240 million, which may be higher if the restructuring costs are higher than expected) plus the working capital required for the re-launch of a new business model in Europe, part of which will be financed by realization of assets of the Group in Europe and the balance by the working capital of the Company. As the restructuring is now only at its early stage, the exact impact on the Company's profit and loss for the year ending Dec. 31, 2006, is yet to be determined. It is expected that the exact impact will only be available when the Company finalizes its accounts for the year ended 31 December 2006 and the Company will state the exact impact in the results announcement for the year then ended. The Board believes that the overall restructuring plan will pave the way for the Company to reach profitability in Europe by 2008. In view of the current economic climate and the financial drain on the Group by the European operation, the Board considers it would be beneficial for the Group to substantially scale down its operation in Europe in order to stop incurring further loss and pave its way for recovery. As noted in the unaudited consolidated financial statements of the Company for the nine months ended Sept. 30, 2006, the operation in North America continued to improve whilst operating performance in Emerging Markets and Strategic OEM business demonstrated improvement and the customer base has been expanded consistently. The Board believes that Europe restructuring will benefit the Group as a whole, as much less funding will be required for its European operation and the Group can focus and utilize its resources in other geographical regions in which it operates. Reduction of the loss in Europe and turnaround of the Group's operation in Europe is the critical step in the Group's recovery and ability to post a profit in the forthcoming short term. Headquartered in New Territories, Hong Kong, TCL Multimedia Technology Holdings Limited -- http://www.tclcom.com/-- designs, manufactures and sells electronic products like colored TV, DVD players, VCD players, home cinema hi-fi systems, mobile handsets, Internet-related information technology products, refrigerators and washing machines. Its other activity includes trading electronic parts and components used in the production of color television sets. * * * On Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific reported that the company posted CNY763 million losses of TCL Multimedia Technology Holdings Limited's European operations, which caused losses of the TCL Corp. group to widen to CNY737.56 million. TCR-Asia Pacific recounts that in 2004, TCL acquired the TV unit of French electronics firm Thomson, which uses the Thomson brand in Europe and RCA in North America. TCL grouped all its TV businesses under TMT. TCL MULTIMEDIA: TCL Corp Releases Thomson S.A. from Lockup ---------------------------------------------------------- TCL Multimedia Technology Holdings Limited reveals that TCL Corporation has released Thomson S.A. from the Lockup. Thomson and TCL Corporation entered into the Shareholders' Covenants Agreement to regulate their rights and obligations in the Company on Aug. 10, 2005, when Thomson first became a Shareholder of the Company after exchanging its shares in TTE upon exercise of the Exchange Option under the Exchange Option Agreement for a total of 1,144,182,095 Shares representing about 29.32% of the issued share capital in the Company. Under the Shareholders' Covenants Agreement, both Thomson and TCL Corporation, are subject to the Lockup. The main provisions are: -- neither Thomson nor TCL Corporation may transfer any of its shares in the Company in the first three years after the Closing Date; -- each of Thomson and TCL Corporation may subsequently sell down gradually its respective Shares in the Company; and -- after the fifth anniversary of the Closing Date, neither Thomson nor TCL Corporation will be subject to the Lock Up. The Company became aware of the arrangement or agreement between Thomson and TCL Corporation on the release of the Lockup in about early October 2006. The Company is not a party to the agreement for the release of Lockup, which is an agreement between the two substantial Shareholders of the Company and the Company has no role to play in the agreement. The Company was of the view that the release was merely an agreement at the Shareholders' level and thus no announcement was made at that time. After learning that TCL Corporation had announced on Oct. 31, 2006 that it had released Thomson from the Lockup, the Board considers that the Company should make an announcement to inform its Shareholders of the same. To the best knowledge of the Company, the release of the Lockup is a part of the global arrangement between the two substantial Shareholders of the Company in their efforts to simplify and clarify the general framework of their relationship. To the best knowledge of the Company, TCL Corporation, the controlling shareholder currently indirectly holds 1,512,121,289 Shares, representing about 38.74% of the issued share capital in the Company, is still subject to the Lockup. Upon the release of the Lockup, Thomson is now free to dispose of any of its Shares in the Company. As the release of Lockup concerns only the right of the two substantial Shareholders under the Lockup provision, it is not expected that the release will affect the operation of the Company. The Company is not aware of the current intentions of Thomson regarding its Shares in the Company following the release of the Lockup. If Thomson finally decides to dispose of its Shares in the Company through open market, it is expected that the public float of the Shares will be substantially increased. Under the Shareholders' Covenants Agreement, Thomson will no longer be entitled to nominate two directors out of 11 directors to the Board if its shareholding in the Company is less than 13.25%. About TCL Headquartered in New Territories, Hong Kong, TCL Multimedia Technology Holdings Limited -- http://www.tclhk.com/-- designs, manufactures and sells electronic products like colored TV, DVD players, VCD players, home cinema hi-fi systems, mobile handsets, Internet-related information technology products, refrigerators and washing machines. Its other activity includes trading electronic parts and components used in the production of color television sets. * * * On Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific reported that the company posted CNY763 million losses of TCL Multimedia Technology Holdings Limited's European operations, which caused losses of the TCL Corp. group to widen to CNY737.56 million. TCR-Asia Pacific recounts that in 2004, TCL acquired the TV unit of French electronics firm Thomson, which uses the Thomson brand in Europe and RCA in North America. TCL grouped all its TV businesses under TMT. ============= G E R M A N Y ============= BALL CORP: Earns US$101.5 Million for Third Quarter 2006 -------------------------------------------------------- Ball Corp. reported third quarter earnings of US$101.5 million, on sales of US$1.82 billion, compared with US$79.3 million, on sales of US$1.58 billion in the third quarter of 2005. For the first nine months of 2006, Ball Corp.'s saw earnings of US$278.8 million, on sales of US$5.03 billion, compared with US$216.9 million on sales of US$4.46 billion in the first three quarters of 2005. Ball Corp.'s 2006 results include a gain of US$2.8 million (US$1.7 million after tax) in the third quarter and US$76.9 million (US$46.9 million after tax) in the first nine months for insurance recovery from a fire that occurred April 1 at a beverage can manufacturing plant in Germany. The 2005 third quarter results include net after-tax costs of US$12.5 million, connected with debt refinancing and with a program to streamline the company's beverage can end manufacturing processes. The nine-month 2005 results included net after-tax costs of US$18.4 million, related to business consolidation and debt refinancing activities. R. David Hoover -- the chairperson, president and chief executive officer of Ball Corp. -- said, "Overall, we were pleased with our third quarter results, especially considering the increased cost pressures we continue to experience throughout the corporation. We are making progress on profit improvement and pricing initiatives that are essential to our achieving acceptable returns. We also are making good progress on integrating the acquisitions we made earlier this year and on completing important projects to improve operating efficiencies." Metal Beverage Packaging Americas Earnings in the quarter for the metal beverage packaging Americas segment were US$63.7 million, on sales of US$659.6 million, compared with US$49.4 million, including a US$19.3 million charge for costs associated with streamlining can end manufacturing processes, on sales of US$636.1 million in the third quarter of 2005. For the first nine months segment earnings were US$182.9 million on sales of US$1.99 billion, compared with US$177.4 million, including the US$19.3 million charge, on sales of US$1.85 billion in the first three quarters of 2005. Inventory adjustment had a negative effect of US$9.3 million on segment earnings in the third quarter of 2006, compared with US$2.7 million in 2005. Mr. Hoover notes, "We made further progress on our project to streamline our beverage can end manufacturing. We expect to cease end manufacturing at our Reidsville, N.C., plant in the fourth quarter. We will supply those ends from other facilities and as a result should begin to realize in 2007 some of the savings anticipated from this multi-year, multi-plant project." Europe/Asia Third quarter earnings in the metal beverage packaging Europe/Asia segment were US$66 million, including US$2.8 million in property insurance gains, on sales of US$425.1 million, compared with US$56.7 million on sales of US$366.1 million in the third quarter of 2005. For the first nine months segment earnings were US$235.7 million, including US$76.9 million in property insurance gains, on sales of US$1.16 billion, compared with US$145 million on sales of US$1.06 billion in the same period in 2005. Mr. Hoover stated, "The loss of production volume resulting from the April 1 fire made for an extremely tight beverage can supply situation for us in Europe this summer. Our new plant in Serbia and improved performance at other facilities helped bridge a portion of the volume gap, but that contribution was partially offset by higher material, freight and energy costs. In China, the demand for beverage cans continues to grow and we continue to work through a year where high raw material prices have hurt results, but where stringent cost controls have been put in place and plant performance has improved." Metal Food & Household Products Packaging, Americas Earnings for the third quarter in the metal food and household products packaging Americas segment were US$19.4 million on sales of US$381.3 million, compared with US$10.1 million on sales of US$292.2 million in the third quarter of 2005. For the first nine months of 2006, earnings were US$33.2 million, including a US$1.7 million charge for costs to shut down a food can manufacturing line in Whitby, Ontario, on sales of US$884.8 million, compared to US$16.7 million, including a US$8.8 million charge to shut down a food can manufacturing plant in Quebec, on sales of US$655.5 in the same period in 2005. Ball Corp. acquired U.S. Can Corporation on March 27, 2006, and results from the acquired business have been included in the metal food and household products packaging segment since that date. Mr. Hoover said, "We continue to consolidate the assets acquired from U.S. Can with those of our legacy metal food can operations. Those activities led to our announced decision to close plants in Alliance, Ohio, and Burlington, Ontario, later this year with anticipated annual cost savings of approximately US$8 million." Plastic Packaging, Americas Earnings for the third quarter in the plastic packaging Americas segment were US$8.3 million on sales of US$185.9 million, compared with US$4.2 million on sales of US$124.7 million in the third quarter of 2005. Through the first three quarters of 2006, segment earnings were US$17.1 million on sales of US$486.8 million, compared with US$12.2 million on sales of US$373.9 in the first three quarters of 2005. The 2006 results include those of assets acquired from Alcan on March 28, 2006. Mr. Hoover noted, "We have completed the relocation of some of the equipment acquired from Alcan Plastics into other plants and have consolidated the R&D functions associated with the acquired business into our overall packaging R&D operations in Colorado. Some of the activities from the Alliance plant will be consolidated into one of the facilities we acquired from Alcan Plastics as part of the ongoing integration of our manufacturing assets." Aerospace and Technologies Earnings were US$15.6 million on sales of US$170.4 million during the third quarter of 2006 in the aerospace and technologies segment, compared with US$15.2 million on sales of US$164.8 million in the third quarter of 2005. For the first three quarters, earnings were US$33.4 million on sales of US$505.7 million, compared with US$39 million on sales of US$527.5 in the first three quarters of 2005. Mr. Hoover said, "Excellent performance on several fixed price programs that ended in the quarter helped boost third quarter results in aerospace and technologies. That kind of continued performance, along with some hopeful signs we are beginning to see in the awarding and funding of certain scientific and defense contracts, we believe bode well for this segment as we look to next year." Outlook Raymond J. Seabrook, executive vice president and chief financial officer, said he anticipates full-year free cash flow to be in the range of US$250 million. Mr. Seabrook stated, "The seasonal working capital build we have seen through the first nine months will be largely eliminated in the fourth quarter. We will continue our focus on free cash flow generation in the future as some of the major capital spending projects we have been engaged in wind down and we begin to realize the benefits from them. At mid-year we said we expected results for the second half of 2006 would be better than those of the first half, excluding property insurance recovery related to the fire in Germany. Our solid third quarter results now make us confident of that outcome." "The cost recovery initiatives we have and will continue to implement throughout our reporting segments will be critical to sustaining and improving our performance in 2007. Some of those initiatives have been announced and already are being implemented, and others are being discussed and developed with suppliers and customers," Mr. Hoover noted. Headquartered in Broomfield, Colorado, Ball Corp. -- http://www.ball.com/-- is a supplier of high-quality metal and plastic packaging products. It owns Ball Aerospace & Technologies Corp. -- a developer of sensors, spacecraft, systems and components for government and commercial customers. Ball Corp. reported sales of US$5.7 billion in 2005 and the company employs about 13,100 people worldwide, including Argentina, Hong Kong, China, France, Germany and the United Kingdom. * * * Moody's Investors Service assigned ratings to Ball Corp.'s US$500 million senior secured term loan D, rated Ba1, and US$450 million senior unsecured notes due 2016-2018, rated Ba2. It also affirmed existing ratings, which include Ba1 Ratings on US$1.475 billion senior secured credit facilities and US$550 million senior unsecured notes due Dec. 12, 2012. Moody's said the ratings outlook is stable. Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+' senior secured credit facilities, and 'BB' senior unsecured notes. Standard & Poor's Ratings Services also affirmed its 'BB+' corporate credit rating on Ball Corp. All ratings were placed by S&P in March 2006. BALL CORP: Declares US$0.10 Per Share Cash Dividend --------------------------------------------------- Ball Corp.'s board of directors declared a cash dividend of 10 cents per share, payable Dec. 15, 2006, to shareholders of record on Dec. 1, 2006. Headquartered in Broomfield, Colorado, Ball Corp. -- http://www.ball.com/-- is a supplier of high-quality metal and plastic packaging products. It owns Ball Aerospace & Technologies Corp. -- a developer of sensors, spacecraft, systems and components for government and commercial customers. Ball Corp. reported sales of US$5.7 billion in 2005 and the company employs about 13,100 people worldwide, including Argentina, Hong Kong, China, France, Germany and the United Kingdom. * * * Moody's Investors Service assigned ratings to Ball Corp.'s US$500 million senior secured term loan D, rated Ba1, and US$450 million senior unsecured notes due 2016-2018, rated Ba2. It also affirmed existing ratings, which include Ba1 Ratings on US$1.475 billion senior secured credit facilities and US$550 million senior unsecured notes due Dec. 12, 2012. Moody's said the ratings outlook is stable. Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+' senior secured credit facilities, and 'BB' senior unsecured notes. Standard & Poor's Ratings Services also affirmed its 'BB+' corporate credit rating on Ball Corp. All ratings were placed by S&P in March 2006. BALTICA MARINE: Claims Registration Ends November 10 ---------------------------------------------------- Creditors of Baltica Marine Wassersportartikel GmbH have until Nov. 10 to register their claims with court-appointed provisional administrator Hendrik Gittermann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 12 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 Neumuenster Area B 031 Law Courts Boostedter Road 26 Neumuenster, 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 Neumuenster opened bankruptcy proceedings against Baltica Marine Wassersportartikel GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Baltica Marine Wassersportartikel GmbH Attn: Martin Kauffmann, Manager Neu-Revensdorf 2 24214 Lindau, Germany The administrator can be contacted at: Hendrik Gittermann Sandtorkai 62 20457 Hamburg, Germany BREMER LANDESBANK: Fitch Affirms Individual Rating at C ------------------------------------------------------- Fitch Ratings affirmed Bremer Landesbank Kreditanstalt Oldenburg Girozentrale's ratings at Issuer Default A with Stable Outlook, Short-term F1, Individual C, and Support 1. At the same time, the Long-term rating for BLB's guaranteed obligations is affirmed at AAA. The Issue Default, Short-term and Support ratings are based on the extremely high potential support from the two states in which BLB operates and which are its direct and indirect owners. BLB's Individual rating reflects its moderate profitability and reliance on dated hybrid Tier 1 capital. BLB's Tier 1 ratio includes a significant proportion of hybrid capital, mainly subscribed by its state entities and indirect owners. Although, Fitch has only given very limited equity credit to the bank's EUR607 million silent participations, the agency notes that these are held by BLB's owners. The rating also takes into account BLB's moderate risk profile and the advantages the bank derives from its regional focus. The bank's performance continued to improve, although this was driven by lower loan loss provisions due to a healthier local economy. In H106 these were below the expected standard risk costs. Net interest revenues are growing roughly in line with business volumes. The steadily increasing net commission income benefited from credit structuring fees and, in H106, from the securities business in particular. BLB's asset quality is sound. However, taking only the loan book into account and excluding the large share of interbank and public sector assets, the quality is only moderate due to the volume of problem exposures. BLB is one of Germany's smaller Landesbanks. The majority of its business is concentrated in and around the northern port and city state of Bremen, the city of Oldenburg, and north-western Lower Saxony, where it acts as banker to the state and as a clearing bank for 15 savings banks in the region. The bank is focusing on ship, wind energy and real estate financing and lending to its local small- and medium-sized enterprise customers. K & K DEUTSCHLAND: Claims Registration Ends November 10 ------------------------------------------------------- Creditors of K & K Deutschland GmbH have until Nov. 10 to register their claims with court-appointed provisional administrator Eberhard Stock. Creditors and other interested parties are encouraged to attend the meeting at 10:04 a.m. on Nov. 17 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 Krefeld Meeting Room H 131 1st Floor Nordwall 131 47798 Krefeld, Germany The Court will also verify the claims set out in the administrator's report at 9:30 a.m. on Jan. 12, 2007, at the same venue. The District Court of Krefeld opened bankruptcy proceedings against K & K Deutschland GmbH on Aug. 