/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061207.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, December 7, 2006, Vol. 7, No. 243 Headlines A U S T R I A ANGEL GEBAUDEREINIGUNG: Vienna Court Orders Business Shutdown ATLANTIS PERSONALLEASING: Vienna Court Shuts Down Business ARTIFEX-COMMUNICATIONS: Creditors' Meeting Slated for Dec. 19 ENTSORGUNGSPROFI PARADEISER: Creditors' Meeting Set for Dec. 13 JOHANN BRUNNER: St. Poelten Court Orders Branch Closure JOHANN MEISTER: Property Manager Declares Insufficient Assets MP FRAISSL: Linz Court Orders Business Shutdown PONZER TRANSPORT: Property Manager Declares Insufficient Assets POSTILLON SPEDITION: Creditors' Meeting Slated for December 20 PREISITZ LLC: Leoben Court Orders Business Closure C Y P R U S SHIP FINANCE: Hires Moore Stephens P.C. as Auditors SHIP FINANCE: Hikes Ordinary Cash Dividend to US$0.53 per Share SHIP FINANCE: Earns US$45.72 Million for Third Quarter 2006 SHIP FINANCE: S&P Lifts Rating to BB on Predictable Cash Flows F R A N C E ALCATEL-LUCENT: S&P Cuts Debt Ratings to BB- on Merger Approval ALCATEL-LUCENT: Alenia Unit Inks EUR661-Mln Deal with Globalstar ALCATEL-LUCENT: Inks Deal to Test Maxis Communications' WiMAX LEAR CORP: Moody's Lifts Ratings on Unit's Asset Disposal LUCENT TECHNOLOGIES: S&P Lifts Junk Ratings Following Merger MOSAIC COMPANY: Completes US$2 Billion Refinancing NEVRAX FRANCE: Gamers Start Campaign to Buy Out Bankrupt Firm NEXANS S.A.: Completes Deal to Acquire Olex for AU$515 Million NEXANS S.A.: S&P Affirms Low-B Ratings on Acquisition Closing G E R M A N Y AKTAON VERMOEGENSVERWALTUNGS: Claims Registration Ends Dec. 14 DAIMLERCHRYSLER AG: Eyes 24% Beiqi Foton Stake for CNY817 Mln DAIMLERCHRYSLER: Chrysler's Joe Eberhardt Moves to Mercedes-Benz IMTM INNOVATIVE: Claims Registration Ends December 11 JOSEF MOTTER: Claims Registration Ends December 12 KABEL DEUTSCHLAND: Moody's Keeps Stable Outlook on Ba3 Rating KAMO-BAU: Claims Registration Ends December 13 KOCH TRANSPORTTECHNIK: Claims Registration Ends December 13 KURT BUCHLOH: Claims Registration Ends December 15 LEAR CORP: Moody's Lifts Ratings on Unit's Asset Disposal PRESTIGE BEKLEIDUNGSGESELLSCHAFT: Claims Bar Date Ends Dec. 15 PROMISE-C: Fitch Keeps BB Rating on EUR6.5-Million Class E Notes PROMISE-I: Fitch Affirms BB Rating on EUR11.5-Mln Class E Notes SCHLEUTER VERWALTUNGS: Claims Registration Ends December 13 SCHUH-RAUSCH: Creditors' Meeting Slated for December 13 STATION PARK: Creditors' Meeting Slated for December 13 H U N G A R Y BORSODCHEM NYRT: Returned Shares Hike Treasury Stock I T A L Y IT HOLDING: Moody's Affirms B3 Rating on Improved Performance K A Z A K H S T A N AIKO LTD: Almaty Court Opens Bankruptcy Proceedings ALEX-TRADE LLP: Creditors' Claims Due Jan. 10, 2007 ATYRAU CONSTRUCTION: Claims Filing Period Ends Jan. 10, 2007 GAUHAR LLP: Claims Registration Ends Jan. 12, 2007 JAN-U-BEK: Creditors' Claims Due Jan. 12, 2007 KAMBIZ TRADING: Court Begins Bankruptcy Proceedings MECHANOMONTAGE OJSC: Creditors' Claims Due Jan. 12, 2007 MEGATEKS LLP: Claims Filing Period Ends Jan. 12, 2007 MONTAJNIK LTD: Claims Registration Ends Jan. 12, 2007 NAD FURNITURE: Proof of Claim Deadline Slated for Jan. 12, 2007 K Y R G Y Z S T A N ELADA-SERVICE LLC: Creditors' Claims Due Jan. 17, 2007 SHAKE HAND: Claims Filing Period Ends Jan. 19, 2007 TRANSPORT LINE: Claims Registration Ends Jan. 24, 2007 VITTA LLC: Creditors Must File Claims by Jan. 19, 2007 N E T H E R L A N D S ALCATEL-LUCENT: S&P Cuts Debt Ratings to BB- on Merger Approval ALCATEL-LUCENT: Alenia Unit Inks EUR661-Mln Deal with Globalstar ALCATEL-LUCENT: Inks Deal to Test Maxis Communications' WiMAX N O R W A Y AKER KVAERNER: Inks Deals to Modify Norsk Hydro's Brage Platform SHIP FINANCE: Hires Moore Stephens P.C. as Auditors SHIP FINANCE: Hikes Ordinary Cash Dividend to US$0.53 per Share SHIP FINANCE: Earns US$45.72 Million for Third Quarter 2006 SHIP FINANCE: S&P Lifts Rating to BB on Predictable Cash Flows P O L A N D BORSODCHEM NYRT: Returned Shares Hike Treasury Stock R U S S I A ADAMANTAN-FURNITURE: Court Names I. Gorn as Insolvency Manager AIR-SERVICE: Moscow Court Names I. Gorn as Insolvency Manager BIVERST CJSC: Court Starts Bankruptcy Supervision Procedure CHILDREN FASHION-KLIN: Court Names I. Gorn as Insolvency Manager CHUKHLOMSKIY WOOD: Asset Sale Slated for December 19 CHUPINSKIY ORE: Court Names I. Benyaminov as Insolvency Manager DIAMOND CJSC: Court Names S. Suvorov as Insolvency Manager ELETSKAYA TOBACCO: Lipetsk Bankruptcy Hearing Slated for Feb. 15 KIRSANOV-AUTO-TRANS: Tambov Court Starts Bankruptcy Supervision LARGE-GRAIN BUILDING: Court Names I. Gorn as Insolvency Manager LENINSKOYE OJSC: Orenburg Bankruptcy Hearing Slated for Dec. 12 MIKHAYLOVSKIY DIARY: Court Names E. Bogdanov to Manage Assets ORENBURGSKAYA OIL-GAS: Names S. Pototskaya to Manage Assets PROMSVYAZBANK: Fitch Changes Outlook on B+ IDR to Positive SPIROVO-WOOD CJSC: Court Names A. Lebedev as Insolvency Manager TEBLESHSKIY FLAX: Tver Court Names B. Yun as Insolvency Manager TNK-BP HOLDING: US$1-Billion Loan Attracts Little Interests S W I T Z E R L A N D AR-BAU: Liestal Court Suspends Bankruptcy Proceedings ARTPOWER LLC: Zug Court Suspends Bankruptcy Proceedings DISCOUNT LINE: Zug Court Suspends Bankruptcy Proceedings DURMULLER & SOHN: Luzern-Land Court Closes Bankruptcy Process F & R GASTRO: Luzern-Land Court Closes Bankruptcy Process HCA INC: Earns US$240 Million in Quarter Ended Sept. 30 JEANS STATION: Binningen Court Suspends Bankruptcy Proceedings ROHRER GENERALBAUUNTERNEHMUNG: Court Closes Bankruptcy Process SCHMID INFORMATIK: Court Closes Bankruptcy Proceedings SWIBRAS JSC: Liestal Court Starts Bankruptcy Proceedings ZENTRAL-TRANS: Willisau Court Starts Bankruptcy Proceedings U K R A I N E MOSAIC COMPANY: Completes US$2 Billion Refinancing TNK-BP HOLDING: US$1-Billion Loan Attracts Little Interests U N I T E D K I N G D O M AGENDA LEISURE: Up for Sale as Going Concern AKER KVAERNER: Inks Deals to Modify Norsk Hydro's Brage Platform ALPRO PRODUCTS: Brings In Begbies Traynor as Administrators ASSET CONSTRUCTION: Creditors Confirm Liquidator's Appointment B-LIVE ENTERTAINMENT: Appoints Gordon Craig to Administer Assets BETTA STATIONERS: Appoints Barry P. Knights as Liquidator BRAVO! FOODS: Sept. 30 Balance Sheet Upside-Down by US$35.6 Mln BRECONRIDGE MANUFACTURING: Administrators Begin Asset Sale CONTRACT GAS: Taps Lloyd Biscoe to Liquidate Assets EASTMAN KODAK: Posts US$37 Mil. Net Loss in 2006 Third Quarter ENRON CORP: Plaintiffs Barred from Prosecuting Derivative Claims ENRON CORP: Court Approves Deseret Generation Settlement Pact FELDAROLL FOUNDRY: Taps Smith & Williamson as Administrators FLOWER SHOP: John Paul Bell Leads Liquidation Procedure FORD MOTOR: Moody's Junks US$3-Billion Senior Convertible Notes FORD MOTOR: Fitch Assigns B/RR4 Ratings to US$3-Billion Notes FORD MOTOR: S&P Junks Rating on Proposed US$3-Bil. Senior Debt FORD MOTOR: November U.S. Sales Down 10% Compared with Last Year FORD SMITH: Brings In D. L. Platt to Liquidate Assets GENERAL MOTORS: Kerkorian Sells Remaining 5% Stake to BofA HCA INC: Earns US$240 Million in Quarter Ended Sept. 30 J EDWARDS: Brings In Joint Administrators from Tenon Recovery KASHMALA AND ZARA: Names Harjinder Johal Liquidator KEYSTONE MEDIA: Brings In Mazars LLP to Administer Assets MARSHALL STREET: Hires J. N. Bleazard as Liquidator MASTERPLAN PUBLISHING: Creditors' Claims Due Jan. 30, 2007 NORLAND HALIFAX: Joint Liquidators Take Over Operations NTL INC: Declares Lack of Interest in Making ITV Offer P & H CONTRACT: Appoints Vantis as Joint Administrators RADIX MICRO: Calls In Liquidators from BRI Business Recovery REFCO INC: To Present 16 Witnesses at Plan Confirmation Hearing REFCO INC: Ch. 11 Trustee Wants US$101MM JPMorgan Claim Settled S.P.C. MOULDS: Claims Filing Period Ends Feb. 23, 2007 SEA CONTAINERS: Wants Richards Butler as Special Foreign Counsel SGM GROUP: Deloitte Selling Grass-Cutting Equipment Maker SOLUTIA INC: Court Approves January 15 Plan-Filing Deadline SOUTHWARK LAND: Creditors Confirm Liquidator's Appointment SURE GB: Appoints Administrator from K J Watkin T & C ELECTRICAL: Claims Registration Ends May 24, 2007 TONIC DESIGN: Taps Menzies to Administer Assets UNIVERSAL GRINDING: Appoints Administrators from Vantis VISION METALCRAFT: Appoints Liquidator from Findlay James WHITEOAK PRESS: Names T. Papanicola as Administrator * Fitch Eyes Further Slump in Credit Profiles for Auto Suppliers * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= ANGEL GEBAUDEREINIGUNG: Vienna Court Orders Business Shutdown ------------------------------------------------------------- The Trade Court of Vienna entered Oct. 18 an order shutting down the business of LLC Angel Gebaudereinigung (FN 238704k). Court- appointed property manager Michael Neuhauser recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Mag. Michael Neuhauser c/o Mag. Stefan Jahns Esslinggasse 9 1010 Vienna, Austria Tel: 536 50-0 Fax: 536 50-14 E-mail: officewien@aaa-law.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 8 (Bankr. Case No. 3 S 129/06z). Stefan Jahns represents Mag. Neuhauser in the bankruptcy proceedings. ATLANTIS PERSONALLEASING: Vienna Court Shuts Down Business ---------------------------------------------------------- The Trade Court of Vienna entered Oct. 18 an order shutting down the business of LLC Atlantis Personalleasing (FN 259713g). Court-appointed property manager Guenther Hoedl 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. Guenther Hoedl c/o Dr. Andrea Simma Schulerstrasse 18 1010 Vienna, Austria Tel: 513 16 55 E-mail: Hoedl@anwaltsteam.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 14 (Bankr. Case No. 2 S 140/06k). Andrea Simma represents Dr. Hoedl in the bankruptcy proceedings. ARTIFEX-COMMUNICATIONS: Creditors' Meeting Slated for Dec. 19 ------------------------------------------------------------- Creditors owed money by LLC ARTIFEX-COMMUNICATIONS (FN 98357v) are encouraged to attend the creditors' meeting at 11:00 a.m. on Dec. 19 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 23 (Bankr. Case No. 4 S 89/06z). Karl F. Engelhart serves as the court-appointed property manager of the bankrupt estate. Daniel Lampersberger represents Dr. Engelhart in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Karl F. Engelhart c/o Mag. Daniel Lampersberger Esteplatz 4 1030 Vienna, Austria Tel: 712 33 30-0 Fax: 712 33 30-30 E-mail: engelhart@csg.at ENTSORGUNGSPROFI PARADEISER: Creditors' Meeting Set for Dec. 13 --------------------------------------------------------------- Creditors owed money by LLC Entsorgungsprofi Paradeiser (FN 172121w) are encouraged to attend the creditors' meeting at 9:30 a.m. on Dec. 13 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Krems an der Donau Hall A 2nd Floor Krems an der Donau, Austria Headquartered in Horn, Austria, the Debtor declared bankruptcy on Oct. 18 (Bankr. Case No. 9 S 51/06g). Alois Autherith serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Alois Autherith Utzstrasse 13 3500 Krems, Austria Tel: 02732/83485 Fax: 02732/83485-10 E-mail: advoc.autham@netway.at JOHANN BRUNNER: St. Poelten Court Orders Branch Closure ------------------------------------------------------- The Land Court of St. Poelten entered Oct. 17 an order closing the Bureu branch of LLC Johann Brunner & Co (FN 21856t). Court- appointed property manager Walter Anzboeck recommended the business closure after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Walter Anzboeck Stiegengasse 8 3430 Tulln, Austria Tel: 02272/61 600 Fax: 02272/61 600-20 E-mail: anwalt@anzboeck.at Headquartered in Neuaigen, Austria, the Debtor declared bankruptcy on Oct. 9 (Bankr. Case No. 14 S 165/06i). JOHANN MEISTER: Property Manager Declares Insufficient Assets ------------------------------------------------------------- Dr. Michael Schwarz, the court-appointed property manager for LLC Johann Meister (FN 56451t), declared Oct. 17 that the Debtor's property is insufficient to cover creditors' claim. The Land Court of St. Poelten is yet to rule on the property manager's claim. Headquartered in Herzogenburg, Austria, the Debtor declared bankruptcy on March 13 (Bankr. Case No. 14 S 48/06h). The property manager can be reached at: Dr. Michael Schwarz Josefstrasse 13 3100 St. Poelten, Austria Tel: 02742/72222 Fax: 02742/72222-10 E-mail: kanzlei@tws-rae.at MP FRAISSL: Linz Court Orders Business Shutdown ----------------------------------------------- The Land Court of Linz entered Oct. 18 an order shutting down the business of LLC MP Fraissl (FN 250192f). Court-appointed property manager Georg Maxwald 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. Georg Maxwald Dametzstrasse 51 4020 Linz, Austria Tel: 77 11 41 Fax: 78 30 44 E-mail: maxwald-bauer@aon.at Headquartered in Linz, Austria, the Debtor declared bankruptcy on Oct. 13 (Bankr. Case No. 12 S 88/06p). PONZER TRANSPORT: Property Manager Declares Insufficient Assets --------------------------------------------------------------- Dr. Walter Anzboeck, the court-appointed property manager for LLC Ponzer Transport- u. Transportvermittlung (FN 168765i), declared Oct. 17 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 Kritzendorf, Austria, the Debtor declared bankruptcy on Sept. 21 (Bankr. Case No. 36 S 105/06t). The property manager can be reached at: Dr. Walter Anzboeck Stiegengasse 8 3430 Tulln, Austria Tel: 02272/61 600 Fax: 02272/61 600 20 E-mail: anwalt@anzboeck.at POSTILLON SPEDITION: Creditors' Meeting Slated for December 20 -------------------------------------------------------------- Creditors owed money by LLC Postillon Spedition (FN 251230g) are encouraged to attend the creditors' meeting at 8:30 a.m. on Dec. 20 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Salzburg Hall 256 2nd Floor Salzburg, Austria Headquartered in Salzburg, Austria, the Debtor declared bankruptcy on Oct. 18 (Bankr. Case No. 44 S 36/06b). Karin Wintersberger serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Karin Wintersberger Getreidegasse 31 5020 Salzburg, Austria Tel: 0662/844202 Fax: 0662/84420244 E-mail: office@drw.at PREISITZ LLC: Leoben Court Orders Business Closure -------------------------------------------------- The Land Court of Leoben entered Oct. 17 an order closing the business of LLC Preisitz (FN 79281s). Court-appointed property manager Werner Seifried recommended the business closure after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Mag. Werner Seifried Burggasse 40 8750 Judenburg, Austria Tel: 03572-82127 Fax: 03572-82127-4 E-mail: mag.seifried@derAnwalt.or.at Headquartered in Judenburg, Austria, the Debtor declared bankruptcy on Sept. 28 (Bankr. Case No. 17 S 73/06p). =========== C Y P R U S =========== SHIP FINANCE: Hires Moore Stephens P.C. as Auditors --------------------------------------------------- Ship Finance International Limited reveals that at the 2006 Annual General Meeting of the company on Dec. 1, 2006, these resolutions were passed to: -- reelect Tor Olav Troim as a Director; -- reelect Paul Leand Jr. as a Director; -- reelect Kate Blankenship as a Director; -- appoint Moore Stephens, P.C. as auditors and to authorize the Directors to determine their remuneration; -- approve an amendment to the Company's Bye-law 104. to change the requirements for the form of, and signatories to, the seal of the Company. About Ship Finance Headquartered in Bermuda, Ship Finance International Limited -- http://www.shipfinance.org/-- through its subsidiaries engages in the ownership and operation of oil tankers, including oil/bulk/ore (OBO) carriers. The Company operates through subsidiaries and partnerships located in Bermuda, Cyprus, Isle of Man, Liberia, Norway and Singapore. It is also involved in the charter, purchase and sale of vessels. * * * As reported in the TCR-Europe on Nov. 16, Moody's Investors Service affirmed Ship Finance International Ltd.'s ratings, including the Ba3 Corporate Family Rating, the Ba2 Senior Secured Bank Credit Facilities and the B1 Senior Unsecured Notes rating. Moody's said the ratings outlook remains stable. SHIP FINANCE: Hikes Ordinary Cash Dividend to US$0.53 per Share --------------------------------------------------------------- The Board of Directors of Ship Finance International Ltd. reviewed the long-term prospects for the Company including its significant fixed charter backlog and growth prospects, and decided to increase the ordinary cash dividend basis from US$0.45 per share to US$0.50 per share. In addition, the Board of Directors decided to pay a supplementary extraordinary dividend of US$0.03 per share, bringing the total dividend payment for the quarter to US$0.53 per share. The dividend will be paid on Dec. 21, to shareholders of record as of Dec. 7. The ex dividend date is Dec. 5, 2006. About Ship Finance Headquartered in Bermuda, Ship Finance International Limited -- http://www.shipfinance.org/-- through its subsidiaries engages in the ownership and operation of oil tankers, including oil/bulk/ore (OBO) carriers. The Company operates through subsidiaries and partnerships located in Bermuda, Cyprus, Isle of Man, Liberia, Norway and Singapore. It is also involved in the charter, purchase and sale of vessels. * * * As reported in the TCR-Europe on Nov. 16, 2006, Moody's Investors Service affirmed Ship Finance International Ltd.'s ratings, including the Ba3 Corporate Family Rating, the Ba2 Senior Secured Bank Credit Facilities and the B1 Senior Unsecured Notes rating. The ratings outlook remains stable. SHIP FINANCE: Earns US$45.72 Million for Third Quarter 2006 ----------------------------------------------------------- Ship Finance International Ltd. released its financial results for the third quarter and nine months ended Sept. 30, 2006. Ship Finance posted US$45.72 million in net profit against US$121.8 million in revenues for the third quarter of 2006, compared with US$65.27 million in net profit against US$118.4 million in revenues for same period in 2005. The company posted US$122.99 million in net profit against US$296.82 million in revenues for the first nine months of 2006, compared with US$126.47 million in net profit against US$295.57 in revenues for same period in 2005. The Company's net income for the third quarter of 2006 was reduced by a US$16.4 million unrealized loss, representing the change in the fair value of the Company's interest rate swaps related to its secured credit facilities. A part of the Company's debt is on floating rate terms and lower interest rates in the future will, if sustained, improve long-term earnings. For the first nine months of 2006, the Company estimates that a total of US$63.9 million ($0.88 per share) in profit share from Frontline Ltd. has accumulated. Based on U.S. GAAP, around US$43 million has been accounted for in the period, of which US$37.5 million was included in the third quarter. The unrecognized income of US$20.9 million will be recognized in the fourth quarter provided Ship Finance's vessels continue to earn in excess of the fixed charter rates received from Frontline Ltd. The single-hull VLCC "Front Tobago" has been sold for a gross sales price of US$45.0 million. Delivery to the new owners is expected in December 2007. The single-hull Suezmax "Front Sunda" will be converted to a heavy-lift vessel. The vessel will be delivered from the shipyard at the beginning of the second quarter of 2007. After delivery, the vessel will commence a new 10 year fixed- rate charter to Frontline Shipping II Limited. Two Suezmax newbuildings have been ordered in China for delivery in 2009. The vessels will be marketed for medium to long-term charters, consistent with the Company's strategy. About Ship Finance Headquartered in Bermuda, Ship Finance International Limited -- http://www.shipfinance.org/-- through its subsidiaries engages in the ownership and operation of oil tankers, including oil/bulk/ore (OBO) carriers. The Company operates through subsidiaries and partnerships located in Bermuda, Cyprus, Isle of Man, Liberia, Norway and Singapore. It is also involved in the charter, purchase and sale of vessels. * * * As reported in the TCR-Europe on Nov. 16, 2006, Moody's Investors Service affirmed Ship Finance International Ltd.'s ratings, including the Ba3 Corporate Family Rating, the Ba2 Senior Secured Bank Credit Facilities and the B1 Senior Unsecured Notes rating. Moody's said the ratings outlook remains stable. SHIP FINANCE: S&P Lifts Rating to BB on Predictable Cash Flows -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Bermuda-based Ship Finance International Ltd., a ship-owning company tied to Frontline Ltd., to 'BB' from 'BB-'. The outlook is stable. At the same time, Standard & Poor's raised its senior unsecured debt rating on Ship Finance's US$580-million bonds to 'B+' from 'B'. "The rating action reflects Ship Finance's better-than-expected operating and financial performance over the past three years, the recent change to a Frontline-independent management team, and expectations of continued stable and predictable cash flows through the company's largely long-term contract-based revenue structure," said Standard & Poor's credit analyst Per Karlsson. Total debt was US$1.74 billion at Sept. 30, 2006. Ship Finance benefits from relatively predictable cash flows, which are secured through long-term contracts. The stable outlook also reflects the continual favorable near-term outlook for the oil tanker segment. In addition, the US$274 million charter service reserve provides significant protection against downside risk. The potential for a 20% share in Frontline's profits above certain rate thresholds could strengthen financial measures in good tanker market years. Standard & Poor's nevertheless believes that Ship Finance will maintain its high leverage, as excess cash flows are likely to be paid out as dividends or invested in additional vessels. Standard & Poor's expects that future vessel additions will be funded largely by debt (about 70%-75%) and that vessels acquired will be backed by medium-to long-term charter agreements with creditworthy shipping operators, which is key to the ratings. As the company expands its vessel fleet, an adequate liquidity buffer is expected to be generated and held on the balance sheet to protect against weak market conditions and the counterparty credit risk assumed. "Further rating upside potential is limited, while downside pressure could come from lower fleet contract coverage than expected, higher leverage, or prolonged weak market conditions," Mr. Karlsson added. =========== F R A N C E =========== ALCATEL-LUCENT: S&P Cuts Debt Ratings to BB- on Merger Approval --------------------------------------------------------------- Standard & Poor's said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent -- to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006, research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. The outlook is positive. At the same time, Standard & Poor's equalized its long-term corporate credit rating on Lucent with that of Alcatel-Lucent, raising it to 'BB-' from 'B', and affirmed its 'B-1' short-term corporate credit rating on the U.S. company. The outlook is positive. Standard & Poor's also raised its long-term ratings on Lucent's senior unsecured debt to 'B+' from 'B', on its subordinated debt to 'B' from 'CCC+', and on its preferred stock to 'B-' from 'CCC'. All of the long-term ratings on Alcatel-Lucent and on Lucent were removed from CreditWatch -- except Lucent's senior unsecured debt ratings, which remain on CreditWatch with positive implications -- where they had been placed with negative and positive implications, respectively, on March 24, 2006, on news of the merger plans. The completion of the proposed consent solicitation for Lucent's 2.75% Series A and B convertible senior debentures due respectively in 2023 and 2025, in return for a full and unconditional subordinated guarantee from Alcatel, will be a first step toward resolving the CreditWatch status on Lucent's senior unsecured debt. Resolution will also depend on our analysis of the ranking and support mechanisms for the various debt classes within the merged group, in particular Lucent's senior debt. "The downgrade reflects the challenges that Alcatel-Lucent will face combining two large organizations, integrating different technology platforms while preserving key customer relationships, implementing a large restructuring program, and continuing to support significant levels of debt and unfunded health care obligations," said Standard & Poor's credit analyst Leandro de Torres Zabala. "Nevertheless, we believe the merger has a clear logic, given continuing carrier consolidation and the convergence of fixed-and mobile-network technologies." The combined group will have a larger scale, greater product depth, wider geographic reach, and stronger R&D capability. Alcatel-Lucent will be headquartered in Paris, France. Pro forma for the Thales S.A. transaction and the acquisition of Nortel's third-generation (3G) activities, Standard & Poor's estimates that Alcatel-Lucent achieved EUR19 billion in sales in 2005 and had about EUR7.4 billion in debt securities and bank debt outstanding at Sept. 30, 2006. The ratings on Alcatel-Lucent are supported by: -- S&P's assessment of the industry's moderate revenue growth prospects, as well as by -- the group's broad portfolio of wireline and wireless systems, -- large-scale and geographically diversified operations, -- strong customer relations, -- R&D capabilities that are among the largest in the industry, and -- robust liquidity. These positive factors are constrained by: -- the very competitive telecoms equipment industry, notably in the context of continuing carrier consolidation; -- ongoing major changes in the industry's technology direction, resulting in potential rapid adverse changes in demand patterns; -- significant gross debt; and -- uneven free cash flow generation, reflecting moderate sales growth, health care payments, restructuring costs, and working-capital changes. "An upgrade is possible over the next 18 months if the group shows clear progress in integrating the two former entities and in achieving its targeted synergies, reaching high-single-digit operating margins (adjusted for purchase accounting) and meaningful sustained free cash flow generation, as well as maintaining solid liquidity in stable market conditions," said Mr. de Torres. Conversely, the outlook would be revised to stable if the integration of the two companies and the extraction of synergies did not proceed apace and had harmful effects on profitability and free cash flow generation. ALCATEL-LUCENT: Alenia Unit Inks EUR661-Mln Deal with Globalstar ---------------------------------------------------------------- Alcatel Alenia Space, a division of Alcatel-Lucent, signed a EUR661-million contract with Globalstar Inc. to provide their second-generation satellite constellation. Under the agreement, Alcatel Alenia Space, as prime contractor, will design, manufacture and deliver 48 low-earth-orbit (LEO) Globalstar satellites as well as launch support services prior to and during the launches and mission operations support. Jay Monroe, Chairman and CEO of Globalstar, Inc. and Pascale Sourisse, President and CEO of Alcatel Alenia Space formally signed the contract agreement in New York, N.Y. This definitive contract occurs a few weeks after the preliminary contract (Authorization To Proceed) signature aimed at defining the program readiness review and developing program milestones. "We are extremely pleased with this agreement, which not only secures the Globalstar space segment through at least 2025, but also takes us another step to offering a host of exciting future services while assisting us in our strategy to maximize our global spectrum opportunity," said Mr. Monroe. "We are thrilled to be working with Alcatel Alenia Space again on something so vital to the long term success of Globalstar and look forward to a mutually beneficial relationship as we move through the next decade and beyond." "I would like to thank Globalstar for their trust in Alcatel Alenia Space for the delivery of their second-generation LEO satellite constellation," Pascale Sourisse, President and CEO of Alcatel Alenia Space commented. "We are grateful for the confidence demonstrated through this contract and are looking forward to a beneficial relationship over the next several years with Globalstar. "This contract highlights Alcatel Alenia Space's strong competences and resources to design, manufacture and integrate Globalstar's whole satellite constellation as well as our expertise in providing competitive satellite solutions. It confirms Alcatel Alenia Space worldwide leadership in telecommunications satellite orders for the year 2006." With a launch mass of approximately 700 kg and an end-of-life power of 1.7 kW, Globalstar satellites will be fitted with 32 transponders in C-band, S-band and L-band. Starting in 2009, Globalstar satellites will be launched by 6 to 8 at the same time and will have a lifetime of 15 years. This agreement will involve Alcatel Alenia Space's production sites in France, Italy, Spain and Belgium. Globalstar's second- generation satellites will be assembled and integrated in Alcatel Alenia Space facility in Rome, Italy. The payloads will be provided by the company's facility in Toulouse, France; the structures as well as the thermal subsystems being provided by its facility in Cannes, France. Alcatel Alenia Space participated in the design of the complete first generation system and was responsible for the supply of satellites payloads, structures, thermal subsystems as well as the complete satellite integration. The company was also responsible for manufacturing and installing the Globalstar ground station antenna terminals. In order to supplement Globalstar current constellation, Alcatel Alenia Space is currently conducting a complete performance review comprising testing and pre-launch preparations for the eight Globalstar's first-generation ground spare satellites, in its facility in Rome, Italy. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported in the TCR-Europe on Nov. 9, Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit rating on France-based Alcatel and its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. remain on CreditWatch with negative and positive implications, respectively, where they were placed on March 24 on news of the two telecoms equipment makers' plans to merge. The ratings will remain on CreditWatch until completion of the merger and clarification of the ranking and support mechanisms for the various debt classes within the merged group's capital structure. The ratings on the individual debt issues of each company will be clarified at that time. Standard & Poor's 'B' and 'B-1' short-term corporate ratings on Alcatel and Lucent, respectively, are not on CreditWatch and remain unchanged. According to Troubled Company Reporter on April 7, Moody's Investors Service placed Lucent Technologies, Inc.'s B1 corporate family rating, B1 senior unsecured rating, B3 subordinated rating, and B3 trust preferred rating under review for possible upgrade following the company's announcement of a definitive merger agreement with Alcatel. Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel S.A. on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro- medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. ALCATEL-LUCENT: Inks Deal to Test Maxis Communications' WiMAX ------------------------------------------------------------- Alcatel-Lucent and Maxis Communications Berhad signed an agreement to conduct Malaysia's first field trial of the Universal 802.16e -2005 WiMAX solution. This field trial is an important step towards offering commercial services and satisfying growing demand for wireless broadband access, especially in residential areas in Malaysia. In order to support the start of the field trial that will take place later this year, Alcatel-Lucent will ship its 9100 WiMAX equipment in the next few weeks. In preparation for the field trial, Maxis undertook and successfully completed Malaysia's first lab test of 802.16e WiMAX using WiMAX 2.5 GHz spectrum at the Alcatel-Lucent Malaysia Regional Support Centre in November 2006. Under the terms of the agreement, Alcatel-Lucent will deploy its Alcatel-Lucent 9100 WiMAX end-to-end radio solution (2.5 GHz), including base stations, Wireless Access Controller, Operation and Maintenance Center as well as supply indoor customer premises equipment (CPE), mobile terminals and integration services. Alcatel-Lucent will also provide design, planning and provisioning support for the solution to meet Maxis' trial requirements. "Alcatel-Lucent is a leader in wireless WiMAX technology and Maxis is particularly impressed with the effective time to market strategy that Alcatel-Lucent has adopted," Maxis' Head of Products and New Businesses Dr. Nikolai Dobberstein said. "It has a clear product roadmap hence the commercial availability of Universal WIMAX IEEE 802.16e-2005 standard equipment for initial network deployments." "The joint WiMAX 802.16e Alcatel-Lucent/Maxis field trial will result in an even closer collaboration between the two companies in what they both see as a revolutionary broadband access technology," Marc Rouanne, Head of Alcatel-Lucent's convergence activities noted. "Alcatel-Lucent has made the early necessary investments in R&D to succeed and these are now paying off," he added. About Maxis Headquartered in Malaysia, The Maxis Group -- http://www.maxis.com.my/-- with operations in India through subsidiary, Aircel Limited, and Indonesia through subsidiary, PT Natrindo Telepon Seluler, provides services to 12.7 million customers in the region. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported in the TCR-Europe on Nov. 9, Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit rating on France-based Alcatel and its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. remain on CreditWatch with negative and positive implications, respectively, where they were placed on March 24 on news of the two telecoms equipment makers' plans to merge. The ratings will remain on CreditWatch until completion of the merger and clarification of the ranking and support mechanisms for the various debt classes within the merged group's capital structure. The ratings on the individual debt issues of each company will be clarified at that time. Standard & Poor's 'B' and 'B-1' short-term corporate ratings on Alcatel and Lucent, respectively, are not on CreditWatch and remain unchanged. According to Troubled Company Reporter on April 7, Moody's Investors Service placed Lucent Technologies, Inc.'s B1 corporate family rating, B1 senior unsecured rating, B3 subordinated rating, and B3 trust preferred rating under review for possible upgrade following the company's announcement of a definitive merger agreement with Alcatel. Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel S.A. on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro- medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. LEAR CORP: Moody's Lifts Ratings on Unit's Asset Disposal --------------------------------------------------------- Moody's Investors Service has raised Lear Corp.'s rating outlook to stable from negative and affirmed all other Lear ratings. The action follows Lear's announcement that it has entered into an agreement to contribute the assets of its North American Interior unit to International Automotive Components Group North America LLC. While Lear will not receive any proceeds from the sale, indeed it will initially have to contribute US$25 million of cash into IAC North America, the disposition will remove a business that has had negative EBITDA. The transaction will effectively increase Lear's cash flow by curtailing those losses and amount to a de-leveraging of the company. While automotive industry pressures in North America and Western Europe will continue to affect its remaining seating and electronics business units, Lear will be both better positioned within the B2 Corporate Family Rating and be less vulnerable to those pressures through the improved complexion of its cash flows. Lear's North American interior business has had operating losses for the last two years. Combined with the earlier sale of its European interior unit, the segment would account for roughly US$3.3 billion in annual revenue, combined operating losses of approximately US$0.2 billion, and EBITDA of roughly (US$0.1 billion). Prior to working capital requirements and at recent run-rates of the business, Moody's would estimate the transaction could save Lear some US$0.2 billion in cash flow. While Lear will have to invest an initial US$25 million into IAC North America, and may have to add a further US$40 million if defined EBITDA targets for 2007 in IAC North America are not met, Lear has recently received US$200 million from an equity investment from funds managed by Mr. Carl Icahn to effectively these requirements. Lear will receive a 25% interest in IAC North America in addition to its 33% interest in International Automotive Components Group LLC (into which it contributed assets of its European interior business). Lear expects to report a loss on the sale of the North American assets of approximately US$675 million. Combined with the US$29 million loss on the sale of the European business, US$1.01 billion of goodwill impairment charges take in 2005 and a further fixed asset impairment in that year of US$82 million, Lear will have incurred a cumulative reduction in the value of its investment in the interior segment of some US$1.8 billion over the last 15 months (prior to operating losses or other restructuring charges). Adjusting 3rd quarter results pro forma for the transactions, Moody's would estimate Lear's debt/EBITDA would improve to 3.9 times compared to 4.3 times; EBIT/Interest would have been 1.9 times compared to 1.4 times; and positive free cash flow of around US$0.1 billion would have been generated compared to the (US$0.1) billion experienced. The transaction will also lower Lear's book net worth and raise its debt to book capitalization ratio. The stable outlook considers the improved prospects for Lear's free cash flow which will make it less vulnerable to potential industry pressure in 2007 and beyond, while the company continues with ongoing exposure to build rates at General Motors, Ford and DaimlerChrysler, and the current mix of vehicles it supports may be adversely affected by recent trends in consumer vehicle preferences, its credit metrics are better positioned within the B2 Corporate Family rating and more likely to remain in an acceptable range for the rating category. The stable outlook also incorporates Lear's favorable liquidity profile, recently lengthened debt maturities, and the benefits of its new business awards which will, over time, facilitate improved customer diversification. All other ratings have been affirmed. The last rating action was on November 20, 2006 when ratings were assigned to Lear's US$900 million offering of unsecured notes. Lear Corp., headquartered in Southfield, MI, is focused on providing complete seat systems, electrical distribution systems and various electronic products to major automotive manufacturers across the world. The company had revenue of US$17 billion in 2005 and has more than 110,000 employees in 34 countries. LUCENT TECHNOLOGIES: S&P Lifts Junk Ratings Following Merger ------------------------------------------------------------ Standard & Poor's said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent -- to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006, research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. The outlook is positive. At the same time, Standard & Poor's equalized its long-term corporate credit rating on Lucent with that of Alcatel-Lucent, raising it to 'BB-' from 'B', and affirmed its 'B-1' short-term corporate credit rating on the U.S. company. The outlook is positive. Standard & Poor's also raised its long-term ratings on Lucent's senior unsecured debt to 'B+' from 'B', on its subordinated debt to 'B' from 'CCC+', and on its preferred stock to 'B-' from 'CCC'. All of the long-term ratings on Alcatel-Lucent and on Lucent were removed from CreditWatch -- except Lucent's senior unsecured debt ratings, which remain on CreditWatch with positive implications -- where they had been placed with negative and positive implications, respectively, on March 24, 2006, on news of the merger plans. The completion of the proposed consent solicitation for Lucent's 2.75% Series A and B convertible senior debentures due respectively in 2023 and 2025, in return for a full and unconditional subordinated guarantee from Alcatel, will be a first step toward resolving the CreditWatch status on Lucent's senior unsecured debt. Resolution will also depend on our analysis of the ranking and support mechanisms for the various debt classes within the merged group, in particular Lucent's senior debt. "The downgrade reflects the challenges that Alcatel-Lucent will face combining two large organizations, integrating different technology platforms while preserving key customer relationships, implementing a large restructuring program, and continuing to support significant levels of debt and unfunded health care obligations," said Standard & Poor's credit analyst Leandro de Torres Zabala. "Nevertheless, we believe the merger has a clear logic, given continuing carrier consolidation and the convergence of fixed-and mobile-network technologies." The combined group will have a larger scale, greater product depth, wider geographic reach, and stronger R&D capability. Alcatel-Lucent will be headquartered in Paris, France. Pro forma for the Thales S.A. transaction and the acquisition of Nortel's third-generation (3G) activities, Standard & Poor's estimates that Alcatel-Lucent achieved EUR19 billion in sales in 2005 and had about EUR7.4 billion in debt securities and bank debt outstanding at Sept. 30, 2006. The ratings on Alcatel-Lucent are supported by: -- S&P's assessment of the industry's moderate revenue growth prospects, as well as by -- the group's broad portfolio of wireline and wireless systems, -- large-scale and geographically diversified operations, -- strong customer relations, -- R&D capabilities that are among the largest in the industry, and -- robust liquidity. These positive factors are constrained by: -- the very competitive telecoms equipment industry, notably in the context of continuing carrier consolidation; -- ongoing major changes in the industry's technology direction, resulting in potential rapid adverse changes in demand patterns; -- significant gross debt; and -- uneven free cash flow generation, reflecting moderate sales growth, health care payments, restructuring costs, and working-capital changes. "An upgrade is possible over the next 18 months if the group shows clear progress in integrating the two former entities and in achieving its targeted synergies, reaching high-single-digit operating margins (adjusted for purchase accounting) and meaningful sustained free cash flow generation, as well as maintaining solid liquidity in stable market conditions," said Mr. de Torres. Conversely, the outlook would be revised to stable if the integration of the two companies and the extraction of synergies did not proceed apace and had harmful effects on profitability and free cash flow generation. MOSAIC COMPANY: Completes US$2 Billion Refinancing -------------------------------------------------- The Mosaic Company has completed a refinancing pursuant to which: * subsidiaries of Mosaic purchased approximately US$1,410,991,676 aggregate principal amount of their outstanding senior notes and debentures pursuant to tender offers. * Mosaic refinanced a US$345 million term loan B facility under its existing senior secured bank credit agreement. * Mosaic funded the purchase of the existing senior notes and debentures and the refinancing of the existing term loan B facility through the issuance of US$475 million aggregate principal amount of 7-3/8% Senior Notes due 2014 and US$475 million aggregate principal amount of 7- 5/8% Senior Notes due 2016, and new US$400 million term loan A-1 and US$612 million term loan B facilities under its amended and restated senior secured bank credit agreement. The senior notes and debentures purchased by subsidiaries of Mosaic pursuant to tender offers consisted of US$124,038,000 aggregate principal amount of Mosaic Global Holdings Inc.'s 6.875% Debentures due 2007, US$370,979,676 aggregate principal amount of its 10.875% Senior Notes due 2008, US$374,065,000 aggregate principal amount of its 11.250% Senior Notes due 2011, and US$396,090,000 aggregate principal amount of its 10.875% Senior Notes due 2013, and US$145,819,000 aggregate principal amount of Phosphate Acquisition Partners L.P.'s 7% Senior Notes due 2008. After giving effect to these purchases, US$25,962,000 aggregate principal amount of Mosaic Global Holdings Inc.'s 6.875% Debentures due 2007, US$23,908,324 aggregate principal amount of its 10.875% Senior Notes due 2008, US$29,395,000 aggregate principal amount of its 11.250% Senior Notes due 2011, and US$3,525,000 aggregate principal amount of its 10.875% Senior Notes due 2013 and US$4,181,000 aggregate principal amount of Phosphate Acquisition Partners L.P.'s 7% Senior Notes due 2008 remain outstanding. The indentures pursuant to which these senior notes and debentures were issued were amended to remove substantially all of their restrictive covenants. About The Mosaic Company The Mosaic Company -- http://www.mosaicco.com/-- produces and markets concentrated phosphate and potash crop nutrients. For the global agriculture industry, Mosaic is a single source of phosphates, potash, nitrogen fertilizers and feed ingredients. In Europe, the company maintains operations and/or sales offices in Ukraine, France and Russia. * * * As reported in the Troubled Company Reporter-Europe on Nov. 14, Standard & Poor's Ratings Services revised its outlook on The Mosaic Co. to negative from stable. Standard & Poor's affirmed its 'BB' long-term and 'B-1' short-term corporate credit ratings on the company. As reported in the TCR-Europe on Nov. 9, 2006, Fitch assigned a 'BB' rating to The Mosaic Company's proposed senior unsecured notes due 2014 and 2016 and a 'BB+' rating to the company's proposed senior secured term loans. The ratings affected approximately US$950 million of new senior notes and US$1.05 billion of new term loans. Moody's Investors Service assigned Ba1 ratings to The Mosaic Company's proposed new US$1.05 billion guaranteed senior secured credit facilities. Moody's also assigned B1 ratings to US$900 million of proposed senior unsecured debt. Mosaic's Ba3 corporate family rating was affirmed but the ratings of the existing revolver and the term loan A were downgraded to Ba1 from Baa3 and those of the existing senior unsecured debt lowered to B1 from Ba3 in accordance with the LGD methodology. Moody's said the ratings outlook is stable. NEVRAX FRANCE: Gamers Start Campaign to Buy Out Bankrupt Firm ------------------------------------------------------------- Gamers of Ryzom band together to raise capital to buy out the multiplayer online game from Nevrax France SARL, the French development firm that runs Ryzom games, according to published reports. The company, which launched The Saga of Ryzom in September 2004, was forced to file bankruptcy proceedings at the commerce tribunal "due to market conditions and other unforeseen circumstances". The move sparked up The Free Ryzom Campaign, which aims to release Ryzom to the free software community financed by donations. The campaigners, led by a group of former Nevrax employees, members of the NeL community and other Ryzom gamers, have collected EUR60,000 in the hope of buying the source code for the game. "So far we do not know the conditions the liquidator may impose on the sale, nor the exact sum of money that will be required. We estimate that the amount will be, at least, tens of thousands of euros, and in the worst case, hundreds of thousands Euros," the campaigners said in a statement. According to Emma Boyes of GameSpot UK, current subscribers will continue to receive one month of free online access, while new subscribers will not be able to upgrade their trial accounts for the time being. About Nevrax Founded in early 2000, Paris-based Nevrax France SARL is an online game and software development company that specializes in Massively Multi Players' Online Games. Utilizing NeL, its open source platform, NEVRAX's team of 50+ engineers and designers are nearing the completion of their first MMORPG, a Science Fantasy game entitled, "The Saga of Ryzom". Ryzom is an innovative MMORPG, which has been developed since the year 2000 by the independent studio, Nevrax. For the past two years Ryzom has been marketed and sold to gamers, developing a fiercly loyal fanbase. NEXANS S.A.: Completes Deal to Acquire Olex for AU$515 Million -------------------------------------------------------------- Nexans S.A. has competed its acquisition of Australian company Olex. The acquisition reinforces Nexans' position in energy cables, its core activity, and doubles its exposure to the buoyant markets of the Asia-Pacific region. The cost of the operation was AU$515 million (approximately EUR310 million). As previously reported in the TCR-Europe on Nov. 13, 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%. 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.: S&P Affirms Low-B Ratings on Acquisition Closing ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' long-term and 'B' short-term corporate credit ratings on French cable manufacturer Nexans S.A. and removed them from CreditWatch, where they had been placed with negative implications on Nov. 9, 2006, on news of Nexans' EUR310 million (A$515 million) bid for 100% of Australian cable manufacturer Olex. The outlook is stable. The affirmation follows the completion of the acquisition. "We expect Nexans' business profile to benefit from the increased geographic diversification in Australia and New Zealand," said Standard & Poor's credit analyst Barbara Castellano. "After the acquisition, Nexans' sales in this area will rise to an estimated 11% of total sales, from 6% previously." Synergies should come more from incremental revenues than from cost savings. In fact, given the large geographic distance between the two companies, it is difficult to adopt common purchasing strategies or plant flexibility. Standard & Poor's also expect some benefits for profitability, given that, historically, Olex has reported higher operating margins than Nexans. From a financial-risk standpoint, Standard & Poor's expects Nexans' credit measures to weaken as consequence of the additional EUR310 million in debt taken on to finance the transaction. "Nevertheless, pro forma key credit ratios should still be at about the minimum required for the existing ratings," said Ms. Castellano. Nexans should be able to reach Standard & Poor's stated 20%-25% target for FFO to adjusted debt and return to positive free cash flow generation in the medium term. "Furthermore, profitability should continue to improve, and we expect liquidity to remain sufficient," added Ms. Castellano. An upgrade is remote, given the nature of the business. High cyclicality and exposure to metal price fluctuations are two of the main risks Nexans must face. An outlook revision to negative or a downgrade could be triggered by new acquisitions or by the evidence that there are no signs of improvement in cash generation. ============= G E R M A N Y ============= AKTAON VERMOEGENSVERWALTUNGS: Claims Registration Ends Dec. 14 -------------------------------------------------------------- Creditors of "Aktaon" Vermoegensverwaltungsgesellschaft mbH have until Dec. 14 to register their claims with court-appointed provisional administrator Helmut Schwarz. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Jan. 24, 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 Dresden Hall D131 Olbrichtplatz 1 01099 Dresden, 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 Dresden opened bankruptcy proceedings against "Aktaon" Vermoegensverwaltungsgesellschaft mbH on Oct. 