/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061113.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 Monday, November 13, 2006, Vol. 7, No. 225 Headlines A U S T R I A AERIAL HELICOPTER: Property Manager Declares Insufficient Assets BEHRENS EUROLIFT: Court Orders Business Shutdown CASA LLC: Vienna Court Orders Business Shutdown KITTY LLC: Property Manager Declares Insufficient Assets OBERDA & ZEIDL: Vienna Court Orders Business Shutdown SE LLC: Creditors' Meeting Slated for November 21 SEDISA LLC: Creditors' Meeting Slated for November 21 E S T O N I A SAMPO PANK: Parent to Sell Sampo Bank to Danske for EUR4 Billion SAMPO PANK: Moody's Places D+ FSR on Positive Outlook F R A N C E CONVERIUM HOLDING: Earns US$54.3 Million for Third Quarter 2006 EUROTUNNEL GROUP: Signs Contract With Nedexco on Truck Transport NEXANS S.A.: Inks Agreement to Acquire Olex for AU$515 Million NEXANS S.A.: Olex Bid Cues S&P to Put Ratings on Watch Negative G E O R G I A VIMPEL-COMMUNICATIONS: Armenia Offers 10% Stake in Armentel G E R M A N Y ALPHA WOEHLER: Claims Registration Ends November 22 BENQ CORP: Germans Start Bankruptcy Probe on BenQ Mobile C & T WARENHANDELSGESELLSCHAFT: Claims Registration Ends Nov. 17 CARL ERNST: Claims Registration Ends November 21 DENGLER ENGINEERING: Claims Registration Ends November 19 FRANKE GMBH: Claims Registration Ends November 16 GEHRING INTERNATIONALE: Claims Registration Ends Nov. 21 KRYSTALTECH IMMOBILIEN: Claims Registration Ends November 15 MARION MOSEL: Creditors' Meeting Slated for November 17 MTH HEIZUNGSBAU: Claims Registration Ends November 17 SACHS FAHRZEUG: Exits Insolvency Zone After Management Buy-Out SFT SERVICE: Claims Registration Ends November 14 TUI AG: Earns EUR299.4 Million for Third Quarter 2006 TUI AG: Starts Winter Season with Increased Bookings TUI AG: Tourism Restructuring Prompts Moody's to Lower Ratings WCM AG: Declares Insolvency After Debt Talks Fail H U N G A R Y BORSODCHEM NYRT: European Commission OKs First Chemical's Offer BORSODCHEM NYRT: Earns HUF4.6 Bln From January-September 2006 I R E L A N D ELAN CORP: Moody's Affirms B3 Corporate Family Rating ELAN CORP: Standard & Poor's Affirms B Corporate Credit Rating ELAN FINANCE: Moody's Assigns B3 Rating on New Senior Notes ELAN FINANCE: S&P Rates US$500-Mln Senior Unsecured Notes at B I T A L Y WCM AG: Declares Insolvency After Debt Talks Fail K A Z A K H S T A N AINA LINE: Creditors Must File Claims by Nov. 17 BTA IPOTEKA: S&P Lifts Long-Term Counterparty Rating to BB- BYTOVIK-SEVER LLP: Creditors Must File Claims by Nov. 17 DORSNABREGION LLP: Aktube Court Starts Bankruptcy Procedure ENERGOPROMSERVICE & K: Court Opens Bankruptcy Proceedings ESBE COMPANY: Proof of Claim Deadline Slated for Nov. 17 EURASIAN BANK: S&P Assigns B/B Counterparty Credit Ratings FORTUNA-TRANSIT: Proof of Claim Deadline Slated for Nov. 17 HELIN LLP: Almaty Court Begins Bankruptcy Proceedings KAZ DRAG: Claims Filing Period Ends Nov. 17 MONETA DETERGENTS: Court Commences Bankruptcy Proceedings NUR-ELEM LTD: Claims Filing Period Ends Nov. 17 OMEGA SOFT: Claims Filing Period Ends Nov. 17 OST BUSINESS: Creditors' Claims Due Nov. 17 OTRAR JSC: Creditors Must File Claims by Nov. 19 PETROLINE LLP: Claims Registration Ends Nov. 17 REAL INVEST: Claims Registration Ends Nov. 17 SALINO TRADE: Creditors' Claims Due Nov. 17 ST-PRODUCTS LLP: Claims Filing Period Ends Nov. 17 SPETSKOMSERVICE UK: Court Opens Bankruptcy Proceedings VK STROY: Claims Registration Ends Nov. 17 K Y R G Y Z S T A N GREEN FOREST: Proof of Claim Deadline Slated for Dec. 22 MERIDIAN LTD: Claims Filing Period Ends Dec. 22 N E T H E R L A N D S GREEN PARK: S&P Rates EUR12.9-Million Class E Notes at BB P O L A N D BORSODCHEM NYRT: European Commission OKs First Chemical's Offer BORSODCHEM NYRT: Earns HUF4.6 Bln From January-September 2006 R U S S I A AGRO-IMPEKS CJSC: Court Names I. Maslov as Insolvency Manager ARKTIK-TRANS-GAS-STROY: Court Names A. Skilov to Manage Assets BASHKIRSKIY CLOTH: Court Names I. Khayrullin to Manage Assets BUILDER-2 OJSC: Perm Bankruptcy Hearing Slated for January 26 CENTERTELECOM OAO: Earns RUR1.9 Bln for First Nine Months 2006 CENTERTELECOM OAO: Avails of US$115 Million Long-Term Financing CENTERTELECOM OAO: Unveils Financial Strategy for 2006-2009 DIAMOND CJSC: Moscow Court Names I. Gorn as Insolvency Manager ENERGY CJSC: Court Names O. Syskov as Insolvency Manager FURNITURE OJSC: Court Names N. Kazharov as Insolvency Manager GOLDEN TELECOM: Commences Rebranding; Awareness Survey to Follow GOOSE FACTORY: Orel Bankruptcy Hearing Slated for December 6 GORKOVSKOYE: Omsk Court Starts Bankruptcy Supervision Procedure HARVEST CJSC: Court Names M. Sorokin as Insolvency Manager INDUSTRY OIL: Moscow Court Names I. Gorn as Insolvency Manager IREMEL' OJSC: Court Starts Bankruptcy Supervision Procedure ISTOCHNIK CJSC: Novosibirsk Court Hearing Slated for Feb. 14 KHASAVYURTOVSKIY MEAT: Court Starts Bankruptcy Supervision NOVATEK OAO: Wins Sustainable Development Award TNK-BP HOLDING: Tackles Kovykta Gas Haulage Routes with NGOs VIMPEL-COMMUNICATIONS: Armenia Offers 10% Stake in Armentel VNESHTORGBANK: Fitch Puts BB Local Currency IDR to VTB Armenia S P A I N GENERAL CABLE: To Issue US$315-Million Senior Convertible Notes GENERAL CABLE: Earns US$37.1 Million for Third Quarter 2006 GENERAL CABLE: Moody's Assigns B1 Rating on US$315-Mln Sr. Notes GENERAL CABLE: Improved Leverage Spurs S&P to Lift Ratings S W E D E N CONCORDIA BUS: Deloitte AB Expresses Going Concern Doubt S W I T Z E R L A N D CONVERIUM HOLDING: Earns US$54.3 Million for Third Quarter 2006 T U R K E Y CANWEST MEDIAWORKS: Moody's Confirms B2 Sr. Subordinate Rating GENERAL CABLE: To Issue US$315-Million Senior Convertible Notes GENERAL CABLE: Earns US$37.1 Million for Third Quarter 2006 GENERAL CABLE: Moody's Assigns B1 Rating on US$315-Mln Sr. Notes GENERAL CABLE: Improved Leverage Spurs S&P to Lift Ratings U K R A I N E AGROPRODUKT LLC: Court Names Sergij Avilov as Insolvency Manager AQUA-INVEST CJSC: Court Names V. Kosovskij as Insolvency Manager BUSHEL ZERNO: Court Names Ivan Radik as Insolvency Manager GOLDEN TELECOM: Commences Rebranding; Awareness Survey to Follow INDEPENDENT TEXTILE: Harkiv Court Names Ivan Radik as Liquidator KRYMTEPLOENERGOMONTAZH OJSC: Galina Yeryomenko to Manage Assets MICHURINSKE LLC: Court Names Tamara Zhevnova as Liquidator MYRONIVSKY HLIBOPRODUCT: Moody's Puts (P)B2 Rating on Bond Issue TNK-BP HOLDING: Tackles Kovykta Gas Haulage Routes with NGOs UKRVTORMET CJSC: Court Names Ludmila Volovik as Liquidator YAVVA LLC: Court Names Kostyantin Romanov as Insolvency Manager * Fitch Gives BB- Rating to Ukraine's Upcoming US$1-Bln Eurobond * S&P Rates Ukraine's Upcoming US$1-Bln Eurobond Issue at BB- U N I T E D K I N G D O M B W CONTRACTING: Appoints Andrew Rosler to Liquidate Assets BATHE LIMITED: Names Simon Thornton as Administrator BOLTON HEMMING: Appoints Hodgsons to Administer Assets CANWEST MEDIAWORKS: Moody's Confirms B2 Sr. Subordinate Rating CAPRICORN DESIGN: Names Elizabeth Arakapiotis Liquidator CORPACK INDUSTRIES: Brings In KPMG as Joint Administrators CORPACK INDUSTRIES: KMPG LLP Selling Corrugated Box Manufacturer CROSSCO 925: Creditors Confirm Liquidators' Appointment EIRWALES GLASS: Claims Filing Period Ends Dec. 14 ELEVATOR PRINTING: Taps Liquidator from Fisher Partners EMERALD RECRUITMENT: Hires Joint Administrators from Menzies EUROSAIL 2006-3NC: Moody's Assigns Ba2 Rating on GBP4-Mln Notes FIXED INCOME: Moody's Cuts Rating on Oval Series 2 Notes to Ba2 GRANGE WELDING: Creditors Confirm Liquidator's Appointment GRASSLAND SERVICES: Liquidators Set Dec. 8 Claims Bar Date INDUSTRIA ENGINEERING: Taps Menzies as Joint Administrators INDUSTRIA ENGINEERING: Industrial Product Supplier Up for Sale INFORMATION TECHNOLOGY: Hires BDO Stoy as Joint Administrators INS NEWS: Taps Joint Administrators from Harrisons JAMES JACKSON: Brings In RSM Robson to Administer Assets JAUNOIR LIMITED: Creditors' Meeting Slated for November 21 JUPITER INTERNATIONAL: Taps Bijal Shah to Liquidate Assets KRS PROUD: Administrators to Sell Mobile Servicing & Repair Biz M & M SALES: Claims Registration Ends Dec. 31 MOUNTAIN TRADING: Taps Joint Administrators from Kroll NTL INC: Unveils "Virgin Media" After Telewest-Virgin Merger NTL INC: Prepares GBP5-Billion Merger Offer for ITV NTL INC: Posts GBP96.1 Million Net Loss for Third Quarter 2006 PPN JOINERY: Joint Liquidators Take Over Operations PRISTINE ENGINEERING: Brings In SFP as Joint Administrators SACHS FAHRZEUG: Exits Insolvency Zone After Management Buy-Out SERVICE CENTRE: Creditors' Claims Due Dec. 11 SOCCERZONE LIMITED: Five-a-Side Soccer Center Up for Sale SOUTH EASTERN: Brings In Liquidator from Bond Partners SPIRIT EVENTS: Michael Young Leads Liquidation Procedure THREE COOKS: Appoints Tenon Recovery as Administrators TRANS-EUROPEAN: Taps Begbies Traynor to Administer Assets VIATEL HOLDING: Auditors Express Going Concern Doubt WESTLINK EXPRESS: Taps Harrisons as Joint Administrators WINNER PRODUCE: Claims Filing Period Ends Dec. 15 YELLO FLOORING: Hires Liquidator from Ashcrofts * Cadwalader Names Special Counsel Across Practices and Offices ********* ============= A U S T R I A ============= AERIAL HELICOPTER: Property Manager Declares Insufficient Assets ---------------------------------------------------------------- Dr. Walter Kainz, the court-appointed property manager for LLC Aerial Helicopter (FN 191810z), declared Sept. 18 that the Debtor's property is insufficient to cover creditors' claim. The Land Court of Korneuburg is yet to rule on the property manager's claim. Headquartered in Diepolz, Austria, the Debtor declared bankruptcy on Sept. 4 (Bankr. Case No. 32 S 10/06t). The property manager and his representative can be reached at: Dr. Walter Kainz c/o Dr. Eva Wexberg Gusshausstrasse 23 1040 Vienna, Austria Tel: 01/505 88 31 Fax: 01/505 94 64 E-mail: kanzlei@kainz-wexberg.at BEHRENS EUROLIFT: Court Orders Business Shutdown ------------------------------------------------ The Land Court of Ried im Innkreis entered an order Sept. 18 shutting down the business of LLC behrens eurolift (FN 113961s). Court-appointed property manager Robert Mayrhofer recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Robert Mayrhofer Kapuzinerberg 2 4910 Ried im Innkreis, Austria Tel: 07752 / 82661 Fax: 07752 / 80370 E-mail: dr.mayrhofer-dr.koepplinger@utanet.at Headquartered in Innkreis, Austria, the Debtor declared bankruptcy on Sept. 7 (Bankr. Case No. 17 S 31/06z). CASA LLC: Vienna Court Orders Business Shutdown ----------------------------------------------- The Trade Court of Vienna entered an order Sept. 18 shutting down the business of LLC Casa (FN 252903t). Court-appointed property manager Michael Lesigang recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Michael Lesigang Landstrasser Hauptstrasse 14-16/8 1030 Vienna, Austria Tel: 715 25 26 E-mail: michael@lesigang.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 9 (Bankr. Case No. 2 S 130/06i). KITTY LLC: Property Manager Declares Insufficient Assets -------------------------------------------------------- Dr. Christiane Pirker, the court-appointed property manager for LLC Kitty (FN 248870k), declared Sept. 18 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 3 (Bankr. Case No. 3 S 52/06a). The property manager and his representative can be reached at: Dr. Christiane Pirker Hasenhutgasse 9 Haus 3 1120 Vienna, Austria Tel: 817 57 57 Fax: 817 57 55-17 E-mail: Dr.Christiane.Pirker@chello.at OBERDA & ZEIDL: Vienna Court Orders Business Shutdown ----------------------------------------------------- The Trade Court of Vienna entered an order Sept. 18 shutting down the business of KEG Oberda & Zeidl (FN 223333g). Court- appointed property manager Maximilian Schludermann recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Maximilian Schludermann c/o Mag. Wolfgang Winkler Reisnerstrasse 32/12 1030 Vienna, Austria Tel: 715 50 45 Fax: 715 50 47 4 E-mail: office@anwalt-vienna.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 5 (Bankr. Case No. 6 S 75/06f). Wolfgang Winkler represents Dr. Schludermann in the bankruptcy proceedings. SE LLC: Creditors' Meeting Slated for November 21 ------------------------------------------------- Creditors owed money by LLC SE (FN 264612k) are encouraged to attend the creditors' meeting at 1:00 p.m. on Nov. 21 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1701 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 18 (Bankr. Case No. 6 S 84/06d). Peter Zens serves as the court-appointed property manager of the bankrupt estate. Norbert Schopf represents Dr. Zens in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Peter Zens c/o Dr. Norbert Schopf Reichsratsstrasse 7 1010 Vienna, Austria Tel: 534 90 Fax: 534 90 50 E-mail: office@schopf-zens.at SEDISA LLC: Creditors' Meeting Slated for November 21 ----------------------------------------------------- Creditors owed money by LLC Sedisa (FN 214917f) are encouraged to attend the creditors' meeting at 12:45 p.m. on Nov. 21 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1701 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 18 (Bankr. Case No. 6 S 83/06g). Georg Kahlig serves as the court-appointed property manager of the bankrupt estate. Gerhard Stauder represents Dr. Kahlig in the bankruptcy proceedings. The property manager can be reached at: Dr. Georg Kahlig c/o Mag. Gerhard Stauder Siebensterngasse 42 1070 Vienna, Austria Tel: 523 47 91 0 Fax: 523 47 91 33 E-mail: kahlig.partner@aon.at ============= E S T O N I A ============= SAMPO PANK: Parent to Sell Sampo Bank to Danske for EUR4 Billion ---------------------------------------------------------------- Sampo plc signed an agreement to sell the Sampo Bank Group to Danske Bank A/S for EUR4.05 billion. Sampo Bank will continue to operate under its current name. The transaction concerns the whole of Sampo Bank Group, which consists of Sampo Bank plc and its subsidiary banks in the Baltic countries and Russia as well as a number of investment services companies. The transaction has no effect on Sampo Bank�s clients. The operations included in the transaction accounted for 31% of Sampo Group's total pre-tax profit for the period January- September 2006 and 25% of its total net assets. "After the transaction Sampo Bank will be a part of a rapidly growing Nordic banking group. From Sampo Group's perspective the offer made by Danske Bank was simply so inviting that we could not refuse it," says Bjorn Wahlroos, CEO of Sampo Group. As the transaction is an acquisition of shares, all the staff involved will remain as employees of Sampo Bank also under the new ownership. "There is practically no overlap in the current operations of Sampo Bank and Danske Bank. Therefore I believe that Danske Bank is the best possible owner for both Sampo Bank and its staff to continue their excellent work and growth both in Finland and in the Baltics," Wahlroos continues. Mika Ihamuotila, President and CEO of Sampo Bank plc, will continue in his present role until the closing date, after which he will join Sampo plc and continue as a member of the Group Executive Board. Sampo Group's other business areas, P&C insurance and life insurance, will continue to follow their current strategies. Sampo Bank, soon to be owned by Danske Bank A/S, and Sampo Life Ltd. have signed a co-operation agreement that guarantees Sampo Life the right to sell life and pension insurance products through Sampo Bank's branch network. The transaction requires the necessary approvals, which will be received in the first part of the year 2007. About Sampo Bank Headquartered in Helsinki, Finland, Sampo Bank -- http://www.sampo.com/-- specializes in investments and saving services. At the end of September 2006, it had total assets of EUR26.4 billion and it reported EUR277 million in year-to-date pre-tax profits. About AS Sampo Pank Headquartered in Tallin, Estonia, AS Sampo Pank is engaged in corporate lending, retail lending and asset management activities. The bank had total assets in the amount of EEK21 billion (EUR1.3 billion) as at Sept. 30, 2006. * * * As reported in the TCR-Europe on April 5, Moody's has upgraded AS Sampo Pank's financial strength rating (FSR) to D+ from D, changing the outlook to stable. According to Moody's, the upgrade reflects AS Sampo Pank's stable market presence in Estonia as well as the group's continued sound financial position, including improving credit quality, solid earnings growth and success in growing its deposit funding base. AS Sampo Pank's A2/P-1 deposit ratings reflect the strong likelihood of support from the bank's 100% owner, Sampo Bank plc (rated A1/P-1/B-). The stable outlook on the bank's deposit ratings was affirmed. SAMPO PANK: Moody's Places D+ FSR on Positive Outlook ----------------------------------------------------- Moody's Investors Service placed on review for possible upgrade the A1 long-term foreign currency deposit rating of Sampo Bank Plc. The action follows the recent announcement that the largest Danish financial institution, Danske Bank, will acquire full ownership of the Finnish bank. Sampo Bank's Prime-1 short-term foreign currency deposit rating and B- Bank Financial Strength Rating were affirmed. At the same time, Moody's placed on review for possible upgrade the A2 long-term local and foreign currency deposit rating of AS Sampo Pank following a similar action on the parent bank. The short- term foreign currency rating was affirmed and the D+ bank financial strength rating was put on positive outlook reflecting both the progress in the bank's financial fundamentals and the view that the acquisition by Danske Bank of Sampo Bank plc, may in time provide an additional boost to the Estonian subsidiary's franchise position. Moody's understands that the transaction is expected to be completed in the first quarter of 2007, subject to regulatory approval. The review for possible upgrade will focus on the nature and likelihood of potential future support from Danske Bank. In Moody's opinion, Sampo Bank provides a good fit for Danske Bank, both from a cultural standpoint and in terms of the latter's strategy of pursuing retail banking in north-western Europe. The rating agency expects that over time Sampo Bank will benefit from Danske Bank's sophisticated risk management and IT systems and that the two banks will be able to generate synergies and savings. Sampo Bank will continue to provide banking and investment services in Finland under its current brands and continues to distribute Sampo Group's products. Based on Q3 2006 data, Sampo Bank will account for 12% of the Danske Bank's total group risk-weighted assets and 13% of its pre-tax profit. Thus far Sampo Bank has been a 100%-owned subsidiary of the financial group Sampo plc (Sampo Group). It benefits from a good domestic franchise, consistent strategy, sound risk profile, good profitability and adequate capitalization. The bank's focus is on retail and SME segments providing both traditional banking and investment services. In a fiercely competitive market, Sampo Bank has maintained stable market shares of about 13% in both lending and deposits. Outside Finland, Sampo Bank is active in all three Baltic countries, whose contribution is increasing to both the balance sheet total (9% in 2005, 6% in 2004) and pre-tax profit (6% in 2005, 3% in 2004). Since the third quarter of 2006, Sampo Bank has also owned a small bank based in St. Petersburg, Russia. Ratings placed on review for possible upgrade: * Sampo Bank's A1 long-term foreign currency deposit rating * AS Sampo Pank's A2 long-term local and foreign currency deposit rating Ratings affirmed: * Sampo Bank's Prime-1 short-term foreign currency deposit rating * Sampo Bank's B- financial strength rating * AS Sampo Pank's Prime-1 short-term foreign currency deposit rating * Danske Bank's Aa1/P-1 deposit ratings and A- financial strength rating Rating put on positive outlook: * AS Sampo Pank's D+ financial strength rating Sampo Bank is headquartered in Helsinki, Finland. At the end of September 2006, it had total assets of EUR26.4 billion and it reported EUR277 million in year-to-date pre-tax profits. AS Sampo Pank is headquartered in Tallinn, Estonia. It is engaged in corporate lending, retail lending and asset management activities. The bank had total assets in the amount of EEK21 billion (EUR1.3 billion) as at Sept. 30, 2006. Danske Bank is headquartered in Copenhagen, Denmark. At the end of September 2006, it had total assets of EUR355.7 billion and it reported EUR1.3 billion in year-to-date pre-tax profits. =========== F R A N C E =========== CONVERIUM HOLDING: Earns US$54.3 Million for Third Quarter 2006 --------------------------------------------------------------- Converium Holding AG released its financial results for the third quarter and first nine months ended Sept. 30, 2006. Converium posted US$54.3 million in net profit against US$538.3 million in revenues for the third quarter of 2006, compared with US$6.9 million in net losses against US$678.7 million in revenues for the same period in 2005. The company posted US$178.4 million in net profit against US$1.39 billion in revenues for the first nine months of 2006, compared with US$34.5 million in net profit against US$2.18 billion in revenues for the same period in 2005. As of Sept. 30, 2006, Converium Holding AG had US$11.87 billion in assets, US$9.97 billion in liabilities and US$1.9 billion in shareholder equity. "Converium reports another quarter of impressive financial performance," Inga Beale, Chief Executive Officer, commented. "Our capital base has further strengthened. The results primarily reflect strong current-year underwriting performance, highlighting the quality of our book of business. The third quarter demonstrates once more the sustainability of Converium's rebound." "We now focus on the year-end renewal negotiations and believe that we can benefit from the recent positive rating actions," Mr. Beale added. "We remain confident that Converium will be awarded a better financial strength rating in the near future." Agreement to Sell North American Operations On Oct. 17, Converium disclosed of the signing of a definitive agreement to sell its North American operations to National Indemnity Company, a Berkshire Hathaway company, for a total consideration of US$295 million comprised of US$95 million in cash and US$200 million in assumption of debt. Converium has not provided any guarantee or indemnity in respect of the reserves of the North American operations. The transaction is subject to regulatory approvals and customary closing conditions. The transaction is not reflected in Converium's third quarter financial accounts presented. The sale to National Indemnity Company is based on the balance sheet as of June 30, 2006. On this basis Converium estimates that the sale will result in a decrease in shareholders' equity of US$135 million. The overall effect on net income and shareholders' equity will depend on the amount of unrealized investment losses or gains at the North American operations, closing net asset adjustments and foreign exchange developments. Increases or decreases in the net assets of the North American operations after June 30, 2006 do not give rise to a net benefit or detriment to Converium, resulting in a fixed economic effect of the transaction at closing. On completing this transaction, Converium will achieve finality regarding its North American operations. In addition, the Company's risk profile improves following the assumption of all of the North American operations' reinsurance liabilities (in excess of US$1 billion as of June 30, 2006) by National Indemnity Company. Following the conclusion of the sale, Converium will maintain a strong financial position, while further de-risking its balance sheet. Converium is very pleased with Standard & Poor's decision to place the Company on Credit Watch with positive implications after the transaction was announced. Financial Guidance for 2006 Essentially Unchanged Converium reiterates the fundamental elements of its full-year financial guidance given in March 2006: -- gross premiums written for 2006 are projected to come in at US$1.8-1.9 billion; -- the priced combined ratio for the ongoing non-life operations is anticipated at around 102.5%, including an administration expense ratio of 5.5%, expected losses from natural catastrophes of about US$80 million but excluding expected Corporate Center costs of up to US$55 million as compared with the Company's previous guidance of US$45-50 million. This upward revision of Corporate Center costs is driven by additional expenses associated with the sale of the North American operations; -- the corporate tax rate is expected to range between 12-15%, up from the previous guidance of 7-12%. This upward revision is largely attributable to more income from high-tax jurisdictions; -- average invested assets including cash and cash equivalents should be in the magnitude of around US$7.2 billion, up from the previous guidance of around US$7 billion. Positive Outlook for Year-End Renewals In the ongoing year-end renewals Converium experiences strong support from clients. Given the most recent positive signals from rating agencies, especially Standard & Poor's placing of Converium under Credit Watch with positive implications, clients believe that Converium will obtain an improved financial strength rating in the near future. Even assuming no upgrade before the end of the year Converium expects to achieve at least a stable volume of business in 2007, based on increasing shares in a number of client relationships, new business from various markets, and overall market conditions which Converium believes to remain attractive. Distinct Value Proposition Following a ratings upgrade Converium will continue to build its franchise as a mid-sized multi-line reinsurer with a distinct geographic emphasis on Europe, Asia Pacific and the Middle East, and with a focus on global specialty lines. The Company believes that, based on its knowledge-based strategy, it can successfully position itself as an "intelligent alternative" in global reinsurance markets, also benefiting from a clear and distinctive strategic stance on North America. As a result of a ratings upgrade, Converium expects to gain increased shares with existing clients and to establish new client relationships without compromising on profitability. About Converium Headquartered in Zug, Switzerland, Converium Holding AG -- http://www.converium.com/-- provides treaty and individual coverage for risks including accident and health, credit and surety, e-commerce, third party and professional liability, life, and special casualty. The company also operates in Germany, United Kingdom, France, Malaysia, Singapore, Australia, Japan, Bermuda, Argentina, U.S.A., Brazil and Canada. * * * As reported in the TCR-Europe on Oct. 20, Fitch Ratings placed Swiss-based Converium AG's Insurer Financial Strength BBB- rating on Rating Watch Positive. The agency has also placed other ratings within the Converium group on RWP. Converium group ratings are: -- Converium AG's IFS BBB- on RWP; -- Converium AG's Issuer Default rating BBB- on RWP; -- Converium Insurance (U.K.) Limited's IFS BBB- on RWP; -- Converium Ruckversicherungs (Deutschland) AG's IFS BBB- on RWP; -- Converium Holding AG's IDR BB on RWP; and -- Converium Finance S.A.'s US$200 million subordinated debt due 2032 BB+ on RWP. EUROTUNNEL GROUP: Signs Contract With Nedexco on Truck Transport ---------------------------------------------------------------- Eurotunnel Group signed a contract with Dutch transport and logistic company Nedexco to transport 300,000 trucks across the Channel between 2007 and 2011 on Nov. 10. "Operationally, Eurotunnel and Nedexco were born in the same year. From the outset, we have always chosen to cross the Channel via the Tunnel, which gives us the guarantee of speed, ease and reliability, which are so important in our business," Jacques Van der Heijden, Nedexco managing director declared. "We have recently signed long-term commitments with customers who seek quality throughout the logistics chain. For us it was a natural choice to entrust Eurotunnel with this business," he added. "This is a major contract which demonstrates the confidence that Nedexco places in Eurotunnel's service quality. To ensure that we continue to improve for our millions of customers, Eurotunnel is investing heavily in its "Focus on Customers" program. Our commercial and operating performance, our ability to adapt to our markets, the professionalism and commitment of our staff have created the foundations for our Safeguard Restructuring Plan," Jacques Gounon, Chairman and Chief Executive of Eurotunnel disclosed. Headquartered in Netherlands, Nedexco -- http://www.nedexco.com/english/-- specializes in refrigerated transport and logistics management. The company transports fresh produce between Holland, Germany and the U.K. