/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070105.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 Friday, January 5, 2007, Vol. 8, No. 4 Headlines A U S T R I A FINISHED METAL: Creditors' Meeting Slated for January 17 INOVA WERBE: Creditors' Meeting Slated for January 11 LINHART TRUCK: Creditors' Meeting Slated for January 15 MURAMONT LLC: St. Poelten Court Orders Business Closure PAN-BAU LLC: Creditors' Meeting Slated for January 18 PEN PERSONALLEASING: Creditors' Meeting Slate for January 18 WEIKA BAU: Creditors' Meeting Slated for January 11 F R A N C E ALCATEL-LUCENT: Appoints Gerard Le Bihan to Head Lannion Site G E R M A N Y DAIMLERCHRYSLER AG: U.S. Arm Inks Car Deal with Chery Automobile GERRESHEIMER: Wilden Purchase to Bring EUR240-Mln More Sales GERRESHEIMER ALPHA: S&P Affirms B+ Rating on High Debt Leverage GERRESHEIMER HOLDINGS: Moody's Junks EUR210-Million Senior Notes INFOPEOPLE AG: Claims Registration Ends January 16 J.S.B. UNTERNEHMENSBERATUNGS: Claims Registration Ends Jan. 11 LIPPE LOGISTIK: Files for Insolvency Proceedings in Detmold MAT TRANSPORT: Claims Registration Ends January 8 PEKUZ LOGISTIC: Claims Registration Ends January 8 PRINTS MEDIENGESELLSCHAFT: Claims Registration Ends January 12 I T A L Y ALITALIA SPA: Potential Buyers Consult Unions Over Recovery Plan PARMALAT SPA: BNL & Ifitalia to Pay EUR112 Mln to Settle Suit VENUS-1 FINANCE: Fitch Assigns BB Rating on EUR6.5-Mln Notes K A Z A K H S T A N ALMA NET: Creditors Must Register Claims by February 9 ALMA-ATA-ADVERTISING: Creditors Must Register Claims by Feb. 8 ARK PRODUCTIONS: Creditors Must Register Claims by February 7 ARSTROY LLP: Creditors Must Register Claims by February 6 BUTYA-KAZAKHSTAN: Creditors Must Register Claims by February 8 BYRLYK LLP: Deadline for Claims Registration Set February 8 DJAN-EL LLP: Deadline for Claims Registration Set February 8 HARRIS GROUP: Creditors Must Register Claims by February 1 OMIR LLP: Deadline for Claims Registration Set February 7 PAVLODAR TRANS: Creditors Must Register Claims by February 7 RAITEPLOKOMMUNENERGO: Claims Filing Deadline Set February 8 SAGYM LLP: Claims Registration Deadline Set for Feb. 7 SONIS LLP: Deadline for Claims Registration Set February 8 SVAZSTROYCOMPLECT JSC: Court Starts Bankruptcy Proceedings K Y R G Y Z S T A N KUBANYCH JSC: Creditors Must Register Claims by February 20 KYRGYZ TRUST: Creditors Must Register Claims by February 20 N E T H E R L A N D S ALCATEL-LUCENT: Appoints Gerard Le Bihan to Head Lannion Site GLOBAL POWER: Wants Removal Period Extended Until March 27 GLOBAL POWER: Wants to Reject Executory and Lease Contracts R U S S I A DEBESSLOY AGRO-WORKS: Creditors Must File Claims by Feb. 9 DOLINA CJSC: Creditors Must File Claims by Feb. 9 FENIKS-COMPUTER CJSC: Creditors Must File Claims by Feb. 9 KANASHAKAYA CERAMICS: Bankruptcy Hearing Slated for March 27 ZARECHYE-2 CJSC: Bankruptcy Hearing Slated for Feb. 1 KHABAROVSKIY FACTORY: Assets Sale Slated for January 15 KUZBASS-TRADING-EQUIPMENT OJSC: Court Hearing Slated for Jan. 22 NIZHEGOROD-TRANS-SERVICE: Creditors Must File Claims by Jan. 9 RUSICH CJSC: Creditors Must File Claims by Feb. 9 SATEK CJSC: Creditors Must File Claims by Feb. 9 SIGMA-FOREST LLC: Creditors Must File Claims by Feb. 9 SOYUZ-TRANS-OIL LLC: Creditors Must File Claims by Feb. 9 STROY-INVEST LLC: Moscow Bankruptcy Hearing Slated for April 10 TATARSKAYA FACTORY: Creditors Must File Claims by Feb. 9 TRAVEL AND ADVENTURE: Court Names R. Farrakhov to Manage Assets S W I T Z E R L A N D AUTOGARAGE ROSARI: Court Suspends Bankruptcy Proceedings CCSI COMPUTER: Bern-Mittelland Court Closes Bankruptcy Process EUROPEAN REINSURANCE: Seeks Chapter 15 Relief in S.D. New York EUROPEAN REINSURANCE: Chapter 15 Petition Summary HELLER TREUHAND: Basel-Stadt Court Starts Bankruptcy Proceedings HOLWEST JSC: Court Suspends Bankruptcy Proceedings ICE HANDELS: St. Gallen Court Starts Bankruptcy Proceedings LTL LOTUS: Basel-Stadt Court Suspends Bankruptcy Proceedings MADER TREUHAND: St. Gallen Court Suspends Bankruptcy Process NEUE SCHULE: Court Suspends & Closes Bankruptcy Proceedings SELTI ELEKTRONIK: Basel-Stadt Court Starts Bankruptcy Process TOP MALER: St. Gallen Court Starts Bankruptcy Proceedings ZIRKUS LILIPUT: Court Closes Bankruptcy Proceedings U K R A I N E CAREKONSTANTINOV MACHINE: Creditors Must File Claims by Jan. 13 FERROCONCRETE ITEMS: Creditors of Must File Claims by January 13 GATNYANSKOE LLC: Claims Submission Deadline Set January 13 GETMAN LLC: Deadline for Submission of Claims Set January 17 KARLOVKA AGRICULTURE: Creditors of Must File Claims by Jan. 17 SHABELNIKI LLC: Claims Bar Date Slated for January 13 STARK LLC: Creditors of Must File Claims by January 17 UKRSOTSBANK: Moody's Puts Local Currency Deposit Rating at Ba1 ZLATOKRAY CORP: Creditors of Must File Claims by January 13 U N I T E D K I N G D O M BARWOOD PRODUCTS: Names Tenon Recovery as Joint Administrators BRIDGEN ENTERPRISES: Taps Administrators from Smith & Williamson COLLINS & AIKMAN: Inks Fifth Amendment of DIP Loan with JPMorgan EASTMAN KODAK: Inks Agreements with Sony; Ends Patent Dispute FORD MOTOR: US December Sales Down 13%; Full 2006 Sales Down 8% GENERAL MOTORS: US December Sales Down 9.6%; 2006 Sales Down 9% INCO LIMITED: Shareholders Approve Merger with Itabira Canada NEWCASTLE INTL: S&P Cuts Rating to BB on Weak Financial Profile PAULO OGIANNI: Brings In Administrators from Mazars LLP REFCO INC: Wants PlusFunds' US$532 Million Claims Disallowed REFCO INC: Equity Committee Wins US$1.2 Million in Court Battle SENTRA EUROPE: Brings In Menzies to Administer Assets SILOCARE LIMITED: Names Andrew James Nichols as Administrator SPECIALIZED CLADDING: Appoints David Hill to Administer Assets STAGGER INN: Appoints Joint Administrators from Mazars LLP WATCHBELL LIMITED: Taps KPMG LLP to Administer Assets * BOOK REVIEW: Learning Leadership: The Abuse of Power in Organizations ********* ============= A U S T R I A ============= FINISHED METAL: Creditors' Meeting Slated for January 17 -------------------------------------------------------- Creditors owed money by LLC Finished Metal Products (FN 245356v) are encouraged to attend the creditors' meeting at 9:00 a.m. on Jan. 17, to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 13, 2006 (Bankr. Case No. 4 S 161/06p). Thomas Engelhart serves as the court-appointed property manager of the bankrupt estate. Karl F. Engelhart represents Dr. Engelhart in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Thomas Engelhart c/o Dr. Karl F. Engelhart Esteplatz 4 1030 Vienna, Austria Tel: 712 33 30 Fax: 712 33 30 30 E-mail: kanzlei@engelhart.at INOVA WERBE: Creditors' Meeting Slated for January 11 ----------------------------------------------------- Creditors owed money by LLC inova Werbe + Produktions (FN 225733k) are encouraged to attend the creditors' meeting at 11:00 a.m. on Jan. 11, to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1707 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 13, 2006 (Bankr. Case No. 2 S 154/06v). Georg Kahlig serves as the court-appointed property manager of the bankrupt estate. Gerhard Stauder represents Dr. Kahlig in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Georg Kahlig c/o Mag. Gerhard Stauder Siebensterngasse 42/3 1070 Vienna, Austria Tel: 523 47 91-0 E-mail: kahlig.partner@aon.at LINHART TRUCK: Creditors' Meeting Slated for January 15 ------------------------------------------------------- Creditors owed money by LLC Linhart Truck Service (FN 214026w) are encouraged to attend the creditors' meeting at 10:45 a.m. on Jan. 15, to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 23, 2006 (Bankr. Case No. 3 S 115/06s). Michael Lesigang serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Michael Lesigang Landstrasser Hauptstrasse 14-16/8 1030 Vienna, Austria Tel: 715 25 26 Fax: 715 25 26/27 E-mail: michael@lesigang.at MURAMONT LLC: St. Poelten Court Orders Business Closure ------------------------------------------------------- The Land Court of St. Poelten entered Nov. 14, 2006, an order closing the business of LLC Muramont (FN 165060k). Court-appointed property manager Susanne Binder 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. Susanne Binder Riemerplatz 1 3100 St. Poelten, Austria Tel: 02742/47087 Fax: 02742/47089 E-mail: ra-binder@aon.at Headquartered in St. Poelten, Austria, the Debtor declared bankruptcy on Sept. 15, 2006 (Bankr. Case No. 14 S 148/06i). PAN-BAU LLC: Creditors' Meeting Slated for January 18 ----------------------------------------------------- Creditors owed money by LLC Pan-Bau (FN 220820k) are encouraged to attend the creditors' meeting at 10:45 a.m. on Jan. 18, to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1701 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 13, 2006 (Bankr. Case No. 6 S 112/06x). Katharina Widhalm-Budak serves as the court-appointed property manager of the bankrupt estate. Klemens Dallinger represents Dr. Widhalm- Budak in the bankruptcy proceedings. The property manager can be reached at: Dr. Katharina Widhalm-Budak c/o Dr. Klemens Dallinger Schulerstrasse 18 1010 Vienna, Austria Tel: 513 10 37 Fax: 513 10 37 22 E-mail: widhalm-budak@anwaltsteam.at dallinger@anwaltsteam.at PEN PERSONALLEASING: Creditors' Meeting Slate for January 18 ------------------------------------------------------------ Creditors owed money by LLC Pen Personalleasing (FN 257587f) are encouraged to attend the creditors' meeting at 10:30 a.m. on Jan. 18, to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1701 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 13, 2006 (Bankr. Case No. 6 S 111/06z). Markus Siebinger serves as the court-appointed property manager of the bankrupt estate. Karl Schirl represents Mag. Siebinger in the bankruptcy proceedings. The property manager and his representative can be reached at: Mag. Markus Siebinger c/o Dr. Karl Schirl Krugerstrasse 17/3 1010 Vienna, Austria Tel: 513 22 31 Fax: 513 22 31 1 E-mail: markus.siebinger@der-rechtsanwalt.at dr.karl.schirl@der-rechtsanwalt.at WEIKA BAU: Creditors' Meeting Slated for January 11 --------------------------------------------------- Creditors owed money by LLC Weika Bau (FN 231450v) are encouraged to attend the creditors' meeting at 2:00 p.m. on Jan. 11, to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Graz Hall L (Room 230) 2nd Floor Graz, Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Nov. 13, 2006 (Bankr. Case No. 25 S 96/06i). Mario Kapp serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Mag. Mario Kapp Karntnerstrasse 525-527 8054 Graz, Austria Tel: 0316/22 59 55 Fax: 0316/282013 E-mail: kapp@kapp.at =========== F R A N C E =========== ALCATEL-LUCENT: Appoints Gerard Le Bihan to Head Lannion Site ------------------------------------------------------------- Alcatel-Lucent appointed Gerard Le Bihan to lead its site in Lannion, France, replacing Nicolas Le-Guennec. He will also keep its operational functions in Alcatel-Lucent convergence activities. Mr. Le-Guennec, who has lead the legacy Alcatel site in Lannion since 2002, is becoming responsible for the global real estate portfolio of Alcatel-Lucent within the nine Regional Units established in Europe & South (Central & Latin America, France, Iberia, Italy, Middle-East, Africa, South Asia, South East Europe). Mr. Le Bihan joined Alcatel in 1981, and made his career there. Between 1981 and 2001, he managed different technical functions, especially in the ATM environment. In 2002, he joined the Mobile communications activities as Project director for new product and network integration focusing on IMS development. Since 2004, he was Senior architect in charge of the portfolio renovation for both the circuit and data product lines. Gerard Le Bihan has an engineer degree of ENST Brest (Ecole Nationale Superieure de Telecommunications). He is currently 48 years old. 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. With 79,000 employees and operations in more than 130 countries, including Brazil, Alcatel-Lucent is a local partner with global reach. 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 on Dec. 14, 2006, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel-Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel- Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence, expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non- US activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings is stable. This rating action concludes the rating reviews initiated on April 3, 2006. Standard & Poor's, on Dec. 6, 2006, 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. S&P said the outlook is positive. ============= G E R M A N Y ============= DAIMLERCHRYSLER AG: U.S. Arm Inks Car Deal with Chery Automobile ---------------------------------------------------------------- DaimlerChrysler AG's Chrysler Group has signed a deal with Chery Automobile Co. under which the Chinese automaker will produce small cars known in the industry as "B-cars" to be distributed worldwide bearing the Chrysler brand, The Financial Times reports. Chrysler spokesman Jason Vines told The Associated Press that "Chrysler is taking the lead on the design and will ensure that the vehicles meet high quality standards." He added that Chrysler is set to unveil a prototype "fairly soon." The deal still awaits approval by Chrysler's supervisory board and by the Chinese government. Production is expected to start sometime next year. However, Chrysler declined to discuss production volume. The auto manufacturer also refused to reveal the financial terms of the deal. According to Bloomberg, DaimlerChrysler has decided to partner with Chery Auto because higher costs such as labor and healthcare make it difficult for the company to build small cars profitably in the U.S. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells 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. 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. GERRESHEIMER: Wilden Purchase to Bring EUR240-Mln More Sales ------------------------------------------------------------ Gerresheimer Group disclosed that it has acquired Wilden AG, the European market leader for pharmaceutical drug-delivery systems based on plastic. "This marks a giant step in our strategy to generate sustained growth through the acquisition of technology and market leaders in the field of pharma packaging and systems. Through the purchase which brings around EUR240 million of additional annual sales, Gerresheimer grows into a new order of magnitude," says Gerresheimer CEO Dr. Axel Herberg. In Wilden, Gerresheimer acquires the market and technology leader for innovative plastic systems. The business comprises the divisions of "Medical Plastic Systems" (pharmaceutics, diagnostics, medical technology and consumer healthcare) and "Technical Plastic Systems". The product segment of Medical Plastic Systems accounts for two thirds of the total sales of EUR240m. The Technical Plastic Systems Division manufactures sophisticated injection-moulded products mainly for the automobile industry. The company has eight production plants and four joint ventures with a total of more than 2,300 employees. The main focus of marketing is on Europe; in addition, Wilden is active in the USA, Mexico, China and the United Arab Emirates. "Through the takeover of Wilden we have acquired the market, quality and technology leader in all its product segments, which are characterised by highly dynamic growth," Dr. Herberg comments on the acquisition, adding with regard to the Gerresheimer Group: "This is a quantum leap for us. Our pharma business in plastic thereby grows into a new order of magnitude which gives us a completely new positioning towards our customers." Hans Wilden, who has run the family business together with his brother Bert, comments: "In Gerresheimer we have found a globally active and highly competitive partner with which the company will develop outstandingly well." For pharma products such as inhalation systems, Wilden has for many years been an important and recognized development partner for the worldwide pharmaceutics industry. In addition, the company has a particularly good performance record in the field of products for diabetes diagnosis. It has a longstanding customer base among globally active pharma and healthcare groups. Thanks to its advanced technical expertise Wilden enjoys an excellent reputation among its customers for quality, innovation and reliability and is one of the leading full- service providers from product development through to tool manufacture and series production. Following the acquisition of Wilden, the Gerresheimer Group will in future comprise the four divisions of Tubular Glass, Moulded Glass, Life Science Research und Plastic Systems. The Group's sales volume will grow to more than EUR900 million. "Whether in North America, Europe or Asia we will in future have leading market positions in all the business sectors in which we are represented," Dr. Herberg stresses. "High technical entry barriers will in future secure this competitive position," he adds. For around a year now the Gerresheimer Group has been making its presence felt through targeted acquisitions. In the USA, Europe and China, a series of market-leader companies have been acquired in order to expand the Gerresheimer product portfolio and establish a wider international base. Three quarters of sales are today already achieved with pharma/life-science customers. As a result of the purchase of Wilden AG, the Gerresheimer Group will in future have more than 31 production plants in America, Europe and Asia with a worldwide total of 8,500 employees. About the Company Headquartered in Dusseldorf, Germany, Gerresheimer -- http://www.gerresheimer.com/-- manufactures packaging based on glass and plastic, particularly for the segments of pharmaceutics and cosmetics. The Group has 31 production plants in Europe, America and Asia and employs 8,500 people. GERRESHEIMER ALPHA: S&P Affirms B+ Rating on High Debt Leverage --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit ratings on Germany-based packaging group Gerresheimer Alpha GmbH and its fully owned subsidiary, Gerresheimer Holdings GmbH. The ratings were removed from CreditWatch, where they were placed with negative implications on Oct. 6, 2006, following the group's announcement that it was considering acquiring Wilden AG, a market leader for medical plastic systems in Europe, in a fully-debt financed transaction. The outlook is negative. "The rating affirmation reflects our view that, although credit measures will continue to be weak for the ratings pro forma the acquisition of Wilden, a growth in earnings is likely to drive an improvement over the next two years to levels more in line with the ratings," said Standard & Poor's credit analyst Izabela Listowska. Although debt levels are high following the acquisition, we now consider Gerresheimer's business risk profile to be somewhat stronger. We therefore expect the group's adjusted debt to EBITDA to remain below 6x and to gradually strengthen to 5x, and we expect funds from operations (FFO) to debt to be 10%-15% for this rating category. On a pro forma basis, these measures were 5.9x and 9.5%, respectively, at Dec. 31, 2006. The rating agency expects Gerresheimer's earnings to grow following several recently completed operational and restructuring projects. These included closure of underutilized plants and the subsequent transfer of manufacturing to low-cost regions, modernization of several operation facilities, and expansion of production capacities for fast-growing and high- margin products. Nevertheless, the acquisition highlights that Gerresheimer's financial policy is continuously aggressive -- Wilden represents its third mid- to large-size acquisition since October 2005. Gerresheimer's business risk profile will strengthen following the transaction, as it will gain leading and fairly protected market positions in medical plastic systems in Europe. This will be supported by its reputation for high-quality, innovative, and value-added products, as well as long-term customer relationships backed by multi-year contracts. The acquisition has shifted Gerresheimer's product mix toward higher-margin plastic solutions (now about 30% of the group's revenues). The ratings continue to reflect Gerresheimer's highly leveraged financial profile and ongoing aggressive financial policy. These factors are mitigated by the group's good geographic diversification and leading positions in highly consolidated and growing pharmaceutical end markets. "The negative outlook reflects that the ratings could be lowered if Gerresheimer is not successful in gradually improving credit measures in line with the ratings," said Ms. Listowska. GERRESHEIMER HOLDINGS: Moody's Junks EUR210-Million Senior Notes ---------------------------------------------------------------- Moody's Investors Service confirmed the B2 Corporate Family Rating for Gerresheimer Holdings GmbH and the Caa1 rating for the EUR210-million senior notes, guaranteed on a subordinated basis by major operating subsidiaries, due in 2015. The outlook for the ratings is stable. This concludes the review process that was initiated on Oct. 9, 2006, following the company's announcement to acquire a supplier in the pharmaceutical industry and raise total debt by around EUR300 million. Gerresheimer announced that it has closed the acquisition of Wilden AG, headquartered in Regensburg, Germany, per Jan. 2, 2007. Wilden produces high-end plastic injection molding and assembly technology for the pharmaceutical, consumer healthcare, medical as well as automotive industries and is primarily active in Western Europe where it operates the large majority of its production facilities in Germany, Czech Republic, Switzerland and Sweden apart from a small presence in the US and four joint ventures. Wilden reported preliminary fiscal year 2006 sales of around EUR240 million and employed more than 2,200 people. Gerresheimer has financed the purchase price by new term loans (sum of EUR276 million) and has raised a total of EUR304 million including capital leases and other debt to also refinance existing debt, transaction fees as well as to cover for additional working capital requirements. Martin Kohlhase, Moody's lead analyst for the European packaging industry said: "The acquisition transforms Gerresheimer into a significantly larger group with a stronger business profile and an increased foothold as a supplier of healthcare related products." Pro-forma 2007 sales are estimated at nearly EUR980 million and the group will employ about 9,200 people. The share of plastic- based products will increase to around one third and will make the company less dependent on glass as the main substrate. The unique position of Wilden with established relationships to key players in the international pharmaceutical and consumer healthcare market coupled with a large share of contracted sales should bolster profitability and cash flows of the enlarged group. Should Wilden be successfully integrated and absent any larger acquisitions -- which have not been, contrary to bolt-on acquisitions, factored into the rating -- Moody's would expect Gerresheimer to de-leverage from its current Debt/EBITDA levels of around 7x towards 6x by end of fiscal year 2007 and 5x over the coming 24 months, which may put upward pressure onto the rating. Ratings could, however, come under negative pressure, should the integration process be delayed or impaired, were input prices further to rise coupled with the inability to pass these higher costs on or if growth were to subside with key credit metrics, such as Debt/EBITDA remaining at levels of above 6x and EBITA margins of less than 11%. The stable outlook reflects the anticipation of a successful integration of Wilden and the absence of any large external shocks, such as a rise in input prices with a subsequent negative impact on operating profitability. The stable outlook further assumes no further larger debt-financed acquisition. Gerresheimer Holdings GmbH, with headquarters in Duesseldorf, Germany, is a producer of specialty glass packaging primarily for the pharmaceutical, cosmetics and specialty food markets. Revenues for the fiscal year end Nov. 30, 2005 were EUR525.8 million. INFOPEOPLE AG: Claims Registration Ends January 16 -------------------------------------------------- Creditors of Infopeople AG have until Jan. 16, to register their claims with court-appointed provisional administrator Joachim Exner. Creditors and other interested parties are encouraged to attend the meeting at 2:30 p.m. on Feb. 22, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Fuerth Room 216/II Office Building Baumenstrasse 28 Fuerth, 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 Fuerth opened bankruptcy proceedings against Infopeople AG on Nov. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Infopeople AG Weichselgarten 7 91058 Erlangen, Germany The administrator can be contacted at: Joachim Exner Stahlstrasse 17 90411 Nuernberg, Germany Tel: 0911/9512850 Fax: 0911/95128510 J.S.B. UNTERNEHMENSBERATUNGS: Claims Registration Ends Jan. 11 -------------------------------------------------------------- Creditors of J.S.B. Unternehmensberatungsgesellschaft im Bauwesen mbH have until Jan. 11 to register their claims with court-appointed provisional administrator Gotz Lautenbach. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Feb. 1, 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 Offenbach am Main Hall 162N 1st Floor Emperor Route 16-18 (Building K18) 63065 Offenbach am Main, 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 Offenbach am Main opened bankruptcy proceedings against J.S.B. Unternehmensberatungsgesellschaft im Bauwesen mbH on Nov. 24, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: J.S.B. Unternehmensberatungsgesellschaft im Bauwesen mbH Attn: Juergen Schworke, Germany Graf-Folke-Bernadotte-Road 7 63263 Neu-Isenburg, Germany The administrator can be contacted at: Gotz Lautenbach Zeilweg 42 D-60439 Frankfurt/Main, Germany Tel: 069/963761-130 Fax: 069/963761-145 LIPPE LOGISTIK: Files for Insolvency Proceedings in Detmold ----------------------------------------------------------- Lippe Logistik GmbH & Co. KG, Lemgo, filed a request to open an insolvency proceeding with the competent County Court of Detmold on Dec. 22, 2006. Lippe Logistik is a fully owned subsidiary of LOG Beteiligungs- GmbH, Lemgo, in which Thiel Logistik AG holds a 74.9% participation. Lippe Logistik, which employs 177 workers, has approximately EUR13 million in annual revenues. Despite intensive restructuring efforts and massive financial support by LOG Beteiligungs-GmbH, Lippe Logistik has suffered significant losses in recent years. A significant loss was also expected for 2007. Against this background, the shareholders of LOG Beteiligungs- GmbH were not ready to finance these losses any further. This has made the request to open the insolvency proceeding inevitable for the management of Lippe Logistik. Neither LOG Beteiligungs-GmbH or other companies within the Thiel Group will be affected by the insolvency. The operating business of the other companies within the Thiel Furniture business unit, i.e. the German ALCO GmbH Transport International and the Polish MM Logistic, will be continued unchanged. Both companies operate profitably. Thiel Logistik AG regrets the development at Lippe Logistik. At the same time, there is the hope to preserve as many work places as possible. MAT TRANSPORT: Claims Registration Ends January 8 ------------------------------------------------- Creditors of MAT Transport GmbH & Co. KG have until Jan. 8 to register their claims with court-appointed provisional administrator Horst Piepenburg. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on Jan. 29, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Area A 341 3rd Floor Muehlenstrasse 34 40213 Duesseldorf, 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 Duesseldorf opened bankruptcy proceedings against MAT Transport GmbH & Co. KG on Nov. 30, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: MAT Transport GmbH & Co. KG Harkortstrasse 6 40880 Ratingen, Germany Attn: Johannes Christiaan Otting, Manager 36/41 Holywell Lane London EC2P 2EQ United Kingdom The administrator can be contacted at: Horst Piepenburg Heinrich-Heine-Avenue 20 40213 Duesseldorf, Germany PEKUZ LOGISTIC: Claims Registration Ends January 8 -------------------------------------------------- Creditors of Pekuz Logistic GmbH have until Jan. 8 to register their claims with court-appointed provisional administrator Axel Schwentker. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 7, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Meeting Room C315 3rd 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 Pekuz Logistic GmbH on Nov. 28, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Pekuz Logistic GmbH Nienhaushof 27 47139 Duisburg, Germany Attn: Sadi Pekuz, Manager Dahlemer Str. 6 40789 Monheim, Germany The administrator can be contacted at: Axel Schwentker Lindnerstrasse 165 46149 Oberhausen, Germany PRINTS MEDIENGESELLSCHAFT: Claims Registration Ends January 12 -------------------------------------------------------------- Creditors of Prints Mediengesellschaft mbH have until Jan. 12 to register their claims with court-appointed provisional administrator Juergen Pflug. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 19, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kassel Hall 234 Friedrichsstrasse 32-34 34117 Kassel, 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 Kassel opened bankruptcy proceedings against Prints Mediengesellschaft mbH on Nov. 23, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Prints Mediengesellschaft mbH Attn: Birte Flecken, Manager Kolnische Str. 16 34117 Kassel, Germany The administrator can be contacted at: Juergen Pflug Wilhelmshoher Avenue 169 D-34121 Kassel, Germany Tel: 0561/2075680 Fax: 0561/20756820 E-mail: info@pflug-achenbach.de ========= I T A L Y ========= ALITALIA SPA: Potential Buyers Consult Unions Over Recovery Plan ---------------------------------------------------------------- A group of 16 interested buyers for Alitalia S.p.A. are asking for a meeting with the company's unions to discuss a recovery plan for the ailing national carrier, Alessandro Torello and Sonia Sirletti write for Bloomberg News. The bidders -- entrepreneurs and bankers, as well as experts in customer satisfaction, marketing and finance -- sent through Rome-based law firm Carnelutti invitation letters to five Alitalia unions, including the Sindacato Unitario Lavoratori dei Trasporti (SULT) and Federazione Italiana Trasporti (FIT-CISL) groups. Paolo Alazraki, who owns Real Dreams Italy Srl and heads the bidders, confirmed to Bloomberg News that the meeting was to present its Alitalia recovery plan to union representatives. "We will answer the government's call for interest," Mr. Alazraki was quoted by Bloomberg News as saying. "We have been working night and day for four months to prepare a master plan for the salvage of Alitalia," Fabrizio Tomaselli, SULT'S national secretary, revealed that the bidders' are eyeing to renew Alitalia's the fleet and seek an alliance partner to expand the carrier "qualitatively and quantitatively." Unions have repeatedly criticized the government for failing to consult them on critical decisions regarding Alitalia S.p.A. The bidders, however, cancelled the meeting due to unknown reasons, Bloomberg News reports citing local newspaper Il Sole 24 Ore. In a TCR-Europe report on Jan. 3, the Italian government formally launched the bidding process for its 30.1% stake in troubled national carrier Alitalia S.p.A. on Dec. 29, 2006. Italy's Ministry of Economy and Finance is inviting interested parties to submit a non-binding offer for around 30.1% to 49.9% of Alitalia's capital and 1,207,147,404 convertible bonds of the carrier's 7.5% 2002-2010 debenture loan. The sale will take place through a competitive procedure involving direct negotiations with potential buyers. Interested parties, which should have at least EUR100 million in capital, have until 6:00 p.m. on Jan. 29, 2007, to submit their written expression of interest to Merrill Lynch International, the sale advisor. According to the Ministry, potential buyers will be selected based on the economic terms of the offers received and an analysis of the business plans. The Ministry will also examine the compatibility of the offers and business plans with the Alitalia's restructuring, development and relaunch objectives. The Ministry also outlined mandatory commitments for the buyer to: -- keep at least a 30.1% stake in Alitalia until the business plan is successfully carried out: -- safeguard Alitalia's national identity; and -- guarantee the quality and quantity of services offered and coverage of the territory. Several Italian entrepreneurs are reportedly interested in Alitalia, The Times reports. Local bets include: -- Carlo Toto, founder of Air One, -- Luca di Montezemolo, head of Fiat and Ferrari; -- Diego Della Valle, chief of the Tod's shoe empire; and -- Banca Intesa and Sanpaolo IMI; The government aims to complete the process this month. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. In Europe, the company reaches 45 airports, with 1,238 flights per week. In the rest of the world, the Alitalia Group's aircrafts operate out of 32 airports with 255 flights per week. The Alitalia Group network is centered on two main airports, Rome Fiumicino and Milan Malpensa, and includes, as of Sept. 30, 2006, an operating fleet of 182 aircrafts. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. PARMALAT SPA: BNL & Ifitalia to Pay EUR112 Mln to Settle Suit ------------------------------------------------------------- Parmalat S.p.A and Banca Nazionale del Lavoro S.p.A. communicate that the cases involving revocatory and damages actions filed by Parmalat and by other Group companies against BNL and Ifitalia have been settled, as have the objections filed in bankruptcy court by Ifitalia. BNL, also acting on behalf of Ifitalia, has committed to pay to Parmalat: -- the amount of EUR103 million in settlement of revocatory actions, plus -- the amount of EUR9 million in settlement of damages claims, together amounting to a total of EUR112 million. Further, BNL and Ifitalia have undertaken to forego the right to file claims with the Parmalat case bankruptcy court for a value equivalent to that returned in settlement of the revocatory actions, and have also agreed to renounce to the objections previously filed by Ifitalia in relation to Parmalat's list of creditors. Following the settlement Parmalat and BNL/Ifitalia have undertaken to withdraw all the pending actions. BNL, Ifitalia and Parmalat express their satisfaction at the settlement, which will set in place the conditions for a fruitful future relationship. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Parmalat Capital Finance Limited, Dairy Holdings, Ltd., and Food Holdings, Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat SpA. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Limited serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. (Parmalat Bankruptcy News, Issue No. 83; Bankruptcy Creditors' Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/) VENUS-1 FINANCE: Fitch Assigns BB Rating on EUR6.5-Mln Notes ------------------------------------------------------------ Fitch Ratings assigned Venus-1 Finance S.r.l.'s non-performing loans-backed floating-rate notes, with final maturity in 2019, final ratings are: -- Class A EUR51.4 million: AAA; -- Class B EUR8.2 million: AA; -- Class C EUR6.3 million: A; -- Class D EUR9.1 million: BBB; and -- Class E EUR6.5 million: BB. This transaction is a securitization of two portfolios of non- performing loans, Monviso 1 and Monviso 2, both originated in Italy by Sanpaolo IMI Group and acquired in 2005 by ABN AMRO Bank N.V. and by FBS Luxembourg S.a.r.l. The two portfolios are made of secured and unsecured non- performing loans. As at the cut-off date of June 30, 2006, the portfolios comprised a total of 21,911 borrower positions for a total gross legal claim value of EUR303.2 million. The aggregate portfolio consists mainly of unsecured NPLs, with the remaining 14% made up of mortgage-secured NPLs. At closing, Venus purchased the Monviso 1 and Monviso 2 notes by using the proceeds from the issuance of the rated notes and one Class of unrated notes. The issuer of the Monviso 1 and 2 notes, Monviso Finance S.r.l., is a limited liability company incorporated in the Republic of Italy under the Securitisation Law. The source of payment of interest and repayment of principal on the Monviso notes is represented by collections on the Monviso portfolios. The source of payment of interest and repayment of principal on the Venus's rated notes will be the payment of interest and principal received by the issuer as sole holder of the Monviso 1 and 2 notes. The final ratings address the timely payment of interest and ultimate repayment of principal for the Class A, B, C, D and E notes by final maturity in 2019. Interest and principal on the rated notes are to be paid sequentially on a half-year basis. A EUR6.1-million liquidity facility is available to Venus to make up interest shortfalls on the investment-grade notes. =================== K A Z A K H S T A N =================== ALMA NET: Creditors Must Register Claims by February 9 ------------------------------------------------------ LLP Alma Net International has declared insolvency. Creditors have until Feb. 9 to submit written proofs of claim to: LLP Alma Net International Abai Ave. 36/79b-23 Almaty Region Kazakhstan Tel: 8 (3272) 60-64-00 60-12-77 ALMA-ATA-ADVERTISING: Creditors Must Register Claims by Feb. 8 -------------------------------------------------------------- LLP Alma-Ata-Advertising has declared insolvency. Creditors have until Feb. 8 to submit written proofs of claim to: LLP Alma-Ata-Advertising Micro District Aksai-4 48 Almaty Region Kazakhstan Tel: 8 (3272) 75-15-89 46-83-28 ARK PRODUCTIONS: Creditors Must Register Claims by February 7 ------------------------------------------------------------ LLP Ark Productions has declared insolvency. Creditors have until Feb. 7 to submit written proofs of claim to: LLP Ark Productions Jarokov Str. 292-106 Almaty Kazakhstan ARSTROY LLP: Creditors Must Register Claims by February 6 --------------------------------------------------------- LLP Construction Company Arstroy has declared insolvency. Creditors have until Feb. 6 to submit written proofs of claim to: LLP Construction Company Arstroy Bebeshilik Str. 1 Drujba Alakolsky District Almaty Region Kazakhstan BUTYA-KAZAKHSTAN: Creditors Must Register Claims by February 8 -------------------------------------------------------------- CJSC Butya-Kazakhstan has declared insolvency. Creditors have until Feb. 8 to submit written proofs of claim to: CJSC Butya-Kazakhstan Bogenbai Baatyr Str. 80 Almaty Kazakhstan BYRLYK LLP: Deadline for Claims Registration Set February 8 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl Region declared LLP Byrlyk insolvent on Nov. 6, 2006, and commenced bankruptcy proceedings against the company. Creditors have until Feb. 8 to submit written proofs of claim to: LLP Byrlyk Shokalakov Str. 57 Taraz Jambyl Region Kazakhstan DJAN-EL LLP: Deadline for Claims Registration Set February 8 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty declared LLP Djan-EL insolvent on Oct. 19, 2006, and commenced bankruptcy proceedings against the company. Creditors have until Feb. 8 to submit written proofs of claim to: LLP Djan-EL Post Office Box 193 General Post-Office Almaty Region Kazakhstan Tel: 8 333 233 19-63 8 700 400 09-95 HARRIS GROUP: Creditors Must Register Claims by February 1 ---------------------------------------------------------- LLP Harris Group has declared insolvency. Creditors have until Feb. 1 to submit written proofs of claim to: LLP Harris Group Mailin Str. 85 Almaty Region Kazakhstan OMIR LLP: Deadline for Claims Registration Set February 7 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan Region declared LLP Omir insolvent and commenced bankruptcy proceedings against the company. Creditors have until Feb. 7 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court Sholohov Str. 2/4 Uralsk West Kazakhstan Region Kazakhstan Tel: 8 (3112) 53-84-67 PAVLODAR TRANS: Creditors Must Register Claims by February 7 ------------------------------------------------------------ LLP Enterprise Pavlodar Trans has declared insolvency. Creditors have until Feb. 7 to submit written proofs of claim to: LLP Enterprise