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: "Aktaon" Vermoegensverwaltungsgesellschaft mbH Bautzner Road 34/36 01099 Dresden, Germany The administrator can be contacted at: Dr. Helmut Schwarz Dreikoenigskirche 10 01097 Dresden, Germany Web: http://www.cmslegal.de/ DAIMLERCHRYSLER AG: Eyes 24% Beiqi Foton Stake for CNY817 Mln ------------------------------------------------------------- DaimlerChrysler AG will buy a 24% stake in China's light truck manufacturer, Beiqi Foton Motor, for CNY816.8 million, various reports say. The 297 million new A shares purchase will make DaimlerChrysler the second largest shareholder in the Chinese truck maker after Beijing Automotive Industry Corp, Foton said in statement. China Daily recounts that a strategic agreement was reached in 2003 by DaimlerChrysler and BAIC to make Mercedes-Benz sedans and form a new venture with Foton to manufacture Mercedes-Benz heavy-duty trucks. Mercedes-Benz is an affiliate brand of DaimlerChrysler. Production of Mercedes-Benz E-Class sedans kicked off at the beginning of this year in Beijing, China Daily adds. However, the plan to form a truck venture with Foton has been suspended as a result of DaimlerChryler's multiple partnerships with different Chinese companies and restrictions from the nation's auto industry policy. Chinese policy allows overseas automakers to set up, at most, two joint ventures to make commercial vehicles and two for passenger cars. DaimlerChrysler has two partners in China making commercial vehicles, Yaxing Benz and Fujian Motor Industry Group but it also makes Mercedes-Benz sedans and Jeep Cherokee sport utility vehicles with BAIC, the International Herald Tribune relates. However, it has been reported that DaimlerChrysler will pull out of the bus venture in Yangzhou to make room for its planned truck venture with Foton, the Daily says. Asked by the China Daily on how its truck venture plan with Foton will go, Trevor Hale -- spokesman for DaimlerChrysler (China) Investment Co Ltd -- said "they can't comment further until the deal is complete." Meanwhile, the Tribune relates that rising sales of trucks in China, in contrasts to shrinking demand in DaimlerChrysler's other main truck markets of the United States, Japan and Europe makes a positive note on the deal for the company. DaimlerChrysler earned more from trucks and buses last year than from its Mercedes Car Group, the paper notes. "Demand for trucks in China will surge as the economy expands and the country builds more highways," said Yale Zhang, an analyst in Shanghai at CSM Asia, which advises overseas automakers on the Chinese automotive market. "DaimlerChrysler stands to benefit from that growth." About the Company Headquartered in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- engages in the development, manufacture, distribution, and sale of various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. DaimlerChrysler has operations in Australia, China, Indonesia, Japan, Korea, Malaysia, and Thailand. * * * The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. Outlook As reported in the TCR-Europe on Oct. 30, DaimlerChrysler said it expects a slight decrease in worldwide demand for automobiles in the fourth quarter and thus slower market growth than in Q4 2005. For full-year 2006, the company anticipates market growth of around 3%. It expects unit sales in 2006 to be lower than in the previous year (4.8 million units). On Sept. 15, DaimlerChrysler reduced the Group's operating- profit target for 2006 to an amount in the magnitude of US$6.3 billion. Although the company now has to assume that the profit contribution from EADS will be US$0.3 billion lower than originally anticipated because of the delayed delivery of the Airbus A380, DaimlerChrysler is maintaining this earnings target due to very positive business developments in the divisions Mercedes Car Group, Truck Group and Financial Services. DAIMLERCHRYSLER: Chrysler's Joe Eberhardt Moves to Mercedes-Benz ---------------------------------------------------------------- DaimlerChrysler AG's Chrysler Group president and chief executive officer Tom LaSorda disclosed that Joe Eberhardt, executive vice president for global sales, marketing, and service, will be leaving the company in order to return to automotive retailing within the Mercedes-Benz network in the United States. The senior vice presidents and vice presidents of sales, marketing, international and service will report directly to Mr. LaSorda until further notice. "Joe brought a much-needed discipline to our sales, marketing and service organizations when he arrived in the summer of 2003," Mr. LaSorda said. "Being back in the retail world is something he has talked about for some time now, and having a proven track record in that arena, makes it a natural." Mr. Eberhardt joined Mercedes-Benz in Germany in 1982 as a student in a work-study program. In the early 1990s, he left the corporate environment and became General Manager of Mercedes-Benz Manhattan, turning it into one of the most successful dealerships in the country. He returned to Mercedes-Benz in 1995 and, in 1999, was named President and CEO of DaimlerChrysler U.K. Ltd., where Mr. Eberhardt more than doubled sales and improved dealer profitability in a stagnant market. "Joe's deep understanding of the automotive industry and his proven leadership will continue to serve the Company well as he moves back to the retail side," Dieter Zetsche, chairman of the board of Management DaimlerChrysler/Head of Mercedes Car Group, said. Mr. Eberhardt was born in Stuttgart, Germany, on Aug. 26, 1963. He received his BA and MS degrees in Germany, and earned his Masters of Business Administration degree at New York University's Leonard N. Stern School of Business in 1992. About DaimlerChrysler Headquartered in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- engages in the development, manufacture, distribution, and sale of various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. DaimlerChrysler has operations in Australia, China, Indonesia, Japan, Korea, Malaysia, and Thailand. * * * The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. Outlook As reported in the TCR-Europe on Oct. 30, DaimlerChrysler said it expects a slight decrease in worldwide demand for automobiles in the fourth quarter and thus slower market growth than in Q4 2005. For full-year 2006, the company anticipates market growth of around 3%. It expects unit sales in 2006 to be lower than in the previous year (4.8 million units). On Sept. 15, DaimlerChrysler reduced the Group's operating- profit target for 2006 to an amount in the magnitude of US$6.3 billion. Although the company now has to assume that the profit contribution from EADS will be US$0.3 billion lower than originally anticipated because of the delayed delivery of the Airbus A380, DaimlerChrysler is maintaining this earnings target due to very positive business developments in the divisions Mercedes Car Group, Truck Group and Financial Services. IMTM INNOVATIVE: Claims Registration Ends December 11 ----------------------------------------------------- Creditors of IMTM Innovative Medizintechnik Mittelrhein GmbH have until Dec. 11 to register their claims with court-appointed provisional administrator Gerd Seibert. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 11, 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 Neuwied Hall 126 1 Stick Hermannstr. 39 56564 Neuwied, 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 Neuwied opened bankruptcy proceedings against IMTM Innovative Medizintechnik Mittelrhein GmbH on Oct. 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: IMTM Innovative Medizintechnik Mittelrhein GmbH Attn: Wolfgang Schneider, Manager Hauptstr. 12 56599 Leutesdorf/Rhein, Germany The administrator can be contacted at: Gerd Seibert Hermannstr. 16 56203 Hoehr-Grenzhausen, Germany Tel: 02624/95950 Fax: 02624/959595 JOSEF MOTTER: Claims Registration Ends December 12 -------------------------------------------------- Creditors of Josef Motter GmbH i. L. have until Dec. 12 to register their claims with court-appointed provisional administrator Martin Dreschers. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Jan. 23, 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 Aachen Meeting Room K 3 3rd Floor Alter Posthof 1 52062 Aachen, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Aachen opened bankruptcy proceedings against Josef Motter GmbH i. L. on Oct. 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Josef Motter GmbH i. L. Attn: Petra and Sabine Motter, Managers Lehrer-Friesenstr. 1 52152 Simmerath, Germany The administrator can be contacted at: Dr. Martin Dreschers Juelicher Road 116 52070 Aachen, Germany KABEL DEUTSCHLAND: Moody's Keeps Stable Outlook on Ba3 Rating ------------------------------------------------------------- Moody's Investors Service commented on the announcement of Kabel Deutschland GmbH at its second quarter 2006 financial results conference call of its marketing initiative to promote free set top boxes to its direct subscribers (approximately 2.5 million) to stimulate the transition to a digital platform. The company also announced an increase in its digital access fee from EUR14.13 / 14.83 to EUR16.90 from March 1, 2007. Additionally, KDG indicated an increase in its capital expenditures with a guidance towards EUR240 million versus previous EUR200-220 million. At the same time, the company's public EBITDA guidance for the fiscal year 2006/07 was in the range of EUR370 million to EUR400 million. Given the above guidance, Moody's believes that the company is likely to be free cash flow negative for this fiscal year. The currently anticipated free cash flow generation is below Moody's earlier expectations. The potential free cash flow deficit is somewhat mitigated by the committed revolving facility in the amount of EUR200 million and approximately EUR38 million in cash and cash equivalents on the company's balance sheet as of Sept. 30, 2006. Moody's notes that at this juncture the company has exhausted its financial flexibility within its current Ba3 corporate rating. The outlook on the rating remains stable as the rating agency believes that the free cash flow deficit is unlikely to lead to a material increase in debt and that the company is likely to be modestly free cash flow positive in the next fiscal year. The Ba3 rating assumes that the company will report a continued trend towards sustainable positive free cash flow generation by the end 2008. However, in the event KDG further accelerates its transition to the digital platform thus putting pressure on its EBITDA and / or free cash flow generation, the rating would come under negative pressure. Based in Germany, KDG is the largest network Level 3 cable television provider in Germany. For the six months ended Sept. 30, 2006, the company generated total revenues of EUR540 million. KAMO-BAU: Claims Registration Ends December 13 ---------------------------------------------- Creditors of Kamo-Bau GmbH have until Dec. 13 to register their claims with court-appointed provisional administrator Stephan Muenzel. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 5, 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 Norderstedt Hall B City Hall Avenue 80 22846 Norderstedt, 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 Norderstedt opened bankruptcy proceedings against Kamo-Bau GmbH on Nov. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kamo-Bau GmbH Attn: Kay Juers, Manager Sieversh�ttener Road 29 24568 Kattendorf, Germany The administrator can be contacted at: Stephan Muenzel Bachstrasse 85a 22083 Hamburg, Germany KOCH TRANSPORTTECHNIK: Claims Registration Ends December 13 ----------------------------------------------------------- Creditors of Koch Transporttechnik GmbH have until Dec. 13 to register their claims with court-appointed provisional administrator Guenter Staab. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 26, 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 Saarbruecken Meeting Room 13 1st Floor Branch Office Sulzbach Vopeliusstrasse 2 66280 Sulzbach, 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 Saarbruecken opened bankruptcy proceedings against Koch Transporttechnik GmbH on Nov. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Koch Transporttechnik GmbH Attn: Bernhard and Karl Peter Koch, Managers Karl-Koch-Road 1 66787 Wadgassen, Germany The administrator can be contacted at: Guenter Staab Sulzbachstrasse 26 66111 Saarbruecken, Germany KURT BUCHLOH: Claims Registration Ends December 15 -------------------------------------------------- Creditors of Kurt Buchloh Bauunternehmung GmbH have until Dec. 15 to register their claims with court-appointed provisional administrator Dirk Hammes. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Jan. 12, 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 Duisburg Area C207 2nd Floor Cardinal Galen Road 124-132 47058 Duisburg, 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 Duisburg opened bankruptcy proceedings against Kurt Buchloh Bauunternehmung GmbH on Nov. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kurt Buchloh Bauunternehmung GmbH Attn: Jens-Rainer Buchloh, Manager Langekamp 10 45475 Muelheim an der Ruhr, Germany The administrator can be contacted at: Dirk Hammes Wilhelmshofallee 75 47800 Krefeld, Germany LEAR CORP: Moody's Lifts Ratings on Unit's Asset Disposal --------------------------------------------------------- Moody's Investors Service has raised Lear Corp.'s rating outlook to stable from negative and affirmed all other Lear ratings. The action follows Lear's announcement that it has entered into an agreement to contribute the assets of its North American Interior unit to International Automotive Components Group North America LLC. While Lear will not receive any proceeds from the sale, indeed it will initially have to contribute US$25 million of cash into IAC North America, the disposition will remove a business that has had negative EBITDA. The transaction will effectively increase Lear's cash flow by curtailing those losses and amount to a de-leveraging of the company. While automotive industry pressures in North America and Western Europe will continue to affect its remaining seating and electronics business units, Lear will be both better positioned within the B2 Corporate Family Rating and be less vulnerable to those pressures through the improved complexion of its cash flows. Lear's North American interior business has had operating losses for the last two years. Combined with the earlier sale of its European interior unit, the segment would account for roughly US$3.3 billion in annual revenue, combined operating losses of approximately US$0.2 billion, and EBITDA of roughly (US$0.1 billion). Prior to working capital requirements and at recent run-rates of the business, Moody's would estimate the transaction could save Lear some US$0.2 billion in cash flow. While Lear will have to invest an initial US$25 million into IAC North America, and may have to add a further US$40 million if defined EBITDA targets for 2007 in IAC North America are not met, Lear has recently received US$200 million from an equity investment from funds managed by Mr. Carl Icahn to effectively these requirements. Lear will receive a 25% interest in IAC North America in addition to its 33% interest in International Automotive Components Group LLC (into which it contributed assets of its European interior business). Lear expects to report a loss on the sale of the North American assets of approximately US$675 million. Combined with the US$29 million loss on the sale of the European business, US$1.01 billion of goodwill impairment charges take in 2005 and a further fixed asset impairment in that year of US$82 million, Lear will have incurred a cumulative reduction in the value of its investment in the interior segment of some US$1.8 billion over the last 15 months (prior to operating losses or other restructuring charges). Adjusting 3rd quarter results pro forma for the transactions, Moody's would estimate Lear's debt/EBITDA would improve to 3.9 times compared to 4.3 times; EBIT/Interest would have been 1.9 times compared to 1.4 times; and positive free cash flow of around US$0.1 billion would have been generated compared to the (US$0.1) billion experienced. The transaction will also lower Lear's book net worth and raise its debt to book capitalization ratio. The stable outlook considers the improved prospects for Lear's free cash flow which will make it less vulnerable to potential industry pressure in 2007 and beyond, while the company continues with ongoing exposure to build rates at General Motors, Ford and DaimlerChrysler, and the current mix of vehicles it supports may be adversely affected by recent trends in consumer vehicle preferences, its credit metrics are better positioned within the B2 Corporate Family rating and more likely to remain in an acceptable range for the rating category. The stable outlook also incorporates Lear's favorable liquidity profile, recently lengthened debt maturities, and the benefits of its new business awards which will, over time, facilitate improved customer diversification. All other ratings have been affirmed. The last rating action was on November 20, 2006 when ratings were assigned to Lear's US$900 million offering of unsecured notes. Lear Corp., headquartered in Southfield, MI, is focused on providing complete seat systems, electrical distribution systems and various electronic products to major automotive manufacturers across the world. The company had revenue of US$17 billion in 2005 and has more than 110,000 employees in 34 countries. PRESTIGE BEKLEIDUNGSGESELLSCHAFT: Claims Bar Date Ends Dec. 15 -------------------------------------------------------------- Creditors of Prestige Bekleidungsgesellschaft mbH have until Dec. 15 to register their claims with court-appointed provisional administrator Klaus Thiery. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 12, 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 Saarbruecken Meeting Room 13 1st Floor Branch Office Sulzbach Vopeliusstrasse 2 66280 Sulzbach, 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 Saarbruecken opened bankruptcy proceedings against Prestige Bekleidungsgesellschaft mbH on Nov. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Prestige Bekleidungsgesellschaft mbH Holzer Road 126 b 66287 Quierschied, Germany Attn: Frank Ossig, Manager Beim Franzosengrab 9 66386 St. Ingbert, Germany The administrator can be contacted at: Klaus Thiery Poststrasse 30 66687 Wadern, Germany PROMISE-C: Fitch Keeps BB Rating on EUR6.5-Million Class E Notes ---------------------------------------------------------------- Fitch Ratings affirmed all PROMISE-C 2002-1's floating-rate credit-linked notes: -- EUR0.25 million Class A+ (ISIN XS0157370429): AAA; -- EUR45 million Class A (ISIN XS0157370692): AAA; -- EUR30 million Class B (ISIN XS0157370775): AAA; -- EUR19.5 million Class C (ISIN XS0157370858): AA; -- EUR18 million Class D (ISIN XS0157370932): BBB+; and -- EUR6.5 million Class E (ISIN XS0157371070): BB. The affirmation reflects the relatively low loss rate and a reduced risk horizon to maturity. The default volume, despite rising to EUR6.02 million from EUR4.9 million at the last review in September 2005 is still relatively low. Realized losses, despite rising to EUR472,203 from zero at the last review, are also relatively low. The weighted average internal rating is currently 2.69 out of a maximum of 6.50. The healthy credit enhancement, the high recovery rates and the seasoning effect also contribute towards the ratings affirmation. Further no triggers have been breached and the portfolio is fully compliant with all reference portfolio guidelines. Promise-C 2002-1 is a bankruptcy-remote special-purpose vehicle, incorporated in Ireland. The Class A+ to E notes are backed by credit-linked certificates of indebtedness issued by Kreditanstalt fur Wiederaufbau, and purchased by Promise-C 2002- 1 with the proceeds from the notes. KfW sold protection on a reference portfolio held by Commerzbank under a credit default swap, and bought protection on its exposure under this swap by entering into a junior CDS and a mezzanine CDS, issuing the credit-linked certificates of indebtedness, and entering into a senior CDS. The portfolio currently stands at nearly the maximum portfolio balance of EUR1.5 billion. The reference portfolio consists of payment claims granted by Commerzbank to German small- and medium-sized corporates and some larger corporates. PROMISE-I: Fitch Affirms BB Rating on EUR11.5-Mln Class E Notes --------------------------------------------------------------- Fitch Ratings affirmed Promise-I 2002-1's floating-rate credit- linked notes, following a satisfactory performance review: -- EUR250,000 Class A+ (ISIN DE0008508532) at AAA; -- EUR91.25 million Class A (ISIN DE0008508540) at AAA; -- EUR60.2 million Class B (ISIN DE0008508581) at AA; -- EUR45.65 million Class C (ISIN DE0008508599) at A; -- EUR51.1 million Class D (ISIN DE0008508615) at BBB; and -- EUR11.5 million Class E (ISIN DE0008508649) at BB. The affirmation reflects the portfolio's relatively stable credit quality to date. As of the August 2006 trustee report, the number of assets in IKB Deutsche Industriebank's lowest internal rating category has increased to 4.82% from 3.86% in September 2005. However, losses remain low at 0.10%, and the recovery rate remains very high, currently at around 92% on average. Last year, due to the high default volume, the suspension trigger was breached, leading to the temporary suspension of portfolio replenishment. The defaulted reference claims, however, went back to below the 1.85% limit in February 2006. Since then, none of the triggers have been breached. The issuer is a bankruptcy-remote special-purpose vehicle incorporated in Ireland. The Class A+ to E notes are backed by credit-linked certificates of indebtedness issued by Kreditanstalt fur Wiederaufbau, purchased by Promise-I with the proceeds from the notes. KfW sold protection on a reference portfolio held by IKB under a credit default swap and bought protection on its exposure under this swap by entering into a junior CDS and a mezzanine CDS, issuing the credit-linked certificates of indebtedness, and entering into a senior CDS. The notes bear the economic risk of a reference portfolio, with a maximum size of EUR3.5 billion, above a EUR109.5 million threshold amount. The reference portfolio consists of payment claims granted by IKB to German small and medium-sized enterprises. Replenishment is allowed until May 2007. The scheduled maturity date is in September 2009. SCHLEUTER VERWALTUNGS: Claims Registration Ends December 13 ----------------------------------------------------------- Creditors of Schleuter Verwaltungs GmbH have until Dec. 13 to register their claims with court-appointed provisional administrator Christian Willmer. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on Jan. 12, 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 Verden (Aller) Hall 214 Main Building Johanniswall 8 27283 Verden (Aller), 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 Verden (Aller) opened bankruptcy proceedings against Schleuter Verwaltungs GmbH on Oct. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Schleuter Verwaltungs GmbH Industriestrasse 3-5 28876 Oyten, Germany Attn: Klaus Baden, Manager Nedderland 73 28355 Bremen, Germany Walter Bischoff, Manager Holzdamm 18 28876 Oyten, Germany The administrator can be contacted at: Dr. Christian Willmer Georgstr. 5 27283 Verden (Aller), Germany Tel: 04231/884-45 Fax: 04231/884-55 SCHUH-RAUSCH: Creditors' Meeting Slated for December 13 ------------------------------------------------------- The court-appointed provisional administrator for Schuh-Rausch KG, Christoph Schulte-Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 8:45 a.m. on Dec. 13. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:05 a.m. on March 28, 2007, at the same venue. Creditors have until Jan. 29, 2007, to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Schuh-Rausch KG on Nov. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schuh-Rausch KG Reichsstrasse 94 14052 Berlin, Germany The administrator can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin, Germany STATION PARK: Creditors' Meeting Slated for December 13 ------------------------------------------------------- The court-appointed provisional administrator for Station Park Kulturgastronomie GmbH & Co. KG, Joachim Heitsch, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 8:50 a.m. on Dec. 13. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on March 28, 2007, at the same venue. Creditors have until Jan. 29, 2007, to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Station Park Kulturgastronomie GmbH & Co. KG on Nov. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Station Park Kulturgastronomie GmbH & Co. KG Goerlitzer Str. 1-2 10997 Berlin, Germany The administrator can be reached at: Dr. Joachim Heitsch Berliner Str. 117 10713 Berlin, Germany ============= H U N G A R Y ============= BORSODCHEM NYRT: Returned Shares Hike Treasury Stock ---------------------------------------------------- BorsodChem Nyrt. informs its investors and other participants of the capital markets that due to developments concerning its Registered Employee Share Ownership Program, the number of the Company's treasury shares changed. Out of the 203,062 shares transferred to the employees' securities accounts in HVB Bank Hungary Zrt.'s custody on Nov. 9, 2005, the Company received back 103 pieces with a value date of Nov. 13, 2006, from employees terminating their employment relations. Following the transaction the number of the Company's treasury shares increased by 103 pieces to 1,193,066. About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Nyrt. -- 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. * * * BorsodChem's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. ========= I T A L Y ========= IT HOLDING: Moody's Affirms B3 Rating on Improved Performance ------------------------------------------------------------- Moody's Investors Service affirmed IT Holding S.p.A.'s corporate family rating of B3 and the senior unsecured Caa1 rating on the notes due 2012 issued by IT Holding Finance S.A. and changed the outlook on all ratings from negative to stable. The rating action reflects the improvements in ITH's operating performance and the reduction in financial leverage achieved by the company over the last few quarters. The stable outlook anticipates the smaller size of the company starting from 2007 after the termination of the D&G license at the end of the current FY ending December 2006 and recognizes management' achievements in streamlining the Group's cost structure and in extending key licenses in the context of difficult market conditions. Following the recovery in operating performance and cash flow generation, group's financial leverage also recovered from historic high levels and Moody's would expect Debt to EBITDA (adjusted for pension, leases, securitization program and investments in collection development) going forward to remain well below the 7.1x reported at FYE Dec. 2005. IT Holding B3 Corporate Family Rating reflects: -- the company's exposure to the cyclical luxury goods market, -- the risk of license termination (although currently there are no licenses expiring before 2009), and -- relatively high geographic concentration in conjunction with financial leverage that, despite the recent improvements, remains high for the rating category. However, the ratings also take into consideration: -- the company's well known owned and licensed brands, -- the sound market position, -- the conservative expansion policy, and -- the high barriers to entry in its markets. Ongoing improvements in profitability and cash flow generation, resulting in a reduction in leverage below 5x are likely to place upward pressure on the ratings. On the contrary margin contraction and negative free cash flow together with loss of licenses are likely to result in downward rating pressure. Ratings affirmed: IT Holdings S.p.A * Corporate Family Rating of B3; and IT Holding Finance S.A. * EUR185-million 9.875% senior unsecured notes due 2012 rated Caa1. Based in Italy, IT Holding S.p.A. is a European leading operator in the branded apparel and accessories market mainly focused on the young lines segment. During the last nine months ended Sept. 2006, IT Holding reported EUR579 million of consolidated net revenues and EUR68.9 million of EBITDA (adjusted only for investments in collection development during the 9 months). =================== K A Z A K H S T A N =================== AIKO LTD: Almaty Court Opens Bankruptcy Proceedings --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Company Aiko Ltd. (RNN 600500514430) on Oct. 31. ALEX-TRADE LLP: Creditors' Claims Due Jan. 10, 2007 --------------------------------------------------- LLP Alex-Trade has declared insolvency. Creditors have until Jan. 10, 2007, to submit written proofs of claim to: LLP Alex-Trade Kamzin Str. 72-75 Pavlodar Pavlodar Region Kazakhstan ATYRAU CONSTRUCTION: Claims Filing Period Ends Jan. 10, 2007 ------------------------------------------------------------ LLP Atyrau Construction Service (RNN 150100240259) has declared insolvency. Creditors have until Jan. 10, 2007, to submit written proofs of claim to: LLP Atyrau Construction Service Azattyk Ave. 74v Atyrau Atyrau Region Kazakhstan Tel: 8 (3122) 45-19-21 GAUHAR LLP: Claims Registration Ends Jan. 12, 2007 -------------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan Region declared LLP Gauhar insolvent on Oct. 24. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Jan. 12, 2007, to submit written proofs of claim to: LLP Gauhar Sholohov Str. 2/4 Uralsk West Kazakhstan Region Tel: 8 (3112) 53-84-67 JAN-U-BEK: Creditors' Claims Due Jan. 12, 2007 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region declared LLP Jan-U-Bek insolvent. Creditors have until Jan. 12, 2007, to submit written proofs of claim to: LLP Jan-U-Bek Floor 3 Abai Str. 10a Atyrau Atyrau Region Kazakhstan KAMBIZ TRADING: Court Begins Bankruptcy Proceedings --------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region commenced bankruptcy proceedings against LLP Kambiz Trading. MECHANOMONTAGE OJSC: Creditors' Claims Due Jan. 12, 2007 -------------------------------------------------------- The Temirtausky Montajny Branch No.2 Of OJSC Mechanomontage has declared insolvency. Creditors have until Jan. 12, 2007, to submit written proofs of claim to: OJSC Mechanomontage Mir Ave. 1a Temirtau Karaganda Region Kazakhstan MEGATEKS LLP: Claims Filing Period Ends Jan. 12, 2007 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region declared LLP Megateks insolvent. Creditors have until Jan. 12, 2007, to submit written proofs of claim to: LLP Megateks Floor 3 Abai Str. 10a Atyrau Atyrau Region Kazakhstan MONTAJNIK LTD: Claims Registration Ends Jan. 12, 2007 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region declared LLP Montajnik Ltd. insolvent. Creditors have until Jan. 12, 2007, to submit written proofs of claim to: LLP Montajnik Ltd. Floor 3 Abai Str. 10a Atyrau Atyrau Region Kazakhstan NAD FURNITURE: Proof of Claim Deadline Slated for Jan. 12, 2007 --------------------------------------------------------------- LLP Nad Furniture Kazakhstan Inc. has declared insolvency. Creditors have until Jan. 12, 2007, to submit written proofs of claim to: LLP Nad Furniture Kazakhstan Inc. Zavodskaya Str. 1 Pervomaika Iliy District Almaty Region Kazakhstan =================== K Y R G Y Z S T A N =================== ELADA-SERVICE LLC: Creditors' Claims Due Jan. 17, 2007 ------------------------------------------------------ LLC Elada-Service has declared insolvency. Creditors have until Jan. 17, 2007, to submit their written proofs of claim. Inquiries can be addressed to (+996 312) 29-31-32, 21-86-38. SHAKE HAND: Claims Filing Period Ends Jan. 19, 2007 --------------------------------------------------- LLC Shake Hand International Investment and Trading Company has declared insolvency. Creditors have until Jan. 19, 2007, to submit their written proofs of claim. Inquiries can be addressed to (+996 312) 29-00-90. TRANSPORT LINE: Claims Registration Ends Jan. 24, 2007 ------------------------------------------------------ LLC Transport Line has declared insolvency. Creditors have until Jan. 24, 2007, to submit their written proofs of claim. Inquiries can be addressed to (+996 312) 65-48-84. VITTA LLC: Creditors Must File Claims by Jan. 19, 2007 ------------------------------------------------------ Joint Kyrgyz-Russian LLC Vitta has declared insolvency. Creditors have until Jan. 19, 2007, to submit written proofs of claim to: LLC Vitta Tynystanov Str. 64-4 Bishkek, Kyrgyzstan ===================== N E T H E R L A N D S ===================== ALCATEL-LUCENT: S&P Cuts Debt Ratings to BB- on Merger Approval --------------------------------------------------------------- Standard & Poor's said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent -- to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006, research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. The outlook is positive. At the same time, Standard & Poor's equalized its long-term corporate credit rating on Lucent with that of Alcatel-Lucent, raising it to 'BB-' from 'B', and affirmed its 'B-1' short-term corporate credit rating on the U.S. company. The outlook is positive. Standard & Poor's also raised its long-term ratings on Lucent's senior unsecured debt to 'B+' from 'B', on its subordinated debt to 'B' from 'CCC+', and on its preferred stock to 'B-' from 'CCC'. All of the long-term ratings on Alcatel-Lucent and on Lucent were removed from CreditWatch -- except Lucent's senior unsecured debt ratings, which remain on CreditWatch with positive implications -- where they had been placed with negative and positive implications, respectively, on March 24, 2006, on news of the merger plans. The completion of the proposed consent solicitation for Lucent's 2.75% Series A and B convertible senior debentures due respectively in 2023 and 2025, in return for a full and unconditional subordinated guarantee from Alcatel, will be a first step toward resolving the CreditWatch status on Lucent's senior unsecured debt. Resolution will also depend on our analysis of the ranking and support mechanisms for the various debt classes within the merged group, in particular Lucent's senior debt. "The downgrade reflects the challenges that Alcatel-Lucent will face combining two large organizations, integrating different technology platforms while preserving key customer relationships, implementing a large restructuring program, and continuing to support significant levels of debt and unfunded health care obligations," said Standard & Poor's credit analyst Leandro de Torres Zabala. "Nevertheless, we believe the merger has a clear logic, given continuing carrier consolidation and the convergence of fixed-and mobile-network technologies." The combined group will have a larger scale, greater product depth, wider geographic reach, and stronger R&D capability. Alcatel-Lucent will be headquartered in Paris, France. Pro forma for the Thales S.A. transaction and the acquisition of Nortel's third-generation (3G) activities, Standard & Poor's estimates that Alcatel-Lucent achieved EUR19 billion in sales in 2005 and had about EUR7.4 billion in debt securities and bank debt outstanding at Sept. 30, 2006. The ratings on Alcatel-Lucent are supported by: -- S&P's assessment of the industry's moderate revenue growth prospects, as well as by -- the group's broad portfolio of wireline and wireless systems, -- large-scale and geographically diversified operations, -- strong customer relations, -- R&D capabilities that are among the largest in the industry, and -- robust liquidity. These positive factors are constrained by: -- the very competitive telecoms equipment industry, notably in the context of continuing carrier consolidation; -- ongoing major changes in the industry's technology direction, resulting in potential rapid adverse changes in demand patterns; -- significant gross debt; and -- uneven free cash flow generation, reflecting moderate sales growth, health care payments, restructuring costs, and working-capital changes. "An upgrade is possible over the next 18 months if the group shows clear progress in integrating the two former entities and in achieving its targeted synergies, reaching high-single-digit operating margins (adjusted for purchase accounting) and meaningful sustained free cash flow generation, as well as maintaining solid liquidity in stable market conditions," said Mr. de Torres. Conversely, the outlook would be revised to stable if the integration of the two companies and the extraction of synergies did not proceed apace and had harmful effects on profitability and free cash flow generation. ALCATEL-LUCENT: Alenia Unit Inks EUR661-Mln Deal with Globalstar ---------------------------------------------------------------- Alcatel Alenia Space, a division of Alcatel-Lucent, signed a EUR661-million contract with Globalstar Inc. to provide their second-generation satellite constellation. Under the agreement, Alcatel Alenia Space, as prime contractor, will design, manufacture and deliver 48 low-earth-orbit (LEO) Globalstar satellites as well as launch support services prior to and during the launches and mission operations support. Jay Monroe, Chairman and CEO of Globalstar, Inc. and Pascale Sourisse, President and CEO of Alcatel Alenia Space formally signed the contract agreement in New York, N.Y. This definitive contract occurs a few weeks after the preliminary contract (Authorization To Proceed) signature aimed at defining the program readiness review and developing program milestones. "We are extremely pleased with this agreement, which not only secures the Globalstar space segment through at least 2025, but also takes us another step to offering a host of exciting future services while assisting us in our strategy to maximize our global spectrum opportunity," said Mr. Monroe. "We are thrilled to be working with Alcatel Alenia Space again on something so vital to the long term success of Globalstar and look forward to a mutually beneficial relationship as we move through the next decade and beyond." "I would like to thank Globalstar for their trust in Alcatel Alenia Space for the delivery of their second-generation LEO satellite constellation," Pascale Sourisse, President and CEO of Alcatel Alenia Space commented. "We are grateful for the confidence demonstrated through this contract and are looking forward to a beneficial relationship over the next several years with Globalstar. "This contract highlights Alcatel Alenia Space's strong competences and resources to design, manufacture and integrate Globalstar's whole satellite constellation as well as our expertise in providing competitive satellite solutions. It confirms Alcatel Alenia Space worldwide leadership in telecommunications satellite orders for the year 2006." With a launch mass of approximately 700 kg and an end-of-life power of 1.7 kW, Globalstar satellites will be fitted with 32 transponders in C-band, S-band and L-band. Starting in 2009, Globalstar satellites will be launched by 6 to 8 at the same time and will have a lifetime of 15 years. This agreement will involve Alcatel Alenia Space's production sites in France, Italy, Spain and Belgium. Globalstar's second- generation satellites will be assembled and integrated in Alcatel Alenia Space facility in Rome, Italy. The payloads will be provided by the company's facility in Toulouse, France; the structures as well as the thermal subsystems being provided by its facility in Cannes, France. Alcatel Alenia Space participated in the design of the complete first generation system and was responsible for the supply of satellites payloads, structures, thermal subsystems as well as the complete satellite integration. The company was also responsible for manufacturing and installing the Globalstar ground station antenna terminals. In order to supplement Globalstar current constellation, Alcatel Alenia Space is currently conducting a complete performance review comprising testing and pre-launch preparations for the eight Globalstar's first-generation ground spare satellites, in its facility in Rome, Italy. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported in the TCR-Europe on Nov. 9, Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit rating on France-based Alcatel and its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. remain on CreditWatch with negative and positive implications, respectively, where they were placed on March 24 on news of the two telecoms equipment makers' plans to merge. The ratings will remain on CreditWatch until completion of the merger and clarification of the ranking and support mechanisms for the various debt classes within the merged group's capital structure. The ratings on the individual debt issues of each company will be clarified at that time. Standard & Poor's 'B' and 'B-1' short-term corporate ratings on Alcatel and Lucent, respectively, are not on CreditWatch and remain unchanged. According to Troubled Company Reporter on April 7, Moody's Investors Service placed Lucent Technologies, Inc.'s B1 corporate family rating, B1 senior unsecured rating, B3 subordinated rating, and B3 trust preferred rating under review for possible upgrade following the company's announcement of a definitive merger agreement with Alcatel. Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel S.A. on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro- medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. ALCATEL-LUCENT: Inks Deal to Test Maxis Communications' WiMAX ------------------------------------------------------------- Alcatel-Lucent and Maxis Communications Berhad signed an agreement to conduct Malaysia's first field trial of the Universal 802.16e -2005 WiMAX solution. This field trial is an important step towards offering commercial services and satisfying growing demand for wireless broadband access, especially in residential areas in Malaysia. In order to support the start of the field trial that will take place later this year, Alcatel-Lucent will ship its 9100 WiMAX equipment in the next few weeks. In preparation for the field trial, Maxis undertook and successfully completed Malaysia's first lab test of 802.16e WiMAX using WiMAX 2.5 GHz spectrum at the Alcatel-Lucent Malaysia Regional Support Centre in November 2006. Under the terms of the agreement, Alcatel-Lucent will deploy its Alcatel-Lucent 9100 WiMAX end-to-end radio solution (2.5 GHz), including base stations, Wireless Access Controller, Operation and Maintenance Center as well as supply indoor customer premises equipment (CPE), mobile terminals and integration services. Alcatel-Lucent will also provide design, planning and provisioning support for the solution to meet Maxis' trial requirements. "Alcatel-Lucent is a leader in wireless WiMAX technology and Maxis is particularly impressed with the effective time to market strategy that Alcatel-Lucent has adopted," Maxis' Head of Products and New Businesses Dr. Nikolai Dobberstein said. "It has a clear product roadmap hence the commercial availability of Universal WIMAX IEEE 802.16e-2005 standard equipment for initial network deployments." "The joint WiMAX 802.16e Alcatel-Lucent/Maxis field trial will result in an even closer collaboration between the two companies in what they both see as a revolutionary broadband access technology," Marc Rouanne, Head of Alcatel-Lucent's convergence activities noted. "Alcatel-Lucent has made the early necessary investments in R&D to succeed and these are now paying off," he added. About Maxis Headquartered in Malaysia, The Maxis Group -- http://www.maxis.com.my/-- with operations in India through subsidiary, Aircel Limited, and Indonesia through subsidiary, PT Natrindo Telepon Seluler, provides services to 12.7 million customers in the region. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported in the TCR-Europe on Nov. 9, Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit rating on France-based Alcatel and its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. remain on CreditWatch with negative and positive implications, respectively, where they were placed on March 24 on news of the two telecoms equipment makers' plans to merge. The ratings will remain on CreditWatch until completion of the merger and clarification of the ranking and support mechanisms for the various debt classes within the merged group's capital structure. The ratings on the individual debt issues of each company will be clarified at that time. Standard & Poor's 'B' and 'B-1' short-term corporate ratings on Alcatel and Lucent, respectively, are not on CreditWatch and remain unchanged. According to Troubled Company Reporter on April 7, Moody's Investors Service placed Lucent Technologies, Inc.'s B1 corporate family rating, B1 senior unsecured rating, B3 subordinated rating, and B3 trust preferred rating under review for possible upgrade following the company's announcement of a definitive merger agreement with Alcatel. Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel S.A. on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro- medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. =========== N O R W A Y =========== AKER KVAERNER: Inks Deals to Modify Norsk Hydro's Brage Platform ---------------------------------------------------------------- Norsk Hydro ASA has awarded Aker Kvaerner ASA a contract for upgrading of the system for re-injection of produced water on the Brage platform. The scope of the contract includes engineering, procurement and constructional installation. The contract value is around NOK150 million and project completion is scheduled for the end of 2008. Aker Kvaerner will execute the Brage modification project in Bergen. Pre-fabrication of steel and pipework will be carried out at the company's workshops. Design and procurement will begin immediately and pre-fabrication will start in April 2007. The offshore installation work will take place during 2007 and 2008. The main scope will be installed during a shut-down in 2008. Maintenance and modification work is one of the core business streams in Aker Kvaerner and is a key strategic focus area for the company in the North Sea and internationally. Aker Kvaerner has established broad competence within this market segment through long-term contracts with the operating companies. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. SHIP FINANCE: Hires Moore Stephens P.C. as Auditors --------------------------------------------------- Ship Finance International Limited reveals that at the 2006 Annual General Meeting of the company on Dec. 1, 2006, these resolutions were passed to: -- reelect Tor Olav Troim as a Director; -- reelect Paul Leand Jr. as a Director; -- reelect Kate Blankenship as a Director; -- appoint Moore Stephens, P.C. as auditors and to authorize the Directors to determine their remuneration; -- approve an amendment to the Company's Bye-law 104. to change the requirements for the form of, and signatories to, the seal of the Company. About Ship Finance Headquartered in Bermuda, Ship Finance International Limited -- http://www.shipfinance.org/-- through its subsidiaries engages in the ownership and operation of oil tankers, including oil/bulk/ore (OBO) carriers. The Company operates through subsidiaries and partnerships located in Bermuda, Cyprus, Isle of Man, Liberia, Norway and Singapore. It is also involved in the charter, purchase and sale of vessels. * * * As reported in the TCR-Europe on Nov. 16, Moody's Investors Service affirmed Ship Finance International Ltd.'s ratings, including the Ba3 Corporate Family Rating, the Ba2 Senior Secured Bank Credit Facilities and the B1 Senior Unsecured Notes rating. Moody's said the ratings outlook remains stable. SHIP FINANCE: Hikes Ordinary Cash Dividend to US$0.53 per Share --------------------------------------------------------------- The Board of Directors of Ship Finance International Ltd. reviewed the long-term prospects for the Company including its significant fixed charter backlog and growth prospects, and decided to increase the ordinary cash dividend basis from US$0.45 per share to US$0.50 per share. In addition, the Board of Directors decided to pay a supplementary extraordinary dividend of US$0.03 per share, bringing the total dividend payment for the quarter to US$0.53 per share. The dividend will be paid on Dec. 21, to shareholders of record as of Dec. 7. The ex dividend date is Dec. 5, 2006. About Ship Finance Headquartered in Bermuda, Ship Finance International Limited -- http://www.shipfinance.org/-- through its subsidiaries engages in the ownership and operation of oil tankers, including oil/bulk/ore (OBO) carriers. The Company operates through subsidiaries and partnerships located in Bermuda, Cyprus, Isle of Man, Liberia, Norway and Singapore. It is also involved in the charter, purchase and sale of vessels. * * * As reported in the TCR-Europe on Nov. 16, 2006, Moody's Investors Service affirmed Ship Finance International Ltd.'s ratings, including the Ba3 Corporate Family Rating, the Ba2 Senior Secured Bank Credit Facilities and the B1 Senior Unsecured Notes rating. The ratings outlook remains stable. SHIP FINANCE: Earns US$45.72 Million for Third Quarter 2006 ----------------------------------------------------------- Ship Finance International Ltd. released its financial results for the third quarter and nine months ended Sept. 30, 2006. Ship Finance posted US$45.72 million in net profit against US$121.8 million in revenues for the third quarter of 2006, compared with US$65.27 million in net profit against US$118.4 million in revenues for same period in 2005. The company posted US$122.99 million in net profit against US$296.82 million in revenues for the first nine months of 2006, compared with US$126.47 million in net profit against US$295.57 in revenues for same period in 2005. The Company's net income for the third quarter of 2006 was reduced by a US$16.4 million unrealized loss, representing the change in the fair value of the Company's interest rate swaps related to its secured credit facilities. A part of the Company's debt is on floating rate terms and lower interest rates in the future will, if sustained, improve long-term earnings. For the first nine months of 2006, the Company estimates that a total of US$63.9 million ($0.88 per share) in profit share from Frontline Ltd. has accumulated. Based on U.S. GAAP, around US$43 million has been accounted for in the period, of which US$37.5 million was included in the third quarter. The unrecognized income of US$20.9 million will be recognized in the fourth quarter provided Ship Finance's vessels continue to earn in excess of the fixed charter rates received from Frontline Ltd. The single-hull VLCC "Front Tobago" has been sold for a gross sales price of US$45.0 million. Delivery to the new owners is expected in December 2007. The single-hull Suezmax "Front Sunda" will be converted to a heavy-lift vessel. The vessel will be delivered from the shipyard at the beginning of the second quarter of 2007. After delivery, the vessel will commence a new 10 year fixed- rate charter to Frontline Shipping II Limited. Two Suezmax newbuildings have been ordered in China for delivery in 2009. The vessels will be marketed for medium to long-term charters, consistent with the Company's strategy. About Ship Finance Headquartered in Bermuda, Ship Finance International Limited -- http://www.shipfinance.org/-- through its subsidiaries engages in the ownership and operation of oil tankers, including oil/bulk/ore (OBO) carriers. The Company operates through subsidiaries and partnerships located in Bermuda, Cyprus, Isle of Man, Liberia, Norway and Singapore. It is also involved in the charter, purchase and sale of vessels. * * * As reported in the TCR-Europe on Nov. 16, 2006, Moody's Investors Service affirmed Ship Finance International Ltd.'s ratings, including the Ba3 Corporate Family Rating, the Ba2 Senior Secured Bank Credit Facilities and the B1 Senior Unsecured Notes rating. Moody's said the ratings outlook remains stable. SHIP FINANCE: S&P Lifts Rating to BB on Predictable Cash Flows -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Bermuda-based Ship Finance International Ltd., a ship-owning company tied to Frontline Ltd., to 'BB' from 'BB-'. The outlook is stable. At the same time, Standard & Poor's raised its senior unsecured debt rating on Ship Finance's US$580-million bonds to 'B+' from 'B'. "The rating action reflects Ship Finance's better-than-expected operating and financial performance over the past three years, the recent change to a Frontline-independent management team, and expectations of continued stable and predictable cash flows through the company's largely long-term contract-based revenue structure," said Standard & Poor's credit analyst Per Karlsson. Total debt was US$1.74 billion at Sept. 30, 2006. Ship Finance benefits from relatively predictable cash flows, which are secured through long-term contracts. The stable outlook also reflects the continual favorable near-term outlook for the oil tanker segment. In addition, the US$274 million charter service reserve provides significant protection against downside risk. The potential for a 20% share in Frontline's profits above certain rate thresholds could strengthen financial measures in good tanker market years. Standard & Poor's nevertheless believes that Ship Finance will maintain its high leverage, as excess cash flows are likely to be paid out as dividends or invested in additional vessels. Standard & Poor's expects that future vessel additions will be funded largely by debt (about 70%-75%) and that vessels acquired will be backed by medium-to long-term charter agreements with creditworthy shipping operators, which is key to the ratings. As the company expands its vessel fleet, an adequate liquidity buffer is expected to be generated and held on the balance sheet to protect against weak market conditions and the counterparty credit risk assumed. "Further rating upside potential is limited, while downside pressure could come from lower fleet contract coverage than expected, higher leverage, or prolonged weak market conditions," Mr. Karlsson added. =========== P O L A N D =========== BORSODCHEM NYRT: Returned Shares Hike Treasury Stock ---------------------------------------------------- BorsodChem Nyrt. informs its investors and other participants of the capital markets that due to developments concerning its Registered Employee Share Ownership Program, the number of the Company's treasury shares changed. Out of the 203,062 shares transferred to the employees' securities accounts in HVB Bank Hungary Zrt.'s custody on Nov. 9, 2005, the Company received back 103 pieces with a value date of Nov. 13, 2006, from employees terminating their employment relations. Following the transaction the number of the Company's treasury shares increased by 103 pieces to 1,193,066. About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Nyrt. -- 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. * * * BorsodChem's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. =========== R U S S I A =========== ADAMANTAN-FURNITURE: Court Names I. Gorn as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Moscow Region appointed Mr. I. Gorn as Insolvency Manager for CJSC Adamantan-Furniture. 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. A41-K2-18322/06. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Adamantan-Furniture Sovetskaya 178 Egoryevsk Moscow Region Russia AIR-SERVICE: Moscow Court Names I. Gorn as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Moscow Region appointed Mr. I. Gorn as Insolvency Manager for Joint-Stock Insurance Company Air- Service. 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. A41-K2-20620/06. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: Joint-Stock Insurance Company Air-Service Molodyezhnaya Str., 8/1. Belozerskiy Moscow region Russia BIVERST CJSC: Court Starts Bankruptcy Supervision Procedure ----------------------------------------------------------- The Arbitration Court of Moscow commenced bankruptcy supervision procedure on CJSC Biverst. The case is docketed under Case No. A40-39709/06-78-816 B. The Temporary Insolvency Manager is: K. Bodrov Office 112 Konnaya Str. 2 180007 Pskov Region Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Biverst Leningradskoye Shosse 46/1 Moscow Region Russia CHILDREN FASHION-KLIN: Court Names I. Gorn as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Moscow Region appointed Mr. I. Gorn as Insolvency Manager for CJSC Garment Factory Children Fashion- Klin. 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. A41-K2-16204/06. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Garment Factory Children Fashion-Klin Staroyamskaya Str. 6 Klin Moscow Region Russia CHUKHLOMSKIY WOOD: Asset Sale Slated for December 19 ---------------------------------------------------- The insolvency manager, the bidding organizer for LLC Chukhlomskiy Wood Combine, will open a public auction for the company's properties at 10:00 a.m. on Dec. 19 at: Svobody Str. 38 Chukhloma Kostroma Region Russia Interested participants have until 4:00 p.m. on Dec. 18 to deposit an amount equivalent to 10% of the starting price. Bidding documents must be submitted to: The Insolvency Manager, The Bidding Organizer Lunacharskogo Str. 29 Kostroma Region Tel/Fax: (49431)7-57-65 Russia The Debtor can be reached at: LLC Chukhlomskiy Wood Combine Revolyutsii Str. 11 Nerekhta Kostroma Region Russia CHUPINSKIY ORE: Court Names I. Benyaminov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Kareliya Republic appointed Mr. I. Benyaminov as Insolvency Manager for CJSC Chupinskiy Ore Mining and Processing Enterprise. He can be reached at: I. Benyaminov Post User Box 8 Petrozavodsk 185035 Kareliya Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A26-680/2006-18. The Arbitration Court of Kareliya Republic is located at: Krasnoarmeyskaya Str. 24a Petrozavodsk 185610 Kareliya Republic Russia The Debtor can be reached at: CJSC Chupinskiy Ore Mining and Processing Enterprise Pionerskaya Str. 42 Chupa Loukhskiy Region Kareliya Republic Russia DIAMOND CJSC: Court Names S. Suvorov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Moscow Region appointed Mr. S. Suvorov as Insolvency Manager for CJSC Diamond. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-45604/06-74-1006B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Diamond Ryazanskiy Pr. 67 Moscow Region Russia ELETSKAYA TOBACCO: Lipetsk Bankruptcy Hearing Slated for Feb. 15 ---------------------------------------------------------------- The Arbitration Court of Lipetsk Region will convene on Feb. 15, 2007, to hear the supervision procedure on LLC Eletskaya Tobacco Factory. The case is docketed under Case No. A36-2331/2006. The Temporary Insolvency Manager is: G. Udelnov Tkatskaya Str. 5 105318 Moscow Region Russia The Arbitration Court of Lipetsk Region is located at: Skorokhodova Str. 2 398019 Lipetsk Region Russia The Debtor can be reached at: LLC Eletskaya Tobacco Factory Lenina Str. 74 Letsk 399770 Lipetsk Region Russia KIRSANOV-AUTO-TRANS: Tambov Court Starts Bankruptcy Supervision --------------------------------------------------------------- The Arbitration Court of Tambov Region commenced bankruptcy supervision procedure on OJSC Kirsanov-Auto-Trans. The case is docketed under Case No. A64-2688-06-10. The Temporary Insolvency Manager is: A. Anikeev Apartment 2 Sverdlova Str. 116 Rzhaksa Tambov Region Russia The Debtor can be reached at: OJSC Kirsanov-Auto-Trans Sportivnaya Str. 17a Kirsanov Tambov Region Russia LARGE-GRAIN BUILDING: Court Names I. Gorn as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Moscow Region appointed Mr. I. Gorn as Insolvency Manager for LLC Factory of Large-Grain Building. 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. A41-K2-19027/06. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: LLC Factory of Large-Grain Building Promyshlennaya Str. 1 Malino Stupinskiy Region Moscow Region Russia LENINSKOYE OJSC: Orenburg Bankruptcy Hearing Slated for Dec. 12 --------------------------------------------------------------- The Arbitration Court of Orenburg Region will convene at 1:30 p.m. on Dec. 12 to hear the bankruptcy supervision procedure on OJSC Leninskoye (TIN 5650004690, KPP 565001001). The case is docketed under Case No. A47-6710/2006-14GK. The Temporary Insolvency Manager is: D. Samoylov Gaya Str. 23A 460000 Orenburg Region Russia The Arbitration Court of Orenburg Region is located at: 9th January Str. 64 460046 Orenburg Region Russia The Debtor can be reached at: OJSC Leninskoye Shakhtostroitelnaya Str. 24 Tyulgan 462010 Orenburg Region Russia MIKHAYLOVSKIY DIARY: Court Names E. Bogdanov to Manage Assets ------------------------------------------------------------- The Arbitration Court of Ryazan Region appointed Mr. E. Bogdanov as Insolvency Manager for CJSC Mikhaylovskiy Diary Combine. He can be reached at: E. Bogdanov Chkalova Str. 21 Ryazan Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A54-4017/2006-S1. The Arbitration Court of Ryazan Region is located at: Pochtovaya Str. 43/44 Ryazan Region Russia The Debtor can be reached at: CJSC Mikhaylovskiy Diary Combine Rabochiy Poselok 13 Mikhaylov 391710 Ryazan Region Russia ORENBURGSKAYA OIL-GAS: Names S. Pototskaya to Manage Assets ----------------------------------------------------------- The Arbitration Court of Orenburg Region appointed Ms. S. Pototskaya as Insolvency Manager for LLC Orenburgskaya Oil-Gas Company. She can be reached at: S. Pototskaya Post User Box 1515 460001 Orenburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-10380/2006-14GK. The Arbitration Court of Orenburg Region is located at: 9th January Str. 64 460046 Orenburg Region Russia The Debtor can be reached at: LLC Orenburgskaya Oil-Gas Company B. Korostelevykh Pr. 42-20 Orenburg Region Russia PROMSVYAZBANK: Fitch Changes Outlook on B+ IDR to Positive ---------------------------------------------------------- Fitch Ratings changed the Outlook on the Issuer Default Rating of Russia-based Promsvyazbank to Positive from Stable. The bank's ratings are affirmed at IDR B+, Short-term B, Individual D, and Support 5. The change in Outlook follows the recent announcement that German-based Commerzbank Auslandsbanken Holding AG, a wholly owned subsidiary of Commerzbank AG, has acquired a 15.3% stake in the bank. In Fitch's view, even as a minority shareholder Commerzbank could have a positive impact on certain aspects of PSB's governance and business development. Fitch also notes that Commerzbank may increase its stake and seek to gain control over the bank in the medium term. Fitch also notes the improving, albeit still challenging, Russian operating environment and hence the enhanced prospects for the country's leading privately owned banks. More generally, the ratings of PSB reflect significant balance sheet concentrations and risks inherent in the bank's rapid loan growth, which may also put pressure on liquidity and capitalisation levels. However, Fitch Ratings also acknowledges the broadening of PSB's franchise and regional coverage, improved funding profile and reduced related-party exposures and non-core assets. The ratings are also supported by the bank's acceptable profitability and asset quality to date. PSB is one of the largest Russian privately held banks, and is majority-owned by the Ananiev brothers, who are well-connected businessmen. PSB mainly serves large and mid-sized corporate clients. It has built a network of more than 120 points of sale across Russia to facilitate an ongoing regional diversification and franchise expansion into the retail and SME segments. SPIROVO-WOOD CJSC: Court Names A. Lebedev as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Tver Region appointed Mr. A. Lebedev as Insolvency Manager for CJSC Enterprise on Logging and Working Of Wood Spirovo-Wood. He can be reached at: A. Lebedev Post User Box 2616 170026 Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A66-2810/05. The Arbitration Court of Tver Region is located at: Room 7 Sovetskaya Str. 23b Tver Region Russia The Debtor can be reached at: CJSC Enterprise on Logging and Working of Wood Spirovo-Wood Pushkina Str. 76 Spirovo 171170 Tver region Russia TEBLESHSKIY FLAX: Tver Court Names B. Yun as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Tver Region appointed Mr. B. Yun as Insolvency Manager as Insolvency Manager for OJSC Tebleshskiy Flax Factory. He can be reached at: B. Yun Orlovskiy Per. 5 129110 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-66-6265/2006B. The Arbitration Court of Tver Region is located at: Room 7 Sovetskaya Str. 23b Tver Region Russia The Debtor can be reached at: B. Yun Orlovskiy Per. 5 129110 Moscow Region Russia TNK-BP HOLDING: US$1-Billion Loan Attracts Little Interests ----------------------------------------------------------- Bookrunners for OAO TNK-BP Holding are struggling to attract interest for the company's US$1-billion loan, Euroweek reports. "It's not doing that great in syndication," admitted a banker at one of the bookrunners, which include Bank of Tokyo-Mitsubishi- UFJ, Barclays Capital, BNP Paribas and Mizuho. The banks started inviting interests for the five-year loan in November. "The loan is extremely aggressive, especially considering how recently the borrower was in the market," a banker told Euroweek. TNK-BP launched the loan to refinance a US$1-billion nine-month loan it acquired in February. In exchange for the loan, TNK-BP is promising to pay 57.5bp over Libor for the first three years 62.5bp for the last years. "Banks are quite exhausted and how does one justify the lower margin on a longer tenor?" the bank told Euroweek, referring to the new loan's 69.5bp over Libor, lower than a previous deal's 73.75bp. TNK-BP recently completed a US$1.8 billion four-year unsecured refinancing, which pays margin of 65bp over Libor. The deal -- which has ABN Amro, Calyon and Citigroup as bookrunners -- raised a modest over-subscription but was not increased. Another banker at one of the bookrunners agreed that the loan's syndication was going slowly but expressed optimism that "it will get done by the end of the year." "People just seem to operate at different times," the banker told Euroweek. A lead bank for the load said the bookrunners had gone selectively to a small syndicate and that wider syndication would follow. 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. ===================== S W I T Z E R L A N D ===================== AR-BAU: Liestal Court Suspends Bankruptcy Proceedings ----------------------------------------------------- The Bankruptcy Court for the District of Liestal suspended the bankruptcy proceedings of LLC AR-Bau on Nov. 13, pursuant to Article 230 of the Swiss Bankruptcy Code. The Debtor, declared bankrupt on Sept. 28, can be contacted at: LLC AR-Bau Rheinstrasse 79 4402 Frenkendorf Liestal Switzerland The Bankruptcy Service of Liestal can be reached at: Bankruptcy Service of Liestal 4410 Liestal Basel-Landschaft Switzerland ARTPOWER LLC: Zug Court Suspends Bankruptcy Proceedings ------------------------------------------------------- The Bankruptcy Court for the District of Zug suspended the bankruptcy proceedings of LLC Artpower on Nov. 6, pursuant to Article 230 of the Swiss Bankruptcy Code. The bankruptcy proceedings will be declared closed once creditors fail to submit their claims and pay a CHF5,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on May 9, can be contacted at: LLC Artpower Rutiweid 2 6330 Cham Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland DISCOUNT LINE: Zug Court Suspends Bankruptcy Proceedings -------------------------------------------------------- The Bankruptcy Court for the District of Zug suspended the bankruptcy proceedings of LLC discount line on Nov. 6, pursuant to Article 230 of the Swiss Bankruptcy Code. The Debtor, declared bankrupt on Oct. 2, can be contacted at: LLC discount line Chamerstrasse 172 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland DURMULLER & SOHN: Luzern-Land Court Closes Bankruptcy Process ------------------------------------------------------------- The Bankruptcy Court of Luzern-Land entered Oct. 19 an order closing the bankruptcy proceedings of JSC Durmuller & Sohn. The Debtor can be reached at: JSC Durmuller & Sohn Rothenring 22 6015 Reussbuh.l Switzerland The Bankruptcy Service of Luzern-Land can be reached at: Bankruptcy Service of Luzern-Land 6011 Kriens Lucerne Switzerland F & R GASTRO: Luzern-Land Court Closes Bankruptcy Process --------------------------------------------------------- The Bankruptcy Court of Luzern-Land entered Oct. 19 an order closing the bankruptcy proceedings of LLC F & R Gastro. The Debtor can be reached at: LLC F & R Gastro Hartenfelsstrasse 2 6030 Ebikon Lucerne Switzerland The Bankruptcy Service of Luzern-Land can be reached at: Bankruptcy Service of Luzern-Land 6011 Kriens Lucerne Switzerland HCA INC: Earns US$240 Million in Quarter Ended Sept. 30 ------------------------------------------------------- HCA Inc. disclosed of its results for the quarter ended Sept. 30, 2006. Net income for the third quarter of 2006 totaled US$240 million, compared with US$280 million in the third quarter of 2005. Results for the third quarter of 2006 include gains on sales of facilities of US$41 million and transaction costs related to the proposed merger of US$9 million. Third quarter 2005 results include costs, net of estimated recoveries, of US$33 million related to hurricane damage and business interruption and a tax benefit of US$22 million from the repatriation of foreign earnings. Third Quarter Results Third quarter 2006 results include additional compensation costs of US$11 million due to the expensing of stock options and employee stock purchase plan shares associated with the Jan. 1, 2006, adoption of FASB Statement 123, "Share-Based Payment." Revenues in the third quarter of 2006 totaled US$6.2 billion compared to US$6.0 billion in the third quarter of 2005. Same facility revenues increased 5.4% compared to the third quarter of 2005. Same facility revenue per equivalent admission increased 6.4% in the third quarter of 2006 (6.8% increase when adjusted for uninsured discounts) compared to the third quarter of 2005. Same facility admissions increased 0.1% in the third quarter of 2006 compared to the prior year's third quarter. Same facility equivalent admissions, which take into consideration outpatient volumes, decreased 0.9% compared to the third quarter of 2005. Same facility outpatient surgical cases declined 2.8% in the third quarter of 2006, due to declines of 4.3% in hospital based outpatient surgeries and 0.1% in freestanding ambulatory surgical cases compared to the third quarter of 2005. The provision for doubtful accounts in the third quarter of 2006 totaled US$677 million, or 10.9% of revenues, compared to US$618 million, or 10.3% of revenues, in the prior year. Adjusted to reflect uninsured discounts, the provision for doubtful accounts totaled US$954 million, or 14.7% of revenues, in the third quarter of 2006, compared to US$859 million, or 13.7% of revenues, in the third quarter of 2005. Uninsured discounts in the third quarters of 2006 and 2005 were US$277 million and US$241 million, respectively. HCA's uninsured discount policy, which became effective in the first quarter of 2005, lowers revenues and the provision for doubtful accounts by generally corresponding amounts. Charity care totaled US$329 million in the third quarter of 2006, compared to US$298 million in the previous year's third quarter. Same facility uninsured admissions, which include charity patients, increased by 2,257 admissions or 10.1%, in the third quarter of 2006 compared to the same period of 2005. Assets Sold Effective July 1, 2006, the company sold four hospitals (three in West Virginia and one in Virginia) to LifePoint Hospitals, Inc. for US$256 million. A gain of US$32 million pretax on the sale of the hospital located in Virginia was recognized in the third quarter of 2006. Certificates of Need are required for the sale of the three West Virginia hospitals included in the transaction. Because filings seeking the revocation of the CONs were pending at the time of the closing, HCA and LifePoint have agreed that under certain circumstances, LifePoint may require us to repurchase the three West Virginia Hospitals. Generally, those circumstances require a final and nonappealable order revoking the CONs or an order requiring LifePoint to divest the hospitals or cease operations. In the event of such a repurchase, the repurchase price would be based upon the original purchase price and adjusted for working capital changes, capital expenditures and other items. Due to the CON proceedings and the repurchase provision, the company has deferred the recognition of the gain of approximately US$61 million pretax related to the three West Virginia hospitals until the CON appeals are resolved. Effective Oct. 1, 2006, the company sold two hospitals in Florida for US$266 million. A pretax gain of approximately US$91 million will be recognized in the fourth quarter of 2006 related to this sale. Cash Flow and Balance Sheet HCA's cash flows from operations totaled US$653 million in the third quarter of 2006 compared to US$938 million in the third quarter of 2005. Cash flows from operations during the third quarter of 2006 were negatively affected by the combined impact of lower net income and an increase of US$153 million in net accounts receivable during the third quarter of 2006 (primarily due to a delay by CMS in the processing of Medicare claims in September as mandated by provisions of the Deficit Reduction Act) compared to a decrease of US$78 million in net accounts receivable during the third quarter of 2005. As of Sept. 30, 2006, HCA's balance sheet reflected total debt of US$11.3 billion, stockholders' equity (including common and minority equity) of US$6.0 billion and total assets of US$23.1 billion. HCA's ratio of debt-to-debt plus common and minority equity was 65.2% at Sept. 30, 2006, compared to 64.8% at Dec. 31, 2005. HCA had 409.7 million common shares outstanding at Sept. 30, 2006, compared to 417.5 million shares at Dec. 31, 2005. Headquartered in Nashville, Tennessee, HCA (Hospital Corporation of America) Inc. (NYSE: HCA) -- http://www.hcahealthcare.com/-- is a healthcare services provider, composed of locally managed facilities that include approximately 182 hospitals and 94 outpatient surgery centers in 22 states, England and Switzerland. At its founding in 1968, HCA was one of the nation's first hospital companies. * * * As reported in the Troubled Company Reporter on Nov. 22, 2006, Fitch downgraded and removed from Rating Watch Negative HCA, Inc.'s existing ratings as a result of the completion of its leveraged buyout. Fitch's rating action includes a downgrade of the company's Issuer Default Rating to 'B' from 'BB+' and a downgrade of its senior unsecured notes to 'CCC+/RR6' from 'BB+'. Fitch has also withdrawn the 'BB+' rating on the Unsecured Bank Facility. As reported in the Troubled Company Reporter on Nov. 22, 2006, Moody's Investors Service downgraded the ratings of the senior unsecured notes assumed in the capital structure of HCA Inc. to Caa1 from Ba2 after the closing of the leveraged buyout of the company. JEANS STATION: Binningen Court Suspends Bankruptcy Proceedings -------------------------------------------------------------- The Bankruptcy Court for the District of Binningen suspended the bankruptcy proceedings of LLC Jeans Station on Nov. 13, pursuant to Article 230 of the Swiss Bankruptcy Code. The bankruptcy proceedings will be declared closed once creditors fail to submit their claims and pay a CHF5,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Sept. 12, can be contacted at: LLC Jeans Station Muhlemattstrasse 25 4104 Oberwil Basel-Landschaft Switzerland The Bankruptcy Service of Binningen can be reached at: Bankruptcy Service of Binningen 4102 Binningen Basel-Landschaft Switzerland ROHRER GENERALBAUUNTERNEHMUNG: Court Closes Bankruptcy Process -------------------------------------------------------------- The Bankruptcy Court of Luzern-Land entered Oct. 19 an order closing the bankruptcy proceedings of LLC Rohrer Generalbauunternehmung. The Debtor can be reached at: LLC Rohrer Generalbauunternehmung Hellmuhlestrasse 9 6344 Meierskappel Lucerne Switzerland The Bankruptcy Service of Luzern-Land can be reached at: Bankruptcy Service of Luzern-Land 6011 Kriens Lucerne Switzerland SCHMID INFORMATIK: Court Closes Bankruptcy Proceedings ------------------------------------------------------ The Bankruptcy Court of Luzern-Land entered Oct. 19 an order closing the bankruptcy proceedings of JSC Schmid Informatik. The Debtor can be reached at: JSC Schmid Informatik 6102 Malters Lucerne Switzerland The Bankruptcy Service of Luzern-Land can be reached at: Bankruptcy Service of Luzern-Land 6011 Kriens Lucerne Switzerland SWIBRAS JSC: Liestal Court Starts Bankruptcy Proceedings -------------------------------------------------------- The Bankruptcy Court of Liestal commenced bankruptcy proceedings against JSC Swibras on Oct. 18. The Debtor can be reached at: JSC Swibras Grussenholzliweg 3 4133 Pratteln Basel-Landschaft Switzerland The Bankruptcy Service of Liestal can be reached at: Bankruptcy Service of Liestal 4410 Liestal Basel-Country Switzerland ZENTRAL-TRANS: Willisau Court Starts Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of Willisau commenced bankruptcy proceedings against LLC Zentral-Trans on Oct. 25. The Debtor can be reached at: LLC Zentral-Trans Dorfmatte 7 6243 Egolzwil Lucerne Switzerland The Bankruptcy Service of Willisau can be reached at: Bankruptcy Service of Willisau 6130 Willisau Lucerne Switzerland ============= U K R A I N E ============= MOSAIC COMPANY: Completes US$2 Billion Refinancing -------------------------------------------------- The Mosaic Company has completed a refinancing pursuant to which: * subsidiaries of Mosaic purchased approximately US$1,410,991,676 aggregate principal amount of their outstanding senior notes and debentures pursuant to tender offers. * Mosaic refinanced a US$345 million term loan B facility under its existing senior secured bank credit agreement. * Mosaic funded the purchase of the existing senior notes and debentures and the refinancing of the existing term loan B facility through the issuance of US$475 million aggregate principal amount of 7-3/8% Senior Notes due 2014 and US$475 million aggregate principal amount of 7- 5/8% Senior Notes due 2016, and new US$400 million term loan A-1 and US$612 million term loan B facilities under its amended and restated senior secured bank credit agreement. The senior notes and debentures purchased by subsidiaries of Mosaic pursuant to tender offers consisted of US$124,038,000 aggregate principal amount of Mosaic Global Holdings Inc.'s 6.875% Debentures due 2007, US$370,979,676 aggregate principal amount of its 10.875% Senior Notes due 2008, US$374,065,000 aggregate principal amount of its 11.250% Senior Notes due 2011, and US$396,090,000 aggregate principal amount of its 10.875% Senior Notes due 2013, and US$145,819,000 aggregate principal amount of Phosphate Acquisition Partners L.P.'s 7% Senior Notes due 2008. After giving effect to these purchases, US$25,962,000 aggregate principal amount of Mosaic Global Holdings Inc.'s 6.875% Debentures due 2007, US$23,908,324 aggregate principal amount of its 10.875% Senior Notes due 2008, US$29,395,000 aggregate principal amount of its 11.250% Senior Notes due 2011, and US$3,525,000 aggregate principal amount of its 10.875% Senior Notes due 2013 and US$4,181,000 aggregate principal amount of Phosphate Acquisition Partners L.P.'s 7% Senior Notes due 2008 remain outstanding. The indentures pursuant to which these senior notes and debentures were issued were amended to remove substantially all of their restrictive covenants. About The Mosaic Company The Mosaic Company -- http://www.mosaicco.com/-- produces and markets concentrated phosphate and potash crop nutrients. For the global agriculture industry, Mosaic is a single source of phosphates, potash, nitrogen fertilizers and feed ingredients. In Europe, the company maintains operations and/or sales offices in Ukraine, France and Russia. * * * As reported in the Troubled Company Reporter-Europe on Nov. 14, Standard & Poor's Ratings Services revised its outlook on The Mosaic Co. to negative from stable. Standard & Poor's affirmed its 'BB' long-term and 'B-1' short-term corporate credit ratings on the company. As reported in the TCR-Europe on Nov. 9, 2006, Fitch assigned a 'BB' rating to The Mosaic Company's proposed senior unsecured notes due 2014 and 2016 and a 'BB+' rating to the company's proposed senior secured term loans. The ratings affected approximately US$950 million of new senior notes and US$1.05 billion of new term loans. Moody's Investors Service assigned Ba1 ratings to The Mosaic Company's proposed new US$1.05 billion guaranteed senior secured credit facilities. Moody's also assigned B1 ratings to US$900 million of proposed senior unsecured debt. Mosaic's Ba3 corporate family rating was affirmed but the ratings of the existing revolver and the term loan A were downgraded to Ba1 from Baa3 and those of the existing senior unsecured debt lowered to B1 from Ba3 in accordance with the LGD methodology. Moody's said the ratings outlook is stable. TNK-BP HOLDING: US$1-Billion Loan Attracts Little Interests ----------------------------------------------------------- Bookrunners for OAO TNK-BP Holding are struggling to attract interest for the company's US$1-billion loan, Euroweek reports. "It's not doing that great in syndication," admitted a banker at one of the bookrunners, which include Bank of Tokyo-Mitsubishi- UFJ, Barclays Capital, BNP Paribas and Mizuho. The banks started inviting interests for the five-year loan in November. "The loan is extremely aggressive, especially considering how recently the borrower was in the market," a banker told Euroweek. TNK-BP launched the loan to refinance a US$1-billion nine-month loan it acquired in February. In exchange for the loan, TNK-BP is promising to pay 57.5bp over Libor for the first three years 62.5bp for the last years. "Banks are quite exhausted and how does one justify the lower margin on a longer tenor?" the bank told Euroweek, referring to the new loan's 69.5bp over Libor, lower than a previous deal's 73.75bp. TNK-BP recently completed a US$1.8 billion four-year unsecured refinancing, which pays margin of 65bp over Libor. The deal -- which has ABN Amro, Calyon and Citigroup as bookrunners -- raised a modest over-subscription but was not increased. Another banker at one of the bookrunners agreed that the loan's syndication was going slowly but expressed optimism that "it will get done by the end of the year." "People just seem to operate at different times," the banker told Euroweek. A lead bank for the load said the bookrunners had gone selectively to a small syndicate and that wider syndication would follow. 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. =========================== U N I T E D K I N G D O M =========================== AGENDA LEISURE: Up for Sale as Going Concern -------------------------------------------- Kerry Bailey and Jon Newell of PKF (U.K.) LLP, in their capacity as joint administrators for Agenda Leisure Ltd. (t/a Deva Marine), are offering to sell the company's business and assets as a going concern. Features: -- a well-established North Wales based business dealing in the sale of new and used sports/power boats and cruisers, brokerage, repairs & servicing and storage; -- agents for Jeanneau, Maxum and Baja power boats; -- three leasehold premises totaling 4,890 square meter comprising a retail/sales outlet at Conway Marina and a sales area, workshops and indoor & outdoor storage facilities at Pentraeth, Anglesey; -- turnover for the year ended Oct. 31, 2006, at GBP6 million; -- skilled sales and workshop personnel; and -- substantial order book. Inquiries can be addressed to: Kerry Bailey PKF (U.K.) LLP Sovereign House Queen Street Manchester M2 5HR United Kingdom PKF (U.K.) LLP -- http://www.pkf.co.uk/-- specializes in advising the management of developing private and public businesses. Its principal services include assurance & advisory; corporate finance; corporate recovery & insolvency; forensic; management consultancy and taxation. It also offers financial services through its FSA authorized company, PKF Financial Planning Limited. AKER KVAERNER: Inks Deals to Modify Norsk Hydro's Brage Platform ---------------------------------------------------------------- Norsk Hydro ASA has awarded Aker Kvaerner ASA a contract for upgrading of the system for re-injection of produced water on the Brage platform. The scope of the contract includes engineering, procurement and constructional installation. The contract value is around NOK150 million and project completion is scheduled for the end of 2008. Aker Kvaerner will execute the Brage modification project in Bergen. Pre-fabrication of steel and pipework will be carried out at the company's workshops. Design and procurement will begin immediately and pre-fabrication will start in April 2007. The offshore installation work will take place during 2007 and 2008. The main scope will be installed during a shut-down in 2008. Maintenance and modification work is one of the core business streams in Aker Kvaerner and is a key strategic focus area for the company in the North Sea and internationally. Aker Kvaerner has established broad competence within this market segment through long-term contracts with the operating companies. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. ALPRO PRODUCTS: Brings In Begbies Traynor as Administrators ----------------------------------------------------------- P. Stanley and Kevin Coates of Begbies Traynor were appointed joint administrators of Alpro Products Ltd. (Company Number 1960447) on Nov. 23. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Alpro Products Ltd. can be reached at: Hibbert House Baxters Lane St. Helens Merseyside WA9 3NP United Kingdom Tel: 01744 851 900 Fax: 01744 851 990 ASSET CONSTRUCTION: Creditors Confirm Liquidator's Appointment -------------------------------------------------------------- Creditors of Asset Construction Limited confirmed Nov. 23 the appointment of Roderick Graham Butcher of Butcher Woods as the company's Liquidator. The company can be reached at: Asset Construction Limited Knowle House 51 Station Road Knowle Solihull West Midlands B93 0HN United Kingdom Tel: 01564 732 010 Fax: 01564 732 001 B-LIVE ENTERTAINMENT: Appoints Gordon Craig to Administer Assets ---------------------------------------------------------------- Gordon Craig of Cresswall Associates Ltd. was appointed administrator of B-Live Entertainment Ltd. (Company Number 05319587) on Oct. 31. The administrator can be reached at: Gordon Craig Cresswall Associates Ltd. West Lancashire Investment Centre Maple View Whitemoss Business Park Skelmersdale Lancashire WN8 9TG United Kingdom Tel: 01695 712683 B-Live Entertainment Ltd. can be reached at: 507 Old York Road Wandsworth London SW18 1TF United Kingdom Tel: 020 8875 2525 BETTA STATIONERS: Appoints Barry P. Knights as Liquidator --------------------------------------------------------- Barry P. Knights of Knights & Company was appointed Liquidator of Betta Stationers Limited (formerly D&E Total Installations Ltd.) on Nov. 23 for the creditors' voluntary winding-up procedure. Headquartered in London, England, Betta Stationers Limited -- http://www.bettastationers.co.uk/-- supplies computer and I.T. equipment, toners and ink cartridges, envelopes, and office furniture, The company also provides printing services. BRAVO! FOODS: Sept. 30 Balance Sheet Upside-Down by US$35.6 Mln --------------------------------------------------------------- Bravo! Foods International Corp. (nka Bravo! Brands Inc.) reported a US$1.2 million net loss on US$5.1 million of net revenues for the three months ended Sept. 30, 2006, compared with US$17.6 million of net income earned on US$3.2 million of net revenues for the same period in 2005. At Sept. 30, 2006, the company's balance sheet showed US$39.7 million in total assets and US$72.9 million in total liabilities, resulting in a US$35.6 million stockholders' deficit. The company previously had US$32.8 million equity deficit at June 30, 2006. The company's Sept. 30 balance sheet also showed strained liquidity with US$18 million in total current assets available to pay US$72.7 million in total current liabilities. As of Sept. 30, 2006, the company reported that net cash used in operating activities was US$16,594,704, net cash provided by financing activities was US$13,462,392 and net cash used in investing activities was US$708,044 during the nine months ended Sept. 30, 2006. A full-text copy of the company's quarterly report is available for free at http://researcharchives.com/t/s?165d The company says that its operating losses, negative cash flow from operations and negative working capital is largely the effect of its recording of US$37,075,023 for derivative liabilities. In addition, the company relates that it has experienced delays in filing its financial statements and registration statements due to errors in historical accounting that now have been corrected. The inability to make these filings resulted in the recognition of penalties payable to the investors. These penalties have ceased with the completed filings and the registration of the common shares into which the investors' financial instruments are convertible. Going Concern Doubt Lazar Levine & Felix LLP expressed substantial doubt about Bravo! Foods' ability to continue as a going concern after auditing the Company's financial statements for the years ended Dec. 31, 2005 and 2004. The auditing firm pointed to the Company's net losses, working capital deficiency at Dec. 31, 2005, and delinquency in the payment of certain debts. Based in North Palm Beach, Florida, Bravo! Foods International Corp. nka Bravo! Brands Inc. -- http://www.bravobrands.com/-- develops, brands, markets, distributes and sells flavored milk products throughout the 50 United States, Great Britain and various Middle Eastern countries. BRECONRIDGE MANUFACTURING: Administrators Begin Asset Sale ---------------------------------------------------------- Andy Peters and Dominic Wong, in their capacity as Joint Administrators for Breconridge Manufacturing Solutions Ltd., are offering to sell the company's business and assets. Features: -- turnover of US$7 million to May 2006; -- established provider of repairs, distribution and final assembly services to the telecommunications sector; -- leasehold premises of 30,000 square feet in Caldicot, Monmouthshire; -- skilled workforce of 58 full & part time staff; and -- ISO 9001-2000 and 14001-2004. Inquiries can be addressed to: Brian Walford Deloitte & Touche LLP Four Brindleyplace Birmingham B1 2HZ United Kingdom Tel: +44 (0)121 695 5285 Fax: +44 (0)121 695 5555 E-mail: bwalford@deloitte.co.uk Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. CONTRACT GAS: Taps Lloyd Biscoe to Liquidate Assets --------------------------------------------------- Lloyd Biscoe of Begbies Traynor was appointed Liquidator of Contract Gas Services Limited on Nov. 22 for the creditors' voluntary winding-up procedure. The company can be reached at: Contract Gas Services Limited 10 Essex Gardens Leigh-On-Sea Essex SS9 4HG United Kingdom Tel: 01702 716 816 EASTMAN KODAK: Posts US$37 Mil. Net Loss in 2006 Third Quarter -------------------------------------------------------------- Eastman Kodak Company filed its third quarter financial statements ended Sept. 30, 2006, with the Securities and Exchange Commission disclosing a US$37 million net loss on US$3.2 billion of revenues, compared with a US$914 million net loss on US$3.6 billion of total revenues for the same period in 2005. Net worldwide sales were US$3.2 billion for the third quarter of 2006 as compared with US$3.6 billion for the third quarter of 2005, representing a decrease of US$349 million or 10%. The decrease in net sales was primarily due to declines in volume and unfavorable price-mix, which decreased third quarter sales. Net sales in the U.S. were US$1.3 billion for the third quarter of 2006 as compared with US$1.4 billion for the prior year quarter, representing a decrease of US$158 million, or 11%. Net sales outside the U.S. were US$1.9 billion for the current quarter as compared with US$2.1 billion for the third quarter of 2005, representing a decrease of US$191 million, or 9%, which includes the positive impact of foreign currency fluctuations of US$25 million, or 1%. Gross Profit Gross profit was US$874 million for the third quarter of 2006 as compared with US$922 million for the third quarter of 2005, representing a decrease of US$48 million, or 5%. The gross profit margin was 27.3% in the current quarter as compared with 25.9% in the prior year quarter. The increase was primarily attributable to: (1) reductions in manufacturing costs, which increased gross profit margins by approximately 1.2 percentage points; (2) positive price/mix, primarily attributable to the year- over-year increase in royalty income related to digital capture, which increased gross profit margins by approximately 0.5 percentage points; and (3) foreign exchange, which positively impacted gross profit margins by approximately 0.3 percentage points. These increases were partially offset by volume declines in each of the company's business lines. Loss From Continuing Operations The loss from continuing operations for the third quarter of 2006 was US$37 million as compared with a loss from continuing operations for 2005 third quarter of US$915 million, representing an increase in earnings of US$878 million. This decrease in loss from continuing operations is attributable to the following factors: (1) Selling, General and Administrative Expenses Selling, general and administrative expenses (SG&A) were US$565 million for the third quarter of 2006 as compared with US$670 million for the prior year quarter, representing a decrease of US$105 million, or 16%. SG&A as a percentage of sales decreased from 19% for the third quarter of 2005 to 18% for the current year quarter. The absolute dollar decrease in SG&A is primarily attributable to declines in advertising spending, a reduction in selling expenses, and lower employee benefit costs resulting from ongoing company-wide cost reduction initiatives. (2) Research and Development Costs Research and development costs (R&D) were US$170 million for the third quarter of 2006 as compared with US$212 million for the third quarter of 2005, representing a decrease of US$42 million, or 20%. R&D as a percentage of sales was 5% for the third quarter of 2006 as compared with the prior year quarter of 6%. This decrease was primarily driven by significant spending reductions in the current quarter related to traditional products and services, and was also impacted by reductions in R&D spending related to the display business. (3) Restructuring Costs and Others Restructuring costs and other were US$137 million for the third quarter of 2006 as compared with US$163 million for the third quarter of 2005, representing a decrease of US$26 million or 16%. (4) Interest Expense Interest expense for the third quarter of 2006 was US$74 million as compared with US$57 million for the prior year quarter, representing an increase of US$17 million, or 30%. Higher interest expense is a result of a non-recurring charge related to a non-U.S. export tax claim, and higher interest rates under the Company's October 2005 US$2.7 billion Senior Secured Credit Facilities. Earnings/Loss From Continuing Operations Earnings from continuing operations before interest, other income, net and income taxes for the third quarter of 2006 were US$2 million as compared with a loss of US$123 million for the third quarter of 2005, representing an increase in earnings of US$125 million. Company's Solvency and Cash Flow Activity At Sept. 30, 2006, the company's balance sheet showed US$14 billion in total assets, US$12.2 billion in total liabilities, and US$1.8 billion in stockholders' equity. At Dec. 31, 2005, the company had US$15.2 billion in total assets, US$13 billion in total liability, and US$2.3 billion in stockholders' equity. The company's cash and cash equivalents decreased US$563 million from US$1.7 billion at Dec. 31, 2005, to US$1.1 billion at Sept. 30, 2006. The decrease resulted primarily from US$72 million of net cash used in operating activities, US$182 million of net cash used in investing activities, and US$319 million of net cash used in financing activities. 2004 - 2007 Restructuring Program The company announced on Jan. 22, 2004, that it planned to develop and execute a comprehensive cost reduction program throughout the 2004 to 2006 timeframe. The objective of these actions is to achieve a business model appropriate for the company's traditional businesses, and to sharpen the company's competitiveness in digital markets. The Program was expected to result in total charges of US$1.3 billion to US$1.7 billion over the three-year period, of which US$700 million to US$900 million are related to severance, with the remainder relating to the disposal of buildings and equipment. Overall, the company's worldwide facility square footage will be reduced by approximately one-third. Approximately 12,000 to 15,000 positions worldwide will be eliminated through these actions primarily in global manufacturing, selected traditional businesses and corporate administration. On July 20, 2005, the company announced that it would extend the restructuring activity, originally announced in January 2004, as part of its efforts to accelerate its digital transformation and to respond to a faster-than-expected decline in consumer film sales. As a result of this announcement, the overall restructuring program was renamed the "2004-2007 Restructuring Program." Under the 2004-2007 Restructuring Program, the company expected to increase the total employment reduction to a range of 22,500 to 25,000 positions, and to reduce its traditional manufacturing infrastructure to approximately US$1 billion, compared with US$2.9 billion as of Dec. 31, 2004. These changes were expected to increase the total charges under the Program to a range of US$2.7 billion to US$3.0 billion. Based on the actual actions taken through the end of the third quarter of 2006 under this Program and an understanding of the estimated remaining actions to be taken, the Company expects that the employment reductions and total charges under this Program will be within the ranges of 25,000 to 27,000 positions and US$3.0 billion to US$3.4 billion, respectively, as indicated in the second quarter 2006 Form 10-Q. When essentially completed in 2007, the activities under this Program will result in a business model consistent with what is necessary to compete profitably in digital markets. A full-text copy of the company's financial statements for the quarterly period ended Sept. 30, 2006 are available for free at http://researcharchives.com/t/s?15af About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Co. -- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. * * * As reported in the Troubled Company Reporter on Nov. 9, 2006, Moody's Investors Service placed Eastman Kodak Company's B1 Corporate Family Rating on review for a possible downgrade. Moody's will continue to focus on the company's potential sale of the Kodak Health Group as well as the fundamental operating performance of the company. Moody's commented that if the sale of KHG was not pending, Moody's would expect to confirm the company's B1 rating with a negative outlook. The company intends to announce the outcome of the KHG strategic review by calendar year end 2006. As reported in the Troubled Company Reporter on Aug. 7, 2006, Standard & Poor's Ratings Services placed its ratings on Eastman Kodak Co. (B+/Watch Neg/--) on CreditWatch with negative implications. The Rochester, New York-based imaging company had US$3.5 billion in debt as of June 30, 2006. ENRON CORP: Plaintiffs Barred from Prosecuting Derivative Claims ---------------------------------------------------------------- The Honorable Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York has enjoined Enron Corp. and its debtor-affiliates' Official Committee of Unsecured Creditors, the plaintiffs in the Chinn, Young and McMurray Actions, from further prosecuting any claims in the derivative claim actions initiated by the reorganized Debtors. The Debtors had filed a request for a global order to enforce the automatic stay and prevent various plaintiffs in 13 actions against current or former officers and directors of Enron Corp., as well as certain third-party entities, such as Arthur Andersen LLP, from further prosecuting derivative claims in violation of the automatic stay. The 13 actions were: -- Chinn, et al. v. Belfer, et al., C.A. No. 03-CV-862 (S.D. Tex.); -- Young v. Andersen L.L.P., C.A. No. 04-1546 (S.D. Tex.); -- Pearson, et al. v. Fastow, et al., C.A. No. 03-5332 (S.D. Tex.); -- Rosen, et al. v. Fastow, et al., C.A. No. 03-5333 (S.D. Tex.); -- Ahlich, et al. v. Arthur Andersen, L.L.P., et al., C.A. No. 03-5334 (S.D. Tex.); -- Delgado, et al. v. Fastow, et al., C.A. No. 03-5335 (S.D. Tex.); -- Jose, et al. v. Arthur Andersen, L.L.P., et al., C.A. No. H-03-1087 (S.D. Tex.) -- Coy, et al. v. Arthur Andersen, L.L.P., et al., C.A. No. H-01-4248 (S.D. Tex.); -- McLaren, et al. v. Arthur Andersen, L.L.P., Cause No. 01CV1059 (Dist. Ct. Tex.); -- Spector v. Lay, et al., C.A. No. 02-394-HA (D. Or.); -- Odam, et al. v. Enron Corp., et al., H-01-3914 (S.D. Tex.); and -- Bullock, et al. v. Arthur Andersen, L.L.P., et al., Cause No. 32716 (Dist. Ct. Tex.) Certain of the plaintiffs objected to the Debtors' request, asserting, among others, that the Bankruptcy Court lacked jurisdiction over the Derivative Actions. On Oct. 4, 2002, Judge Gonzalez granted in part the Debtors' request to the extent that: 1. the relief sought against the S&C plaintiffs is reserved awaiting a determination by the state court as to whether any of their claims are direct or derivative, provided however, that if the state court determines that any claim is derivative, the claim would be subject to the Section 362 automatic stay of the Bankruptcy Code; 2. the Coy and McClaren plaintiffs are stayed from continuing to prosecute their claims because they are based on injury to the corporation that devolved upon the claimants, thus, are derivative claims that are property of the Debtors' estate and subject to Section 362 automatic stay of the Bankruptcy Code; 3. the relief sought against the Bullock plaintiffs is reserved awaiting a decision by the state court of whether any of their "holding" claims are direct or derivative, provided however, that if any of those claims are determined to be derivative by the state court, further prosecution of those claims would be stayed by Section 362; and 4. the plaintiffs in the remaining F&A actions and the Young action are ordered to contact the Chambers for the purpose of scheduling a hearing at which time the parties can advise the Court as to the status of those actions. The Reorganized Debtors eventually filed a supplemental motion asking the Court that the Plaintiffs in the Remaining Actions and the McMurray Action be enjoined from further prosecuting their Holding Claims, and to rule that the Claims are derivative and constitute property of the Debtors' Chapter 11 estates. Chinn and McMurray Plaintiffs Oppose The Chinn and McMurray Plaintiffs pointed out that, in reality, the Debtors are asking the Court to reconsider its Global Stay Order, in which the Court ruled, with specific reference to the Chinn Plaintiffs, "that the relief sought in the Motion against the S&C plaintiffs is reserved awaiting a determination by the state court as to whether any of their claims are direct or derivative, provided, however, that if the state court determines that any claim is derivative, such claim would be subject to the Section 362 automatic stay of the Bankruptcy Code." Michael S. Etkin, Esq., at Lowenstein Sandler, PC, in New York, noted that the question of whether or not Plaintiffs' claims were, in fact, derivative, still awaited a final ruling by the Southern District of Texas. Accordingly, the Plaintiffs sought an adjournment of the hearing on the supplemental motion pending Judge Harmon's final ruling on their reconsideration motion. After due consideration, Judge Gonzalez orders that: (1) the Plaintiffs in the Chinn, Young and McMurray Actions are enjoined from further prosecuting any claims in the Actions because all of the claims are based on diminution in the value of Enron stock, which the Plaintiffs held during the relevant period; (2) the Claims are derivative claims as a matter of law and constitute property of Enron's Chapter 11 estates pursuant to Section 541(a) and subject to the automatic stay under Section 362(a)(3); and (3) the Order will not have any affect on, or stay the prosecution of any claims alleged in the Stayed Actions by the Official Committee of Unsecured Creditors pursuant to: (a) the Aug. 28, 2006 Order of the U.S. District Court for the Southern District of Texas in C.A. Nos. 01-3645, H-03-5542 and H-04-1546, (b) the Feb. 28, 2005 Order of the District Court for the Southern District of Texas in C.A. Nos. H-01-3645 and H-04-1546, and (c) the June 14, 2004 and Sept. 12, 2005 Orders of the District Court for the Southern District of Texas in C.A. No. H-03-862. About Enron Corp. Headquartered in Houston, Texas, Enron Corporation filed for chapter 11 protection on December 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033) following controversy over accounting procedures, which caused Enron's stock price and credit rating to drop sharply. Judge Gonzalez confirmed the Company's Modified Fifth Amended Plan on July 15, 2004, and numerous appeals followed. The Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004. Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen, Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP represent the Debtor. Jeffrey K. Milton, Esq., Luc A. Despins, Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. (Enron Bankruptcy News, Issue No. 182; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ENRON CORP: Court Approves Deseret Generation Settlement Pact ------------------------------------------------------------- The Honorable Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York approved a settlement agreement among Enron Corp., Enron North America Corp., and Enron Power Marketing Inc., and Deseret Generation & Transmission Co-Operative. As reported in the Troubled Company Reporter on Nov. 23, 2006, the Enron Entities and Deseret Generation are parties to an Oct. 31, 2001, electricity SWAP agreement and an contingent call contract, dated April 30, 2001. EPMI and Deseret had also entered into a Confirmation Agreement, dated April 30, 2001, for an electricity swap pursuant to the Western Systems Power Pool Agreement. On May 1, 2001, Enron executed a US$75,000,000 Guaranty to support ENA's obligations to Deseret under the Contingent Call Contract. On Aug. 1, 2002, Deseret filed Claim Nos. 2594, 2595 and 2597 each for US$16,548,209 against Enron, EPMI and ENA. Deseret alleges that Enron agreed to guaranty ENA and EPMI's obligations arising under the Contracts through the Guaranty and an unexecuted guaranty agreement attached to the EPMI SWAP Contract. The Debtors subsequently filed objections to Deseret's claims seeking to avoid the contracts and to reduce Deseret's claim amounts. To settle their disputes, the parties reached a settlement agreement, which specifically provides that: (1) Deseret's Claim No. 2597 will be reduced and allowed as a Class 5 Allowed General Unsecured Claim against ENA for US$2,150,925; (2) Deseret's Claim No. 2595 will be reduced and allowed as a Class 6 Allowed General Unsecured Claim against ENA for US$6,772,315; (3) Deseret's Claim No. 2594 will be disallowed and expunged in its entirety; (4) they will mutually release each other from all claims related to the Contracts; and (5) the Adversary Proceeding will be dismissed with prejudice. Headquartered in Houston, Texas, Enron Corporation filed for chapter 11 protection on December 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033) following controversy over accounting procedures, which caused Enron's stock price and credit rating to drop sharply. Judge Gonzalez confirmed the Company's Modified Fifth Amended Plan on July 15, 2004, and numerous appeals followed. The Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004. Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen, Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP represent the Debtor. Jeffrey K. Milton, Esq., Luc A. Despins, Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. (Enron Bankruptcy News, Issue No. 183; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) FELDAROLL FOUNDRY: Taps Smith & Williamson as Administrators ------------------------------------------------------------ Stephen Robert Cork and Joanne Elizabeth Milner of Smith & Williamson Ltd. were appointed joint administrators of Feldaroll Foundry Ltd. (Company Number 01390493) on Nov. 20. Smith & Williamson -- http://www.smith.williamson.co.uk/-- provides investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. Feldaroll Foundry Ltd. can be reached at: Bailie Gate Industrial Estate Sturminster Marshall Wimborne Dorset BH21 4DB United Kingdom Tel: 01258 857 754 Fax: 01258 857 353 FLOWER SHOP: John Paul Bell Leads Liquidation Procedure ------------------------------------------------------- John Paul Bell of Clark Bell was appointed Liquidator of The Flower Shop Limited on Nov. 17 for the creditors' voluntary winding-up procedure. The company can be reached at: The Flower Shop Limited 90 Witton Street Northwich Cheshire CW9 5AE United Kingdom Tel: 01606 430 09 Fax: 01606 496 92 FORD MOTOR: Moody's Junks US$3-Billion Senior Convertible Notes --------------------------------------------------------------- Moody's Investors Service assigned a Caa1 (LGD4, 62%) rating to Ford Motor Co.'s US$3 billion of senior convertible notes due 2036. The rating reflects Moody's expectation that proceeds will be used to enhance Ford's liquidity position, and also reflects Moody's Loss Given Default Methodology. Bruce Clark, senior vice president with Moody's, said that "This convertible issue is an expected component of Ford's liquidity- building funding program that also includes an announced US$8 billion secured revolving credit facility and a US$7 billion secured term loan." Ford has indicated that due to the level of market interest, the ultimate size of the revolver and the convertible notes could be larger than the originally indicated amounts of US$8 billion and US$3 billion respectively. Should such increases occur, Moody's anticipates that the company's current rating levels would be maintained. These ratings are: -- corporate family - B3/negative outlook; -- secured debt - Ba3(LGD2,19%); -- senior unsecured debt - Caa1 (LGD4, 62%); and -- trust preferred - Caa2(LGD6, 93%). Ford Motor Co., headquartered in Dearborn, Michigan, is the world's third largest automobile manufacturer. FORD MOTOR: Fitch Assigns B/RR4 Ratings to US$3-Billion Notes ------------------------------------------------------------- Fitch Ratings assigned B/RR4 ratings to the US$3 billion in senior unsecured convertible notes being offered by Ford Motor Co. The securities rank pari-pasu with other existing senior unsecured debt. The notes are part of an US$18 billion financing plan underway by Ford to shore up liquidity as it faces several years of very heavy negative cash flows. Under Fitch's Recovery Rating analysis, it is estimated that unsecured holders would recovery between 30%-35% of principal value in the event of a bankruptcy. Fitch could review the rating of the unsecured debt for further downgrade if the final amount of the financings being arranged is meaningfully larger than currently anticipated, further impairing the recovery of unsecured holders, or if changes to Fitch's assumptions are warranted. Recovery estimates assume a significant restructuring of North American operations, values associated with various international holdings, and 100% ownership of Ford Motor Credit Company. The Rating Outlook remains Negative. Ford has estimated that cash outflows over the next several years will approximate US$17 billion as a result of operating losses, restructuring costs and working capital outflows. Ford is expected to have cash of approximately US$20 billion at year- end 2006, plus an additional US$3 billion in long-term VEBA that is expected to be spent over the next several years. Of the US$18 billion in new financing being arranged, approximately US$15 billion is in the form of secured bank lines, thereby subordinating existing unsecured debt of approximately US$18 billion and the planned offering of US$3 billion in convertible notes. Approximately US$7 billion of expected cash outflows are associated with restructuring costs. Ford also faces a renegotiation of its UAW contract in September 2007, and a stressed supply base, both of which represent event risk through potential production disruptions. FORD MOTOR: S&P Junks Rating on Proposed US$3-Bil. Senior Debt -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'CCC+' rating to Ford Motor Co.'s proposed US$3-billion senior unsecured convertible debt issue. The company is in the process of raising several billion dollars of financing, including the proposed convertible offering. Much of the pending financing is secured, resulting in Ford's unsecured debt being rated two notches below the credit corporate rating. Ford intends to use the proceeds from the various borrowings under the senior secured credit facilities and from the offering of the unsecured notes to fund prospective cash operating losses and restructuring plans while preserving cash and short-term VEBA trust balances near current levels of about US$20 billion. FORD MOTOR: November U.S. Sales Down 10% Compared with Last Year ---------------------------------------------------------------- Ford Motor Company's dealers delivered 182,259 vehicles to U.S. customers in November, down 10% compared with a year ago. November car sales were 3% lower than a year ago, reflecting lower deliveries to fleet customers. Sales to individual retail customers were up reflecting higher sales for the company's new mid-size sedans (Ford Fusion, Mercury Milan and Lincoln MKZ). Fusion was up 66%, Milan was up 29% and MKZ was up 83%. These 2007 models feature standard side-air bags and available all- wheel drive. Overall, truck sales were down 13%, but the company's all-new, full-size sport utility vehicles (Ford Expedition and Lincoln Navigator) posted higher sales. Expedition sales were up 14% and Navigator sales were up 65%. At the end of November, Ford, Lincoln and Mercury inventories were estimated at 631,000 units. This level is 122,000 units lower than a year ago. The company estimates 85% of the inventory is new 2007 models. North American Production In the fourth quarter 2006, the company plans to produce 620,000 vehicles (240,000 cars and 380,000 trucks). This plan is 15,000 units lower than the previously announced plan reflecting the temporary suspension of Freestar production at the Oakville Assembly Plant in Ontario, Canada. In the first quarter 2007, the company plans to produce 750,000 vehicles (240,000 cars and 510,000 trucks). In the first quarter 2006, the company produced 876,000 vehicles (316,000 cars and 560,000 trucks). Earlier, the company indicated first half 2007 production would be 8-12% lower than the first half 2006. The first quarter 2007 plan is consistent with the high end of this range. About Ford Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE: F) -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company and The Hertz Corporation. FORD SMITH: Brings In D. L. Platt to Liquidate Assets ----------------------------------------------------- D. L. Platt of SPW Poppleton & Appleby was appointed Liquidator of Ford Smith & Co. Limited on Nov. 23 for the creditors' voluntary winding-up procedure. The company can be reached at: Ford Smith & Co. Limited Felixstowe Road Greenwich London SE2 9SG United Kingdom Tel: 020 8310 8127 Fax: 020 8310 9563 GENERAL MOTORS: Kerkorian Sells Remaining 5% Stake to BofA ---------------------------------------------------------- Bank of America has bought billionaire investor Kirk Kerkorian's remaining 5% stake in General Motors Corp., according to published reports. Mr. Kerkorian sold the rest of his shares in GM this week for US$28.75 to US$29.25 per share. According to reports, the 5% stake was worth more than US$800 million. As reported in the Troubled Company Reporter-Europe on Dec. 4, Mr. Kerkorian's Tracinda Corp. sold 14 million shares of GM's stock in a private transaction for US$28.75 per share. This transaction came on the heels of the sale of another 14 million of Tracinda-held GM stock for US$33 per share. Tom Krisher at the Associated Press writes that this week's sale was the last block of the nearly 10% percent stake Mr. Kerkorian once held in GM. Mr. Kerkorian abandoned his shares in GM after failing to implement strategic changes at the automaker. Mr. Kerkorian and his adviser, Jerome York, had pressured the company to take drastic action in response to its US$10.6-billion loss last year, the Charlotte Business Journal notes. Mr. Kerkorian and Mr. York, who was a member of GM's board, lobbied for a global alliance between GM and Renault-Nissan. Mr. Kerkorian believed that the proposed alliance would allow GM to realize substantial synergies and cost savings. Alliance talks between the automakers collapsed in October after GM's board concluded that the alliance framework required by Renault- Nissan would substantially disadvantage GM's shareholders. Bank of America is a key lender to Mr. Kerkorian, Charlotte Business states. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries, including Brazil and Mexico, and its vehicles are sold in 200 countries. * * * As reported in the TCR-Europe on Nov. 16, Standard & Poor's Ratings Services assigned its 'B+' bank loan rating to General Motors Corp.'s proposed US$1.5 billion senior term loan facility, expiring 2013, with a recovery rating of '1'. The 'B+' rating was placed on Creditwatch with negative implications, consistent with the other issue ratings of GM, excluding recovery ratings. At the same time, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion secured term loan of General Motors Corp. The term loan will be secured by a first priority perfected security interest in all of the U.S. machinery and equipment, and special tools of GM and Saturn Corporation. HCA INC: Earns US$240 Million in Quarter Ended Sept. 30 ------------------------------------------------------- HCA Inc. disclosed of its results for the quarter ended Sept. 30, 2006. Net income for the third quarter of 2006 totaled US$240 million, compared with US$280 million in the third quarter of 2005. Results for the third quarter of 2006 include gains on sales of facilities of US$41 million and transaction costs related to the proposed merger of US$9 million. Third quarter 2005 results include costs, net of estimated recoveries, of US$33 million related to hurricane damage and business interruption and a tax benefit of US$22 million from the repatriation of foreign earnings. Third Quarter Results Third quarter 2006 results include additional compensation costs of US$11 million due to the expensing of stock options and employee stock purchase plan shares associated with the Jan. 1, 2006, adoption of FASB Statement 123, "Share-Based Payment." Revenues in the third quarter of 2006 totaled US$6.2 billion compared to US$6.0 billion in the third quarter of 2005. Same facility revenues increased 5.4% compared to the third quarter of 2005. Same facility revenue per equivalent admission increased 6.4% in the third quarter of 2006 (6.8% increase when adjusted for uninsured discounts) compared to the third quarter of 2005. Same facility admissions increased 0.1% in the third quarter of 2006 compared to the prior year's third quarter. Same facility equivalent admissions, which take into consideration outpatient volumes, decreased 0.9% compared to the third quarter of 2005. Same facility outpatient surgical cases declined 2.8% in the third quarter of 2006, due to declines of 4.3% in hospital based outpatient surgeries and 0.1% in freestanding ambulatory surgical cases compared to the third quarter of 2005. The provision for doubtful accounts in the third quarter of 2006 totaled US$677 million, or 10.9% of revenues, compared to US$618 million, or 10.3% of revenues, in the prior year. Adjusted to reflect uninsured discounts, the provision for doubtful accounts totaled US$954 million, or 14.7% of revenues, in the third quarter of 2006, compared to US$859 million, or 13.7% of revenues, in the third quarter of 2005. Uninsured discounts in the third quarters of 2006 and 2005 were US$277 million and US$241 million, respectively. HCA's uninsured discount policy, which became effective in the first quarter of 2005, lowers revenues and the provision for doubtful accounts by generally corresponding amounts. Charity care totaled US$329 million in the third quarter of 2006, compared to US$298 million in the previous year's third quarter. Same facility uninsured admissions, which include charity patients, increased by 2,257 admissions or 10.1%, in the third quarter of 2006 compared to the same period of 2005. Assets Sold Effective July 1, 2006, the company sold four hospitals (three in West Virginia and one in Virginia) to LifePoint Hospitals, Inc. for US$256 million. A gain of US$32 million pretax on the sale of the hospital located in Virginia was recognized in the third quarter of 2006. Certificates of Need are required for the sale of the three West Virginia hospitals included in the transaction. Because filings seeking the revocation of the CONs were pending at the time of the closing, HCA and LifePoint have agreed that under certain circumstances, LifePoint may require us to repurchase the three West Virginia Hospitals. Generally, those circumstances require a final and nonappealable order revoking the CONs or an order requiring LifePoint to divest the hospitals or cease operations. In the event of such a repurchase, the repurchase price would be based upon the original purchase price and adjusted for working capital changes, capital expenditures and other items. Due to the CON proceedings and the repurchase provision, the company has deferred the recognition of the gain of approximately US$61 million pretax related to the three West Virginia hospitals until the CON appeals are resolved. Effective Oct. 1, 2006, the company sold two hospitals in Florida for US$266 million. A pretax gain of approximately US$91 million will be recognized in the fourth quarter of 2006 related to this sale. Cash Flow and Balance Sheet HCA's cash flows from operations totaled US$653 million in the third quarter of 2006 compared to US$938 million in the third quarter of 2005. Cash flows from operations during the third quarter of 2006 were negatively affected by the combined impact of lower net income and an increase of US$153 million in net accounts receivable during the third quarter of 2006 (primarily due to a delay by CMS in the processing of Medicare claims in September as mandated by provisions of the Deficit Reduction Act) compared to a decrease of US$78 million in net accounts receivable during the third quarter of 2005. As of Sept. 30, 2006, HCA's balance sheet reflected total debt of US$11.3 billion, stockholders' equity (including common and minority equity) of US$6.0 billion and total assets of US$23.1 billion. HCA's ratio of debt-to-debt plus common and minority equity was 65.2% at Sept. 30, 2006, compared to 64.8% at Dec. 31, 2005. HCA had 409.7 million common shares outstanding at Sept. 30, 2006, compared to 417.5 million shares at Dec. 31, 2005. Headquartered in Nashville, Tennessee, HCA (Hospital Corporation of America) Inc. (NYSE: HCA) -- http://www.hcahealthcare.com/-- is a healthcare services provider, composed of locally managed facilities that include approximately 182 hospitals and 94 outpatient surgery centers in 22 states, England and Switzerland. At its founding in 1968, HCA was one of the nation's first hospital companies. * * * As reported in the Troubled Company Reporter on Nov. 22, 2006, Fitch downgraded and removed from Rating Watch Negative HCA, Inc.'s existing ratings as a result of the completion of its leveraged buyout. Fitch's rating action includes a downgrade of the company's Issuer Default Rating to 'B' from 'BB+' and a downgrade of its senior unsecured notes to 'CCC+/RR6' from 'BB+'. Fitch has also withdrawn the 'BB+' rating on the Unsecured Bank Facility. As reported in the Troubled Company Reporter on Nov. 22, 2006, Moody's Investors Service downgraded the ratings of the senior unsecured notes assumed in the capital structure of HCA Inc. to Caa1 from Ba2 after the closing of the leveraged buyout of the company. J EDWARDS: Brings In Joint Administrators from Tenon Recovery ------------------------------------------------------------- Nigel Ian Fox and Carl Stuart Jackson of Tenon Recovery were appointed joint administrators of J Edwards & Son (Waterlooville) Ltd. (Company Number 562910) on Nov. 24. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. J Edwards & Son (Waterlooville) Ltd. can be reached at: 13B St. Georges Walk Waterlooville Hampshire PO7 7TU United Kingdom Tel: 023 9225 6031 Fax: 023 9226 8021 KASHMALA AND ZARA: Names Harjinder Johal Liquidator --------------------------------------------------- Harjinder Johal of Ashcrofts was appointed Liquidator of Kashmala and Zara Limited on Nov. 27 for the creditors' voluntary winding-up procedure. The company can be reached at: Kashmala and Zara Limited 46 Canterbury Street Gillingham Kent ME7 5TX United Kingdom Tel: 01634 577 171 KEYSTONE MEDIA: Brings In Mazars LLP to Administer Assets --------------------------------------------------------- Timothy Colin Hamilton Ball and Alistair Steven Wood of Mazars LLP were appointed joint administrators of Keystone Media (South West) Ltd. (Company Number 05078132) on Nov. 17. Mazars -- http://www.mazars.com/-- is an international, integrated and independent organization, specialized in audit, accounting, tax and advisory services. Headquartered in Bridgwater, England, Keystone Media (South West) Ltd. wholesales office stationery. MARSHALL STREET: Hires J. N. Bleazard as Liquidator --------------------------------------------------- J. N. Bleazard of XL Business Solutions Ltd. was appointed Liquidator of Marshall Street Motors Limited on Nov. 24 for the creditors' voluntary winding-up proceeding. The company can be reached at: Marshall Street Motors Limited 50-52 Marshall Street Crossgates Leeds West Yorkshire LS158DY United Kingdom Tel: 0113 264 4589 Fax: 0113 264 6195 MASTERPLAN PUBLISHING: Creditors' Claims Due Jan. 30, 2007 ---------------------------------------------------------- Creditors of Masterplan Publishing Limited have until Jan. 30, 2007, 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 Richard Howard Toone at: Chantrey Vellacott DFK LLP Russell Square House 10-12 Russell Square London WC1B 5LF United Kingdom The company can be reached at: Masterplan Publishing Limited Thames House 63 67 Kingston Road New Malden Surrey KT3 3PB United Kingdom Tel: 020 8942 9442 Fax: 020 8949 4396 NORLAND HALIFAX: Joint Liquidators Take Over Operations ------------------------------------------------------- David L. Cockshott and Paul A. Whitwam of BWC Business Solutions were appointed Joint Liquidators of Norland Halifax Limited (formerly Echo's Answer Limited) on Nov. 24 for the creditors' voluntary winding-up proceeding. The company can be reached at: Norland Halifax Limited 95 High Street Yeadon Leeds West Yorkshire LS197TA United Kingdom Tel: 0870 757 5128 Fax: 0870 757 5129 NTL INC: Declares Lack of Interest in Making ITV Offer ------------------------------------------------------ NTL Inc. disclosed that it has no present intention of making an offer for ITV Plc, as it believes a transaction between ITV and NTL is unlikely to be attained on terms acceptable to NTL. NTL is continuing to focus on integrating NTL, Telewest and Virgin Mobile, driving cost synergies, improving operational effectiveness and leveraging its content assets. In the first quarter of 2007, NTL will rebrand to "Virgin Media" and will exploit its unique ability to offer an unrivalled quad-play of digital TV, broadband, mobile and home phone services. The rebranding is underpinned by a substantial improvement in customer service and operational efficiency, both hallmarks of the Virgin brand. NTL notes that Sky purchased a 17.9% interest in ITV, paying a substantial control premium. NTL has submitted its views on this purchase to the Office of Fair Trading and OFCOM, because it presents serious competition and public interest issues. The fact that Sky would spend nearly US$2 billion to acquire its stake immediately following the mere announcement of NTL's proposed combination, before the ITV board had an opportunity to respond, highlights the magnitude of the competition issues involved. For the purposes of Rule 2.8 of the City Code on Takeovers and Mergers, NTL reserves the right to make or participate in an offer within the next six months in the event that: -- an agreement or recommendation from the board of ITV is forthcoming; -- a third party announces a firm or possible offer for ITV; -- ITV announces a "whitewash" proposal for the purposes of Rule 9 of the City Code or a reverse takeover; -- ITV announces its intention to pursue a Class 1 transaction under the Listing Rules of the FSA; or -- Sky sells all or a material part of its stake in ITV. 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 the 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. P & H CONTRACT: Appoints Vantis as Joint Administrators ------------------------------------------------------- Lynn Robert Bailey and Alan Roy Limb of Vantis were appointed joint administrators of P & H Contract Packers Ltd. (Company Number 04363677) on Nov. 22. Headquartered in Oadby, England, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. P & H Contract Packers Ltd. can be reached at: Unit 51 100 Ross Walk Leicester Leicestershire LE4 5HH United Kingdom Tel: 0116 261 1081 Fax: 0116 261 1137 RADIX MICRO: Calls In Liquidators from BRI Business Recovery ------------------------------------------------------------ Peter John Windatt and Gary Steven Pettit of BRI Business Recovery and Insolvency were appointed Joint Liquidators of Radix Micro Devices PLC (formerly Immediate Business Systems Plc) on Nov. 23 for the creditors' voluntary winding-up proceeding. Headquartered in Milton Keynes, England, Radix -- http://www.radix-intl.com/-- manufactures and designs handheld computers, peripherals and portable printers with benefit applications such as meter reading, transport and logistics, route accounting/doorstep deliveries, traffic and parking enforcement and inspection, and maintenance and research. With operations in the U.S., the company serves its customers through a direct sales force and a network of specialized business partners in over 70 countries. REFCO INC: To Present 16 Witnesses at Plan Confirmation Hearing --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved procedures governing discovery with respect to the confirmation of the Chapter 11 Plan filed by Refco, Inc., and its debtor-affiliates; Marc S. Kirschner, the Chapter 11 Trustee for Refco Capital Markets, Ltd.; and the Joint Sub-Committee of the Official and Additional Committees of Unsecured Creditors, the Troubled Company Reporter reported on Nov. 17, 2006. The Court also authorizes the Plan Proponents to file a list of: (a) names of witnesses that the Plan Proponents anticipate presenting at the Dec. 15, 2006, Plan confirmation hearing; and (b) specific area for which the testimony of any witness will be offered including any opinions that the witnesses will offer, provided that, in the event that the Plan Proponents determine the need to supplement their Witness List based on a need that was not anticipated at the time the list was filed, the Debtors will file a supplement to that list on or before December 4, 2006, providing additional witnesses and the general areas of testimony to be offered. Plan Proponents Present Witness List In accordance with the Discovery Order, the Plan Proponents presented 16 potential witnesses who may testify by direct testimony, declaration, deposition, or prior testimony before the Court at the Plan Confirmation Hearing. The Witnesses are: * David Pauker, Refco's Chief Restructuring Officer, * the RCM Trustee, * Brad Geer of Houlihan Lokey Howard & Zukin Capital, Inc., * Jane Sullivan of Financial Balloting Group, * Todd Brents of Alix Partners, LLC, * Louis Dudley of Alix Partners, LLC, * Brian Osborne of Omni Management, * M. Freddie Reiss of FTI Consulting, Inc., * Richard Deitz of VR Global Partners, L.P., * Rodrigo Alvarez of RCM, * Juan Carlos Moreno of Inter Financial Services, Ltd., * Gerald Scherer of Refco, Inc., * Vera Kraker of RCM, * Thomas Yorke of RCM, * Stephen Dispenza of RCM, and * Jeffery Leadholm of Leuthold Funds, Inc., and Leuthold Industrial Metals Fund, L.P. Topics of anticipated testimonies, as well as opinions, include: -- facts relating to the Section 1129 requirements, including assumptions underlying the liquidation analysis; -- facts relating to the assets and liabilities of the Debtor entities; -- fairness of settlements; -- claims asserted against RCM and by RCM creditors against any of the Debtors; -- opinion testimony regarding the creation and reliability of computerized recovery model, as used for projecting recoveries under the Plan, and in the absence of confirmation, including in the event of liquidation; -- opinion testimony regarding the reliability of recovery model for determining the allocation of joint and several liabilities among the Contributing Debtors; and -- voting and tabulation of votes accepting or rejecting the Plan. The Plan Proponents reserve the right to modify, supplement or amend the Witness List. Sally McDonald Henry, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, advises the Court that the Witness List is not a representation or commitment that a person will be called to testify. The Witness List also does not include all of the witnesses that the Plan Proponents may call as rebuttal witnesses at the Confirmation Hearing. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. On Oct. 6, 2006, the Debtors filed their Amended Plan and Disclosure Statement. On Oct. 16, 2006, the gave its tentative approval on the Disclosure Statement and on Oct. 20, 2006, the Court Clerk entered the written disclosure statement order. The hearing to consider confirmation of Refco, Inc., and its debtor-affiliates' plan is set for Dec. 15, 2006. Objections to the plan, if any, must be in by Dec. 1, 2006. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). RCMI's exclusive period to file a chapter 11 plan expires on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). REFCO INC: Ch. 11 Trustee Wants US$101MM JPMorgan Claim Settled --------------------------------------------------------------- Marc S. Kirschner, the Chapter 11 trustee for the estate of Refco Capital Markets Ltd., asks the Court to approve a Settlement Agreement and Mutual Release dated Nov. 20, 2006, with JPMorgan Chase Bank N.A. JPMC serves as custodian, and cleared and settled trades for RCM. JPMC also provides monthly valuations of securities held in custody for RCM's account. In December 2005, JPMC, through its counsel, served a letter setting forth the basis for its claims against the RCM estate together with supporting documentation. JPMC asserted claims aggregating US$101,547,404, comprised of: (i) a balance outstanding for amounts loaned in the principal amount of US$79,500,000, plus fees and interest. The loan is secured by a perfected security interest in RCM securities in and cash in the possession of JPMC in an aggregate approximate amount of US$780,000,000; and (ii) a net overdraft totaling US$22,047,404 in RCM's foreign currency accounts at JPMC. Mr. Kirschner relates that there is a US$21,947,767 credit due RCM from JPMC as a result of the liquidation of certain repurchase agreements and cash collateral previously posted with JPMC in connection with forward and swap contracts with RCM. JPMC timely filed a formal proof of claim -- Claim No. 4796 -- setting forth the same bases for the JPMC Claims and attaching supporting documentation. According to Mr. Kirschner, the conflicts counsel to the Official Committee of Unsecured Creditors -- and later, the counsel for the Additional Committee -- began analyzing the validity and amount of the JPMC Claims and the attachment, perfection and priority of the Security Interest, and to determine whether there exist any viable defenses thereto, in December 2005. The probe continued after the RCM Trustee was appointed in April 2006. After arm's-length negotiations with business persons at JPMC, the RCM Trustee, on RCM's behalf, agrees to pay JPMC the principal amount of the Loan together with 70% of non-default interest, calculated at the daily opening Federal Funds Rate plus 50 basis points, without compounding. The amount, Mr. Kirschner explains, represents a 200 basis point discount from the contractual default rate alleged by JPMC to apply, and an additional 30% discount to the non-default contract rate of interest. The total potential savings to the estate from this concession, Mr. Kirschner says, by JPMC is approximately US$5,500,000 as of December 12, 2006. The Settlement Agreement also provides for the US$22,041,280 Debit Balance to be set off against US$21,968,247 of credits RCM alleges are due to it from JPMC. The Bank will waive its rights to assert a claim for the US$99,636 difference between the two amounts. RCM will also pay JPMC's reasonable attorneys fees as required by the underlying agreements, which are currently in the estimated amount of US$1,175,000 as of October 31, 2006, together with US$26,135 of fees that are due and owing with respect to the monthly transaction charges and fees for the movement of securities and value of the Portfolio in RCM's securities account at JPMC. The final amount of the attorneys' fees is to be determined on the day before the effectiveness of the Settlement Agreement. In addition, the Settlement Agreement provides for an exchange of mutual releases between the parties and the expungement of JPMC's proof of claim against RCM. The Settlement Agreement further contains terms providing for RCM to utilize JPMC for future securities custody accounts and dealer services, and to provide valuations of the securities and other financial assets held by the RCM estate as contemplated by the settlement agreement between the RCM Trustee and certain customers and creditors of RCM, for appropriate fees, as well as other customary terms. Mr. Kirschner notes that pursuant to the Court-approved RCM Settlement Agreement, the RCM Trustee is required to engage one or more independent persons of recognized standing to act as a valuation expert with respect to RCM customer property. As custodian, JPMC has become familiar with many of the securities in the RCM portfolio. In addition, the Portfolio Management Advisory Committee has advised the RCM Trustee that JPMC is experienced and highly regarded in trading emerging market debt, which comprises a large percentage of the RCM portfolio. JPMC has a Client Valuation Group, which provides independent valuation services to its clients. Mr. Kirschner believes that valuations prepared by the Client Valuation Group, in consultation with the emerging markets trading desk, will result in a fair and independent valuation of customer property pursuant to the RCM Settlement Agreement. The RCM Trustee also asks the Court to approve the retention of JPMC to provide the valuations under the RCM Settlement Agreement. "I believe that any objection to the JPMC Claims and Security Interest has very little likelihood of success, and submit that the Settlement Agreement therefore is fair and equitable and falls well within the range of reasonableness," Mr. Kirschner tells Judge Drain. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. On Oct. 6, 2006, the Debtors filed their Amended Plan and Disclosure Statement. On Oct. 16, 2006, the gave its tentative approval on the Disclosure Statement and on Oct. 20, 2006, the Court Clerk entered the written disclosure statement order. The hearing to consider confirmation of Refco, Inc., and its debtor-affiliates' plan is set for Dec. 15, 2006. Objections to the plan, if any, must be in by Dec. 1, 2006. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). RCMI's exclusive period to file a chapter 11 plan expires on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). S.P.C. MOULDS: Claims Filing Period Ends Feb. 23, 2007 ------------------------------------------------------ Creditors of S.P.C. Moulds Limited (formerly Speed 7510 Limited) have until Feb. 23, 2007, to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator Anthony Hyams at: Marriotts LLP Allan House 10 John Princes Street London W1G 0AH United Kingdom The company can be reached at: S.P.C. Moulds Limited Unit 9 Kencot Way Erith Kent DA184AB United Kingdom Tel: 020 8312 9555 Fax: 020 8312 9555 SEA CONTAINERS: Wants Richards Butler as Special Foreign Counsel ---------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the District of Delaware to employ Richards Butler LLP as special counsel for certain foreign legal matters, nunc pro tunc to Oct. 15, 2006. Richards Butler has served as the Debtors' outside counsel on legal matters in the United Kingdom and France as well as matters involving their interests in their non-debtor subsidiary Great North Eastern Railway, Ltd., since 1987, relates Edwin S. Hetherington, vice president, general counsel, and secretary of Sea Containers Ltd. Mr. Hetherington discloses that the firm's professionals have become very familiar with the Debtors and their business affairs, and have gained extensive experience in most aspects of the Debtors' general legal work and needs outside the United States. As the Debtors' Special Foreign Counsel, Richards Butler will continue to advise and represent the Debtors with respect to the foreign legal matters as well as other non-bankruptcy related matters, which may arise in the Debtors' Chapter 11 cases in the ordinary course of business. Richards Butler's services will be paid in accordance with its customary hourly rates: Professional Hourly Rate ------------ ----------- Partners US$522 - US$997 Associates US$360 - US$740 Paraprofessionals US$295 - US$360 The firm will also be reimbursed for necessary out-of-pocket expenses. Mr. Hetherington tells the Court that Richards Butler has received a replenishing prepetition retainer, with a remaining balance of US$150,461, for providing the Debtors with representation on certain of the foreign legal matters prior to the Petition Date. In addition, Richards Butler also received $4,412,000 from the Debtors within one year prior to the Petition Date for services rendered to certain Foreign Legal Matters. Jonathan Yorke, Esq., a member of Richards Butler LLP, assures the Court that his firm does not hold or represent any interests adverse to the Debtors, or to their estates in matters upon which his firm is to be engaged. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 6; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SGM GROUP: Deloitte Selling Grass-Cutting Equipment Maker --------------------------------------------------------- J. C. Reid and I. Brown, in their capacity as Joint Administrators of the SGM Group -- SGM Group Ltd., Scottish Grass Machinery Ltd., SGM Finance Ltd. and Select Contract Maintenance Ltd., are offering to sell the companies' businesses and assets. Features: -- market leader in the provision of commercial grass cutting equipment and servicing on short and long-term contracts to blue chip customers U.K.-wide, supplying both the public and private sectors; -- over 6,500 assets with a book value in excess of GBP20 million; -- grass-cutting equipment and other equipment sales from its dealership in Scotland; -- over 3.5 acre freehold office and warehouse premises at Belleknowes Industrial Estate, a prominent location within Fife, near Edinburgh; -- freehold office and industrial unit in Centurion Business Park, Rotherham, South Yorkshire, a predominantly industrial locality. -- servicing depots in 18 locations across the U.K.; -- experienced and committed workforce; and -- consolidated turnover of GBP13.1 million for the 10 months to Sept. 30, 2006, producing an EBITDA of GBP3.5 million. Inquiries can be addressed to: Tracey Culbertson Deloitte & Touche LLP Saltire Court 20 Castle Terrace Edinburgh EH1 2DB Tel: 0131 221 0002 0131 535 7428 Fax: 0131 535 7888 Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. SOLUTIA INC: Court Approves January 15 Plan-Filing Deadline ----------------------------------------------------------- The Honorable Prudence Carter Beatty of the U.S. Bankruptcy Court for the Southern District of New York granted Solutia Inc. and its debtor-affiliates a 60-day extension of the Exclusive Periods, Bloomberg News reports. Accordingly, Solutia has the exclusive right to file a plan until Jan. 15, 2007, and the exclusive right to solicit acceptances of that plan until Feb. 9, 2007. Bruce Bennett, Esq., at Hennigan, Bennett & Dorman LLP, counsel to the Noteholders Committee, told Bloomberg's Thom Weidlich that the Court's ruling reflects that it is not satisfied with the progress of the case and that there hasn't been any serious effort by other parties to adequately deal with the rights of the bondholders. Equity Panel to Continue Plan Talks Karen B. Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP, in New York, had informed the Court that the Official Committee of Equity Security Holders continued to explore alternate plan structures regarding the Debtors' Plan of Reorganization and Disclosure Statement. She said the Equity Committee and the Old and New Monsanto were pursuing mediation that could alter the Plan, if successful. The Equity Committee reserved its rights with respect to the Debtors' request to extend their exclusive periods to file and solicit acceptances of the Plan. Ms. Dine stated that despite the mediation efforts, the Equity Committee remained concerned that the Debtors intended to pressure creditors to give in to their reorganization demands despite their assertion that they were willing to work with other constituencies to create a new plan. While the Equity Committee had determined to not formally object to the requested extension at this time, it continued to be concerned about the confirmability of the Debtors' Plan, Ms. Dine says. While the Committee hoped that mediation would help lead to a consensual Plan, it wanted confirmation that any further extension of the Debtors' Exclusive Periods would not unduly prejudice the panel's rights to either seek to terminate the exclusivity or object to any further extensions. Noteholders Committee Objects Representing the Ad Hoc Committee of Solutia Noteholders, Bennett J. Murphy, Esq., at Hennigan, Bennett & Dorman LLP, in Los Angeles, California, stated that in three years, the Debtors had not presented a viable Plan. He added that they had misused the privilege of the Exclusive Periods to make wrong choices, resulting to a retarded, rather than advanced, conclusion and the "dead-letter global settlement." Mr. Murphy related that the Debtors' failed management and strategy had taken millions of the estate's money. He noted that recent public filings revealed US$52,000,000 in professional fees paid in the year ending Sept. 30, 2006, -- a burn rate of more than US$4,300,000 each month, equating to nearly 20% of the Debtors' projected 2006 EBITDAR. Mr. Murphy said the Noteholders Committee, whose professionals had not been paid by the estate, was the only party pushing for serious and conclusive plan negotiations. He also contended that Monsanto Company and Pharmacia, Inc., had refused to engage the Noteholders Committee in a negotiation to a substantive give-and-take. The Noteholders Committee had wanted the Extension Motion denied because the Debtors: 1) repeatedly failed to submit a memorandum of law despite the Court's admonishment, indicating their doubtful sincerity to the request; 2) failed to provide any evidence to warrant another extension since cause does not exist; 3) squandered the given extensions and, at estate's expense, assembled a legion of lawyers and advisors to hold a trial over their claim for millions in bonuses; 4) merely repeated their previous reasons for an extension, without offering any progress towards a Plan; 5) filled their Motion with excuses as to why they remain in bankruptcy and offer no viable plan on how to emerge; 6) did not use their leadership to create a process where all key parties engage in a bone fide give and take; 7) were improperly using their Exclusive Periods to favor a single bloc -- Monsanto and Pharmacia -- and pressure the Noteholders into submitting to their demands; 8) used the JPMorgan and Equity Committee adversary proceedings as contingencies to justify the extension, which is entirely self-inflicted; and 9) emphasized the size and complexity of their cases for their past Motions and the argument is now stale and insufficient. Debtors Respond Based on conversations with the Creditors Committee and Trade Committee, the Debtors had agreed to reduce the requested extensions to Feb. 16, 2007, to file a plan and April 19, 2007, to solicit plan votes. Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York, told Judge Beatty that all of the Debtors' constituencies except the Noteholders Committee, had engaged and were willing to cooperate in good faith negotiations to reach a consensual agreement regarding modifications to the Plan. Mr. Henes noted that each of the parties understood that a negotiation required compromise and they must make concessions from their original positions. However, he continued, the Noteholders refused to acknowledge that risks existed to their litigation position and instead, attempted to dictate the path for the cases to the detriment of the other parties-in-interest. Mr. Henes pointed out to the Court that sufficient cause exists to extend the Debtors' Exclusive Periods: (a) the JPMorgan and Equity Committee adversary proceedings needed to be resolved; (b) after discussions with constituencies, the Debtors and their stakeholders had agreed to the Standstill Period to enable negotiations; (c) it was for the stakeholders' best interests for the Debtors to be the sole fiduciary of the estates, to continue to bring their various constituencies together to reach consensus and enable Solutia to emerge from bankruptcy; (d) the Debtors spent the last several months working to negotiate and develop an amendment to the Plan. The Noteholders announced their so-called "detailed roadmap for a consensual plan" but that was not even attached to their objection nor shared to other parties, Mr. Henes says. He added that the Noteholders had assumed to be the only one desirous of a consensual deal, when they had not even recognized their risks and were not willing to make concessions to achieve a deal. Mr. Henes disclosed that the Debtors and other constituents had devised a proposal wherein cash would be reserved to pay the secured claim in full in the event that a final, non-appealable Court order ruling that Noteholders were secured. He said the amendment as embodied in the Proposal preserved the three key goals of the Plan: (a) Monsanto would take financial responsibility for significant legacy liabilities; (b) Solutia would receive necessary new money to fund the Retiree Settlement and legacy liabilities through the sale reorganized Debtors' stocks; and (c) cash -- as opposed to equity -- would be distributed to Monsanto and Solutia's unsecured creditor. Mr. Henes related that the Debtors tried to win the Equity Committee's support for the Proposal by bringing it to negotiations for the resolution of the Equity panel's adversary proceeding. Terminating the Exclusive Periods was highly detrimental to the Chapter 11 cases and the Debtors' businesses, Mr. Henes asserted. The current progress in the negotiations, the customer and vendor relationships, and the Debtors' ability to generate new business would be greatly affected, he continued. Jeffry N. Quinn, chairman, president and CEO of Solutia, told the Court that contrary to the Noteholders Committee's claims, the Debtors had enhanced their businesses as evidenced by: (a) improved financial performance; (b) continuing grooming of the asset portfolio; (c) development of new robust business strategies; and (d) selective strategic investments made. Mr. Quinn relates that since the beginning of 2004, sales increased 23% despite shutting down or exiting several businesses, operating income increased over 1000%, EBIT increased 460% and EBITDAR more than doubled. However, Mr. Quinn said these improvements were not enough to get them out of bankruptcy; they had to balance among obtaining new capital, addressing obligations and reallocating legacy liabilities inherited from Old Monsanto. Through discussions and negotiations with Monsanto, Pharmacia, and the Creditors and Retirees Committees, the Global Settlement materialized that became the basis for the Plan. Aside from negotiations, Mr. Quinn said their professionals were also resolving the adversary cases of the Equity Committee and JPMorgan. He added that they also spent the last months on meetings and discussions on the original Plan's modification, as embodied in the Proposal, to find a compromise that would be acceptable to all constituents, including the Noteholders. Other Parties Support Extension Monsanto and the various committees representing the Retirees, Creditors and Trade Claimants agreed that the Debtors' Exclusive Periods should be extended. Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. The Company filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. (Solutia Bankruptcy News, Issue No. 73; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SOUTHWARK LAND: Creditors Confirm Liquidator's Appointment ---------------------------------------------------------- Creditors of Southwark Land Regeneration PLC confirmed Nov. 23 the appointment of Iain John Allan of Smith & Williamson Limited as the company's Liquidator. The company can be reached at: Southwark Land Regeneration PLC 22 Old Bond St. City Of Westminster London W1S 4PY United Kingdom Tel: 020 7493 5596 SURE GB: Appoints Administrator from K J Watkin ----------------------------------------------- C. H. I. Moore of K. J. Watkin & Co. was appointed administrator of Sure GB Ltd. (Company Number 3818169) on Nov. 21. The administrator can be reached at: C. H. I. Moore K. J. WATKIN & CO. Emerald House 20-22 Anchor Road Aldridge Walsall West Midlands WS9 8PH United Kingdom Tel: 01922 452881 Fax: 01922 450525 E-mail: chim@kjwatkin.co.uk Sure GB Ltd. can be reached at: 117 High Street Kinver Stourbridge West Midlands DY7 6HL United Kingdom Tel: 01384 878 777 Fax: 01384 872 104 T & C ELECTRICAL: Claims Registration Ends May 24, 2007 ------------------------------------------------------- Creditors of T & C Electrical Services Limited have until May 24, 2007, to send in their full particulars of their debts or claims and the names and addresses of their Solicitors (if any), to appointed Liquidator Michael F. McCarthy at: Walletts Insolvency Services 2-6 Adventure Place Hanley Stoke-on-Trent ST1 3AF United Kingdom The company can be reached at: T & C Electrical Services Limited Unit 1 Winghay Close Stoke-On-Trent Staffordshire ST6 4DU United Kingdom Tel: 01782 822 600 Fax: 01782 822 601 TONIC DESIGN: Taps Menzies to Administer Assets ----------------------------------------------- Paul David Williams and Paul John Clark of Menzies Corporate Restructuring were appointed joint administrators of Tonic Design Ltd. (Company Number 03564616) on Nov. 23. 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. Tonic Design Ltd. can be reached at: 2 Church Studios Camden Park Road Camden London NW1 9AY United Kingdom Tel: 020 7691 2227 Fax: 020 7691 2228 UNIVERSAL GRINDING: Appoints Administrators from Vantis ------------------------------------------------------- G. Mummery and Alpa Raja of Vantis Business Recovery Services were appointed joint administrators of Universal Grinding Services Ltd. (Company Number 02084297) on Nov. 23. Headquartered in Hornchurch, England, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. Universal Grinding Services Ltd. can be reached at: Unit 1 2 Kings Road Works Kings Road New Haw Addlestone Surrey KT15 3BG United Kingdom Tel: 01932 346 806 VISION METALCRAFT: Appoints Liquidator from Findlay James --------------------------------------------------------- Alisdair J. Findlay of Findlay James was appointed Liquidator of Vision Metalcraft Limited on Nov. 22 for the creditors' voluntary winding-up proceeding. Headquartered in Walsall, England, Vision Metalcraft Limited -- http://www.visionmetalcraft.co.uk/-- supplies wrought iron goods and castings including gates, steel staircases, beams, among others. The company manufactures replicas and repair original ironwork. WHITEOAK PRESS: Names T. Papanicola as Administrator ---------------------------------------------------- T. Papanicola of Bond Partners LLP was named administrator of Whiteoak Press Ltd. (Company Number 01714120) on Nov. 20. The administrator can be reached at: T. Papanicola Bond Partners LLP The Grange 100 High Street London N14 6TG United Kingdom Tel: 020 8444 2000 Fax: 020 8444 3400 Whiteoak Press Ltd. can be reached at: Channel House Channel View Road Dover Kent CT17 9TJ United Kingdom Tel: 01304 863 011 Fax: 01304 863 467 * Fitch Eyes Further Slump in Credit Profiles for Auto Suppliers ---------------------------------------------------------------- Fitch Ratings expected a further deterioration of credit profiles for leveraged European auto suppliers. The rating outlook for more than 40% of Fitch's privately rated leveraged buyouts in this sector remains negative even though a large number of transactions have already been downgraded during 2006. While new LBO's increasingly target aftermarket of wholesale companies with more stable business profiles, such as A.T.U. (Auto-Teile-Unger), the downgrades and negative outlooks assigned refer predominantly to auto parts manufacturers. The operating performance of a number of leveraged automotive suppliers has deteriorated further during 2006. EBITDA levels continued to decline, due to higher input prices as well as continuing pricing pressure from OEMs. Manufacturers of mature products with limited added-value to their customers and in particular those that still produce predominantly in Western Europe have suffered the greatest pressure on EBITDA levels and exhibit weakening credit profiles. Moreover, the niche suppliers targeted by LBOs in the past are exposed to significantly higher cash flow volatility due to their reliance on particular OEMs and end products. Because the capex-intensive auto supply sector cannot generally support demanding amortization profiles, capital structures have had to become more back-ended. On average, the amortizing A tranche in automotive LBOs amounted to only one third of total debt, implying minimal foreseeable debt paydown. The original deals were predicated on deleveraging through increasing sales and EBITDA levels, and these companies will therefore require not only stabilization but also a substantial improvement of current market conditions and/or operating results in order to meet deleveraging targets. As a result of both weak operating performance and minimal debt paydown, the average total leverage of existing auto supplier LBOs monitored by Fitch has increased to 4.8x in 2006, up from 3.6x in 2004 and 4.2x in 2005. At the same time senior leverage increased to 3.8x in 2006, up from 2.6x in 2004. For the 60% of leverage auto suppliers rated by Fitch at B- or below, there is only very limited headroom before these companies require long- term financial restructuring. Fitch expects this trend of compressed financial flexibility to continue as a result of high raw material costs, high customer- and product-concentration and increasing price competition in the market. While the rating outlook on credit profiles of leveraged automotive suppliers who effectively managed these challenges - through the restructuring of their cost base or increasing their value-added for customers - is stable rather than positive, a significant proportion of auto supply LBOs monitored by Fitch are expected to experience further downward pressure on ratings, as reflected in the negative outlooks assigned. Fitch anticipates extremely limited recoveries for junior lenders in a distress scenario. In the application of its Recovery Ratings methodology reflecting the different levels of niche differentiation and/ or added-value provided, the agency has used a range of distressed EV multiples of between 4.0x and 4.5x, with a median multiple of 4.5x for the privately rated sample. Given current leverage levels and in view of recent debt restructurings it is likely that restructured deals will entail limited cash recoveries for junior lenders in particular, leaving such creditors largely reliant on equity conversion to recoup their investment. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- December 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast The Newark Club, Newark, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ December 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Cash Management After The Storm: Near-Term Planning for Long-Term Business Success Sheraton, Metairie, LA Contact: http://www.turnaround.org/ December 8, 2006 CEB Creditors' Remedies & Debtors' Rights Los Angeles / Century City, CA Contact: http://www.ceb.com/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION LI TMA Holiday Party TBA, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function GE Commercial Finance, Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ December 20, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA, AVF & CFA Georgia Aquarium, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ January 11, 2007 BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies: Evaluating Turnaround Potential and Establishing the Basis for Actionable, Achievable Solutions Contact: 240-629-3300 or http://www.beardaudioconferences.com/ January 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lender's Panel University Club, Jacksonville, FL Contact: http://www.turnaround.org/ January 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Lender's Panel Breakfast Westin Buckhead, Atlanta, GA Contact: http://www.turnaround.org/ January 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ January 17-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Conference Wynn, Las Vegas, NV Contact: http://www.turnaround.org/ February 8-11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Certified Turnaround Professional (CTP) Training NY/NJ Contact: http://www.turnaround.org/ February 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA PowerPlay - Atlanta Thrashers Philips Arena, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ January 25-27, 2007 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Hyatt Regency, Denver, CO Contact: 1-703-739-0800; http://www.abiworld.org/ February 8-9, 2007 EUROMONEY Leveraged Finance Asia JW Marriott Hong Kong Contact: http://www.euromoneyplc.com/ February 21-22, 2007 EUROMONEY Euromoney Pakistan Conference Perceptions & Realities Marriott Hotel, Islamabad, Pakistan Contact: http://www.euromoneyplc.com/ February 22, 2007 EUROMONEY 2nd Annual Euromoney Japan Forex Forum Mandarin Oriental, Tokyo, Japan Contact: http://www.euromoneyplc.com/ February 25-26, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Marriott Park City, UT Contact: http://www2.nortoninstitutes.org/ February 2007 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium San Juan, Puerto Rico Contact: 1-703-739-0800; http://www.abiworld.org/ March 1, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - West Regency Beverly Wilshire, Los Angeles, CA Contact: http://www.abiworld.org/ March 2, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Bankruptcy Battleground West Regency Beverly Wilshire, Los Angeles, CA Contact: http://www.abiworld.org/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Martini Madness Cocktail Reception with Geraldine Ferraro Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ March 15-18, 2007 NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES NABT Spring Seminar Ritz-Carlton Buckhead, Atlanta, GA Contact: http://www.NABT.com/ March 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ March 21-22, 2007 EUROMONEY 2nd Annual Vietnam Investment Forum Melia, Hanoi, Vietnam Contact: http://www.euromoneyplc.com/ March 21-22, 2007 EUROMONEY Euromoney Indian Financial Market Congress Grand Hyatt, Mumbai, India Contact: http://www.euromoneyplc.com/ March 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION "The Six Keys of Sustained Profitable Growth" Rodney Page, Senior Partner of Blue Springs Partners Citrus Club, Orlando, FL Contact: http://www.turnaround.org/ March 27-31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spring Conference Four Seasons Las Colinas, Dallas, Texas Contact: http://www.turnaround.org/ March 29-31, 2007 ALI-ABA Chapter 11 Business Reorganizations Scottsdale, Arizona Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/ April 11-15, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Annual Spring Meeting J.W. Marriott, Washington, DC Contact: 1-703-739-0800; http://www.abiworld.org/ April 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ April 12, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - East JW Marriott, Washington, DC Contact: http://www.abiworld.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ April 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION "Why Prospects Become Clients" Mark Fitzgerald, President of Sales Training Institute Inc Centre Club, Tampa, FL Contact: http://www.turnaround.org/ April 26-28, 2007 ALI-ABA Fundamentals of Bankruptcy Law Philadelphia, PA Contact: http://www.ali-aba.org April 29 - May 1, 2007 INTERNATIONAL BAR ASSOCIATION International Insolvency Conference Zurich, Switzerland Contact: http://www.ibanet.org/ May 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual TMA Atlanta Golf Outing White Columns, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ May 4, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - NYC Alexander Hamilton US Custom House, SDNY New York, NY Contact: http://www.abiworld.org/ May 7, 2007 AMERICAN BANKRUPTCY INSTITUTE 9th Annual New York City Bankruptcy Conference Millennium Broadway Hotel & Conference Center New York, NY Contact: http://www.abiworld.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, Illinois Contact: http://www.airacira.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, WY Contact: http://www2.nortoninstitutes.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or www.turnaround.org July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, RI Contact: 1-703-739-0800; http://www.abiworld.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ July 25-28, 2007 AMERICAN BANKRUPTCY INSTITUTE 12th Annual Southeast Bankruptcy Workshop The Sanctuary, Kiawah Island, SC Contact: http://www.abiworld.org/ August 9-11, 2007 AMERICAN BANKRUPTCY INSTITUTE 3rd Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, MD Contact: http://www.abiworld.org/ September 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Southwest Bankruptcy Conference Four Seasons Las Vegas, NV Contact: http://www.abiworld.org/ September 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ October 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Orlando, Florida Contact: http://www.ncbj.org/ October 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ October 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ December 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ December 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ January 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ April 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, DC Contact: http://www.abiworld.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference JW Marriott Spa and Resort, Las Vegas, NV Contact: http://www.airacira.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, MI Contact: http://www.abiworld.org/ August 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, FL Contact: http://www.abiworld.org/ September 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ October 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ December 4-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, AZ Contact: http://www.abiworld.org/ October 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, Nevada Contact: http://www.ncbj.org/ October 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, Louisiana Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers - the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Emerging Role of Corporate Compliance Panels Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Distressed Market Opportunities Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Reverse Mergers-the New IPO? Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E- Discovery and Records Management for Bankruptcy Practitioners and Litigators Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Contact: http://www.beardaudioconferences.com 240-629-3300 The Meetings, Conferences, and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e- mail to conferences@bankrupt.com are encouraged. ********* Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, and Zora Jayda Zerrudo Sala, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *