/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070112.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 12, 2007, Vol. 8, No. 9 Headlines A U S T R I A 5STARS TRADING: Creditors' Meeting Slated for January 22 CHRISTIAN HEISSENBERGER: Assets Insufficient to Cover Claims DEXIA KOMMUNALKREDIT: Fitch Affirms Individual C Rating DKT TRANSPORT: Creditors' Meeting Slated for January 25 IN FOCUS: Claims Registration Period Ends January 25 JOHANN BRUNNER: Property Manager Declares Insufficient Assets KARBINOVSKY & BARTL: Claims Registration Ends January 15 REISEARTIKEL U. LEDERWAREN: Creditors' Meeting Set for Jan. 23 SEITZ BAU: Wiener Neustadt Court Orders Business Shutdown F R A N C E DRESSER-RAND: Discloses Changes in Senior Management Team F I N L A N D METSO OYJ: Names Juhani Suvinen as Valmet Automotive President G E R M A N Y B & S IT: Claims Registration Ends January 24 BENQ CORP: Sentex Sensing Presents Business Model to Creditors CANMAX AKTIENGESELLSCHAFT: Claims Registration Ends January 26 DAIMLERCHRYSLER AG: CEO Expresses Support for Chrysler Chief GROHE HOLDING: S&P Assigns B Rating on EUR800-Mln Sr. Sec. Notes GUENESER SUPERMARKT: Claims Registration Ends January 30 HOTZ ROLLTORE: Creditors' Meeting Slated for January 26 HSH HOTEL: Creditors' Meeting Slated for January 26 ICP IMMOBILIENVERWALTUNG: Creditors' Meeting Slated for Jan. 29 JOY GASTSTATTEN: Creditors' Meeting Slated for January 31 KEMPFER WOHNKERAMIK: Claims Registration Ends January 28 KPS FREIZEIT: Claims Registration Ends January 29 NFM TECHNOPLAST: Claims Registration Ends January 25 VOLKSWAGEN AG: Porsche CEO Wiedeking Calls for Company Changes TREUHANDVEREIN VOLLEYBALL: Claims Registration Ends January 26 G E O R G I A TBC BANK: Moody's Assigns E+ Financial Strength Rating H U N G A R Y AES CORP: Gets Hydroelectric Build-Operate Concessions in Panama HERTZ CORP: Parent Discloses Strategies to Boost Competitiveness I R E L A N D SMURFIT KAPPA: Confirms Possible Initial Public Offering Plans SMURFIT KAPPA: S&P Puts B+ Rating on Watch Positive on IPO Plans I T A L Y ALITALIA SPA: Paolo Alazraki Unveils EUR5-Billion Recovery Plan * Fitch Downgrades Italian City of Taranto to D K A Z A K H S T A N AGROTECHSERVICE LLP: Jambyl Court Starts Bankruptcy Procedure ALFA-MARKET LLP: Creditors Must File Claims by February 15 ALMAT ENGINEERING: Claims Filing Period Ends February 15 ALMATY JEEP: Proof of Claim Deadline Slated for February 15 ALTYN-AIMAK: East Kazakhstan Court Opens Bankruptcy Proceedings ASIA LTD: Proof of Claim Deadline Slated for February 15 DERABINY LLP: Creditors Must File Claims by February 15 HYDROAGROSERVICE LLP: Creditors' Claims Due February 14 NAIZA SECURITY: Claims Filing Period Ends February 15 NAZYR LLP: Creditors Must File Claims by February 15 K Y R G Y Z S T A N GIARETA LLC: Claims Filing Period Ends February 23 I-T SERVICE-OSH: Creditors' Claims Due February 22 OMEGA SOFT: Creditors Must File Claims by Feb 23 TOHTOZAN LLC: Creditors' Meeting Scheduled for January 29 L U X E M B O U R G ELEX ALPHA: Moody's Rates EUR16.5-Mln Class E Notes at Ba3 EVRAZ GROUP: CFIUS Completes Review on Oregon Steel Takeover N E T H E R L A N D S ACXIOM CORP: Enhances Retail Solutions with Equitec Acquisition KONINKLIJKE AHOLD: C. Schlicker Succeeds T. Schiano as Tops CEO LAMBDA FINANCE: Moody's Puts Low-B Ratings on Two Note Classes R U S S I A AL'T CJSC: Creditors Must File Claims by February 16 ALISA-MED CJSC: Creditors Must File Claims by February 16 ANASHENSKOYE CJSC: Creditors Must File Claims by February 16 BAYKAL-RESORT CJSC: Bankruptcy Hearing Slated for April 12 CEDAR OJSC: Creditors Must File Claims by February 16 DALNEVOSTOCHNAYA FUEL: Creditors Must File Claims by February 16 EVRAZ GROUP: CFIUS Completes Review on Oregon Steel Takeover GRANITE LLC: Creditors Must File Claims by February 16 GOSTINYJ DVOR: Court Starts Bankruptcy Supervision Procedure GUBDEN LLC: Bankruptcy Hearing Slated for November 7 MAGADAN-SPIRIT-PROM: Creditors Must File Claims by February 16 MAGNITOGORSKIY FACTORY: Court Starts External Bankruptcy Process PARNAS CJSC: Court Names O. Elistratova as Insolvency Manager RUSSIA OJSC: Creditors Must File Claims by February 16 SITRONICS JSC: Forecasts Up to US$550-Mln Fresh Capital from IPO SUAL GROUP: Inks US$650-Million Credit Facility TATNEFT OAO: Board Approves Acquisition of AK Bars Bank Shares SEVERO-ANGARSKIY MINING: Bankruptcy Hearing Slated for April 12 S P A I N BANCAJA 10: Moody's Junks EUR31-Million Series E Notes S W I T Z E R L A N D BOX-TRANS JSC: Zug Court Suspends Bankruptcy Proceedings GASTHAUS GUBEL: Zug Court Starts Bankruptcy Proceedings HAMACO JSC: Zug Court Starts Bankruptcy Proceedings I.P.C. INNOVATED: Zug Court Starts Bankruptcy Proceedings KIGA INVEST: Zug Court Starts Bankruptcy Proceedings KOY GASTRO: Zug Court Suspends Bankruptcy Proceedings KUCHE + BAD: Olten Court Suspends Bankruptcy Proceedings RC-MODELLBAU - SHOP.CH: Zug Court Suspends Bankruptcy Process RODA BAU: Zug Court Suspends Bankruptcy Proceedings THURTECH JSC: Court Suspends & Closes Bankruptcy Process U K R A I N E AGROKONTRAKT-KOVEL: Claims Filing Deadline Set January 24 EUROGATE-UKRAINE: Creditors Must Submit Claims by January 25 GLUHOV BREAD: Deadline for Submission of Claims Set January 24 INTER-FILTR: Creditors Must Submit Claims by January 25 NEDRIGAYLO MIXED: Claims Filing Deadline Set January 24 S.E.A. LTD: Creditors Must Submit Claims by January 25 ZORIA LLC: Claims Filing Deadline Set January 24 U N I T E D K I N G D O M COLLINS & AIKMAN: Seeks Court Nod on Lease Agreement Amendment COLLINS & AIKMAN: Closing Five North American Plants by March DURA AUTOMOTIVE: Seeks Court Nod for Lease Rejection Procedures EASTMAN KODAK: Fitch Says Health Unit Sale May Improve Prospects EASTMAN KODAK: S&P's B+ Credit Rating Remains on Watch Negative ENMORE STAR: Nominates Liquidator from Hodgsons ESSENTIAL GARDEN: Appoints Mark Reynolds as Liquidator EU EMPLOYMENT: Names Liquidator to Wind Up Business EXPANSE COMMERCIAL: Joint Liquidators Take Over Operations EXPRESS RECRUITMENT: E. J. Stonham Leads Liquidation Procedure FASHIONLOG LIMITED: Brings In Liquidators from Vantis FORD MOTOR: CEO Alan Mulally Considers Selling Jaguar Brand FROSTMIST LTD: Appoints Liquidators to Wind Up Business GAP INC: Goldman Sachs Hiring Sparks Rumors on Strategic Options GAP INC: December Sales Down 4%; Comparable Store Sales Down 8% GETTY IMAGES: Soliciting Consents to Amend Debentures GRACECHURCH CORPORATE: Moody's Assigns Low-B Rating on Two Notes H M CONSULTING: Names Gagen Dulari Sharma Liquidator HACKENTHORPE SOCIAL: Creditors' Claims Due January 31 HAIGHS OF NEWCASTLE: Creditors Confirm Liquidators' Appointment HAMWORTHY ROYAL: Taps Liquidator from Begbies Traynor INSIDE EDGE: Hires Liquidator from Bridgers IPG PERSONNEL: Nominates Mervyn E. Smith as Liquidator J ROUTLEDGE: Hires Gary Corbett to Liquidate Assets JAMES PASS: Creditors' Claims Due January 30 JOHN HAMPDEN: Appoints Liquidators from Baker Tilly MALDEN MILLS: Sells Assets to Gordon Brothers Under Chapter 11 MALDEN MILLS: Case Summary & 30 Largest Unsecured Creditors MALDEN MILLS: Organizational Meeting Scheduled on January 19 REFCO INC: RCM Trustee Asks Court to Approve Bolton Settlement SAMSONITE CORP: Earns US$8.9 Million in Quarter Ended October 31 SCOTTISH RE: Files Preliminary Proxy Statement with U.S. SEC SCOTTISH RE: Shareholder to Reject MassMutual/Cerberus Deal SMART BOX: Creditors Confirm Liquidator's Appointment SOLAR DESIGNS: Appoints Liquidators from PricewaterhouseCoopers SOUNDFORMAT LIMITED: Calls In Liquidator from Arrans SRS COMMUNICATIONS: Taps I. D. Holland to Liquidate Assets STOCKPORT GEAR: Brings In Liquidators from CLB Coopers STONEYLANE DEVELOPMENTS: Hires David R. Acland as Liquidator THERMAL ENGINEERING: Taps Liquidators from Deloitte & Touche LLP THERMION SYSTEMS: Joint Liquidators Take Over Operations TRAVEL BY DESIGN: Names Keith Aleric Stevens Liquidator TRENT VALLEY: Appoints Gerald Irwin to Liquidate Assets TRIPENTA LIMITED: Liquidator Sets Jan. 26 Claims Bar Date WALKERS INSURANCE: Names Gerard Keith Rooney Liquidator WEST ONE: Nimish C. Patel Leads Liquidation Procedure * Fitch Says European High-Yield Issue Closes at Record High * BOOK REVIEW: Working Together: 12 Principles for Achieving Excellence in Managing Projects, Teams, and Organizations ********* ============= A U S T R I A ============= 5STARS TRADING: Creditors' Meeting Slated for January 22 -------------------------------------------------------- Creditors owed money by LLC 5stars trading (FN 266923i) are encouraged to attend the creditors' meeting at 10:00 a.m. on Jan. 22 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Linz Room 522 5th Floor Linz, Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on Nov. 23, 2006 (Bankr. Case No. 12 S 104/06s). Guenther Grassner serves as the court-appointed property manager of the bankrupt estate. Norbert Mooseder represents Mr. Grassner in the bankruptcy proceedings. The property manager can be reached at: Guenther Grassner Suedtiroler Road 4-6 4020 Linz, Austria Tel: 77 08 15 Fax: 77 08 16 E-mail: lawfirm@gltp.at Mr. Grassner's representative can be reached at: Dr. Norbert Mooseder Stelzhamerstrasse 1 4400 Steyr, Austria Tel: 07252/42 4 24 Fax: 07252/42 4 24-24 E-mail: lawfirm@gltp.at CHRISTIAN HEISSENBERGER: Assets Insufficient to Cover Claims ------------------------------------------------------------ Dr. Susi Pariasek, the court-appointed property manager for LLC Christian Heissenberger (FN 117916g), declared Nov. 23, 2006, that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 25, 2006 (Bankr. Case No. 4 S 153/06m). Beate Holper represents Dr. Pariasek in the bankruptcy proceedings. The property manager and her representative can be reached at: Dr. Susi Pariasek c/o Mag. Beate Holper Gonzagagasse 15 1010 Vienna, Austria Tel: 533 28 55 Fax: 533 28 55 28 E-mail: office@anwaltwien.at DEXIA KOMMUNALKREDIT: Fitch Affirms Individual C Rating ------------------------------------------------------- Fitch Ratings affirmed Austria-based Dexia Kommunalkredit Bank AG's ratings at Issuer Default AA, Short-term F1+, Individual C, and Support 1. The Outlook is Stable. Dexia-Kom's Issuer Default, Short-term, and Support ratings reflect the extremely strong potential support from its majority shareholder Dexia Credit Local, given its role within the Dexia group, Europe's largest provider of public finance. Any changes in DCL's ratings are likely to lead to a change in Dexia-Kom's ratings, as would a change in the relationship between the bank and DCL. Dexia-Kom's Individual rating reflects its limited credit risk from public sector lending. It also takes into account the short track record of both its bank and public sector lending in Central and Eastern Europe, Dexia-Kom's small absolute equity base, its reliance on volume-driven business, and possible risks arising from strong asset growth. "The majority of Dexia-Kom's credit exposure is to the public sector in CEE, including states, regions, and larger municipalities as well as quasi-public enterprises. As a result, asset quality is sound. Lending, however, is concentrated as the bank became operational only in the first quarter of 2005 and has substantially grown in Poland and Hungary," says Michael Steinbarth, director, in Fitch's Financial Institutions Group. Dexia-Kom is the result of a joint venture set up in 2000 between DCL and Kommunalkredit Austria AG, an Austrian-based long-term lender to public authorities. Dexia-Kom relies on KA's staff and infrastructure. Since 2005, KA employees, including the management team, have been working for KA and Dexia-Kom. Operating costs are currently well controlled, but their high level partly reflects the business's start-up character as well as its retail banking operations in Slovakia. Given DCL's franchise and the owners' expertise in the public sector, Dexia- Kom should be able to expand its customer base and product range and thus improve future profitability. Risk management is strong and well integrated into that of the Dexia group. Dexia-Kom has some exposure to market risk, mainly through open structural positions on its balance sheet, but controls are adequate and closely coordinated with Dexia. Dexia-Kom obtains most of its funding from Dexia, but expects to diversify its funding by accessing local wholesale markets. At the end of September 2006, the bank's 10.5% Tier 1 capital ratio was satisfactory, given its risk profile, but capital adequacy is expected to fall in line with loan growth. Management expects continued strong growth from Dexia-Kom's Polish business where it obtained a banking license in 2006. Dexia-Kom was established as a Vienna-based management holding company for DCL's and KA's jointly held subsidiaries in CEE and was renamed Dexia-Kom in March 2005 on receiving a full banking license. The bank holds around 79% in the leading Slovak bank for municipal and local authority financing, Dexia Banka Slovensko. Wholly owned subsidiaries operate in the Czech Republic and Poland, which has recently obtained a banking license, and where management expects strong growth. Local offices in Bulgaria, Hungary, and Romania have also become fully operational. DKT TRANSPORT: Creditors' Meeting Slated for January 25 ------------------------------------------------------- Creditors owed money by LLC DKT Transport (FN 187579b) are encouraged to attend the creditors' meeting at 9:15 a.m. on Jan. 25 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 27, 2006 (Bankr. Case No. 5 S 157/06g). Beate Holper serves as the court-appointed property manager of the bankrupt estate. Susi Pariasek represents Dr. Holper in the bankruptcy proceedings. The property manager and her representative can be reached at: Mag. Beate Holper c/o Dr. Susi Pariasek Gonzagagasse 15 1010 Vienna, Austria Tel: 533 28 55 Fax: 533 28 55 28 E-mail: office@anwaltwien.at IN FOCUS: Claims Registration Period Ends January 25 ---------------------------------------------------- Creditors owed money by LLC In Focus Fotohandel (FN 40779w) have until Jan. 25 to file written proofs of claims to court- appointed property manager Eva Wexberg at: Dr. Eva Wexberg c/o Dr. Walter Kainz Gusshausstrasse 23 1040 Vienna, Austria Tel: 505 88 31 Fax: 505 94 64 Email: kanzlei@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Feb. 8 to consider the adoption of the rule by revision. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 27, 2006 (Bankr. Case No. 2 S 165/06m). Walter Kainz represents Dr. Wexberg in the bankruptcy proceedings. JOHANN BRUNNER: Property Manager Declares Insufficient Assets ------------------------------------------------------------- Dr. Walter Anzboeck, the court-appointed property manager for LLC Johann Brunner (FN 91286w), declared Nov. 24, 2006, that the Debtor's property is insufficient to cover creditors' claim. The Land Court of St. Poelten is yet to rule on the property manager's claim. Headquartered in Neuaigen, Austria, the Debtor declared bankruptcy on Oct. 9, 2006 (Bankr. Case No. 14 S 166/06m). The property manager can be reached at: Dr. Walter Anzboeck Stiegengasse 8 3430 Tulln, Austria Tel: 02272/61 600 Fax: 02272/61 600-20 E-mail: anwalt@anzboeck KARBINOVSKY & BARTL: Claims Registration Ends January 15 -------------------------------------------------------- Creditors owed money by LLC Karbinovsky & Bartl (FN 60137m) have until Jan. 15 to file written proofs of claims to court- appointed property manager Georg Unger at: Dr. Georg Unger c/o Dr. Peter Schulyok Mariahilfer Road 50 1070 Vienna, Austria Tel: 523 62 00 Fax: 526 72 74 Email: schulyok-unger@csg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on Jan. 29 to consider the adoption of the rule by revision. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 27, 2006 (Bankr. Case No. 3 S 159/06m). Peter Schulyok represents Dr. Unger in the bankruptcy proceedings. REISEARTIKEL U. LEDERWAREN: Creditors' Meeting Set for Jan. 23 -------------------------------------------------------------- Creditors owed money by LLC Reiseartikel u. Lederwaren E. Hofmann (FN 102914w) are encouraged to attend the creditors' meeting at 9:15 a.m. on Jan. 23 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 23, 2006 (Bankr. Case No. 4 S 166/06y). Eva Wexberg serves as the court-appointed property manager of the bankrupt estate. Walter Kainz Budak represents Dr. Wexberg in the bankruptcy proceedings. The property manager and her representative can be reached at: Dr. Eva Wexberg c/o Dr. Walter Kainz Gusshausstrasse 23 1040 Vienna, Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei@kainz-wexberg.at SEITZ BAU: Wiener Neustadt Court Orders Business Shutdown --------------------------------------------------------- The Land Court of Wiener Neustadt entered Nov. 24, 2006, an order shutting down the business of LLC Seitz Bau (FN 257035v). Court-appointed property manager Christian Hajos recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Mag. Christian Hajos Hauptstrasse 6 2630 Ternitz, Austria Tel: 02630/33655 Fax: 02630/33655 14 E-mail: office@ra-winkler.at Headquartered in Woellersdorf-Steinabrueckl, Austria, the Debtor declared bankruptcy on Nov. 14, 2006 (Bankr. Case No. 10 S 105/ 06d). =========== F R A N C E =========== DRESSER-RAND: Discloses Changes in Senior Management Team --------------------------------------------------------- Dresser-Rand Group Inc. disclosed that the company will make changes in responsibilities for three members of its senior management team. "We believe that the actions we are announcing are important to continue to develop our successful leadership team, as rotational assignments are a fundamental part of our development efforts, said Dresser-Rand's President and Chief Executive Officer, Vincent R. Volpe, Jr. These changes will occur during the first quarter of this year to allow for orderly transition in each area." Jean-Francois Chevrier, currently Vice President and General Manager, European Operations, will become Vice President and General Manager, North American Operations. Mr. Chevrier will have responsibility for the Burlington Iowa, Olean, Wellsville, and Painted Post, New York operations, including engineering and drafting centers. Additionally, he will have responsibility for the global Research and Development Engineering organization. His sixteen years experience with Dresser-Rand includes operations and engineering positions for Turbo Products, including Director of Special Projects in Olean, New York. Prior to joining Dresser-Rand, he worked in operations management for a subsidiary of Peugeot in its military and aerospace equipment businesses. Mr. Chevrier has a BSME from Tarbes University in France. He and his wife Marie-Christine will relocate to Olean, New York. Walter J. Nye, currently Executive Vice President, Product Services Worldwide, will assume responsibility for the European Served Area as the Vice President and General Manager. Mr. Nye, who brings over 31 years of experience in Dresser-Rand, will have responsibility for the German, Norwegian, and French operations. Additionally, he will assume responsibility for Field Operations, New Unit Sales, and Product Services Sales organizations in Europe. His prior experience with Dresser-Rand includes positions as Controller, Turbo Products Division, President of the Services Division and a variety of management positions in accounting and operations. Mr. Nye has a BA from St. Bonaventure University. He and his wife Michele will relocate to Le Havre, France. Christopher Rossi, currently Vice President and General Manager, North American Operations, will become Executive Vice President, Product Services Worldwide, assuming responsibility for all aftermarket parts and services sales. Mr. Rossi will also have responsibility for the Controls Strategic Business Unit, and Dresser-Rand's merger and acquisition initiatives Over the past 20 years with Dresser-Rand, Mr. Rossi has held various leadership positions within Dresser-Rand, including General Manager, Painted Post Operations, Vice President, Supply Chain Management Worldwide and several operations and engineering positions within the Reciprocating Compressor Division. Mr. Rossi has an MBA in Corporate Finance from the University of Rochester, and a BSME from Virginia Tech. He and his wife Georgia and their two children will relocate to Houston, Texas. Headquartered in Houston, Texas, Dresser-Rand Group Inc. -- http://www.dresser-rand.com/-- engages in the design, manufacture, and marketing of rotating equipment solutions to the oil, gas, petrochemical, and process industries worldwide. The company also operates in France, Czech Republic, India and Italy. * * * As reported in the Troubled Company Reporter-Europe on Oct. 20, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Dresser-Rand Group Inc. in connection with the rating agency's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the oilfield service and refining and marketing sectors. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Sec. Gtd. Revolving Credit Facility Due 2009 Ba3 Ba1 LGD2 18% Sr. Sec. Gtd. Term Loan Due 2011 Ba3 Ba1 LGD2 18% 7.375% Sr. Sub. Gtd. Global Notes Due 2014 B2 B1 LGD5 73% ============= F I N L A N D ============= METSO OYJ: Names Juhani Suvinen as Valmet Automotive President -------------------------------------------------------------- Juhani Suvinen has been appointed President of Valmet Automotive, a unit of Metso Oyj, as of Jan. 10, 2007. Mr. Suvinen has held the position of Executive Vice President of Valmet Automotive since 1996. At the same time, Ilpo Korhonen was appointed Executive Vice President, and is responsible for the production process. He has previously acted as Vice President responsible for the Porsche project and the production, and before that he acted in different production and quality related assignments. Valmet Automotive's current president, Tapio Kuisma, resigns simultaneously and will become Board Member of Valmet Automotive. About Valmet Automotive Headquartered in Uusikaupunki, Finland, Valmet Automotive -- http://www.valmet-automotive.com/-- is a unit of Metso Corp aka Metso Oyj. The company is a brand-independent contract manufacturer of exclusive specialty cars of superior quality About Metso Headquartered in Helsinki, Finland, Metso Corporation -- http://www.metso.com/-- serves customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. The company's principal production plants are located in Brazil, China, Finland, France, Germany, India, Italy, South Africa, Sweden, the United Kingdom and the United States. * * * As reported in the TCR-Europe on April 11, Standard & Poor's Ratings Services revised its outlook on Finland-based machinery and engineering group Metso Corp. to positive from stable, reflecting improvements in the group's operating performance and capital structure that offer it the potential to return to a low investment-grade rating. The 'BB+' long-term and 'B' short-term corporate credit ratings, as well as the 'BB' senior unsecured debt rating on the group were affirmed. ============= G E R M A N Y ============= B & S IT: Claims Registration Ends January 24 --------------------------------------------- Creditors of B & S IT-Consulting GmbH have until Jan. 24 to register their claims with court-appointed insolvency manager Goetz Lautenbach. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on March 7, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main, Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt/Main opened bankruptcy proceedings against B & S IT-Consulting GmbH on Nov. 17, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: B & S IT-Consulting GmbH Hermannstrasse 15 60318 Frankfurt/Main, Germany The insolvency manager can be contacted at: Goetz Lautenbach Zeilweg 42 D-60439 Frankfurt/Main, Germany Tel: 069/963761-0 Fax: 069/963761145 BENQ CORP: Sentex Sensing Presents Business Model to Creditors -------------------------------------------------------------- Henrik Rubinstein, president of Sentex Sensing Technologies Inc., presented the company's position to creditors of BenQ Mobile GmbH & Co. in relation to its offer to acquire the bankrupt German unit of Taiwan-based BenQ Corp. Mr. Henrik made the presentation at a creditors' meeting held by Martin Prager, BenQ Mobile's insolvency administrator, under German Insolvency Law on Jan. 9. The previous Siemens Mobile Division filed insolvency and is under administration in Munich, Germany. Sentex stated their interest was based on the strong technology and products of the previous Siemens R&D as well the market access in Europe which turned out almost 25 million high-end mobile phones in the last business year. Mr. Rubinstein explained in detail its financial model, which showed its fair value as well as the incentives for the employees with strong growth in the NewCo -- SENSe Mobile GmbH. He provided the description of the mobile prototypes, which showed clearly what the SENSe Mobile Division could create versus the competition. He explained the positive link between U.S. and German high tech ventures. As a result of the meeting, the Insolvency team informed Sentex of the liquidation value of the assets and informed Sentex to prepare new financial information that demonstrates how to pay the liquidation value, and its acceptance of it. They started negotiations on the earn-out model. Sentex has received a written statement of Nord Rhein Westfahlen again on a country endorsement for working capital of EUR25 million, which was forwarded to the Bank for approval. Sentex is in serious discussions with several Financial Institutions for the strategic financing for the deal to succeed. The Administration team for BenQ Mobile was very helpful in the due diligence process and created with Sentex a strong business model based on the previous US$2 billion revenue from BenQ Mobile GmbH & Co. OHG. About Sentex Sensing Sentex Sensing Technologies, Inc. http://www.sentextech.com/-- provides fingerprint, facial and voice biometric technologies, as well as systems, and critical system components that empower the identification of individuals in large-scale ID and ID management programs. About BenQ Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- manufactures, develops and sells computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BenQ Mobile filed for insolvency in Germany on Sept. 29. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. * * * As reported in the TCR-AP on Oct. 31, 2006, Taiwan Ratings Corp. affirmed its twBB+/twB corporate credit ratings and twBB+ unsecured corporate bond issue rating on BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings removed all ratings from Credit Watch with negative implications, where they were placed on March 14, 2006, and withdrew all the ratings upon the company's request. CANMAX AKTIENGESELLSCHAFT: Claims Registration Ends January 26 -------------------------------------------------------------- Creditors of CANMAX Aktiengesellschaft have until Jan. 26 to register their claims with court-appointed insolvency manager Thilo Braun. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Jan. 29, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Freiburg Hall 1 Holzmarkt 2 79098 Freiburg, Germany The Court will also verify the claims set out in the insolvency manager's report at 11:00 a.m. on Feb. 12 to be held at: The District Court of Freiburg Room 304 Holzmarkt 2 79098 Freiburg, Germany The District Court of Freiburg opened bankruptcy proceedings against CANMAX Aktiengesellschaft on Dec. 22, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: CANMAX Aktiengesellschaft Siemensstr. 7 79331 Nimburg, Germany Attn: Ruben Welsch, Manager Muenchhofstr. 10 79106 Freiburg, Germany Michael Paul, Manager Sofienstr. 9 77933 Lahr, Germany The insolvency manager can be contacted at: Thilo Braun Schillerstr 2 79102 Freiburg, Germany Tel: 0761-703900 Fax: 0761/7039052 DAIMLERCHRYSLER AG: CEO Expresses Support for Chrysler Chief ------------------------------------------------------------ Dieter Zetsche, chief executive of DaimlerChrysler AG, said he and the company's supervisory board supports Chrysler head Tom LaSorda in his effort to return the ailing U.S. unit to profitability, Bloomberg News reports. "I have given him advice to not read too many news clips," Mr. Zetsche told Bloomberg News. "He is doing a good job in a difficult environment." Bloomberg News suggests that Mr. Zetsche's comments may clarify speculations that Mr. LaSorda may lose his job. Mr. LaSorda succeeded Mr. Zetsche as Chrysler's chief. Chrysler, which posted US$1.5 billion net loss in third quarter 2006, is forecasting a deficit for 2006. The division recently disclosed of plans to return to profitability in February. "They need to bite the bullet, close some plants and restructure," said Erich Merkle, an analyst at IRN Inc. "They are not going to be able to sell themselves out of this. The economy is slowing down." 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, 2006, 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, 2006, DaimlerChrysler reduced the Group's operating- profit target for 2006 to an amount 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. GROHE HOLDING: S&P Assigns B Rating on EUR800-Mln Sr. Sec. Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' rating to the proposed EUR800-million senior secured floating-rate notes to be issued by Germany-based Grohe Holding GmbH (B/Stable/--) with final maturity in 2014. A recovery rating of '3' has been assigned to the notes, indicating Standard & Poor's expectation of meaningful (50%-80%) recovery of principal in the event of a payment default. In addition, Standard & Poor's assigned its 'BB-' rating to the EUR150-million senior secured revolving credit facility issued by Grohe Beteiligungs GmbH and Grohe AG and guaranteed by Grohe Holding. S&P assigned a recovery rating of '1', indicating our high expectation of full recovery of principal. The ratings are subject to final documentation. "The proceeds of these issues will be used to repay outstanding obligations under the existing EUR900-million senior credit facilities and to pay related fees and expenses," said Standard & Poor's credit analyst Eve Greb. "Grohe's liquidity position will significantly improve after this refinancing, as the restrictive covenants under the former senior secured facilities will end." The group's liquidity is expected to be satisfactory after the refinancing pro forma September 2006, as the group will have about EUR80-million available under the new EUR150-million revolving credit facility that matures in 2011 and EUR30 million of cash. The ratings on Grohe Holding -- the holding company via an intermediary holding of Germany-based manufacturer Grohe AG -- are constrained by the group's: -- highly leveraged financial profile; -- still-significant exposure to the German market (18% of sales); -- and exposure to commodity-price and exchange-rate fluctuations, as the group's manufacturing facilities and sales are mainly located in the Eurozone while volatile raw-material inputs are linked to the U.S. dollar. The ratings are supported by Grohe's solid market position in the fragmented European sanitary-fittings industry, its good geographic diversity, strong brand name, and the importance of the renovation and refurbishment end market, which accounts for 70% of total sales. This market is moderately cyclical and has sound fundamentals. Recovery Analysis After the proposed refinancing, Grohe will have the following principal debt facilities in place: -- EUR150-million senior secured revolving credit facility, maturing in 2011; -- EUR800-million senior secured notes, maturing in 2014; and -- EUR335 million high-yield notes, maturing in 2014, benefiting from limited second-ranking security. The ratings on both the revolving credit facility and senior secured notes reflect the extensive asset and share security and guarantee package, which covers approximately 80% of the group's EBITDA and assets. Although the two facilities rank pari passu for the purposes of enforcement, the revolving credit facility benefits from a super-priority, which grants the first proceeds from enforcement to that facility. This is the key driver for the '1' recovery rating on the revolving facility. The concentration of manufacturing assets in Germany is positive from the perspective of the applicable insolvency regimes for secured creditors. This is tempered, however, by significant manufacturing operations in jurisdictions that may be less favorable to secured creditors (notably Thailand and China). To determine recoveries, Standard & Poor's simulates a hypothetical default scenario. Under this scenario, S&P have assumed that default would most likely be driven by the group's high financial leverage, allowing the group to be reorganized following a default. Our default scenario assumes stable or marginally declining revenues through to 2008, followed by a more meaningful decline in 2009 as sentiment in the construction market deteriorates. In addition, increasing raw-material costs are forecast across the period. S&P also take into account potential increases in interest rates across the period, which are only partially offset by hedging in place. Under this scenario, the group appears most likely to default in 2009, with EBITDA having declined by 30%-35% from current levels at the point of default. Based on a combination of discounted cash flow and stressed market-multiple approach, S&P estimate the value of the company to be above EUR800 million at default. At default, the full EUR800 million notes are expected to remain outstanding. S&P have also assumed full drawings on the revolver. After repayment of the prior-ranking revolver and taking into account a moderate reduction in value to reflect the cross- jurisdictional legal and enforcement cost issues, Standard & Poor's has assigned a recovery rating of '3' to the senior secured notes. Cover is at the high end of the range. The EUR335-million high-yield notes due 2014, benefit from a number of second-ranking share pledges and second-ranking pledges over intercompany pooling agreements likely to be of limited tangible value in a default scenario. Furthermore, S&P see limited prospects for recovery from unencumbered assets not subject to the senior security package due to the high level of potential pari passu ranking claims. This bond is therefore rated 'CCC+', two notches below the corporate credit rating, reflecting the high level of priority liabilities that would rank ahead in insolvency. GUENESER SUPERMARKT: Claims Registration Ends January 30 -------------------------------------------------------- Creditors of Gueneser Supermarkt GmbH have until Jan. 30 to register their claims with court-appointed insolvency manager Peter Houben. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Feb. 2, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Krefeld Meeting Room H 131 1st Floor Nordwall 131 47798 Krefeld, Germany The Court will also verify the claims set out in the insolvency manager's report at 9:05 a.m. on March 9, at the same venue. The District Court of Krefeld opened bankruptcy proceedings against Gueneser Supermarkt GmbH on Nov. 8, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gueneser Supermarkt GmbH Borsingstrasse 25 47809 Krefeld, Germany Attn: Naki Gueneser, Manager Rott 141 b 47800 Krefeld, Germany The insolvency manager can be contacted at: Peter Houben Sternstrasse 58 40479 Duesseldorf, Germany HOTZ ROLLTORE: Creditors' Meeting Slated for January 26 ------------------------------------------------------- The court-appointed insolvency manager for HOTZ Rolltore GmbH, Ruediger Wienberg, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:40 a.m. on Jan. 26. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the insolvency manager's report at 10:20 a.m. on March 23, at the same venue. Creditors have until Feb. 26 to register their claims with the court-appointed insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against HOTZ Rolltore GmbH on Nov. 9, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HOTZ Rolltore GmbH Tempelhofer Weg 112/113 12347 Berlin, Germany The insolvency manager can be reached at: Ruediger Wienberg Giesebrechtstr. 1 10629 Berlin, Germany HSH HOTEL: Creditors' Meeting Slated for January 26 --------------------------------------------------- The court-appointed insolvency manager for HSH Hotel und Hostel Friedrichshain GmbH, Petra Hilgers, will present her first report on the Company's insolvency proceedings at a creditors' meeting at 10:15 a.m. on Jan. 26. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the insolvency manager's report at 10:00 a.m. on April 27, at the same venue. Creditors have until Feb. 26 to register their claims with the court-appointed insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against HSH Hotel und Hostel Friedrichshain GmbH on Nov. 7, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HSH Hotel und Hostel Friedrichshain GmbH Warschauer Road 57 10243 Berlin, Germany The insolvency manager can be reached at: Dr. Petra Hilgers Goethestr. 85 10623 Berlin, Germany ICP IMMOBILIENVERWALTUNG: Creditors' Meeting Slated for Jan. 29 --------------------------------------------------------------- The court-appointed insolvency manager for ICP Immobilienverwaltung GmbH, Thomas Maier, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 2:00 p.m. on Jan. 29. The meeting of creditors and other interested parties will be held at: The District Court of Pirmasens Area 235 2nd Floor Pirmasens, Germany The Court will also verify the claims set out in the insolvency manager's report at 2:00 p.m. on March 5, at the same venue. Creditors have until Feb. 20 to register their claims with the court-appointed insolvency manager. The District Court of Pirmasens opened bankruptcy proceedings against ICP Immobilienverwaltung GmbH on Nov. 23, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ICP Immobilienverwaltung GmbH Attn: Maria Luise Kerchner, Manager Speyerstrasse 4-6 76846 Hauenstein, Germany Guenter Josef Schneider, Manager Hangstrasse 3 76846 Hauenstein, Germany The insolvency manager can be reached at: Thomas Maier Pirmasenser Road 18 66994 Dahn, Germany Tel: 06391/92280 Fax: 06391/922899 E-mail: insolvenz@stb-maier.de JOY GASTSTATTEN: Creditors' Meeting Slated for January 31 --------------------------------------------------------- The court-appointed insolvency manager for Joy Gaststatten Betriebs GmbH, Michael Frege, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:55 a.m. on Jan. 31. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the insolvency manager's report at 10:15 a.m. on April 4, at the same venue. Creditors have until Feb. 5 to register their claims with the court-appointed insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against Joy Gaststatten Betriebs GmbH on Nov. 8, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Joy Gaststatten Betriebs GmbH Sredzkistr. 30 10435 Berlin, Germany The insolvency manager can be reached at: Michael Frege Markgrafenstr. 36 10117 Berlin, Germany KEMPFER WOHNKERAMIK: Claims Registration Ends January 28 -------------------------------------------------------- Creditors of Kempfer Wohnkeramik GmbH have until Jan. 28 to register their claims with court-appointed insolvency manager Wilhelm Klaas. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Feb. 2, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Krefeld Meeting Room H 131 1st Floor Nordwall 131 47798 Krefeld, Germany The Court will also verify the claims set out in the insolvency manager's report at 10:00 a.m. on March 23, at the same venue. The District Court of Krefeld opened bankruptcy proceedings against Kempfer Wohnkeramik GmbH on Nov. 1, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kempfer Wohnkeramik GmbH Markische Str. 12 47809 Krefeld, Germany Attn: Gerhard de Haas, Manager Nikolausweg 2 46282 Dorsten, Germany The insolvency manager can be contacted at: Wilhelm Klaas Eichendorffstrasse 25 47800 Krefeld, Germany KPS FREIZEIT: Claims Registration Ends January 29 ------------------------------------------------- Creditors of KPS Freizeit- und Gastro-Betriebe GmbH & Co. KG have until Jan. 29 to register their claims with court-appointed insolvency manager Dirk Decker. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Feb. 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Reinbek Park Avenue 6 21465 Reinbek, Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Reinbek opened bankruptcy proceedings against KPS Freizeit- und Gastro-Betriebe GmbH & Co. KG on Nov. 29, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: KPS Freizeit- und Gastro-Betriebe GmbH & Co. KG Attn: Karl Norbert Pirsch-Steigerwald, Manager Oher Weg 38 22969 Witzhave, Germany The insolvency manager can be contacted at: Dirk Decker Speersort 4 - 6 20095 Hamburg, Germany NFM TECHNOPLAST: Claims Registration Ends January 25 ---------------------------------------------------- Creditors of NFM Technoplast GmbH have until Jan. 25 to register their claims with court-appointed insolvency manager Marcus Janca. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on March 8, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Neumuenster Area B.031 Law Courts Boostedter Road 26 Neumuenster, Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Neumuenster opened bankruptcy proceedings against NFM Technoplast GmbH on Sept. 21, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: NFM Technoplast GmbH Borgstedtfelde 15 24794 Borgstedt, Germany Attn: Horst Leiber, Manager Grosse Road 39 24937 Flensburg, Germany The insolvency manager can be contacted at: Marcus Janca Willestrasse 3 24103 Kiel, Germany VOLKSWAGEN AG: Porsche CEO Wiedeking Calls for Company Changes -------------------------------------------------------------- Porsche AG CEO Wendelin Wiedeking is seeking for at least one more board seat at Volkswagen AG and vowed he would push for big changes at the company to increase its underperforming results, Joseph B. White writes for the Wall Street Journal. "I know how to make money. I will force that we make money in VW, believe me," Mr. Wiedeking, who already holds two seats on VW's supervisory board, was quoted by WSJ as saying. "There must be a lot of changes in the VW organization." In response to press speculation, Mr. Wiedeking disclosed he does not want to take over as Volkswagen's CEO and eliminated a full merger between Porsche and Volkswagen. Porsche holds a 27.4% stake in Volkswagen. According to WSJ, Porsche will try to take advantage of VW's measures to reduce the costs it must pay in developing expensive new technology for its high performance cars. Headquartered in Wolfsburg, Germany, the Volkswagen Group -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in eleven European countries and a further seven countries in the Americas, Africa, and Asia, including China, Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle- related services on every working day. * * * Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by Chief Executive Bernd Pischetsrieder and Volkswagen brand head, Wolfgang Bernhard. In November last year, Volkswagen maintained its 2005 earnings guidance amid rumors it may lower targets. The company predicts a year-on-year improvement in both operating profit after special items and profit before tax this year. Rumors flew that the company would slash full-year earnings forecast due to higher restructuring costs. The company said the impact of its workforce reduction measures, which will be charged as special items in the fourth quarter, will be lower than last year's. The company also admitted there were no significant improvements in the economic environment in the first nine months of 2005, and the overall situation in the important automotive markets remained difficult. It also expected tougher competition in the Chinese and U.S. markets, and the rise in fuel prices to influence consumer confidence. TREUHANDVEREIN VOLLEYBALL: Claims Registration Ends January 26 -------------------------------------------------------------- Creditors of Treuhandverein Volleyball e.V. have until Jan. 26 to register their claims with court-appointed insolvency manager Karl-Dieter Sommerfeld. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on Feb. 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 142 1st Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Treuhandverein Volleyball e.V. on Nov. 29, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Treuhandverein Volleyball e.V. Attn: Peter Oster, Manager Rheindorfer Str. 119 51371 Leverkusen, Germany The insolvency manager can be contacted at: Karl-Dieter Sommerfeld Hammerweg 3 51766 Engelskirchen, Germany ============= G E O R G I A ============= TBC BANK: Moody's Assigns E+ Financial Strength Rating ------------------------------------------------------ Moody's Investors Service assigned B3 long-term and Not Prime short-term foreign currency deposit ratings and Baa3 long-term and Prime-3 short-term local currency deposit ratings to TBC Bank, the largest bank in Georgia, as well as an E+ Financial Strength Rating. The outlooks for all ratings are stable. According to Moody's, TBC's B3 long-term foreign currency deposit rating factors in -- and is constrained by -- the foreign currency transfer risk inherent in such instruments in Georgia and is based on an assessment of local economic and political factors. It could therefore only be upgraded in the event of a reduction in these risk factors. Conversely, the bank's Baa3/Prime-3 local currency ratings are not constrained by the foreign currency transfer risk and are at the highest level currently attainable by a Georgian bank. These ratings reflect TBC's systemic importance as the largest financial institution in the Georgian banking sector with a sizeable market share of approximately 25% and hence, in Moody's view, the high likelihood that TBC would receive financial support, in case of need, from the Georgian authorities. These local currency ratings are dependent on our assessment of: (i) the bank's intrinsic strength reflected in the FSR, (ii) the degree to which the authorities' ability to support an important bank might be limited as a result of a monetary regime that precludes the creation of unlimited quantities of local currency; and (iii) the willingness of the financial authorities to support the bank. The bank's E+ FSR, which is a measure of TBC's intrinsic strength on a standalone basis excluding external support factors, is underpinned by: (i) its strong franchise in its domestic market and satisfactory financial fundamentals; (ii) its experienced and dedicated management team with a good track record of steering the bank in a somewhat difficult operating environment; (iii) the bank's growing international profile and long-term co-operation with development institutions; (iv) its positive track record of solid financial performance, coupled with a high level of cost efficiency; (v) moderate single-party loan and deposit concentrations compared to many of the bank's peers in the Commonwealth of Independent States; and (vi) the potential entry of a strategic investor with a minority stake, which may be supportive of the bank's franchise strength. At the same time the bank's E+ FSR is constrained by: (i) its volatile operating environment, which considerably increases the level of risks that TBC would face in an adverse scenario; (ii) its relatively unseasoned and untested loan portfolio on the back of accelerated growth in 2005 and 2006, especially in the retail and SME sectors; (iii) some pressure on the credit quality of wine sector companies, especially those primarily oriented towards the Russian market, with a resultant rise in NPLs in H1 2006; (iv) the relatively large, albeit shrinking, contractual liquidity gaps, due to the still significant, though declining, proportion of short-term funding; and (v) the challenge the bank faces in raising capital in a period of rapid growth. Headquartered in Tbilisi, the capital of Georgia, TBC Bank reported total assets of US$332.8 million in accordance with IFRS as at Dec. 31, 2005. ============= H U N G A R Y ============= AES CORP: Gets Hydroelectric Build-Operate Concessions in Panama ---------------------------------------------------------------- An official of Asep, the public services regulator in Panama, told Business News Americas that the regulator has awarded three hydroelectric build and operate concessions that total 416 megawatts in installed capacity to AES Corp. BNamericas relates that the projects are: -- Gavilan (158 megawatts), -- Cauchero II (132 megawatts), and -- Chan-220 (126 megawatts), which would use water from the Changuinola river in Bocas del Toro. The official told BNamericas that AES Corp. was given one year to present the projects' final design. AES Corp. runs four hydro plants with total 470 megawatts of installed capacity and one 43-megawatt thermal plant in Panama, BNamericas states. AES Corporation -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES has been in Eastern Europe for nearly ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * As reported in the TCR-Europe on Oct. 23, 2006, Moody's Investors Service affirmed its B1 Corporate Family Rating for AES Corp. in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. HERTZ CORP: Parent Discloses Strategies to Boost Competitiveness ---------------------------------------------------------------- Hertz Global Holdings Inc., the indirect parent corporation of The Hertz Corp., disclosed the first in a series of initiatives to further improve Hertz's competitiveness and industry leadership. The company said that targeted job reductions affecting approximately 200 employees are intended to help streamline decision-making and improve service, in part by de-layering management in several departments. The job reductions are occurring at the company's corporate headquarters in Park Ridge, N.J., the U.S. service center in Oklahoma City, and in U.S. field operations, and are expected to result in annualized savings of up to US$15.8 million. The company anticipates incurring an estimated US$3.3 million-US$3.8 million restructuring charge for severance and related costs that will be taken in the first quarter of 2007. The company said that the job reductions are occurring in the context of initiatives intended to improve operational efficiency and reduce costs worldwide. The initiatives focus on reducing new car costs, improving process efficiencies at its car and equipment rental locations, centralizing purchasing and organizational restructuring. "Hertz is generating solid top-line growth and profits, enabling us to take steps to reduce costs and improve efficiency from a position of strength," said Mark P. Frissora, Chairman and CEO of Hertz. "Job reductions are a difficult decision, and we regret the impact on affected employees, but the management team