Pavlodar Kutuzov Str. 44-266 Pavlodar Pavlodar Region Kazakhstan RAITEPLOKOMMUNENERGO: Claims Filing Deadline Set February 8 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared Jarminskoye Particularized Enterprise Regional Heat Communal Power Raiteplokommunenergo insolvent on Nov. 14, 2006. Creditors have until Feb. 8 to submit written proofs of claim to: Jarminskoye Particularized Enterprise Regional Heat Communal Power Raiteplokommunenergo Myzy Str. 2/1-214 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 SAGYM LLP: Claims Registration Deadline Set for Feb. 7 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of West Kazakhstan Region declared LLP Sagym insolvent and commenced bankruptcy proceedings against the company. Creditors have until Feb. 7 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court Sholohov Str. 2/4 Uralsk West Kazakhstan Region Kazakhstan Tel: 8 (3112) 53-84-67 SONIS LLP: Deadline for Claims Registration Set February 8 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region ordered the compulsory liquidation of LLP Sonis (RNN 092200216526) on Nov. 22, 2006. Creditors have until Feb. 8 to submit written proofs of claim to: LLP Sonis Jangusurov Str. 113a Taldykorgan Almaty Region Kazakhstan Tel: 8 (32822) 24-19-77 SVAZSTROYCOMPLECT JSC: Court Starts Bankruptcy Proceedings ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region commenced bankruptcy proceeding against JSC Svazstroycomplect on Dec. 5, 2006. =================== K Y R G Y Z S T A N =================== KUBANYCH JSC: Creditors Must Register Claims by February 20 ----------------------------------------------------------- JSC Kubanych has declared insolvency. Creditors have until Feb. 20 to submit written proofs of claim to: JSC Kubanych Gorky Str. 1a Bishkek Kyrgyzstan Tel: (+996 312) 53-10-15 KYRGYZ TRUST: Creditors Must Register Claims by February 20 ----------------------------------------------------------- LLC Kyrgyz Trust has declared insolvency. Creditors have until Feb. 20 to submit written proofs of claim to: LLC Kyrgyz Trust Karasuiskaya Str. 5-54 Bishkek Kyrgyzstan Tel: (+996 312) 21-58-82 ===================== N E T H E R L A N D S ===================== ALCATEL-LUCENT: Appoints Gerard Le Bihan to Head Lannion Site ------------------------------------------------------------- Alcatel-Lucent appointed Gerard Le Bihan to lead its site in Lannion, France, replacing Nicolas Le-Guennec. He will also keep its operational functions in Alcatel-Lucent convergence activities. Mr. Le-Guennec, who has lead the legacy Alcatel site in Lannion since 2002, is becoming responsible for the global real estate portfolio of Alcatel-Lucent within the nine Regional Units established in Europe & South (Central & Latin America, France, Iberia, Italy, Middle-East, Africa, South Asia, South East Europe). Mr. Le Bihan joined Alcatel in 1981, and made his career there. Between 1981 and 2001, he managed different technical functions, especially in the ATM environment. In 2002, he joined the Mobile communications activities as Project director for new product and network integration focusing on IMS development. Since 2004, he was Senior architect in charge of the portfolio renovation for both the circuit and data product lines. Gerard Le Bihan has an engineer degree of ENST Brest (Ecole Nationale Superieure de Telecommunications). He is currently 48 years old. 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. With 79,000 employees and operations in more than 130 countries, including Brazil, Alcatel-Lucent is a local partner with global reach. 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 on Dec. 14, 2006, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel-Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel- Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence, expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non- US activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings is stable. This rating action concludes the rating reviews initiated on April 3, 2006. Standard & Poor's, on Dec. 6, 2006, 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. S&P said the outlook is positive. GLOBAL POWER: Wants Removal Period Extended Until March 27 ---------------------------------------------------------- Global Power Equipment Group and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to extend, until March 27, 2007, the period within which they can remove civil actions. The Debtors tell the Court that they are currently focusing on responding to information requests submitted by the Official Committee of Unsecured Creditors, preparing schedules of assets and liabilities and statements of financial affairs and other critical issues relating to its chapter 11 case. Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The Company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The Company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. The Official Committee of Unsecured Creditors appointed in the Debtors' cases has selected Landis Rath & Cobb LLP as its counsel. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to file a chapter 11 plan expires on Jan. 26, 2007. GLOBAL POWER: Wants to Reject Executory and Lease Contracts ----------------------------------------------------------- Global Power Equipment Group and its debtor-affiliates ask the U.S Bankruptcy Court for the District of Delaware for permission to reject executory contracts and unexpired leases of real property. The Debtors tell the Court that they experienced considerable losses from its Heat Recovery Steam Generation business and predict a future negative cash usage of approximately US$22 million for the completion of the business. Additionally, the Debtors concluded that the cost to complete the business will exceed any potential revenue and will generate a negative cash flow of approximately US$400,000. The Debtors also tell the Court that they will have no further use of the property covered by the lease after Dec. 31, 2006. Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The Company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The Company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. The Official Committee of Unsecured Creditors appointed in the Debtors' cases has selected Landis Rath & Cobb LLP as its counsel. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to file a chapter 11 plan expires on Jan. 26, 2007. =========== R U S S I A =========== DEBESSLOY AGRO-WORKS: Creditors Must File Claims by Feb. 9 ---------------------------------------------------------- Creditors OJSC Debessloy Agro-Works have until Feb. 9 to submit written proofs of claim to: D. Krutov, Insolvency Manager Office 804 v Svobody Str. 173 Izhevsk 426011 Udmurtiya Republic Russia The Arbitration Court of Udmurtiya Republic commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A71-16995/2005-G26. The Arbitration Court of Udmurtiya Republic is located at: Lomonosova Str. 5 Izhevsk 426004 Udmurtiya Republic Russia The Debtor can be reached at: OJSC Debessloy Agro-Works Androsova Str. 90 Debesy 427060 Udmurtiya republic Russia DOLINA CJSC: Creditors Must File Claims by Feb. 9 ------------------------------------------------- Creditors CJSC Agricultural Company Dolina have until Feb. 9 to submit written proofs of claim to: V. Siromolot, Insolvency Manager Post User Box 6 603022 N. Novgorod Region Russia The Arbitration Court of Ryazan Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A54-4717/2006 S6. The Arbitration Court of Ryazan Region is located at: Pochtovaya Str. 43/44 Ryazan Region Russia The Debtor can be reached at: CJSC Agricultural Company Dolina Gorkovo Str. 1 Kasimov Ryazan Region Russia FENIKS-COMPUTER CJSC: Creditors Must File Claims by Feb. 9 ---------------------------------------------------------- Creditors CJSC Company Feniks-Computer (TIN 2724050899) have until Feb. 9 to submit written proofs of claim to: A. Krylov, Insolvency Manager Office 9 Amurskiy Avenue 11 680028 Khabarovsk Region Russia Tel/Fax: 347-060 The Arbitration Court of Khabarovsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A73-11893/2006-36. The Debtor can be reached at: CJSC Company Feniks-Computer Office 103 Leningradskaya Str. 44 Khabarovsk Region Russia KANASHAKAYA CERAMICS: Bankruptcy Hearing Slated for March 27 ------------------------------------------------------------ The Arbitration Court of Chuvashiya Republic will convene at 1:15 p.m. on March 27 to hear the bankruptcy supervision procedure on LLC Kanashakaya Ceramics. The case is docketed under Case No. A79-9960/2006. The Temporary Insolvency Manager is: P. Dmitriev Post User Box 75 429333 Kanash Region Russia The Debtor can be reached at: LLC Kanashakaya Ceramics Ulyanovskoye Shosse Kanashskiy Region Chuvashiya Republic Russia ZARECHYE-2 CJSC: Bankruptcy Hearing Slated for Feb. 1 ----------------------------------------------------- The Arbitration Court of Chelyabinsk Region will convene on Feb. 1 to hear the bankruptcy supervision procedure on CJSC Zarechye-2. The case is docketed under Case No. A76-19010/ 2006-60-187. The Temporary Insolvency Manager is: T. Vysotskaya Office 704 Right wing Rossiyskaya Str. 279 454091 Chelyabinsk Region Russia The Arbitration Court of Chelyabinsk Region is located at: Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: CJSC Zarechye-2 Montazhnikov Str. 20 Ozersk 456780 Chelyabinsk Region Russia KHABAROVSKIY FACTORY: Assets Sale Slated for January 15 ------------------------------------------------------- Private Interpreter Shalamov M.A., the bidding organizer for CJSC Khabarovskiy Factory of Metal Constructions, will open a public auction for the company's properties at 10:00 a.m. on Jan. 15 at: CJSC Khabarovskiy Factory of Metal Constructions Assembly hall Perspektivnaya Str. 38 680018 Khabarovsk Region Russia Interested participants have until Jan. 12 to deposit an amount equivalent to 10% of the starting price to: CJSC Khabarovskiy Factory of Metal Constructions Dalnevostochnyj branch OJSC ACB Rosbank Settlement Account 40702810943200000008 BIK 040813783 Correspondent Account 3010181080000000783 Bidding documents must be submitted to: CJSC Khabarovskiy Factory of Metal Constructions Room 205 Perspektivnaya Str. 38 680018 Khabarovsk Region Russia The Debtor can be reached at: CJSC Khabarovskiy Factory of Metal Constructions Perspektivnaya Str. 38 680018 Khabarovsk Region Russia KUZBASS-TRADING-EQUIPMENT OJSC: Court Hearing Slated for Jan. 22 ---------------------------------------------------------------- The Arbitration Court of Kemerovo Region will convene on Jan. 22 to hear the bankruptcy supervision procedure on OJSC Kuzbass- Trading-Equipment (TIN 4209012277). The case is docketed under Case No. A 27-14385/2006-4. The Temporary Insolvency Manager is: V. Zimin Post User Box 886 650000 Kemerovo Region Russia The Arbitration Court of Kemerovo Region is located at: Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: OJSC Kuzbass-Trading-Equipment Shaturskaya Str. 2 650006 Kemerovo Region Russia NIZHEGOROD-TRANS-SERVICE: Creditors Must File Claims by Jan. 9 -------------------------------------------------------------- Creditors of CJSC Nizhegorod-Trans-Service have until Jan. 9 to submit written proofs of claim to: E. Shishkin, Insolvency Manager Sovetskaya Str. 55 Sergach Nizhniy Novgorod Region Russia The Arbitration Court of Nizhniy Novgorod Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43-29703/ 2006-27-900. The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: CJSC Nizhegorod-Trans-Service Chaadaeva Str. 17 Nizhniy Novgorod Region Russia RUSICH CJSC: Creditors Must File Claims by Feb. 9 ------------------------------------------------- Creditors CJSC Rusich (TIN 2727023893) have until Feb. 9 to submit written proofs of claim to: A. Krylov, Insolvency Manager Office 9 Amurskiy Avenue 11 680028 Khabarovsk Region Russia Tel/Fax: 347-060 The Arbitration Court of Khabarovsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A73-11877/2006-9. The Debtor can be reached at: CJSC Rusich Kirova Str. 2-101 Komsomolsk-na-Amure Khabarovsk Region Russia SATEK CJSC: Creditors Must File Claims by Feb. 9 ------------------------------------------------ Creditors of CJSC Satek have until Feb. 9 to submit written proofs of claim to: L. Lazareva Post User Box 48 693007 Yuzhno-Sakhalinsk 7 Russia The Arbitration Court of Sakhalin Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A59-4044/06-S4. The Arbitration Court of Sakhalin Region is located at: Kommunisticheskiy Pr. 24 693020 Yuzhno-Sakhalinsk Region Russia The Debtor can be reached at: CJSC Satek Okha Sakhalin Region Russia SIGMA-FOREST LLC: Creditors Must File Claims by Feb. 9 ------------------------------------------------------ Creditors of LLC Sigma-Forest (TIN 2720024150) have until Feb. 9 to submit written proofs of claim to: A. Krylov, Insolvency Manager Office 9 Amurskiy Avenue 11 680028 Khabarovsk Region Tel/Fax: 347-060 The Arbitration Court of Khabarovsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A73-11643/2006-36. The Debtor can be reached at: LLC Sigma-Forest Boyko-Pavlova Str. 6-13 Nekrasovka Khabarovsk region Russia SOYUZ-TRANS-OIL LLC: Creditors Must File Claims by Feb. 9 --------------------------------------------------------- Creditors LLC Soyuz-Trans-Oil (TIN 41010478794) have until Feb. 9 to submit written proofs of claim to: V. Silko, Insolvency Manager Office 402 Leningradskaya Str. 33a 683003 Petropavlovsk-Kamchatskiy Russia The Arbitration Court of Kamchatka Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A24-5489/06-05. The