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: K & K Deutschland GmbH Attn: Pieter van Dommele, Manager Prinsenwwer 60 NLD-3366 jk Sliedrecht, Netherlands The administrator can be contacted at: Eberhard Stock Wilhelmshofallee 75 47800 Krefeld, Germany LANDESBANK SAAR: Fitch Affirms Individual Rating at C ----------------------------------------------------- Fitch Ratings upgraded Landesbank Saar's Issuer Default rating to A+ from A and its Short-term rating to F1+ from F1. At the same time, SaarLB's Individual and Support ratings are affirmed at C and 1 respectively and SaarLB's guaranteed obligations are affirmed at Long-term AAA. The Outlook on the IDR remains Stable. The IDR upgrade reflects Fitch's view that the probability of support from its majority owner Bayerische Landesbank in case of need is extremely high, justifying an equalization of both banks' IDRs. Following discussion with SaarLB's owners Fitch now places higher emphasis on a strong public support statement in the form of a declaration of backing, underpinning the commitment by the parent bank towards its subsidiary. The Short-term rating of 'F1+' also factors in the additional propensity to support due to the large proportion of liabilities on SaarLB's balance sheet benefiting from the grandfathered guarantee. The latter effect will disappear over time as the grandfathered debt matures. SaarLB's Individual rating reflects the bank's low risk profile and further improvement of common equity, as well as its limited franchise and relatively low operating profitability by international comparison. The bank's Tier 1 capital ratio according to German banking law should stand at around 7.8% at end-2006, a comfortable level given the bank's risk profile. However, the quality of Tier 1 capital is weakened through a high proportion of hybrid Tier 1 capital, which Fitch only partly recognises as equity. The Long-term rating on SaarLB's guaranteed obligations is based on the grandfathering of the guarantee provided by its owners BayernLB and the state of Saarland. Obligations entered into up until July 18, 2005 and maturing before end-2015 remain covered by a guarantee in the form of Gewaehrtraegerhaftung. Within the BayernLB group, SaarLB focuses on its home market, the Saarland, as well as neighboring regions, with a particular emphasis on France. SaarLB services mainly small and medium- sized corporate customers and institutional clients, but also benefits from BayernLB's international network and sophisticated product range to cover the needs of its larger customers. In property finance, the bank concentrates on commercial real estate in its home region and participating in syndications elsewhere, but also provides small mortgage loans to private individuals in Germany through the internet. SaarLB is a public law bank and the smallest of Germany's Landesbanks. It is the main banker to the state of Saarland and is a clearing bank for the seven savings banks in Saarland. MITSUBISHI MOTORS: Posts JPY16.1 Billion in First Half 2006 ----------------------------------------------------------- Mitsubishi Motors reported first-half results for fiscal year 2006, ending March 31, 2007, and outlined its forecasts for the full year. Fiscal Year 2006 First-Half Results (1) Performance overview Mitsubishi Motors posted consolidated net sales of JPY1.01 trillion for the first half of fiscal year 2006 (April 1 through September 30, 2006), an increase of JPY14.1 billion over the same period last year (JPY991.3 billion). This increase was partially due to exchange rates despite lower sales volume in Asia and other regions and reduced OEM supply volume in non- domestic markets. The company posted an operating loss of JPY5.5 billion, an improvement of JPY14.3 billion over the same period last year despite lower global sales volume. Factors contributing to the improvement were mainly improved sales and model profitability mix in Japan and North America, improvement of earnings in the U.S. financial service operation, and effects of a weaker yen. Mitsubishi Motors posted an ordinary loss of JPY13.2 billion, a year-on-year improvement of JPY20.4 billion, and a net loss of JPY16.1 billion, a year-on-year improvement of JPY47.7 billion yen. The improvement in net loss resulted from lower asset impairment charges taken in Japan compared to that taken in fiscal year 2005, the absence of restructuring charges booked last year, and extraordinary gains from the dissolution of a special purpose entity related to monetization of real estate assets in Japan. (2) Sales volume Global retail sales volume in the first half of fiscal year 2006 totaled 599,000 units, a reduction of 60,000 compared to 659,000 in the same period last year. Despite falling demand in Japan, Mitsubishi Motors sales volume grew 6,000 vehicles to 114,000. Seventeen consecutive months of year-on-year increases (since May 2005) underscore this achievement, showing steady growth. In North America, the company's policy to strengthen the dealers' sales capabilities is gradually bearing fruit. Volume in the region grew 3,000 vehicles to 84,000, the first half fiscal year period of year-on-year growth since the first half of fiscal 2002 (eight periods). In Europe, volume in Germany, the UK and other markets fell slightly year-on-year. However, in addition to continued robust sales in Russia, sales volume doubled in the Ukraine, bringing the total for the region to 142,000 vehicles, 11,000 more than the same period last year. In Asia and other regions, markets in Latin America, the Middle East, and Africa showed increased sales volume. However, sales fell in Indonesia on high fuel prices due to elimination of government subsidies and tighter credit conditions. Sales also fell in Malaysia, where shipments of production parts and components to Proton Holdings Berhad were reduced, and in Taiwan where overall demand fell. Overall volume on the whole was down 80,000 vehicles to 259,000. The company's investor presentation summarizes the results as follows (in 100 million, JPY): FY05 1H FY06 1H Change --------- --------- --------- Revenue 9,913 10,054 +141 Operating Income -198 -55 +143 Ordinary Income -336 -132 +204 Net Income -638 -161 +477 Unit Volume (Retail) 659 599 -60 Full-Year Forecast Despite severe market conditions, the first half of fiscal year 2006 showed year-on-year improvement in net sales and distinct improvement in earnings. Although targets for net sales and unit sales volume did not meet the figures announced at the beginning of the financial year, losses were reduced in excess of targets. While the sales climate is expected to remain difficult in the coming period, by steadily executing measures in the second half, the company will strive to achieve net sales and earnings goals as announced on April 27, 2006. However, as a result of reviewing the unit sales volume targets by region, the company has opted to revise its fiscal 2006 sales volume to 1,322,000 vehicles, a reduction of 86,000 compared to the April 27th figure. In Japan, reflecting the fact that unit sales volume was below forecast in the first half, the company has opted to revise volume to 281,000 vehicles, a reduction of 21,000 compared to the April 27th figure. In North America, the company has revised volume up 7,000 vehicles to 188,000 reflecting the effect of new model launches in the second half. Sales in Europe's growth markets are expected to grow as they did in the first half; the company has revised volume up 9,000 vehicles to 280,000 for the region. On the other hand, in Asia and other regions, the company has revised volume downward 81,000 vehicles to 573,000 reflecting the severe environment and uncertain outlook for markets in the region. Operational initiatives for the second half of FY2006 (by region) (1) Japan -- Introduce the fully redesigned Pajero and DelicaD:5, as well non-turbo versions of "i" -- Increase dealer traffic through a new advertising campaign -- Strengthen sales capabilities together with dealers -- Build a new organizational structure, continue revamping the sales operation (2) North America -- Increase buyer appeal and sales through introduction of the new Outlander and Lancer models -- Reinforce sales capabilities via dealer training -- Effective advertising focusing on Mitsubishi's 25 years in the U.S. market -- Enhance sales through effective use of financial service operations -- Improve productivity at the Illinois plant (3) Europe -- Strengthen lineup through consecutive launch of new SUV models (new L200, Pajero, Outlander) -- Expand sales in Russia and the Ukraine (4) Asia and other regions -- China: Expand sales of Mitsubishi brand vehicles after the recent equity investment in South East (Fujian) Motor Co., Ltd and reinforce the lineup of vehicles exported from Japan -- Thailand: Secure stable profitability through expansion of Triton/L200 1-ton pickup exports -- Latin America, the Middle East and Africa: Sustain momentum through introduction of the new Pajero -- Australia: Launch 3 new models (Triton, Pajero, Outlander) About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on January 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. * * * As reported by the Troubled Company Reporter - Asia Pacific on Sept. 29, Standard & Poor's Ratings Services raised its long- term corporate credit and senior unsecured debt ratings on Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in the company's revitalization efforts and reduced downside risks in its earnings and financial profile. S&P said the outlook on the long-term rating is stable. As reported by the Troubled Company Reporter - Asia Pacific on August 4, 2006, Rating & Investment Information Inc. has upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+ to B with a stable outlook and its commercial paper rating from c to b, and has removed the rating from its monitor at the same time. As reported by the Troubled Company Reporter - Asia Pacific on July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-, with a stable outlook. The agency also affirmed the NJ rating on CP program of the company, while upgrading its rating on the Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. to B+ from CCC. MODEHAUS SCHEDLER: Claims Registration Ends November 9 ------------------------------------------------------ Creditors of Modehaus Schedler Twachtmann & Motog GmbH have until Nov. 9 to register their claims with court-appointed provisional administrator Juergen Sander. 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 Syke Hall 112 Hauptstr. 5A 28857 Syke, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Syke opened bankruptcy proceedings against Modehaus Schedler Twachtmann & Motog GmbH on Aug. 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Modehaus Schedler Twachtmann & Motog GmbH Attn: Heidrun Twachtmann and Ute Motog, Managers George Route 7-8 31582 Nienburg, Germany The administrator can be contacted at: Dr. Juergen Sander Beeke 22 28844 Weyhe, Germany Tel: 0421/806666 Fax: 0421/8066611 RFS DEKORBODEN: Claims Registration Ends November 12 ---------------------------------------------------- Creditors of RFS Dekorboden GmbH have until Nov. 12 to register their claims with court-appointed provisional administrator Peter Houben. Creditors and other interested parties are encouraged to attend the meeting at 9:02 a.m. on Nov. 17 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 Krefeld Meeting Room H 131 1st Floor Nordwall 131 47798 Krefeld, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on Jan. 5, 2007, at the same venue. The District Court of Krefeld opened bankruptcy proceedings against RFS Dekorboden GmbH on Aug. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: RFS Dekorboden GmbH Niersweg 74-76 47877 Willich, Germany Attn: Ralf Staniek, Manager Schlossstr. 13 41238 Monchengladbach, Germany Ingo Kreuzer, Manager Friedrich-Ebert-Str. 172 41236 Monchengladbach, Germany The administrator can be contacted at: Peter Houben Sternstrasse 58 40479 Duesseldorf, Germany RSS GMBH: Claims Registration Ends November 8 --------------------------------------------- Creditors of RSS GmbH -- Industrieverpackungen have until Nov. 8 to register their claims with court-appointed provisional administrator Karl Schlotterbeck. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 29 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Ludwigsburg Hall 2008 Palace Schuetz Schorndorfer Road 28 Ludwigsburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Ludwigsburg opened bankruptcy proceedings against RSS GmbH -- Industrieverpackungen on Aug. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: RSS GmbH -- Industrieverpackungen Attn: Peter Kuechenmeister and Johanna Buckenleib, Managers Daimlerstr. 35-37 70825 Korntal-Muenchingen, Germany The administrator can be contacted at: Dr. Karl Schlotterbeck Danneckerstrasse 37 70182 Stuttgart, Germany Tel: 0711/244819 SEGGEWIES BAUAUSFUEHRUNG: Claims Registration Ends November 6 ------------------------------------------------------------- Creditors of Seggewies Bauausfuehrung GmbH have until Nov. 6 to register their claims with court-appointed provisional administrator Leo Schoofs. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 27 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Room 106 C 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 Seggewies Bauausfuehrung GmbH on Sept. 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Seggewies Bauausfuehrung GmbH Attn: Ludger Seggewies, Manager Aue 14 46342 Velen, Germany The administrator can be contacted at: Dr. Leo Schoofs Salierstr. 4 46395 Bocholt, Germany ============= H U N G A R Y ============= HUNTSMAN CORP: Moody's Rates Unit's Planned US$400MM Notes at B3 ---------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to Huntsman International LLC's, a wholly owned subsidiary of Huntsman Corporation, 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 US 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. These summarizes the ratings activity: * 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 as it will reduce the company's interest expense by redeeming high coupon debt. The rating outlook 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 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 Corporation 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 UK Base Chemical and Polymer Divestiture). ========= I T A L Y ========= ALITALIA SPA: Hikes Net Debt by EUR91 Million in September ---------------------------------------------------------- The Group's net debt as of Sept. 30, 2006, amounted to EUR1.023 billion, showing an increase in net indebtedness of EUR91 million (+9.8%) compared to the situation on Aug. 31, 2006. The increase is generated by specific external items: -- cash inflows seasonality (as usual mainly wired to the Company from travel agents in the month following ticket sales); September cash inflows were negatively affected by lower Italian industrial activities in August; -- September cash outflows showed, altogether with cash outflows related to the same month, cash outflows related to the previous month of August due to usual slower payments to the main Company suppliers. The Group's cash-to-hand and short-term financial credits as of Sept. 30, 2006, amounted to EUR720 million while the parent company Alitalia as of the same date amounted to EUR747 million. This available liquidity altogether with future cash flows generation of the Company are enough to cover Group's financial needs over the next 12 months and thereafter. It should be noted that as of Sept. 30, 2006, there were several leasing contracts at the Group level -- referring almost entirely to fleet aircraft mostly held by the parent company amounting to EUR139 million -- whose capital share, including lease closure value, amounted to EUR155 million, of which EUR21 million represent the current capital share falling due within twelve months of the reference date, with EUR19 million held by the parent company. By comparison, the same figure as of Aug. 31, 2006, amounted to EUR158 million -- of which EUR24 million euros falling due in the twelve months from the reference date; the corresponding figures for the parent company on Aug. 31, 2006, amounted to EUR142 and EUR21 million respectively. It should also be noted that existing debts to banks are almost entirely backed up by real guarantees (mortgages on aircraft) or by personal guarantees (mainly guarantees issued by banks for export credit). The relative financing contracts contain standard legal clauses relating to withdrawal. None of the contracts refer to specific requirements regarding assets or economic/financial aspects, in order to maintain the credit line. During September 2006, repayments were made of medium/long-term financing amounting to about EUR13 million. Regarding debts of a financial, fiscal and social welfare nature, there were no outstanding sums or payment irregularities on Sept. 31, 2006, both for the parent company and for the other companies in the Group. As far as debts of a commercial nature are concerned, there were no outstanding sums or payment irregularities on Sept. 30, 2006, both for the parent company and for other Group companies, except for those relating to disputed situations. Regarding the latter, there were outstanding sums owed to some airport management companies for disputed debts amounting to a total of 90 million euros as of Sept. 30, 2006. In addition, decisions are still pending for the petitions filed by Alitalia regarding: In addition, decisions are still pending for the petitions filed by Alitalia regarding: -- injunctions issued by an airport management company for a total of about EUR14 million (5 decrees); -- a further injunction has been issued by an IT services supplier for about EUR812,000 (1 decree); -- another injunction has been issued by a professional studio for EUR534,000; -- a contractor for restructuring work has issued an injunction for about EUR635,000; and -- there are injunctions issued by two suppliers for a total of around EUR40,000. Except for the above, there are no other injunction orders or executive actions undertaken by creditors notified as of Sept. 30, 2006, nor are there any threats by suppliers to suspend operations. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- generates around EUR4.8 billion in annual revenue and employs more than 11,000 people. Alitalia flies to about 80 destinations in more than 60 countries from hubs in Rome and Milan and operates a fleet of about 185 aircraft. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. MARK IV: Moody's Lowers Corporate Family Rating to B2 ----------------------------------------------------- Moody's Investors Service lowered the corporate family rating of Mark IV Industries Inc. to B2 from B1, and the rating on the guaranteed second lien senior secured term loan at Dayco Products LLC to B3 from B2. At the same time, Moody's affirmed the ratings of the guaranteed senior secured credit facility at Ba3 and maintained the negative rating outlook. The ratings reflect worsening credit protection measures resulting from declining margins in several of the company's businesses as well as increased debt levels. Performance in its electronic toll collections business has been weaker than expected because of delayed shipments to government agencies, although the company expects to make up the shortfall in the second half of fiscal year 2007. Its automotive OEM segment has suffered from lower production volumes, pricing concessions and rising raw material costs. For the last twelve months ended Aug. 31, 2006, Debt/EBITDA (using Moody's standard adjustments) rose to 6.2x, EBIT/cash interest was approximately 1.3x. Free cash flow was approximately negative US$50 million, driven by lower profitability and higher working capital usage. Moody's noted in its prior rating action that the company's credit metrics were already weak for it ratings. The company's progress to date makes the achievement of solid B1 credit metrics highly unlikely in the near term. The negative outlook continues to reflect Moody's belief that challenging conditions in the North American automotive industry, including lowered production levels and continued pricing pressures, will persist in the near term. Mark IV derives approximately 25% of its revenues from North American automotive OEMs. Additionally, the heavy duty truck segment, one of Mark IV's higher margin businesses, is expected to face an industry-wide downturn in 2007 as new emission standards take effect. Moody's is also concerned that negotiations on the part of government toll road agencies will likely result in reduced transponder toll tag pricing, as this business matures. These factors, combined with the company's remaining required pension contribution of US$42 million in fiscal year 2007, may result in increasing leverage during FY 2007. Liquidity as of Aug. 31, 2006, was comprised of US$85.7 million of cash on hand and approximately US$62 million of availability (as restricted by covenants) under its revolving credit facility. Ratings lowered: Mark IV Industries, Inc. * Corporate Family Rating, to B2 from B1 * Probability of Default Rating, to B2 from B1 * US$150 million senior secured second lien term loan due 2011, to B3 (LGD5, 71%) from B2 (LGD5, 71%) Ratings affirmed: Dayco Products, LLC * Ba3 (LGD3, 31%) rating for the guaranteed senior secured credit facilities consisting of: * US$150 million US/European revolving credit facility due 2010 (up to US$50 million-equivalent to be available in Euros) * US$747 million 7-year US term loan B due 2011 Dayco Europe SrL * US$100 million- (US$91 million remaining balance) equivalent Euro denominated European term loan A due 2010 The last rating action was on Sept. 22 when Mark IV's issue ratings were raised with the LGD Methodology implementation. Future events that have the potential to drive Mark IV's ratings lower include: -- evidence that the company is unable to maintain the technological leadership necessary to hold its leading market positions in its higher margin product lines; -- declines in production volumes of the company's North American and European OEM customers; -- annual price concessions to OEM customers that are not substantially offset by cost-cutting efforts or by sufficiently profitable new business awards; -- material increases in raw materials prices that cannot be passed on to customers; or -- deteriorating liquidity. Consideration for a lower rating could arise if any combination of these factors results in leverage approaching 7.0 x or reduces EBIT/cash interest coverage to 1.0x or lower. Future events that have the potential to drive Mark IV's outlook or ratings higher include: -- growth in the company's higher margin products and continued improvement of the company's operations; -- the generation of material new business awards with sufficient margins to offset negotiated price concessions; -- meaningful debt reduction from operating cash flows or an incremental equity contribution or IPO. Consideration for a higher outlook or rating could arise if any combination of these factors were to increase EBIT/Interest coverage to over 1.9x or reduce leverage to 4.0x. Mark IV is a diversified manufacturer of engineered systems and components utilizing radio frequency identification, information display system, small diesel engines, mechanical power transmission, air admission, fuel and fluid handling and other technologies that serve industrial, transportation and automotive markets. Mark IV manages and reports its operations into two categories: (i) Industrial/Distribution and (ii) Automotive OEM. Annual revenues approximate US$1.8 billion. MAVERICK TUBE: Tenaris Deal Prompts Moody's to Withdraw Ratings --------------------------------------------------------------- Moody's Investors Service confirmed and will subsequently withdraw the ratings for Maverick Tube Corp. Moody's will subsequently withdraw the Ba3 rated corporate family rating, the Ba3 LGD assessment, the B1 and the LGD 5 (73%) ratings on the 1.875% convertible senior subordinated notes. The outlook is stable. Moody's does not rate the other notes of Maverick. The ratings are being confirmed and will subsequently be withdrawn because Maverick has been fully acquired by Tenaris SA and consequently, the notes are not expected to remain outstanding since they are expected to be converted to cash within the next month and receive a make-whole premium as per the terms of the indenture. Moody's also does not currently rate Tenaris or any of its subsidiaries. Headquartered Chesterfield, Missouri, Maverick Tube Corp. -- http://www.tenaris.com/-- produces welded tubular steel products used in the oil and natural gas industry and for various electrical applications. The energy products line consists of oil country tubular goods, couplings and coiled tubing which are used in newly drilled oil and natural gas wells, line pipe used in transporting oil and natural gas and coiled tubing used in well workover and subsea applications throughout the United States, Canada, Argentina, Brazil, China, Colombia, Italy, Japan, and Venezuela. TCL MULTIMEDIA: Restructuring European Operations to Cut Losses --------------------------------------------------------------- TCL Multimedia Technology Holdings Limited, Thomson S.A., TTE Corporation, and TTE Europe SAS have agreed to restructure the European operation of TCL Multimedia Technology Holdings Limited. The agreement includes, among others, variation of certain terms in some existing agreements between TTE Corporation and Thomson S.A. and settlement with Thomson of certain receivables and payables between the Thomson Group and the Group. The restructuring and turnaround of TTE's Europe operations are expected to result in the amicable wind-down of the current activities of TTE Europe SAS and a business transition to a new business model. The process will commence in late October/early November 2006. TCL Multimedia Technology Holdings Limited has recorded substantial losses as a result of the poor business performance of its operations in Europe. It is estimated that the accumulated losses of the Group's investment in Europe as at Sept. 30, 2006 amounted to EUR203 million (HK$2.034 billion). Hence, it has been the top priority of the Company to take measures to drastically restructure its European operation in order to minimize incurring further losses. Europe Restructuring and New Business Model Recently, a major breakthrough has been made for the Europe restructuring as a result of an agreement reached between Thomson S.A., a substantial shareholder of the Company (having shares of the Company representing about 29.3% of the issued share capital thereof), TTE Corporation, a direct wholly owned subsidiary of the Company, TTE Europe SAS, an indirect wholly owned subsidiary of the Company, and the Company. The Term sheet describes the basic framework making possible the amicable wind-down of current activities of TTE Europe and the re-launch of the Company's business in Europe under a new business model. The Term Sheet was signed on Oct. 12, 2006, but was only binding on the parties and effective from Oct. 26, 2006, the date on which TTE Europe, together with its employee representatives, launched its restructuring plan. The process for the amicable wind-down of the activities of TTE Europe, the most important subsidiary of the Group in Europe, is expected to commence in late October/early November 2006 and to include, among others, restructuring of the majority of TTE Europe's current employee base in Europe devoted to Europe commercial activities and winding-up of most of its current operations. The wind-down covers substantially