recognizes that fleet cost inflation and competitive conditions require us to act now. Throughout 2007, Hertz will implement a series of operational initiatives that should result in even higher levels of efficiency, enabling the company to maintain its position as the premium brand and service leader in our markets," added Mr. Frissora. About Hertz Global Holdings, Inc. Hertz Global Holdings, Inc., the indirect parent corporation of The Hertz Corp., is the largest worldwide general use car rental brand and one of the largest equipment rental businesses in the United States. In its car rental business segment, Hertz and its independent licensees and associates accept reservations for car rentals at approximately 7,600 locations in approximately 145 countries. Hertz Corp. -- https://www.hertz.com/ -- the largest global car rental company, participates primarily in the on-airport segment of the car rental industry. This segment, which generates approximately 69% of Hertz's consolidated revenues, is heavily reliant on airline traffic. Demand tends to be cyclical, and can also be affected by global events such as wars, terrorism, and disease outbreaks. Hertz has also grown its off-airport business (12% of consolidated revenues), the segment of the car rental business that is less cyclical and more profitable, but which is dominated by 'A-' rated Enterprise Rent-A-Car Co. Through its Hertz Equipment Rental Corp. subsidiary (HERC, 18% of consolidated revenues), Hertz also operates one of the larger industrial and construction equipment renters in the U.S., along with some European locations. Hertz has operations in Hungary, Philippines and Peru, among others. * * * As reported in the TCR-Europe on Nov. 24, Moody's Investors Service changed the rating outlook of The Hertz Corp. to stable from negative following the completion of a US$1.3 billion IPO by Hertz Global Holdings, Inc., the acquisition vehicle through which equity sponsors Clayton, Dubilier & Rice, Inc., The Carlyle Group and Merrill Lynch Global Private Equity acquired Hertz in December of 2005. In a TCR-Europe report on Nov. 23, Standard & Poor's Ratings Services affirmed its ratings on two synthetic securities related to Hertz Corp. and its related entities and removed them from CreditWatch, where they were placed with negative implications on June 30. The rating actions reflect the affirmation of the long-term corporate credit and senior unsecured debt ratings on Hertz Corp. (BB-/Negative/NR) and its related entities and their removal from CreditWatch negative on Nov. 16, 2006. ============= I R E L A N D ============= SMURFIT KAPPA: Confirms Possible Initial Public Offering Plans -------------------------------------------------------------- Smurfit Kappa Group confirmed it is considering an initial public offering, AFX News reports. The confirmation follows recent market speculation of a possible share offer. The company will seek creditors' approval to alter some terms of its senior credit facility to facilitate an IPO this year, AFX News relays. About Smurfit Kappa Group Headquartered in Dublin, Ireland, Smurfit Kappa Group -- http://www.smurfit-group.com/-- manufactures containerboard containerboard and converts it into corrugated cases, folding cartons, paper sacks, tubes, and composite cans. Other products include boxboard, sack kraft paper, and printing and writing paper. The company produces 6 million tons of paper annually and has 300 facilities worldwide. * * * Fitch Ratings affirmed Smurfit Kappa Acquisitions' Issuer Default Rating at 'B+'. At the same time the agency affirmed the instrument ratings. A Stable Outlook has been assigned. The stable outlook assigned to Smurfit Kappa Group's ratings reflects Fitch's view that EBITDA will return to growth during the course of 2006 and that SKG will be in a position to generate significant cashflow for debt repayment from 2007-8. SMURFIT KAPPA: S&P Puts B+ Rating on Watch Positive on IPO Plans ---------------------------------------------------------------- Standard & Poor's Ratings placed all its ratings on Ireland- based paper and packaging company Smurfit Kappa Group Ltd. and related entities, including its 'B+' long-term corporate credit rating on the group, on CreditWatch with positive implications. This follows the group's announcement that it is considering an initial public offering. The '3' recovery rating on the group's senior secured debt has not been placed on CreditWatch. "A successful IPO could improve Smurfit Kappa's financial profile should the proceeds be used for debt repayments, although it should be noted that the group's current credit measures are very weak for the existing ratings," said Standard & Poor's credit analyst Alf Stenqvist. Standard & Poor's estimates that Smurfit Kappa's adjusted-debt- to-EBITDA ratio for full-year 2006 was slightly below 7x. At the end of September 2006, Smurfit Kappa had adjusted debt of about EUR5.7 billion, including unfunded postretirement liabilities of EUR635 million. Regardless of whether the group carries out an IPO, its credit measures are expected to improve in 2007, owing to gradually improving operating performance. This is a result of improving market conditions and benefits from a rationalization program, which have helped offset higher input costs. Standard & Poor's will follow the developments of Smurfit Kappa's IPO plans. Any potential rising of the ratings will depend on a successful completion of an IPO, and its impact on the group's financial profile. In addition, Standard & Poor's will review the group's business and financial strategies before resolving the CreditWatch. ========= I T A L Y ========= ALITALIA SPA: Paolo Alazraki Unveils EUR5-Billion Recovery Plan --------------------------------------------------------------- Paolo Alazraki has presented a recovery plan for national carrier Alitalia S.p.A. The plan, formulated by a consortium comprising hedge funds, venture capitalists, banks, pension funds, an Asian airline and Mr. Alazraki, entails a EUR5 billion investment -- EUR3 billion to purchase Alitalia and EUR2 billion to relaunch the carrier, AFX News reports. Mr. Alazraki, Agenzia Giornalistica Italia relays, revealed that purchase amount would be funded through: -- EUR1 billion from the Asian Airline; -- EUR1 billion from venture capitalists and hedge funds; and -- EUR1 billion from banks, pension funds and mutual funds. "I will contact a series of lending institutions among which American, Dutch, Canadian and of United Arab Emirates merchant banks," Mr. Alazraki told Alitalia's unions. "Two day ago, I am called by an investor that wanted to invest US$75 million." Mr. Alazraki said the EUR2 billion needed to relaunch Alitalia would be funded either through a capital increase or a convertible bond issue. Mr. Alazraki added that they might repay in advance an existing Alitalia bond to gain more favorable financing conditions. Mr. Alazraki said the recovery plan rules out lay-offs but includes adding more routes that would allow Alitalia to earn more revenues and meet costs. The plan also includes fleet renewal, and the revival of closed routes to North America and Latin America. The plan also entails the expansion of Alitalia's cargo division and reconsolidation of its maintenance unit. The consortium would also set up a real estate fund to manage Alitalia's property assets. The plan foresees a return to profit within 36 months. Mr. Alazraki will present full details of their recovery plans before the deadline for the submission of non-binding interest on Jan. 29. "The jobs are our first goal to achieve," Mr. Alazraki was quoted by Avionews as saying. "I am ready to give as gift the Milan-Rome route; I want to increase connections by EUR1000 each seat, right where Alitalia is not present today." Mr. Alazraki added that the consortium would reveal itself and proceed with the bid if it receives the blessings of Alitalia's unions. Union Comments Union representative said Mr. Alazraki made the "right approach" but emphasized the need to "verify the concreteness of the plan" in terms of financial details. The Sindacato Unitario Lavoratori dei Trasporti union said the plan was "interesting, but to be discussed further." "Many of the actions present are the ones we have been asking for over the past five years," a SULT representative said. "But things must be discussed more in detail, checking if financial resources are compatible." The Piloti Italian Uniti union warned that it would "firmly oppose anyone who wants to take over the airline and reduce its activity and staff, making it a lesser airline for some large European one." Formal Bidding Process 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; As reported in the TCR-Europe on Jan. 5, Paolo Alazraki, owner of Real Dreams Italy Srl, heads a group of 16 investors that indicated their interest in acquiring the national carrier. 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. * Fitch Downgrades Italian City of Taranto to D ----------------------------------------------- Fitch Ratings downgraded the Italian City of Taranto's Long- and Short-term local and foreign currency ratings to D from C. This follows confirmation from the city's financial lenders that it has missed its debt installment repayment due by December 2006. About EUR12 million installments referring to outstanding bonds and loans of about EUR330 million are likely to be included in proportional settlement together with Taranto's unfunded liabilities, most of which arose before the official declaration of financial distress in the middle of October 2006. These unfunded liabilities are reportedly at about EUR350 million. Bank advances of EUR25 million extended in 2004 to Taranto are also to be included in the proportional settlement. These bank loans were supposed to have been repaid with the proceeds of an asset sale that never materialized. Upward rating potential may stem from the resumption of normal operations following the approval of the 2007 budget. The budget entails the payment of all 2007 operating liabilities, including installments of the city's long-term financial debt due in the current year. Fitch will continue to monitor the development of Taranto's finances, as well as the potential implications of its default and legislation changes on other deals and issuers. =================== K A Z A K H S T A N =================== AGROTECHSERVICE LLP: Jambyl Court Starts Bankruptcy Procedure ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl Region commenced bankruptcy proceedings against LLP Agrotechservice on Dec. 1, 2006. ALFA-MARKET LLP: Creditors Must File Claims by February 15 ---------------------------------------------------------- LLP Alfa-Market has declared insolvency. Creditors have until Feb. 15 to submit written proofs of claim to: LLP Alfa-Market Alihanov Str. 14b Karaganda Karaganda Region Kazakhstan ALMAT ENGINEERING: Claims Filing Period Ends February 15 -------------------------------------------------------- LLP Almat Engineering has declared insolvency. Creditors have until Feb. 15 to submit written proofs of claim to: LLP Almat Engineering Jeltoksan Str. 12 Almaty, Kazakhstan ALMATY JEEP: Proof of Claim Deadline Slated for February 15 ----------------------------------------------------------- LLP Almaty Jeep Service has declared insolvency. Creditors have until Feb. 15 to submit written proofs of claim to: LLP Almaty Jeep Service Tole bi Str. 299a Almaty, Kazakhstan ALTYN-AIMAK: East Kazakhstan Court Opens Bankruptcy Proceedings --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region commenced bankruptcy proceedings against CJSC GMK Altyn-Aimak on Dec. 8, 2006. ASIA LTD: Proof of Claim Deadline Slated for February 15 -------------------------------------------------------- LLP Asia Ltd. Lux has declared insolvency. Creditors have until Feb. 15 to submit written proofs of claim to: LLP Asia Ltd. Lux Tohtarov Str. 80-51 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan DERABINY LLP: Creditors Must File Claims by February 15 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Derabiny insolvent. Creditors have until Feb. 15 to submit written proofs of claim to: LLP Derabiny Myzy Str. 2/1-214 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 HYDROAGROSERVICE LLP: Creditors' Claims Due February 14 ------------------------------------------------------- LLP Hydroagroservice has declared insolvency. Creditors have until Feb. 14 to submit written proofs of claim to: LLP Hydroagroservice Pahomov Str. 102 Pavlodar Pavlodar Region 140000 Kazakhstan NAIZA SECURITY: Claims Filing Period Ends February 15 ----------------------------------------------------- LLP Naiza Security has declared insolvency. Creditors have until Feb. 15 to submit written proofs of claim to: LLP Naiza Security Aldar Kose Str. 7 Almaty, Kazakhstan NAZYR LLP: Creditors Must File Claims by February 15 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Nazyr insolvent. Creditors have until Feb. 15 to submit written proofs of claim to: LLP Nazyr Myzy Str. 2/1-214 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-34-77 =================== K Y R G Y Z S T A N =================== GIARETA LLC: Claims Filing Period Ends February 23 -------------------------------------------------- LLC Giareta has declared insolvency. Creditors have until Feb. 23 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 97-48-42. I-T SERVICE-OSH: Creditors' Claims Due February 22 -------------------------------------------------- LLC I-T Service-Osh (INN 02110200410065) has declared insolvency. Creditors have until Feb. 22 to submit written proofs of claim. Inquiries can be addressed to (+996 3222) 5-32-12. OMEGA SOFT: Creditors Must File Claims by Feb 23 ------------------------------------------------ LLC Omega Soft has declared insolvency. Creditors have until Feb. 23 to submit written proofs of claim to: Micro District Asanbai, 33-20 Bishkek, Kyrgyzstan Tel: (+996 312) 46-82-52 TOHTOZAN LLC: Creditors' Meeting Scheduled for January 29 --------------------------------------------------------- Creditors of LLC Tohtozan will convene at 11:00 a.m. on Jan. 29 at: Room 318 Molodaya Gvardiya Ave. 27 Bishkek, Kyrgyzstan The Inter-District Court of Bishkek for Economic Issues declared LLC Tohtozan (Case No.ED-349/06 mbs5) insolvent on June 1, 2006. Subsequently, bankruptcy proceedings were introduced at the company. Creditors must submit their proofs of claim and be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. The Temporary Insolvency Manager is: Mr. Kazakbai Shambetov Tel: (+996 312) 65-58-61 =================== L U X E M B O U R G =================== ELEX ALPHA: Moody's Rates EUR16.5-Mln Class E Notes at Ba3 ---------------------------------------------------------- Moody's assigned definitive credit ratings to six classes of notes issued on Dec. 21, 2006 by eleX Alpha S.A., a Luxembourg special purpose company. The ratings are: -- EUR60-million Class A-1 Senior Secured Revolving Floating Rate Notes, due 2023: Aaa; -- EUR133.500-million Class A-2 Senior Secured Delayed Draw Floating Rate Notes, due 2023: Aaa; -- EUR28.5-million Class B Senior Secured Floating Rate Notes, due 2023: Aa2; -- EUR15-million Class C Senior Secured Deferrable Floating Rate Notes, due 2023: A2; -- EUR16.5-million Class D Senior Secured Deferrable Floating Rate Notes, due 2023: Baa3; and -- EUR16.5-million Class E Senior Secured Deferrable Floating Rate Notes, due 2023: Ba3. -- EUR30-million Subordinated Notes, due 2023 have also been issued, but those notes are not rated by Moody's. The foregoing definitive ratings address the expected loss posed to investors by the legal final maturity in 2023. Moody's definitive ratings address only the credit risks associated with the transaction. Other non-credit risks, such as those associated with the timing of principal prepayments and other market risks, have not been addressed and may have a significant effect on yield to investors. These definitive ratings are based upon: 1. An assessment of the eligibility criteria and portfolio guidelines applicable to the future additions to the portfolio; 2. The protection against losses through the subordination of the more junior classes of notes to the more senior classes of notes; 3. The overcollateralisation of the notes; 4. The analysis of the foreign currency exchange risk involved in the transaction; 5. The expertise of DWS Finanz-Service GmbH as a collateral adviser; and 6. The legal and structural integrity of the issue. This transaction is a high yield collateralized loan obligation related to a collateral portfolio of approximately EUR290- million, comprised primarily of European senior secured debt obligations, second lien loans and mezzanine obligations. This portfolio is dynamically managed with DWS Finanz-Service GmbH acting in the capacity of collateral adviser to the Issuer. This portfolio has been partially acquired at the closing date and will be partially acquired during the 6 month ramp-up period in compliance with portfolio. Thereafter, the portfolio of loans will be actively managed pursuant to the advice of the collateral adviser to buy or sell assets in the portfolio. Any addition or removal of assets will be subject to a number of portfolio criteria. The transaction was arranged by Barclays Capital. EVRAZ GROUP: CFIUS Completes Review on Oregon Steel Takeover ------------------------------------------------------------ Evraz Group S.A. disclosed that the Committee on Foreign Investment in the United States has concluded its review relating to the company's proposed acquisition of Oregon Steel Mills Inc. without the need for further investigation under the Exon-Florio Amendment. Accordingly, the condition to Evraz's pending cash tender offer relating to the review of the proposed acquisition by CFIUS has been satisfied. In addition, Evraz disclosed that it was waiving the condition to the tender offer requiring the expiration or termination of the International Traffic in Arms Regulations notification period. Following a careful review of the existing facts and circumstances, including the results of the CFIUS review of the transaction, Evraz determined that the review being made pursuant to ITAR should not further impact the structure of the transaction or the timing of its closure. As a result, Evraz further disclosed that the cash tender offer by its wholly owned subsidiary Oscar Acquisition Merger Sub, Inc. to purchase all outstanding shares of common stock -- including the associated preferred stock purchase rights -- of Oregon Steel is being extended until 5:00 p.m., New York City time, on Jan. 12 unless further extended or terminated. Assuming that the minimum tender condition is satisfied at that time, Evraz anticipates that the tender offer will close at 5:00 p.m., New York City time, on Jan. 12. The tender offer had previously been scheduled to expire at 5:00 p.m., New York City time, on Jan. 9. Evraz and Oscar Acquisition Merger Sub Inc. have been advised by Mellon Investor Services LLC, the depositary for the tender offer, that as of 4:00 p.m., New York City time, on Jan. 9, stockholders of Oregon Steel had tendered into the tender offer 13,111,392 shares of Oregon Steel common stock, representing approximately 36.6% of the outstanding shares of common stock of Oregon Steel. The tender offer is being made pursuant to a previously disclosed merger agreement among Evraz, Oscar Acquisition Merger Sub Inc. and Oregon Steel dated Nov. 20, 2006. Upon the successful closing of the tender offer, Oregon Steel stockholders would receive US$63.25 in cash for each share of Oregon Steel common stock tendered in the tender offer, less any required withholding taxes. Following the purchase of shares in the tender offer, Oregon Steel would become a subsidiary of Evraz. Except as described in this disclosure, all of the other terms and conditions of the tender offer remain unchanged. Under the merger agreement, if all of the conditions to the tender offer are not satisfied as of any expiration date, Evraz will have the right, and under certain circumstances, may be required, to further extend the tender offer. About Evraz Headquartered in Luxembourg, Evraz Group S.A. -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in Sverdlovsk region and two mills in Kemerovo region. * * * As reported in the TCR-Europe on Nov. 23, 2006, Fitch Ratings affirmed Luxembourg-based Evraz Group SA's Issuer Default and senior unsecured ratings at BB and its Short-term rating at B. At the same time, Fitch has affirmed the ratings of Mastercroft Ltd.- Evraz's core subsidiary with most of its assets concentrated in Russia- at Issuer Default BB and Short-term B. Evraz Securities SA's senior unsecured rating is affirmed at BB. Fitch said the Outlooks on the Issuer Default ratings are Stable. Evraz Group's 8-1/4% notes due November 2015 has been given by Moody's Investors Service's (P)B2 rating, Standard & Poor's B+ rating and Fitch's BB- rating. ===================== N E T H E R L A N D S ===================== ACXIOM CORP: Enhances Retail Solutions with Equitec Acquisition --------------------------------------------------------------- Acxiom Corp. has expanded and enhanced its retail business solution capabilities with the acquisition of Equitec, based in Cleveland, Ohio. The acquisition pairs Acxiom with Equitec, a business with strong marketing and merchandizing optimization expertise in the retail industry. All Equitec principals are being retained and will continue to lead this practice in support of the company's retail market growth strategies. Terms of the asset purchase were not released. Acxiom expects the transaction to be accretive to earnings in fiscal 2008. "This acquisition enables Acxiom to offer a unique combination of custom consulting and analysis, deep customer insight and standardized assessment that accelerates financial return for retailers," said Acxiom Company Leader Charles D. Morgan. "Retailers will be able to confidently adjust merchandise assortments, to better predict market and store potential, to accurately assess new product launch opportunities and to clearly identify underserved markets and segments, all derived from the unique needs of consumers in individual store trading areas." The acquisition solidifies a successful business relationship that dates to 1999 when the two companies initiated the Market Advantage joint venture. That experience generated numerous client results including: -- the generation of US$14 million in new business on a US$100 million base; -- a reduction of US$17 million in working capital in the first year of an allocation re-program; and -- identification of US$160 million in revenue in underserved markets for a leading specialty retailer. "Retail is increasingly a difficult business in which to prosper," said Mike Henry, Chief Executive Officer and founder of Equitec. "It's no longer good enough to know 'what's selling;' increasingly 'who's buying' matters more. Progressive retailers will locate stores, adjust their formats and allocate and assort merchandise more frequently through the lens of deep consumer insight." "Acxiom now has the capability to diagnose, build, deliver and leverage solutions that enable retailers to respond more confidently and accurately to consumer buying behavior within current or planned trading areas," said Tim Suther, Acxiom Retail Client Services Leader. "We will accelerate time-to- benefit for those retailers seeking to better understand consumer behavior and its influence upon merchandizing, marketing, operations decisions and profits." As Acxiom associates, Equitec's employees will continue to provide industry-leading service to clients in retail, manufacturing and travel sectors. Notable Equitec clients include: -- Black & Decker, -- The Home Depot, -- EarthLink, -- General Electric, -- KB Home, -- Masco Companies, -- Sabre Holdings, -- Saks and -- Travelocity. About Acxiom Corp. Based in Little Rock, Arkansas, Acxiom Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Germany, the Netherlands, Australia and China. * * * Standard & Poor's Ratings Services assigned on Sept. 6, 2006, its loan and recovery ratings to Little Rock, Arkansas-based Acxiom Corp.'s proposed US$800 million secured first-lien financing. The first-lien facilities consist of a US$200 million revolving credit facility and a US$600 million term loan. They are rated 'BB' with a recovery rating of '2'. As reported in the Troubled Company Reporter on Aug. 25, 2006, Moody's Investors Service assigned a Ba2 rating to Acxiom Corporation's US$800 million senior secured credit facilities, while affirming its corporate family rating of Ba2. Moody's said the rating outlook is stable. KONINKLIJKE AHOLD: C. Schlicker Succeeds T. Schiano as Tops CEO --------------------------------------------------------------- Koninklijke Ahold disclosed that Giant-Carlisle/Tops CEO Tony Schiano is retiring after 34 years with Ahold companies, and that Carl Schlicker, currently Executive Vice President Sales and Marketing for Giant-Carlisle/Tops, has been appointed his successor. Mr. Schlicker will assume his new role on Feb. 1, 2007, reporting directly to Lawrence Benjamin, Chief Operating Officer of Ahold's U.S. operations. Mr. Schiano will remain with Giant- Carlisle/Tops until March 15, 2007 to allow for an effective transition. "Carl's broad experience and proven ability to deliver results position him especially well to lead the team at Giant- Carlisle/Tops," said Ahold President and CEO Anders Moberg. "I am pleased that he has agreed to take on this challenge and build upon the excellent work that Tony and the team have been doing for the business." Mr. Schlicker has spent his professional career working in the retail supermarket business and has been with various Ahold companies for 20 years. In 1986, he joined First National Supermarkets (later part of Edwards Food Stores) following positions at Acme and Pathmark. He has held a wide range of operational and commercial positions, serving since 2000 as Executive Vice President of Sales and Marketing for Giant- Carlisle/Tops. Mr. Schiano has held a number of senior executive positions at current and former Ahold companies, including Stop & Shop, BI- LO, and Edwards Super Food Stores, before becoming President and CEO of Giant-Carlisle in 1997 and assuming responsibility for Tops Markets in 2003. "After years of dedicated service, Tony leaves a great legacy of leadership. During his ten years as CEO of Giant-Carlisle, he and the team doubled the number of stores and delivered ten years of identical sales growth there" said Mr. Moberg. "On behalf of the Corporate Executive Board, I wish Tony an enjoyable retirement and him and his family all the best for the future." About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- http://www.ahold.com/ -- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * As reported in the TCR-Europe on Dec. 22, 2006, Standard & Poor's Ratings Services revised its outlook on Netherlands-based food retailer and food service distributor Koninklijke Ahold N.V. to positive from stable. At the same time, the 'BB+/B' long- and short-term corporate credit ratings were affirmed. Moody's Investors Service and Standard and Poor's has assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. LAMBDA FINANCE: Moody's Puts Low-B Ratings on Two Note Classes -------------------------------------------------------------- Moody's Investors Service assigned these provisional ratings related to Gracechurch Corporate Loans Series 2007-1 issued by Lambda Finance B.V.: -- GBP2,905-million Class A1 Secured Floating Rate Notes due 2031: (P)Aaa; -- GBP175-million Class AB1 Secured Floating Rate Notes due 2031: (P)Aaa; -- GBP80.5-million Class B1 Secured Floating Rate Notes due 2031: (P)Aa2; -- GBP94.5-million Class C1 Secured Floating Rate Notes due 2031: (P)A2; -- GBP59.5-million Class D1 Secured Floating Rate Notes due 2031: (P)Baa3; -- GBP70-million Class E1 Secured Floating Rate Notes due 2031: (P)Ba2; and -- GBP45.5-million Class F1 Secured Floating Rate Notes due 2031: (P)B2. GBP70-million of Class G Secured Floating Rate Notes will also be issued but will not be rated by Moody's. Each class of notes may be issued in GBP, EUR and USD. The amounts mentioned above are the sterling equivalent of the aggregate of each class of notes. The final currency composition will be decided upon closing. The provisional ratings of the notes are based upon: (1) An assessment of the credit quality of the underlying entities; (2) The loss protection provided by the subordination, if any, of the more junior ranking classes of notes issued by Lambda Finance B.V.; (3) The protection against losses furnished by the first loss (2 per cent) and the excess spread (0.65 per cent per annum); and (4) The legal and structural integrity of the transaction. Gracechurch Corporate Loans Series 2007-1 is a fully funded synthetic transaction, arranged by Barclays Bank PLC, in which investors are exposed to the credit risk related to a portfolio of loans extended by Barclays to UK SME companies. The credit risk transferred by Barclays Bank PLC through this transaction is related to a total portfolio of GBP3.5 billion. This reference pool is made up initially of 1434 separate obligors. Throughout the 3-year revolving period, Barclays can replenish the portfolio subject to satisfying certain criteria. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only represent Moody's preliminary opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the Notes. A final rating may differ from a provisional rating. =========== R U S S I A =========== AL'T CJSC: Creditors Must File Claims by February 16 ---------------------------------------------------- Creditors of CJSC Financial Company Al't have until Feb. 16 to submit written proofs of claim to: Y. Molokanov, Insolvency Manager Room 2006 Angliyskiy Pr. 3 St. Petersburg Region Russia The Arbitration Court of St. Petersburg and Leningrad Region Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-30988/06. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Financial Company Al't Razyezzhaya Str. 5 St. Petersburg Region Russia ALISA-MED CJSC: Creditors Must File Claims by February 16 --------------------------------------------------------- Creditors of CJSC Insurance Company Alisa-Med have until Feb. 16 to submit written proofs of claim to: M. Brylev, Insolvency Manager Post User Box 119 191123 St. Petersburg Region Russia The Arbitration Court of St. Petersburg and Leningrad Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-40283/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Insurance Company Alisa-Med Apartment 19 Kolomenskaya Str. 14 St. Petersburg Region Russia ANASHENSKOYE CJSC: Creditors Must File Claims by February 16 ------------------------------------------------------------ Creditors of CJSC Anashenskoye have until Feb. 16 to submit written proofs of claim to: B. Stepanov, Insolvency Manager Post User Box 28495 660020 Krasnoyarsk Region Russia The Arbitration Court of Krasnoyarsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-10734/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC Anashenskoye Oktyabrskaya Str. 18 Anash Novoselovskiy Region 662433 Krasnoyarsk Region Russia BAYKAL-RESORT CJSC: Bankruptcy Hearing Slated for April 12 ---------------------------------------------------------- The Arbitration Court of Irkutsk Region will convene at 10:00 a.m. on April 12 to hear the bankruptcy supervision procedure on CJSC Baykal-Resort. The case is docketed under Case No. A19-23739/06-29. The Temporary Insolvency Manager is: I. Rudnev F. Engelsa Str. 8-801 6640070 Irkutsk Region Russia The Arbitration Court of Irkutsk Region is located at: Room 303 Gagarina Avenue 70 664025 Irkutsk Region Russia The Debtor can be reached at: CJSC Baykal-Resort Shiryamova Str. 32 664081 Irkutsk Region Russia CEDAR OJSC: Creditors Must File Claims by February 16 ----------------------------------------------------- Creditors of Irkutskoye OJSC on Spirit and Liqueur Goods Production-Cedar (TIN 3800000213) have until Feb. 16 to submit written proofs of claim to: V. Polov, Insolvency Manager Rabochego Shtaba Str. 27 664001 Irkutsk Region Russia The Arbitration Court of Irkutsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A19-8833/06-29. The Arbitration Court of Irkutsk Region is located at: Room 303 Gagarina Avenue 70 664025 Irkutsk Region Russia The Debtor can be reached at: Irkutskoye OJSC on Spirit and Liqueur Goods Production-Cedar Rabochego Shtaba Str. 27 664001 Irkutsk Region Russia DALNEVOSTOCHNAYA FUEL: Creditors Must File Claims by February 16 ---------------------------------------------------------------- Creditors of LLC Dalnevostochnaya Fuel Company (TIN 2721068880) have until Feb. 16 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. A73-12142/2006-36. The Debtor can be reached at: LLC Dalnevostochnaya Fuel Company Sheronova Str. 56-302 Khabarovsk Region Russia EVRAZ GROUP: CFIUS Completes Review on Oregon Steel Takeover ------------------------------------------------------------ Evraz Group S.A. disclosed that the Committee on Foreign Investment in the United States has concluded its review relating to the company's proposed acquisition of Oregon Steel Mills Inc. without the need for further investigation under the Exon-Florio Amendment. Accordingly, the condition to Evraz's pending cash tender offer relating to the review of the proposed acquisition by CFIUS has been satisfied. In addition, Evraz disclosed that it was waiving the condition to the tender offer requiring the expiration or termination of the International Traffic in Arms Regulations notification period. Following a careful review of the existing facts and circumstances, including the results of the CFIUS review of the transaction, Evraz determined that the review being made pursuant to ITAR should not further impact the structure of the transaction or the timing of its closure. As a result, Evraz further disclosed that the cash tender offer by its wholly owned subsidiary Oscar Acquisition Merger Sub, Inc. to purchase all outstanding shares of common stock -- including the associated preferred stock purchase rights -- of Oregon Steel is being extended until 5:00 p.m., New York City time, on Jan. 12 unless further extended or terminated. Assuming that the minimum tender condition is satisfied at that time, Evraz anticipates that the tender offer will close at 5:00 p.m., New York City time, on Jan. 12. The tender offer had previously been scheduled to expire at 5:00 p.m., New York City time, on Jan. 9. Evraz and Oscar Acquisition Merger Sub Inc. have been advised by Mellon Investor Services LLC, the depositary for the tender offer, that as of 4:00 p.m., New York City time, on Jan. 9, stockholders of Oregon Steel had tendered into the tender offer 13,111,392 shares of Oregon Steel common stock, representing approximately 36.6% of the outstanding shares of common stock of Oregon Steel. The tender offer is being made pursuant to a previously disclosed merger agreement among Evraz, Oscar Acquisition Merger Sub Inc. and Oregon Steel dated Nov. 20, 2006. Upon the successful closing of the tender offer, Oregon Steel stockholders would receive US$63.25 in cash for each share of Oregon Steel common stock tendered in the tender offer, less any required withholding taxes. Following the purchase of shares in the tender offer, Oregon Steel would become a subsidiary of Evraz. Except as described in this disclosure, all of the other terms and conditions of the tender offer remain unchanged. Under the merger agreement, if all of the conditions to the tender offer are not satisfied as of any expiration date, Evraz will have the right, and under certain circumstances, may be required, to further extend the tender offer. About Evraz Headquartered in Luxembourg, Evraz Group S.A. -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in Sverdlovsk region and two mills in Kemerovo region. * * * As reported in the TCR-Europe on Nov. 23, 2006, Fitch Ratings affirmed Luxembourg-based Evraz Group SA's Issuer Default and senior unsecured ratings at BB and its Short-term rating at B. At the same time, Fitch has affirmed the ratings of Mastercroft Ltd.