Debtor can be reached at: LLC Soyuz-Trans-Oil Ryabikova Str. 36A Petropavlovsk-Kamchatskiy Russia STROY-INVEST LLC: Moscow Bankruptcy Hearing Slated for April 10 --------------------------------------------------------------- The Arbitration Court of Moscow will convene at 11:00 a.m. on April 10 to hear the bankruptcy supervision procedure on LLC Stroy-Invest. The case is docketed under Case No. A40-63385/ 06-103-1101B. The Temporary Insolvency Manager is: O. Andreenko Office 215 Building 3 Petrovka Str. 26 127051 Moscow Region Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: LLC Stroy-Invest Room 1 Kashirskoye Shosse 115230 Moscow Region Russia TATARSKAYA FACTORY: Creditors Must File Claims by Feb. 9 -------------------------------------------------------- Creditors of CJSC Tatarskaya Factory of Fulled Goods have until Feb. 9 to submit written proofs of claim to: M. Groysman, Insolvency Manager Post User Box 69 630004 Novosibirsk Region Russia The Arbitration Court of Novosibirsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-16125/06-29/316. The Debtor can be reached at: CJSC Tatarskaya Factory of Fulled Goods Noskova Str. 27 Tatarsk Novosibirsk Region Russia TRAVEL AND ADVENTURE: Court Names R. Farrakhov to Manage Assets --------------------------------------------------------------- The Arbitration Court of Tatarstan Republic appointed Mr. R. Farrakhov as Insolvency Manager for CJSC Travel and Adventure Agency (TIN 1650047738). He can be reached at: R. Farrakhov Post User Box 97 Kazan 420094 Tatarstan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A65-20722/2006-SG4-39. The Arbitration Court of Tatarstan Republic is located at: Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Republic Russia The Debtor can be reached at: CJSC Travel and Adventure Agency Naberezhnye Chelny Tatarstan Republic Russia ===================== S W I T Z E R L A N D ===================== AUTOGARAGE ROSARI: Court Suspends Bankruptcy Proceedings -------------------------------------------------------- The Bankruptcy Court of Bern-Mittelland suspended the bankruptcy proceedings of LLC Autogarage Rosari on Dec. 9, 2006, 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, 2006, can be reached at: LLC Autogarage Rosari Freiburgstrasse 310 3018 Bern Switzerland The Bankruptcy Service of Bern-Mittelland can be reached at: Bankruptcy Service of Bern-Mittelland Administrative Department Bern 3011 Bern Switzerland CCSI COMPUTER: Bern-Mittelland Court Closes Bankruptcy Process -------------------------------------------------------------- The Bankruptcy Court of Bern-Mittelland entered Nov. 17, 2006, an order closing the bankruptcy proceedings of JSC CCSI Computer Clean Service Informatik. The Debtor can be reached at: JSC CCSI Computer Clean Service Informatik Kunoweg 37 3047 Bremgarten Aargau Switzerland The Bankruptcy Service of Bern-Mittelland can be reached at: Bankruptcy Service of Bern-Mittelland Administrative Department Bern 3011 Bern Switzerland EUROPEAN REINSURANCE: Seeks Chapter 15 Relief in S.D. New York -------------------------------------------------------------- Europaische Ruckversicherungs-Gesselschaft in Zurich (European Reinsurance Company of Zurich), through its court-appointed Scheme Manager Kevin McAtee, filed a petition pursuant to Chapter 15 of the United States Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York on Dec. 21, 2006. In its Chapter 15 petition, European Reinsurance seeks: a. recognition of the English Proceeding as a "foreign main proceeding" pending before the High Court of Justice of England and Wales; and b. injunctive relief that will give full force and effect to a Scheme of Arrangement in the United States. Chapter 15 of the U.S. Bankruptcy Court, which became effective Oct. 17, 2005, broadens the mechanism through which representatives of non-U.S. proceedings might obtain relief, including injunctive relief, in the United States, expands the powers of U.S. Bankruptcy Courts, and enhances the rights of both U.S. and non-U.S. creditors. English Proceeding The Debtor is subject to a collective proceeding currently pending before the English High Court, in accordance with a Solvent Scheme of Arrangement pursuant to Section 425 of the Companies Act 1985 between the company and its scheme creditors. RGM Pool European Reinsurance, a wholly owned subsidiary of Swiss Reinsurance Company, Zurich, conducts a portion of its business as a member of a pool of four companies that transacted insurance and reinsurance business from August 1963 until November 1966, including some multiyear policies as a result of which coverage may be extended until 1969. The business of the RGM Pool was written through the agency of Reinsurance Group Managers Limited. Other members of the Pool include: * Mercantile & General Reinsurance Company Limited * NRG Victory Reinsurance Limited * Guildhall Insurance Company Limited The RGM Pool ceased writing new business in November 1966 and currently is in run-off. The Pool is currently managed by PRO Insurance Solutions Limited as a run-off specialist. As of Dec. 31, 2006, European Reinsurance's balance sheet showed US$18.2 billion of total assets and US$17.2 billion of total liabilities. Scheme of Arrangement The proposed Scheme of Arrangement applies solely to European Reinsurance's portfolio of business written through the Pool. The Debtor commenced the English proceeding to obtain the English Court's approval of the Scheme of Arrangement. A scheme of arrangement becomes legally binding when: (a) a majority in number representing not less than 75% in value of creditors vote in favor of the scheme; (b) the court subsequently enters and order sanctioning the scheme of arrangement; and (c) a copy of that order is delivered to the registrar of companies for registration. The Debtor estimates about 3,200 potential scheme creditors with claims likely to vary widely. The Scheme establishes Dec. 31, 2006, as the Ascertain Date, which is the date as of which claims will be valued in accordance with the Scheme. The Debtor believes that a solvent scheme will be the most efficient method of making full payment to Scheme Creditors in the short practicable time. The Scheme provides for the appointment of: * PricewaterhouseCoopers LLP as Scheme Adviser to provide the Debtor with advice necessary to facilitate and implement the Scheme of Arrangement; and * PRO Insurance Solutions as Scheme Manager, who will have power to manage and control the business. Jennifer C. DeMarco, Esq., of Clifford Chance U.S. LLP, who represents the Debtor, tells the Court that the Scheme's primary objective is to conclude the run-off of the Scheme Business earlier than would be the case if the pre-Scheme of Arrangement run-off were to continue until all claims had materialized and been agreed upon and paid in the ordinary course. Mr. McAtee sought the relief as a requirement to give effect to the Scheme of Arrangement in the U.S. and to prevent the Scheme and the English Proceeding from being frustrated. EUROPEAN REINSURANCE: Chapter 15 Petition Summary ------------------------------------------------- Petitioner: Kevin McAtee Foreign Representative Debtor: Europaische Ruckversicherungs-Gesellschaft in Zurich aka European Reinsurance Company of Zurich Mythenquai 50/60 CH-8002 Zurich Switzerland Case No.: 06-13061 Type of Business: The company is a wholly owned subsidiary of Swiss Reinsurance Company, Zurich. See: http://www.rgmpool.com/ Chapter 15 Petition Date: December 21, 2006 Court: Southern District of New York (Manhattan) Judge: Robert E. Gerber Petitioner's Counsel: Jennifer C. DeMarco, Esq. Sara M. Tapinekis, Esq. Clifford Chance 31 West 52nd Street New York, NY 10019 Tel: (212) 878-8569 Fax: (212) 878-8375 Proposed Scheme Manager: PRO Insurance Solutions Ltd. Proposed Scheme Advisor: PricewaterhouseCoopers LLP Proposed Independent Adjudicator: George Maher Estimated Assets: More than US$100 Million Estimated Debts: More than US$100 Million HELLER TREUHAND: Basel-Stadt Court Starts Bankruptcy Proceedings ---------------------------------------------------------------- The Bankruptcy Court of Basel-Stadt commenced bankruptcy proceedings against LLC Heller Treuhand on Nov. 13, 2006. The Debtor can be reached at: LLC Heller Treuhand Paulusgasse 16 4051 Basel Basel-City Switzerland The Bankruptcy Service of Basel-Stadt can be reached at: Bankruptcy Service of Basel-Stadt 4051 Basel Basel-City Switzerland HOLWEST JSC: Court Suspends Bankruptcy Proceedings ---------------------------------------------------- The Bankruptcy Court of Bern-Mittelland suspended the bankruptcy proceedings of JSC Holwest on Dec. 9, 2006, 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 CHF8,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Sept. 12, 2006, can be reached at: JSC Holwest Schwarztorstrasse 18 3007 Bern Switzerland The Bankruptcy Service of Bern-Mittelland can be reached at: Bankruptcy Service of Bern-Mittelland Administrative Department Bern 3011 Bern Switzerland ICE HANDELS: St. Gallen Court Starts Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of St. Gallen commenced bankruptcy proceedings against JSC ICE Handels on Sept. 27, 2006. The Debtor can be reached at: JSC ICE Handels Giessenweg 1 9030 Abtwil Aargau Switzerland The Bankruptcy Service of St. Gallen can be reached at: Bankruptcy Service of St. Gallen Addolorata Tazza 9001 St. Gallen Switzerland LTL LOTUS: Basel-Stadt Court Suspends Bankruptcy Proceedings ------------------------------------------------------------ The Bankruptcy Court of Basel-Stadt suspended the bankruptcy proceedings of LTL Lotus Transport & Logistik, Schweiz on Dec. 16, 2006, 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 CHF9,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Oct. 31, 2006, can be reached at: LTL Lotus Transport & Logistik, Schweiz Munchensteinerstrasse 69 4018 Basel Basel-City Switzerland The Bankruptcy Service of Basel-Stadt can be reached at: Bankruptcy Service of Basel-Stadt 4051 Basel Basel-City Switzerland MADER TREUHAND: St. Gallen Court Suspends Bankruptcy Process ------------------------------------------------------------ The Bankruptcy Court of St. Gallen suspended the bankruptcy proceedings of LLC Mader Treuhand on Nov. 29, 2006, 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 CHF8,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Oct. 18, 2006, can be reached at: LLC Mader Treuhand Rickenstrasse 25 8737 Gommiswald St. Gallen Switzerland The Bankruptcy Service of St. Gallen can be reached at: Bankruptcy Service of St. Gallen Administrative Department Kaltbrunn Katharina Kuster 8722 Kaltbrunn St. Gallen Switzerland NEUE SCHULE: Court Suspends & Closes Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Service of St. Gallen has suspended and closed the bankruptcy proceedings of JSC Neue Schule Will due to a lack of funds. A liquidation process will be conducted according to the creditors' requirements at: JSC Neue Schule Will Dufourstrasse 4-6 9500 Will Switzerland The Bankruptcy Service of St. Gallen can be reached at: Bankruptcy Service of St. Gallen Administrative Department Oberuzwil Urs Ghirlanda 9242 Oberuzwil St. Gallen Switzerland SELTI ELEKTRONIK: Basel-Stadt Court Starts Bankruptcy Process ------------------------------------------------------------- The Bankruptcy Court of Basel-Stadt commenced bankruptcy proceedings against JSC Selti Elektronik on Aug. 28, 2006. The Debtor can be reached at: JSC Selti Elektronik Schutzenmattstrasse 2 4051 Basel Basel-City Switzerland The Bankruptcy Service of Basel-Stadt can be reached at: Bankruptcy Service of Basel-Stadt 4051 Basel Basel-City Switzerland TOP MALER: St. Gallen Court Starts Bankruptcy Proceedings --------------------------------------------------------- The Bankruptcy Court of St. Gallen commenced bankruptcy proceedings against LLC Top maler service on Oct. 9, 2006. The Debtor can be reached at: LLC Top maler service Stadtlistrasse 17 7320 Sargans St. Gallen Switzerland The Bankruptcy Service of St. Gallen can be reached at: Bankruptcy Service of St. Gallen Administrative Department Buchs Yves Beljean 9471 Buchs Aargau Switzerland ZIRKUS LILIPUT: Court Closes Bankruptcy Proceedings --------------------------------------------------- The Bankruptcy Court of Emmental-Oberaargau entered Nov. 16, 2006, an order closing the bankruptcy proceedings of LLC Zirkus Liliput. The Debtor can be reached at: LLC Zirkus Liliput Mange 4 4914 Roggwil BE Berne Switzerland The Bankruptcy Service of Emmental-Oberaargau can be reached at: Bankruptcy Service of Emmental-Oberaargau 4912 Aarwangen Berne Switzerland ============= U K R A I N E ============= CAREKONSTANTINOV MACHINE: Creditors Must File Claims by Jan. 13 --------------------------------------------------------------- Creditors of LLC Carekonstantinov Machine-Manufacturable Plant (code EDRPOU 25477542) have until Jan. 13 to submit written proofs of claim to: Sergey Vasilcov, Liquidator Pracy Avenue 33/55 Berdiansk 71118 Zaporozhje Region Ukraine Tel: 8(06153) 7-18-00 The Economic Court of Zaporozhje Region commenced bankruptcy proceeding against the company on Nov. 13, 2006, after finding it insolvent. The case is docketed under Case No. 25/144. The Economic Court of Zaporozhje Region is located at: Shaumiana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Carekonstantinov Machine-Manufacturable Plant Kuybyshevo, Illich Str. 127 71000 Zaporozhje Region Ukraine FERROCONCRETE ITEMS: Creditors of Must File Claims by January 13 ---------------------------------------------------------------- Creditors