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. Eurotunnel obtained Aug. 2 an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). Bondholders will be voting on a restructuring plan on Nov. 15. NEXANS S.A.: Inks Agreement to Acquire Olex for AU$515 Million -------------------------------------------------------------- Nexans S.A. signed an agreement to acquire the Australian company Olex for AU$515 million (around EUR310 million). Olex employs 910 people with annual revenue of EUR330 million at current metal price (EUR240 million using Nexans' constant metal rate) in 2006 and an EBITDA ratio at constant metal price of more than 15% (fiscal year ended at June 30, 2006). Olex has three manufacturing sites based in Tottenham and Lilydale in Australia, and in New Plymouth in New Zealand, and a dozen sales offices in Australia, New Zealand, Singapore and China. The company's activities are divided between markets for cables for power network infrastructure (33%), specialty cables for industry such as mining (24%), and cables for the building sector, both energy and telecom (43%). "This acquisition is in line with our strategy to expand in the Asia-Pacific area, a fast-growing area, and strengthens the geographical rebalancing of our Group. The percentage of Nexans' sales made in this area will almost double from 6% to 11%," said Gerard Hauser, Nexans' Chairman and CEO. "This acquisition also reinforces Nexans' core energy sector business, particularly in high-voltage and special cables for industry, thanks to Olex's broad product range. Olex, whose brand name and reputation are well known, has a strong management team and 3 advanced production sites. Finally, this acquisition will offer us synergies, mainly commercial, in particular through the pooling of Nexans sales teams in the world and Olex ones in the Asia-Pacific area," he added. The investment of around EUR310 million (that is to say 7 times expected 2007 EBITDA before synergies) will be entirely financed from Nexans' existing credit lines. It will have an accretive impact as from the first fiscal year. This acquisition will generate balance sheet goodwill of around EUR185 million and result in the Group's gearing reaching at the end of December 2006 about 47%. This transaction is subject to the approval of the Australian authorities. The closing is expected by the beginning of December. Headquartered in Paris, France, Nexans S.A. - http://www.nexans.com/-- designs, manufactures, and distributes copper and fiber-optic wires and cabling systems for use by many sectors including: automotive and aerospace industries, shipbuilding, railways, telecommunication and energy networks, oil & gas, etc. The company has industrial presence in 29 countries and commercial activities throughout the world. It employs 20,000 people and had sales in 2005 of EUR5.4 billion. * * * As reported in the TCR-Europe on June 27, Standard & Poor's Ratings Services lowered its long- and short-term corporate credit ratings on French cable manufacturer Nexans S.A. to 'BB+/B' from 'BBB-/A-3'. S&P said the outlook is stable. NEXANS S.A.: Olex Bid Cues S&P to Put Ratings on Watch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB+' long-term and 'B' short-term corporate credit ratings on France-based cable manufacturer Nexans S.A., on CreditWatch with negative implications. The CreditWatch placement follows Nexans' EUR310 million bid for 100% of Olex, an Australian manufacturer of electrical cables. The acquisition, which is expected to close in the short term, will likely be financed through drawing under Nexans' existing credit lines. "The acquisition of Olex will initially increase Nexans' debt levels and weaken debt-protection measures somewhat -- possibly to a level below our expectation for the ratings," said Standard & Poor's credit analyst Barbara Castellano. Standard & Poor's believes, however, that Nexans' business risk profile could benefit from the acquisition of Olex, as it increases geographic sales diversification in the Asia Pacific region -- a strategic growth market for Nexans. In addition, profitability should benefit from Olex's higher margins, and some distribution synergies will likely be realized. The rating agency will resolve the CreditWatch status when it has further information on the transaction and Nexans' strategy. "Our final assessment will also depend on the group's future financial policy, including its risk management and approach to acquisitions," said Ms. Castellano. "Based on current information, any potential downgrade should be limited to one notch." ============= G E O R G I A ============= VIMPEL-COMMUNICATIONS: Armenia Offers 10% Stake in Armentel ----------------------------------------------------------- The Armenian government is selling its 10% stake in CJSC Armenia Telephone Company to OJSC Vimpel-Communications, RIA Novosti reports citing Communications Minister Andranik Manukyan as saying. A sale, however, hinges on the condition that Vimpelcom discard further expansion plans in the country, Mr. Manukyan added. As reported in the TCR-Europe on Nov. 7, Vimpelcom will acquire Hellenic Telecommunications Organization's 90% stake in Armentel for EUR341.9 million. Vimpelcom will also absorb Armentel's EUR40 million in liabilities. Vimpelcom bested fellow bidders MTC, ETISALAT, VTEL Holdings and Knightsbridge Associates in a tender launched by OTE. The acquisition is subject to approval by the Armenian government, which holds a 10% stake in Armentel. Vimplcom expects to complete the deal by yearend. Armentel, which provides a wide range of integrated products and services for business and residential customers in Armenia, controls 40% of the Armenian telecommunications market, operating in the GSM 900 and CDMA standards. Armentel serves around 600,000 fixed-line and 400,000 mobile service subscribers. About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * As reported in the TCR-Europe on Oct. 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based mobile telecommunications operator Vimpel- Communications (JSC) to 'BB+' from 'BB', reflecting the company's continuing strong performance. S&P said the outlook is stable. ============= G E R M A N Y ============= ALPHA WOEHLER: Claims Registration Ends November 22 --------------------------------------------------- Creditors of Alpha Woehler Immobilien GmbH have until Nov. 22 to register their claims with court-appointed provisional administrator Johannes Graute. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on Dec. 6 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Essen Hall 293 2nd Floor Principal Establishment Gelber Bereich Zweigertstr. 52 45130 Essen, 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 Essen opened bankruptcy proceedings against Alpha Woehler Immobilien GmbH on Sept. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Alpha Woehler Immobilien GmbH Zweigertstrasse 43 45130 Essen, Germany Attn: Heinz Schwiertz, Manager Selma-Lagerloef-Road 27 45481 Muelheim, Germany The administrator can be contacted at: Dr. Johannes Graute III. Hagen 30 45127 Essen, Germany Tel: 02 01/10953 BENQ CORP: Germans Start Bankruptcy Probe on BenQ Mobile -------------------------------------------------------- Christian Schmidt-Sommerfeld, Germany's chief senior public prosecutor, told Suddeutsche Zeitung that it has started an investigation into the bankruptcy of BenQ Mobile GmbH & Co. OHG, the German unit of BenQ Corp., without discussing further details. Insiders told The Register that BenQ Mobile's management knew of the company's cashflow problems as early as August but deliberately delayed the bankruptcy filing and withheld this information to its employees. The company also allegedly reported 10.7 million BenQ handsets sold in the second quarter when it only sold 7.4 million units, The Register states citing other sources. In a TCR-Europe report on Oct. 25, BenQ Mobile confirmed plans to cut 1,900 jobs of its 3,000-strong workforce. The job cuts, bankruptcy administrator Martin Prager said, would affect all areas of the business including administration, marketing, sales and production. Deutsche Welle says 1,100 jobs will be reduced at the company's Kamp Lintfort site and around 850 jobs in Munich. The company intends to raise a profit by the end of the year in order to invite investors to rescue the troubled handset maker, after losing EUR850 million (US$1 billion) in the past 12 months. The insolvent handset maker earlier said it was working on a new business model that will focus on research, development and design. The remaining business would develop and manufacture mobile phone handsets under license for other makers, the German daily relates. Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BenQ Mobile filed for insolvency in Germany on Sept. 29, with Martin Prager serving as insolvency manager. The collapse came a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. * * * As reported in the TCR-AP on Oct. 31, Taiwan Ratings Corp. affirmed its twBB+/twB corporate credit ratings and twBB+ unsecured corporate bond issue rating on BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings removed all ratings from Credit Watch with negative implications, where they were placed on March 14, 2006, and withdrew all the ratings upon the company's request. C & T WARENHANDELSGESELLSCHAFT: Claims Registration Ends Nov. 17 ---------------------------------------------------------------- Creditors of C & T Warenhandelsgesellschaft mbH have until Nov. 17 to register their claims with court-appointed provisional administrator Volker Dick. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 17, 2007 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Meeting Room W1.25 1st Floor William Route 21 53111 Bonn, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bonn opened bankruptcy proceedings against C & T Warenhandelsgesellschaft mbH on Sept. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: C & T Warenhandelsgesellschaft mbH Attn: Thomas Dahmann, Manager Bahnhofstr. 16 53721 Siegburg, Germany The administrator can be contacted at: Volker Dick Cologne Route 135 53757 Sankt Augustin, Germany CARL ERNST: Claims Registration Ends November 21 ------------------------------------------------ Creditors of Carl Ernst Freitag GmbH & Co. KG have until Nov. 21 to register their claims with court-appointed provisional administrator Reinhard Titz. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Nov. 21 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against Carl Ernst Freitag GmbH & Co. KG on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Carl Ernst Freitag GmbH & Co. KG Frankenstrasse 16 20097 Hamburg, Germany Attn: Tomas Jessen, Manager Groemitzer Way 14 a 22147 Hamburg, Germany The administrator can be contacted at: Reinhard Titz Speersort 4/6 20095 Hamburg, Germany Tel: 303010 Fax: 30301226 DENGLER ENGINEERING: Claims Registration Ends November 19 --------------------------------------------------------- Creditors of Dengler Engineering GmbH have until Nov. 19 to register their claims with court-appointed provisional administrator Christian Moritz Hansberg. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Dec. 14 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bochum Hall A29 Ground Floor Principal Establishment Viktoriastrasse 14 44787 Bochum, 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 Bochum opened bankruptcy proceedings against Dengler Engineering GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Dengler Engineering GmbH Attn: Rolf Baumbach, Manager Wullener Field 52 58454 Witten, Germany The administrator can be contacted at: Moritz Hansberg Huestrasse 34 44787 Bochum, Germany FRANKE GMBH: Claims Registration Ends November 16 ------------------------------------------------- Creditors of Franke GmbH have until Nov. 16 to register their claims with court-appointed provisional administrator Christian Krueger. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Dec. 9 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kiel Hall 17 Kiel, 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 Kiel opened bankruptcy proceedings against Franke GmbH on Sept. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Franke GmbH Attn: Siegfried Franke and Johanna Lange, Managers Papenkamp 8-12 24114 Kiel, Germany The administrator can be contacted at: Christian Krueger Westring 455 24118 Kiel, Germany Tel: 0431/990810 GEHRING INTERNATIONALE: Claims Registration Ends Nov. 21 -------------------------------------------------------- Creditors of Gehring Internationale Handels GmbH have until Nov. 21 to register their claims with court-appointed provisional administrator Klaus Knetter. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Bielefeld Hall 4065 4 Floor Court Route 6 33602 Bielefeld, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bielefeld opened bankruptcy proceedings against Gehring Internationale Handels GmbH on Sept. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gehring Internationale Handels GmbH Attn: Michael Gehring, Manager Waldbadstr. 9/13 33803 Steinhagen, Germany The administrator can be contacted at: Klaus Knetter Otto-Brenner-Str. 186 33604 Bielefeld, Germany KRYSTALTECH IMMOBILIEN: Claims Registration Ends November 15 ------------------------------------------------------------ Creditors of Krystaltech Immobilien GmbH have until Nov. 15 to register their claims with court-appointed provisional administrator Wolfgang Hauser. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Dec. 19 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Tuebingen Hall 208 2nd Floor Branch Office Schulberg 14 72074 Tuebingen, 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 Tuebingen opened bankruptcy proceedings against Krystaltech Immobilien GmbH on Sept. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Krystaltech Immobilien GmbH Attn: Stefan Baumeister, Manager Ludwig-Erhard-Str. 2 72760 Reutlingen, Germany The administrator can be contacted at: Wolfgang Hauser Moehringer Highway 5 70563 Stuttgart, Germany MARION MOSEL: Creditors' Meeting Slated for November 17 ------------------------------------------------------- The court-appointed provisional administrator for Marion Mosel GmbH & Co. KG, Ralph Schmid, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:30 a.m. on Nov. 17. The meeting of creditors and other interested parties will be held at: The District Court Muenster Meeting Room 101 B 1st Floor Gerichtsstr. 2-6 48149 Muenster, Germany The Court will also verify the claims set out in the administrator's report at 10:15 a.m. on Dec. 15, at the same venue. Creditors have until Nov. 24 to register their claims with the court-appointed provisional administrator. The District Court of Muenster opened bankruptcy proceedings against Marion Mosel GmbH & Co. KG on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Marion Mosel GmbH & Co. KG Raiffeisenstrasse 4 48653 Coesfeld, Germany Attn: Hans-Georg Mosel, Manager Gruener Winkel 10 48653 Coesfeld, Germany The administrator can be reached at: Ralph Schmid Duelmener Str. 92 48653 Coesfeld, Germany MTH HEIZUNGSBAU: Claims Registration Ends November 17 ----------------------------------------------------- Creditors of MTH Heizungsbau und Einzelhandel fuer Sanitar- und Heizungsbedarf GmbH have until Nov. 17 to register their claims with court-appointed provisional administrator Martin Schoebe. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Munich Meeting Room 102 Infanteriestr. 5 Munich, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Munich opened bankruptcy proceedings against MTH Heizungsbau und Einzelhandel fuer Sanitar- und Heizungsbedarf GmbH on Sept. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: MTH Heizungsbau und Einzelhandel fuer Sanitar- und Heizungsbedarf GmbH Gratlspitzstr. 46 81825 Munich, Germany The administrator can be contacted at: Martin Schoebe Ainmillerstr. 11 80801 Munich, Germany Tel: 089/1893770 Fax: 089/18937750 SACHS FAHRZEUG: Exits Insolvency Zone After Management Buy-Out -------------------------------------------------------------- A management buyout completed on Nov. 3 saved Sachs Fahrzeug- und Motorentechnik GmbH, Germany's oldest motorcycle manufacturer, from insolvency, Auto Industry states. Sachs will continue operating from its existing location in Nuremberg. According to the report, the company's insolvency proceedings, initiated in June 2006, were triggered by pensions liability inherited by Hercules Werke GmbH, which Sachs acquired in the 1960s. Sachs is represented in the U.K. by distributor 3X. Headquartered in Nuremberg, Germany, Sachs Fahrzeug- und Motorentechnik GmbH -- http://www.sachsmotorcycles.co.uk/-- which succeeds Hercules Werke, makes small motorcycles and supplies small engines to third-party motorcycle makers. SFT SERVICE: Claims Registration Ends November 14 ------------------------------------------------- Creditors of SFT Service GmbH have until Nov. 14 to register their claims with court-appointed provisional administrator Joseph Albers. 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 Essen Hall 185 1st Floor Principal Establishment Gelber Bereich Zweigertstr. 52 45130 Essen, 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 Essen opened bankruptcy proceedings against SFT Service GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SFT Service GmbH Bugapark 1b 45899 Gelsenkirchen, Germany Attn: Volker Luecke, Manager Fuerstinnenstr. 83 45883 Gelsenkirchen, Germany The administrator can be contacted at: Joseph Albers Von-der-Recke-Str. 5-7 45879 Gelsenkirchen, Germany Tel: 0209/179890 Fax: +492091485096 TUI AG: Earns EUR299.4 Million for Third Quarter 2006 ----------------------------------------------------- TUI AG released its operating results for the third quarter of 2006. The company posted EUR299.4 million in net profit against EUR6.74 billion in revenues for the third quarter of 2006, compared with EUR604.3 million in net profit for against EUR6.22 billion in revenues for the same period in 2005. Tourism Earnings by tourism were supported in particular by the contribution made by the Central Europe sector with its improvement in earnings from flight operations, the Northern Europe sector, the hotel companies and the source markets Belgium and the Netherlands. Earnings grew 6.8% to EUR173 million (2005: EUR162 million) in the Central Europe sector and by 2.6% to EUR235 million (2005: EUR229 million euros) in the Northern Europe sector. As in the previous quarter, the strategy of focusing on price quality rather than volume growth proved successful again in the third quarter. The Northern Europe sector benefited from the positive business development in the Scandinavian countries and despite weaker market conditions in the U.K. from structural measures implemented during the 2005. The performance of the Western Europe sector, in contrast, did not improve in the third quarter. Restrained demand in France impacted both Nouvelles Fronti�res and the Corsair airline. The weak market environment in France was not offset by the gratifying trends in the Netherlands and Belgium. Overall, earnings by the division declined by 18.3% to EUR67 million (2005: EUR82 million) for the Western Europe sector. The destinations sector (incoming agencies and hotel companies) posted a 5.2% increase to EUR207 million in turnover in the third quarter of 2006. Earnings by the sector rose by 0.9% to EUR112 million (2005: EUR111 million). The incoming agencies recorded varying trends. At 3.99 million, the number of guests catered for in the third quarter of 2006 matched the 2005's level. The hotel companies of the Hotels & Resorts segment managed to maintain the high occupancy rates achieved in 2005. Shipping In the third quarter of 2006, the shipping division operated virtually in the same environment as in the previous quarter. In the period under review, the trend was characterized by a reduction in freight rates and high costs. The oil price- related bunker costs and charter rates remained high in all trade lanes. The growth in transport volumes in the third quarter of 2006 remained at the 2005's level. As a result, earnings dropped significantly to -EUR25 million euros (2005: EUR95 million) and included one-off expenses for the integration of CP Ships. Prospects In the 2006 summer season, which ended on Oct. 31, 2006, customer numbers were 2.4% up year-on-year at TUI Group level. Booked turnover roughly matched the 2005's level, growing 0.1%. TUI started off into the current winter season at solid growth in bookings. Tourism turnover for the winter season is 5.8% up year-on-year at Group level, with customer numbers up 11.5% year-on-year. Concerning the development of earnings (EBITA) of the individual tourism sectors, an uneven trend emerges for the 2006 financial year. The Central Europe sector is expected to see an improvement in earnings. The optimization programs already initiated will more than offset the associated one-off expenses. The restructuring programs launched in the U.K. in 2005 will have a positive effect on earnings by the Northern Europe sector. An opposite effect will be caused by the declining trend in the market observed since the summer months. The development of the Western Europe sector, in contrast, fails to meet expectations. Due to the persistent market weakness in France, the Western Europe sector will probably not generate positive earnings for the year as a whole. In August 2006, the TUI Executive Board activated a catalogue of measures in order to enhance efficiency and cut costs throughout the Group. Some individual measures are currently being scrutinized. Details on measures to be taken will be announced on Dec. 15, 2006. In shipping, the integration of CP Ships has progressed significantly faster than expected and has meanwhile almost been completed. In 2007 already, a large part of the EUR220 million in synergies expected will affect earnings. The cost of the restructuring and integration of CP Ships total around EUR100 million and will largely be incurred in the 2006 financial year. Turnover and earnings by the division will therefore be characterized by the first-time consolidation of CP Ships for a full year. Despite a so far positive development of transport volumes, the shipping division is expected to considerably undercut the high earnings level achieved in 2005. This is due to the cost of integration, the partly negative development of freight rates, in particular in Asian transports, the oil price-induced increase in bunker costs and land-based transport costs. In the light of the current external framework, it is to be expected that the one-off integration costs will result in negative earnings by the shipping division. For the overall 2006 financial year, the TUI Group expects significant turnover growth. Earnings by divisions (EBITA), in contrast, will decline year-on-year. About TUI Headquartered in Hanover, Germany, TUI AG -- http://www.tui-group.com/en-- engages in the tourism and shipping sectors. The Company's core activities are in the tourism business, focusing mainly on the markets of Central, Northern and Western Europe. TUI AG's shipping and logistics activities are contained within its Hapag-Lloyd Container Linie GmbH and CP Ships Ltd. subsidiaries. * * * As reported in the TCR-Europe on Aug. 15, Moody's Investors Service placed on review for possible downgrade the Ba2/B1 ratings of TUI AG as a result of the company's announcement that the Shipping division's full-year earnings for 2006 will be impacted by higher operating costs and lower-than-expected freight rates. The ratings affected by the review are TUI's Ba2 Corporate Family Rating, the Ba2 Senior Unsecured Long-Term ratings, and the B1 Subordinated ratings. TUI AG: Starts Winter Season with Increased Bookings ---------------------------------------------------- TUI AG has entered the 2006/2007 winter season with an increase in bookings. One week after the start of the season TUI records an increase in booked turnover on the home market of 4.3% compared with the prior-year period. The number of customers is currently rising by 9.2%. The increases in customers and turnover are both currently above the present growth in the market. In the 2006 summer season, which ended on Oct. 31, TUI Deutsch-land enjoyed a 4.4% increase in the number of customers. Booked turnover were 1.4% below the comparable figure for the previous year. Presenting the new brochures for the summer season 2007, TUI Deutschland Chief Executive Dr Volker Boettcher referred to the good quality of results on the German market despite the slight decline in booked turnover. "This reflects increased utilisation of the flight and hotel capacities managed by TUI and a lower proportion of last-minute bookings compared with the previous year," said Mr. Boettcher. "Our strategy has proved correct. Thanks to our excellent control of capacity we sold more holidays at the brochure price and thus increased the quality of results," he added. For the new summer program-mes Boettcher announced that the TUI early- booker initiative would be strengthened, long-haul and city tours would again be distinctly expanded and four new brochures would be launched. Summer 2007: Stronger Focus on Early Bookers In the coming year, TUI will focus even more strongly than before on early-booker advantages. "For the first time we will introduce an early-booker price list which will replace the all-season regular price list and which will enable holiday-makers who book early to save several hundred euros," Mr. Boettcher said. The new brochures will be available for bookings as of Nov. 10 at travel agents and on the Internet at http://tui.com/-- the early-booker price list will apply up to Feb. 14. Then the price lists will be replaced and the holiday prices will rise. "This way we are once again drawing increased attention to the advantages of booking holidays early," Mr. Boettcher said. "Customers who book early will have a full selection of products and will be financially rewarded." As an incentive for early bookers TUI will be offering XXS fixed prices for children as from EUR99 and the XXL bonus for adults which on average can save EUR110 per person. What's more, TUI has distinctly expanded the now very successfully established 60-day price advantage in particular in the self-drive segment. All the early-booker advantages can be combined with further cost-saving options. Turkey Cheaper; Spain Slightly More Expensive As expected, holiday prices in the coming summer season will develop differently according to holiday location. On average, holidays on the Balearic Islands will cost around three% more, on the Spanish mainland around 2.5% more and on the Canary Islands around 1.5% more. Holidays in Portugal (+ 1.5%) and in Germany (+ 1.7%) will be slightly more expensive, too. By contrast, holidays to Turkey and North Africa will be cheaper or show stable prices. Boettcher: "We can announce stable prices for Egypt, and holidays in Turkey will be on average three% cheaper than this year." In the winter season, there are signs that once again the trend for Spain is very stable. The Balearic Islands are currently experiencing turnover growth of 11% (customers -5.2%) and the Canary Islands an increase in turnover of 9.6% (customers +9%) compared with the prior-year season. "We are particularly pleased about the trend for the Canary Islands because most Germans spend their holidays here in the winter half-year and it is the most important destination in the winter season for TUI," explained Mr. Boettcher. Italy and Portugal are also enjoying strong demand. In the self-drive sector the trend remains positive for Germany and Austria. The long-haul destinations in Southeast Asia, Central and South America are currently experiencing over-proportional growth - reflecting the long-haul travel offensive launched by TUI a year ago. TUI is likewise highly satisfied up to now with the trend in city tours, wellness and all-inclusive holidays. TUI Deutschland Chief Executive Boettcher emphasized that the booking figures for the winter season merely represent an initial trend and that the figures will show changes over the further course of the season. In the coming summer season TUI will present altogether 48 brochures and thousands of holiday offers around the globe. The TUI brochure world has been completely revamped and divided into three sub-brands presenting classic beach holidays, holidays for vacationers who mainly want to experience the country and its people as well as premium holidays which are geared towards customers whose priority on holiday is highest quality and luxury. As part of TUI's long-haul holiday and modular initiative, the number of holidays has once again been distinctly increased for the next summer season. "This means that we now have the biggest long-haul and city tour program in the history of the TUI brand," said Mr. Boettcher. The Australia/New Zealand brochure is new with numerous bus and hire-car tours, experience and adventure tours and hotels for do-it-yourself travellers in the major cities, in the Outback and on the tropical beaches of Australia's eastern coast. Other new developments include the destination of Tibet, which TUI is offering for the first time in a combined tour with China. For families TUI is offering a family club brochure for the first time in the new summer season. "Our family clubs are a real success story and over the past three years have enjoyed above-average bookings against the market trend," TUI Deutschland Chief Executive said. The new brochure with altogether 20 clubs in the most important holiday destinations on medium-haul flight routes is geared to families who exclusively want a club holiday. About TUI Headquartered in Hanover, Germany, TUI AG -- http://www.tui-group.com/en-- engages in the tourism and shipping sectors. The Company's core activities are in the tourism business, focusing mainly on the markets of Central, Northern and Western Europe. TUI AG's shipping and logistics activities are contained within its Hapag-Lloyd Container Linie GmbH and CP Ships Ltd. subsidiaries. * * * As reported in the TCR-Europe on Aug. 15, Moody's Investors Service placed on review for possible downgrade the Ba2/B1 ratings of TUI AG as a result of the company's announcement that the Shipping division's full-year earnings for 2006 will be impacted by higher operating costs and lower-than-expected freight rates. The ratings affected by the review are TUI's Ba2 Corporate Family Rating, the Ba2 Senior Unsecured Long-Term ratings, and the B1 Subordinated ratings. TUI AG: Tourism Restructuring Prompts Moody's to Lower Ratings -------------------------------------------------------------- Moody's Investors Service downgraded the corporate family and senior unsecured long-term ratings of TUI Aktiengesellschaft to Ba3 from Ba2 ratings and the company's subordinated debt rating to B2 from B1. The downgrades reflect the company's announcement of its third- quarter results for 2006, which confirmed that full-year earnings will be impacted by higher operating costs and lower- than-expected freight rates in the shipping business and additional restructuring charges in the tourism division. The ratings remain on review for possible further downgrade. Moody's anticipates at this time that any further Corporate Family Rating change is likely to be limited to one notch given the current profile, but will revisit the level of subordination and related notching. The ratings were originally placed on review for possible downgrade on Aug. 11. The rating downgrades have been primarily prompted by the impact on the company's credit metrics of its weaker-than-expected operating performance in the shipping division and the anticipation that further restructuring charges may have to be recorded in the tourism