- Evraz's core subsidiary with most of its assets concentrated in Russia- at Issuer Default BB and Short-term B. Evraz Securities SA's senior unsecured rating is affirmed at BB. Fitch said the Outlooks on the Issuer Default ratings are Stable. Evraz Group's 8-1/4% notes due November 2015 has been given by Moody's Investors Service's (P)B2 rating, Standard & Poor's B+ rating and Fitch's BB- rating. GRANITE LLC: Creditors Must File Claims by February 16 ------------------------------------------------------ Creditors of LLC Granite (TIN 2710005261) have until Feb. 16 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. A73-12222/2006-39. The Debtor can be reached at: LLC Granite Tsentralnaya Str. 21 Chegdomyn Khabarovsk Region Russia GOSTINYJ DVOR: Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------ The Arbitration Court of St. Petersburg and Leningrad Region commenced bankruptcy supervision procedure on CJSC Trading House Gostinyj Dvor. The case is docketed under Case No. A56-26312/ 06. The Temporary Insolvency Manager is: I. Babenko Post User Box 6 194214 St. Petersburg Region Russia The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Trading House Gostinyj Dvor Moskovskaya Str. 25 Pushkin St. Petersburg Region Russia GUBDEN LLC: Bankruptcy Hearing Slated for November 7 ---------------------------------------------------- The Arbitration Court of Yamalo-Nenetskiy Autonomous Region will convene on Nov. 7 to hear the bankruptcy supervision procedure on LLC Gubden. The case is docketed under Case No. A81-3204/ 2006. The Temporary Insolvency Manager is: A. Kuzmin Post User Box 39 House 17 Panel 3 Gubkinskiy Tyumen Region 629830 Yamalo-Nenetskiy Autonomous Region Russia The Arbitration Court of Yamalo-Nenetskiy Autonomous Region is located at: Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Autonomous Region Russia The Debtor can be reached at: LLC Gubden Panel 1 Prom. Area Gubkinskiy 629830 Yamalo-Nenetskiy Autonomous Region Russia MAGADAN-SPIRIT-PROM: Creditors Must File Claims by February 16 -------------------------------------------------------------- Creditors of Magadan-Spirit-Prom (TIN 4909074085) have until Feb. 16 to submit written proofs of claim to: V. Monastyrskiy, Insolvency Manager Room 90 Proletarskaya Str., 12 685000 Magadan Region Russia The Arbitration Court of Magadan Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-37-2509/06-7b. The Debtor can be reached at: Magadan-Spirit-Prom Zaytseva Str. 3 685004 Magadan Region Russia MAGNITOGORSKIY FACTORY: Court Starts External Bankruptcy Process ---------------------------------------------------------------- The Arbitration Court of Chelyabinsk Region commenced external management bankruptcy procedure on OJSC Magnitogorskiy Factory of Metallurgic Engineering. The case is docketed under Case No. A 76-8958/2004-52-19. The Temporary Insolvency Manager is: T. Kazakina Kharkovskaya Str. 5 Magnitogorsk 455002 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: OJSC Magnitogorskiy Factory of Metallurgic Engineering Kharkovskaya Str. 5 Magnitogorsk 455002 Chelyabinsk Region Russia PARNAS CJSC: Court Names O. Elistratova as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Ms. O. Elistratova as Insolvency Manager for CJSC Building Company Parnas. She can be reached at: O. Elistratova Obvodnogo Kanala Str. 181 190103 St. Petersburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-58321/05. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Building Company Parnas 3rd Verkhniy Per. 4 Prom area Parnas 194292 St. Petersburg Region Russia RUSSIA OJSC: Creditors Must File Claims by February 16 ------------------------------------------------------ Creditors of OJSC Breeding Factory Russia have until Feb. 16 to submit written proofs of claim to: I. Dolomego, Insolvency Manager Sorginskaya Str. 45 Abakan 655007 Khakasiya Republic Russia The Arbitration Court of Khakasiya Republic commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A74-3379/2006. The Debtor can be reached at: OJSC Breeding Factory Russia Mira Str. 17 Novorossiyskoye 655665 Khakasiya Republic SITRONICS JSC: Forecasts Up to US$550-Mln Fresh Capital from IPO ---------------------------------------------------------------- Sitronics JSC expects to raise between US$500 million to US$550 million from its initial public offering scheduled in the first quarter of 2007, RIA Novosti reports. Alexander Boreiko, head of Sitronics's investor relations unit, said the company would use the IPO proceeds for its development. Mr. Boreiko added that number of shares to be offered would depend on the market condition at the time of the IPO. About Sitronics Headquartered in Moscow, Russia, JSC Sitronics -- http://www.sitronics.com/-- provides telecommunications solutions, IT solutions and microelectronic solutions in the CIS region with a rapidly growing presence in other EEMEA markets. Sistema controls the company. The company also operates in Russia, CIS countries, Eastern Europe, Middle East, Africa and North America. * * * Fitch Ratings assigned Sitronics JSC a Long-term IDR rating of B- with a Stable Outlook and an expected rating of B- to Sitronics' guaranteed up to US$200 million bond with a maturity of three years. The assignment of the final bond rating is contingent on receipt of final documents conforming to information already received. SUAL GROUP: Inks US$650-Million Credit Facility ----------------------------------------------- The SUAL Group signed a US$650-million five-year senior syndicated credit facility with BNP Paribas, Citigroup and Calyon S.A., Euroweek reports. The loan, which is in general syndication, would be completed by the end of January, Euroweek adds. About SUAL Headquartered in Moscow, Russia, Siberian-Urals Aluminium Company -- http://www.sual.com/-- produces and smelts aluminium and ranks amongst the world's top ten producers. It comprises 18 businesses that are located in nine Russian regions and in Ukraine, Zaporozhya City, are involved in the production of bauxite, alumina, primary aluminium, silicon, semi-finished and finished aluminium products. The Group's revenue for the year ended Dec. 31, 2005, was US$2.7 billion. It has 60,000 employees. * * * Standard & Poor's Ratings Services assigned its 'BB-'long-term corporate credit rating to SUAL International Ltd. The outlook is stable. Standard & Poor's also assigned its 'ruAA-' Russian national scale rating to SUAL. At the same time, Moody's Investors Service, assigned 'Ba3' corporate family rating to SUAL International Ltd. Outlook is stable. TATNEFT OAO: Board Approves Acquisition of AK Bars Bank Shares -------------------------------------------------------------- The Board of Directors of OAO Tatneft approved the company's acquisition of 3.6 billion additional shares of OAO AK BARS Bank at par value for the total consideration of RUR3.6 billion placed by the bank by way of open subscription. The company made the statutory filing on Jan. 4. About Tatneft Headquartered in Tatartan, Russia, Tatneft JSC -- http://www.tatneft.ru/eng/-- explores for, produces, refines and markets crude oil. The company operates a chain of retain gasoline filling stations and exports some of its petrochemical products to former Soviet Union countries and Europe. * * * As reported in the TCR-Europe on Nov. 23, 2006, Fitch Ratings upgraded Tatarstan-based Tatneft's Issuer Default rating to B+ from B and affirmed the Short-term rating at B. Fitch said the outlook remains Positive. As reported in the TCR-Europe on Aug. 28, 2006, Standard & Poor's Ratings Services withdrew its 'B-' long-term corporate credit rating on Russia-based oil company Tatneft OAO. The rating had been placed on CreditWatch with negative implications on April 14, due to a continuing lack of consistent information on the company's financial position. SEVERO-ANGARSKIY MINING: Bankruptcy Hearing Slated for April 12 --------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region will convene on April 12 to hear the bankruptcy supervision procedure on CJSC Severo-Angarskiy Mining and Smelting Factory. The case is docketed under Case No. A33-12365/2006. The Temporary Insolvency Manager is: S. Rozhdestvenskiy Post User Box 11951 660028 Krasnoyarsk Region Russia The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC Severo-Angarskiy Mining and Smelting Factory Razdolinsk Motyginskiy Region Krasnoyarsk Region Russia ========= S P A I N ========= BANCAJA 10: Moody's Junks EUR31-Million Series E Notes ------------------------------------------------------ Moody's Investors Service assigned provisional credit ratings to seven series of Bonos de Titulizacion de Activos to be issued by Bancaja 10 Fondo de Titulizacion de Activos, a Spanish Asset Securitization Fund that has been created by Europea de Titulizacion, S.G.F.T, S.A. Moody's has assigned these ratings: -- EUR420-million Series A1 notes: (P)Aaa; -- EUR1,537-million Series A2 notes: (P)Aaa; -- EUR500-million Series A3 notes: (P)Aaa; -- EUR65-million Series B notes: (P)A1; -- EUR52-million Series C notes: (P)Baa3; -- EUR26-million Series D notes: (P)Ba3; and -- EUR31-million Series E notes: (P)Ca. Moody's provisional ratings address the expected loss posed to investors by the legal final maturity. The rating agency believes that the structure of the Bancaja 10 notes allows for timely payment of interest and ultimate payment of principal at par, on or before the final legal maturity date, and not at any other expected maturity date. The ratings do not address the full redemption of the notes on the expected maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. According to Moody's, this deal benefits from strong features, including: (1) interest rate swaps partially covering the interest rate risk; (2) a reserve fund that is fully funded upfront to cover a potential shortfall in interest and principal; (3) an 18-month artificial write-off mechanism; (4) the securing of 100% of loans by residential mortgages; and (5) the quality of Bancaja as originator and servicer. However, Moody's notes that the deal also has weak features, including: (1) the fact that loans over 80% LTV comprise 35% of the total portfolio; (2) the strong geographical concentration (in the region of Valencia), which is an expected consequence of the originator's position as one of the main savings banks within this region; and (3) some of the debtors have the possibility of enjoying an automatic reduction in their margin in cases where they have been cross-sold other Bancaja products. These increased risks were reflected in Moody's Credit Enhancement calculation. This transaction marks the tenth time that Bancaja has tapped the RMBS market. The products being securitized are first-lien mortgage loans granted to individuals, all of whom will use these loans to acquire or refurbish properties located in Spain. All of the mortgage loans were originated by Bancaja, which will continue to service them. As of November 2006, the provisional portfolio comprised 21616 loans for a total amount of EUR3,134,353,302.93. The original weighted average LTV is 78.43%. The current WALTV is 76.50%. The average loan size is EUR145,000. All the loans are paid through monthly instalments, which are debited to accounts held by the debtors at Bancaja. Moody's bases its ratings on: (1) an evaluation of the underlying portfolio of mortgage loans securing the structure, and on (2) the transaction's structural protections, which include the subordination, the strength of the cash flows (including the reserve fund) and any excess spread available to cover losses. Moody's issues provisional ratings in advance of the final sale of financial instruments, but these ratings only represent Moody's preliminary credit opinions. Upon a conclusive review of the transaction and associated documentation, the rating agency will endeavour to assign a definitive rating. A definitive rating may differ from a provisional rating. ===================== S W I T Z E R L A N D ===================== BOX-TRANS JSC: Zug Court Suspends Bankruptcy Proceedings -------------------------------------------------------- The Bankruptcy Court of Zug suspended the bankruptcy proceedings of JSC Box-Trans on Dec. 11, 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 Aug. 29, 2006, can be reached at: JSC Box-Trans Baarerstrasse 75 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland GASTHAUS GUBEL: Zug Court Starts Bankruptcy Proceedings ------------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against LLC Gasthaus Gubel on Oct. 30, 2006. The Debtor can be reached at: LLC Gasthaus Gubel Gubel 6313 Menzingen Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland HAMACO JSC: Zug Court Starts Bankruptcy Proceedings --------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against JSC HAMACO on Nov. 22, 2006. The Debtor can be reached at: JSC HAMACO Industriestrasse 13 b 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland I.P.C. INNOVATED: Zug Court Starts Bankruptcy Proceedings --------------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against JSC I.P.C. Innovated Product Concepts on Nov. 22, 2006. The Debtor can be reached at: JSC I.P.C. Innovated Product Concepts Alpenstrasse 15 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland KIGA INVEST: Zug Court Starts Bankruptcy Proceedings ---------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against JSC KIGA Invest on Oct. 24, 2006. The Debtor can be reached at: JSC KIGA Invest 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland KOY GASTRO: Zug Court Suspends Bankruptcy Proceedings ----------------------------------------------------- The Bankruptcy Court of Zug suspended the bankruptcy proceedings of LLC Koy Gastro on Dec. 11, 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 July 11, 2006, can be reached at: LLC Koy Gastro Lettenstrasse 11 6343 Rotkreuz Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland KUCHE + BAD: Olten Court Suspends Bankruptcy Proceedings -------------------------------------------------------- The Bankruptcy Court of Olten in Solothurn suspended the bankruptcy proceedings of LLC Kuche + Bad M & M on Dec. 4, 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. 