of Shevchenkovo Joint Enterprise Ferroconcrete Items Plant (code EDRPOU 05423708) have until Jan. 13 to submit written proofs of claim to: T. Chagovec, Liquidator Shakespeare Str. 10 61045 Kharkov Region Ukraine Tel: 773-01-30 The Economic Court of Kharkov Region commenced bankruptcy proceeding against the company on Dec. 4, 2006, after finding it insolvent. The case is docketed under Case No. B-39/170-06. The Economic Court of Kharkov Region is located at: Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Region Ukraine The Debtor can be reached at: Shevchenkovo Joint Enterprise Ferroconcrete Items Plant Pioneer Str. 84 Shevchenkovo Kharkov Region Ukraine GATNYANSKOE LLC: Claims Submission Deadline Set January 13 ---------------------------------------------------------- The Economic Court of Hmelnitskiy Region commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 17/240-B. Creditors of Agricultural LLC Gatnyanskoe (code EDRPOU 03788069) have until Jan. 13 to submit written proofs of claim to: Vladimir Bilyk, Temporary Insolvency Manager Popov Str. 15 Starokonstantinov 50051 Hmelnitskiy Region Ukraine The Economic Court of Hmelnitskij Region is located at: Nezalezhnosti Square 1 29000 Hmelnitskij Region Ukraine The Debtor can be reached at: Agricultural LLC Gatnyanskoe Gatna Derazhnya District 32200 Hmelnitskiy Region Ukraine GETMAN LLC: Deadline for Submission of Claims Set January 17 ------------------------------------------------------------ Creditors of LLC Getman (code EDRPOU 24735976) have until Jan. 17 to submit written proofs of claim to: Sergey Kicul, Temporary Insolvency Manager Liskovskaya Str. 28 02097 Kyiv Region Ukraine Tel: 205-32-99. The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on the company on Nov. 24, 2006. The case is docketed under Case No. 15/777-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Getman Ohtyrskiy Lane 7 Kyiv Region Ukraine KARLOVKA AGRICULTURE: Creditors of Must File Claims by Jan. 17 -------------------------------------------------------------- The Economic Court of Poltava Region commenced bankruptcy proceeding against the company on Nov. 12, 2006, after finding it insolvent. The case is docketed under Case No. 8/23-7/61. Creditors of OJSC Karlovka Agriculture Chemistry (code EDRPOU 05487030) have until Jan. 17, to submit written proofs of claim to: Ivan Gricenko, Liquidator St. Kondratenko Str. 6 36009 Poltava Region Ukraine The Economic Court of Poltava Region is located at: Zigina Str. 1 36000 Poltava Region Ukraine The Debtor can be reached at: OJSC Karlovka Agriculture Chemistry Sverdlov 9 Karlovka 39400 Poltava Region Ukraine SHABELNIKI LLC: Claims Bar Date Slated for January 13 ----------------------------------------------------- Creditors of Agricultural LLC Shabelniki (code EDRPOU 31718314) have until Jan. 13 to submit written proofs of claim to: Gorbach Sergey, Temporary Insolvency Manager p.o.b. 45 Ukrainka 08720 Kiev Region Ukraine The Economic Court of Cherkassy Region commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 01/5550. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: Agricultural LLC Shabelniki Shabelniki Zolotonosha District Cherkassy Region Ukraine STARK LLC: Creditors of Must File Claims by January 17 ------------------------------------------------------ Creditors of LLC Stark (code EDRPOU 30896105) have until Jan. 17 to submit written proofs of claim to: LLC BVA Group, Liquidator Gorkiy Str. 25-b 01004 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Nov. 30, 2006, after finding it insolvent. The case is docketed under Case No. 319/11b-06. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Stark Industrialnaya Str. 5 Kalinovka Vasilkov District Kyiv Region Ukraine UKRSOTSBANK: Moody's Puts Local Currency Deposit Rating at Ba1 -------------------------------------------------------------- Moody's assigned these ratings to Ukrsotsbank: -- Ba1 long-term local currency deposit rating (on review for possible upgrade); -- Not Prime short-term local currency deposit rating (on review for possible upgrade); and -- Aa1.ua long-term national scale rating (on review for possible upgrade). According to Moody's, the Ba1/NP global scale local currency ratings reflect global default and loss expectation and is not constrained by any foreign currency transfer risk, while the Aa1.ua national scale rating reflects the standing of the bank's credit quality relative to its domestic peers. The ratings reflect the bank's strong market positioning as Ukraine's fifth-largest bank by total assets, its extensive territorial coverage, growing emphasis on retail lending, strengthening financial fundamentals and improving asset quality. The ratings also incorporate difficulties associated with potentially volatile economic and political environment in Ukraine, significant - albeit improving - single-party concentrations on both sides of the balance sheet, the unseasoned nature of the bank's rapidly growing retail portfolio and tightening liquidity. The ratings are on review for possible upgrade as Italian Banca Intesa is in the process of acquiring the controlling stake in Ukrsotsbank. In addition to these ratings, Ukrsotsbank already has these ratings by Moody's: -- B2 long-term foreign currency deposit rating (Positive Outlook) -- Not prime short-term foreign currency deposit rating -- Ba1 senior unsecured domestic currency debt rating (on review for possible upgrade) -- D- Financial Strength Rating (Positive Outlook) Moody's also assigned Ba1 (on review for upgrade) Global Scale Rating and Aa1.ua (on review for possible upgrade) National Scale rating to the local currency bonds to be issued by Ukrsotsbank which will represent a senior unsecured claim on the bank. The ratings do not reflect any transfer risk and are therefore neither constrained by the B2 (positive outlook) foreign currency deposit ceiling for Ukraine, nor directly comparable with the published foreign currency ratings of other Ukrainian financial institutions. The planned debt issue size is UAH500 million (around US$100 million), distributing quarterly coupons with an issue date of Feb. 19, 2007 and redemption date of Feb. 13, 2012. The obligations associated with this debt issue include put options that the bondholders will, according to the terms of the issue, be able to exercise in order to sell the bonds back to the bank at par on the sixth and fourteens coupon payment dates and during the three working days following these dates. Moody's notes that if the bank's credit quality were to have deteriorated at these times, exercise of the put options might exert additional pressure on the bank's financial condition. Headquartered in Kiev, Ukraine, Ukrsotsbank reported total consolidated assets of UAH12.5 billion (US$2.5 billion) at June 30, 2006. ZLATOKRAY CORP: Creditors of Must File Claims by January 13 ----------------------------------------------------------- Creditors of Agroindustrial Corporation Zlatokray (code EDRPOU 21377795) have until Jan. 13 to submit written proofs of claim to: Pension Fund Department of Ukraine in Zolotonosha District, Liquidator Shevchenko Str. 68-a Zolotonosha 19700 Cherkassy Region Ukraine The Economic Court of Cherkassy Region commenced bankruptcy proceeding against the company on Nov. 16, 2006, after finding it insolvent. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: Agroindustrial Corporation Zlatokray Shevchenko Str. 202 New Dmitrievka Zolotonosha District Cherkassy Region Ukraine =========================== U N I T E D K I N G D O M =========================== BARWOOD PRODUCTS: Names Tenon Recovery as Joint Administrators -------------------------------------------------------------- Patrick Ellward and Dilip Dattani of Tenon Recovery were appointed joint administrators of Barwood Products Ltd. (Company Number 05116100) on Dec. 12. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Barwood Products Ltd. can be reached at: Central Works Curzon St. Burton-on-Trent Staffordshire DE14 2DH United Kingdom Tel: 012 8351 6526 Fax: 012 8351 7597 Web: http://www.barwoodproducts.com/ BRIDGEN ENTERPRISES: Taps Administrators from Smith & Williamson ---------------------------------------------------------------- Anthony Murphy, Roger Tulloch and Robert Horton of Smith & Williamson were appointed joint administrators of Bridgen Enterprises Ltd. (Company Number 3154006) on Dec. 12. 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. Bridgen Enterprises Ltd. can be reached at: 10 16 Byron Road Wealdstone Harrow Middlesex HA3 7ST United Kingdom Tel: 020 8427 0339 Fax: 020 8424 0604 COLLINS & AIKMAN: Inks Fifth Amendment of DIP Loan with JPMorgan ---------------------------------------------------------------- Collins & Aikman Corp. and its debtor-affiliates obtained authority from the U.S. Bankruptcy Court for the Eastern District of Michigan to enter into a fifth amendment to the Amended and Restated Revolving Credit, Term Loan, and Guaranty Agreement, dated as of July 28, 2005, with JPMorgan Chase Bank, N.A., as administrative agent. Marc J. Carmel, Esq., at Kirkland & Ellis LLP, in New York states that the Fifth Amendment is expected to provide JPMorgan, and each of the other financial institutions, consent to the Customer Agreement and the transactions contemplated in it. The approval of the Fifth Amendment on an expedited basis will also ensure that the Debtors are able to, among other things, receive the benefits of the Customer Agreement and avoid the risks of not having the Customer Agreement while remaining in full compliance with the DIP Credit Agreement, Mr. Carmel says. The Fifth Amendment is necessary to permit the Debtors to engage in certain other transactions currently restricted by the DIP Credit Agreement, modify provisions governing the sharing of proceeds received by the Debtors from certain transactions and increase the Debtors' ability to sell, dispose of and transfer certain assets, Mr. Carmel adds. Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 48; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) EASTMAN KODAK: Inks Agreements with Sony; Ends Patent Dispute ------------------------------------------------------------- Eastman Kodak Co. has entered a cross-licensing agreement with Sony Corp., ending a long-standing patent dispute over digital- camera inventions since 1987, The Associated Press reports. According to the source, Eastman Kodak also signed a cross- license deal with Sony Ericsson Mobile Communications AB, a joint venture of Sweden's LM Ericsson and Sony. AP says that the financial terms of the contracts were not revealed but the deals were royalty bearing to Kodak. Kodak spokesman David Lanzillo told AP that ending the patent litigation and entering into cross-license agreement would allow each company broad access to each other's patent portfolio. Patent Dispute AP relates that in March 2004, Kodak filed a lawsuit against Tokyo-based Sony and two U.S. subsidiaries, Sony Corp. of America and Sony Electronics Inc., alleging that Sony infringed on 10 patents for digital camera inventions issued from 1987 to 2003 including digital and video tools such as image compression and digital storage. Three weeks later, Sony countersued Kodak claiming that Kodak violated 10 patents covering digital camera features, from an indicator that displays the number of pictures taken to an electronic shutter with adjustable speeds, AP adds. 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-Europe 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. FORD MOTOR: US December Sales Down 13%; Full 2006 Sales Down 8% --------------------------------------------------------------- Ford Motor Company's dealers delivered 233,621 new vehicles to U.S. customers in December, down 13% compared with a year ago. Lower F-Series sales (down 21% compared with last December's near-record month) and lower sales for the discontinued Taurus and Freestar minivan more than accounted for the decline. Full year sales totaled 2.9 million, down 8% compared with full year 2005. Car sales were 5% higher than a year ago. It was the second year in a row of higher car sales and the first back- to-back increase since 1993-1994. Ford's new mid-size sedans were the major factors behind the increase as combined sales for the Ford Fusion, Mercury Milan, and Lincoln MKZ totaled 211,469. Awareness and demand for these award-winning products continues to grow. In December, Fusion sales were up 67%, Milan sales were up 36%, and MKZ sales were up 78%. MKZ sales of 3,795 were the highest for any month. Full year truck sales were down 14% as higher gasoline prices and long-term demographic trends drove SUV sales lower and a soft housing industry weighed on full-size truck sales. Ford believes these factors will continue to weigh on these segments in 2007. New products should help mitigate these factors. The company's new full-size SUVs, Ford Expedition and Lincoln Navigator, closed 2006 by posting higher sales each month in the fourth quarter. The company will soon introduce a new Super Duty F-Series pickup truck. This model accounts for about 40% of total F-Series sales. Conversely, passenger car sales and crossover utility vehicles should continue to benefit from demographic trends (notably the aging of the baby boomer generation) and higher gasoline prices. In December, the company expanded its CUV line with the introduction of the Ford Edge and Lincoln MKX. In addition, the company will introduce a redesigned Ford Escape and Mercury Mariner early this year. Escape has been the best-selling CUV since it was introduced in late 2000. Land Rover was the company's only brand to post higher sales in 2006. Land Rover's full year sales totaled 47,774 -- a new calendar year sales record. Although Lincoln's overall sales were down 2%, sales to individual retail customers rose 4%. U.S. Inventories Lower At the end of December, Ford, Lincoln and Mercury inventories were estimated at 590,000 units. This level is 143,000 units lower than a year ago. The company estimates less than 10% of the total inventory is 2006 models. About Ford Motor Co. 