all the activities related to sale and marketing of TV products (excluding OEM business) of the Group in Europe. As part of the process, some other subsidiaries of the Group in Europe, such as the six sales subsidiaries of TTE Europe, in: -- Czech Republic, -- Germany, -- Hungary, -- Italy, -- Spain, and -- Sweden, should also undergo a restructuring in the future. Assets and inventories of the Group in Europe will also be disposed of in due course. Should any agreement be concluded, such may result in a notifiable transaction for the Company under Chapter 14 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited, further announcement will be made as and when appropriate. To maintain the Group's presence in Europe, the Group will pursue a new business model that will expand the Group's existing OEM business serving European customers. Compared to the old business model, this will be a huge simplification of operation. The new operation will have a much simpler supply chain and lean and efficient organization in Europe. It is planned that the majority of support services will be based in Hong Kong and PRC. As a result of the restructuring process, revenues of the Group in Europe will decline in 2007 (compared to 2006), but should rise again in 2008. The scaled- down operation of the Group in Europe and the new business model will reduce operating costs drastically. It is expected that the business of the Group in areas other than Europe, such as the PRC and North America, will not be affected as a result of the restructuring of TTE Europe in Europe. Term Sheet with Thomson The Term Sheet is structured to help TTE Europe to carry out restructuring, wind-down and transition to new business model. It represents the efforts of the Company to find an appropriate restructuring plan for TTE in Europe and also to ensure that the Group's market presence in Europe will be maintained. Implementation of this plan will also require settlement with other creditors of TTE Europe. So far TTE Europe has only discussed with TTE, the Company and Thomson (all being its major creditors) on its restructuring plan and has obtained their assistance and concessions in terms as set out in the Term Sheet. TTE Europe has yet been in detailed discussion with other creditors. In light of major creditors having already agreed to the plan, the board of directors of the Company is confident that other creditors will also cooperate and the restructuring of the European operations will be implemented as planned. The Term Sheet modifies certain existing arrangements and agreements between the Group and Thomson Group which are continuing connected transactions of the Company under Chapter 14A of the Listing Rules. Changes made to the Trademark License Agreement and New Angers Agreement are the more significant changes which will affect the future operation of the Group. Under the Trademark License Agreement between Thomson and TTE to use certain Thomson's registered trademarks for manufacture and sale of TV products in certain countries in the North America, Europe and other regions in return for a royalty fee based on the TTE's net sales of TV products. There is a minimum sales target for TTE to meet, the failure of which will entitle Thomson to terminate the Trademark License Agreement. Due to poor performance in Europe, TTE has not been able to meet the minimum sales target as stipulated. Following the discussions between Thomson and the Group, the parties have decided to amend the Trademark License Agreement. TTE will continue to have the right to use Thomson Trademark in Europe for the next two years and no payment of the royalty fee is required for the said use. For Russia, Ukraine, and Kazakhstan, with payment of royalty fee as agreed in the Trademark License Agreement, TTE can still use the Thomson Trademark for 7 more years up to late 2013. All the terms of the Trademark License Agreement remain unchanged. Under the New Angers Agreement between Thomson and TTE, Thomson sub-contracts its factory in Angers, France, to TTE at a certain hourly rate for manufacturing of TV products, sub-assemblies and modules and supply of rework services at the Angers Factory. In return, TTE guarantees a minimum order of such sub-contracting services in terms of hours and if such minimum hours are not observed, Thomson will invoice TTE for the difference not ordered on the same terms and conditions as the quantity ordered. TTE's orders to the Angers factory have from time to time fallen below the minimum as stipulated in the agreement. In light of the restructuring of Europe activities, the Term Sheet significantly reduces the minimum hours, which TTE must order, to 150,000 hours for year 2007 and to 75,000 hours for year 2008. This represents an average 61% reduction in 2007 and 78% reduction in 2008 of the contracted loads. The subcontracting arrangement will end at the end of 2008 instead of 30 July 2009 as originally agreed. As a result, financial commitment on part of TTE under the New Angers Agreement has been greatly reduced. In addition, the Term Sheet states that Thomson will proceed by January 2007, subject to certain conditions, with the payment of certain payables to TTE in relation to assets of the Angers factory that will not be transferred to TTE. The Term Sheet will render the transaction value to be involved under the aforesaid two agreements much lower than the proposed annual caps approved by the shareholders of the Company on Aug. 18, 2005 for those continuing connected transactions. Thomson will repay, subject to certain conditions, certain sum prepaid by the Group in relation to filing and management of certain intellectual property rights. Further, for an effective re-launch of the Company's business in Europe under a new business model, TTE commits to support the working capital needs of TTE Europe up to a maximum of EUR13 million (HK$130 million). The Board is of the view that the terms as stated in the Term Sheet are pre-requisites that make possible the restructuring for European operation and the best way to resolve the loss making trend for the Group in Europe. Financial Impact Turnover of the Group's European operation for the nine months ended Sept. 20, 2006, amounted to EUR328 million (around HK$3.275 billion), accounting for about 15% of the Group's turnover. Net loss of the European operation for the nine months ended Sept. 30, 2006, amounted to EUR159 million (HK$1.591 billion) while the Group recorded a net loss of HK$1,519 million for the period. Total assets of the European operation as at Sept. 30, 2006, amounted to EUR132 million (HK$1.323 million), representing about 10% of the Group's total assets. The restructuring costs is estimated to be in the region of EUR45 million (HK$450 million) covering primarily the provision for the redundancy payment or retrenchment benefits to the employees and certain other warranty costs or costs associated with termination of services. Part of it will be financed by the net cash-in-flow contributed by Thomson after netting off various payables and receivables between the Group and Thomson Group. It is estimated that after taking into account of the Term Sheet, the cash-out-flow on part of the Company as a result of the restructuring plan, if fully implemented as planned, will amount to about EUR24 million (HK$240 million, which may be higher if the restructuring costs are higher than expected) plus the working capital required for the re-launch of a new business model in Europe, part of which will be financed by realization of assets of the Group in Europe and the balance by the working capital of the Company. As the restructuring is now only at its early stage, the exact impact on the Company's profit and loss for the year ending Dec. 31, 2006, is yet to be determined. It is expected that the exact impact will only be available when the Company finalizes its accounts for the year ended 31 December 2006 and the Company will state the exact impact in the results announcement for the year then ended. The Board believes that the overall restructuring plan will pave the way for the Company to reach profitability in Europe by 2008. In view of the current economic climate and the financial drain on the Group by the European operation, the Board considers it would be beneficial for the Group to substantially scale down its operation in Europe in order to stop incurring further loss and pave its way for recovery. As noted in the unaudited consolidated financial statements of the Company for the nine months ended Sept. 30, 2006, the operation in North America continued to improve whilst operating performance in Emerging Markets and Strategic OEM business demonstrated improvement and the customer base has been expanded consistently. The Board believes that Europe restructuring will benefit the Group as a whole, as much less funding will be required for its European operation and the Group can focus and utilize its resources in other geographical regions in which it operates. Reduction of the loss in Europe and turnaround of the Group's operation in Europe is the critical step in the Group's recovery and ability to post a profit in the forthcoming short term. Headquartered in New Territories, Hong Kong, TCL Multimedia Technology Holdings Limited -- http://www.tclcom.com/-- designs, manufactures and sells electronic products like colored TV, DVD players, VCD players, home cinema hi-fi systems, mobile handsets, Internet-related information technology products, refrigerators and washing machines. Its other activity includes trading electronic parts and components used in the production of color television sets. * * * On Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific reported that the company posted CNY763 million losses of TCL Multimedia Technology Holdings Limited's European operations, which caused losses of the TCL Corp. group to widen to CNY737.56 million. TCR-Asia Pacific recounts that in 2004, TCL acquired the TV unit of French electronics firm Thomson, which uses the Thomson brand in Europe and RCA in North America. TCL grouped all its TV businesses under TMT. TCL MULTIMEDIA: TCL Corp Releases Thomson S.A. from Lockup ---------------------------------------------------------- TCL Multimedia Technology Holdings Limited reveals that TCL Corporation has released Thomson S.A. from the Lockup. Thomson and TCL Corporation entered into the Shareholders' Covenants Agreement to regulate their rights and obligations in the Company on Aug. 10, 2005, when Thomson first became a Shareholder of the Company after exchanging its shares in TTE upon exercise of the Exchange Option under the Exchange Option Agreement for a total of 1,144,182,095 Shares representing about 29.32% of the issued share capital in the Company. Under the Shareholders' Covenants Agreement, both Thomson and TCL Corporation, are subject to the Lockup. The main provisions are: -- neither Thomson nor TCL Corporation may transfer any of its shares in the Company in the first three years after the Closing Date; -- each of Thomson and TCL Corporation may subsequently sell down gradually its respective Shares in the Company; and -- after the fifth anniversary of the Closing Date, neither Thomson nor TCL Corporation will be subject to the Lock Up. The Company became aware of the arrangement or agreement between Thomson and TCL Corporation on the release of the Lockup in about early October 2006. The Company is not a party to the agreement for the release of Lockup, which is an agreement between the two substantial Shareholders of the Company and the Company has no role to play in the agreement. The Company was of the view that the release was merely an agreement at the Shareholders' level and thus no announcement was made at that time. After learning that TCL Corporation had announced on Oct. 31, 2006 that it had released Thomson from the Lockup, the Board considers that the Company should make an announcement to inform its Shareholders of the same. To the best knowledge of the Company, the release of the Lockup is a part of the global arrangement between the two substantial Shareholders of the Company in their efforts to simplify and clarify the general framework of their relationship. To the best knowledge of the Company, TCL Corporation, the controlling shareholder currently indirectly holds 1,512,121,289 Shares, representing about 38.74% of the issued share capital in the Company, is still subject to the Lockup. Upon the release of the Lockup, Thomson is now free to dispose of any of its Shares in the Company. As the release of Lockup concerns only the right of the two substantial Shareholders under the Lockup provision, it is not expected that the release will affect the operation of the Company. The Company is not aware of the current intentions of Thomson regarding its Shares in the Company following the release of the Lockup. If Thomson finally decides to dispose of its Shares in the Company through open market, it is expected that the public float of the Shares will be substantially increased. Under the Shareholders' Covenants Agreement, Thomson will no longer be entitled to nominate two directors out of 11 directors to the Board if its shareholding in the Company is less than 13.25%. About TCL Headquartered in New Territories, Hong Kong, TCL Multimedia Technology Holdings Limited -- http://www.tclhk.com/-- designs, manufactures and sells electronic products like colored TV, DVD players, VCD players, home cinema hi-fi systems, mobile handsets, Internet-related information technology products, refrigerators and washing machines. Its other activity includes trading electronic parts and components used in the production of color television sets. * * * On Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific reported that the company posted CNY763 million losses of TCL Multimedia Technology Holdings Limited's European operations, which caused losses of the TCL Corp. group to widen to CNY737.56 million. TCR-Asia Pacific recounts that in 2004, TCL acquired the TV unit of French electronics firm Thomson, which uses the Thomson brand in Europe and RCA in North America. TCL grouped all its TV businesses under TMT. UNITED TEST: Moody's Assigns (P)Ba3 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service assigned a provisional (P)Ba3 corporate family rating to United Test and Assembly Center Ltd. and a provisional (P)Ba3 senior unsecured rating to UTAC's proposed US$200M convertible bonds due 2013. The ratings outlook is stable. This is the first time that Moody's has assigned ratings to UTAC. The bonds proceeds will be used to repay the company's US$175 million bridge loan for the acquisition of NS Electronics Bangkok, a transaction completed in June 2006, while the balance will be used for general corporate purposes. Moody's expects to affirm the ratings and remove them from their provisional status upon completion of the convertible bonds issuance. "The Ba3 ratings reflect the company's unique market position in memory and MSLP (mixed signal & logic products)-testing services. It enjoys strong sales growth and profitability - against the industry average - due to its test-centric business model," says Moody's Ken Chan, an AVP/Analyst and lead analyst for the company. "UTAC has an experienced management team, which shows financial discipline, operational synergies from the NSEB acquisition, and an improving sales mix that should help buffer it against industry cyclicality. Such positive attributes are consistent with a Ba credit profile," Chan adds. "However, due to the company's aggressive growth plan, coupled with high capital expenditures, we expect it to generate negative free cash flow in the near term which better positions it at the Ba3 rating when compared with its global peers," says Chan. The ratings further reflect UTAC's exposure to the competitive and volatile semiconductor back-end outsourcing assembly and test industry, especially given its limited operating track record. Meanwhile, the high capex nature of its business model -- albeit discretionary -- together with its high operational leverage and relatively small cash buffer translate into cash flow pressure and a likelihood of reliance on external facility lines over the next two years. The ratings outlook is stable, reflecting the expectation that UTAC will continue with its prudent financial policy as it executes its business plan and maintains its competitiveness in the medium term. The ratings could experience upward pressure if the company: (1) demonstrates a longer track record for successfully implementing its business model and sustaining its competitiveness against its global peers in full turnkey solutions and mixed-signal logic products; (2) generates positive FCF to fund organic business growth and for debt reduction, such that TD/Cap < 25-30% and EBIT/Int > 4.5-5.0x on a sustained basis, and (3) builds up its cash holding and maintains a strong level of balance sheet liquidity to buffer against industry cyclicality. On the other hand, downward ratings pressure could evolve if: (1) evidence emerges that UTAC's business model is losing traction, leading to a material weakening in its competitiveness against its global peers; (2) an industry downturn emerges, and which materially impairs its debt-servicing ability; and (3) an aggressive financial policy emerges, and which includes a material debt-funded acquisition, such that TD/Cap > 40-45%, EBIT/Int < 2.5-3.0x over the cycle. United Test and Assembly Center Ltd, based in Singapore and listed on the Singapore Stock Exchange since 2004, is an independent provider of test and assembly services for semiconductor devices, including memory, mixed-signal and logic integrated circuits. The company has manufacturing facilities in Singapore, China (Shanghai), Taiwan and Thailand, and a global sales network in Singapore, Thailand, Taiwan, the US, Italy, Korea and Japan. UNITED TEST: S&P Assigns BB- Rating on Proposed US$200-Mln Bonds ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Singapore's United Test And Assembly Center Ltd., the world's sixth-largest outsourced semiconductor assembly and test company. The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' rating to UTAC's proposed US$200 million convertible bonds due 2013. "The rating on UTAC factors in its favorable position in the semiconductor test market, moderate leverage, and robust growth prospects for the global outsourced semiconductor test and assembly market," said Standard & Poor's credit analyst Raymond Hsu. "Nevertheless, the rating on UTAC is constrained by high industry risks, the company's relatively weak semiconductor assembly operations, and negative free cash flow due to its relatively aggressive expansion plan." UTAC became the world's sixth-largest outsourced semiconductor assembly and test service provider after its acquisition of UTAC Thai Ltd., previously known as NS Electronics Bangkok (1993) Ltd. The acquisition was completed in June 2006. Semiconductor test services accounted for 61% of UTAC's revenue in the first half of 2006. UTAC also provides assembly services for a broad range of leadframe and array packages, partly through turnkey services. About 39% of UTAC's revenues were derived from semiconductor assembly in the first half of 2006. UTAC operated 1,010 wire bonders and 747 testers in its facilities in Singapore, Taiwan, Thailand, and China as at June 30, 2006. The issue proceeds from the proposed convertible bonds will be primarily used to repay the company's US$175 million bridge loan for the acquisition of UTL, pay down other debt and for general corporate purposes. The acquisition of UTL has broadened UTAC's customer base, enhanced its position in the semiconductor assembly market, and diversified its product mix away from the volatile dynamic random access memory (DRAM) market. UTAC's liquidity is adequate. At June 30, 2006, the company had cash and cash equivalent of US$84 million, compared with current debt of US$38 million. The company also has unused committed credit facilities of US$135 million. "The stable outlook reflects our view that UTAC will continue to maintain its favorable position in the semiconductor test market, as well as moderate leverage despite expected high capital spending," said Mr. Hsu. "The rating has factored in the expected impact of the proposed bond issue on UTAC's credit measures. The rating also takes into account integration risks relating to the UTL acquisition." =================== K A Z A K H S T A N =================== AL-BEREKE LLP: Creditors Must File Claims by Nov. 26 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Al-Bereke insolvent on Sept. 7. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Al-Bereke Floor 3 Sutushev Str. 58 Petropavlovsk North Kazakhstan Region Kazakhstan ALMATY GLOBAL: Proof of Claim Deadline Slated for Nov. 29 --------------------------------------------------------- LLP Almaty Global has declared insolvency. Creditors have until Nov. 29 to submit written proofs of claim to: LLP Almaty Global Office 44 Kurmangazy Str. 180 050009 Almaty, Kazakhstan ARGUMENT LLP: Creditors Must File Claims by Nov. 26 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Argument insolvent on Sept. 20. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Argument Room 321 Baitursynov Str. 95 Kostanai Kostanai Region Tel: 8 (3142) 54-59-36 ASTANA FINANCE: Moody's Puts Ba1 Rating on Sr. Unsecured Notes -------------------------------------------------------------- Moody's Investors Service assigned a Ba1 long-term foreign currency debt rating to the senior unsecured foreign currency notes expected to be issued by Astana Finance B.V. (Netherlands), a wholly owned subsidiary of Kazakhstan's JSC Astana Finance. The issue is planned to be jointly and severally unconditionally and irrevocably guaranteed by Kazakhstan's JSC Astana Finance and JSC Leasing Company Astana-Finance. The outlook is stable. The rating is subject to a review of the final documentation for the transaction. Moody's said that, according to the offering memorandum, the holders of the notes will be relying for repayment solely and exclusively on JCS Astana Finance's ability to make payments. The Ba1 rating incorporates a high level of support from the City of Astana based on: -- its position as a non-controlling but key shareholder as well as an important creditor of JSC Astana Finance (on more favorable than arm's length conditions); -- the city's successive capital injections in order to remain a key shareholder, and its presence and active participation on the Board of Directors; -- the City of Astana's declared unconditional support in the event that JSC Astana Finance were unable to meet its obligations; and -- the role still played by JSC Astana Finance in the city's economic and social development. JSC Astana Finance's obligations under the guarantee agreement will rank at all times at least pari-passu with the claims of all other unsecured and unsubordinated creditors of the company, save for those claims that are preferred by any relevant law. The terms and conditions of the notes contain a cross-acceleration clause for the issuer and JSC Astana Finance. Under the terms of the bond issue, both the issuer and the guarantors must comply with certain covenants, such as negative pledge, the limitation on payment of dividends, merge and consolidation, sale of assets and related party transactions. In addition, they stipulate that JSC Astana Finance should not permit consolidated tangible net worth to be less then US$15 million, it should not permit consolidated liquid assets as a percentage of consolidated short-term liabilities to be less than 30% and it is obliged to maintain its financial assets at a proportion of no less than 70% of total assets. Moody's notes that in the event that these financial indicators approach the minimum triggers defined in such covenants then JSC Astana Finance's ratings would become unstable and significant downward rating pressures may ensue. According to Moody's, the notes might be eligible for early redemption by the noteholders in the event of: -- a merger event resulting in a rating downgrade; -- an asset sale resulting in a rating downgrade; and -- the City of Astana ceases to own at least 25% of the issued voting share capital of JCS Astana Finance. In addition, if 75% or more of the principal amount of the notes shall have been redeemed the issuer may redeem the rest of the notes. JSC Astana Finance, incorporated in the Kazakh capital Astana, reported total assets of US$684 million and total capital funds of US$63 million under IFRS as of June 30, 2006. JIRENBAI LLP: Proof of Claim Deadline Slated for Nov. 26 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Jirenbai insolvent on Aug. 29. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Jirenbai Myzy Str. 2/1-214 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 KARAGANDINSKYI METALLURGICHESKYI: Creditors' Claims Due Nov. 29 --------------------------------------------------------------- LLP Karaganda Metallurgical Institute Karagandinskyi Metallurgicheskyi Institute has declared insolvency. Creditors have until Nov. 29 to submit written proofs of claim to: LLP Karagandinskyi Metallurgicheskyi Institute Respublika Ave. 30 Temirtau Karaganda Region Tel/Fax: 8 (3213) 91-56-26 KAZGYU COMMERCE: Claims Registration Ends Dec. 1 ------------------------------------------------ LLP Kazgyu Commerce has declared insolvency. Creditors have until Dec. 1 to submit written proofs of claim to: LLP Kazgyu Commerce Abai Str. 52v Almaty, Kazakhstan Tel: 8 (3272) 33-04-39 KOKTEM-4 LLP: Creditors' Claims Due Nov. 26 ------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Koktem-4 insolvent on Sept. 6. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Koktem-4 Room 321 Baitursynov Str. 95 Kostanai Kostanai Region Kazakhstan Tel: 8 (3142) 54-59-36 TEMIRYAZEVSKOYE LLP: Kostanai Court Starts Bankruptcy Procedure --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region commenced bankruptcy proceedings against LLP Temiryazevskoye on Sept. 22. LLP Temiryazevskoye is located at: Rabochaya Str. 5 Sarykol Sarykol District Kostanai Region Kazakhstan TRIK LLP: Claims Registration Ends Nov. 26 ------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Trik insolvent on Sept. 7. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Nov. 26 to submit written proofs of claim to: LLP Trik Myzy Str. 2/1-214 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 =================== K Y R G Y Z S T A N =================== ARSEN TRADE: Creditors' Claims Due Dec. 15 ------------------------------------------ LLC Arsen Trade has declared insolvency. Creditors have until Dec. 15 to submit written proofs of claim to: LLC Arsen Trade Turusbekov Str. 47-33 Bishkek, Kyrgyzstan Tel: (+996 312) 62-21-00 KYRGYZ AIR: Creditors' Meeting Slated for Nov. 10 ------------------------------------------------- The temporary insolvency manager of LLC Kyrgyz Air will discuss his final report at a creditors' meeting at 10:00 a.m. on Nov. 10 at: Room 5 3rd Floor Building of the Academy of Sciences Chui Ave. 265a Bishkek, Kyrgyzstan The conditions of the world agreement between the Government of Kyrgyz Republic and LLC Kyrgyz Air founder Finrep will also be discussed. Proxies must have authorization to vote. Inquiries can be addressed to (+996 312) 24-39-23. =================== L U X E M B O U R G =================== GELDILUX-TS-2003: Fitch Affirms BB Rating on Class D Notes ---------------------------------------------------------- Fitch Ratings affirmed Geldilux-TS-2003 S.A.'s EUR1.4 billion secured floating-rate notes due 2007 as: -- EUR1.33 billion Class A (ISIN DE000A0AB412): AAA; -- EUR18.9 million Class B (ISIN DE000A0AB420): A; -- EUR23.1 million Class C (ISIN DE000A0AB438): BBB; and -- EUR7 million Class D (ISIN DE000A0AB446): BB. The affirmation is based on the transaction's stable performance to date. The transaction has not incurred any losses or delinquencies since close. The portfolio remains at the maximum portfolio balance and is well in compliance with all its portfolio guidelines. The transaction is currently in its replenishment period, which ends in December 2006. The portfolio profile is almost identical to that at closing. The largest industry concentration is in the real estate sector, and the loans are predominately located in Bavaria. Since close the weighted average term has remained at around 60 days. The current weighted average term is 51.64 days, according to the trustee report dated 15 September 2006. On average loans are around 28% secured, above a minimum threshold of 25%. The transaction represents a true sale, cash flow securitization of short-term loans to German borrowers. Geldilux is a public limited liability company incorporated under the laws of the Grand Duchy of Luxembourg. Geldilux issued Class A1 liquidity notes and A, B, C, D and unrated E floating-rate notes. The net issue proceeds of the A to E notes were used to purchase the initial loan portfolio, and the proceeds of the A1 notes were used to fund the interest reserve account. The liquidity notes have since been paid in full and the reserve account is being maintained at the maximum balance using excess spread. ===================== N E T H E R L A N D S ===================== ASTANA FINANCE: Moody's Puts Ba1 Rating on Sr. Unsecured Notes -------------------------------------------------------------- Moody's Investors Service assigned a Ba1 long-term foreign currency debt rating to the senior unsecured foreign currency notes expected to be issued by Astana Finance B.V. (Netherlands), a wholly owned subsidiary of Kazakhstan's JSC Astana Finance. The issue is planned to be jointly and severally unconditionally and irrevocably guaranteed by Kazakhstan's JSC Astana Finance and JSC Leasing Company Astana-Finance. The outlook is stable. The rating is subject to a review of the final documentation for the transaction. Moody's said that, according to the offering memorandum, the holders of the notes will be relying for repayment solely and exclusively on JCS Astana Finance's ability to make payments. The Ba1 rating incorporates a high level of support from the City of Astana based on: -- its position as a non-controlling but key shareholder as well as an important creditor of JSC Astana Finance (on more favorable than arm's length conditions); -- the city's successive capital injections in order to remain a key shareholder, and its presence and active participation on the Board of Directors; -- the City of Astana's declared unconditional support in the event that JSC Astana Finance were unable to meet its obligations; and -- the role still played by JSC Astana Finance in the city's economic and social development. JSC Astana Finance's obligations under the guarantee agreement will rank at all times at least pari-passu with the claims of all other unsecured and unsubordinated creditors of the company, save for those claims that are preferred by any relevant law. The terms and conditions of the notes contain a cross-acceleration clause for the issuer and JSC Astana Finance. Under the terms of the bond issue, both the issuer and the guarantors must comply with certain covenants, such as negative pledge, the limitation on payment of dividends, merge and consolidation, sale of assets and related party transactions. In addition, they stipulate that JSC Astana Finance should not permit consolidated tangible net worth to be less then US$15 million, it should not permit consolidated liquid assets as a percentage of consolidated short-term liabilities to be less than 30% and it is obliged to maintain its financial assets at a proportion of no less than 70% of total assets. Moody's notes that in the event that these financial indicators approach the minimum triggers defined in such covenants then JSC Astana Finance's ratings would become unstable and significant downward rating pressures may ensue. According to Moody's, the notes might be eligible for early redemption by the noteholders in the event of: -- a merger event resulting in a rating downgrade; -- an asset sale resulting in a rating downgrade; and -- the City of Astana ceases to own at least 25% of the issued voting share capital of JCS Astana Finance. In addition, if 75% or more of the principal amount of the notes shall have been redeemed the issuer may redeem the rest of the notes. JSC Astana Finance, incorporated in the Kazakh capital Astana, reported total assets of US$684 million and total capital funds of US$63 million under IFRS as of June 30, 2006. DALRADIAN EUROPEAN: Moody's Rates Class E Notes at (P)Ba3 --------------------------------------------------------- Moody's assigned provisional ratings to these six classes of notes and a revolving facility issued by Dalradian European CLO II B.V., a bankruptcy remote special purpose vehicle incorporated in the Netherlands: -- EUR76,500,000 Class A-1 Senior Secured Floating Rate Notes: (P)Aaa; -- EUR100,000,000 Revolving Loan Facility: (P)Aaa; -- EUR51,800,000 Class A-2 Senior Secured Floating Rate Notes: (P)Aaa; -- EUR27,850,000 Class B Deferrable Secured Floating Rate Notes: (P)Aa2; -- EUR20,830,000 Class C Deferrable Secured Floating Rate Notes: (P)A2; -- EUR22,580,000 Class D Deferrable Secured Floating Rate Notes: (P)Baa3; and -- EUR13,130,000 Class E Deferrable Secured Floating Rate Notes: (P)Ba3. The ratings of the notes address the expected loss posed to investors by the legal maturity of each class in 2022. These provisional ratings are based upon: -- an assessment of the credit quality and of the diversification of the assets in the initial portfolio; -- an assessment of the eligibility criteria applicable to the future additions to the portfolio; -- the overcollateralization of the notes; -- the protection against losses through the subordination of the Class A-2, B, C, D, E notes and the EUR37,310,000 subordinated notes and the excess spread available in the transaction; -- the analysis of the foreign currency risk involved in the transaction; and -- the legal and structural integrity of the issue. This transaction is a high yield collateralized loan obligation related to a portfolio of senior loans, mezzanine loans, second lien loans and high yield bonds. This portfolio is dynamically managed by Elgin Capital LLP. This is the second European arbitrage CLO transaction managed by Elgin. This portfolio will be partially acquired at closing and ramped-up over the first [12] months of the transaction. Upon conclusion of the ramp-up, the portfolio shall comply among others with these tests subject to Moody's matrices: -- a diversity score greater than 31, -- a weighted average rating factor lower than 2,300 and weighted average spread greater than 2.65%, and -- a weighted average recovery rate greater than 56%. Thereafter, the portfolio of loans will be actively managed and the portfolio manager will have the option to direct the issuer to buy or sell loans. Any addition or removal of loans will be subject to a number of portfolio criteria. This transaction features a multi-currency revolving facility that can be drawn either in Euros, in Sterling or in US Dollar up to EUR35 million equivalent. Initially, Sterling or US Dollar drawings will be used to purchase Sterling or US Dollar denominated assets. Should such non-euro assets default, Sterling or US Dollar advances would not be fully collateralized by Sterling or US Dollar assets and therefore Euro proceeds may need to be converted into Sterling or US Dollar in order to redeem non-euro advances, thus creating a foreign exchange risk exposure. This currency risk is partially mitigated with foreign currency options purchased by the Issuer at closing and has been considered in Moody's analysis. Moody's issues provisional ratings in advance of the final sale of securities, but these ratings only represent Moody's preliminary credit opinions. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the Notes. A definitive rating (if any) may differ from a provisional rating. =========== P O L A N D =========== ELEKTRIM SA: Repaid Debt Prompts Court to Deny Bankruptcy Motion ---------------------------------------------------------------- A Court in Warsaw rejected the motions for bankruptcy of Elektrim S.A. filed by the company's creditors and Elektrim Telekomunikacja following a partial repayment of the company's debt, Polish News Bulletin says. Under an option agreement, Elektrim sold its 48% stake in Polska Telefonia Cyfrowa to Deutsche Telekom for EUR604 million. Deutsche Telekom, however, paid the amount to a Vienna arbitration court. On Oct. 26, Elektrim received EUR525 million of the amount and used it to repay its bondholders. The partial repayment prompted the Warsaw Court on Oct. 27 to dismiss the bankruptcy petition. "We know that court disputes are not over yet, but we have an important stage behind us," Piotr Nurowski, Elektrim Chief Executive, told Poland A.M. The Vienna court has yet to decide whether to release the remaining EUR79 million to Elektrim. Zygmunt Solorz-Zak, the company main shareholder, said Elektrim would use the remaining funds to invest in the power sector and land around Port Praski. The planned investment, Elektrim's spokespeople said, may be impeded by the current legal conflict between the company and Vivendi and Polish unit ET -- over the group's stake in PTC. Vivendi and PTC are protesting Elektrim's stake sale to Deutsche Telekom. A Vienna arbitration court, however ruled in June 2006 in favor of Elektrim, but Vivendi refused to acknowledge the court's decision. Mr. Solorz-Zak also revealed that Elektrim has filed two damage suits against Vivendi and ET and ruled out an amicable settlement. Elektrim, however, also has to pay the bondholders of its residual value -- pegged at 25% of the company's worth above EUR160 million. Estimates place the company's value at up to PLN3.7 billion. "We do not know yet whether there is any further obligation towards the bondholders," lawyer Jerzy Modrzejewski, who pleads for Elektrim, said. "This will depend on a valuation of the company." Headquartered in Warsaw, Poland, Elektrim S.A. -- http://www.elektrim.pl/-- engages in the power and telecommunication businesses. In addition to its core business activities, Elektrim also manufactures sells cables, and provides data transmission services. As reported in the TCR-Europe on Oct. 4, Elektrim filed a bankruptcy petition with the possibility of an arrangement on Sept. 29, five days before its creditors were set to launch a lawsuit over the bankruptcy. Creditors are demanding the company's liquidation and the introduction of an official bankruptcy assignee since they have not received payments from the company for nearly two years. As reported in the TCR-Europe on April 26, Law Debenture Trust Corp., in its capacity as Elektrim's bond trustee, was granted an enforcement clause, allowing bondholders to take possession of the group's assets, against which the debts have been secured. Elektrim bondholders' spokesperson Kamila Gorecka said the debt claims against the company could be satisfied through the sale of the bankrupt estate. She stressed that debt collectors must prioritize the bondholders' claims once Elektrim is declared bankrupt. Ms. Gorecka, however, noted that Elektrim's properties could be seized regardless of the bankruptcy proceedings. ============= R O M A N I A ============= BANCA COMERCIALA: Fitch Affirms C/D Individual Rating ----------------------------------------------------- Fitch Ratings assigned Banca Comerciala Romana's RON200-million bond issue an expected A- rating. At the same time Fitch has assigned BCR a local currency Issuer Default rating of A-. BCR's foreign currency IDR, Short-term, Individual and Support ratings are affirmed at A-, F2, C/D, and 1 respectively. The final rating of the bond is contingent on the receipt of final documents conforming to information already received. BCR's Issuer Default, Short-term and Support ratings reflect the extremely high potential support available to it from its majority shareholder, Austria-based Erste Bank der oesterreichischen Sparkassen. The bond issue will have a maturity of three years. The notes are to rank equally among themselves and at least equally with all other present and future unsecured obligations of BCR save for such obligations as may be preferred by law. BCR is the largest bank in Romania and accounts for approximately 26% of the banking system's assets. Erste Bank completed the acquisition of 61.9% of BCR in October 2006. Private Romanian investment companies and employees of BCR own the remaining shares. =========== R U S S I A =========== ALLIANCE OF BUILDERS-A: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Novosibirsk Region commenced bankruptcy supervision procedure on CJSC Alliance of Builders-A. The case is docketed under Case No. A60-16408/05-10/269. The Temporary Insolvency Manager is: A. Saranin Post User Box 113 634050 Tomsk Region Russia The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: CJSC Alliance of Builders-A Kommunalnaya Str. 1 Balta Moshkovskiy Region Novosibirsk Region Russia BSPB FINANCE: Moody's Rates Loan Participation Notes at B1 ---------------------------------------------------------- Moody's Investors Service has assigned a B1 long-term foreign currency debt rating to the upcoming issue of Loan Participation Notes to be issued on a limited-recourse basis by BSPB Finance plc, a special purpose vehicle incorporated under the laws of Ireland, for the sole purpose of financing senior unsecured loan to Bank Saint-Petersburg (BSPB). The notes will be denominated in US dollars, while the amount, tenor and the price of the notes will be determined by market conditions. The outlook for the rating is positive, in line with that for BSPB's long-term foreign currency deposit rating. Moody's notes that the rating for the LPNs is based on the fundamental credit quality of BSPB, the ultimate obligor under the transaction. The loan to the bank, which is the only source of repayment for the notes, will rank at least pari passu with the claims of all of BSPB's other unsecured creditors, save those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application. Moody's notes that, the underlying loan agreement contains a standard set of covenants such as negative pledge, limitations on mergers, disposals, transactions with affiliates, restricted payments and maintenance of capital adequacy. The rating agency stated that the likelihood of any of the above covenants being triggered is relatively low. However, if such were to occur, it could potentially have adverse liquidity implications for the bank and might exert severe downward pressure on its ratings. Moody's cautions that the transaction also has an embedded rating trigger whereby the notes will become payable if, during the three months after the occurrence of change of control of BSPB, its ratings are downgraded by one or more notches. Moody's notes that the occurrence of change of control of BSPB will be viewed as a risk factor - if the noteholders' put option were to be exercised, this could result in the need to repay a sizeable obligation, thus putting a burden on the bank's financial resources and potentially destabilizing the bank's ratings further. Bank Saint-Petersburg is headquartered in Saint Petersburg, Russia and, according to IFRS accounts for the first six months of 2006 (reviewed by auditors), reports total assets of US$1.467 billion. BUILDING MATERIALS: Court Names N. Surtaev as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. N. Surtaev as Insolvency Manager for LLC Building Materials. He can be reached at: N. Surtaev Diksona Str. 1-203 660020 Krasnoyarsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-15040/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: LLC Building Materials S. Lazo Str. 28-259 Krasnoyarsk Region Russia DIVMET-METALLIST: Court Names M. Polyakov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Altay Region appointed Mr. M. Polyakov as Insolvency Manager for CJSC Divmet-Metallist. He can be reached at: M. Polyakov Post User Box 130 Vorovskogo Str. 140 656002 Barbaul Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-10211/06-B. The Debtor can be reached at: CJSC Divmet-Metallist Depovskaya Str. 39 Novoaltaysk 658080 Altay Region FLORA OJSC: Tatarstan Bankruptcy Hearing Slated for January 16 -------------------------------------------------------------- The Arbitration Court of Tatarstan Republic will convene at 2:00 p.m. on Jan. 16, 2007, to hear the bankruptcy supervision procedure on OJSC City Green Household Flora. The case is docketed under Case No. A65-17243/2006-SG4-27. The Temporary Insolvency Manager is: Y. Bolotov Post User Box 392 OPS 10 Zelenodolsk 422540 Tatarstan Republic Russia The Arbitration Court of Tatarstan Republic is located at: Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Republic Russia The Debtor can be reached at: OJSC City Green Household Flora Ostrovskogo Str. 46 Zelenodolsk 422540 Tatarstan Republic Russia GAZPROMBANK ZAO: Gazprom Exchanges Stake for Mosenergo Holdings --------------------------------------------------------------- OAO Gazprom will exchange its 24.9% stake in Gazprombank ZAO for non-state pension fund Gazfond's 19.87% stake in AO Mosenergo The company's Executive Committee will make relevant adjustments to Gazprom's 2006 budget to supplement the deal. The companies did not disclose of the deal amount. About Gazprom Headquartered in Moscow, Russia, OAO Gazprom (RTS: GAZP; MICEX: GAZP; LSE: OGZD) -- http://www.gazprom.ru/eng-- produces 94% of the country's natural gas, controls 25% of the world's reserves, and is also the world's largest gas producer. It focuses on gas exploration, processing, transport, and marketing. About Gazprombank Headquartered in Moscow, Russian Federation, Gazprombank -- http://www.gazprombank.ru/-- a subsidiary of OAO Gazprom, offers services primarily to the gas industry. It offers syndicated loans, participation loans, factoring, lease financing, cash and settlement services, money transfers and credit cards. * * * As reported in the TCR-Europe on Oct. 25, Standard & Poor's Ratings Services raised its long-term counterparty credit rating on Russia-based Gazprombank to 'BB+' from 'BB', and its Russia national scale rating to 'ruAA+' from 'ruAA'. At the same time, the 'B' short-term counterparty credit rating was affirmed. S&P said the outlook is stable. On Dec. 22, 2005, Moody's Investors Service upgraded Gazprombank's Financial Strength Rating to D- from E+; the bank's Baa2/Prime-2 long-term and short-term foreign currency deposits ratings as well as its Baa1 long-term senior debt rating remain unchanged. Moody's said the outlook for the ratings is stable. KARASEVSKIY CERAMIC: Bankruptcy Hearing Slated for January 23 ------------------------------------------------------------- The Arbitration Court of Moscow Region will convene at 10:00 a.m. on Jan. 23, 2007, to hear the bankruptcy supervision procedure on CJSC Karasevskiy Ceramic Factory. The case is docketed under Case No. A41-K2-15664/06. The Temporary Insolvency Manager is: V. Kofnov Apartment 221 Velozavodskaya Str. 9 109280 Moscow Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Karasevskiy Ceramic Factory Lesnoy Kolomenskiy Region 140451 Moscow Region Russia KRITOVSKOYE OJSC: Court Names A. Timoshkevich to Manage Assets -------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. A. Timoshkevich as Insolvency Manager for OJSC Kritovskoye. He can be reached at: A. Timoshkevich Post User Box 16795 660074 Krasnoyarsk-74 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-8479/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: OJSC Kritovskoye Kritovo Bogotolskiy Region Krasnoyarsk Region Russia LOGOVSKOYE CJSC: Altay Bankruptcy Hearing Slated for Feb. 26 ------------------------------------------------------------ The Arbitration Court of Altay Region will convene on Feb. 26, 2007, to hear the bankruptcy supervision procedure on CJSC Logovskoye. The case is docketed under Case No. A03-8761/06-B. The Temporary Insolvency Manager is: G. Suslin Post User Box 3471 Barnaul 656049 Altay Region Russia The Debtor can be reached at: CJSC Logovskoye Titova Str. 9 Kogovskoye Pervomayskiy Region 658070 Altay Region Russia MIBEKS OJSC: Court Names V. Yumanov as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. V. Yumanov as Insolvency Manager for OJSC Mibeks. He can be reached at: V. Yumanov Post User Box 11940 660028 Krasnoyarsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-14697/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: OJSC Mibeks Zheleznodorozhnikov Str. 18v 660099 Krasnoyarsk Region Russia NIVA CJSC: Court Names A. Nesterov