division. "Moody's remains concerned at TUI's underlying operating performance trend and believes that the company is not in a position to achieve the target metrics we laid out when assigning the initial ratings in October 2005," said Myriam Durand, a Moody's Vice President/Senior Credit Officer. At that point Moody's expected leverage (the ratio of adjusted debt to EBITDAR) to fall over the coming years from 5.8 and retained cash flow pre-working capital to net debt to gradually improve from 10%. Moody's will seek to assess management's plan to address the current issues and will endeavor to conclude the rating review by the end of 2006. Headquartered in Hanover, Germany, TUI is Europe's largest integrated tourism group and a leading provider of container shipping services, with sales of EUR18.2 billion in 2005. WCM AG: Declares Insolvency After Debt Talks Fail ------------------------------------------------- WCM Beteiligungs- und Grundbesitz-AG has applied for insolvency on Nov. 8 as a result of the extraordinary termination of the loan agreement by HSH Nordbank AG. The intensive negotiations on the repayment of a EUR200 million loan, which had continued until Wednesday morning, were unsuccessful. HSH intends to auction the shares assigned as collateral for the loan. The company's management board has sought a temporary restraining order from the local court against HSH's realization measures within the framework of a public auction with the aim of preventing these measures. The order application is essentially substantiated on the grounds that the termination of the loan is legally ineffective from the point of view of WCM and that the loans extended are equity equivalent in nature. In the context of the currently insolvency proceeding, the court has ruled a preliminary administration of assets. Michael C. Frege, CMS Hasche Sigle Insolvenzberatung und -verwaltung GbR, Frankfurt am Main, has been instructed as preliminary insolvency administrator. As reported in the Troubled Company Reporter-Europe on Nov. 1, WCM said it would sell its majority stake in Klockner-Werke AG after failing to repay a EUR170 million loan to HSH. On Oct. 18, HSH notified WCM that it was calling in the loan originally extended to the company until July 31, 2007. HSH warned that it would auction off the latter's collateral shares in Klockner if the company fails to repay by Oct. 25. WCM had requested for the postponement of the cancellation of the loan until Jan. 31, 2007, but HSH rejected the proposal. According to Die Welt, HSH now owns WCM's shares in Klockner and hospital operator Maternus. HSH has yet to set the auction date, but a large number of private equity funds, including U.S. investment firm Cerberus, have already expressed interest in participating. Once the shares are sold, WCM would no longer have any operating activities. Klockner Group Statement The Klockner-Werke AG Management Board intends to work closely with the bankruptcy administrator appointed by the court in order to realize partial amounts of its open claims. What is more important is the alignment to a new shareholder structure as a result of the insolvency of the majority shareholder through the still planned sale of the WCM AG shareholding to Klockner-Werke AG. Within the Group, the maximum balance sheet risk resulting from amounts due from Group companies against WCM AG is around EUR80 million. A complete value adjustment of these claims would reduce Group equity from around EUR386 million to around EUR306 million. As a result, the equity ratio would move down from 48%to 43% i.e. even in the future, the Group would have a more than healthy balance sheet structure. This is shown even more clearly by the fact that the Group has no net amount due to banks. There are no further risks arising from the relationship to the majority shareholder. The Klockner Group is managed completely independently of the rest of the WCM Group. The Klockner-Werke AG Management Board has a well-founded interest in being actively involved in the selection of the new majority shareholder. It will make the company's internal documents available to the company interested in taking a participation to allow it to complete a relevant examination. Thus potential investors will have the required opportunity (due diligence) of effectively assessing making an investment in Klockner-Werke AG. As part of this process, the Klockner Management Board is open not only to interest actively expressed by companies, but also to taking up independent contact with potential investors on its own initiative. About Klockner-Werke Klockner-Werke AG is a group holding whose subsidiaries operate successfully on the world market. The focus of business operations is at KHS AG, Dortmund, and thus on the development and production of filling and packaging systems. In addition to German and international production facilities, KHS is represented on all continents with more than 60 service and sales outlets. Production takes place in Germany, the USA, Brazil, Mexico, India and China. For many years, the company has established itself as a world leader in providing filling and packaging systems for the beverages industry, and well as the food and non-food sector. Other companies in the Klockner Group produce machines and systems for processing plastic, manufacturing shoes, the confectionary industry and various robot technologies. About WCM AG Headquartered in Frankfurt, Germany, WCM Beteiligungs- und Grundbesitz-AG -- http://www.wcm.de/-- holds equity interests in other real estate investment, management, and development companies, as well as in the nursing homes and a packaging maker. The group owns 80% of Klockner-Werke AG, which also operates in Austria, Czech Republic, Denmark, France, United Kingdom, Italy, Netherlands, Spain, Switzerland, Australia, Brazil, India, Japan, Mexico, Russian Federation, Singapore, and the U.S.A. WCM has been posting consecutive annual net losses since 2002: EUR849 million in 2002; EUR315 million in 2003; EUR163 million in 2004; and EUR44 million in 2005. ============= H U N G A R Y ============= BORSODCHEM NYRT: European Commission OKs First Chemical's Offer --------------------------------------------------------------- The European Commission approved Nov. 8 First Chemical Holding Kft.'s proposed acquisition of control over BorsodChem Nyrt. and declared the transaction compatible with the common market and with the EEA Agreement. The approval came after Penzuegyi Szervezetek Allami Feluegyelete, the Hungarian financial supervisory authority, approved the same offer. PSzAF had earlier warned First Chemical to submit a copy of the supplemented buyout offer or it would cancel the approval of the buyout offer. PSzAF stressed that First Chemical must supplement its buyout offer to reflect changes to a prior agreement between the company, Vienna Capital and Kikkolux. PSzAF had suspended the buyout offer while investigating whether it violated rules regarding acquisitions. As reported in the TCR-Europe on Sept. 26, First Chemical Holding offered to acquire all outstanding shares in BorsodChem Nyrt, in behalf of the Kikkolux Group and Vienna Capital. Kikkolux had signed an option agreement with VCP and Firthlion (26.158%) and Vienna Capital Partners (21.83%) to buy all their shares at HUF3,000 apiece. If the buyout materializes, the transaction would be Permira's first in Eastern Europe, Bloomberg News relates. According to Bloomberg, Permira is looking to benefit from growing demand for plastics in Eastern Europe, whose economy grows faster than its western counterpart. About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7% higher than HUF20.5 billion in 2004. BorsodChem's net profit was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year ago. At Dec. 31, 2005, BorsodChem's balance sheet showed HUF237.9 billion in total assets, HUF98.9 billion in total liabilities and HUF139.02 billion in total equity. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. BORSODCHEM NYRT: Earns HUF4.6 Bln From January-September 2006 ------------------------------------------------------------- BorsodChem Nyrt. has released its operating results for the three quarters ended Sept. 30, 2006. BorsodChem posted HUF4.6 billion in net profit against HUF177.3 billion in revenues for the first nine months of 2006, compared with HUF10.1 billion in net profit against HUF128.4 billion in revenues for the same period in 2005. The company's third quarter sales, however, went down on quarter-on-quarter basis, mainly due to scheduled maintenance shutdown executed in the period. The company blamed the decrease in net profit to HUF4.9 billion in losses booked on foreign currency loans due to the weakening of the forint. Borsodchem attributed the rise in revenues to: -- expanded capacities; -- export-friendly exchange rates; and -- favorable market tendencies. At Sept. 30, 2006, the Company's balance sheet showed HUF287.5 billion in total assets and HUF147 billion in total liabilities, resulting in a HUF140.4 billion stockholders' equity. The Company's balance sheet also showed strained liquidity with HUF70.5 billion in total current assets available to pay HUF82.8 billion in total current liabilities. Full-text copies of the company's financial statements for the third quarter ended Sept. 30, 2006, is available for free at http://ResearchArchives.com/t/s?14d5 About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7% higher than HUF20.5 billion in 2004. BorsodChem's net profit was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year ago. At Dec. 31, 2005, BorsodChem's balance sheet showed HUF237.9 billion in total assets, HUF98.9 billion in total liabilities and HUF139.02 billion in total equity. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. ============= I R E L A N D ============= ELAN CORP: Moody's Affirms B3 Corporate Family Rating ----------------------------------------------------- Moody's Investors Service assigned a B3 rating to the proposed new senior unsecured notes of Elan Finance plc reflecting a guarantee from Elan Corporation plc and material subsidiaries. At the same time, Moody's affirmed Elan's existing ratings (B3 Corporate Family Rating) and the stable rating outlook. The last prior rating action was an outlook revision to stable from negative on June 14 following the FDA's approval of resumed marketing for Tysabri in multiple sclerosis. The new senior notes are being sold in a privately negotiated transaction without registration under the Securities Act of 1933 under circumstances reasonably designed to preclude a distribution thereof in violation of the Act. The issuance has been designed to permit resale under Rule 144A. Elan's B3 Corporate Family Rating reflects the criteria outlined in Moody's Global Pharmaceutical Rating Outlook including size and scale (where Elan maps to the "B" category), cash flow relative to debt (Caa), and cash coverage of debt ("Baa"). Elan's rate of cash use is significant, and Elan faces US$613 million of debt maturities in early 2008. Consummation of the pending debt issuance would alleviate concerns about near-term debt maturities, and would help solidify Elan's position within the B3 rating category. The rating outlook is stable. "Despite an improvement in refinancing risk, Moody's believes that the market acceptance of Tysabri remains uncertain and will be a critical factor driving any future changes in Elan's credit rating," stated Michael Levesque, Vice President and Senior Credit Officer. Upward rating pressure could result from a very successful re- launch of Tysabri, leading Moody's to conclude that Elan is on a clear path to generating positive free cash flow. Negative rating pressure could develop if Moody's believes that Elan is unlikely to achieve positive earnings and cash flow by year-end 2008. Rating assigned: Elan Finance plc * B3 fixed rate senior notes due 2013 (guaranteed by Elan Corporation, plc and subsidiaries) * B3 floating rate senior notes due 2013 (guaranteed by Elan Corporation, plc and subsidiaries) Ratings affirmed: Elan Corporation, plc * B3 corporate family rating Elan Finance plc * B3 fixed rate senior notes of US$850 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) * B3 floating rate senior notes of US$300 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) Athena Neurosciences Finance, LLC * B3 senior notes of US$613 million due 2008 (guaranteed by Elan Corporation, plc and subsidiaries) Moody's does not rate Elan's US$254 million convertible notes due 2008. Elan Corporation, plc [NYSE: ELN] is a specialty biopharmaceutical company headquartered in Dublin, Ireland, with areas of expertise in neurological and autoimmune disease, and drug delivery technology. ELAN CORP: Standard & Poor's Affirms B Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' rating to Elan Finance plc's proposed offering of US$500 million senior unsecured notes due 2013, to be issued in a combination of fixed and floating-rate notes. Elan Finance plc is a wholly owned subsidiary of Dublin, Ireland-based specialty pharmaceutical company Elan Corp. plc. The notes are guaranteed on a senior unsecured basis by Elan and all of its existing material subsidiaries. Outstanding ratings on Elan (including the 'B' corporate credit rating) and its related entities were affirmed. The ratings outlook is stable. "The ratings on Elan reflect the company's expected continued losses over the intermediate term, a currently limited product portfolio, and high reliance on Tysabri, which was only recently approved for return to the market," said Standard & Poor's credit analyst Arthur Wong. "These factors are only partially mitigated by Elan's significant cash on hand to fund operations for the next several years and its lack of significant debt maturities until 2008." Elan specializes in the development and marketing of treatments for pain, central nervous system ailments, infectious diseases, and autoimmune problems. Its key products include the multiple sclerosis (MS) treatment, Tysabri, and the anti-infectives, Maxipime and Azactam. Following the offering of the notes, Elan plans to redeem its US$254 million in 6.5% senior unsecured convertible notes due 2008. Proceeds from the proposed US$500 million senior unsecured notes offering are expected to be used to help repay a portion of the US$613 million in 7.25% senior unsecured Athena Neurosciences Finance LLC notes due in 2008. The transactions will enable Elan to conserve its still sizable cash balances. Elan will need that liquidity in order to adequately support the re-launch of Tysabri and fund continued R&D. ELAN FINANCE: Moody's Assigns B3 Rating on New Senior Notes ----------------------------------------------------------- Moody's Investors Service assigned a B3 rating to the proposed new senior unsecured notes of Elan Finance plc reflecting a guarantee from Elan Corporation, plc and material subsidiaries. At the same time, Moody's affirmed Elan's existing ratings (B3 Corporate Family Rating) and the stable rating outlook. The last prior rating action was an outlook revision to stable from negative on June 14 following the FDA's approval of resumed marketing for Tysabri in multiple sclerosis. The new senior notes are being sold in a privately negotiated transaction without registration under the Securities Act of 1933 under circumstances reasonably designed to preclude a distribution thereof in violation of the Act. The issuance has been designed to permit resale under Rule 144A. Elan's B3 Corporate Family Rating reflects the criteria outlined in Moody's Global Pharmaceutical Rating Outlook including size and scale (where Elan maps to the "B" category), cash flow relative to debt ("Caa"), and cash coverage of debt ("Baa"). Elan's rate of cash use is significant, and Elan faces US$613 million of debt maturities in early 2008. Consummation of the pending debt issuance would alleviate concerns about near-term debt maturities, and would help solidify Elan's position within the B3 rating category. The rating outlook is stable. "Despite an improvement in refinancing risk, Moody's believes that the market acceptance of Tysabri remains uncertain and will be a critical factor driving any future changes in Elan's credit rating," stated Michael Levesque, Vice President and Senior Credit Officer. Upward rating pressure could result from a very successful re- launch of Tysabri, leading Moody's to conclude that Elan is on a clear path to generating positive free cash flow. Negative rating pressure could develop if Moody's believes that Elan is unlikely to achieve positive earnings and cash flow by year-end 2008. Rating assigned: Elan Finance plc * B3 fixed rate senior notes due 2013 (guaranteed by Elan Corporation, plc and subsidiaries) * B3 floating rate senior notes due 2013 (guaranteed by Elan Corporation, plc and subsidiaries) Ratings affirmed: Elan Corporation, plc * B3 corporate family rating Elan Finance plc * B3 fixed rate senior notes of US$850 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) * B3 floating rate senior notes of US$300 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) Athena Neurosciences Finance, LLC * B3 senior notes of US$613 million due 2008 (guaranteed by Elan Corporation, plc and subsidiaries) Moody's does not rate Elan's US$254 million convertible notes due 2008. Elan Corporation, plc [NYSE: ELN] is a specialty biopharmaceutical company headquartered in Dublin, Ireland, with areas of expertise in neurological and autoimmune disease, and drug delivery technology. ELAN FINANCE: S&P Rates US$500-Mln Senior Unsecured Notes at B -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' rating to Elan Finance plc's proposed offering of US$500 million senior unsecured notes due 2013, to be issued in a combination of fixed and floating-rate notes. Elan Finance plc is a wholly owned subsidiary of Dublin, Ireland-based specialty pharmaceutical company Elan Corp. plc. The notes are guaranteed on a senior unsecured basis by Elan and all of its existing material subsidiaries. Outstanding ratings on Elan (including the 'B' corporate credit rating) and its related entities were affirmed. The ratings outlook is stable. "The ratings on Elan reflect the company's expected continued losses over the intermediate term, a currently limited product portfolio, and high reliance on Tysabri, which was only recently approved for return to the market," said Standard & Poor's credit analyst Arthur Wong. "These factors are only partially mitigated by Elan's significant cash on hand to fund operations for the next several years and its lack of significant debt maturities until 2008." Elan specializes in the development and marketing of treatments for pain, central nervous system ailments, infectious diseases, and autoimmune problems. Its key products include the multiple sclerosis (MS) treatment, Tysabri, and the anti-infectives, Maxipime and Azactam. Following the offering of the notes, Elan plans to redeem its US$254 million in 6.5% senior unsecured convertible notes due 2008. Proceeds from the proposed US$500 million senior unsecured notes offering are expected to be used to help repay a portion of the US$613 million in 7.25% senior unsecured Athena Neurosciences Finance LLC notes due in 2008. The transactions will enable Elan to conserve its still sizable cash balances. Elan will need that liquidity in order to adequately support the re-launch of Tysabri and fund continued R&D. ========= I T A L Y ========= WCM AG: Declares Insolvency After Debt Talks Fail ------------------------------------------------- WCM Beteiligungs- und Grundbesitz-AG has applied for insolvency on Nov. 8 as a result of the extraordinary termination of the loan agreement by HSH Nordbank AG. The intensive negotiations on the repayment of a EUR200 million loan, which had continued until Wednesday morning, were unsuccessful. HSH intends to auction the shares assigned as collateral for the loan. The company's management board has sought a temporary restraining order from the local court against HSH's realization measures within the framework of a public auction with the aim of preventing these measures. The order application is essentially substantiated on the grounds that the termination of the loan is legally ineffective from the point of view of WCM and that the loans extended are equity equivalent in nature. In the context of the currently insolvency proceeding, the court has ruled a preliminary administration of assets. Michael C. Frege, CMS Hasche Sigle Insolvenzberatung und -verwaltung GbR, Frankfurt am Main, has been instructed as preliminary insolvency administrator. As reported in the Troubled Company Reporter-Europe on Nov. 1, WCM said it would sell its majority stake in Klockner-Werke AG after failing to repay a EUR170 million loan to HSH. On Oct. 18, HSH notified WCM that it was calling in the loan originally extended to the company until July 31, 2007. HSH warned that it would auction off the latter's collateral shares in Klockner if the company fails to repay by Oct. 25. WCM had requested for the postponement of the cancellation of the loan until Jan. 31, 2007, but HSH rejected the proposal. According to Die Welt, HSH now owns WCM's shares in Klockner and hospital operator Maternus. HSH has yet to set the auction date, but a large number of private equity funds, including U.S. investment firm Cerberus, have already expressed interest in participating. Once the shares are sold, WCM would no longer have any operating activities. Klockner Group Statement The Klockner-Werke AG Management Board intends to work closely with the bankruptcy administrator appointed by the court in order to realize partial amounts of its open claims. What is more important is the alignment to a new shareholder structure as a result of the insolvency of the majority shareholder through the still planned sale of the WCM AG shareholding to Klockner-Werke AG. Within the Group, the maximum balance sheet risk resulting from amounts due from Group companies against WCM AG is around EUR80 million. A complete value adjustment of these claims would reduce Group equity from around EUR386 million to around EUR306 million. As a result, the equity ratio would move down from 48%to 43% i.e. even in the future, the Group would have a more than healthy balance sheet structure. This is shown even more clearly by the fact that the Group has no net amount due to banks. There are no further risks arising from the relationship to the majority shareholder. The Klockner Group is managed completely independently of the rest of the WCM Group. The Klockner-Werke AG Management Board has a well-founded interest in being actively involved in the selection of the new majority shareholder. It will make the company's internal documents available to the company interested in taking a participation to allow it to complete a relevant examination. Thus potential investors will have the required opportunity (due diligence) of effectively assessing making an investment in Klockner-Werke AG. As part of this process, the Klockner Management Board is open not only to interest actively expressed by companies, but also to taking up independent contact with potential investors on its own initiative. About Klockner-Werke Klockner-Werke AG is a group holding whose subsidiaries operate successfully on the world market. The focus of business operations is at KHS AG, Dortmund, and thus on the development and production of filling and packaging systems. In addition to German and international production facilities, KHS is represented on all continents with more than 60 service and sales outlets. Production takes place in Germany, the USA, Brazil, Mexico, India and China. For many years, the company has established itself as a world leader in providing filling and packaging systems for the beverages industry, and well as the food and non-food sector. Other companies in the Klockner Group produce machines and systems for processing plastic, manufacturing shoes, the confectionary industry and various robot technologies. About WCM AG Headquartered in Frankfurt, Germany, WCM Beteiligungs- und Grundbesitz-AG -- http://www.wcm.de/-- holds equity interests in other real estate investment, management, and development companies, as well as in the nursing homes and a packaging maker. The group owns 80% of Klockner-Werke AG, which also operates in Austria, Czech Republic, Denmark, France, United Kingdom, Italy, Netherlands, Spain, Switzerland, Australia, Brazil, India, Japan, Mexico, Russian Federation, Singapore, and the U.S.A. WCM has been posting consecutive annual net losses since 2002: EUR849 million in 2002; EUR315 million in 2003; EUR163 million in 2004; and EUR44 million in 2005. =================== K A Z A K H S T A N =================== AINA LINE: Creditors Must File Claims by Nov. 17 ------------------------------------------------ LLP Aina Line has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Aina Line Jabaev Str. 170 Petropavlovsk North Kazakhstan Region Kazakhstan BTA IPOTEKA: S&P Lifts Long-Term Counterparty Rating to BB- ----------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term counterparty credit rating on Kazakhstan-based BTA Ipoteka Mortgage Co. to 'BB-' from 'B+'. At the same time, the 'B' short-term counterparty credit rating was affirmed. Furthermore, Standard & Poor's assigned a 'kzBBB+' Kazakhstan national scale rating to the company. The outlook is stable. "The rating action reflects BTAI's longer track record of successful development, good business growth potential supported by the favorable economic environment, and renewed support from its strategic shareholder, Bank TuranAlem," said Standard & Poor's credit analyst Annette Ess. The stable outlook reflects the rating agency's expectation that BTAI would maintain its strong market position in the Kazakhstan mortgage market, and that its parent would continue to support it in terms of capital and funding. "The ratings could be raised if BTAI demonstrates a significant increase in capitalization and notable profitability improvements," added Ms. Ess. The ratings could be lowered in case of major deterioration of asset quality or capitalization, or if the links with BTA weaken. BYTOVIK-SEVER LLP: Creditors Must File Claims by Nov. 17 -------------------------------------------------------- LLP Bytovik-Sever has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Bytovik-Sever Mir Str. 270a Petropavlovsk North Kazakhstan Region Kazakhstan DORSNABREGION LLP: Aktube Court Starts Bankruptcy Procedure ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube Region commenced bankruptcy proceeding against LLP Dorsnabregion on Oct. 9. ENERGOPROMSERVICE & K: Court Opens Bankruptcy Proceedings --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Energo Industrial Service & K Energopromservice & K (RNN 600700216935) on Oct. 9. ESBE COMPANY: Proof of Claim Deadline Slated for Nov. 17 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Esbe Company insolvent. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Esbe Company Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan EURASIAN BANK: S&P Assigns B/B Counterparty Credit Ratings ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B/B' long- and short-term counterparty credit ratings to Kazakhstan-based JSC Eurasian Bank. At the same time, it assigned its 'kzBB+' Kazakhstan national scale rating to the bank. The outlook is stable. The ratings on Eurasian Bank reflect: -- its modest customer franchise, -- short track record of the new strategy, -- rapid loan growth, and -- limited financial flexibility in the high-risk economic environment of the Republic of Kazakhstan. "Positive rating factors include its wealthy and supportive shareholders, diversifying customer base, good profitability, adequate capitalization, and reduction of individual loan concentrations," said Standard & Poor's credit analyst Annette Ess. The stable outlook reflects the rating agency's expectations that the bank will benefit from the development of the financial sector in Kazakhstan, supported by the country's good economic prospects, and that the new management team will be successful in implementing its strategy. "A positive rating action will depend on further development of the bank's franchise, improvements in capitalization, profitability, and funding diversification," added Ms. Ess. Ratings could be pressured downward by: -- an inability to manage rapid asset growth, -- deterioration in asset-quality indicators, -- reduced capitalization, and -- a significant decline in profitability. FORTUNA-TRANSIT: Proof of Claim Deadline Slated for Nov. 17 ----------------------------------------------------------- LLP Fortuna-Transit has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Fortuna-Transit Vozvyshenka Jumabaev District North Kazakhstan Region Kazakhstan HELIN LLP: Almaty Court Begins Bankruptcy Proceedings ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Helin (RNN 600400243315) on Sept. 26. KAZ DRAG: Claims Filing Period Ends Nov. 17 ------------------------------------------- LLP Kaz Drag Metal Suvenir Reklama has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Suvenir Reklama Akjayik Str. 13-45 Saryarka District Astana, Kazakhstan MONETA DETERGENTS: Court Commences Bankruptcy Proceedings --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region commenced bankruptcy proceedings against LLP Moneta Detergents (RNN 301400001328). LLP Moneta Detergents is located at: Promzona Str. 1 Shahtinsk Karaganda Region Kazakhstan NUR-ELEM LTD: Claims Filing Period Ends Nov. 17 ----------------------------------------------- LLP Nur-Elem Ltd. has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Nur-Elem Ltd. Dubinin Side Street 7 Almaty District Astana, Kazakhstan OMEGA SOFT: Claims Filing Period Ends Nov. 17 --------------------------------------------- LLP Omega Soft has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Omega Soft Auezov Str. 41-26 Astana, Kazakhstan OST BUSINESS: Creditors' Claims Due Nov. 17 ------------------------------------------- LLP Independent Audit Company Ost Business has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Ost Business Ushanov Str. 71a Office 405 East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-39-72 OTRAR JSC: Creditors Must File Claims by Nov. 19 ------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared JSC Otrar insolvent on Aug. 18. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Nov. 19 to submit written proofs of claim to: JSC Otrar Frunze Str. 52-52 Zyrianovsk East Kazakhstan Region Kazakhstan Tel: 8 (323-35) 4-02-83 Fax: 8 (323-35) 4-01-07 PETROLINE LLP: Claims Registration Ends Nov. 17 ----------------------------------------------- LLP Petroline has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Petroline Micro District Aksai 1, 7-3 Almaty, Kazakhstan Tel: 8 (3272) 56-92-90 REAL INVEST: Claims Registration Ends Nov. 17 --------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Real Invest Plus insolvent. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Real Invest Plus Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan SALINO TRADE: Creditors' Claims Due Nov. 17 ------------------------------------------- LLP Salino Trade has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Salino Trade Lenin Str. 43-21 Karaganda Region Kazakhstan ST-PRODUCTS LLP: Claims Filing Period Ends Nov. 17 -------------------------------------------------- LLP ST-Products has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP ST-Products Office 25 Klochkov Str. 123 Almaty, Kazakhstan SPETSKOMSERVICE UK: Court Opens Bankruptcy Proceedings ------------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan Region commenced bankruptcy proceeding against LLP Spetskomservice UK on Sept. 12. VK STROY: Claims Registration Ends Nov. 17 ------------------------------------------ LLP Construction Company VK Stroy Centre has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP VK Stroy Centre Bajov Str. 306 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan =================== K Y R G Y Z S T A N =================== GREEN FOREST: Proof of Claim Deadline Slated for Dec. 22 -------------------------------------------------------- LLC Green Forest has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: LLC Green Forest Karagachevaya rosha, 5-5 Bishkek, Kyrgyzstan Tel: (+996 312) 67-91-72 MERIDIAN LTD: Claims Filing Period Ends Dec. 22 ----------------------------------------------- Joint Kyrgyz-German Enterprise Meridian Ltd. has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 65-73-39. ===================== N E T H E R L A N D S ===================== GREEN PARK: S&P Rates EUR12.9-Million Class E Notes at BB --------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the senior secured floating-rate notes to be issued by Green Park CDO B.V., a special purpose entity. The collateral comprises senior leveraged loans, mezzanine loans, second-lien loans, and high-yield bonds. The investment manager is Blackstone Debt Advisors L.P. This is the 10th Standard & Poor's rated CLO transaction managed by Blackstone, following Regent's Park CDO B.V. (mainly European senior secured loans and mezzanine debt), which closed in October 2006. This is Blackstone's third European CLO transaction. The quality of the portfolio will be closely monitored throughout the reinvestment period by par value tests and interest-coverage tests. Failure of these tests will cause a diversion of interest proceeds to pay down the notes sequentially, until the failure is cured. RATINGS LIST Green Park CDO B.V. EUR408 Million Senior Secured Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ A AAA 283.7 B AA 21.6 C A 24.5 D BBB- 25.3 E BB 12.9 M NR 40.0 NR-Not rated. =========== P O L A N D =========== BORSODCHEM NYRT: European Commission OKs First Chemical's Offer --------------------------------------------------------------- The European Commission approved Nov. 8 First Chemical Holding Kft.'s proposed acquisition of control over BorsodChem Nyrt. and declared the transaction compatible with the common market and with the EEA Agreement. The approval came after Penzuegyi Szervezetek Allami Feluegyelete, the Hungarian financial supervisory authority, approved the same offer. PSzAF had earlier warned First Chemical to submit a copy of the supplemented buyout offer or it would cancel the approval of the buyout offer. PSzAF stressed that First Chemical must supplement its buyout offer to reflect changes to a prior agreement between the company, Vienna Capital and Kikkolux. PSzAF had suspended the buyout offer while investigating whether it violated rules regarding acquisitions. As reported in the TCR-Europe on Sept. 26, First Chemical Holding offered to acquire all outstanding shares in BorsodChem Nyrt, in behalf of the Kikkolux Group and Vienna Capital. Kikkolux had signed an option agreement with VCP and Firthlion (26.158%) and Vienna Capital Partners (21.83%) to buy all their shares at HUF3,000 apiece. If the buyout materializes, the transaction would be Permira's first in Eastern Europe, Bloomberg News relates. According to Bloomberg, Permira is looking to benefit from growing demand for plastics in Eastern Europe, whose economy grows faster than its western counterpart. About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7% higher than HUF20.5 billion in 2004. BorsodChem's net profit was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year ago. At Dec. 31, 2005, BorsodChem's balance sheet showed HUF237.9 billion in total assets, HUF98.9 billion in total liabilities and HUF139.02 billion in total equity. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. BORSODCHEM NYRT: Earns HUF4.6 Bln From January-September 2006 ------------------------------------------------------------- BorsodChem Nyrt. has released its operating results for the three quarters ended Sept. 30, 2006. BorsodChem posted HUF4.6 billion in net profit against HUF177.3 billion in revenues for the first nine months of 2006, compared with HUF10.1 billion in net profit against HUF128.4 billion in revenues for the same period in 2005. The company's third quarter sales, however, went down on quarter-on-quarter basis, mainly due to scheduled maintenance shutdown executed in the period. The company blamed the decrease in net profit to HUF4.9 billion in losses booked on foreign currency loans due to the weakening of the forint. Borsodchem attributed the rise in revenues to: -- expanded capacities; -- export-friendly exchange rates; and -- favorable market tendencies. About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7% higher than HUF20.5 billion in 2004. BorsodChem's net profit was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year ago. At Dec. 31, 2005, BorsodChem's balance sheet showed HUF237.9 billion in total assets, HUF98.9 billion in total liabilities and HUF139.02 billion in total equity. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. =========== R U S S I A =========== AGRO-IMPEKS CJSC: Court Names I. Maslov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Orel Region appointed Mr. I. Maslov as Insolvency Manager for CJSC Agro-Impeks. He can be reached at: I. Maslov 8th Floor Leskova Str. 19A 302027 Orel Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A48-2105/06-20b. The Arbitration Court of Orel Region is located at: Gorkogo Str. 42 302000 Orel Region Russia The Debtor can be reached at: CJSC Agro-Impeks Ivanovskoye 303126 Orel Region Russia ARKTIK-TRANS-GAS-STROY: Court Names A. Skilov to Manage Assets -------------------------------------------------------------- The Arbitration Court of Tyumen Region appointed Mr. A. Skilov as Insolvency Manager for OJSC Auto Transport Enterprise 4 Arktik-Trans-Gas-Story. He can be reached at: A. Skilov 127a Kedrovaya Tyumen Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A70-7051/3-06. The Arbitration Court of Tyumen Region is located at: Khokhryakova Str. 77 627000 Tyumen Region Russia The Debtor can be reached at: OJSC Auto Transport Enterprise 4 Arktik-Trans-Gas- Stroy Levoberezhnaya 39 Tobolsk Region Russia BASHKIRSKIY CLOTH: Court Names I. Khayrullin to Manage Assets ------------------------------------------------------------- The Arbitration Court of Bashkortostan Republic appointed Mr. I. Khayrullin as Insolvency Manager for OJSC Bashkirskiy Cloth Factory (TIN 0269007235). He can be reached at: I. Khayrullin Lenina Str. 56a Nizhnetroitskiy Tuymazinskiy Region 452784 Bashkortostan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-2970/06-G-KhRM. The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: OJSC Bashkirskiy Cloth Factory Lenina Str. 56a Nizhnetroitskiy Tuymazinskiy Region 452784 Bashkortostan Republic Russia BUILDER-2 OJSC: Perm Bankruptcy Hearing Slated for January 26 ------------------------------------------------------------- The Arbitration Court of Perm region will convene at 10:00 a.m. on Jan. 26, 2007, to hear the bankruptcy supervision procedure on OJSC Builder-2. The case is docketed under Case No. A50-15482/2006-B. The Temporary Insolvency Manager is: A. Nudelman Office 6 Uinskaya Str. 1b 614051 Perm Region Russia The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: OJSC Builder-2 Sovetskaya Str. 7 618300 Kizel Region Russia CENTERTELECOM OAO: Earns RUR1.9 Bln for First Nine Months 2006 -------------------------------------------------------------- OAO CenterTelecom released its financial results for the nine months ended Sept. 30, 2006, prepared according to Russian Accounting Standards. CenterTelecom posted RUR1.9 billion in net profit against RUR20.53 billion in revenues for the first nine months of 2006, compared with RUR548 million in net profit against RUR20 billion in revenues for the same period in 2005. "Now we can say that the steps made by the top management towards optimization of commercial, investment and financial activities of the company for nine months of this year have started to give really positive results, which are proved by the specific figures," Sergei Pridantsev, General Director of CenterTelecom, said. "We are satisfied with the results and looking into the future with optimism" About CenterTelecom OAO CenterTelecom -- http://www.centertelecom.ru/eng-- provides fixed-line and mobile communications in the Russian Central Federal District. CenterTelecom had a charter capital of RUR6.31 billion (about US$234 million) as of July 1, 2006. The company's shares are listed on the Russian Trading System stock exchange and the Moscow Inter-Bank Currency Exchange, and its Level-1 American Depositary Receipts circulate on the U.S. over-the-counter market and the Berlin and Frankfurt stock exchanges. * * * As reported in the TCR-Europe on Oct. 20, Fitch Ratings changed OAO Centertelecom's Outlook to Positive from Stable. Its ratings are affirmed at Issuer Default B- and Short-term B. CT's National Long-term rating is affirmed at BB+. The Outlook on the National Long-term rating has been changed to Positive from Stable. Fitch has also assigned a BB+ rating to CT's RUB3 billion bond with a maturity in August 2011. Standard & Poor's Ratings Services also raised its long-term corporate credit rating on CenterTelecom to B from B- (with stable outlook) as well as its long-term Russian national scale rating to ruBBB+ from ruBBB-. CENTERTELECOM OAO: Avails of US$115 Million Long-Term Financing --------------------------------------------------------------- OAO CenterTelecom reveals the closure of the deal in which it raised US$115 million of financing for the period of four years. Deutsche Bank acted as the lead-manager of the deal. A significant portion of the borrowing amount is to be placed in the form of Credit-Linked Notes. In line with CenterTelecom's Financial Strategy approved by the Company's Board of Directors, raised funds will be used to restructure and refinance CenterTelecom's existing debt. This type of financing enables the Company to significantly reduce its cost of debt and optimize its debt structure by balancing short-term and medium-term principal debt repayments. "Placement of CLNs is an important milestone in CenterTelecom's credit history on international capital markets that should improve the Company's investment profile and increase international investors and creditors interest towards CenterTelecom," Alexander Lutsky, Chief Financial Officer, said. About CenterTelecom OAO CenterTelecom -- http://www.centertelecom.ru/eng-- provides fixed-line and mobile communications in the Russian Central Federal District. CenterTelecom had a charter capital of RUR6.31 billion (about US$234 million) as of July 1, 2006. The company's shares are listed on the Russian Trading System stock exchange and the Moscow Inter-Bank Currency Exchange, and its Level-1 American Depositary Receipts circulate on the U.S. over-the-counter market and the Berlin and Frankfurt stock exchanges. * * * As reported in the TCR-Europe on Oct. 20, Fitch Ratings changed OAO Centertelecom's Outlook to Positive from Stable. Its ratings are affirmed at Issuer Default B- and Short-term B. CT's National Long-term rating is affirmed at BB+. The Outlook on the National Long-term rating has been changed to Positive from Stable. Fitch has also assigned a BB+ rating to CT's RUB3 billion bond with a maturity in August 2011. Standard & Poor's Ratings Services also raised its long-term corporate credit rating on CenterTelecom to B from B- (with stable outlook) as well as its long-term Russian national scale rating to ruBBB+ from ruBBB-. CENTERTELECOM OAO: Unveils Financial Strategy for 2006-2009 ----------------------------------------------------------- OAO CenterTelecom reveals key highlights of the Company's new Financial Strategy for 2006-2009. The key task of the Financial Strategy is to reduce CenterTelecom's debt burden and bring down the cost of debt servicing. By mid-2006 CenterTelecom's financial position was characterized by substantial debt load, inefficient debt structure and high interest rates on most of the loans. This situation was a result of low operational efficiency that could not generate cash flows sufficient to finance the Company's capital expenditure. This led to continuous growth in debt levels. The Financial Strategy developed by CenterTelecom's management provides for a comprehensive set of measures aimed at improvement of the Company's financial standing. These measures include: -- lowering operating expenses and improving operational efficiency; -- optimizing capital expenditures to increase cash flows for debt repayment; RUR 7.4 billion of existing debt to be repaid from operating cash in flows in 2006-2009; -- restructuring expensive debt by attracting new financing at lower interest rates; and -- optimizing debt structure in terms of currency, type and tenor. The management's estimates of the results of the Financial Strategy implementation are: -- 2009 EBITDA* margin at around 34% compared to 26% in 2005; -- annual CapEx of RUR4-6 billion in 2006-2009; -- 2009 CapEx/EBITDA of 0.49 versus 0.74 in 2005; -- 2009 Net debt/EBITDA of no more than 1.7 compared to 3.36 in 2005; -- 2009 weighted average debt duration of 2.5 years versus 1.7 years at the end of 2005. "New strategy aimed at introduction of strict cost controls, optimization of capital expenditures and implementation of balanced borrowing policy will enable the Company to significantly reduce its debt burden, achieve financial stability and strengthen market positions," Sergey Pridantsev, Chief executive, said. About CenterTelecom OAO CenterTelecom -- http://www.centertelecom.ru/eng-- provides fixed-line and mobile communications in the Russian Central Federal District. CenterTelecom had a charter capital of RUR6.31 billion (about US$234 million) as of July 1, 2006. The company's shares are listed on the Russian Trading System stock exchange and the Moscow Inter-Bank Currency Exchange, and its Level-1 American Depositary Receipts circulate on the U.S. over-the-counter market and the Berlin and Frankfurt stock exchanges. * * * As reported in the TCR-Europe on Oct. 20, Fitch Ratings changed OAO Centertelecom's Outlook to Positive from Stable. Its ratings are affirmed at Issuer Default B- and Short-term B. CT's National Long-term rating is affirmed at BB+. The Outlook on the National Long-term rating has been changed to Positive from Stable. Fitch has also assigned a BB+ rating to CT's RUB3 billion bond with a maturity in August 2011. Standard & Poor's Ratings Services also raised its long-term corporate credit rating on CenterTelecom to B from B- (with stable outlook) as well as its long-term Russian national scale rating to ruBBB+ from ruBBB-. DIAMOND CJSC: Moscow Court Names I. Gorn as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. I. Gorn as Insolvency Manager for CJSC Diamond. He can be reached at: I. Gorn Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-48619/06-44-1068B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Diamond Apartment 61 Samarkandskiy Avenue 13 Moscow Region Russia ENERGY CJSC: Court Names O. Syskov as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Khabarovsk Region appointed Mr. O. Syskov as Insolvency Manager for CJSC Energy (TIN 2710000993). He can be reached at: O. Syskov Dzerzhinskogo Str. 28 680000 Khabarovsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A73-8773/2006-38. The Debtor can be reached at: CJSC Energy Nagornaya Str. 5-40 Chegdomyn Verkhnebureinskiy Region Khabarovsk Region Russia FURNITURE OJSC: Court Names N. Kazharov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Kabardino Balkariya Republic appointed Mr. N. Kazharov as Insolvency Manager for OJSC Furniture. He can be reached at: N. Kazharov Gogolya Str. 26 Nalchik Kabardino Balkariya Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A20-1359/06. The Debtor can be reached at: N. Kazharov Gogolya Str. 26 Nalchik Kabardino Balkariya Republic Russia GOLDEN TELECOM: Commences Rebranding; Awareness Survey to Follow ---------------------------------------------------------------- Golden Telecom Inc. discloses of the first results of the re- branding campaign launched in October to support its strategy of launching new products to the retail market. During October 2006, Golden Telecom staged several events, including press conferences, massive indoor and outdoor advertisement campaigns and active media campaign to promote its new image. These activities are part of the Company's strategy of launching new products and services for the mass-market, including wireless broadband Internet access, voice over IP services and domestic and international calls. The re-branding campaign in Moscow and the regions is the first step in the strategy implementation. In particular, Company's re-branding includes the development and promotion of the new brand platform, which will tie in the corporate brand with brands of different products and services designed for various customer segments. This strategic shift towards mass market and emergence of a new target audience lead the Company to change the emotional message carried by its image. Golden Telecom's logotype now conveys the openness, friendliness and modernity of the Company. The new logo of Golden Telecom consists of two figures colored in orange, yellow and white and includes the new corporate slogan "Achieve more." The combined logotype should increase brand recognition. The logo will be used to identify products and services offered by Golden Telecom on different market segments. The different forms and colors of the logo parts demonstrate to our customers the variety of the Company's products and services, while keeping them under the "Golden" umbrella. The first results of the campaign have been very positive. The media, both public and professional, noticed effectiveness of the new image, good timing and professional execution of the media campaign. Golden Telecom plans to conduct a brand awareness survey in the coming months. "We are changing in order to reflect in a better way those positive changes that are taking place in our company and that aim to distinguish our company from the competitors on the telecommunications services market," Jean-Pierre Vandromme, Chief Executive Officer of Golden Telecom, commented. "For a long time, Golden Telecom has been the best telecommunications company on the business market due to the fact that we provide top-quality, convenient and highly needed products and services. It is time to enter the mass market as well. We are here in order to provide people with high-quality and affordable services helping people communicate, exchange knowledge and experience, enjoy life and keep in contact with each other in our modern world." About Golden Telecom Golden Telecom, Inc. -- http://www.goldentelecom.com/-- provides integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States. The Company offers voice, data and Internet services to corporations, operators and consumers using its overlay network in major cities including Moscow, Kiev, St. Petersburg, Nizhniy Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via intercity fiber optic and satellite-based networks, including around 287 combined access points in Russia and other countries of the CIS. The Company offers cellular communication services in Kiev and Odessa, Ukraine. * * * As reported in the TCR-Europe on Oct. 16, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Golden Telecom Inc., to 'BB' from 'BB-', reflecting the company's strengthened business profile and prudent financial risk management. S&P said the outlook is stable. "The upgrade reflects the company's strengthened business profile, with strong market shares and a leading consolidator position in Russia's corporate fixed-line market," said Standard & Poor's credit analyst Lorenzo Sliusarev. GOOSE FACTORY: Orel Bankruptcy Hearing Slated for December 6 ------------------------------------------------------------ The Arbitration Court of Orel Region will convene at 3:00 p.m. on Dec. 6 to hear the bankruptcy supervision procedure on OJSC Goose Factory of Orel Marshy Woodlands. The case is docketed under Case No. A48-3615/06-16b. The Temporary Insolvency Manager is: N. Postnikov Post User Box 94 302025 Orel Region Russia The Arbitration Court of Orel Region is located at: Gorkogo Str. 42 302000 Orel Region Russia The Debtor can be reached at: OJSC Goose Factory of Orel Marshy Woodlands Zhudre Khotynetskiy Region Orel Region Russia GORKOVSKOYE: Omsk Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------------- The Arbitration Court of Omsk Region commenced bankruptcy supervision procedure on LLC Building Assembly Enterprise Gorkovskoye. The case is docketed under Case No. A46-11861/ 2006. The Temporary Insolvency Manager is: A. Budelev 5th Kordnaya Str. 65 B 644018 Omsk Region Russia The Debtor can be reached at: LLC Building Assembly Enterprise Gorkovskoye Landika Str. 27 Gorkovskoye 646600 Omsk Region Russia HARVEST CJSC: Court Names M. Sorokin as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. M. Sorokin as Insolvency Manager for CJSC Harvest. He can be reached at: M. Sorokin Orlovskiy Per. 5.3 129110 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-32079/06-44-318B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: M. Sorokin Orlovskiy Per. 5.3 129110 Moscow Region Russia INDUSTRY OIL: Moscow Court Names I. Gorn as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. I. Gorn as Insolvency Manager for LLC Industry Oil. He can be reached at: I. Gorn Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-50710/06-38-1010B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: LLC Industry Oil Building 1 Dmitrovskiy Proezd 4 Moscow Region Russia IREMEL' OJSC: Court Starts Bankruptcy Supervision Procedure ----------------------------------------------------------- The Arbitration Court of Bashkortostan Republic commenced bankruptcy supervision procedure on OJSC Horse Sport Complex Iremel' (TIN 0270013811). The case is docketed under Case No. A07-19548/06-G-GRA. The Temporary Insolvency Manager is: I. Irmikimov Leninskogo Komsomola Str. 16 Uchaly 453700 Bashkortostan Republic Russia The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: OJSC Horse Sport Complex Iremel' Neftyanikov Str. 6 Uchaly Bashkortostan Republic Russia ISTOCHNIK CJSC: Novosibirsk Court Hearing Slated for Feb. 14 ------------------------------------------------------------ The Arbitration Court of Novosibirsk Region will convene at 9:30 a.m. on Feb. 14, 2007, to hear the bankruptcy supervision procedure on CJSC Istochnik. The case is docketed under Case No. A45-16648/06-10/340. The Temporary Insolvency Manager is: V. Trostenetskaya Post User Box 69 630004 Novosibirsk Region Russia The Arbitration Court of Sakhalin Region is located at: 693020 Novosibirsk Region Russia The Debtor can be reached at: CJSC Istochnik Severnaya Str. 4 Novosibirsk Region Russia KHASAVYURTOVSKIY MEAT: Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Arbitration Court of Dagestan Republic commenced bankruptcy supervision procedure on State Unitary Enterprise Khasavyurtovskiy Meat Combine. The case is docketed under Case No. A15-724/2005. The Temporary Insolvency Manager is: G. Murtazaev 3rd floor Umakhanova Str. 12 Makhachkala Dagestan Republic Russia The Debtor can be reached at: State Unitary Enterprise Khasavyurtovskiy Meat Combine Korkmasova Str. 3 Khasavyurt Dagestan Republic Russia NOVATEK OAO: Wins Sustainable Development Award ----------------------------------------------- OAO Novatek was among the winners in the Russian "National Environmental Prize" contest in which it was nominated and received an award for "Contributions to Sustainable Development." The "National Environmental Prize" is sponsored by the State Duma of the Russian Federation's Environmental Committee and the Vernadsky Fund, a non-governmental environmental organization, and is the only official award in Russia recognizing the social and environmental contributions made by Russian companies. Novatek's award was based on the results of its 2004-2005 Sustainability Report, prepared in accordance with the principles and recommendations of the Global Reporting Initiative (GRI) and independently certified by Societe General Vostok. The report's main purpose was to establish a dialogue with all interested parties concerning the effectiveness of the Company's environmental and social policies in a transparent forum and to highlight Novatek's orientation to global standards and practices of sustainable development. The report contains information on the activities of the Company, including; -- financial efficiency, -- socio-economic activities, -- environmental protection activities, and -- industrial and employee safety. Novatek is also in the process of implementing an environmental health and safety management system for all of its operating subsidiaries in accordance with the International Organization for Standardization (ISO) 14001 and the Occupational Health and Safety Advisory Services (OHSAS) 18001 guidelines. The first of Novatek's subsidiaries to receive certification was OOO Yurkharovneftegas. Novatek plans to continue increasing the effectiveness of its environmental and social policies based on the fundamental principal that the current generation has a responsibility to protect and improve environmental and social conditions for future generations. About Novatek Headquartered in Moscow, OAO Novatek (RTS: NVTK; LSE: NVTK; NASDAQ: NVATY) is Russia's second largest gas company after state-controlled Gazprom, and the largest of the country's independent gas producers. For the first half of 2006, Novatek posted RUR7.2 billion in net profit on RUR23.5 billion in revenues, compared to RUR7.9 billion in net profit on RUR17.4 billion in revenues for the same period in 2005. As of June 30, 2006, OAO Novatek had RU80.5 billion in total assets, RUR17.2 billion in total liabilities and RUR63.3 billion in total equity. * * * As reported in the TCR-Europe on March 21, Standard & Poor's Services assigned its 'BB-' long-term corporate credit rating to OAO Novatek, Russia's largest independent gas producer. S&P said the outlook is stable. TNK-BP HOLDING: Tackles Kovykta Gas Haulage Routes with NGOs ------------------------------------------------------------ TNK-BP held a round table meeting in Moscow on Nov. 1, focused on environmental issues related to potential routes for Kovykta gas transportation as well as preparation of independent studies aimed at examining and assessing various Kovykta gas transport options -- those already considered by TNK-BP and other potential alternatives -- taking into account socio-economic risks and investment efficiency. Participants include: -- TNK-BP, -- BP, -- RUSIA Petroleum, -- FRECOM, -- Stroitransgaz -- World Wildlife Fund (WWF) Russia, -- Greenpeace Russia, -- International Socioeconomic Union, -- Ecocenter Zapovedniki, -- Non-Commercial Partnership Transparent World, -- The Conservation Center, -- Russia's Birds Protection Union, -- Green Patrol, -- Baikal Environmental Wave, and -- Buryatia Regional Association on Baikal. The NGO's stated their belief that this work might serve as a basis for reasoned discussions of issues related to development of the new East Siberian oil-and-gas province involving producers, consumers and community leaders. NGO representatives mentioned the relatively high level of information transparency during the project design stage, as well as TNK-BP's intention to increase the quality of Kovykta project environmental support through comprehensive analysis of social and environmental risks. At the same time, ecologists voiced a number of concerns regarding the technical side of the project implementation. In their opinion, independent public monitoring could help reduce the probability of these concerns in the future. The participants agreed that the round table would be the first in a series of future meetings that will allow TNK-BP to inform NGO's of its plans and current activities. Such meetings will also help environmental organizations to implement public monitoring activities thus ensuring that all East-Siberian projects implemented by TNK-BP, meet environmental requirements at all project stages. About TNK-BP Headquartered Moscow, Russia, TNK-BP Holding OAO -- http://www.tnk-bp.com/-- operates six refineries in Russia and Ukraine, and markets products through 2,100 retail service stations operating under TNK and BP brand. TNK owns 56.5% of TNK-BP Holding, and Onako and Sidanco hold 6.8% and 30.9%, respectively. The other 5.8% belongs to TNK-BP shareholders. TNK-BP holds a strategic position as the second largest liquids producer in the Russian intergraded operating environment, accounting for around 18% of Russia's total crude oil production. * * * Standard & Poor's assigned BB+/Stable foreign currency local currency ratings to TNK-BP on June 30, 2006. Moody's assigned Ba2/Positive foreign currency rating to the company on Jan. 24, 2006. Fitch assigned BB+/Positive foreign currency rating to TNK-BP on Feb. 13, 2006, and BB+/Positive local currency rating on Aug. 24, 2005. VIMPEL-COMMUNICATIONS: Armenia Offers 10% Stake in Armentel ----------------------------------------------------------- The Armenian government is selling its 10% stake in CJSC Armenia Telephone Company to OJSC Vimpel-Communications, RIA Novosti reports citing Communications Minister Andranik Manukyan as saying. A sale, however, hinges on the condition that Vimpelcom discard further expansion plans in the country, Mr. Manukyan added. As reported in the TCR-Europe on Nov. 7, Vimpelcom will acquire Hellenic Telecommunications Organization's 90% stake in Armentel for EUR341.9 million. Vimpelcom will also absorb Armentel's EUR40 million in liabilities. Vimpelcom bested fellow bidders MTC, ETISALAT, VTEL Holdings and Knightsbridge Associates in a tender launched by OTE. The acquisition is subject to approval by the Armenian government, which holds a 10% stake in Armentel. Vimplcom expects to complete the deal by yearend. Armentel, which provides a wide range of integrated products and services for business and residential customers in Armenia, controls 40% of the Armenian telecommunications market, operating in the GSM 900 and CDMA standards. Armentel serves around 600,000 fixed-line and 400,000 mobile service subscribers. About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * As reported in the TCR-Europe on Oct. 