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. * * * As reported in the Troubled Company Reporter-Europe on Dec. 13, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. after the company increased the size of its proposed senior secured credit facilities to between US$17.5 billion and US$18.5 billion, up from US$15 billion. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of both the secured facilities and the senior unsecured convertible notes being offered. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3 billion of senior convertible notes due 2036. GENERAL MOTORS: US December Sales Down 9.6%; 2006 Sales Down 9% --------------------------------------------------------------- General Motors Corp. dealers in the United States delivered 341,327 vehicles in December, an increase of 10% (43,771) compared with November, but a reduction of 9.6% on a sales-day adjusted basis compared with a strong year-ago December. GM's total annual U.S. sales of 4.1 million vehicles in 2006 were down 9% compared with last year's 4.5 million, due to planned reductions in daily rental and other marginally profitable sales. "December was a very solid sales month for GM, exceeding our expectations, especially in full-size trucks and SUVs," said Mark LaNeve, vice president, GM North American Sales, Service and Marketing. "In 2006, despite challenging conditions, we stuck to the game plan and achieved our stated goals in support of Rick Wagoner's turnaround plan for North America. "Specifically, we exceeded 3 million retail sales and stabilized market share, improved residual values and transaction prices, lowered daily rental sales, and we accomplished all of this while being the only major manufacturer to substantially lower incentive spending (down US$700). "For 2007, we'll continue our plans to stabilize retail volume, improve our mix, reduce sales to the daily rental market, exercise strategic and tactical incentive programs and strengthen average transaction prices. "We will continue to provide customers with the best coverage in the industry, including our 5 year/100,000 mile limited powertrain warranty with roadside assistance and courtesy transportation. "As we move to the next phase of the turnaround plan, we plan to win by offering our customers the best products with industry- leading value and dealer service," Mr. LaNeve added. "So we are optimistic as we introduce exceptional new vehicles - - such as the GMC Acadia and Sierra, Saturn Aura and Outlook, Buick Enclave, Chevrolet Silverado and the all-new Cadillac CTS." December sales were up 10% compared with November, driven by a surge in full-size trucks that offer outstanding fuel economy and value. Highlights include: * Best sales month of the year for Cadillac (22,715 vehicles) with a 65% increase in truck sales compared with December 2005, * Saturn total December sales up 42% * Saab total and retail sales were up 33% * Saturn and Saab saw car sales increases, and total GM car sales in December were up 2% on a sales-day adjusted basis. For calendar year 2006, GM noted several significant achievements that point to strong consumer acceptance of its new products: * including the GMC Sierra, GMC Canyon and Chevrolet Colorado, GM sold more than a million pickup trucks in 2006. GM moved the much-anticipated launch of the all-new full size 2007 Chevrolet Silverado and GMC Sierra pickup trucks ahead 13 weeks. * sales of the Chevrolet Equinox and HHR, Pontiac Torrent and Saturn VUE drove GM's small utility and crossover sales up 27% in 2006, with 346,952 total deliveries. * HUMMER had a record sales year with 71,524 deliveries, up 26%. H3 sales were up 63%, to 54,052 deliveries, compared with 2005. * Saturn sales for 2006 totaled a record 226,375 vehicles, a 6% increase on a sales-day adjusted basis compared with 2005. The Aura, Sky and VUE led this improvement. The new Saturn Outlook crossover is being launched now. * Pontiac G6 had a 26% sales increase in 2006, compared with 2005. Chevrolet Impala sales were up 18%, with 289,868 vehicles sold. Chevrolet HHR sold 101,298 vehicles and Buick Lucerne sold 96,515 vehicles in 2006, each building on their launch momentum. As GM executes the North America turnaround plan, much media attention has focused on the sales races between GM and its competitors. "We are obviously competing in a fiercely contested global marketplace," Mr. LaNeve said. "We're optimistic that our newest generation of products will continue to drive revenue growth and brand image." Certified Used Vehicles December 2006 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 41,800 units, down nearly 6% from last December. GM Certified Used Vehicles, the industry's top selling certified brand, posted December sales of 35,774 units, down 8%. Cadillac Certified Pre-Owned Vehicles posted strong December sales of 3,948 units, up 18%. Saturn Certified Pre-Owned Vehicles sold 1,341 units in December, down nearly 18%. Saab Certified Pre- Owned Vehicles sold 607 units, up 9%, and HUMMER Certified Pre- Owned Vehicles sold 130 units. Total 2006 sales for all certified GM brands were 520,189 units, down 2% from last year's total. Annual sales for GM Certified Used Vehicles, the industry's top-selling manufacturer-certified brand, were 449,461 units, down 1% from its category record sales results in 2005, while Chevrolet again finished the year as the industry's top-selling single-make certified used vehicle brand. Cadillac Certified Pre-Owned finished 2006 with sales of 42,143 units, up 9% over the previous year. Saab Certified Pre-Owned Vehicles sold 8,330 units in 2006, down nearly 4%, while Saturn Certified Pre-Owned Vehicles sold 19,244 units, down 35%. HUMMER Certified Pre-Owned Vehicles sold 1,011 units in its first year of operation. "Cadillac Certified Pre-Owned Vehicles posted another strong month, with December sales of 3,948 units, up 18% from last December, and total annual 2006 sales up 9% from 2005," Mr. LaNeve said. "GM Certified Used Vehicles finished 2006 as the industry's top- selling certified brand for the fifth consecutive year, while Chevrolet ranked as the top-selling single-line make certified used vehicle brand. Certified GM brands, including GM Certified Used Vehicles, Cadillac, Saturn, Saab and HUMMER Pre-Owned Vehicles, again led all manufacturers with total 2006 sales of 520,189 units." GM North America Reports December and 2006 Fourth-Quarter Production In December, GM North America produced 319,000 vehicles (125,000 cars and 194,000 trucks). This is down 42,000 vehicles or 12% compared to December 2005 when the region produced 361,000 vehicles (139,000 cars and 222,000 trucks). (Production totals include joint venture production of 16,000 vehicles in December 2006 and 24,000 vehicles in December 2005.) Also, GM North America built 1.107 million vehicles (447,000 cars and 660,000 trucks) in the fourth quarter of 2006. This is down 174,000 vehicles or 14% compared to the fourth quarter of 2005 when the region produced 1.281 million vehicles (483,000 cars and 798,000 trucks). Additionally, the region's 2007 first-quarter production forecast is revised at 1.120 million vehicles (455,000 cars and 665,000 trucks), down 20,000 vehicles from last month's guidance. The majority of the production decrease is attributed to GM's ongoing efforts to reduce low-margin daily rental fleet sales. The remainder of the cuts is attributed to shifting production to the company's new full-size pickups and the ongoing management of inventories. 2006 Revised Fourth Quarter and 2007 First Quarter Production forecasts GM Europe The region's 2006 fourth-quarter production forecast is revised at 443,000 vehicles. This is down 2,000 vehicles compared with last month's guidance. In the fourth quarter of 2005 the region built 443,000 vehicles. The region's 2007 first-quarter production forecast remains unchanged at 508,000 vehicles. In the first quarter of 2006 the region built 494,000 vehicles. GM Asia Pacific GM Asia Pacific's 2006 fourth-quarter production forecast is revised at 507,000 vehicles, up 3,000 vehicles from last month's guidance. In the fourth quarter of 2005 the region built 420,000 vehicles. The region's 2007 first-quarter production forecast is revised at 531,000 vehicles, down 8,000 vehicles from last month's guidance. In the first quarter of 2006 the region built 472,000 vehicles. GM Latin America, Africa, and the Middle East The region's 2006 fourth-quarter production estimate is revised at 216,000 vehicles, up 1,000 vehicles from last month's guidance. In the fourth quarter of 2005 the region built 188,000 vehicles. The region's 2007 first-quarter production forecast remains unchanged at 214,000 vehicles. In the first quarter of 2006, the region built 194,000 vehicles. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader since 1931. Founded in 1908, GM employs about 327,000 people around the world. It has manufacturing operations in 33 countries and its vehicles are sold in 200 countries. GM sells cars and trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * 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. INCO LIMITED: Shareholders Approve Merger with Itabira Canada ------------------------------------------------------------- At a special meeting held on Jan. 3, 2007, in Toronto, Canada, shareholders of Inco Limited overwhelmingly approved the amalgamation of Inco with Itabira Canada Inc., a wholly owned indirect subsidiary of Companhia Vale do Rio Doce. Pursuant to the amalgamation, Inco will become a wholly owned indirect subsidiary of CVRD and change its name to "CVRD Inco Limited". Inco and Itabira Canada intend to file articles of amalgamation, which became effective on Jan. 4, 2007. Upon the amalgamation, shareholders of Inco (other than dissenting shareholders and Itabira Canada) will receive, for each Inco common share held by them, one Class A redeemable preferred share of CVRD Inco. As soon as practicable following the amalgamation, each such Class A redeemable preferred share of CVRD Inco will be redeemed for CDN$86.00 in cash. An application has been made for the de-listing of Inco's shares from the Toronto Stock Exchange. Inco expects to suspend its reporting obligations with the U.S. Securities and Exchange Commission effective Jan. 5, 2007, and is applying to cease to be a reporting issuer under Canadian securities laws. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. NEWCASTLE INTL: S&P Cuts Rating to BB on Weak Financial Profile --------------------------------------------------------------- (jade) Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on U.K.-based airport operator Newcastle International Airport Ltd. (NIA), and its parent company, NIAL Holdings PLC, to 'BB' from 'BBB+', and removed them from CreditWatch, where they had been placed with negative implications on Aug. 31, 2006. The ratings were withdrawn at the request of NIA's management, and consequently the company is no longer subject to surveillance by Standard & Poor's. The ratings were placed on CreditWatch in August 2006, reflecting a potential weakening of NIA's financial profile in view of a proposed capital restructuring at the company. The downgrade reflects confirmation by the company that the restructuring has been achieved and the outstanding funds under a GBP85-million senior unsecured bond issue have been prepaid in full. PAULO OGIANNI: Brings In Administrators from Mazars LLP ------------------------------------------------------- Robert Adamson and Paul Charlton of Mazars LLP were appointed joint administrators of Paulo Ogianni (Barrow) Ltd. (Company Number 03021216) and Paulo Ogianni (Kendal) Ltd. (Company Number 02832769) on Dec. 14, 2006. Mazars -- http://www.mazars.com/-- provides audit, accounting, tax and advisory services. Paulo Ogianni (Barrow) Ltd. can be reached at: 11 Horniman Grange 66 London Road London SE23 3HQ United Kingdom Tel: 02086994460 REFCO INC: Wants PlusFunds' US$532 Million Claims Disallowed ------------------------------------------------------------ Refco Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to disallow and expunge Claim Nos. 11288 and 11290 through 11311 filed by PlusFunds Group, Inc. J. Gregory St. Clair, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, tells Judge Drain that the PlusFunds Claims assert identical claims against each of the Debtors' estates arising from the decline in value of PlusFunds' assets under management. PlusFunds was the investment manager for SPhinX Managed Futures Fund SPC. PlusFunds organized SPhinX in the Cayman Islands as a segregated portfolio company on June 6, 2002. SPhinX was subsequently expanded to include 15 additional segregated portfolio companies. Refco Inc. served as a clearing broker and futures commission merchant for investment vehicles and funds advised by PlusFunds, including SPhinX. Mr. St. Clair relates that in October 2005, SPhinX caused Refco Capital Markets, Ltd., to preferentially transfer US$312,046,266 in cash to SPhinX's segregated accounts at Refco LLC, thereby moving away substantially all of SPhinX's invested cash. The Preference Cash was transferred from Refco, LLC, to Lehman Brothers' accounts. Following the transfer, Refco announced that the liquidity within RCM was no longer sufficient to accommodate client withdrawals, and imposed a 15-day moratorium on withdrawals from RCM accounts. The Official Committee of Unsecured Creditors, in December 2005, initiated an adversary proceeding on behalf of RCM seeking avoidance and recovery of the preferential transfer made by RCM to SPhinX. The Bankruptcy Court entered a temporary restraining order freezing and attaching SPhinX's assets in an amount equal to the Preference Cash. The Committee and SPhinX settled the SPhinX Avoidance Action on April 26, 2006. The SPhinX Settlement provided for the payment of US$263,000,000 to RCM. The Settlement is now pending on appeal before the U.S. District Court for the Southern District of New York. Mr. St. Clair notes that each of the PlusFunds Claims asserts entitlement to "not less than" US$532,046,266, or an amount precisely equal to the Preference Cash plus (i) an "enterprise value" of PlusFunds equal to US$220,000,000; and (ii) unliquidated damages in an amount "to be determined at trial". PlusFunds alleges that Refco's "wrongdoing" was the actual and proximate cause of: (i) PlusFunds' loss of its US$220,000,000 enterprise value; (ii) the amount for which PlusFunds may be liable to SphinX and its investors arising from the SPhinX Avoidance Action; and (iii) the loss of any management fee which PlusFunds would have earned if its business had not collapsed. PlusFunds also asserts additional unliquidated claims, including for punitive damages, alleged breach of contract, breach of fiduciary duty, and similar causes of action, including aiding and abetting and conspiracy to commit those torts, Mr. St. Clair adds. The Debtors want the Claims disallowed because: -- PlusFunds failed to articulate any facts that could serve as the basis for an alleged breach of a contractual obligation or common law duty by the Debtors; -- PlusFunds failed as a matter of law to state claims on which relief can be granted; -- the Claims are lacking in specificity as to be virtually meaningless and, accordingly, are so facially defective as to warrant a zero recovery. Mr. St. Clair contends that PlusFunds does not satisfy the requirements under New York law to plead a prima facie case of fraud. Moreover, PlusFunds' general allegations of breach of contract, breach of fiduciary duty, aiding, abetting, and conspiracy are similarly unsubstantiated, Mr. St. Clair argues. To receive the benefit of prima facie validity, a "proof of claim must set forth facts necessary to support the claim," he explains. In the event that the Court does not enter an order disallowing and expunging the Claims, the Debtors ask Judge Drain to estimate the Claims at US$0 to facilitate timely distributions under the Debtors' Chapter 11 Plan. About Refco Inc. Headquartered in New York City, Refco Inc. (OTC: RFXCQ) -- 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. 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). (Refco Bankruptcy News, Issue No. 52; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries, along with Marc S. Kirschner, the Chapter 11 Trustee for the estate of Refco Capital Markets, Ltd., delivered a Chapter 11 plan of reorganization and accompanying Disclosure Statement to the Court. On Oct. 10, 2006, the Debtors filed an Amended Plan and Disclosure Statement and on Oct. 13, filed a Modified Amended Disclosure Statement. On Oct. 16, 2006, the Court gave its tentative approval on the Disclosure Statement and the Court Clerk entered an order on Oct. 20, 2006. On Dec. 15, the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates LLC, was confirmed by the Court. That Plan became effective on Dec. 26, 2007. REFCO INC: Equity Committee Wins US$1.2 Million in Court Battle --------------------------------------------------------------- The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan approved the request of Refco Inc. and its debtor-affiliates' Ad Hoc Equity Committee to collect US$1.2 million in legal fees and expenses from the company, The Associated Press reports. Owing about 30% of the company's stock, the committee includes: -- King Street Capital Management LLC; -- QVT Financial LP; -- JMB Capital Partners LP; -- Mason Capital Management; -- Smith Management LLC; and -- Triage Management LLC According to AP, the reimbursement contains US$1.15 million in professional fees, US$132,032 in expert-witness expenses and assorted other fees accrued during a legal action in which the hedge funds won the right to 3% to 15% of two trusts in the Debtors' cases. The two trusts were the Litigation Trust and the Private Action Trust. As published in the TCR-Europe, the Chapter 11 plan of the Debtor and certain of its Direct and Indirect Subsidiaries, including Refco Capital Markets, Ltd. and Refco F/X Associates, LLC, became effective on Dec. 26, 2007. The effective date of the plan now permits the companies to complete an expeditious orderly wind-up of their businesses. The Equity Committee reportedly said that it deserved for reimbursement because it helped secure for most Refco stockholders the right to receive proceeds of the two trusts. AP says that specifically, any equity holder would get a: -- 3% pro rata share of the first US$500 million; -- 7.5% of recoveries between US$500 million and US$1 billion; and -- 15% of recoveries over US$1 billion. Citing Paul Silverstein, Esq., a Andrews Kurth LLP partner, AP relates that he it would take time to estimate how much those trusts would be worth and couldn't give a timeline for any resolution. The Equity group, AP states, considered the effort successful. "With more than US$2 billion in claims filed against the parent estates that, if allowed, would be payable before equity receives a distribution, and given the almost US$2 billion aggregate creditor shortfall, this was a truly remarkable achievement," said the Committee. About Refco Inc. Headquartered in New York City, Refco Inc. (OTC: RFXCQ) -- 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. 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). (Refco Bankruptcy News, Issue No. 50; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries, along with Marc S. Kirschner, the Chapter 11 Trustee for the estate of Refco Capital Markets, Ltd., delivered a Chapter 11 plan of reorganization and accompanying Disclosure Statement to the Court. On Oct. 10, 2006, the Debtors filed an Amended Plan and Disclosure Statement and on Oct. 13, filed a Modified Amended Disclosure Statement. On Oct. 16, 2006, the Court gave its tentative approval on the Disclosure Statement and the Court Clerk entered an order on Oct. 20, 2006. On Dec. 15, the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates LLC, was confirmed by the Court. That Plan became effective on Dec. 26, 2007. SENTRA EUROPE: Brings In Menzies to Administer Assets ----------------------------------------------------- Andrew Gordon Stoneman and Paul John Clark of Menzies Corporate Restructuring were appointed joint administrators of Sentra Europe Ltd. (Company Number 05753699) on Dec. 13, 2006. 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. Sentra Europe Ltd. can be reached at: 9 Bryngwyn Street Bed was Caerphilly Mid Glamorgan CF83 8BA United Kingdom Tel: 029 2088 5392 SILOCARE LIMITED: Names Andrew James Nichols as Administrator ------------------------------------------------------------- Andrew James Nichols of Redman Nichols was named administrator of Silocare Ltd. (Company Number 02548020) on Dec. 4, 2006. The administrator can be reached at: Andrew James Nichols Redman Nichols Maclaren House Skerne Road Driffield East Yorkshire YO25 6PN United Kingdom Tel: 01377 257788 Fax: 01377 249119 E-mail: andrew.nichols@redman-nichols.co.uk Silocare Ltd. can be reached at: Blyborough Gainsborough Lincolnshire DN21 4EL United Kingdom Tel: 01427668061 SPECIALIZED CLADDING: Appoints David Hill to Administer Assets -------------------------------------------------------------- David Hill of Begbies Traynor was appointed administrator of Specialized Cladding Services Ltd. (Company Number 4249108) on Nov. 28, 2006. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Specialized Cladding Services Ltd. can be reached at: Unit 1 Tair Onen Workshop Taironen Cowbridge South Glamorgan CF71 7UA United Kingdom Tel: 01446781990 STAGGER INN: Appoints Joint Administrators from Mazars LLP ---------------------------------------------------------- Robert Adamson and Paul Charlton of Mazars LLP were appointed joint administrators of The Stagger Inn (Stainton) Ltd. (Company Number 03756550) on Dec. 14, 2006. Mazars -- http://www.mazars.com/-- provides audit, accounting, tax and advisory services. The Stagger Inn (Stainton) Ltd. can be reached at: Long Lane Stainton with Adgarley Barrow-in-Furness Cumbria LA13 0NN United Kingdom Tel: 01229 462 504 WATCHBELL LIMITED: Taps KPMG LLP to Administer Assets ----------------------------------------------------- Richard John Hill and Paul Andrew Flint of KPMG LLP were appointed joint administrators of Watchbell Ltd. (Company Number 3338679) on Dec. 15, 2006. KPMG LLP -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the U.K. providing audit, tax and advisory services. Headquartered in Bristol, England, Watchbell Ltd. manufactures food products. * BOOK REVIEW: Learning Leadership: The Abuse of Power in Organizations --------------------------------------------------------- Author: Abraham Zaleznik Publisher: Beard Books Paperback: 552 pages List Price: US$34.95 Order your personal copy at: http://www.amazon.com/exec/obidos/ASIN/158798282X/internetbankrupt The lesson in Learning Leadership -- The Abuse of Power in Organizations is to "use power so that substance leads process." This is done, says the author, by keeping the "content of work at the center of communication." The premise of this intriguing book is that many managers, executives, and other business leaders allow "forms of communication [to become] the center of work." As a result, misguided and counterproductive leadership and management practices have settled into many organizations. A culprit is the popular "how-to" leadership manuals that offer simple, superficial principles that only skim the surface of leadership. Zaleznik argues that the primary way to get work done is to put aside personal agendas and deal directly with those who are involved in the work. With this emphasis on substance over process, the concept of leadership lies not in techniques, but personal qualities. The essential personal qualities of leadership are captured by the "three C's" of competence, character, and compassion. The author then delves more deeply into each of these C's. We learn, for example, that the three C's are not learned skills. Competence entails "building one's power base on talent." Character and compassion are the two other qualities of a leader that must be present before there is any talk about methods of operation, lines of communication, definition of goals, structure of a team, and the like. There is more to character that the common definition of the "quality of the person." Character also embraces, says the author, the "code of ethics that prevents the corruption of power." Compassion is defined as a "commitment to use power for the benefit of others, where greed has no place." This concept of a good leader is not idealized or unrealistic. It takes into account human nature and the troubling behavior of many leaders. Of course, any position of leadership brings with it temptations and the potential to abuse power. Effective leaders are those who "take responsibility for [their] own neurotic proclivities," says the author. They do this out of a sense of the true purpose of leadership, which is communal benefit. The power holder will "avoid the treacheries of an unreasonable sense of guilt, while recognizing the omnipresence of unconscious motivation." Mr. Zaleznik's definition of the essentials of leadership comes from his study of notable (and sometime notorious) leaders. Some tales are cautionary. The Fashion Shoe Company illustrates the problems that can occur when a leader allows action to overcome thought. The Brandon Corporation illustrates the opposite leadership failing -- allowing thought to inhibit action. Taken together, the two examples suggest that balance is needed for good leadership. Andrew Carnegie exemplifies the struggle between charisma and guilt that affects some leaders. Frederick Winslow Taylor is seen by the author as an obsessed leader. From his behavior in the Sicilian campaign in World War II, General Patton is characterized as a leader who violated the code binding leaders and those they lead. With his training in psychoanalysis and his experience in the business field, Mr. Zaleznik's leadership dissections and discussions are instructive. The reader will find Learning Leadership -- The Abuse of Power in Organizations to be an engaging text on the human qualities and frailties of leaders. Abraham Zaleznik is emeritus Konosuke Matsushita Professor of Leadership at the Harvard Business School. He is also a certified psychoanalyst. ********* 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 P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, and Zora Jayda Zerrudo Sala, Editors. Copyright 2007. 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$625 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 * * *