as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. A. Nesterov as Insolvency Manager for CJSC Niva. He can be reached at: A. Nesterov Post User Box 20647 660017 Krasnoyarsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-11622/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC Niva Pobedy Str. 1 Kazantsevo Shushenskiy Region 662721 Krasnoyarsk Region Russia PBB LPN: Fitch Assigns B-/RR4 Ratings to US$20-Mln Notes Issue -------------------------------------------------------------- Fitch Ratings assigned PBB LPN Issuance Ltd.'s upcoming US$20 million notes issue, due in May 2008, an expected Recovery rating of RR4 and an expected Long-term rating of B-. The notes are issued under the US$100 million loan participation program established in July 2005. The proceeds from the notes are to be used solely for financing a loan to Russia's JSC Probusinessbank, which is rated Long-term Issuer Default B- with Stable Outlook, Short-term B, Individual D, Support 5, and National Long-term BB+/Stable Outlook. The final rating of the issue is contingent upon receipt of final documentation conforming materially to information already received. The notes are limited recourse obligations of the issuer and noteholders will be relying solely on PBB meeting its obligations under the loan agreement. PBB is a medium-sized Russia's bank, with consolidated (unaudited) assets of RUR27.5 billion at end-H106. The bank's activities are concentrated on SME lending and retail lending with a focus on the middle and upper middle class retail segment. Headquartered in Moscow, the bank has implemented a strategy focusing on the regional development of its franchise, both through organic growth and acquisitions. Through acquisitions PBB has strengthened its positions in the Volga region and Yekaterinburg. PROGRESS CJSC: Krasnoyarsk Bankruptcy Hearing Slated for Jan. 31 ---------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region will convene at 11:00 a.m. on Jan. 31, 2007, to hear the bankruptcy supervision procedure on CJSC Progress. The case is docketed under Case No. A33-14902/2006. The Temporary Insolvency Manager is: E. Sapozhnikova Post User Box 1162 660016 Krasnoyarsk Region Russia The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC Progress Rudyanoye Kanskiy Region Krasnoyarsk Region Russia ROTOR CENTRE: Court Names S. Piskarev as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Volgograd Region appointed Mr. S. Piskarev as Insolvency Manager for CJSC Rotor Centre (TIN 3442046889). He can be reached at: S. Piskarev Ardatovskaya Str. 29 4000120 Volgograd Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-7708/06-s55. The Debtor can be reached at: CJSC Rotor Centre Lenina Pr. 71 Volgograd Region Russia SEVERO-ZADONSKIY CONDENSER: Names A. Baranov to Manage Assets ------------------------------------------------------------- The Arbitration Court of Tula Region appointed Mr. A. Baranov as Insolvency Manager for OJSC Severo-Zadonskiy Condenser Factory (TIN 7114000381). He can be reached at: A. Baranov Balaklavskiy Pr. 3-419 177639 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A68-33/B-06. The Arbitration Court of Tula Region is located at: Hall 35 Sovetskaya Str. 112 Tula Region Russia The Debtor can be reached at: OJSC Severo-Zadonskiy Condenser Factory Michurina Str. 1 Severo-Zadonsk Location Donskoy 301790 Tula Region Russia TAT-OIL-GAS-STROY: Court Names M. Basyrov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Tatarstan Republic appointed Mr. M. Basyrov as Insolvency Manager for OJSC Tat-Oil-Gas-Story. He can be reached at: M. Basyrov Post User Box 104 Kazan 420126 Tatarstan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A65-8408/2006-SG4-26. The Arbitration Court of Tatarstan Republic is located at: Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Republic Russia The Debtor can be reached at: OJSC Tat-Oil-Gas-Story Pushkina Str. 66 Almetyevsk 423450 Tatarstan Republic Russia WIRELESS COMMUNICATION: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Novosibirsk Region commenced bankruptcy supervision procedure on CJSC Wireless Communication. The case is docketed under Case No. A45-20566/05-10/322. The Temporary Insolvency Manager is: A. Saranin Post User Box 113 634050 Tomsk Region Russia The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: CJSC Wireless Communication Skopin 391830 Novosibirsk Region Russia =========== T U R K E Y =========== TURKIYE GARANTI: Fitch Affirms Default Rating at BB --------------------------------------------------- Fitch Ratings affirmed Turkiye Garanti Bankasi A.S.'s foreign currency Issuer Default rating at BB. At the same time the agency has affirmed Garanti's other ratings at local currency IDR BB+, Short-term foreign and local currency B, Individual C, Support 3, and National Long-term AA. The Outlooks on the IDRs are Positive and the Outlook on the National rating is Stable. The ratings reflect Garanti's improved asset quality, enhanced profitability, diversified funding and support from General Electric Consumer Finance. In December 2005, Dogus Holding, then the majority shareholder of Garanti, sold a 25.5% stake in the bank to GECF. The two principal shareholders now also have equal board representation. Garanti's management has remained in place. Although GECF has purchased a minority stake, it has made clear that its investment in Turkey is strategic and has begun to enter joint ventures with the bank so that each can benefit from the other's product and market expertise. Consolidated pre-tax earnings totaled TRY680.2 million during H106, a 45% increase over H105. Garanti benefited from gains in net fees and commissions, cost control and a reduction in impairment losses. This was partially offset by slower expansion in net interest income caused by a reduction in real loan growth, elimination of retail revenues and a net FX loss sustained on the bank's open position during H106 as a result of the depreciation of the Turkish Lira. Capital ratios deteriorated due to a common dividend and a substantial increase in risk-weighted assets as the loan portfolio grew 51% during H106. Consolidated capital was 11.46% at end-June 2006. Tier 2 capital diminished due to downward mark-to-market of available-for-sale reserves. Due to improved profits, equity has started to recover in Q306. NPLs improved to 2.3% of loans with significantly better reserve coverage of 97%. Garanti is Turkey's third largest private commercial bank by assets and provides a full range of corporate, commercial and retail banking services. At end-H106, 28% of the shares were held by Dogus Group, which is engaged in automotive, construction, tourism, media and financial services. GECF is a wholly owned subsidiary of General Electric Company, which is active in commercial finance, real estate, aviation, consumer finance, insurance, equipment and other services. ============= U K R A I N E ============= ASTRABUD LLC: Court Names Viktor Denisenko as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Kyiv Region appointed Viktor Denisenko as Liquidator/Insolvency Manager for LLC Astrabud (code EDRPOU 32984575). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 27. The case is docketed under Case No. 43/698. 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 Astrabud Degtyarivska Str. 31 04119 Kyiv Region Ukraine CHAJKA SANITARY: Court Names Radion Kravcheno as Liquidator ----------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Radion Kravcheno as Liquidator/Insolvency Manager for LLC Childrens Sanitary Center Chajka (code EDRPOU 32298077). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 5. The case is docketed under Case No. 21/82/06. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Childrens Sanitary Center Chajka Bahchisarajska Str. 5 Energodar Zaporizhya Region Ukraine DNIPROPETROVSK SILICATE: Viktoriya Androsova to Manage Assets ------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Viktoriya Androsova as Liquidator/Insolvency Manager for OJSC Dnipropetrovsk Silicate Plant. The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 25. The case is docketed under Case No. B 26/8/02. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: OJSC Dnipropetrovsk Silicate Plant Komisar Kirilov Str. 1-b 49000 Dnipropetrovsk Region Ukraine GRIFIN LLC: Court Names Radion Kravcheno as Insolvency Manager -------------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Radion Kravcheno as Liquidator/Insolvency Manager for LLC GRIFIN (code EDRPOU 32407245). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 4. The case is docketed under Case No. 21/82/06. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Grifin Komsomolska Str. 55/109 Energodar Zaporizhya Region Ukraine ITM LLC: Sumi Court Names Boris Krivenko as Insolvency Manager -------------------------------------------------------------- The Economic Court of Sumi Region appointed Boris Krivenko as Liquidator/Insolvency Manager for LLC ITM (code EDRPOU 14004734). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 24. The case is docketed under Case No. 8/374-06. The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: LLC ITM Lenin Str. 16-A Stetskivka Sumi District 42303 Sumi Region Ukraine IVANIVSKE: Court Names Oksana Venska as Insolvency Manager ---------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Oksana Venska as Liquidator/Insolvency Manager for LLC Ivanivske (code EDRPOU 30506236). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 12. The case is docketed under Case No. B 26/94/06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Ivanivske Ivanivka Mezhevskij District 52952 Dnipropetrovsk Region Ukraine KRASILIV MACHINE: Court Commences Bankruptcy Supervision -------------------------------------------------------- The Economic Court of Hmelnitskij Region commenced bankruptcy supervision procedure on OJSC Krasiliv Machine Building Plant (code EDRPOU 14310394) on Sept. 27. The case is docketed under Case No. 13/143-B. The Temporary Insolvency Manager is: Oleg Sinishin Dragomirov Str. 10-a/29 01103 Kyiv Region Ukraine The Economic Court of Hmelnitskij Region is located at: Nezalezhnosti Square 1 29000 Hmelnitskij Region Ukraine The Debtor can be reached at: OJSC Krasiliv Machine Building Plant Centralna Str. 16 Krasiliv 31000 Hmelnitsij Region Ukraine LOTOS CJSC: Kyiv Court Starts Bankruptcy Supervision ---------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on Agrarian-Production CJSC Lotos (code EDRPOU 24210104). The case is docketed under Case No. 275/ 2b-2006. The Temporary Insolvency Manager is: Nina Dovgal Nauki Avenue 86/38 03083 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: Agrarian-Production CJSC Lotos Roza Luksemburg Str. 102 Tarasha 09500 Kyiv Region Ukraine NEVA PLANT: Hmelnnitskij Court Starts Bankruptcy Supervision ------------------------------------------------------------ The Economic Court of Hmelnnitskij Region commenced bankruptcy supervision procedure on OJSC Plant Neva (code EDRPOU 14307972) on Sept. 27. The case is docketed under Case No. 13/193-B. The Temporary Insolvency Manager is: Oleg Barabash Tiha Str. 25 Hmelnitskij Region Ukraine The Economic Court of Hmelnitskij Region is located at: Nezalezhnosti Square 1 29000 Hmelnitskij Region Ukraine The Debtor can be reached at: OJSC Plant Neva Kurchatov Str. 6 29025 Hmelnitskij Region Ukraine SLOVYANETS ENTERPRISE: Oleksandr Shevich to Liquidate Assets ------------------------------------------------------------ The Economic Court of Sumi Region appointed Oleksandr Shevich as Liquidator/Insolvency Manager for Joint Ukrainian-Bulgarian Enterprise Slovyanets (code EDRPOU 05381834). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 14. The case is docketed under Case No. 7/150-06. The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: Joint Ukrainian-Bulgarian Enterprise Slovyanets Konotoo, Virivska Str. 64 Sumi Region Ukraine TEHELEKTROSERVICE JSCCT: Volodimir Glyadchenko to Manage Assets --------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Volodimir Glyadchenko as Liquidator/Insolvency Manager for JSCCT Scientific-Production Enterprise Tehelektroservice (code EDRPOU24443280). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 27. The case is docketed under Case No. B 15/165-06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: JSCCT Scientific-Production Enterprise Tehelektroservice Zaporizke Shose 2A/26 49107 Dnipropetrovsk Region Ukraine ZORYANIJ LLC: Court Names Viktor Denisenko as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Kyiv Region appointed Viktor Denisenko as Liquidator/Insolvency Manager for LLC Trade House Zoryanij (code EDRPOU 32994491). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 27. The case is docketed under Case No. 43/697. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Trade House Zoryanij Tankova Str. 4 04112 Kyiv Region Ukraine =========================== U N I T E D K I N G D O M =========================== ACXIOM CORP: Earns US$21.7 Million for Second Quarter 2007 ---------------------------------------------------------- Acxiom Corp. reported financial results for the second quarter of fiscal 2007 ended Sept. 30, 2006. Consolidated net earnings for the quarter increased 204% to US$21.7 million. Gross margin increased to 27.5% from 26.2% in the same quarter a year ago. Second-quarter revenue totaled US$348.3 million, an increase of 5.4% over the same quarter last year. "We are pleased that Acxiom delivered another solid performance in the second quarter and remains on track to meet the fiscal 2007 targets we communicated at our Sept. 27 analysts' meeting in New York," Company Leader Charles D. Morgan said. "We continue to execute the fundamentals of our business and are delivering the results that we expected. I believe we are well positioned for a successful second half of the fiscal year." Highlights: -- Revenue of US$348.3 million, up 5.4% from US$330.5 million in the second quarter a year ago. -- Income from operations of US$41.9 million, a 123% increase compared to US$18.8 million in the second quarter last year. Last year's second-quarter results included the impact of net pretax charges of US$15.8 million associated with restructuring, the sale of non-strategic operations and other unusual items. Excluding the impact of those charges, income from operations would have been up 21%. -- Diluted earnings per share of US$.25, a 213% increase compared to US$.08 in the second quarter of fiscal 2006. The impact of the net charges described above reduced diluted EPS by US$.12 for the second quarter last year. Excluding this impact, diluted earnings per share increased 25%. -- Operating cash flow of US$64.4 million and free cash flow available to equity of US$15.3 million. -- Gross margin of 27.5% compared to 26.2 percent in the same quarter last year. -- Computer, communications and other equipment expense equaling 20.9% of revenue compared to 23.1 percent of revenue in the second quarter of fiscal 2006. "The improvement in our earnings and margins -- assisted by reduced computer expense as a percentage of revenue -- shows the increasing strength of our business and the results of our initiatives to improve operational efficiencies," Mr. Morgan said. Mr. Morgan also noted that Acxiom recently completed new contracts with Procter & Gamble Co., E*TRADE FINANCIAL Corp., D&B and Safety-Kleen Systems, Inc. Based in Little Rock, Arkansas, Acxiom Corp. (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. Acxiom has a team of specialists with sales and business development associates based in the largest Latin American markets: Brazil, Argentina and Mexico. In Europe, Acxiom has operations in France, Germany, the Netherlands, Portugal, Spain, and the United Kingdom. * * * Standard & Poor's Ratings Services assigned on Sept. 6, 2006, its loan and recovery ratings to Little Rock, Arkansas-based Acxiom Corp.'s proposed US$800 million secured first-lien financing. The first-lien facilities consist of a US$200 million revolving credit facility and a US$600 million term loan. They are rated 'BB' with a recovery rating of '2'. As reported in the Troubled Company Reporter on Aug. 25, 2006, Moody's Investors Service assigned a Ba2 rating to Acxiom Corporation's US$800 million senior secured credit facilities, while affirming its corporate family rating of Ba2. Moody's said the rating outlook is stable. ALLEN CIVIL: Brings In Liquidators from Lines Henry --------------------------------------------------- Neil Henry and Michael Simister of Lines Henry were appointed Joint Liquidators of Allen Civil Engineering Contractors Limited on Oct. 17 for the creditors' voluntary winding-up procedure. The company can be reached at: Allen Civil Engineering Contractors Limited Crown House High Street Tyldesley Manchester Lancashire M29 8AL United Kingdom Tel: 01942 796 363 Fax: 01942 796 339 ASTRAL CONSERVATORY: Taps Chantrey Vellacott as Administrators -------------------------------------------------------------- David John Oprey and John Charles Heath of Chantrey Vellacott DFK LLP were appointed joint administrators of Astral Conservatory Systems Ltd. (Company Number 03101569) on Oct. 16. Chantrey Vellacott DFK -- http://www.cvdfk.com/-- is one of the oldest firms of chartered accountants in the United Kingdom. It provides accounting, taxation and related advisory services. Astral Conservatories Systems Ltd. can be reached at: Leatherhead Road Chessington Surrey KT9 2HN United Kingdom Tel: 01372 741 371 Fax: 01372 741 372 BUNDLES LIMITED: Creditors' Meeting Slated for November 6 --------------------------------------------------------- Creditors of Bundles Limited (t/a Mortgagebundles.com) (Company Number 05212728) will meet at 11:00 a.m. on Nov. 6 at: Tenon House Ferryboat Lane Sunderland SR5 3JN United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Nov. 3 at: Ian William Kings Administrator Tenon Recovery Tenon House Ferryboat Lane Sunderland SR5 3JN United Kingdom Tel: 0191 511 5000 Fax: 0191 511 5001 Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. CARNEY PRINT: Names David Paul Hudson Liquidator ------------------------------------------------ David Paul Hudson of Begbies Traynor was appointed Liquidator of Carney Print Limited (formerly Cope Printers Limited) on Oct. 17 for the creditors' voluntary winding-up procedure. The company can be reached at: Carney Print Limited 141 New Bedford Road Luton Bedfordshire LU3 1LF United Kingdom Tel: 015 8273 7082 Fax: 01582 402608 United Kingdom CB RICHARD: Inks Deal to Acquire Trammell Crow for US$2.2 Bln ------------------------------------------------------------- Richard Ellis Group Inc. has entered into a definitive agreement to acquire Trammell Crow Company for US$49.51 per share of common stock in cash. The acquisition will expand CB Richard Ellis' global leadership and strengthen its ability to provide integrated account management and outsourcing solutions. The transaction is valued at approximately US$2.2 billion, including the assumption of Trammell Crow Company's corporate debt as well as transaction and integration costs. It is expected to close either in late 2006 or early 2007, subject to approval by Trammell Crow Company's shareholders and federal regulatory agencies as well as other customary conditions. Upon completion of the transaction, the Company will have combined pro-forma 2006 revenues of approximately US$4.4 billion and 21,000 employees. It would be the first commercial real estate services company to qualify for the FORTUNE 500 list of the largest U.S. corporations. The combination of the two companies is expected to generate meaningful net expense synergy savings. "Our strategic objective has long been to create the market- leading commercial real estate services firm delivering comprehensive solutions to our clients. Well targeted acquisitions have played a pivotal role in our strategy," CB Richard Ellis' president and chief executive officer Brett White said. "With the acquisition of Insignia in 2003, we achieved preeminence in our transaction business. Now the acquisition of Trammell Crow Company creates the best-in-class corporate outsourcing and institutional property management business, and further augments our transaction business. "Trammell Crow Company is one of the premier service companies in our industry, with a rich history, dedicated employees and strong management, a stellar client base and core competencies that are highly complementary to our own." Trammell Crow Company provides integrated outsourcing solutions for a stable of prestigious corporate clients, and the combined company will provide services to more than 85% of the Fortune 100. As a result of the transaction, CB Richard Ellis' contractual revenues associated with outsourcing activities are anticipated to increase from approximately 8% to 18% of total revenues, based on 2006 expected results. Upon completion of the transaction, Trammell Crow Company's Development and Investment business will be run as a wholly owned but independently operated subsidiary. It will retain the highly valued Trammell Crow Company brand name. Robert E. Sulentic, chairman and chief executive officer of Trammell Crow Company, will join CB Richard Ellis as Group President with responsibility for the Development and Investment business as well as the Company's EMEA and Asia-Pacific operations. "We are excited about having the Trammell Crow Company team join with ours and its service offerings becoming a valuable part of our platform," Cal Frese, CB Richard Ellis' president, Americas Region, said. "Importantly, both companies have very similar and proud heritages that are embedded in their corporate cultures, and which highly value integrity, work ethic and customer service excellence," Mr. Frese said. "We've had terrific success with integrating large service companies in the past, based on the idea of adopting the best people, processes and ideas of both companies, and we believe this integration will also succeed because of the similar cultures and business fit." The Company plans to issue US$2.2 billion of term loans to finance the transaction, and will also amend or refinance its existing US$600 million revolving credit facility. In addition, the Company plans to sell Trammell Crow Company's approximately 20% ownership interest in Savills, plc, a real estate services provider in the United Kingdom. The Company's initial view, to be refined at a later date, is that on a pro-forma basis, assuming the transaction had been completed on Jan. 1, 2006, and after giving effect to the first- year expected net expense synergy savings and excluding one-time transaction and integration costs, the transaction would generate incremental percentage earnings accretion per share in the low teens. Headquartered in Los Angeles, California, CB Richard Ellis Group, Inc. (NYSE: CBG) -- http://www.cbre.com/-- a FORTUNE 1000 company, is the world's largest commercial real estate services firm (in terms of 2005 revenue). With approximately 14,500 employees, the Company serves real estate owners, investors, and occupiers through more than 200 offices worldwide (excluding affiliate and partner offices). CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; investment management; appraisal and valuation; research and consulting. Founded in 1906, CB Richard Ellis marks a century of excellence in real estate services this year. CB RICHARD: Acquisition Deal Spurs Moody's to Affirm Ba1 Ratings ---------------------------------------------------------------- Moody's Investors Service affirmed the senior debt ratings of CB Richard Ellis Services, Inc. at Ba1 with a stable outlook following the announcement that CBRE will acquire Trammell Crow Company in a transaction valued at US$2.2 billion. This transaction will solidify CB Richard Ellis' leadership position as a commercial real estate services provider in the U.S. market, and materially shift its services platform to less volatile business lines. CBRE's property and facilities management business currently contributes 8% of total revenue, and should shift to 18% after closing. Tempering these positive attributes is the fully leveraged nature of this transaction. CB Richard Ellis plans to fund the Trammell Crow acquisition with US$2.2 billion of term loan debt, which will increase initial net debt to EBITDA to between 2.5x and 3.0x. The stable rating outlook reflects Moody's expectation that CBRE will paydown acquisition debt with operating cash flow over the next few years without incurring additional debt, while successfully integrating Trammell Crow and sustaining its EBITDA margins in the high-teens. Ratings improvement is dependent upon CBRE's ability to further develop its worldwide franchise with at least equal shares of revenue from the Americas, EMEA (Europe, Middle East and Africa) and Asia-Pacific, while growing and stabilizing its EBITDA margins to at least 18%. Alternatively, ratings could be upgraded should at least 40% of its recurring operating cash flow be contributed by its less volatile business lines, including investment, property and facilities management. Sustained deterioration in operating performance resulting in a drop in margins below 12%, or a change to a permanent (rather than transitional) leverage capital strategy, would likely result in a downgrade. Ratings affirmed: CB Richard Ellis Services, Inc. * senior secured bank credit facility at Ba1; and * senior unsecured debt at Ba1. In April 2006, Moody's raised the senior debt ratings of CB Richard Ellis Services, Inc. to Ba1, from Ba3. CB Richard Ellis Services, Inc. [NYSE: CBG] is the largest global provider of commercial real estate services. Services it provides include property sales/leasing brokerage, property management, corporate services and facilities management, capital markets advice and execution, appraisal/valuation services, research and consulting. CB Richard Ellis is headquartered in Los Angeles, California, USA, and has approximately 14,500 employees and over 200 offices across more than 50 countries. Trammell Crow Company [NYSE: TCC] is a diversified commercial real estate services company providing brokerage, project management, building management, and development and investment services to both investors in and users of commercial real estate. CB RICHARD: S&P Puts BB+ Ratings on CreditWatch Negative -------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on CB Richard Ellis Services Inc., including its 'BB+' long-term counterparty credit rating, on CreditWatch with negative implications. "We took this rating action in response to the company's announced acquisition of Trammel Crow Co.," explained Standard & Poor's credit analyst Robert B. Hoban Jr. "Although we believe that Trammel is a good strategic fit for CB Richard Ellis, the financing of the acquisition with debt will greatly increase debt leverage and reduce interest coverage." In addition, the transaction will result in substantial negative tangible equity, which becomes an issue given management's plans to continue Trammel's direct real estate investment operations. Standard & Poor's will be meeting with the company to fully assess the acquisition and determine the final ratings outcome. If the rating agency determines that the amount of credit and market risk being taken on is significant, the ratings could be lowered. The ratings on CB Richard Ellis reflect the company's results being dependent on cyclical commercial real estate sales and leasing transaction volume, moderate interest coverage, and high debt leverage. Although management had been aggressively paying down debt and recovering from negative tangible equity from past acquisitions, this acquisition will reverse the trend. Pro forma end-of-year total recourse debt is a very high 2x capital, and negative tangible equity slides to negative Us$2.3 billion. These pro forma figures assume that CB Richard Ellis will successfully tender one existing debt issue and that the company is able to sell a Trammel minority interest. CB Richard Ellis is the operating subsidiary of CB Richard Ellis Group Inc., a publicly traded company. The company is based in Los Angeles, Calif., and is a recognized leader in the commercial real estate sales and services industry, with trailing-12-month revenue through the third quarter of about US$2.9 billion. The company is the largest commercial real estate services company in the U.S., which is its largest market, and has a strong market position in U.S. and European sales and leasing, property management, mortgage brokerage, and investment advising. CIVIL COMMUNICATIONS: Taps Abbott Fielding as Administrators ------------------------------------------------------------ Andrew John Tate and Nedim Patrick Ailyan of Abbott Fielding were appointed joint administrators of Civil Communications Ltd. (Company Number 05401404) on Oct. 13. The administrators can be reached at: Andrew John Tate and Nedim Patrick Ailyan Abbott Fielding Nexus House 2 Cray Road Sidcup Kent DA14 5DB United Kingdom Tel: 020 8302 4344 Fax: 020 3248 4035 Civil Communications Ltd. can be reached at: Low Heath Cottage Low Heath Petworth West Sussex GU28 0HG United Kingdom Tel: 017 9834 4772 Fax: 017 9834 3841 COACH COMPANIONS: Taps Robert Charles Millichap as Administrator ---------------------------------------------------------------- Robert Charles Millichap of Little Badnage were appointed joint administrators of Coach Companions Ltd. (Company Number 3012257) on Oct. 11. The administrator can be reached at: Robert Charles Millichap Little Badnage Badnage Lane Tillington Herefordshire HR4 8LP United Kingdom Coach Companions Ltd. can be reached at 12 St. Botolphs Green Leominster Herefordshire HR6 8ER United Kingdom Tel: 01568 620 279 Fax: 01568 616 906 CORUS GROUP: Confirms Issuance of Ordinary Shares and Bonds ----------------------------------------------------------- In accordance with Rule 2.10 of the City Code on Takeovers and Mergers, Corus Group plc confirmed that as at close of business on Oct. 30, it had these relevant securities in issue (including any ordinary shares represented by American Depositary Shares but excluding any ordinary shares held in treasury): -- 898,369,355 ordinary shares of 50p each under ISIN code GB00B127GF29. -- 3.0% guaranteed convertible unsubordinated bonds due 2007 amounting to EUR307,000,000 convertible into 46,870,230 ordinary shares of Corus Group plc. The ISIN code for these securities is XS0140136523. -- 4.625% convertible subordinated bonds due 2007 amounting to NLG345,000,000 convertible into 19,338,687 ordinary shares of Corus Group plc. The ISIN code for these securities is NL0000183184. Each American Depositary Share represents two ordinary shares of the company. About Corus Group Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. The group suffered six years ago from the crisis in British manufacturing, which prompted it to shake up management, close plants, cut jobs, and sell assets to lower debt. Its debt was thought to stand at GBP1.6 billion in 2002. After posting a net loss of GBP458 million in 2003, it embarked on a restructuring program, signed a new EUR1.2 billion banking facility, and issued GBP307 million worth of shares. It returned to operating profit in the first quarter of 2004. The recent recovery of steel prices and the strength of the euro are expected to help it achieve relatively strong earnings. * * * Moody's Investors Service placed all ratings of Corus Group plc under review with direction uncertain following the recommendation of the board of Corus Group in favor of the proposed acquisition of the entire capital of Corus Group by Tata Steel Limited. If the bondholders exercised the put option or the bonds were tendered for above par as part of a refinancing, Moody's is likely to withdraw the ratings for the bonds. Similarly, a refinancing of the rated bank loans would also result in a likely withdrawal of the ratings for the credit facilities. At that juncture, Moody's remaining rating at Corus Group will be the corporate family rating. Ratings affected: Corus Group plc * Ba2 Corporate Family Rating; * Ba1 Rating on EUR800 million Secured Bank Facilities maturing July 2008; * B1 Rating on EUR800 million Unsecured Notes due 2011; and * B1 Rating on GBP200 million in Unsecured Notes due 2008. Moody's last rating action on Corus was the upgrade to Ba2/Ba1/B1 on May 8. Fitch Ratings changed the Rating Watch on Corus Group PLC's Issuer Default and senior unsecured BB- and Short-term B ratings to Negative from Positive. This follows the recommendation by the CS Board of an offer from India-based Tata Steel Ltd. valued at GBP4.3 billion. The RWN also applies to these debt instruments issued by CS: -- CS EUR800 million 7.5% senior notes; -- CS EUR307 million 3% convertible bonds; and -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds. Fitch will resolve the Rating Watch following publication of CS's 2006 results, further details on the level of synergies and operational benefits that could accrue under the transaction, and the closure of the deal. Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on U.K.-based steel consortium Corus Group PLC on CreditWatch with positive implications following the announcement by Corus concerning a possible recommended offer for the company from Tata Steel Ltd., India's second largest integrated steel company. At the same time, Standard & Poor's placed its 'BB+' senior secured bank loan ratings on Corus and its 'BB-' senior unsecured debt ratings on Corus and related entity Corus Finance PLC on CreditWatch with positive implications. The 'B' short- term corporate credit rating on Corus was also placed on CreditWatch with positive implications. EASTMAN KODAK: Posts US$37 Million Third Quarter GAAP Net Loss -------------------------------------------------------------- Eastman Kodak Company reported a GAAP earnings improvement of US$877 million for the third quarter of 2006, on sales of US$3.204 billion, largely as the result of the recording of a tax valuation charge in the year-ago quarter of US$778 million. The company also delivered a US$98 million increase in digital earnings, driven by wider gross profit margins, from strong earnings performance in the Graphic Communications and Consumer Digital businesses, and the result of the company's global cost- reduction initiatives. Based on its third-quarter 2006 performance, the company is confident of achieving its 2006 cash and digital earnings goals, and expects digital revenue growth somewhat below its 10% target, as a result of the company's focus on margin expansion. This corresponds to a total revenue decline of approximately 6%. "Our business transformation is on track," said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. "I am encouraged by our third-quarter results, especially because they reinforce our confidence in our full- year performance, which is the basis on which I manage the company." "We measure our progress against three important metrics - cash generation, digital earnings, and digital revenue. Our year- over-year digital revenues were down slightly during the quarter, reflecting our strong focus on margin expansion and willingness to pursue more profitable sales, the universe of which expands as our cost structure improves. Our digital earnings were vastly improved this quarter and our cash balance continues to exceed US$1 billion. While I am fully aware of the challenges to largely complete our restructuring by the end of next year, this performance represents clear progress toward our goals and gives us good momentum to carry into the fourth quarter and 2007." For the third quarter of 2006: * Sales totaled US$3.204 billion, a decrease of 10% from US$3.553 billion in the third quarter of 2005, largely attributable to a 19% decline in traditional sales. Third-quarter traditional revenue totaled US$1.402 billion, compared to US$1.725 billion in the year-ago quarter, while digital revenue totaled US$1.793 billion, as compared to US$1.814 billion in the year-ago quarter. * The company's earnings from continuing operations in the quarter, before interest, other income (charges), net, and income taxes, were US$2 million, compared with a loss from operations of US$123 million in the year-ago quarter. * On the basis of generally accepted accounting principles in the U.S. (GAAP), the company reported a third-quarter net loss of US$37 million, which includes after-tax restructuring costs of US$202 million. By comparison, the third quarter 2005 GAAP net loss was US$914 million. The difference is largely driven by the inclusion in last year's third quarter of a US$778 million, non-cash charge to record a valuation allowance against the net deferred tax assets in the U.S. * Digital earnings were US$105 million, compared with US$7 million in the year-ago quarter, marking the first time that the company's quarterly digital earnings growth exceeded the quarterly decline in traditional earnings. This performance was primarily due to operational improvements throughout the digital portfolio, the impact of a non-recurring licensing arrangement within the Consumer Digital Group, and strong results in the Graphic Communications Group. Other third-quarter 2006 details: * For the quarter, net cash provided by operating activities on a GAAP basis was US$329million, compared with US$370 million in the year-ago quarter. Investable cash flow for the quarter was US$237 million, compared with US$216 million in the year-ago quarter. * Kodak held US$1.102 billion in cash on its balance sheet as of Sept. 30, 2006, compared with US$610 million on Sept. 30, 2005. This is consistent with the company's stated desire to maintain approximately US$1.0 billion of cash on hand. * Debt decreased US$192 million from the second-quarter level, to US$3.339 billion as of Sept. 30, 2006, and was down US$244 million from the Dec. 31, 2005 level of US$3.583 billion. The company intends to reduce debt by approximately US$800 million in 2006. * Gross Profit was 27.3% in the current quarter, up from 25.9% in the prior year quarter, primarily because of reductions in manufacturing costs and the favorable impact of the previously noted licensing arrangement, offset by volume declines in traditional product sales. * Selling, General and Administrative expenses declined by US$105 million in the third quarter, to US$565 million, compared with US$670 million for the prior-year quarter. As a percentage of sales, SG&A decreased from 18.9% in the prior-year quarter to 17.6% in the third quarter of 2006. 2006 Goals Kodak continues to expect net cash provided by operating activities this year of US$800 million to US$1.0 billion, which corresponds with investable cash flow of US$400 million to US$600 million. Accordingly, the company expects a GAAP loss from continuing operations before interest, other income (charges), net, and income taxes for the full year of US$400 million to US$600 million, which includes approximately US$1.0 billion in pre-tax restructuring charges. This corresponds to digital earnings from operations this year in a range of US$350 million to US$450 million. The company forecasts 2006 digital revenue growth somewhat below 10%, reflecting the company's focus on targeted participation in the consumer digital market. Total 2006 revenue is expected to be down approximately 6%. About Eastman Kodak Co. Headquartered in Rochester, New York, Eastman Kodak Co. -- http://www.kodak.com/-- engages in the development, manufacturing, and marketing of digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. * * * As reported in the TCR-Europe on Aug. 11, Moody's Investors Service placed Eastman Kodak Company on review for possible downgrade. Ratings under review include the Company's B1 Corporate Family Rating; B2 Senior Unsecured Rating; and Ba3 rating on the Senior Secured Credit Facilities. Moody's review continues to focus on the company's potential sale of the Kodak Health Group as well as the fundamental operating performance of the company. As reported in the Troubled Company Reporter on Aug. 7, 2006, Standard & Poor's Ratings Services placed its ratings on Eastman Kodak Co. (B+/Watch Neg/--) on CreditWatch with negative implications. The Rochester, New York-based imaging company had US$3.5 billion in debt as of June 30, 2006. EGRET CAPITAL: S&P Rates EUR12.25-Mln Class E Notes at BB- ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR378.9 million floating-rate notes to be issued by Egret Funding CLO I PLC. At the same time, Egret Funding CLO I will issue EUR43 million of unrated notes. At closing, Egret Funding CLO I will invest the issuance proceeds in a portfolio of predominantly senior-secured, second-lien, and mezzanine leveraged loans. The transaction has a six-year reinvestment period and the collateral manager will be Egret Capital LLP. This is Egret Capital's, a wholly owned subsidiary of Societe Generale, first European cash flow CLO to be rated by Standard & Poor's. The collateral that will secure the rated notes consists of a minimum of 80% senior secured loans and eligible investments, and a maximum 20% of second-liens, mezzanine loans, and high-yield investments. It is intended that the collateral pool will comprise primarily European leveraged loans. The portfolio must also comply with a set of portfolio profile tests. The ratings reflect commensurate credit enhancement in the form of overcollateralization and subordination, and a diversified collateral pool of loans. Ratings List Egret Funding CLO I PLC EUR421.9 Million Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ A AAA 288.75 B AA 30.20 C A 24.60 D BBB- 23.10 E BB- 12.25 M NR 43.00 NR-Not rated. EXYCO LIMITED: Taps Peter Sargent to Liquidate Assets ----------------------------------------------------- Peter Sargent of Begbies Traynor was appointed Liquidator of Exyco Limited on Oct. 23 for the creditors' voluntary winding-up procedure. Headquartered in Halifax, England, Exyco Limited -- http://www.exyco.co.uk/-- provides exhibition services that include design, manufacture, installation, organizer liaison, planning and regulation approval, health and safety requirements, site services and logistics. G.B.M. PARTS: Joint Liquidators Take Over Operations ---------------------------------------------------- Bernard Hoffman and Ian Douglas Yerrill Gerald Edelman Business Recovery were appointed Joint Liquidators of G.B.M. Parts Limited on Oct. 20 for the creditors' voluntary winding-up proceeding. Headquartered in King's Lynn, England, G.B.M. Parts Limited sells motor vehicle parts. GB FRICTIONS: Creditors Confirm Voluntary Liquidation ----------------------------------------------------- Creditors of GB Frictions Limited confirmed on Oct. 18 the resolutions for voluntary liquidation and the appointment of John Russell and Andrew Philip Wood of The P&A Partnership as Joint Liquidators. The company can be reached at: GB Frictions Limited Unit 6 16 Jubilee Way Shipley West Yorkshire BD18 1QG United Kingdom Tel: 01274 580580 GENERAL MOTORS: Receiving 10,000 Tons of Steel from Usinas ---------------------------------------------------------- General Motors' unit in Rio Grande do Sul, Brazil, will be receiving a total of 10,000 tons of steel a month from Usinas Siderurgicas de Minas Gerais SA, the latter told Business News Americas. Usinas Siderurgicas posted on its Web site that it will expand by 38% flat steel shipments to General Motors. About Usinas Siderurgicas Headquartered in Minas Gerais, Brazil, Usiminas is among the world's 20 largest steel manufacturing complexes, with a production capacity of approximately 10 million tons of steel. Usiminas System companies produces galvanized and non-coated flat steel products for the automotive, small and large diameter pipe, civil construction, hydro-electronic, rerolling, agriculture, and road machinery industries. Brazil consumes 80% of its products and the company's largest export markets are the US and Latin America. About General Motors General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. * * * As reported in the TCR-Europe on Oct. 11, Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3' short- term corporate credit ratings on General Motors Corp. would remain on CreditWatch with negative implications, where they were placed March 29, 2006. As reported in the Troubled Company Reporter on July 27, 2006, Dominion Bond Rating Service downgraded the long-term debt ratings of General Motors Corporation and General Motors of Canada Limited to B. The commercial paper ratings of both companies are also downgraded to R-3 (low) from R-3. As reported in the Troubled Company Reporter on June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new US$4.48 billion senior secured bank facility. The 'RR1' is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. In a TCR-Europe report on June 22, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corporation, affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. INCO LTD: CVRD Brings In New Board Following Purchase Completion ---------------------------------------------------------------- Following the acquisition by CVRD Canada Inc. of 174,624,019 of Inco Limited's common shares, representing approximately 75.66% of Inco's issued and outstanding common shares, each of the members of Inco's Board of Directors has resigned, with the exception of Scott Hand. CVRD Canada is a wholly owned indirect subsidiary of Companhia Vale do Rio Doce. The vacancies left by the departure of the incumbent directors have been filled with CVRD nominees: -- Roger Agnelli (Chief Executive Officer, CVRD), -- Jose Auto Lancaster Oliveira (Executive Director, Non- Ferrous Minerals, CVRD), -- Murilo Pinto de Oliveira Ferreira (Executive Director, Equity Holdings and Business Development, CVRD), -- Fabio de Oliveira Barbosa (Chief Financial Officer, CVRD), -- Gabriel Stoliar (Executive Director, Planning, CVRD), and -- independent directors Michael Phelps, Mel Leiderman, Stephen Wallenstein and Stanley Greig. Roger Agnelli will serve as chair of the Board of Directors. CVRD Canada has asked incumbent Inco Chief Executive Officer, Scott Hand, to remain with Inco to help oversee operations during the transition period. Inco also reported that it intends to withdraw its common shares from listing on the New York Stock Exchange and from registration under Section 12(b) of the U.S. Securities Exchange Act of 1934, as amended. Inco expects that the delisting will become effective in 20 days and that the deregistration will become effective in 100 days. The Company has not arranged for listing on any other U.S. national securities exchange or for quotation of the common shares in any quotation medium. Inco also intends to delist its common shares from the Toronto Stock Exchange as soon as it is in a position to do so. CVRD Canada has previously disclosed that it intends to acquire 100% of the Inco common shares by way of either a "compulsory acquisition" or a "subsequent acquisition transaction" and to cause Inco to effect deregistration and to cease reporting under the Exchange Act once the number of Inco security holders is sufficiently reduced. In light of these facts, Inco's Board of Directors authorized the withdrawal of Inco common shares from listing on the NYSE and from registration under Section 12(b) of the Exchange Act. Effective immediately, Inco will satisfy its reporting obligations under the Exchange Act by filing reports with the SEC on the forms available for use by foreign private issuers, instead of those used by U.S. domestic reporting companies, which it has historically used on a voluntary basis. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. INFONXX INC: Moody's Junks US$125-Mln Sec. Second Lien Term Loan ---------------------------------------------------------------- Moody's Investors Service assigned a B2 corporate family rating to InfoNXX, Inc. InfoNXX is undertaking a recapitalization to repay existing debt of US$215.1 million, pay a dividend to shareholders of US$300 million, and pay fees and expenses. The transaction is being financed with proposed credit facilities that include a US$200 million senior secured first lien revolver (of which approximately US$120 million will be drawn at close), a US$275 million senior secured first lien term loan, and a US$125 million senior secured second lien term loan. Moody's assigned these first-time ratings to the proposed capital structure: -- US$200 million senior secured first lien revolver maturing 12/31/2010, B1 (LGD3, 35%) -- US$275 million senior secured first lien term loan B due 2012, B1 (LGD3, 35%) -- US$125 million senior secured second lien term loan due 2013, Caa1 (LGD5, 85%) -- Corporate family rating, B2 -- Probability of default rating, B2 The ratings outlook is stable. The ratings reflect significant leverage subsequent to the proposed recapitalization. Pro forma for the recapitalization and after application of Moody's standard adjustments, total debt to adjusted EBITDA at Sept. 30, 2006 was approximately 4.8 times, adjusted free cash flow to debt was about 7%, and adjusted EBIT coverage of interest expense was about 1.7 times. EBITDA has been adjusted to reflect the expected pro forma effects of the company's recent France and Italy launches, two acquisitions, and the addition of a large customer account in the U.S. The key factors limiting InfoNXX's credit ratings are the significant amount of adjustments made to pro forma EBITDA and the company's lack of a track record operating at its current size and leverage. Moody's views InfoNXX's business profile as entailing certain risks. Rapid growth in the past two years, including two acquisitions in 2006, raises uncertainty and integration risk. Other risks include: -- significant customer concentration in the U.S., -- technology risk regarding potential automated directory assistance, -- the possibility of wireless customers bringing their directory assistance services in-house, and -- competitive pricing practices in Europe. Strengths in InfoNXX's business profile include: -- its substantial market share and brand recognition in the U.K., France, and Ireland; -- long-term relationships and contracts with its largest corporate customers; and -- moderately high switching costs. The B1 rating on the senior secured first lien credit facility reflects the facility's priority position in the capital structure and a Loss Given Default assessment of LGD3. Domestic borrowings under the first lien credit facility benefit from a first priority perfected lien on all tangible and intangible assets of the domestic borrower, InfoNXX, Inc., and the capital stock of its subsidiaries. Foreign borrowings under the first lien credit facility benefit from a first priority perfected lien on all tangible and intangible assets of the foreign borrowers, Carbone S.A.R.L., The Number UK Limited, and InfoNXX Lux. The rating on the first lien facility benefits from the loss absorption provided by the second lien term loan. Domestic borrowings are guaranteed by each existing and future domestic subsidiary of the domestic borrower, and foreign borrowings are guaranteed by the domestic borrower, the domestic guarantors, certain foreign subsidiaries, and each existing and future foreign subsidiary of the domestic borrower. A debt allocation mechanism exists under which lenders of the first lien facilities would share losses in the event of a default. The security and guarantees are subject to customary exceptions and limitations. The Caa1 and LGD5 ratings assigned to the US$125 million senior secured second lien term loan reflect its subordination to the sizable amount of first lien debt. The second lien has the same borrowers and guarantees as the first lien facility, has a second priority claim on the same collateral, and also contains a loss-sharing mechanism. The stable ratings outlook reflects Moody's expectation that InfoNXX will successfully integrate its recent acquisitions and maintain solid EBITDA, free cash flow and operating margins. The outlook or ratings could be lowered if InfoNXX loses a significant customer, experiences integration inefficiencies, or encounters other operational difficulties that result in a sustained shortfall in EBITDA below current expectations causing adjusted debt to EBITDA to rise above 5.8 times and adjusted EBIT to interest expense to fall below 1.5 times. A track record of sustained operating performance that results in adjusted debt to EBITDA of less than 4.6 times and EBIT interest coverage above 1.9 times would likely result in a positive change in the outlook or ratings. InfoNXX, Inc. is the leading non-carrier provider of directory assistance services in the U.S. and Europe. In the U.S., which comprised approximately one-third of third quarter 2006 revenue, wireless carriers outsource directory assistance calls to InfoNXX under long-term customer agreements. In Europe, the directory assistance market is deregulated and InfoNXX markets its brand and telephone numbers directly to the end user. Revenue for the twelve months ended Sept. 30, 2006 was approximately US$429 million. INTERNATIONAL EXTENSION: Appoints Stephen M. Rout as Liquidator --------------------------------------------------------------- Stephen M. Rout of Stephen M. Rout & Company was appointed Liquidator of International Extension College on Oct. 20 for the creditors' voluntary winding-up proceeding. Headquartered in Cambridge, England, International Extension College -- http://www.iec.ac.uk/-- is a not-for-profit organization established in 1971 to help set up and sustain educational initiatives in developing countries. IEC is committed to increasing equitable access to quality education for disadvantaged and marginalized people, through partnership, collaboration and research. It specializes in the area of open and distance learning. MANSARD MORTGAGES: Moody's Rates GBP20-Mln Class B2 Notes at Ba2 ---------------------------------------------------------------- Moody's Investors Service assigned definitive long-term credit ratings to these classes of Notes issued by Mansard Mortgages 2006-1PLC: -- GBP157,500,000 Class A1 Mortgage Backed Floating Rate Notes due 2048: Aaa; -- GBP217,500,000 Class A2 Mortgage Backed Floating Rate Notes due 2048: Aaa; -- GBP65,000,000 Class M1 Mortgage Backed Floating Rate Notes due 2048: Aa2; -- GBP27,500,000 Class M2 Mortgage Backed Floating Rate Notes due 2048: A2; -- GBP12,500,000 Class B1 Mortgage Backed Floating Rate Notes due 2048: Baa2; and -- GBP20,000,000 Class B2 Mortgage Backed Floating Rate Notes due 2048: Ba2. This transaction represents the third securitization of mortgage loans originated by Rooftop Mortgages Limited and the first under the Mansard Mortgages program. The assets supporting the Notes are near prime and non-conforming mortgage loans secured on residential properties in England, Wales and Scotland. The total debt raised by Mansard Mortgages 2006-1 plc will be used to purchase a portfolio of mortgage loans and will be split as follows: 75.00% Class A Notes, 13.00% Class B Notes, 5.50%, Class C Notes, 2.50% Class D1 Notes and 4.00% Class E1c Notes. The reserve fund will be 0.75% of the initial transaction amount at closing with a target of 0.80% of the initial transaction amount. The ratings of the Notes are based upon the analysis of the characteristics of the mortgage pool backing the Notes, the protection the Notes receive from credit enhancement against defaults and arrears in the mortgage pool, and the legal and structural integrity of the issue. The ratings address the expected loss posed to investors by the legal final maturity. The structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed but may have a significant effect on the yield to investors. Rooftop Mortgages Limited, with delegation to Crown Mortgage Management Limited is the day-to-day servicer for the mortgage loans. Vertex Mortgage Services Limited will be the Standby Servicer for the pool, if the appointment of CMM as servicer is terminated. MOSAIC CO: Tender Offers Unlikely to Affect Rating, Moody's Says ---------------------------------------------------------------- Moody's Investors Service comments that the Mosaic Co.'s announcement that it has commenced tender offers to purchase a material portion of the senior notes issued by its subsidiaries Mosaic Global Holdings, Inc. and Phosphate Acquisition Partners LP is not expected to result in a change in Mosaic's Ba3 Corporate Family Rating. It is anticipated that the tender offers and consent solicitations will be financed from the proceeds of a combination of new loans under The Mosaic Company's amended and restated credit facilities and the proceeds from offerings of new senior notes. As part of these financing transactions, The Mosaic Company is expected to refinance outstanding borrowings under its existing term loan B facility. The proposed refinancing is viewed as a credit positive given a lowered interest burden and the extension of debt maturities. However, in the event that the combined refinancing includes a substantial increase in the amount of secured debt relative to Mosaic's current mix of secured and unsecured debt the current ratings and LGD assessments of Mosaics secured debt and other debt instruments may be negatively impacted by as much as a notch. Moody's will monitor the proposed refinancing effort and rate the new securities as appropriate. NCO GROUP: Moody's Junks Proposed US$200-Mln Sr. Sub. Notes ----------------------------------------------------------- Moody's Investors Service assigned a B3 rating to NCO Group, Inc.'s proposed US$165 million senior unsecured notes and a Caa1 rating to its proposed US$200 million of senior subordinated notes, which are intended to replace a proposed US$365 million senior subordinated notes offering that was cancelled. Concurrently, Moody's withdrew the Caa1 rating assigned to the discussed US$365 million of senior subordinated notes. Pro- forma for the aforementioned capital mix changes, Moody's affirmed the B2 corporate family rating and the Ba3 rating on the US$565 million senior secured credit facility. The rating outlook is stable. On July 21, NCO entered into a definitive agreement to be acquired by an entity controlled by One Equity Partners, with participation by certain members of senior management. The transaction is expected to close in the fourth quarter of 2006 and is subject to customary closing conditions including the approval of NCO's shareholders. Upon closing of this transaction, NCO's stock will no longer be publicly traded. The transaction is expected to be funded with a US$465 million term loan, US$200 million of senior subordinated notes, US$165 million of senior unsecured floating rate notes, US$365 million of cash equity contributed by OEP and US$23 million of rollover equity. The ratings benefit from solid pro forma credit metrics for the rating category, high levels of EBIT, leading market positions in receivables management and portfolio management business lines and a good track record of profitability and cash flow generation. The ratings are constrained by the potential for profitability erosion due to increasing competition in portfolio management business, sensitivity of receivable collection trends to a weakening economy and moderate revenue concentration. The Ba3 rating on the senior secured credit facility reflects an LGD2 loss given default assessment as this facility is secured by a pledge of the assets of the guarantor subsidiaries (which comprise about 60% of consolidated EBITDA for the June 30, 2006 LTM period) and 65% of the stock of foreign subsidiaries. The LGD 2 assessment benefits from a significant amount of junior debt in the capital structure (40% of debt capitalization assuming 75% of the committed revolver is drawn). The B3 rating on the senior unsecured notes reflects an LGD4 loss given default assessment given that it is effectively subordinated to the secured credit facility but benefits from US$200 million of junior ranking subordinated notes. The Caa1 rating on the senior subordinated notes reflects an LGD6 loss given default assessment given that it is effectively subordinated to the secured credit facility and the senior unsecured notes. The SGL-2 rating reflects a good liquidity position pro forma for the recapitalization transaction. Moody's took these rating actions: -- assigned US$165 million senior unsecured floating rate notes at B3 (LGD4, 63%); -- assigned US$200 million senior subordinated notes at Caa1 (LGD6, 90%); -- withdrew US$365 million senior subordinated notes, rated Caa1 (LGD5, 82%); -- affirmed US$465 million 7 year senior secured term loan at Ba3 (to LGD2, 29% from LGD2, 26%); -- affirmed US$100 million 5 year senior secured revolver at Ba3 (to LGD2, 29% from LGD2, 26%); -- affirmed corporate family rating at B2; -- affirmed probability-of-default rating at B2; and -- affirmed speculative grade liquidity rating at SGL-2. The stable outlook anticipates moderate revenue and EBIT growth over the next 12-18 months. Cash flow from operations is expected to be used to fund capital expenditures of about US$30-US$40 million per year, niche acquisitions which complement existing business segments, and required term loan amortization. The ratings could be upgraded if financial performance improves such that EBIT coverage of interest and free cash flow to total debt can be sustained at over 1.7 times and 7%, respectively. Given the company's solid position in the rating category, a moderate increase in pricing trends in the portfolio management segment or decline in accounts receivable collection rates will be unlikely to pressure the ratings. However, a sharp downturn in the business which results in EBIT coverage of interest and free cash flow to debt that are expected to sustained at under 1 time and 0%, respectively, could lead to a downgrade. A significant debt financed acquisition that substantially weakens credit metrics and liquidity could also pressure the rating. Based in Horsham, Pennsylvania, NCO is a global provider of business process outsourcing services, primarily focused on accounts receivable management and customer relationship management. The company also purchases and manages past due consumer accounts receivable (PM or portfolio management business) from consumer creditors such as banks, finance companies, retail merchants, utilities, healthcare companies, and other consumer-oriented companies. The company reported revenues of about US$1.1 billion for the twelve-month period ending June 30, 2006. NOWFIRST LTD: Claims Filing Period Ends Nov. 29 ----------------------------------------------- Creditors of Nowfirst Ltd. have until Nov. 29 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 Adelle Firestone at: Firestones Ground Floor Taunton House Waterside Court Medway City Estate Rochester Kent ME2 4NZ United Kingdom Headquartered in Maidstone, England, Nowfirst Ltd. fabricates architectural iron and metalwork. NWSG LTD.: Appoints Bridgestones as Joint Administrators -------------------------------------------------------- Jonathan Guy Lord and Robert Lochmohr Cooksey of Bridgestones were appointed joint administrators of NWSG Ltd. (Company Number 5393528) on Oct. 13. The administrators can be reached at: Jonathan Guy Lord and Robert Lochmohr Cooksey Bridgestones 125-127 Union Street Oldham Lancashire OL1 1TE United Kingdom Tel: 0161 785 3700 Fax: 0161 785 3701 E-mail: rlc@bridgestones.co.uk NWSG Ltd. can be reached at: Gilbert Wakefield House 67 Bewsey Street Warrington Cheshire WA2 7JQ United Kingdom Tel: 01925 419 102 Fax: 01925 415 508 PICKERING FINANCIAL: Hires Martin Henry Linton as Administrator --------------------------------------------------------------- Martin Henry Linton of Leigh & Co. was appointed administrator of Pickering Financial Services Ltd. (Company Number 5205217) 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 Headquartered in Manchester, England, Pickering Financial Services Ltd. is engaged in accounting, auditing and tax consultancy. PLANET MICRO: Names David Alexander Hole Liquidator --------------------------------------------------- David Alexander Hole was appointed Liquidator of Planet Micro Limited on Oct. 23 for the creditors' voluntary winding-up proceeding. Headquartered in Manchester, England, Planet Micro Limited retails hardware and software, computer systems and components. SEA CONTAINERS: Wants Court Nod on Uniform Compensation Protocol ---------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to establish uniform procedures for: (i) the allowance of interim compensation and reimbursement of expenses of professionals retained by court order; and (ii) the reimbursement of expenses incurred by the members of the Official Committee of Unsecured Creditors. The Debtors have filed or intend to file applications to employ: (a) Sidley Austin LLP as general reorganization and bankruptcy counsel, (b) Young Conaway Stargatt & Taylor, LLP, as Delaware counsel, (c) PricewaterhouseCoopers LLP as financial advisor, (d) Kirkland & Ellis LLP as special conflicts litigation counsel, (e) Carter Ledyard & Milburn LLP as special counsel for U.S. corporate matters, and (f) Richards Butler LLP as special counsel for foreign legal matters. The Debtors expect to hire other estate professionals in their Chapter 11 cases. The Creditors' Committee will likely seek to retain its own professionals as well. The Debtors want to streamline the professional compensation process and enable the Court and all parties-in-interest to more effectively monitor the fees incurred by the Professionals. The procedures will also reduce the financial burdens imposed on the Professionals while awaiting final approval of their fees and expenses. Specifically, the Debtors propose that: (1) No earlier than the 25th day of each month following the month for which compensation is sought, each Professional seeking interim allowance of its fees and expenses may file an application and serve a copy of that application to: (a) the Office of the United States Trustee for the District of Delaware J. Caleb Boggs Federal Building, Rome 2207 844 N. King Street Wilmington, DE 19801 Attn: David Buchbinder, Esq. (b) the Debtors Sea Containers, Ltd. c/o Sea Containers Services Ltd. 20 Upper Ground London SE1 9PF, United Kingdom Attn: Edwin S. Hetherington, Esq. (c) counsel to the Debtors Sidley Austin LLP One South Dearborn Chicago, IL 60603 Attn: Larry J. Nyhan, Esq., and Brian J. Lohan, Esq. -- and -- Young Conaway Stargatt & Taylor, LLP The Brandywine Building 1000 West Street Wilmington, DE 19801 Attn: Robert S. Brady, Esq. (d) counsel to the official committee (2) Each Notice Party will have 20 days to object to a Monthly Fee Application. If there are no objections, the Debtors will be allowed to pay 80% of the Professional's fees and 100% of the expenses requested. If objections are filed, the Debtors will be allowed to pay 80% of the undisputed fees and 100% of the undisputed expenses. The first Monthly Fee Application will cover the period from the Petition Date through and including October 31, 2006. (3) The parties are encouraged to resolve timely objections filed. If unsuccessful, the parties may seek a Court ruling on the Objection. The Professionals may seek payment of the difference, if any, between the Maximum Interim Payment and the Actual Interim Payment made, or forego payment of the Incremental Amount until the next quarter fee application request hearing or final fee application hearing, at which time the Court will consider and rule on the Objection, if requested by the parties. (4) Beginning with the approximate three-month period from the Petition Date and ending on December 31, 2006, and at the end of each three-month period thereafter, each Professional must file with the Court and serve on the Notice Parties a notice requesting interim Court approval and allowance of compensation for services rendered and reimbursement of expenses sought in the Monthly Fee Applications filed during that period. Each Quarterly Fee Application Request will be filed and served by no later than 45 days after the end of the applicable Interim Fee Period. The first Interim Fee Application Deadline will be February 14, 2007. (5) The Debtors will ask the Court to schedule a hearing on Quarterly Fee Application Requests at least once every six months or at other intervals as the Court deems appropriate. (6) The pendency of an Objection will not disqualify a Professional from future payment. (7) All fees and expenses paid to Professionals in accordance with the Compensation Procedures are subject to disgorgement until final allowance by the Court. The Debtors further ask the Court to allow each Committee Member to submit statements of expenses and supporting vouchers to counsel to the applicable Committee, who will collect and submit those requests for reimbursement in accordance with the Compensation Procedures as if that Committee Member were a Professional. 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: Moves to Employ Ordinary Course Professionals ------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates regularly utilize the services of various attorneys, accountants, financial advisors, and other professionals in the ordinary course of their business operations. The OCPs provide services to the Debtors in a variety of discrete matters unrelated to the Debtors' Chapter 11 cases, including, but not limited to, general litigation, employment and labor law, intellectual property law, general corporate and securities law, accounting, auditing, financial advisory, and tax matters. Other OCPs have been, or may be, utilized by the Debtors from time to time. A list of the Debtors' OCPs is available for free at: http://bankrupt.com/misc/seacon_ocplist.pdf The Debtors seek the Court's permission to continue to utilize the services of the OCPs postpetition without the necessity of filing formal applications for the employment and compensation of each OCP pursuant to Sections 327, 328, 329, 330, and 331 of the Bankruptcy Code. Due to the number and geographic diversity of the OCPs that they utilized, the Debtors note that it would be costly and administratively burdensome to both the Debtors and the Court to ask each OCP to apply separately for approval of its employment and compensation. The Debtors want to employ the OCPs on terms substantially similar to those in effect before the Petition Date, but subject to certain terms and conditions. The Debtors represent that: (a) they wish to employ the OCPs as necessary for the day-to- day operations of the Debtors' businesses; (b) the fees and expenses incurred by the OCPs will be kept to a minimum; and (c) the OCPs will not perform substantial services relating to bankruptcy matters without Court permission. The Debtors propose to implement uniform procedures for the retention and compensation of OCPs: (1) After an OCP submits an affidavit and a monthly invoice, the OCP will be allowed to offset the invoiced amount against any unapplied prepetition retainer, and if there are unsatisfied postpetition fees and expenses related to that invoice, the Debtors will be allowed to pay 100% of the postpetition fees and expenses incurred; provided that the fees do not exceed: * GBP40,000 per month on average over the previous rolling three-month period to the extent that the OCP has historically been paid in pounds sterling, or * US$40,000 per month on average over the previous rolling three-month period to the extent that the OCP has historically been paid in U.S. dollars. (2) If the fees incurred and invoiced exceed the monthly cap, the OCP must seek Court approval of the fees; provided that the OCP will be entitled to a net interim offset and payment of up to US$40,000 or GBP40,000. (3) Each OCP will file with the Court and serve on the Office of the United States Trustee, counsel to the Debtors, and counsel to the Official Committee, an Affidavit within 30 days of commencing postpetition services to the Debtors. The OCP Affidavit will include information like services to be rendered, the hourly rates to be charged by the OCP, and a disclosure of its disinterestedness. (4) The Notice Parties have 10 days to object to the OCP Affidavit. Objections not resolved will be brought before the Court. (5) Beginning with the fiscal quarter ending December 31, 2006, within 15 days following the end of each fiscal quarter in which the Debtors' Chapter 11 cases are pending, the Debtors will file with the Court and serve on the Notice Parties a statement containing: -- the name of the OCP, -- the total amounts paid during the previous quarter, and -- a general description of the services rendered. (6) The Debtors reserve the right to supplement the OCP List. The Debtors note that while some of the OCPs may wish to continue to represent them on an ongoing basis, others may be unwilling to do so if they are forced to apply for payment of fees and expenses through the formal application process. If the knowledge and expertise of any OCP with respect to the particular areas and matters for which it was responsible before the Petition Date are lost, the Debtors say they will undoubtedly incur additional