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based mobile telecommunications operator Vimpel- Communications (JSC) to 'BB+' from 'BB', reflecting the company's continuing strong performance. S&P said the outlook is stable. VNESHTORGBANK: Fitch Puts BB Local Currency IDR to VTB Armenia -------------------------------------------------------------- Fitch Ratings assigned VTB Bank (Armenia) local currency ratings of Issuer Default BB and Short-term B. The Outlook is Stable. The assigned ratings are aligned with the bank's foreign currency Issuer Default BB and Short-term B ratings. The local currency ratings reflect the moderate probability of support being forthcoming, if required, from VTBA's majority shareholder, Russia's Vneshtorgbank, but also take into account Armenian country risks. VTBA is Armenia's fourth largest bank with 10% of the banking system's loans and retail deposits at end-H106. VTB acquired a 70% stake in March 2004. VTBA (formerly known as Armsberbank) has a long history of operations in Armenia and traces its origin to a branch of Sberbank of the USSR, established in 1923. The bank services both corporate and retail clients, supported by an extensive branch network consisting of 100 branches located all over the country. ========= S P A I N ========= GENERAL CABLE: To Issue US$315-Million Senior Convertible Notes ---------------------------------------------------------------- General Cable Corp. has entered into an agreement to sell US$315 million in aggregate principal amount of its 0.875% Senior Convertible Notes due 2013. In addition, the Company has granted to the underwriters an option to purchase up to an additional US$40 million in principal amount of Senior Convertible Notes on the same terms and conditions as those sold in this offering. The Senior Convertible Notes will be convertible into General Cable Corporation common stock at a conversion rate of 19.856 shares per US$1,000 principal amount of Senior Convertible Notes. This conversion is equivalent to an initial conversion price of around US$50.36 per share. This represents a 27.5% premium to US$39.50 per share, which was the last reported sale price of General Cable Corporation's common stock on the New York Stock Exchange. Prior to Oct. 15, 2013, holders may convert their Senior Convertible Notes under certain circumstances. On and after Oct. 15, 2013, the notes will be convertible at any time prior to the close of business on the business day before the stated maturity date of the notes. Upon conversion of a note, if the conversion value is US$1,000 or less, holders will receive an amount in cash in lieu of common stock equal to the lesser of US$1,000 or the conversion value of the number of shares of common stock equal to the conversion rate. If the conversion value exceeds US$1,000, in addition to this cash payment, holders will receive, at General Cable Corporation's election, cash or common stock or a combination of cash and common stock for the excess amount. General Cable Corporation expects to use the net proceeds from this offering to repay outstanding amounts of principal and interest under its senior secured credit facility as well as to pay the net cost of separate convertible note hedge and warrant transactions entered into in connection with this offering. The convertible note hedge transactions are intended to offset potential dilution to the Company's common stock upon potential future conversion of the notes. The warrants will have an exercise price that is US$76.00, or 92.4% higher than the closing price of the Company's common stock. The Company also expects to use the net proceeds of this transaction for general corporate purposes, which may include funding internal growth or potential acquisitions. Merrill Lynch & Co. and Credit Suisse are acting as the lead underwriters in this offering. About General Cable Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. The company also operates in Turkey, Spain, Norway, China, Australia, New Zealand, Brazil, Angola, Dominican Republic, Mexico, and Canada. * * * As reported in the Troubled Company Reporter on Oct. 27, Moody's Investors Service's, in implementation of its new Probability- of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, confirmed the B1 Corporate Family Rating for General Cable Corporation, as well as the B2 rating on the company's US$285 million 9.5% senior unsecured notes due 2010. Those debentures were assigned an LGD4 rating suggesting that creditors will experience a 70% loss in the event of a default. As reported in the Troubled Company Reporter on Jan. 30, Standard & Poor's Rating Services revised its outlook on Highland Heights, Kentucky-based General Cable Corp. to positive from stable, and affirmed the 'B+' corporate credit rating, the 'BB' secured bank loan rating, and the 'B' senior unsecured debt rating. The revised outlook reflects improved financial leverage metrics stemming from improved profitability and reduced debt. GENERAL CABLE: Earns US$37.1 Million for Third Quarter 2006 ----------------------------------------------------------- General Cable Corporation has released operating results for the third quarter ended Sept. 30, 2006. Net income for the third quarter of 2006 was US$37.1 million, compared with adjusted net income of US$13.5 million in the third quarter of 2005. Revenues of US$948.4 million were up 15% on a metal-adjusted basis compared to the prior year. Operating earnings were up in each major geographic region and in six of the Company's eight reported business segments. The improvement in operating earnings was driven by increased factory utilization, and a significantly improved pricing environment across most of the Company's product lines and geographies, including a reduction in the time to recover raw material inflation. "Price increases that were put in place during the second quarter of 2006, as raw material prices were rapidly escalating, have held during the third quarter reflecting high industry capacity utilization rates as well as strong end markets, particularly electric utility and electrical infrastructure markets," Gregory B. Kenny, President and Chief Executive Officer of General Cable, said. "The electric utility and certain electrical infrastructure market segments continue to demonstrate strong demand for cables around the world driven by increasing demand for new energy sources and renewed interest in expanding and improving the reliability of the power distribution and transmission infrastructure," Mr. Kenny added. E.C.N. Cable Group, S.L. During the third quarter, the Company completed the acquisition of E.C.N. Cable Group, S.L. (ECN). ECN is located near Bilbao, Spain and primarily manufactures energy cables. The acquisition further expands the Company's European energy cable offering with high-voltage aerial cables and increases the Company's capacity for low and medium-voltage insulated power cable products used in electric transmission and distribution lines. ECN, with annual revenues of around US$70 million, will be quickly integrated and managed through the Company's European headquarters in Barcelona, Spain. "This acquisition is timely as we anticipate renewed investment in the aerial high voltage transmission grid in Europe coupled with strong ongoing demand for medium voltage utility products," Mr. Kenny said. Preferred Stock Dividend In accordance with the terms of the Company's 5.75% Series A Convertible Redeemable Preferred Stock, the Board of Directors has declared a regular quarterly preferred stock dividend of around US$0.72 per share. The dividend is payable on November 24, 2006 to preferred stockholders of record as of the close of business on Oct. 31, 2006. The Company expects the quarterly dividend payment to around US$0.1 million. Fourth Quarter 2006 Outlook "Despite increased inventories and rebalancing by some distributors who bought ahead of a rising copper market, demand and pricing in many of our end markets continue to be strong going into the seasonally slower winter months, Mr. Kenny said. "In particular, we expect organic metal-adjusted double-digit revenue growth versus the prior year for our global Electric Utility business. Overall, for the fourth quarter we expect revenues between US$900 and US$925 million and fully diluted earnings per share of between US$0.55 and US$0.60, an increase of roughly 100% from the adjusted earnings per share of US$0.29 in the fourth quarter of 2005," Mr. Kenny concluded. About General Cable Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. The company also operates in Turkey, Spain, Norway, China, Australia, New Zealand, Brazil, Angola, Dominican Republic, Mexico, and Canada. * * * As reported in the Troubled Company Reporter on Oct. 27, Moody's Investors Service's, in implementation of its new Probability- of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency confirmed the B1 Corporate Family Rating for General Cable Corporation, as well as the B2 rating on the company's US$285 million 9.5% senior unsecured notes due 2010. Those debentures were assigned an LGD4 rating suggesting that creditors will experience a 70% loss in the event of a default. As reported in the Troubled Company Reporter on Jan. 30, Standard & Poor's Rating Services revised its outlook on Highland Heights, Kentucky-based General Cable Corp. to positive from stable, and affirmed the 'B+' corporate credit rating, the 'BB' secured bank loan rating, and the 'B' senior unsecured debt rating. The revised outlook reflects improved financial leverage metrics stemming from improved profitability and reduced debt. GENERAL CABLE: Moody's Assigns B1 Rating on US$315-Mln Sr. Notes ---------------------------------------------------------------- Moody's Investors Service assigned a rating of B1 to the proposed US$315 million convertible senior notes of General Cable Corp. Concurrently, Moody's upgraded the corporate family rating of GCC to Ba3 from B1. Moody's also upgraded the rating on the US$285 million senior unsecured notes to B1 from B2. The rating outlook is stable. The proceeds of the senior convertible notes will be used to reduce revolver outstandings and for general corporate purposes, including acquisitions. Ratings Actions Ratings assigned: * US$315 million senior unsecured convertible notes due 2013, B1 (LGD4, 65%) Ratings upgraded: * US$285 million senior unsecured notes due 2010, to B1 (LGD4, 65%) from B2 * Corporate Family Rating, to Ba3 from B1 * Probability of Default Rating, to Ba3 from B1 The rating outlook is stable. The assignment of a B1 rating to the proposed convertible notes and the upgrade in the corporate family rating to Ba3 from B1 primarily reflect the company's: -- moderate leverage; strengthening interest coverage; -- low cost operations; leading market position in the wire & cable industry; and -- highly diversified end markets and customer base. The ratings are additionally supported by: -- strong capacity utilization; -- rationalized industry-wide supply; -- positive demand dynamics in the energy segment of the company's business; -- a substantial inventory valuation cushion; -- low bad debt expense; -- sizeable net operating loss carry forwards, and -- size. Factors weighing on the company's ratings include: -- the large commodity price content of the firm's operations, -- the highly seasonal and cyclical nature of its business, -- the concentration of key raw material supply, -- a significantly under-funded defined-benefit pension plan, and -- the unionization of a material portion of the company's workforce. The stable outlook reflects Moody's expectation that GCC will continue to grow volume, particularly in the power and industrial & specialty segments, as a result of peak demand for its products. The rating agency also assumes that the firm will continue to take a conservative approach to acquisitions with consideration paid at or below replacement cost for cash flow accretive operations that will expand the company's geographic footprint and/or product breadth. In the event that a major acquisition adds material debt, the expectation is that GCC will utilize cash flow to rapidly de-lever in its historically disciplined manner. The ratings could come under upward rating pressure if total debt to EBITDA fall below 3.5 times on a sustained basis or if demand for the company's products lead to a level of high operating and free cash flow, thereby further improving coverage ratios and other credit metrics. Downgrade pressure could occur if the company makes a major acquisition that leverages the balance sheet and that poses material integration and span-of-control issues. The ratings could also be impaired if total debt to EBITDA increases above 3.7 times or if EBIT to interest expense declines below 2.3 times on a sustained basis. GCC, located in Highland Heights, KY, is a leading global developer and manufacturer within the wire and cable industry. The firm markets copper, aluminum and fiber optic wire and cable products globally. For the last twelve months ended June 30, 2006, the company reported revenues of US$3 billion. GENERAL CABLE: Improved Leverage Spurs S&P to Lift Ratings ---------------------------------------------------------- Standard & Poor's Rating Services raised its corporate credit rating on Highland Heights, Ky.-based General Cable Corp. to 'BB-' from 'B+'. At the same time, the company's secured bank loan rating was raised to 'BB+' from 'BB', and the senior unsecured debt rating to 'B+' from 'B'. The rating agency assigned a 'B+' to the proposed US$315 million senior convertible note, due 2013, which would be used to pay down the existing balance on the company's secured bank loan, to pay the net cost of a convertible note hedge and a warrant, and for general corporate purposes. The outlook is stable. "The upgrade reflects the continued improvement in financial leverage, which reached 3.6x as of September 2006, pro forma for the proposed debt, compared with 3.9x in the prior year," said Standard & Poor's credit analyst Stephanie Crane. The company continues to benefit from increased profitability, which is being driven by strong demand from the energy and power market, higher prices, as well as operating efficiencies. The transaction provides increased liquidity to invest in growing its business, as well as the opportunity for future debt refinancing. The ratings on General Cable Corp. reflect moderately high leverage and a cyclical operating profile, driven by fluctuating market demand and volatility in raw material pricing that can affect working capital requirements and cash flow. These factors are somewhat offset by the company's leading position in a global market for wire and cables, especially in the energy transmission and distribution market, as well as recent increases in profitability, in part because of volume growth and raw material pricing increases passed on to end customers, as well as effective cost cutting and efficiency efforts. General Cable is a leading global supplier (about 40% of sales comes from operations outside of North America) in the fragmented US$100 billion wire and cable market, supplying power utilities for the electrical grid, industrial and specialty markets, and the telecom market, including landline telephone and computer data networks. =========== S W E D E N =========== CONCORDIA BUS: Deloitte AB Expresses Going Concern Doubt -------------------------------------------------------- Deloitte AB expressed substantial doubt about Concordia Bus AB's ability to continue as a going concern after auditing the company's financial statements for the fiscal year ended Feb. 28, 2005. The auditing firm pointed to the company's: -- recurring operating losses; -- stockholder's capital deficiency; -- negative cash flows from operations; -- inability to make certain interest payments on outstanding borrowings; and -- violations of borrowing covenants. At Feb. 28, 2005, the company's balance sheet showed SEK873 million in shareholders' deficit, compared with a SEK330 million deficit at Feb. 29, 2004. For the 12-month period ended Feb. 28, 2005, the company posted SEK560 million of net losses on SEK4.81 billion of net revenues, compared with SEK409 million of net losses on SEK4.76 billion of net revenues for the same period in 2004. Company Restructuring On July 22, 2005, Concordia entered into a restructuring agreement with, among others, an Ad Hoc Committee of holders of its EUR160,000,000 11% Senior Subordinated Notes due 2010 and an informal group of holders of Senior Secured Notes. Pursuant to the Restructuring Agreement, on Oct. 4, 2005, holders of 99.91% in aggregate principal amount of the Senior Subordinated Notes received equity in Concordia in exchange for releasing Concordia for all claims they had under the Senior Subordinated Notes. Under the terms of the indenture governing the Senior Subordinated Notes, the restructuring was a change of control and Concordia was required to make a change of control offer to all the holders of Senior Subordinated Notes who did not participate in the restructuring. Holders of an aggregate principal amount of EUR87,000 of Senior Subordinated Notes accepted the offer which means that only EUR58,000 in aggregate principal amount of Senior Subordinated Notes remain outstanding. Since the restructuring, the Company remains highly leveraged as a result of: -- the outstanding 9.125% Senior Secured Notes due Aug. 1, 2009, issued by Concordia Bus Nordic; -- EUR45 million Mezzanine Facility; and -- significant operational lease obligations. According to its Annual Report filed with the U.S. Securities and Exchange Commission, this leverage has and will put additional pressure on the Company's cash flows and limits the Company's ability to seek additional external funds. As of Feb. 28, 2005, Concordia had approximately SEK1.2 million of long-term debt due to third parties, including the Senior Secured Notes and long term finance lease obligations but excluding operating lease obligations and excluding 11% Senior Subordinated Notes due February 2010 of SEK1.448 million, which are classified as short term. As of Nov. 30, 2005, Concordia had approximately SEK1.7 million of long-term debt due to third parties, including the Senior Secured Notes, the Mezzanine Facility and long-term finance lease obligations but excluding operating lease obligations. About Concordia Bus Headquartered in Stockholm, Sweden, Concordia Bus AB -- http://www.concordiabus.com/-- is the largest private bus transportation company in the Nordic region. ===================== S W I T Z E R L A N D ===================== CONVERIUM HOLDING: Earns US$54.3 Million for Third Quarter 2006 --------------------------------------------------------------- Converium Holding AG released its financial results for the third quarter and first nine months ended Sept. 30, 2006. Converium posted US$54.3 million in net profit against US$538.3 million in revenues for the third quarter of 2006, compared with US$6.9 million in net losses against US$678.7 million in revenues for the same period in 2005. The company posted US$178.4 million in net profit against US$1.39 billion in revenues for the first nine months of 2006, compared with US$34.5 million in net profit against US$2.18 billion in revenues for the same period in 2005. As of Sept. 30, 2006, Converium Holding AG had US$11.87 billion in assets, US$9.97 billion in liabilities and US$1.9 billion in shareholder equity. "Converium reports another quarter of impressive financial performance," Inga Beale, Chief Executive Officer, commented. "Our capital base has further strengthened. The results primarily reflect strong current-year underwriting performance, highlighting the quality of our book of business. The third quarter demonstrates once more the sustainability of Converium's rebound." "We now focus on the year-end renewal negotiations and believe that we can benefit from the recent positive rating actions," Mr. Beale added. "We remain confident that Converium will be awarded a better financial strength rating in the near future." Agreement to Sell North American Operations On Oct. 17, Converium disclosed of the signing of a definitive agreement to sell its North American operations to National Indemnity Company, a Berkshire Hathaway company, for a total consideration of US$295 million comprised of US$95 million in cash and US$200 million in assumption of debt. Converium has not provided any guarantee or indemnity in respect of the reserves of the North American operations. The transaction is subject to regulatory approvals and customary closing conditions. The transaction is not reflected in Converium's third quarter financial accounts presented. The sale to National Indemnity Company is based on the balance sheet as of June 30, 2006. On this basis Converium estimates that the sale will result in a decrease in shareholders' equity of US$135 million. The overall effect on net income and shareholders' equity will depend on the amount of unrealized investment losses or gains at the North American operations, closing net asset adjustments and foreign exchange developments. Increases or decreases in the net assets of the North American operations after June 30, 2006 do not give rise to a net benefit or detriment to Converium, resulting in a fixed economic effect of the transaction at closing. On completing this transaction, Converium will achieve finality regarding its North American operations. In addition, the Company's risk profile improves following the assumption of all of the North American operations' reinsurance liabilities (in excess of US$1 billion as of June 30, 2006) by National Indemnity Company. Following the conclusion of the sale, Converium will maintain a strong financial position, while further de-risking its balance sheet. Converium is very pleased with Standard & Poor's decision to place the Company on Credit Watch with positive implications after the transaction was announced. Financial Guidance for 2006 Essentially Unchanged Converium reiterates the fundamental elements of its full-year financial guidance given in March 2006: -- gross premiums written for 2006 are projected to come in at US$1.8-1.9 billion; -- the priced combined ratio for the ongoing non-life operations is anticipated at around 102.5%, including an administration expense ratio of 5.5%, expected losses from natural catastrophes of about US$80 million but excluding expected Corporate Center costs of up to US$55 million as compared with the Company's previous guidance of US$45-50 million. This upward revision of Corporate Center costs is driven by additional expenses associated with the sale of the North American operations; -- the corporate tax rate is expected to range between 12-15%, up from the previous guidance of 7-12%. This upward revision is largely attributable to more income from high-tax jurisdictions; -- average invested assets including cash and cash equivalents should be in the magnitude of around US$7.2 billion, up from the previous guidance of around US$7 billion. Positive Outlook for Year-End Renewals In the ongoing year-end renewals Converium experiences strong support from clients. Given the most recent positive signals from rating agencies, especially Standard & Poor's placing of Converium under Credit Watch with positive implications, clients believe that Converium will obtain an improved financial strength rating in the near future. Even assuming no upgrade before the end of the year Converium expects to achieve at least a stable volume of business in 2007, based on increasing shares in a number of client relationships, new business from various markets, and overall market conditions which Converium believes to remain attractive. Distinct Value Proposition Following a ratings upgrade Converium will continue to build its franchise as a mid-sized multi-line reinsurer with a distinct geographic emphasis on Europe, Asia Pacific and the Middle East, and with a focus on global specialty lines. The Company believes that, based on its knowledge-based strategy, it can successfully position itself as an "intelligent alternative" in global reinsurance markets, also benefiting from a clear and distinctive strategic stance on North America. As a result of a ratings upgrade, Converium expects to gain increased shares with existing clients and to establish new client relationships without compromising on profitability. About Converium Headquartered in Zug, Switzerland, Converium Holding AG -- http://www.converium.com/-- provides treaty and individual coverage for risks including accident and health, credit and surety, e-commerce, third party and professional liability, life, and special casualty. The company also operates in Germany, United Kingdom, France, Malaysia, Singapore, Australia, Japan, Bermuda, Argentina, U.S.A., Brazil and Canada. * * * As reported in the TCR-Europe on Oct. 20, Fitch Ratings placed Swiss-based Converium AG's Insurer Financial Strength BBB- rating on Rating Watch Positive. The agency has also placed other ratings within the Converium group on RWP. Converium group ratings are: -- Converium AG's IFS BBB- on RWP; -- Converium AG's Issuer Default rating BBB- on RWP; -- Converium Insurance (U.K.) Limited's IFS BBB- on RWP; -- Converium Ruckversicherungs (Deutschland) AG's IFS BBB- on RWP; -- Converium Holding AG's IDR BB on RWP; and -- Converium Finance S.A.'s US$200 million subordinated debt due 2032 BB+ on RWP. =========== T U R K E Y =========== CANWEST MEDIAWORKS: Moody's Confirms B2 Sr. Subordinate Rating -------------------------------------------------------------- Moody's Investors Service confirmed CanWest MediaWorks Inc.'s Ba3 Corporate Family Rating and B2 Senior Subordinate rating. At the same time, Moody's changed CanWest's speculative grade liquidity rating to SGL-2 from SGL-3. The long-term ratings reflect a Ba3 Probability of Default and an LGD5 (87%) assessment on the senior subordinated notes. This action concludes the rating review commenced in July 2006. The outlook is negative. In its decision to confirm the ratings, Moody's stated that while CanWest's recent underperformance has significantly weakened the company's key credit metrics, the potential for its Canadian television operations to improve from a historically low base in addition to ongoing cost reduction measures should help reduce adjusted consolidated leverage to under 5x and produce low single-digit free cash flow to debt by the end of 2008. Moody's also recognized the significant and established positions CanWest maintains in the Canadian newspaper publishing sector and the value of its cash yielding investments in Australia's Network TEN and other global media properties. Finally, Moody's noted that it believes CanWest has both the ability and desire to strengthen its balance sheet, which could occur through further asset sales within the near term. The negative outlook reflects Moody's view that CanWest's key credit metrics based on its current set of assets will remain weakly positioned within the Ba3 rating category over the next couple of years. Additionally, while Moody's expects improved results from the company's Canadian television business, supporting trends are only very recent and these trends need to be sustained in order for the current ratings to hold. Moody's noted that should CanWest's current review of opportunities for its assets in the South Pacific result in a sale of some of those assets, CanWest's ratings have the potential to improve depending on how any proceeds are used. The change in CanWest's SGL rating to SGL-2 from SGL-3 follows the reduction in CanWest's legal entity bank facility usage from asset sale proceeds in addition to recent amendments to its banking covenants, which have eased liquidity pressures, such that Moody's now considers CanWest's liquidity position to be good. Rating actions: CanWest MediaWorks Inc. * Speculative Grade Liquidity Rating, upgraded to SGL-2 from SGL-3 * Outlook, changed to negative from rating under review CanWest MediaWorks Inc. is a communications holding company based in Winnipeg, Manitoba Canada, with interests in TV, radio and publishing operations in Canada, Australia, New Zealand, and other international locations. GENERAL CABLE: To Issue US$315-Million Senior Convertible Notes ---------------------------------------------------------------- General Cable Corp. has entered into an agreement to sell US$315 million in aggregate principal amount of its 0.875% Senior Convertible Notes due 2013. In addition, the Company has granted to the underwriters an option to purchase up to an additional US$40 million in principal amount of Senior Convertible Notes on the same terms and conditions as those sold in this offering. The Senior Convertible Notes will be convertible into General Cable Corporation common stock at a conversion rate of 19.856 shares per US$1,000 principal amount of Senior Convertible Notes. This conversion is equivalent to an initial conversion price of around US$50.36 per share. This represents a 27.5% premium to US$39.50 per share, which was the last reported sale price of General Cable Corporation's common stock on the New York Stock Exchange. Prior to Oct. 15, 2013, holders may convert their Senior Convertible Notes under certain circumstances. On and after Oct. 15, 2013, the notes will be convertible at any time prior to the close of business on the business day before the stated maturity date of the notes. Upon conversion of a note, if the conversion value is US$1,000 or less, holders will receive an amount in cash in lieu of common stock equal to the lesser of US$1,000 or the conversion value of the number of shares of common stock equal to the conversion rate. If the conversion value exceeds US$1,000, in addition to this cash payment, holders will receive, at General Cable Corporation's election, cash or common stock or a combination of cash and common stock for the excess amount. General Cable Corporation expects to use the net proceeds from this offering to repay outstanding amounts of principal and interest under its senior secured credit facility as well as to pay the net cost of separate convertible note hedge and warrant transactions entered into in connection with this offering. The convertible note hedge transactions are intended to offset potential dilution to the Company's common stock upon potential future conversion of the notes. The warrants will have an exercise price that is US$76.00, or 92.4% higher than the closing price of the Company's common stock. The Company also expects to use the net proceeds of this transaction for general corporate purposes, which may include funding internal growth or potential acquisitions. Merrill Lynch & Co. and Credit Suisse are acting as the lead underwriters in this offering. About General Cable Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. The company also operates in Turkey, Spain, Norway, China, Australia, New Zealand, Brazil, Angola, Dominican Republic, Mexico, and Canada. * * * As reported in the Troubled Company Reporter on Oct. 27, Moody's Investors Service's, in implementation of its new Probability- of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency confirmed the B1 Corporate Family Rating for General Cable Corporation, as well as the B2 rating on the company's US$285 million 9.5% senior unsecured notes due 2010. Those debentures were assigned an LGD4 rating suggesting that creditors will experience a 70% loss in the event of a default. As reported in the Troubled Company Reporter on Jan. 30, Standard & Poor's Rating Services revised its outlook on Highland Heights, Kentucky-based General Cable Corp. to positive from stable, and affirmed the 'B+' corporate credit rating, the 'BB' secured bank loan rating, and the 'B' senior unsecured debt rating. The revised outlook reflects improved financial leverage metrics stemming from improved profitability and reduced debt. GENERAL CABLE: Earns US$37.1 Million for Third Quarter 2006 ----------------------------------------------------------- General Cable Corporation has released operating results for the third quarter ended Sept. 30, 2006. Net income for the third quarter of 2006 was US$37.1 million compared to adjusted net income of US$13.5 million in the third quarter of 2005. Revenues of US$948.4 million were up 15% on a metal-adjusted basis compared to the prior year. Operating earnings were up in each major geographic region and in six of the Company's eight reported business segments. The improvement in operating earnings was driven by increased factory utilization, and a significantly improved pricing environment across most of the Company's product lines and geographies, including a reduction in the time to recover raw material inflation. "Price increases that were put in place during the second quarter of 2006, as raw material prices were rapidly escalating, have held during the third quarter reflecting high industry capacity utilization rates as well as strong end markets, particularly electric utility and electrical infrastructure markets," Gregory B. Kenny, President and Chief Executive Officer of General Cable, said. "The electric utility and certain electrical infrastructure market segments continue to demonstrate strong demand for cables around the world driven by increasing demand for new energy sources and renewed interest in expanding and improving the reliability of the power distribution and transmission infrastructure," Mr. Kenny added. E.C.N. Cable Group, S.L. During the third quarter, the Company completed the acquisition of E.C.N. Cable Group, S.L. (ECN). ECN is located near Bilbao, Spain and primarily manufactures energy cables. The acquisition further expands the Company's European energy cable offering with high-voltage aerial cables and increases the Company's capacity for low and medium-voltage insulated power cable products used in electric transmission and distribution lines. ECN, with annual revenues of around US$70 million, will be quickly integrated and managed through the Company's European headquarters in Barcelona, Spain. "This acquisition is timely as we anticipate renewed investment in the aerial high voltage transmission grid in Europe coupled with strong ongoing demand for medium voltage utility products," Mr. Kenny said. Preferred Stock Dividend In accordance with the terms of the Company's 5.75% Series A Convertible Redeemable Preferred Stock, the Board of Directors has declared a regular quarterly preferred stock dividend of around US$0.72 per share. The dividend is payable on November 24, 2006 to preferred stockholders of record as of the close of business on Oct. 31, 2006. The Company expects the quarterly dividend payment to around US$0.1 million. Fourth Quarter 2006 Outlook "Despite increased inventories and rebalancing by some distributors who bought ahead of a rising copper market, demand and pricing in many of our end markets continue to be strong going into the seasonally slower winter months, Mr. Kenny said. "In particular, we expect organic metal-adjusted double-digit revenue growth versus the prior year for our global Electric Utility business. Overall, for the fourth quarter we expect revenues between US$900 and US$925 million and fully diluted earnings per share of between US$0.55 and US$0.60, an increase of roughly 100% from the adjusted earnings per share of US$0.29 in the fourth quarter of 2005," Mr. Kenny concluded. About General Cable Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. The company also operates in Turkey, Spain, Norway, China, Australia, New Zealand, Brazil, Angola, Dominican Republic, Mexico, and Canada. * * * As reported in the Troubled Company Reporter on Oct. 27, Moody's Investors Service's, in implementation of its new Probability- of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency confirmed the B1 Corporate Family Rating for General Cable Corporation, as well as the B2 rating on the company's US$285 million 9.5% senior unsecured notes due 2010. Those debentures were assigned an LGD4 rating suggesting that creditors will experience a 70% loss in the event of a default. As reported in the Troubled Company Reporter on Jan. 30, Standard & Poor's Rating Services revised its outlook on Highland Heights, Kentucky-based General Cable Corp. to positive from stable, and affirmed the 'B+' corporate credit rating, the 'BB' secured bank loan rating, and the 'B' senior unsecured debt rating. The revised outlook reflects improved financial leverage metrics stemming from improved profitability and reduced debt. GENERAL CABLE: Moody's Assigns B1 Rating on US$315-Mln Sr. Notes ---------------------------------------------------------------- Moody's Investors Service assigned a rating of B1 to the proposed US$315 million convertible senior notes of General Cable Corp. Concurrently, Moody's upgraded the corporate family rating of GCC to Ba3 from B1. Moody's also upgraded the rating on the US$285 million senior unsecured notes to B1 from B2. The rating outlook is stable. The proceeds of the senior convertible notes will be used to reduce revolver outstandings and for general corporate purposes, including acquisitions. Ratings Actions Ratings assigned: * US$315 million senior unsecured convertible notes due 2013, B1 (LGD4, 65%) Ratings upgraded: * US$285 million senior unsecured notes due 2010, to B1 (LGD4, 65%) from B2 * Corporate Family Rating, to Ba3 from B1 * Probability of Default Rating, to Ba3 from B1 The rating outlook is stable. The assignment of a B1 rating to the proposed convertible notes and the upgrade in the corporate family rating to Ba3 from B1 primarily reflect the company's: -- moderate leverage; strengthening interest coverage; -- low cost operations; leading market position in the wire & cable industry; and -- highly diversified end markets and customer base. The ratings are additionally supported by: -- strong capacity utilization; -- rationalized industry-wide supply; -- positive demand dynamics in the energy segment of the company's business; -- a substantial inventory valuation cushion; -- low bad debt expense; -- sizeable net operating loss carry forwards, and -- size. Factors weighing on the company's ratings include: -- the large commodity price content of the firm's operations, -- the highly seasonal and cyclical nature of its business, -- the concentration of key raw material supply, -- a significantly under-funded defined-benefit pension plan, and -- the unionization of a material portion of the company's workforce. The stable outlook reflects Moody's expectation that GCC will continue to grow volume, particularly in the power and industrial & specialty segments, as a result of peak demand for its products. The rating agency also assumes that the firm will continue to take a conservative approach to acquisitions with consideration paid at or below replacement cost for cash flow accretive operations that will expand the company's geographic footprint and/or product breadth. In the event that a major acquisition adds material debt, the expectation is that GCC will utilize cash flow to rapidly de-lever in its historically disciplined manner. The ratings could come under upward rating pressure if total debt to EBITDA fall below 3.5 times on a sustained basis or if demand for the company's products lead to a level of high operating and free cash flow, thereby further improving coverage ratios and other credit metrics. Downgrade pressure could occur if the company makes a major acquisition that leverages the balance sheet and that poses material integration and span-of-control issues. The ratings could also be impaired if total debt to EBITDA increases above 3.7 times or if EBIT to interest expense declines below 2.3 times on a sustained basis. GCC, located in Highland Heights, KY, is a leading global developer and manufacturer within the wire and cable industry. The firm markets copper, aluminum and fiber optic wire and cable products globally. For the last twelve months ended June 30, 2006, the company reported revenues of US$3 billion. GENERAL CABLE: Improved Leverage Spurs S&P to Lift Ratings ---------------------------------------------------------- Standard & Poor's Rating Services raised its corporate credit rating on Highland Heights, Ky.-based General Cable Corp. to 'BB-' from 'B+'. At the same time, the company's secured bank loan rating was raised to 'BB+' from 'BB', and the senior unsecured debt rating to 'B+' from 'B'. The rating agency assigned a 'B+' to the proposed US$315 million senior convertible note, due 2013, which would be used to pay down the existing balance on the company's secured bank loan, to pay the net cost of a convertible note hedge and a warrant, and for general corporate purposes. The outlook is stable. "The upgrade reflects the continued improvement in financial leverage, which reached 3.6x as of September 2006, pro forma for the proposed debt, compared with 3.9x in the prior year," said Standard & Poor's credit analyst Stephanie Crane. The company continues to benefit from increased profitability, which is being driven by strong demand from the energy and power market, higher prices, as well as operating efficiencies. The transaction provides increased liquidity to invest in growing its business, as well as the opportunity for future debt refinancing. The ratings on General Cable Corp. reflect moderately high leverage and a cyclical operating profile, driven by fluctuating market demand and volatility in raw material pricing that can affect working capital requirements and cash flow. These factors are somewhat offset by the company's leading position in a global market for wire and cables, especially in the energy transmission and distribution market, as well as recent increases in profitability, in part because of volume growth and raw material pricing increases passed on to end customers, as well as effective cost cutting and efficiency efforts. General Cable is a leading global supplier (about 40% of sales comes from operations outside of North America) in the fragmented US$100 billion wire and cable market, supplying power utilities for the electrical grid, industrial and specialty markets, and the telecom market, including landline telephone and computer data networks. ============= U K R A I N E ============= AGROPRODUKT LLC: Court Names Sergij Avilov as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Sergij Avilov as Liquidator/Insolvency Manager for LLC Agroprodukt (code EDRPOU 30348780). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 3. The case is docketed under Case No. 10/202/2006. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: LLC Agroprodukt Urozhajna Str. 1 07832 Mikolaiv Region Ukraine AQUA-INVEST CJSC: Court Names V. Kosovskij as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Herson Region appointed Mr. V. Kosovskij as Liquidator/Insolvency Manager for CJSC Aqua-Invest (code EDRPOU 23133005). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 27. The case is docketed under Case No. 6/174-B-06. The Economic Court of Herson Region is located at: Gorkij Str. 18 73000 Herson Region Ukraine The Debtor can be reached at: CJSC Aqua-Invest Senyavin Str. 11 Herson Region Ukraine BUSHEL ZERNO: Court Names Ivan Radik as Insolvency Manager ---------------------------------------------------------- The Economic Court of Harkiv Region appointed Ivan Radik as Liquidator/Insolvency Manager for LLC Bushel Zerno (code EDRPOU 33232530). He can be reached at: Ivan Radik Traktorobudivnik 140-B/75 Harkiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 27. The case is docketed under Case No. B-24/90-06. The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor can be reached at: LLC Bushel Zerno Popivka Krasnogradskij District Harkiv Region Ukraine GOLDEN TELECOM: Commences Rebranding; Awareness Survey to Follow ---------------------------------------------------------------- Golden Telecom Inc. discloses of the first results of the re- branding campaign launched in October to support its strategy of launching new products to the retail market. During October 2006, Golden Telecom staged several events, including press conferences, massive indoor and outdoor advertisement campaigns and active media campaign to promote its new image. These activities are part of the Company's strategy of launching new products and services for the mass-market, including wireless broadband Internet access, voice over IP services and domestic and international calls. The re-branding campaign in Moscow and the regions is the first step in the strategy implementation. In particular, Company's re-branding includes the development and promotion of the new brand platform, which will tie in the corporate brand with brands of different products and services designed for various customer segments. This strategic shift towards mass market and emergence of a new target audience lead the Company to change the emotional message carried by its image. Golden Telecom's logotype now conveys the openness, friendliness and modernity of the Company. The new logo of Golden Telecom consists of two figures colored in orange, yellow and white and includes the new corporate slogan "Achieve more." The combined logotype should increase brand recognition. The logo will be used to identify products and services offered by Golden Telecom on different market segments. The different forms and colors of the logo parts demonstrate to our customers the variety of the Company's products and services, while keeping them under the "Golden" umbrella. The first results of the campaign have been very positive. The media, both public and professional, noticed effectiveness of the new image, good timing and professional execution of the media campaign. Golden Telecom plans to conduct a brand awareness survey in the coming months. "We are changing in order to reflect in a better way those positive changes that are taking place in our company and that aim to distinguish our company from the competitors on the telecommunications services market," Jean-Pierre Vandromme, Chief Executive Officer of Golden Telecom, commented. "For a long time, Golden Telecom has been the best telecommunications company on the business market due to the fact that we provide top-quality, convenient and highly needed products and services. It is time to enter the mass market as well. We are here in order to provide people with high-quality and affordable services helping people communicate, exchange knowledge and experience, enjoy life and keep in contact with each other in our modern world." About Golden Telecom Golden Telecom, Inc. -- http://www.goldentelecom.com/-- provides integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States. The Company offers voice, data and Internet services to corporations, operators and consumers using its overlay network in major cities including Moscow, Kiev, St. Petersburg, Nizhniy Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via intercity fiber optic and satellite-based networks, including around 287 combined access points in Russia and other countries of the CIS. The Company offers cellular communication services in Kiev and Odessa, Ukraine. * * * As reported in the TCR-Europe on Oct. 16, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Golden Telecom Inc., to 'BB' from 'BB-', reflecting the company's strengthened business profile and prudent financial risk management. S&P said the outlook is stable. "The upgrade reflects the company's strengthened business profile, with strong market shares and a leading consolidator position in Russia's corporate fixed-line market," said Standard & Poor's credit analyst Lorenzo Sliusarev. INDEPENDENT TEXTILE: Harkiv Court Names Ivan Radik as Liquidator ---------------------------------------------------------------- The Economic Court of Harkiv Region appointed Ivan Radik as Liquidator/Insolvency Manager for LLC Independent Textile Company-Harkiv (code EDRPOU 31558353). He can be reached at: Ivan Radik Traktorobudivnik 140-B/75 Harkiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 3. The case is docketed under Case No. B-24/91-06 The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor can be reached at: LLC Independent Textile Company-Harkiv Shevchenko Avenue 235 Harkiv Region Ukraine KRYMTEPLOENERGOMONTAZH OJSC: Galina Yeryomenko to Manage Assets --------------------------------------------------------------- The Economic Court of AR Krym Region appointed Galina Yeryomenko as Liquidator/Insolvency Manager for OJSC Krymteploenergomontazh (code EDRPOU 04788522). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 19. The case is docketed under Case No. 2-2b/4159-2006. The Economic Court of AR Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region Ukraine The Debtor can be reached at: OJSC Krymteploenergomontazh Budivelna Baza Sholkino Leninskij District 98213 AR Krym Region Ukraine MICHURINSKE LLC: Court Names Tamara Zhevnova as Liquidator ---------------------------------------------------------- The Economic Court of Donetsk Region appointed Tamara Zhevnova as Liquidator/Insolvency Manager for Agricultural LLC Michurinske (code EDRPOU 30835456). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 18. The case is docketed under Case No. 42/168-B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: Agricultural LLC Michurinske Yekaterinivka Maryinskij District 85652 Donetsk Region Ukraine MYRONIVSKY HLIBOPRODUCT: Moody's Puts (P)B2 Rating on Bond Issue ---------------------------------------------------------------- Moody's Investors Service assigned a B2 Corporate Family Rating to OJSC Myronivsky Hliboproduct and a (P)B2 Senior Unsecured rating to the proposed US$250 million Notes issuance, due 2011, of MHP S.A. Moody's also assigned to MHP a Ukrainian National Scale Rating of A2.ua. The outlook on the ratings is stable. This is the first time Moody's has assigned ratings to MHP. The (P)B2 instrument rating should be affirmed and removed from its provisional status upon completion of the bond issuance and subject to satisfactory review of final documentation. Moody's National Scale Ratings are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks and differ from global scale ratings in that they are not globally comparable to the full universe of Moody's rated entities, but only with other rated entities within the same country. MHP is the leading chicken processing company in the Ukraine and the B2 Corporate Family Rating reflects the quality assessment of the company's business portfolio, its solid market leadership position and the strong operating margins and credit metrics resulting from the company's vertical integration. The rating, however, also factors MHP's relatively small size, its geographic concentration and the business challenges when operating in the Ukraine, which add a degree of volatility to future performance. The rating also captures risks associated with execution of the company's sizeable investment program over the next few years, which is initially likely to result in free cash flow losses; the company's corporate governance is also at a developing stage and the concentration of ownership could lead to the possibility of unexpected changes in strategy or financial strength over time. The (P)B2 senior unsecured rating at the level of the Corporate Family Rating recognizes the size of the instrument in the capital structure and the limited amount of priority ranking debt post issuance. Moody's understands that although there are some limitations on possible additional debt, Moody's would reconsider the rating on the Notes if the amount of debt ranking ahead of the bond had to increase significantly. The stable outlook is based on Moody's expectation that the company will be able to pursue its profitable growth strategy thanks to its strong market leadership position and to maintain its currently strong operating margin and cash generation that should allow the company to weather relatively well adverse market conditions. Ratings assigned: MHP * B2 Corporate Family Rating * A2.ua National Scale Rating MHP S.A. * (P)B2 Senior Unsecured rating on the proposed US$250 million bond due 2011 Headquartered in Kyiv, Ukraine, MHP is the leading chicken processing company in the Country. During the year ending December 2005 the company reported pro-forma revenues for UAH1.5 billion (around US$299 million). TNK-BP HOLDING: Tackles Kovykta Gas Haulage Routes with NGOs ------------------------------------------------------------ TNK-BP held a round table meeting in Moscow on Nov. 1, which focused on environmental issues related to potential routes for Kovykta gas transportation as well as preparation of independent studies aimed at examining and assessing various Kovykta gas transport options -- those already considered by TNK-BP and other potential alternatives -- taking into account socio- economic risks and investment efficiency. Participants include: -- TNK-BP, -- BP, -- RUSIA Petroleum, -- FRECOM, -- Stroitransgaz -- World Wildlife Fund (WWF) Russia, -- Greenpeace Russia, -- International Socioeconomic Union, -- Ecocenter Zapovedniki, -- Non-Commercial Partnership Transparent World, -- The Conservation Center, -- Russia's Birds Protection Union, -- Green Patrol, -- Baikal Environmental Wave, and -- Buryatia Regional Association on Baikal. The NGO's stated their belief that this work might serve as a basis for reasoned discussions of issues related to development of the new East Siberian oil-and-gas province involving producers, consumers and community leaders. NGO representatives mentioned the relatively high level of information transparency during the project design stage, as well as TNK-BP's intention to increase the quality of Kovykta project environmental support through comprehensive analysis of social and environmental risks. At the same time, ecologists voiced a number of concerns regarding the technical side of the project implementation. In their opinion, independent public monitoring could help reduce the probability of these concerns in the future. The participants agreed that the round table would be the first in a series of future meetings that will allow TNK-BP to inform NGO's of its plans and current activities. Such meetings will also help environmental organizations to implement public monitoring activities thus ensuring that all East-Siberian projects implemented by TNK-BP, meet environmental requirements at all project stages. About TNK-BP Headquartered Moscow, Russia, TNK-BP Holding OAO -- http://www.tnk-bp.com/-- operates six refineries in Russia and Ukraine, and markets products through 2,100 retail service stations operating under TNK and BP brand. TNK owns 56.5% of TNK-BP Holding, and Onako and Sidanco hold 6.8% and 30.9%, respectively. The other 5.8% belongs to TNK-BP shareholders. TNK-BP holds a strategic position as the second largest liquids producer in the Russian intergraded operating environment, accounting for around 18% of Russia's total crude oil production. * * * Standard & Poor's assigned BB+/Stable foreign currency local currency ratings to TNK-BP on June 30, 2006. Moody's assigned Ba2/Positive foreign currency rating to the company on Jan. 24, 2006. Fitch assigned BB+/Positive foreign currency rating to TNK-BP on Feb. 13, 2006, and BB+/Positive local currency rating on Aug. 24, 2005. UKRVTORMET CJSC: Court Names Ludmila Volovik as Liquidator ---------------------------------------------------------- The Economic Court of Harkiv Region appointed Ludmila Volovik as Liquidator/Insolvency Manager for CJSC Ukrvtormet (code EDRPOU 24139056). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 19. The case is docketed under Case No. B-39/28-06. The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor can be reached at: CJSC Ukrvtormet Chernishevskij Str. 66 Harkiv Region Ukraine YAVVA LLC: Court Names Kostyantin Romanov as Insolvency Manager --------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Kostyantin Romanov as Liquidator/Insolvency Manager for LLC Yavva (code EDRPOU 20278335). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 5. The case is docketed under Case No. B 15/167/05. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Yavva Kosmonavtiv Str. 43 Krivij Rig 50071 Dnipropetrovsk Region Ukraine * Fitch Gives BB- Rating to Ukraine's Upcoming US$1-Bln Eurobond ---------------------------------------------------------------- Fitch Ratings assigned a BB- rating to Ukraine's upcoming 10-year US$1 billion eurobond. The rating is in line with Ukraine's foreign currency Issuer Default rating, on which the Outlook is Positive. "Ukraine's economic performance in 2006 has been strong despite a sharp rise in the gas price in January," said Andrew Colquhoun, Director in Fitch's Sovereigns Group. "Political risk has diminished following the peaceful transition to a new government in August. Ukraine's ratings have the potential to go up the scale if the country achieves continued economic growth without overheating, while establishing a longer record of political stability." Ukraine's robust growth in 2006, which should come in around 5.5%, has been supported by strong consumption and a rebound in investment. The energy-intensive economy seems to have absorbed January's rise in the gas price to US$95/thousand cubic meters from US$50/tcm smoothly, lending confidence that a further hike to US$130/tcm expected in 2007 will not prove too damaging. Ukraine is likely to record its first current account deficit for eight years in 2006, driven by strong import growth. But the country's capacity to deal with external shocks continues to improve, with official reserves reaching US$19.2 billion at end- September 2006, some 18% of expected 2006 GDP, covering about four months of imports. Encouragingly, foreign direct investment picked up in 2005 to US$7.8 billion after years of relatively minor inflows. Fiscal finances remain a rating strength. Ukraine's stock of gross general government debt -to-GDP stood at 18.4% of GDP at end-2005, well below the BB range median of 45.6%. Furthermore, Ukraine is one of only four net public external creditors in the BB range, and the second strongest relative to GDP. Bank credit to the private sector grew 64% in 2005, raising some concern given the relative weakness of the banking system. However, the fast-rising share of foreign ownership in the system should improve risk-control standards, while offering additional sources of support to the sector in any future crisis. Inflation remains relatively high, running at 11% year-on-year in October 2006. While inflation has dropped since the authorities revalued the currency in April 2005, the authorities need to remain vigilant for signs that the economy is overheating. * S&P Rates Ukraine's Upcoming US$1-Bln Eurobond Issue at BB- ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured debt rating to the upcoming US$1 billion Eurobond to be issued by Ukraine, which will mature in 2016. "The ratings on Ukraine are supported by a strong general government balance sheet, solid growth prospects over the medium term, and a relatively low external debt burden," commented Standard & Poor's credit analyst Moritz Kraemer. "Despite a drawn-out political crisis following the March 2006 elections and the doubling of natural gas import prices earlier in the year, the Ukrainian economy has outperformed expectations." Growth in 2006 is now forecast to exceed 6%, slowing only moderately in 2007. Foreign direct investment and export performance have also surpassed earlier estimates, demonstrating the economy's improved resilience against the unpredictable political environment. Public sector and external solvency indicators have improved markedly since 2000. Ukraine's external liquidity is now comparable with the 'BB' median, despite the evaporation of current account surpluses, following adverse terms of trade shocks and buoyant domestic demand. The fiscal improvements that occurred during the growth spurt in the first half of this decade, together with significant privatization receipts, have led to a fall in general government debt to less than 20% of GDP in 2006, one-half the ratio of five years previously and the current 'BB' median of 43%. Prime Minister Viktor Yanukovich, who harbors a conciliatory attitude toward The Russian Federation, will deliver a measured increase in imported gas prices to market levels and reduce the likelihood of supply shortages, both of which are key to preventing a major slowdown of Ukraine's fast-growing, but exceptionally energy-intensive economy. Accordingly, import gas prices will increase by slightly more than one-third to a manageable US$130 per thousand cubic meters in 2007, far below world market prices, although gas prices are still likely to gradually increase to reach world market price levels. Nevertheless, the ratings on Ukraine remain constrained by: -- weak political institutions, -- reversal-prone economic policies, -- low levels of prosperity, and -- vulnerability to external shocks. "The rancorous political environment and the country's polarized society continue to diminish policy consistency and predictability," said Mr. Kraemer. "The prospects for rigorous and coherent implementation of policy reform remain poor over the medium term, while risks of sudden policy reversals loom large." Ukraine's banking sector is one of the weakest systems analyzed by Standard & Poor's Ratings Services and poses an above-average contingent risk to the government, especially given brisk credit expansion: domestic credit is expected to reach 50% of GDP in 2007, from less than 20% in 2002. =========================== U N I T E D K I N G D O M =========================== B W CONTRACTING: Appoints Andrew Rosler to Liquidate Assets ----------------------------------------------------------- Andrew Rosler of Ideal Corporate Solutions Limited was appointed Liquidator of B W Contracting Services Limited (formerly Williamsmith Services) on Oct. 31 for the creditors' voluntary winding-up procedure. The company can be reached at: B W Contracting Services Limited Unit 14 Kingston Farm Industrial Units Down Hall Road Matching Green Harlow Essex CM170RB United Kingdom Tel: 01279 739 022 BATHE LIMITED: Names Simon Thornton as Administrator ---------------------------------------------------- Simon Thornton of Houghton Stone Business Recovery was named administrator of Bathe Ltd. (Company Number 4633225) on Nov. 1. The administrator can be reached at: Simon Thornton Houghton Stone Business Recovery The Conifers Filton Road Hambrook Bristol BS16 1QG United Kingdom Tel: 0117 957 9009 The company can be reached at: Bathe Ltd. Unit 8 Roman Farm Way Enterprise Trade Centre Bristol Avon BS4 1UN United Kingdom Tel: 0117 964 2010 BOLTON HEMMING: Appoints Hodgsons to Administer Assets ------------------------------------------------------ David E.M. Mond and Lawrence I. Freedman of Hodgsons were appointed joint administrators of Bolton Hemming Ltd. (Company Number 01166318) on Oct. 30. The administrators can be reached at: David E.M. Mond and Lawrence I. Freedman Hodgsons George House 48 George Street Manchester Greater Manchester M1 4HF United Kingdom Tel: 0161 228 7444 Fax: 0161 228 735 E-mail: dmond@hodgsons.co.uk Bolton Hemming Ltd. can be reached at: Halliwell Industrial Estate Rossini Street Bolton Lancashire BL1 8DP United Kingdom Tel: 01204 492 614 Fax: 01204 492 088 CANWEST MEDIAWORKS: Moody's Confirms B2 Sr. Subordinate Rating -------------------------------------------------------------- Moody's Investors Service confirmed CanWest MediaWorks Inc.'s Ba3 Corporate Family Rating and B2 Senior Subordinate rating. At the same time, Moody's changed CanWest's speculative grade liquidity rating to SGL-2 from SGL-3. The long-term ratings reflect a Ba3 Probability of Default and an LGD5 (87%) assessment on the senior subordinated notes. This action concludes the rating review commenced in July 2006. The outlook is negative. In its decision to confirm the ratings, Moody's stated that while CanWest's recent underperformance has significantly weakened the company's key credit metrics, the potential for its Canadian television operations to improve from a historically low base in addition to ongoing cost reduction measures should help reduce adjusted consolidated leverage to under 5x and produce low single-digit free cash flow to debt by the end of 2008. Moody's also recognized the significant and established positions CanWest maintains in the Canadian newspaper publishing sector and the value of its cash yielding investments in Australia's Network TEN and other global media properties. Finally, Moody's noted that it believes CanWest has both the ability and desire to strengthen its balance sheet, which could occur through further asset sales within the near term. The negative outlook reflects Moody's view that CanWest's key credit metrics based on its current set of assets will remain weakly positioned within the Ba3 rating category over the next couple of years. Additionally, while Moody's expects improved results from the company's Canadian television business, supporting trends are only very recent and these trends need to be sustained in order for the current ratings to hold. Moody's noted that should CanWest's current review of opportunities for its assets in the South Pacific result in a sale of some of those assets, CanWest's ratings have the potential to improve depending on how any proceeds are used. The change in CanWest's SGL rating to SGL-2 from SGL-3 follows the reduction in CanWest's legal entity bank facility usage from asset sale proceeds in addition to recent amendments to its banking covenants, which have eased liquidity pressures, such that Moody's now considers CanWest's liquidity position to be good. Rating Actions CanWest MediaWorks Inc. * Speculative Grade Liquidity Rating, upgraded to SGL-2 from SGL-3 * Outlook, changed to negative from rating under review CanWest MediaWorks Inc. is a communications holding company based in Winnipeg, Manitoba Canada, with interests in TV, radio and publishing operations in Canada, Australia, New Zealand, and other international locations. CAPRICORN DESIGN: Names Elizabeth Arakapiotis Liquidator -------------------------------------------------------- Elizabeth Arakapiotis of Kallis & Co. was appointed Liquidator of Capricorn Design Limited on Nov. 2 for the creditors' voluntary winding-up procedure. The company can be reached at: Capricorn Design Limited Unit C5 Seedbed Centre Davidson Way Romford Essex RM7 0AZ United Kingdom Tel: 01708 766 954 Fax: 01708 766 954 CORPACK INDUSTRIES: Brings In KPMG as Joint Administrators ---------------------------------------------------------- Richard Dixon Fleming and Allan Watson Graham of KPMG LLP were appointed joint administrators of Corpack Industries Ltd. (Company Number 03180487) on Nov. 1. KPMG LLP -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the U.K. providing audit, tax and advisory services. Headquartered in Knutsford, England, Corpack Industries Ltd. -- http://www.corpack.co.uk/-- designs and manufactures packaging materials. CORPACK INDUSTRIES: KMPG LLP Selling Corrugated Box Manufacturer ---------------------------------------------------------------- Allan Graham, Blair Nimmo, Richard Fleming and Jonathan Pope, in their capacity as joint administrators of Corpack Industries Ltd., are offer to sell the company's businesses and assets. Corpack's principal businesses include: * Integrated converters: (a) Rowpak Containers Limited -- manufactures printed and plain corrugated boxes; -- long leasehold premises of 120,000 sq. ft. in Audenshaw, Manchester; -- 2.2-meter corrugator, casemakers and dye cutters; -- annual turnover of around GBP15 million; and -- 175 employees. (b) Glampak Limited -- manufactures litho laminated cartons and point of sale material, and trade supplier of single faced corrugated boxes; -- freehold premises of 65,000 sq. ft. in Tonypandy, South Wales; -- corrugators and extensive range of laminating and converting plant; -- annual turnover of around GBP4 million; and -- 65 employees. * Sheet plants: (a) Doncaster Packaging Limited -- manufactures printed and plain corrugated boxes; -- leasehold premises of 42,000 sq. ft. and long leasehold premises of 21,000 sq. ft. in Doncaster; -- extensive range of converting plant; -- annual turnover of GBP10 million; and -- 120 employees (b) Alexander Box Co. Limited -- manufactures printed and plain corrugated boxes -- leasehold premises of 30,000 sq. ft. in Cumbernauld -- extensive range of converting plant -- annual turnover of around GBP3 million; and -- 42 employees * Point of Sale: (a) Doncaster Screenprint Limited -- manufactures high quality printed point of sale packaging and display material; -- leasehold premises of 20,000 in Doncaster; -- digital/screen printing and converting plant; -- annual turnover of around GBP3 million; and -- 50 employees. (b) Clark Stephen Limited -- manufactures high quality printed point of sale packaging and display material; -- freehold premises of 29,000 sq. ft. and leasehold 11,000 sq. ft. in Cumbernauld; -- screen printing and converting plant; -- annual turnover of around GBP4 million; and -- 42 employees. Inquiries can be addressed to: Richard Voice or Ben Gaster KPMG LLP 2 Cornwall Street Birmingham B3 2DL United Kingdom Tel: 0121 609 5885 Fax: 0121 609 5899 E-mail: richard.voice@kpmg.co.uk ben.gaster@kpmg.co.uk KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. CROSSCO 925: Creditors Confirm Liquidators' Appointment ------------------------------------------------------- Creditors of Crossco 925 Limited (formerly Indigo Software Limited) confirmed on Nov. 1 the appointment of David Malcolm Walker and Ian David Green of PricewaterhouseCoopers LLP as the company's Joint Liquidators. The company can be reached at: Crossco 925 Limited Indigo House Belmont Business Park Durham County Durham DH1 1TW United Kingdom Tel: 0191 375 6700 Fax: 0191 384 2288 EIRWALES GLASS: Claims Filing Period Ends Dec. 14 ------------------------------------------------- Creditors of Eirwales Glass Ltd. (Gary Corby Tyres and Centres Ltd. and Ultra Performance Wheels Ltd.) have until Dec. 14 to send in their names and addresses, with particulars of their debts or claims and the names and addresses of their Solicitors (if any) to appointed Liquidator Stephen John Burkinshaw at: H R Harris & Partners 44 St. Helen's Road Swansea SA1 4BB United Kingdom The company can be reached at: Eirwales Glass Ltd. 62-70 Dew Street Haverfordwest Dyfed SA611NR United Kingdom Tel: 01437 767 688 Fax: 01437 765 399 ELEVATOR PRINTING: Taps Liquidator from Fisher Partners ------------------------------------------------------- Stephen M. Katz of Fisher Partners was appointed Liquidator of Elevator Printing Services Limited (formerly Flying Colours Printing Services Limited) on Nov. 1 for the creditors' voluntary winding-up procedure. The company can be reached at: Elevator Printing Services Limited 33 Fitzroy Street London W1T 6DU United Kingdom Tel: 020 7631 0628 Fax: 020 7631 0652 EMERALD RECRUITMENT: Hires Joint Administrators from Menzies ------------------------------------------------------------ Paul David Williams and Andrew Gordon Stoneman of Menzies Corporate Restructuring were appointed joint administrators of Emerald Recruitment (GB) Ltd. (Company Number 05636545) on Nov. 1. Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- provides corporate restructuring services including: services for directors or stakeholders of troubled businesses; services to Lenders of troubled businesses; raising rescue funding at short notice; and forensic and fraud services. Emerald Recruitment (GB) Ltd. can be reached at: Unit 8-9 11-17 Fowler Road Hainault Business Park Ilford Essex IG6 3UJ United Kingdom Tel: 020 8500 7500 EUROSAIL 2006-3NC: Moody's Assigns Ba2 Rating on GBP4-Mln Notes --------------------------------------------------------------- Moody's Investors Service assigned definitive long-term credit ratings to these Notes to be issued by Eurosail 2006-3NC plc: -- EUR25,000,000 Class A1a Mortgage Backed Floating Rate Notes due September 2024: Aaa; -- US$60,000,000 Class A1b Mortgage Backed Floating Rate Notes due September 2024: Aaa -- GBP110,000,000 Class A1c Mortgage Backed Floating Rate Notes due September 2024: Aaa; -- US$145,000,000 Class A2b Mortgage Backed Floating Rate Notes due September 2044: Aaa; -- GBP35,250,000 Class A2c Mortgage Backed Floating Rate Notes due September 2044: Aaa; -- EUR128,000,000 Class A3a Mortgage Backed Floating Rate Notes due September 2044: Aaa; -- GBP80,200,00 Class A3c Mortgage Backed Floating Rate Notes due September 2044: Aaa; -- Class A3c Detachable Coupons payable until December 2009: Aaa; -- EUR48,800,000 Class B1a Mortgage Backed Floating Rate Notes due September 2044: Aa2; -- EUR20,000,000 Class C1a Mortgage Backed Floating Rate Notes due Sept 2044: A2; -- GBP9,850,000 Class C1c Mortgage Backed Floating Rate Notes due September 2044: A2; -- EUR6,050,000 Class D1a Mortgage Backed Floating Rate Notes due September 2044: Baa3; -- GBP11,000,000 Class D1c Mortgage Backed Floating Rate Notes due September 2044: Baa3; -- GBP10,455,000 Class DTc Mortgage Backed Floating Rate Notes due September 2044: Baa1; and -- GBP4,080,000 Class E1c Mortgage Backed Floating Rate Notes due September 2044: Ba2. Moody's has not assigned ratings to the Class ETc and the Class FTc Notes. The currency denominations within each separate class of note will rank pari-passu with each other in all respects. The currency risk will be covered via various currency swaps with one or more swap counterparties. This is the eighteenth RMBS-transaction of non-conforming, first and second ranking mortgage loans originated by Southern Pacific Mortgage Limited and Southern Pacific Personal Loans Limited and the third securitization under the EUROSAIL name. Capstone Mortgage Services Limited, a wholly owned subsidiary of Lehman Brothers, is the primary mortgage servicer and cash/bond administrator to the transaction. Homeloan Management Ltd (SQ2), a wholly owned subsidiary of Skipton Building Society, is the standby mortgage servicer and standby cash/bond administrator. Barclays Bank PLC will be the GIC provider. Investors in the Class A3c Detachable Coupons do not receive any payments of principal, and will be paid interest at a rate of 1% for quarters 1 to 4, increasing to 1.7% in quarters 5 and 6, 2.25% in quarter 7, 2.5% in quarter 8, 2.75% in quarters 9 and 10 and 3% in quarters 11 and 12, calculated on the sterling equivalent of the outstanding balance of the Class A1, A2 and A3 Notes. The structure of this transaction is similar to that of Eurosail 2006-1 with a hedge of the fixed rate loans margin by mean of a swap instead of a cap, but this transaction has an interest only tranche, the Class A3c. As in previous transactions, the DTc Notes are not backed by mortgage collateral but will be paid back by available excess spread. Interest payments on the DTc Notes rank pari passu with payments to the D1 Notes and Principal on the DTc Notes will be paid from the Revenue Waterfall after any top-up to the Reserve Fund -- up to 60% of the closing balance of the DTc Notes on the immediately preceding IPD, unless this is less than or equal to 25% of the initial balance of the DTc Notes in which case available revenue will be applied to pay down the DTc Notes. At the closing date, the transaction will incorporate a cash reserve to mitigate the reduced interest rate on discounted loans during the first year. A fixed cash amount will be withdrawn from the Discount Margin Reserve Ledger on each of the first four Interest Payment Dates (1st IPD GBP3,758,708, 2nd IPD GBP2,860,228, 3rd IPD GBP2,614,807 and 4th IPD GBP2,548,927) and will flow through the revenue waterfall as available revenue. The Issuer has entered into a fixed/floating rate swap agreement mitigate the potential variations between mortgage loan LIBOR and the loans in the pool that carry fixed interest rate (around 68.4% for a period expiring on or before September 2009). Under this swap agreement, the Issuer will pay the interest received from the fixed rate loans and will receive from the swap counterparty LIBOR plus a margin determined at closing over the average of the aggregate of the principal balances of the fixed rate loans in the mortgage pool as of the second day of each of the calendar months falling during the interest period. The definitive ratings of the A Notes, the B1 Notes, the C1 Notes, the D1 Notes and the E1c Notes are based upon an 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. A level of protection to investors in the Notes (excluding the DTc Notes) will be the Reserve Fund, which on closing will equal GBP2,550,000 or 0.50% of the original transaction size (excluding DTc Notes). The ratings address the expected loss posed to investors by the legal final maturity. In Moody's opinion, the structure allows for the timely payment of interest and ultimate payment of principal by the legal final maturity. FIXED INCOME: Moody's Cuts Rating on Oval Series 2 Notes to Ba2 --------------------------------------------------------------- Moody's Investors Service downgraded to Ba2 from Ba1 the Oval Series 2 EUR75,000,000 Credit-Linked Notes due 2009 issued by Fixed Income Diamond Collection Plc. This downgrade is the result of a negative credit migration in the underlying pool. GRANGE WELDING: Creditors Confirm Liquidator's Appointment ---------------------------------------------------------- Creditors of Grange Welding (Wolverhampton) Limited confirmed Nov. 1 the appointment of Roderick Graham Butcher of Butcher Woods as the company's Liquidator. The company can be reached at: Grange Welding (Wolverhampton) Limited Unit 12 Sprint Industrial Estate Station Road Four Ashes Wolverhampton West Midlands WV107DA United Kingdom Tel: 01902 791 303 Fax: 01902 798 714 GRASSLAND SERVICES: Liquidators Set Dec. 8 Claims Bar Date ---------------------------------------------------------- Creditors of Grassland Services Limited have until Dec. 8 send their names and addresses and particulars of their claims to appointed Joint Liquidators Matthew Colin Bowker and David Antony Willis at: Jacksons Jolliffe Cork Lowgate House Lowgate Hull HU1 1EL United Kingdom Headquartered in Hull, England, Grassland Services Limited -- http://www.grassland-services.co.uk/-- offers maintenance and servicing of various grass care equipment for professional users such as golf clubs and local authorities etc. The company also engages in the buy and sell of quality used machinery for clients throughout the U.K. Its products include automatic robot lawnmowers and vacuum cleaners, diesel tractors, ride-on petrol lawnmowers, brushcutters, trampolines, among others. INDUSTRIA ENGINEERING: Taps Menzies as Joint Administrators ----------------------------------------------------------- Jason James Godefroy and Paul John Clark of Menzies Corporate Restructuring were appointed joint administrators of Industria Engineering Products Ltd. (Company Number 00513697) on Nov. 1. Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- provides corporate restructuring services including: services for directors or stakeholders of troubled businesses; services to Lenders of troubled businesses; raising rescue funding at short notice; and forensic and fraud services. Headquartered in Uxbridge, England, Industria Engineering Products Ltd. -- http://www.industria.co.uk/-- engages in component distribution for industrial and aerospace products. INDUSTRIA ENGINEERING: Industrial Product Supplier Up for Sale -------------------------------------------------------------- Jason Godefroy and Paul Clark, in their capacity as Joint Administrators of Industria Engineering Products Limited, are offering to sell the company's business and assets as a going concern. Industria Engineering distributes bearings, chains, v-belts, machined plastics, adhesives and sealants. The company, which has over 50 years of trading in the industry, posts an annual turnover of around GBP6 million. It has branches in Bristol, Glasgow, Leeds, Manchester, Nottingham and West Bromwich, and has its office and warehouse in Uxbridge. Inquiries can be addressed to: John Thompson Menzies Corporate Restructuring Tel: 020 7487 7240 Fax: 020 7487 7299 E-mail: jthompson@menzies.co.uk Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- provides corporate restructuring services including: services for directors or stakeholders of troubled businesses; services to Lenders of troubled businesses; raising rescue funding at short notice; and forensic and fraud services. INFORMATION TECHNOLOGY: Hires BDO Stoy as Joint Administrators -------------------------------------------------------------- Simon Edward Jex Girling and Graham David Randall of BDO Stoy Hayward LLP were appointed joint administrators of Information Technology Resource Ltd. (Company Number 03349922) on Nov. 1 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. Information Technology Resources Ltd. can be reached at: Kingsgate House Church Road Kingswood Bristol Avon BS15 4AU United Kingdom Tel: 0117 934 2800 INS NEWS: Taps Joint Administrators from Harrisons -------------------------------------------------- P.R. Boyle and J.C. Sallabank of Harrisons were appointed joint administrators of INS News Group Ltd. (Company Number 02823902) on Nov. 1. Harrisons -- http://www.harrisons.uk.com/-- provides advice and solutions to professional advisors who found their clients experiencing financial difficulties. Originally trading from offices in Reading and has added London, Manchester, Bristol and Derby and has associate offices in Grantham and Stockton on Tees. INS News Group Ltd. can be reached at: Unit 145 Wharfedale Road Winnersh Wokingham Berkshire RG41 5RB United Kingdom Tel: 0118 922 9404 JAMES JACKSON: Brings In RSM Robson to Administer Assets -------------------------------------------------------- Charles William Anthony Escott and Michael John Hore of RSM Robson Rhodes LLP were appointed joint administrators of James Jackson & Sons (Farmers) Ltd. (Company Number 00520054) on Oct. 26. RSM Robson Rhodes LLP -- http://www.robsonrhodes.co.uk/-- provides a wide range of auditing, assurance, advisory and compliance services for both private and public sectors. The firm is a member of the RSM International, the world's sixth largest international organization of accountants and business advisers. James Jackson & Sons (Farmers) Ltd. can be reached at: The Granary Home Farm Beningbrough York North Yorkshire YO3 01DB United Kingdom Tel: 01904 470 358 Fax: 01904 470 460 JAUNOIR LIMITED: Creditors' Meeting Slated for November 21 ---------------------------------------------------------- Creditors of Jaunoir Limited (Company Number 05592112) will meet at 10:00 a.m. on Nov. 21 at: RSM Robson Rhodes LLP 30 Finsbury Square London EC2P 2YU 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. 20 at: Kevin John Hellard Joint Administrator RSM Robson Rhodes LLP 30 Finsbury Square London EC2P 2YU United Kingdom Tel: +44 (0) 20 7251 1644 Fax: +44 (0) 20 7250 0801 RSM Robson Rhodes LLP -- http://www.robsonrhodes.co.uk/-- provides a wide range of auditing, assurance, advisory and compliance services for both private and public sectors. The firm is a member of the RSM International, the world's sixth largest international organization of accountants and business advisers. JUPITER INTERNATIONAL: Taps Bijal Shah to Liquidate Assets ---------------------------------------------------------- Bijal Shah of RE10 (South East) Limited was appointed Liquidator of Jupiter International Limited on Oct. 30 for the creditors' voluntary winding-up proceeding. The company can be reached at: Jupiter International Limited 41 Alicia Avenue Harrow Middlesex HA3 8HT United Kingdom Tel: 020 8907 8522 Fax: 020 8907 8522 KRS PROUD: Administrators to Sell Mobile Servicing & Repair Biz --------------------------------------------------------------- James Douglas Ernle Money and Myles Antony Halley at KPMG LLP, in their capacity as joint administrators of KRS Proud to Serve Limited, are offering to sell the company's business and assets. Headquartered in Kent, England, and occupying around 5,000 sq. ft. of office and servicing accommodation, KRS Proud to Serve operates 30 mobile servicing vehicles, which cater for specialist and fleet customers nationally. The assets for sale features: -- a predominantly blue-chip customer base along with established firms; -- turnover for the first three months 2006 of GBP975,000. -- forecast 2006 turnover of GBP3.8 million to GBP4 million. -- 41 employees of which 30 are skilled and experienced engineers. Inquiries can addressed to: Richard Harvey or David Davidson KPMG LLP Restructuring 8 Salisbury Square London EC4Y 8BB United Kingdom Tel: 020 7311 1000 Fax: 020 7694 3011 E-mail: david.davidson@kpmg.co.uk richard.harvey@kpmg.co.uk As reported in the TCR-Europe on Nov. 7, Mr. Money and Mr. Halley were appointed joint administrators of KRS Proud to Serve Ltd. (Company Number 05804527) on Oct. 25. KPMG LLP -- http://www.kpmg.co.uk/-- KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax- related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. M & M SALES: Claims Registration Ends Dec. 31 --------------------------------------------- Creditors of M & M Sales & Marketing Limited have until Dec. 31 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors, (if any) to appointed Joint Liquidator Ian J. Gold at: PKF (UK) LLP New Guild House 45 Great Charles Street Queensway Birmingham B3 2LX United Kingdom Headquartered in Willenhall, England, M & M Sales & Marketing Limited engages in the importation and sale of beers. MOUNTAIN TRADING: Taps Joint Administrators from Kroll ------------------------------------------------------ Philip Francis Duffy and Simon Wilson of Kroll Ltd. were appointed joint administrators of Mountain Trading Ltd. (Company Number 4413840) on Nov. 1. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Mountain Trading Ltd. can be reached at: Lake Road Bowness on Windermere Windermere Cumbria LA23 3BJ United Kingdom Tel: 015394 447 86 NTL INC: Unveils "Virgin Media" After Telewest-Virgin Merger ------------------------------------------------------------ Virgin Mobile and ntl Telewest unveiled Nov. 8 the merged company's future name and logo. The re-branded company will be called Virgin Media and launches in the first quarter of 2007. Virgin Media will offer a 'quadplay' of digital TV, broadband, mobile and home phone for entertainment and communications services. With major operational changes already underway at ntl Telewest, Virgin Media promised to live up to Virgin's long-established reputation for offering world class customer service. To help accelerate this transformation, the company has recently committed an additional GBP5 million in 2006 to improve customer care, ahead of the launch of Virgin Media. Until the re-brand in early 2007, ntl Telewest will continue to provide services under its existing brand name. Virgin Mobile will continue as part of the new Virgin Media group. Going forward, delivering a wide range of outstanding content across multiple platforms will be an important focus for the re-branded company. "Virgin Media will shake up the market by bringing the Virgin traditions of value-for-money, brilliant customer service and innovation to the world of entertainment and communications," Steve Burch, president and CEO of NTL disclosed. "While work remains to be done between now and the re-brand, our decision to announce its name and logo today is a reflection of my confidence that we're well on the way to creating an organization that can live up to this vision by consistently putting the consumer first," he added. "Taking on the Virgin brand is about much more than a new name and logo above the door. ntl Telewest's management team has consistently demonstrated that it understands this and the commitment that's needed to succeed. Much has already been achieved and we're confident that the company's on track to deliver the Virgin promise when we re-brand next year," Gordon McCallum, chief executive officer of Virgin Management Limited and ntl Board member expressed. About the Company Headquartered in London, England, NTL Inc. (NASDAQ: NTLI) -- http://www.ntl.com/-- is a Delaware corporation and is publicly-traded is the US on the Nasdaq Global Select Market under the symbol "NTLI." The Company provides broadband, digital television, telephony, content and communications services, reaching over 50% of UK homes and 85% of UK businesses. * * * As reported in TCR-Europe on July 17, Fitch Ratings assigned NTL Cable PLC's upcoming GBP300 million 10-year senior notes an expected rating of B and a Recovery Rating of RR5. NTL Cable's existing senior notes remain on Rating Watch Negative. Fitch will resolve the Rating Watch status on the NTL Cable notes and assign final rating to the new notes upon completion of the new senior note issue. The final rating is contingent on the receipt of final documents conforming to information already received. At the same time the agency has affirmed NTL Inc's Issuer Default rating at B+ with Stable Outlook and its Short-term ratings at B. NTL Investment Holdings Limited's GBP5.28 billion senior secured credit facilities are affirmed at BB+ and Recovery Rating RR1. NTL INC: Prepares GBP5-Billion Merger Offer for ITV --------------------------------------------------- NTL Inc. readied a GBP5 billion offer for ITV Group PLC on Nov. 11, AFX News Limited cited the Financial Times. According to FT, NTL will offer GBP5 billion in cash for ITV, with an equity option that would limit the increase in its debt burden if the deal pushes through. NTL confirmed Nov. 9 that it advised ITV of its interest in exploring a possible combination transaction and has scheduled an initial conversation with ITV to that end. "This process is at a very preliminary stage and there is no assurance that these discussions will lead to any offer being made for ITV," NTL stated. ITV also confirmed in a statement that it had been approached by NTL but said there had not yet been any meeting between the two parties. "The board of ITV confirms that it has very recently received from the Board of NTL Inc. a highly tentative expression of interest in holding discussions about a possible combination of NTL with ITV," ITV said. "In the interests of its shareholders, the board of ITV has indicated its willingness to listen to any bona fide proposal, but to date no meeting has been held nor has any proposal been received." About ITV PLC Headquartered in London, England, ITV PLC -- http://www.itvplc.com/-- is a U.K. media company, owning all of the regional Channel 3 licenses in England and Wales. The company wholly owns three leading free-to-air digital channels: ITV2, ITV3 and ITV4. It owns the market leading cinema screen advertising businesses in the U.K. and Republic of Ireland and has similar joint ventures in continental Europe and the United States. About NTL Inc. Headquartered in London, England, NTL Inc. (NASDAQ: NTLI) -- http://www.ntl.com/-- is a Delaware corporation and is publicly-traded is the US on the Nasdaq Global Select Market under the symbol "NTLI." The Company provides broadband, digital television, telephony, content and communications services, reaching over 50% of UK homes and 85% of UK businesses. * * * As reported in TCR-Europe on July 17, Fitch Ratings assigned NTL Cable PLC's upcoming GBP300 million 10-year senior notes an expected rating of B and a Recovery Rating of RR5. NTL Cable's existing senior notes remain on Rating Watch Negative. Fitch will resolve the Rating Watch status on the NTL Cable notes and assign final rating to the new notes upon completion of the new senior note issue. The final rating is contingent on the receipt of final documents conforming to information already received. At the same time the agency has affirmed NTL Inc's Issuer Default rating at B+ with Stable Outlook and its Short-term ratings at B. NTL Investment Holdings Limited's GBP5.28 billion senior secured credit facilities are affirmed at BB+ and Recovery Rating RR1. NTL INC: Posts GBP96.1 Million Net Loss for Third Quarter 2006 -------------------------------------------------------------- NTL Inc. released its unaudited financial results for the third quarter ended Sept. 30, 2006. The company's condensed consolidated income statement showed a GBP96.1 million net loss on GBP1.02 billion revenues for the third quarter ended Sept. 30, 2006, compared with a GBP52.1 million net loss on GBP482.7 million revenues for the same period in 2005. As of Sept. 30, 2006, the company's condensed consolidated balance sheet revealed GBP11.19 billion in total assets, GBP7.84 billion in total liabilities and GBP3.35 billion in shareholders' equity. The company's net debt as of Sept. 30, 2005 is GBP5.9 billion. "On the day we are announcing that our new company name will become Virgin Media, I am pleased to announce continued improvement in our results with strong growth in OCF. Cable ARPU, RGU per customer and triple play penetration have all improved due to our strategy of focusing on quality customers," Steven Burch, NTL CEO disclosed. "Gross additions also increased sharply, reflecting the success of our reinvigorated marketing and we have a firm plan in place to address our historical churn issues. We remain firmly on track to achieve an annual GBP250 million synergy run rate by the end of 2007 and we realized estimated savings of GBP28 million during the quarter," he added. A full-text copy of NTL Inc. second quarter results is available at no charge at http://ResearchArchives.com/t/s?14d4 About NTL Inc. Headquartered in London, England, NTL Inc. (NASDAQ: NTLI) -- http://www.ntl.com/-- is a Delaware corporation and is publicly-traded is the US on the Nasdaq Global Select Market under the symbol "NTLI." The Company provides broadband, digital television, telephony, content and communications services, reaching over 50% of UK homes and 85% of UK businesses. * * * As reported in TCR-Europe on July 17, Fitch Ratings assigned NTL Cable PLC's upcoming GBP300 million 10-year senior notes an expected rating of B and a Recovery Rating of RR5. NTL Cable's existing senior notes remain on Rating Watch Negative. Fitch will resolve the Rating Watch status on the NTL Cable notes and assign final rating to the new notes upon completion of the new senior note issue. The final rating is contingent on the receipt of final documents conforming to information already received. At the same time the agency has affirmed NTL Inc's Issuer Default rating at B+ with Stable Outlook and its Short-term ratings at B. NTL Investment Holdings Limited's GBP5.28 billion senior secured credit facilities are affirmed at BB+ and Recovery Rating RR1. PPN JOINERY: Joint Liquidators Take Over Operations --------------------------------------------------- Matthew Colin Bowker and David Antony Willis both of Jacksons Jolliffe Cork were appointed Joint Liquidators of PPN Joinery Services Limited on Oct. 31 for the creditors' voluntary winding-up proceeding. The company can be reached at: PPN Joinery Services Limited Unit 32 Carr Grange Doncaster South Yorkshire DN4 5HY United Kingdom Tel: 01302 730 999 PRISTINE ENGINEERING: Brings In SFP as Joint Administrators ----------------------------------------------------------- Simon Franklin Plant and Daniel Plant of SFP were appointed joint administrators of Pristine Engineering (U.K.) Ltd. (Company Number 04265770) on Oct. 31. The administrators can be reached at: Simon Franklin Plant and Daniel Plant SFP 9 Ensign House Admirals Way Marsh Wall London E14 9XQ United Kingdom Tel: 020 7538 2222 Headquartered in Bilston, England, Pristine Engineering (U.K.) Ltd. manufactures metal structures and parts. SACHS FAHRZEUG: Exits Insolvency Zone After Management Buy-Out -------------------------------------------------------------- A management buyout completed on Nov. 3 saved Sachs Fahrzeug- und Motorentechnik GmbH, Germany's oldest motorcycle manufacturer, from insolvency, Auto Industry states. Sachs will continue operating from its existing location in Nuremberg. According to the report, the company's insolvency proceedings, initiated in June 2006, were triggered by pensions liability inherited by Hercules Werke GmbH, which Sachs acquired in the 1960s. Sachs is represented in the U.K. by distributor 3X. Headquartered in Nuremberg, Germany, Sachs Fahrzeug- und Motorentechnik GmbH -- http://www.sachsmotorcycles.co.uk/-- which succeeds Hercules Werke, makes small motorcycles and supplies small engines to third-party motorcycle makers. SERVICE CENTRE: Creditors' Claims Due Dec. 11 --------------------------------------------- Creditors of The Service Centre (U.K.) Limited have until Dec. 11 to send in their full names and addresses, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator Gary Bell at: Cowgill Holloway Business Recovery LLP Regency House 45-51 Chorley New Road Bolton BL1 4QR United Kingdom SOCCERZONE LIMITED: Five-a-Side Soccer Center Up for Sale --------------------------------------------------------- Joe McLean and Keith Hinds, in their capacity as Joint Administrators of SoccerZone Limited, are offering to sell the business and assets of the Bradford-based company. Features: -- nine-hole urban golf course with irrigated greens and tees (freehold); -- five Astroturf football pitches (long leasehold); -- bar and changing facility; -- possibilities for further expansion; and -- total site area of 37 acres. Inquiries can be addressed to: Lucy Henderson Grant Thornton U.K. LLP Tel: 0113 200 1633 Fax: 0113 246 0828 E-mail: lucy.henderson@gtuk.com Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- provides value-added professional services as assurance services, compensation and benefits, merger and acquisition transaction services, management advisory services, tax consulting and valuation services. SOUTH EASTERN: Brings In Liquidator from Bond Partners ------------------------------------------------------ T. Papanicola of Bond Partners LLP was appointed Liquidator of South Eastern Plant Hire Ltd. on Oct. 27 for the creditors' voluntary winding-up proceeding. The company can be reached at: South Eastern Plant Hire Ltd. Unit 2 Pickhill Business Centre Smallhythe Road Tenterden Kent TN307LZ United Kingdom Tel: 01580 761 818 SPIRIT EVENTS: Michael Young Leads Liquidation Procedure -------------------------------------------------------- Michael Young of Vantis was appointed Liquidator of Spirit Events Limited on Nov. 2 for the creditors' voluntary winding-up procedure. The company can be reached at: Spirit Events Limited 5 Creaseys Row Sundridge Road Ide Hill Sevenoaks Kent TN146JT United Kingdom Tel: 01883715587 THREE COOKS: Appoints Tenon Recovery as Administrators ------------------------------------------------------ Steven John Parker and Trevor John Binyon of Tenon Recovery were appointed joint administrators of Three Cooks Ltd. (Company Number 00091981) on Nov. 1. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Three Cooks Ltd. can be reached at: Bargate Drive Wolverhampton West Midlands WV6 0QW United Kingdom Tel: 01902 711 885 TRANS-EUROPEAN: Taps Begbies Traynor to Administer Assets --------------------------------------------------------- Robert Michael Young and Ian Michael Rose of Begbies Traynor were appointed joint administrators of Trans-European Training Ltd. (Company Number 01964291) on Oct. 20. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Trans-European Training Ltd. can be reached at: 1B George Street Newcastle Staffordshire ST5 1JX United Kingdom Tel: 01782 711 927 Fax: 01782 711 948 VIATEL HOLDING: Auditors Express Going Concern Doubt ---------------------------------------------------- Deloitte & Touche LLP expressed substantial doubt about Viatel Holding (Bermuda) Limited' ability to continue as a going concern after auditing the company's financial statements for company's financial statements for the fiscal years ended Dec. 31, 2005 and 2004. The auditing firm pointed to the company's recurring losses from operations and its difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. At Dec. 31, 2005, the company's balance sheet showed US$35.9 million in stockholders' deficit, compared with a US$35.4 stockholders' equity at Dec. 31, 2005. For the 12-month period ended December 2006, the company posted a US$63.4 million net loss on US$20.6 million of total revenue, compared with a US$47.2 million net loss on US$14 million of total revenue. Loan Agreements In March 2006, the Company received US$8.8 million in additional financing from: -- Morgan Stanley US$6.9 million; -- Varde US$1.7 million; and -- Stonehill US$0.2 million. This was by way of the issuance of further loan notes on substantially the same terms as the New Notes. As with the New Notes, interest on these additional loan notes is payable in cash only from July 1, 2006. The Company is in discussions with the relevant investors in relation to the grant of a waiver allowing the Company to satisfy interest payments through the issuance of additional loan notes. In March 2006, the Company received proceeds of US$8.8 million from the sale of its investment in Cybernet to Swisscom Fixnet AG. The operations of Cybernet have been shown as "discontinued operations" in the statement of operations for the years ended December 31, 2005, 2004 and 2003. The assets and liabilities of Cybernet have been shown as "Assets held for sale" and "Liabilities held for sale" respectively, as at Dec. 31, 2005, and 2004. In June 2006, the Company completed the sale of certain of its network business to Global Voice Group Limited for, among other consideration, a payment of approximately US$23.7 million in cash. This transaction should provide adequate funding for the remainder of 2006 but it is contemplated that, by reference to current business plan projections and absent further cash generative transactions, further funding will be required in 2007. Viatel -- http://www.viatel.com/-- is the builder-operator- owner of a state-of-the-art pan-European fiber-optic network and a provider of clear channel broadband, IP transit and transport, and virtual private networks to corporations, communications carriers, Internet service providers and other wholesale customers, and end-user business customers. It maintains its European headquarters in the United Kingdom. WESTLINK EXPRESS: Taps Harrisons as Joint Administrators -------------------------------------------------------- P.R. Boyle and J.C. Sallabank of Harrisons were appointed joint administrators of Westlink Express Transport Ltd. (Company Number 01544025) on Nov. 1. Harrisons -- http://www.harrisons.uk.com/-- provides advice and solutions to professional advisors who found their clients experiencing financial difficulties. Originally trading from offices in Reading and has added London, Manchester, Bristol and Derby and has associate offices in Grantham and Stockton on Tees. Westlink Express Transport Ltd. can be reached at: Euro Way Blagrove Swindon Wiltshire SN5 8YW United Kingdom Tel: 01793 541 141 WINNER PRODUCE: Claims Filing Period Ends Dec. 15 ------------------------------------------------- Creditors of Winner Produce Limited have until Dec. 15 to send their names and addresses, and particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator Paul Anthony Saxton at: Elwell Watchorn & Saxton LLP 109 Swan Street Sileby Leicestershire LE12 7NN United Kingdom The company can be reached at: Winner Produce Limited 12 The Arcade Leicester Road Wigston Leicestershire LE181NZ United Kingdom Tel: 0116 288 1488 YELLO FLOORING: Hires Liquidator from Ashcrofts ----------------------------------------------- George Michael of Ashcrofts was appointed Liquidator of Yello Flooring Limited on Nov. 3 for the creditors' voluntary winding-up procedure. The company can be reached at: Yello Flooring Limited 63 Camden Road London NW1 9EU United Kingdom Tel: 0808 155 7143 * Cadwalader Names Special Counsel Across Practices and Offices --------------------------------------------------------------- Cadwalader, Wickersham & Taft LLP, disclosed of the promotion of 24 attorneys to the position of Special Counsel. "Cadwalader has long recognized the need to develop and retain its most valuable asset - our attorneys," Robert O. Link, Jr., Cadwalader's Chairman, states. "The position of Special Counsel supports this effort and provides recognition and incentive for our experienced attorneys who have demonstrated excellent legal and management skills and expertise in their area of practice. Above and beyond that, these attorneys have worked very hard, have excellent working relationships with clients, train and mentor junior staff, and have made significant contributions to our pro bono, diversity, recruiting and marketing efforts. We are very fortunate to have so many talented and deserving lawyers to promote this year. We congratulate them on their achievements and look forward to their continued success with us." Aaron Benjamin, an attorney in the Capital Markets Department in Charlotte, focuses on structured finance, derivative products, other innovative limited-recourse lending transactions, secured transaction law and the federal securities laws. He received his J.D. from the University of Toronto Law School and his undergraduate degree, with high honors, from Carleton University. He is admitted to practice in the State of New York. Resident in the New York Litigation Department, Jeffrey S. Burman concentrates in the resolution of reinsurance disputes, including litigation, arbitration and mediation, and the representation of insurers, reinsurers, banks, investment banks, hedge funds, and private equity funds in insurance and reinsurance based transactions. He received his undergraduate degree from the University of Delaware, and his law degree from Rutgers University School of Law, where he was an editor of the Rutgers Law Journal. Following law school, he served as a judicial clerk for The Honorable James M. Havey, Presiding Judge of the Appellate Division of the Superior Court of New Jersey. He is a member of the bars of the States of New York and New Jersey and is admitted to practice before the United States District Courts for the Southern District of New York and the District of New Jersey. Elizabeth Butler, based in the New York Litigation Department, advises clients in a variety of areas of commercial law, including banking, insurance and reinsurance, contracts, antitrust, torts and fraud. She graduated cum laude and Phi Beta Kappa from the University of Minnesota and received her J.D. from Northwestern University School of Law. She is a member of the New York State bar. Anderson D. Caperton, resident in Charlotte, concentrates his practice in the area of real estate finance and securitization. A member of the Global Finance Department, he represents national, international, and regional financial institutions, investment banks, pension funds, and investors in connection with the financing, acquisition, disposition and leasing of commercial office buildings, regional shopping malls, shopping centers, hotels, industrial warehouses, merchandise marts, multifamily housing, and residential and planned unit developments. He received his undergraduate degree from University of Virginia, and his J.D. from University of North Carolina School of Law, where he was a member of the University of North Carolina Law Review and the founder of the North Carolina Banking Institute. He is admitted to practice in the State of North Carolina. Holly Marcille Chamberlain, also in the Global Finance Department in the Charlotte office, practices in the area of real estate finance and securitization. She represents national, international, and regional financial institutions, investment banks, pension funds, and investors in connection with the financing, acquisition, disposition and leasing of commercial office buildings, regional shopping malls, shopping centers, hotels, industrial warehouses, merchandise marts, multifamily housing, and residential and planned unit developments. She received her J.D. from New York Law School and her B.A. from Binghamton University. She is admitted to practices in New York, North Carolina and Massachusetts. Matthew Fenster focuses on litigation for a wide array of health care organizations involving general commercial matters, complex fraud, and health care reimbursement. He earned a B.S. from Cornell University and received his J.D. from New York University School of Law, where he was an editor of the NYU Journal of International Law & Politics. He is admitted to practice in the courts of the States of New York and New Jersey, and before the United States Court of Appeals for the Second Circuit and the United States District Courts for the Southern and Eastern Districts of New York. David Gingold, a member of the Capital Markets Department in New York, is experienced in corporate and capital markets transactions, including public and private debt and equity offerings (including synthetic CDOs and securitizations), public and private mergers and acquisitions, equity and credit derivatives, and various types of structured financings. He received his J.D. from the University of Michigan Law School and his B.A., with honors, from Williams College. He is admitted to practice in the State of New York. Nathan Haynes, a restructuring attorney in New York, has played significant roles in numerous chapter 11 cases, including Northwest Airlines, Lodgian, Inc., Casual Male Corp. and Bradlees Stores Inc. He is experienced in commercial litigation in state and federal bankruptcy court and with issues involving debtor and creditor rights, the enforcement of contractual obligations, loan work-outs, banking and insurance coverage. He is a magna cum laude graduate of Pace Law School, where he was Editor-in-Chief of the Pace Law Review, and a cum laude graduate of Northeastern University. He is admitted in New York and Massachusetts. Resident in the Global Finance Department in New York, Gerard Hefner represents institutional lenders in the real estate finance area, including in the origination of commercial mortgage loans and mezzanine loans secured by office buildings, apartment complexes, shopping malls, hotels, healthcare facilities and cell towers. He received his law degree from St. John's University School of Law, where he was a St. Thomas More Scholar and Associate Editor of the St. John's University Law Review. He received his undergraduate degree, summa cum laude, also from St. John' s University. He is admitted to practice in New York and the District of Columbia. Richard Jensen, resident in the New York office, concentrates in the area of asset securitization, with particular emphasis on the securitization of prime, alt-A and sub-prime residential mortgage loans. Clients he regularly represents include major mortgage, investment and commercial banks. He received his undergraduate degree from Villanova University and earned his law degree from St. John's University School of Law. He is admitted to practice in New York. Robert Kim, a New York capital markets lawyer, has developed expertise in every aspect of the commercial mortgaged-backed securities practice, including public and private CMBS offerings, real estate CDO transactions and structured mortgage and mezzanine loan participation transactions. He received his J.D. from Boston University School of Law and his A.B. from Harvard University. He is admitted to practice in the State of New York. A New York-based litigator, Stacey Lara concentrates in the areas of complex commercial and securities litigation, and antitrust related matters. She received her undergraduate degree from New York University and her J.D. from St. John's University School of Law, where she also served on the Moot Court Honor Society. She is admitted to practice in New York State and before the United States District Court for the Southern District of New York. Jeffrey Legault, a corporate lawyer in New York, represents large corporate entities as well as global investment banks in domestic and cross-border mergers and acquisitions, private placements and joint ventures. He received his undergraduate degree from Queen's University in Kingston, Ontario, Canada and his LL.B. from the Faculty of Law of the University of Toronto. He is admitted in New York and Canada. Ivan Loncar, an attorney in the Capital Markets Department in New York, focuses his practice on fixed income and credit derivatives and structured financial products. He represents dealers, banks and other financial institutions in connection with interest rate, total return, and credit default swaps and other structured financial products that combine securitization techniques and derivative products. He received his LL.B. from University of Belgrade School of Law and his LL.M. from Columbia University School of Law. He is admitted to practice in the State of New York. Michael C. Macchiarola, resident in New York, concentrates his practice on structured products transactions on behalf of investment banks, domestic and foreign commercial banks, and large hedge funds. He has experience with equity-linked and hedge-fund linked products as well as derivatives, particularly equity derivatives. He also advises on prime brokerage and stock loan matters. He received his J.D. from New York University School of Law, an M.B.A. from Columbia Business School, and an A.B. from The College of The Holy Cross. He is licensed to practice in New York. Geoffrey R. Maibohm, a Capital Markets attorney in Charlotte, handles all aspects of commercial mortgage-backed securities transactions, representing issuers, underwriters, servicers and subservicers, as well as co-lenders and participants in loans. He also has significant experience dealing with ongoing servicing issues. He graduated magna cum laude from the Syracuse University College of Law, where he was a member of the Law Review, and his B.A. from the State University of New York at Geneseo. He is admitted in North Carolina and New York. Richard Nugent, an attorney in the Tax Department, is resident in New York. A transactional lawyer with significant expertise in the tax aspects of public and private corporate mergers, acquisitions, and spin-offs, he also has experience advising clients on cross-border tax planning strategies, the tax consequences of restructurings and bankruptcies, and financing transactions. He received his B.A., summa cum laude, from Saint Peter's College, his J.D., with honors, from Rutgers School of Law, and his LL.M., with distinction, from Georgetown University Law Center. Following law school, he clerked for The Honorable Robert P. Ruwe of the United States Tax Court and The Honorable Richard F. Suhrheinrich of the United States Court of Appeals for the Sixth Circuit. He is admitted in New York. Matthew Robertson, resident in the Charlotte Global Finance Department, represents national, international and regional financial institutions, investment banks, and investors in connection with the financing of a wide range of commercial properties, including multi-state, multi-property mortgage loans and large, sophisticated financings involving multiple lenders and various levels of mortgage and mezzanine debt as well as the sale and transfer of various types of commercial loans. He received his B.A., with honors, from the University of Delaware, and his J.D. from Duke University School of Law. He is admitted in North Carolina. Jason Salman, resident in London, has worked on a wide range of corporate and restructuring matters throughout Europe and in Australia, including mergers and acquisitions, reorganizations and restructurings and general corporate governance and regulatory matters. He received his Bachelor of Economics degree and Bachelor of Laws degree from Murdoch University in Western Australia. He is admitted to practice in England and Wales and as a solicitor of the Supreme Court of Western Australia. Michelle R. Seltzer, a lawyer in the Business Fraud and Complex Litigation Group in Cadwalader's Washington, D.C. office, advises clients on a wide range of complex civil litigation matters and on a variety of criminal and regulatory issues, including Foreign Corrupt Practices Act, securities and other white collar crime matters. She received a B.A., with highest honors, from the University of Texas at Austin, and a J.D. from the Duke University School of Law. Following law school, she served as a clerk to United States District Court Judge John F. Nangle in the Southern District of Georgia. She is admitted to practice in the District of Columbia and in Georgia. Thomas Stimson, a member of the Business Fraud and Complex Litigation Group, resident in Washington, represents corporations and individuals in a wide variety of white collar criminal, regulatory, and complex civil litigation matters, including international corruption (arising under the Foreign Corrupt Practices Act), money laundering, securities, antitrust and intellectual property cases. He also conducts internal investigations and advises clients with regard to compliance and corporate governance issues. He received a B.A., with honors, from Iowa State University, and a J.D. from the University of Virginia, where he was a member of the Journal of Law & Politics. He is a member of the District of Columbia Bar and the Virginia State Bar. An attorney in Cadwalader's Capital Markets Department, Laura Swihart concentrates in commercial mortgage-backed securities, representing mortgage loan sellers, issuers and underwriters. She received her J.D. from New York University School of Law and her B.A., with honors, from the University of Connecticut. She is admitted to practice in the State of New York. Jackson Taylor, a member of the Financial Restructuring practice in London, advise creditors, insolvency practitioners, debtor companies and directors on a range of contentious and consensual insolvency processes as well as institutional creditors and ad hoc creditors' committees on restructuring financially distressed companies outside of formal insolvency proceedings. He graduated with double degrees, with honors, from The University of Melbourne, where he also obtained a Master of Laws degree. He also holds a Certificate of Proficiency in Insolvency from the UK Insolvency Practitioners Association. He is qualified as a barrister and solicitor. Joshua R. Weiss, a New York-based litigator, has experience in various areas of complex commercial litigation and arbitration, including banking and finance, swaps and derivatives, securities, contract, employment, trade secrets and unfair competition, bankruptcy, copyright and trademark, and insurance coverage litigation. He also has been involved in numerous international, multi-jurisdictional disputes. He received his undergraduate degree from The Johns Hopkins University, and his J.D., cum laude, from The Benjamin N. Cardozo School of Law, Yeshiva University. He is admitted to practice in New York State and before the United States District Courts for the Southern and Eastern Districts of New York. About Cadwalader, Wickersham & Taft LLP Cadwalader, Wickersham & Taft LLP -- http://www.cadwalader.com/ -- established in 1792, is one of the world's leading international law firms, with offices in New York, London, Charlotte, Washington and Beijing. Cadwalader serves a diverse client base, including many of the world's top financial institutions, undertaking business in more than 50 countries in six continents. The firm offers legal expertise in antitrust, banking, business fraud, corporate finance, corporate governance, environmental, healthcare, insolvency, insurance and reinsurance, litigation, mergers and acquisitions, private client, private equity, real estate, securities and financial institutions regulation, securitization, structured finance, and tax. ********* 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 * * *