and unnecessary expenses as other professionals without that background and expertise will have to be retained to assist the Debtors with their business operations. The Debtors believe the OCP Procedures will allow them to avoid any disruption in the professional services required in the day- to-day operation of their businesses. As the OCPs will provide professional services in connection with the Debtors' ongoing business operations, the Debtors do not believe the OCPs are "professionals," as that term is used in Section 327 of the Bankruptcy Code, whose retention must be approved by the Court. Nevertheless, the Debtors seek the Court's approval to avoid any subsequent controversy regarding their employment and compensation of the OCPs during the pendency of their Chapter 11 cases. SECAL GROUP: Brings In BDO Stoy to Administer Assets ---------------------------------------------------- C. K. Rayment and M. Dunham of BDO Stoy Hayward LLP were appointed joint administrators of Secal Group Ltd. (Company Number 02896412) on Oct. 13. Headquartered in Manchester, England, BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. Secal Group Ltd. can be reached at: Halesfield 19 Telford Shropshire TF7 4QT United Kingdom Tel: 01952 686 550 Fax: 01952 684 088 SHERRIFF SECURITY: Creditors Confirm Liquidator's Appointment ------------------------------------------------------------- Creditors of Sherriff Security (Southern) Limited confirmed Oct. 16 the appointment of Mark Stephen Goldstein as Liquidator. The company can be reached at: Sherriff Security (Southern) Limited 56 Spital Street Dartford Kent DA1 2DT United Kingdom Tel: 01634 226586 SKYEPHARMA PLC: UBS AG No Longer Holds Notifiable Interest ---------------------------------------------------------- SkyePharma PLC, in a regulatory filing with the U.S. Securities and Exchange Commission on Oct. 27, disclosed that UBS AG and its subsidiaries, as a result of a reclassification of their shareholding on becoming a market maker in the Ordinary Shares of the Company, no longer hold a notifiable interest in the Company's Ordinary Shares. About SkyePharma PLC Headquartered in London, England, SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world-leading drug delivery technologies that provide easier-to-use and more effective drug formulations. There are now twelve approved products incorporating SkyePharma's technologies in the areas of oral, injectable, inhaled and topical delivery, supported by advanced solubilisation capabilities. * * * Going Concern Doubt PricewaterhouseCoopers LLP in London, United Kingdom, disclosed that there is uncertainty as to when Skyepharma PLC's certain strategic initiatives may be concluded and their effect on the Company's working capital requirements. PwC said that this raises substantial doubt on the Company's ability to continue as a going concern. PwC disclosed this explanatory paragraph after auditing the Company's financial statement for the year ended Dec. 31, 2005. STEALTH PRECISION: Hires Liquidator from Campbell Crossley ---------------------------------------------------------- Richard Ian Williamson of Campbell Crossley and Davis was appointed Liquidator of Stealth Precision Components Limited on Oct. 18 for the creditors' voluntary winding-up procedure. The company can be reached at: Stealth Precision Components Limited Block H Billington Road Billington Road Industrial Estate Burnley Lancashire BB11 5UB Tel: 01282 413927 Fax: 01282 413953 SUPERIOR ENERGY: SESI LLC Begins Exchange for 6-7/8% Sr. Notes -------------------------------------------------------------- Superior Energy Services Inc. disclosed that SESI, L.L.C., its wholly owned subsidiary, has commenced an exchange offer for its outstanding 6-7/8% Senior Notes due 2014. These notes originally were issued in a May 22, 2006 private offering in an aggregate principal amount of US$300,000,000. Holders of these notes may exchange them for a like principal amount of a new issue of 6-7/8% Senior Notes due 2014 pursuant to an effective registration statement on Form S-4 filed with the Securities and Exchange Commission. Terms of the new notes are substantially identical to those of the original notes, except that the transfer restrictions and registration rights relating to the original notes do not apply to the new notes. Original notes that are not exchanged will continue to be subject to transfer restrictions. The new registered notes will not be subject to transfer restrictions. The exchange offer will expire at 5:00 p.m., New York City time, on Nov. 27, 2006, unless extended. Tenders of the original notes must be made before the exchange offer expires and may be withdrawn at any time before the exchange offer expires. Documents describing the terms of the exchange offer, including the prospectus and transmittal materials for making tenders, can be obtained from the exchange agent in connection with the exchange offer at: The Bank of New York Trust Co., N.A. The Bank of New York Corporate Trust Operations - Reorganization Unit 101 Barclay Street - 7 East New York, NY 10286 Fax: (212) 298-1915 About the Company Superior Energy Services, Inc., is headquartered in Harvey, Louisiana. The company has operations in the United States, Trinidad and Tobago, Australia, the United Kingdom, and Venezuela, among others. * * * As reported in the Troubled Company Reporter on Sept. 28, 2006, Moody's Investors Service affirmed Superior Energy Services Inc., LLC's ratings (Ba3 Corporate Family Rating and B1 rated US$300 million senior unsecured notes guaranteed by Superior Energy Services, Inc., and changed the rating outlook to negative from stable following Superior's announcement that it had signed a merger agreement to acquire Warrior Energy Services Corp. In May 2006, Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on Superior Energy Services Inc. and assigned its 'BB-' senior unsecured rating to the US$300 million senior unsecured notes issued by Superior Energy and guaranteed by Superior, due 2014. S&P said the outlook is stable. TAVISTOCK PRESS: Creditors' Claims Due Nov. 19 ---------------------------------------------- Creditors of Tavistock Press (Bedford) Ltd. have until Nov. 19 to send in their names and addresses, with particulars of their debts or claims, to appointed Joint Liquidator Graham Bushby at: Baker Tilly 5th Floor Exchange House 446 Midsummer Boulevard Milton Keynes MK9 2EA United Kingdom The company can reached at: Tavistock Press (Bedford) Ltd. Unit 1/2 Manton Lane Manton Industrial Estate Bedford Bedfordshire MK41 7PG United Kingdom Tel: 01234 346045 Fax: 01234 269078 U.K. TILAPIA: Appoints Joint Administrators from PwC ---------------------------------------------------- Stephen Mark Oldfield and Colin Michael Trevethyn Haig of PricewaterhouseCoopers LLP were appointed joint administrators of U.K. Tilapia Ltd. (Company Number 04693777) on Oct. 18. Headquartered in London, England, 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. U.K. Tilapia Ltd. can be reached at: Witcham Road Mepal Ely Cambridgeshire CB6 2AF United Kingdom Tel: 01353 775 200 VISTEON CORP: Weak Earnings Forecast Cues S&P to Cut Rating to B ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Visteon Corp. to 'B' from 'B+' and its short-term rating to 'B-3' from 'B-2'. These actions stem from the company's weaker-than-expected earnings and cash flow generation, caused by: -- vehicle production cuts, -- inefficiencies at several plant locations, -- sharply lower aftermarket product sales, -- continued pressure from high raw material costs, and -- several unusual items that will impact 2006 results. Visteon, a global manufacturer of automotive components, has total debt of about US$4 billion, including US$1.7 billion of underfunded employee benefit obligations. The rating outlook is negative. Visteon has lowered its earnings and cash flow expectations for 2006 to reflect its business challenges. Earnings, as measured by EBIT before restructuring costs, are expected to be US$40 million - US$50 million, down from previous expectations of US$170 million - US$200 million. Visteon now forecasts negative free cash flow at about US$100 million, down from earlier expectations of positive US$50 million of free cash flow. Lower vehicle production from the company's major customers account are a major factor, and had been expected by Standard & Poor's. But several other factors have combined to make the earnings and cash flow forecast significantly lower than our expectations. Included among these are: -- Labor disruptions in Europe that have resulted in production inefficiencies and premium freight costs; -- A 25% drop in aftermarket sales to Ford Motor Co., and a rise in aftermarket production costs as the company shifts manufacturing to Mexico; -- Higher-than-expected materials costs as commodity prices remain high, volumes are low, and certain sub-suppliers experience financial distress; and -- One-time financing and litigation costs. WAINFLEET MOTOR: Brings In Tenon Recovery to Administer Assets -------------------------------------------------------------- Dilip K. Dattani and Patrick B. Ellward of Tenon Recovery were appointed joint administrators of Wainfleet Motor Services Ltd. (Company Number 00371976) on Oct. 18. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Wainfleet Motor Services Ltd. can be reached at: Oaston Road Nuneaton Warwickshire CV11 6JX United Kingdom Fax: 024 7638 3160 WORLDWIDE HEALTHCARE: Creditors' Meeting Slated for November 7 -------------------------------------------------------------- Creditors of Worldwide Healthcare Staffing Services Limited (Company Number 04055663) will meet at 11:00 a.m. on Nov. 7 at: Leonard Curtis One Great Cumberland Place Marble Arch London W1H 7LW United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Nov. 6 at: N. A. Bennett Joint Administrator Leonard Curtis & Co One Great Cumberland Place Marble Arch London W1H 7LW United Kingdom Tel: 020 7535 7000 Fax: 020 7723 6059 E-mail: solutions@leonardcurtis.co.uk Leonard Curtis -- http://www.leonardcurtis.co.uk-- provides a national business turnaround and corporate recovery service through our principal offices in London, Birmingham and Manchester, utilizing the resources of over one hundred specialist recovery team members and eight directors. * European Auto Suppliers Face Sector Consolidation - Fitch ----------------------------------------------------------- Fitch Ratings reported that it expects Mergers & Acquisitions- and Leveraged Buy-Out-related event risk to rise in the European automotive supplier sector as trade buyers and private equity firms drive further consolidation in the industry. "While some sub-sectors such as electronic brake-systems are already fairly consolidated, the overall industry structure is still quite fragmented and will face further consolidation in view of ongoing industry globalization," Markus Leitner, Director in Fitch's European Industrials team disclosed. "The integration of smaller suppliers into larger groups will ensure the necessary funding for their R&D programs and the global expansion required by OEMs. This would in turn safeguard the innovation-led approach carried out by these suppliers to defend their market positions," he added. Fitch expects M&A activity to be particularly driven by suppliers keen to expand their geographical scope or acquire complementary high-quality assets to extend their technological footprint. Recent examples include Continental AG's (rated BBB+/F2/Stable) acquisition of the automotive electronics business of Motorola Inc. for US$1 billion, which followed the acquisition of Phoenix in 2004. Fitch also expects Continental to pursue further acquisitions in the short to medium term. At the same time the agency notes that Continental was the recent target of a private equity investor for a potential takeover bid. While this process has been terminated by mutual agreement, LBO risks remain present. In early 2006, Robert Bosch GmbH ("Bosch", rated F1+) together with Mann+Hummel acquired the Purolator filter business from ArvinMeritor Inc. (rated BB/Negative). In addition, Bosch intends to buy Australian brake manufacturer Pacifica Group Ltd., which has an estimated transaction value of approximately EUR300 million, subject to various conditions. On the other hand, conglomerate ThyssenKrupp AG (rated BBB+/F2/Rating Watch Negative) recently sold its struggling body and chassis operations in North America to Canadian supplier Martinrea International Inc., which accounted for sales of approximately EUR1 billion. The current U.S. supplier crisis, which has been affecting many prominent players such as Delphi Corporation, Visteon Corporation (rated CCC/Negative) and Dana Corporation, could represent an opportunity for leading European suppliers with strong balance sheets and ample financial firepower to expand rapidly into the North American markets. Such transactions would enable them to boost growth in what are otherwise fairly mature Western car markets. To date, however, most European players have only been in a standby position, closely monitoring U.S. developments and seeking information about the quality of available assets. Alliances are proving to be another attractive form of sector consolidation. Suppliers are increasingly willing to bundle their complementary expertise and resources in co-operative agreements and share the increasing costs of operations and related risks. An example is the co-operation between Continental and automotive drive and chassis technology supplier ZF Friedrichshafen AG to develop hybrid technology systems. The joint ventures of Hella KGaA Hueck & Co., a supplier of automotive lighting and electronics components and systems, and Behr GmbH & Co. KG, a vehicle air-conditioning and engine- cooling specialist, are other examples of successful co- operations. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- November 2, 2006 TURNAROUND MANAGEMENT ASSOCIATION TMA UK Annual Conference Millennium Gloucester Hotel, London, UK Contact: http://www.turnaround.org/ November 2-3, 2006 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Third Annual Conference on Physician Agreements & Ventures Successful Strategies for Medical Transactions and Investments The Millennium Knickerbocker Hotel - Chicago Contact: 903-595-3800; 1-800-726-2524; http://www.renaissanceamerican.com/ November 3, 2006 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS AIRA/NCBJ Breakfast Program Marriott, San Francisco, CA Contact: 415-896-1600 or http://www.airacira.org/ November 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Marriott, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ November 7-8, 2006 EUROMONEY 5th Annual Distressed Debt Investment Symposium Hyatt Regency, London, UK Contact: http://www.euromoneyplc.com/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon & Guest Speaker, Joel Naroff to discuss the economy, lending and M&A markets Davio's Northern Italian Steakhouse, Philadelphia, PA Contact: http://www.turnaround.org/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting Marriott Tyson's Corner, Vienna, Virginia Contact: 703-912-3309 or http://www.turnaround.org/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia National Conference Sydney, Australia Contact: http://www.turnaround.org/ November 9, 2006 TURNAROUND MANAGEMENT ASSOCIATION Webinar "Second Lien Financing or Investing: Are There Opportunities for You?" TMA HQ, Chicago, IL Contact: http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Program St. Louis, Missouri Contact: 815-469-2935 or http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Program - Cost Containment Strategies St. Louis, MO Contact: http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Cocktail Reception Honoring the Bankruptcy Benches of the Southern & Eastern Districts of New York and New Jersey Association of the Bar of the City of New York New York, NY Contact: http://www.turnaround.org/ November 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION Joint Reception with NYIC/NYTMA TBA, New York Contact: 908-575-7333 or http://www.turnaround.org/ November 15, 2006 LI TMA Formal Event TMA Australia National Conference Long Island, New York Contact: http://www.turnaround.org/ November 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner Citrus Club, Orlando, Florida Contact: 561-882-1331 or http://www.turnaround.org/ November 15-16, 2006 EUROMONEY INSTITUTIONAL INVESTOR Asia Capital Markets Forum Island Shangri-La, Hong Kong Contact: http://www.euromoneyplc.com/ November 16, 2006 BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA New Legal Strategies for Retaining Executives at Troubled Companies Contact: 240-629-3300; http://www.beardaudioconferences.com/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Bankruptcy Judges Panel Duquesne Club, Pittsburgh, Pennsylvania Contact: http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Dinner Program TBA, Seattle, Washington Contact: 503-223-6222 or http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Dinner Program TBA, Seattle, WA Contact: 403-294-4954 or http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Life in the Bankruptcy Court with BAPCPA, A View from The Bench Oxford Hotel, Denver, CO Contact: http://www.turnaround.org/ November 16-17, 2006 STRATEGIC RESEARCH INSTITUTE 8th Annual West Distressed Debt Investing Forum Venetian Resort Hotel Casino, Las Vegas, NV Contact: http://www.srinstitute.com November 17, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast with Harry Nolan, Author of Airline without a Pilot - Lessons in Leadership Westin Buckhead, Atlanta, GA Contact: http://www.turnaround.org/ November 23, 2006 TURNAROUND MANAGEMENT ASSOCIATION Martini Party Vancouver, British Columbia Contact: 403-294-4954 or http://www.turnaround.org/ November 23-24, 2006 EUROMONEY CONFERENCES 5th Annual China Conference China World Hotel Beijing, China Contact: http://www.euromoneyconferences.com/ November 27-28, 2006 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Thirteenth Annual Conference on Distressed Investing Maximizing Profits in the Distressed Debt Market The Essex House Hotel - New York Contact: 903-595-3800; 1-800-726-2524; http://www.renaissanceamerican.com/ November 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, FL Contact: 561-882-1331 or http://www.turnaround.org/ November 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION Joint TMA Florida/ACG Tampa Bay Luncheon Buying and Selling a Troubled Company Centre Club, Tampa, FL Contact: http://www.turnaround.org/ November 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Special Program TBA, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ November 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Industry Trends Jasna Polana, Princeton, NJ Contact: http://www.turnaround.org/ November 30, 2006 EUROMONEY CONFERENCES Euromoney/DIFC Annual Conference Managing superabundant liquidity Madinat Jumeirah, Dubai Contact: http://www.euromoneyconferences.com/ November 30-December 2, 2006 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Hyatt Regency at Gainey Ranch, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ December 5, 2006 EUROMONEY CONFERENCES CFO Forum Hyatt Regency, Hangzhou, China Contact: http://www.euromoneyconferences.com/ December 6, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Dinner Portland, Oregon Contact: 503-223-6222 or http://www.turnaround.org/ December 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast The Newark Club, Newark, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ December 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Cash Management After The Storm: Near-Term Planning for Long-Term Business Success Sheraton, Metairie, LA Contact: http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION LI TMA Holiday Party TBA, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function GE Commercial Finance, Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ December 20, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA, AVF & CFA Georgia Aquarium, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ January 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lender's Panel University Club, Jacksonville, FL Contact: http://www.turnaround.org/ January 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Lender's Panel Breakfast Westin Buckhead, Atlanta, GA Contact: http://www.turnaround.org/ January 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ January 17-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Conference Wynn, Las Vegas, NV Contact: http://www.turnaround.org/ February 8-11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Certified Turnaround Professional (CTP) Training NY/NJ Contact: http://www.turnaround.org/ February 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA PowerPlay - Atlanta Thrashers Philips Arena, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ January 25-27, 2007 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Hyatt Regency, Denver, CO Contact: 1-703-739-0800; http://www.abiworld.org/ February 25-26, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Marriott Park City, UT Contact: http://www2.nortoninstitutes.org/ February 2007 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium San Juan, Puerto Rico Contact: 1-703-739-0800; http://www.abiworld.org/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Martini Madness Cocktail Reception with Geraldine Ferraro Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ March 15-18, 2007 NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES NABT Spring Seminar Ritz-Carlton Buckhead, Atlanta, GA Contact: http://www.NABT.com/ March 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ March 27-31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spring Conference Four Seasons Las Colinas, Dallas, Texas Contact: http://www.turnaround.org/ March 29-31, 2007 ALI-ABA Chapter 11 Business Reorganizations Scottsdale, Arizona Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/ April 11-15, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Annual Spring Meeting J.W. Marriott, Washington, DC Contact: 1-703-739-0800; http://www.abiworld.org/ April 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ April 29 - May 1, 2007 INTERNATIONAL BAR ASSOCIATION International Insolvency Conference Zurich, Switzerland Contact: http://www.ibanet.org/ May 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual TMA Atlanta Golf Outing White Columns, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, Illinois Contact: http://www.airacira.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, WY Contact: http://www2.nortoninstitutes.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, RI Contact: 1-703-739-0800; http://www.abiworld.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ September 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ October 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Orlando, Florida Contact: http://www.ncbj.org/ October 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ October 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ December 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ December 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ January 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference JW Marriott Spa and Resort, Las Vegas, NV Contact: http://www.airacira.org/ September 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ October 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ October 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, Nevada Contact: http://www.ncbj.org/ October 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, Louisiana Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers - the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Emerging Role of Corporate Compliance Panels Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Distressed Market Opportunities Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Reverse Mergers-the New IPO? Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E- Discovery and Records Management for Bankruptcy Practitioners and Litigators Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Contact: http://www.beardaudioconferences.com/ 240-629-3300 The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* 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 * * *