29, 2006, can be reached at: LLC Kuche + Bad M & M Bahnhofstrasse 12 4702 Oensingen Switzerland The Bankruptcy Service of Olten can be reached at: Bankruptcy Service of Olten 4702 Oensingen Solothurn Switzerland RC-MODELLBAU - SHOP.CH: Zug Court Suspends Bankruptcy Process ------------------------------------------------------------- The Bankruptcy Court of Zug suspended the bankruptcy proceedings of LLC rc-modellbau-shop.ch on Dec. 11, 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 CHF7,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on July 18, 2006, can be reached at: LLC rc-modellbau-shop.ch Schutzengelstrasse 57 6340 Baar Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland RODA BAU: Zug Court Suspends Bankruptcy Proceedings --------------------------------------------------- The Bankruptcy Court of Zug suspended the bankruptcy proceedings of JSC Roda Bau on Dec. 11, 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 June 14, 2005, can be reached at: JSC Roda Bau 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland THURTECH JSC: Court Suspends & Closes Bankruptcy Process -------------------------------------------------------- The Bankruptcy Court of St. Gallen has suspended and closed the bankruptcy proceedings of JSC Thurtech due to a lack of funds. A liquidation process will be conducted according to the creditors' requirements at: JSC Thurtech Industrie Burerfeld 16a 9245 Oberburen Switzerland The Bankruptcy Service of St. Gallen can be reached at: Bankruptcy Service of St. Gallen Office Oberuzwil Urs Ghirlanda 9242 Oberuzwil Switzerland ============= U K R A I N E ============= AGROKONTRAKT-KOVEL: Claims Filing Deadline Set January 24 --------------------------------------------------------- Creditors of LLC Agrokontrakt-Kovel (code EDRPOU 31462299) have until Jan. 24 to submit written proofs of claim to: M. Zinchuk, Liquidator Stepan Bandera Str. 5 Kovel 45000 Volinska Region Ukraine The Economic Court of Volinska Region commenced bankruptcy proceedings against the company on Dec. 12, 2006, after finding it insolvent. The case is docketed under Case No. 4/124-B. The Economic Court of Volinska Region is located at: Voli Avenue 54-a 43010 Lutsk Volinska Region Ukraine The Debtor can be reached at: LLC Agrokontrakt-Kovel Privokzalnaya Square 1-A Kovel 45000 Volinska Region Ukraine Zinchuk M. /Liquidator EUROGATE-UKRAINE: Creditors Must Submit Claims by January 25 ------------------------------------------------------------ Creditors of LLC Eurogate-Ukraine (code EDRPOU 32345854) have until Jan. 25 to submit written proofs of claim to: State Tax Inspection in Desnianka Region, Liquidator Zakrevskiy Str. 41 02217 Kiev Region Ukraine The Economic Court of Kiev Region commenced bankruptcy proceedings against the company on Oct. 10, 2006, after finding it insolvent. The case is docketed under Case No. 23/448-b. The Economic Court of Kiev Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kiev Region Ukraine The Debtor can be reached at: LLC Eurogate-Ukraine Magnitogorskaya 1 02094 Kiev Region Ukraine GLUHOV BREAD: Deadline for Submission of Claims Set January 24 -------------------------------------------------------------- Creditors of OJSC Gluhov Bread Receiving Enterprise (code EDRPOU 00955905) have until Jan. 24 to submit written proofs of claim to: Natalia Ivanenko, Liquidator Proletarian Str. 35 40030 Sumy Region Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company on Dec. 11, 2006, after finding it insolvent. The case is docketed under Case No. 12/97. The Economic Court of Sumy Region is located at: Shevchenko Avenue 18/1 40030 Sumy Region Ukraine The Debtor can be reached at: OJSC Gluhov Bread Receiving Enterprise Industrial Str. 4 Gluhov 41400 Sumy Region Ukraine INTER-FILTR: Creditors Must Submit Claims by January 25 ------------------------------------------------------- Creditors of LLC Inter-Filtr (code EDRPOU 30366464) have until Jan. 25 to submit written proofs of claim to: State Tax Inspection in Desnianka Region, Liquidator Zakrevskiy Str. 41 02217 Kiev Region Ukraine The Economic Court of Kiev Region commenced bankruptcy proceedings against the company on Aug. 30, 2006, after finding it insolvent. The case is docketed under Case No. 23/305-b. The Economic Court of Kiev Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kiev Region Ukraine The Debtor can be reached at: LLC Inter-Filtr Kurchatov Str. 14-a 02156 Kiev Region Ukraine NEDRIGAYLO MIXED: Claims Filing Deadline Set January 24 ------------------------------------------------------- Creditors of Nedrigaylo Mixed Fodder Plant (code EDRPOU 31952139) have until Jan. 24 to submit written proofs of claim to: Vadim Zakorko, Temporary Insolvency Manager Rybalko Str. 2 40011 Sumy Region Ukraine The Economic Court of Sumy Region commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 7/185-06. The Economic Court of Sumy Region is located at: Shevchenko Avenue 18/1 40030 Sumy Region Ukraine The Debtor can be reached at: Nedrigaylo Mixed Fodder Plant Stroitelnaya Str. 1 Zasullia Nedrigaylo District 42100 Sumy Region Ukraine S.E.A. LTD: Creditors Must Submit Claims by January 25 ------------------------------------------------------ Creditors of LLC S.E.A. Ltd. (code EDRPOU 22898549) have until Jan. 25 to submit written proofs of claim to: State Tax Inspection in Desnianka Region, Liquidator Zakrevskiy Str. 41 02217 Kiev Region Ukraine The Economic Court of Kiev Region commenced bankruptcy proceedings against the company on Aug. 8, 2006, after finding it insolvent. The case is docketed under Case No. 23/307-b. The Economic Court of Kiev Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kiev Region Ukraine The Debtor can be reached at: LLC S.E.A. Ltd. Zakrevskiy Str. 15. 02217 Kiev Region Ukraine ZORIA LLC: Claims Filing Deadline Set January 24 ------------------------------------------------ Creditors of LLC Agrarian Firm Zoria (code EDRPOU 30811367) have until Jan. 24 to submit written proofs of claim to: Vadim Zakorko, Temporary Insolvency Manager Rybalko Str. 2 40011 Sumy Region Ukraine The Economic Court of Sumy Region commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 8/186-06. The Economic Court of Sumy Region is located at: Shevchenko Avenue 18/1 40030 Sumy Region Ukraine The Debtor can be reached at: LLC Agrarian Firm Zoria Proletarian Str. 123 Pisarevka Sumy District 42320 Sumy Region Ukraine =========================== U N I T E D K I N G D O M =========================== COLLINS & AIKMAN: Seeks Court Nod on Lease Agreement Amendment -------------------------------------------------------------- Collins and Aikman Corp. and its debtor-affiliates asked the U.S. Bankruptcy Court for the Eastern District of Michigan to approve the amendment of their lease agreement with North Pointe Investors LLC and authorize them to pay the contingency amount of US$59,060. The Debtors have been evaluating their real property leases and interests since the Petition Date. During the course of the evaluation, the Debtors recognized that their lease on 91,986 square feet of office and manufacturing space in the building located at 11149 Lindbergh Business Court, St. Louis, Missouri, was scheduled to expire on April 30, 2007. Under the terms of the existing Lease, the Debtors are required to vacate the premises by Dec. 31, 2006, if the Debtors do not agree to extend the lease term beyond the expiration date. The Debtors have determined that the premises is necessary to their businesses and operations through the Expiration Date, Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, tells the Court. The Debtors use the Premises as a final assembly point for a particular component that DaimlerChrysler Corp. installs in its manufacture of minivans at a nearby DCC factory. The Debtors are required to produce the parts under postpetition purchase orders with DCC and the Debtors' recent agreement with their principal customers. Accordingly, the Debtors engaged in a series of good-faith, arm's-length negotiations with the Lessor, North Pointe Investors LLC, to amend the Existing Lease to grant the Debtors the right to remain in possession of the Premises until the Expiration Date without requiring the Debtors to renew or extend the Lease term. The Amendment will be the third lease amendment with respect to the Premises. TYL Real Estate Inc., and Textron Automotive Exteriors entered into a lease agreement dated Dec. 1, 1994. The first amendment to the lease dated Aug. 3, 1999, was between BLB Real Estate L.L.C., as successor to TYL, and Textron Automotive Company Inc. The second amendment dated Oct. 31, 2004, was between North Pointe, as successor to BLB, and Collins & Aikman Products Co., Mr. Schrock informs the Court. Mr. Schrock asserts that if the Amendment is not approved, the Debtors will be forced to vacate the Premises that will terminate the assembly activities supported by the Premises; incur significant costs to move to an alternative location to replace the production at the Premises at the risk of significant, irreparable delays; or incur damages under postpetition purchase orders and the customer agreement. The significant terms of the Amendment include: * North Pointe will grant the Debtors the right to remain on the Premises until April 30, 2007, in exchange for US$59,060 to be paid by the Debtors on or before Jan. 18, 2007; * the Debtors' obligation to pay rent will continue until April 30, 2007; * the Lessor will be allowed to enter into a lease of the Premises to any third party provided that the third party tenant will not be allowed to occupy the Premises before May 1, 2007; * on April 30, 2007, or upon an earlier rejection of the Existing Lease, the Debtors will surrender up peaceable possession of the Premises in the same condition as the Premises are in on Nov. 1, 2006; reasonable wear and tear and casualty excepted; * in the event that the Debtors will remain in possession of the Premises beyond the expiration of the lease term, whether by limitation or forfeiture, the party will pay double the rent amount under the lease during the holdover period and will indemnify the Lessor from any and all loss, cost or expense suffered by the Lessor; and * the Amendment will be automatically null and void unless on or before Jan. 18, 2007, the Court enters an order providing that the Amendment is approved, and the automatic stay will be terminated so as to allow the Lessor to exercise any and all state law remedies with respect to the Existing Lease. About Collins & Aikman 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) COLLINS & AIKMAN: Closing Five North American Plants by March ------------------------------------------------------------- Collins & Aikman Corp. will close five plants in North America and cut more than 1,100 jobs by March 28. According to C&A spokesperson David Youngman, the affected plants, which have been deemed less likely to be sold, are located in Americus, Georgia; Dover and Farmington, New Hampshire; and Scarborough and Gananoque, Ontario. Collins must negotiate severance packages with the union-represented workers in some of the affected plants, which packages are subject to the Court's approval, Bloomberg News reports. The company's soft-trim business is being sold through a Court- monitored auction. The chosen lead bidder is undisclosed, and no auction date has been set. About Collins & Aikman 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. 49; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) DURA AUTOMOTIVE: Seeks Court Nod for Lease Rejection Procedures --------------------------------------------------------------- DURA Automotive Systems Inc. and its debtor affiliates, pursuant to Sections 365 and 554 of the Bankruptcy Code, seek the approval of the U.S. Bankruptcy Court for the District of Delaware for an expedited procedure for rejecting executory contracts and unexpired leases of personal and non-residential real property. Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Debtors are in the process of consolidating their operations, which may require exiting non-core and unprofitable locations, returning unnecessary equipment, and terminating burdensome contracts in order to minimize costs and strengthen the businesses. In connection therewith, the Debtors anticipate that, in a very short time, they will seek to reject a number of real property leases, personal property leases, and executory contracts. Absent expedited procedures for managing this process, the Debtors will inevitably suffer delays and resulting administrative costs, which could be significant, Mr. Collins avers. The Debtors request that these procedures be approved in connection with the rejection of any executory contract, lease, sublease, or interest in the lease or sublease during the course of their bankruptcy proceedings: a. The Debtors will file a notice to reject any executory contract, lease or sublease, or interest in the lease or sublease, pursuant to Section 365 and will serve the Notice, as well as the deadlines and procedures for filing objections to the Notice, via overnight delivery service upon: (i) the United States Trustee; (ii) counsel to the agent to the Debtors' prepetition secured lenders; (iii) counsel to the agent to the Debtors' postpetition secured lenders; (iv) counsel to the Official Committee of Unsecured Creditors; (v) the contract counter-party or landlord(s) affected by the Notice, and (vi) any other parties-in-interest to the executory contract or lease, including subtenants, if any, sought to be rejected by the Debtors. If the Notice is issued by the Debtors prior to the effective date of a plan of reorganization, the affected executory contract, lease, sublease or interest in the lease or sublease will be deemed to be subject to a motion to reject for all purposes. b. The Notice will set forth this information, to the best of the Debtors' knowledge, as applicable: (i) the street address of the real property underlying the lease or sublease, the interest in the personal property lease or sublease or the type of executory contract which the Debtors seek to reject; (ii) the Debtors' monthly payment obligation, if any, under the contract, lease or sublease or interest in the lease or sublease; (iii) the remaining term of the contract, lease or sublease or interest in the lease or sublease; (iv) the name and address of the contract counterparty, landlord or subtenant; (v) a general description of the terms of the executory contract or lease; and (vi) a disclosure describing the procedures for fling objections, if any. c. Should a party-in-interest object to the proposed rejection by the Debtors of an executory contract, lease or sublease, or interest in the lease or sublease, the party must file and serve a written objection so that the objection is filed with the Court and is actually received by these parties no later than 10 days after the date the Debtors serve the Notice: (i) counsel to the Debtors: Kirkland & Ellis LLP, 200 East Randolph Drive, Chicago, Illinois 60601, Attn: Ryan Blaine Bennett, Esq., and Richards, Layton & Finger, One Rodney Square, 920 N, King Street, Wilmington, Delaware 19801, Attention: Daniel J. DeFranceschi, Esq.; (ii) counsel to the Creditors Committee; and (iii) the Office of the United State Trustee. d. Absent an objection, the rejection of the executory contract, lease or sublease, or interest in the lease or sublease, will become effective 10 days from the date the Notice was served on the Service Parties without further notice, hearing or order of the Court; provided, however, that with respect to leases or subleases for non- residential real property, the rejection will become effective on the later of: (x) the Rejection Date or (y) the date the Debtors unequivocally relinquished control of the premises to the affected landlord by turning over keys or "key codes" to the affected landlord. e. If a timely objection is filed that cannot be resolved, the Court will schedule a hearing to consider the objection only with respect to the rejection of any executory contract, lease or sublease, or interest in the lease or sublease, as to which an objection is properly filed and served. If the Court upholds the objection and determines the effective date of rejection of the executory contract, lease or sublease, or interest in the lease or sublease, that date will be the rejection date. If the objection is overruled or withdrawn or the Court does not determine the date of rejection, the rejection date of the lease, sublease or interest will be deemed to have occurred on the Rejection Date or NRP Lease Rejection Date, as applicable. f. If the Debtors have deposited funds with a lessor or contract counterparty as a security deposit or other arrangement, the lessor or contract counterparty may not set-off for otherwise use the deposit without the prior authority of the Court. g. With respect to any personal property of the Debtors located at any of the premises subject to any Notice, the Debtors will remove the property prior to the expiration of the period within which a party must file and serve a written objection. If they determine that the value of the property at a particular location has a de minimis value or cost of removing the property exceeds the value of the property, the Debtors will generally describe the property in the Notice and, absent a timely objection, the property will be deemed abandoned pursuant to Section 554, as is, where is, effective as of the date of the rejection of the underlying unexpired lease. The Debtors further request that counterparties to executory contracts, leases or subleases, or interests in the leases and subleases that are rejected pursuant to the Rejection Procedures be required to file a proof of claim relating to the rejection of the executory contract, lease or sublease, or interest in the lease or sublease, if any, by the later of: (a) the claims bar date established in the Chapter 11 cases, if any; and (b) 30 days after the Rejection Date. The Debtors believe that the Rejection Procedures provide a fair and efficient manner for rejecting contracts, leases, subleases, and interests in leases and subleases. Mr. Collins asserts that the Rejection Procedures will enable the Debtors to minimize their unnecessary postpetition obligations while also providing parties-in-interest with adequate notice of lease and contract rejections and an opportunity to object to the rejection within a definitive time period. Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). EASTMAN KODAK: Fitch Says Health Unit Sale May Improve Prospects ---------------------------------------------------------------- Fitch views the proposed sale of Eastman Kodak Company's Health Group for US$2.35 billion as potentially having modest positive credit implications for the company's senior unsecured debt based on recovery, as Kodak plans to use US$1.15 billion of the proceeds to fully repay its outstanding secured term debt. Fitch currently rates Kodak, with a Negative Rating Outlook: -- Issuer Default Rating B; -- Secured credit facilities BB/RR1; and -- Senior unsecured debt B-/RR5. Fitch believes the B- senior unsecured debt could potentially be upgraded one notch based on the prospects for higher recovery rates as a result of the proposed reduction of secured debt in the capital structure. However, in the absence of further material improvement in digital revenue growth and profitability, the IDR of B is likely to remain unchanged in the near term as the decline in total debt is offset by the loss of profits and business diversification benefits provided by the Health Group following its divestiture. Fitch will re-evaluate Kodak's ratings subsequent to the closing of the transaction, which is expected to occur in the first half of 2007, subject to regulatory and other approvals. The current recovery ratings and notching reflect Fitch's recovery expectations under a distressed scenario. Fitch believes that the enterprise value of the company, and thus, recovery rates for its creditors, will be maximized in a restructuring scenario rather than a liquidation scenario. Fitch applies a significant discount to Kodak's EBITDA and utilizes a 4 times distressed EBITDA multiple, which considers Kodak's current multiple and multiples paid for prior acquisitions, assuming that a stress event would indicate business model difficulties, resulting in multiple contraction under a stressed scenario. The current RR1 recovery rating for Kodak's secured bank facility reflects Fitch's belief that 100% recovery is realistic. As is standard with Fitch's recovery analysis, the revolver is fully drawn and cash balances fully depleted to reflect a stress event. The current RR5 Recovery Rating for the senior unsecured debt reflects Fitch's estimate that a recovery of only 10%-30% would be achievable. Fitch estimates the Health Group generated US$2.5 billion of revenue for the latest 12 months ended Sept. 30, 2006, and operating EBITDA of approximately US$475 million-US$500 million, or approximately 30% of Kodak's total operating EBITDA in the period. The Health Group is Kodak's second most profitable business segment after the steadily declining Film and Photofinishing Systems Group, accounting for US$286 million, or approximately 51%, of total segment operating profit in the LTM ended Sept. 30, 2006, based on Fitch's estimates. Pro forma for the divestiture of the Health Group, Fitch expects Kodak's total liquidity will increase to approximately US$3.1 billion-US$3.6 billion from US$2.1 billion as of Sept. 30, 2006, due to the seasonally strong fourth quarter and net proceeds after debt reduction from the sale of the Health Group. Fitch will monitor the outcome of Kodak's ongoing review of potential uses for the remaining proceeds from the divesture. Further liquidity is provided by an undrawn US$1 billion secured revolving credit facility due October 2010. Fitch estimates pro forma total debt will decline to US$1.6 billion from US$2.8 billion as of Dec. 31, 2006, including estimated secured debt reduction of US$550 million in the fourth quarter of 2006. Fitch estimates full-year 2006 net debt reduction of approximately US$740 million, indicating that Kodak is likely to achieve its full-year debt reduction goal of US$800 million. Fitch believes the decline in total debt offset by the divesture of the Health Group will decrease pro forma leverage to 1.6x compared with approximately 2.2x at Sept. 30, 2006, and 1.8x at Dec. 31, 2006. Pro forma interest coverage is expected to improve to approximately 12x from nearly 6x for the LTM ended Sept. 30, 2006, due to the redemption of variable-rate secured debt, which carries a higher interest rate than the remaining fixed-rate debt on the balance sheet. Fitch believes the company's near-term debt maturities are manageable, as the next material debt maturity is not until 2008, when US$274 million of debt matures. EASTMAN KODAK: S&P's B+ Credit Rating Remains on Watch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services said its ratings, including the 'B+' corporate credit rating, on Eastman Kodak Co. remain on CreditWatch with negative implications. The ratings were placed on CreditWatch on Aug. 2, 2006, following the company's announcement that it had reached an agreement to sell its Health Group to Onex Healthcare Holdings Inc., a subsidiary of Onex Corp., for up to US$2.55 billion. The purchase price is composed of US$2.35 billion in cash at closing and potential additional consideration of US$200 million depending on future operating performance of the Health Group. The company stated that it will use some of the proceeds to entirely pay off its US$1.15 billion outstanding senior secured term loan, but the use of the balance of the funds is still under management review. The transaction is expected to close in the first half of 2007. The Rochester, N.Y.-based imaging company had US$3.3 billion in debt as of Sept. 30, 2006. "Debt reduction from the proceeds of the transaction may not fully offset what we regard as a negative shift in the company's business portfolio," said Standard & Poor's credit analyst Tulip Lim. "We are concerned about this, given the weakened fundamentals of Kodak's traditional businesses and the importance of developing its digital operations." In resolving the CreditWatch listing, S&P will include an updated assessment of the company's near- and intermediate-term profit and cash flow potential in light of technology migration pressures, implementation challenges, and competition facing the remaining businesses. The evaluation will also consider the ultimate use of proceeds from the pending sale of Kodak's Health Group. ENMORE STAR: Nominates Liquidator from Hodgsons ----------------------------------------------- David Emanuel Merton Mond of Hodgsons was nominated Liquidator of Enmore Star Limited (t/a Zodiac Gifts) on Dec. 18, 2006, for the creditors' voluntary winding-up proceeding. The company can be reached at: Enmore Star Limited 52 Beaufort Avenue Bispham Blackpool Lancashire FY2 9HG United Kingdom Tel: 01253 357 938 ESSENTIAL GARDEN: Appoints Mark Reynolds as Liquidator ------------------------------------------------------ Mark Reynolds of Valentine & Co. was appointed Liquidator of Essential Garden Limited on Dec. 13, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Valentine & Co. 4 Dancastle Court 14 Arcadia Avenue London N3 2HS United Kingdom EU EMPLOYMENT: Names Liquidator to Wind Up Business --------------------------------------------------- Eileen T. F. Sale of Sale Smith & Co. Limited was appointed Liquidator of EU Employment Limited on Dec. 15, 2006, for the creditors' voluntary winding-up procedure. The company ca n be reached at: EU Employment Limited 187 Arden Road Smethwick Birmingham West Midlands B67 6EN United Kingdom EXPANSE COMMERCIAL: Joint Liquidators Take Over Operations ---------------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss of Insol House were appointed Liquidators of Expanse Commercial Interiors Limited on Dec. 21, 2006, for the creditors' voluntary winding- up proceeding. Headquartered in Farnborough, England, Expanse Commercial Interiors Limited -- http://www.expansecommercial.com/-- provides office refurbishment services including AutoCAD design and advisory, survey and quotation. EXPRESS RECRUITMENT: E. J. Stonham Leads Liquidation Procedure -------------------------------------------------------------- E. J. Stonham of Stonham.Co was appointed Liquidator of Express Recruitment Services Ltd. on Dec. 18, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Stonham.Co 13 Southgate Chichester West Sussex PO19 1ES United Kingdom FASHIONLOG LIMITED: Brings In Liquidators from Vantis ----------------------------------------- ------------ G. Mummery and P. Atkinson of Vantis Redhead French Limited were appointed Joint Liquidators of Fashionlog Limited on Dec. 19, 2006, for the creditors' voluntary winding-up procedure. The Joint Liquidators can be reached at: Vantis Redhead French Limited 43-45 Butts Green Road Hornchurch Essex RM11 2JX United Kingdom FORD MOTOR: CEO Alan Mulally Considers Selling Jaguar Brand ----------------------------------------------------------- Ford Motor Co. CEO Alan Mulally revealed that he might consider selling the company's Jaguar brand, threatening about 8,000 car workers' jobs, The Scotsman reports. The Company launched "Way Forward," a turnaround plan that includes the sale of Aston Martin, in an effort to stem multi- billion-pound losses, states The Scotsman. Ford has explored strategic options for its Aston Martin sports-car unit in August, with particular emphasis on a potential sale of all or a portion of the unit. "All good businesses continually review their portfolio, and we will continue to evaluate our portfolio going forward," Mr. Mulally said. "I feel more confident now than when I arrived that we can create a viable Ford." However, he noted that it was a "critical time" for the whole car industry. As reported in the Troubled Company Reporter-Europe on Aug. 30, Sir Anthony Bamford, JC Bamford Excavators Ltd.'s chairman of the board, was looking at the possibility of buying the Jaguar brand from Ford. However, in a TCR-Europe report on Oct. 19, 2006, Mr. Bamford said he has abandoned plans of buying the Jaguar brand from Ford after executives from Ford Europe and the Premier Automotive Group, revealed that it has no intentions of selling the brand at the moment. According to Mr. Bamford, cited in the Financial Times, Ford was only interested in selling the Jaguar brand together with the profitable Land Rover operations. JC Bamford is a U.K.-based construction-machinery company. Mr. Bamford said that the brand has potential although Jaguar needs to cut ties with Land Rover for him to consider his plans further. Jaguar is part of the Premier Automotive Group -- the organization under which all of Ford's European brands are grouped -- which includes other brands like Volvo, Land Rover and Aston Martin. In Ford's second quarter results, the segment incurred a US$180 million net loss. The Company's management said the decline in earnings in the PAG segment primarily reflected unfavorable currency exchange related to the expiration of favorable hedges, adjustments to warranty accruals for prior model-year vehicles, mainly at Land Rover and Jaguar, and lower market share at Volvo associated with new model changeovers, offset partially by favorable product and market mix and lower overhead costs. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, including Mexico, 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 Corp. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, 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. FROSTMIST LTD: Appoints Liquidators to Wind Up Business ------------------------------------------------------- Jeremy Paul Oddie and Geoffrey Michael Weisgard were appointed Liquidators of Frostmist Ltd. (formerly Almorah Ltd.) on Dec. 6, 2006, for the creditors' voluntary winding-up proceeding. The company can be reached at: Frostmist Ltd. 35 Castle Street Southport Merseyside PR9 0NR United Kingdom Tel: 01704 500 878 Fax: 01204 365 073 GAP INC: Goldman Sachs Hiring Sparks Rumors on Strategic Options ---------------------------------------------------------------- The Gap Inc. hired Goldman Sachs Group Inc. last month, CNBC's David Faber states. According to reports, analysts speculated that Goldman Sachs's involvement with the clothing company could mean that Gap is either up for sale, will spin off its brands, or will undergo a leveraged buyout. The announcement also renewed speculation that Gap chief executive officer Paul Pressler and other senior executives' tenure are at an end, Reuters said. The company's shares surged yesterday to 11% before closing up at over 7% at US$20.26 per share. Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Forth & Towne and Piperlime brand names. Gap Inc. operates more than 3,100 stores in the United States, the United Kingdom, Canada, France, Ireland and Japan. In addition, Gap Inc. is expanding its international presence with franchise agreements for Gap and Banana Republic in Southeast Asia and the Middle East. * * * As reported in the Troubled Company Reporter on Nov. 21, 2006, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured ratings on San Francisco-based The Gap Inc. to 'BB+' from 'BBB-'. S&P said the outlook is stable. GAP INC: December Sales Down 4%; Comparable Store Sales Down 8% --------------------------------------------------------------- Gap Inc. discloses on Jan. 4, 2007, net sales of US$2.34 billion for the five-week period ended Dec. 30, 2006, which represents a 4% percent decrease compared with net sales of US$2.44 billion for the same period ended Dec. 31, 2005. The company's comparable store sales for December 2006 decreased 8% compared with a 9% decrease in December 2005. Comparable store sales by division for December 2006 were: * Gap North America: negative 9% versus negative 10% last year * Banana Republic North America: positive 2% versus negative 5% last year * Old Navy North America: negative 10% versus negative 10% last year * International: negative 8% versus negative 3% last year. "Although Banana Republic continued to make good progress in its turnaround, we continued to experience negative traffic trends at Gap and Old Navy," said Sabrina Simmons, senior vice president, corporate finance, Gap Inc. "Given the weak traffic trends, we needed to take significant action on promotions and markdowns at these two brands which drove Gap Inc.'s overall merchandise margins significantly below last year. We expect continued margin pressure into January as we work to clear remaining holiday product at Gap and Old Navy." Based on its holiday sales performance, the company said that it is revising its fiscal 2006 guidance. The company now expects full-year earnings per share to be US$0.83 to US$0.87 versus previous guidance of US$1.01 to US$1.06. Full-year operating margins are now expected to be about 7% and free cash flow is now expected to be about US$650 million for the year. The company reiterated that it expects the percent increase in inventory per square foot at the end of the fourth quarter of fiscal 2006 to be in the low-single-digits versus prior year. "We are clearly disappointed with Gap and Old Navy's holiday sales and overall performance for the year," said Paul Pressler, president and CEO, Gap Inc. "Given that we did not gain the traction we had expected, the management team, with the active involvement of our board of directors, is currently reviewing Gap and Old Navy's brand strategies. We are committed to making the necessary changes to improve performance." Year-to-date net sales of US$14.75 billion for the 48 weeks ended Dec. 30, 2006, decreased 2% compared with net sales of US$15.07 billion for the same period ended Dec. 31, 2005. The company's year-to-date comparable store sales decreased 7% compared with a 5% decrease in the prior year. As of Dec. 30, 2006, Gap Inc. operated 3,184 store locations compared with 3,126 store locations last year. About Gap Inc. Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Forth & Towne and Piperlime brand names. Gap Inc. operates more than 3,100 stores in the United States, the United Kingdom, Canada, France, Ireland and Japan. In addition, Gap Inc. is expanding its international presence with franchise agreements for Gap and Banana Republic in Southeast Asia and the Middle East. * * * As reported in the Troubled Company Reporter on Nov. 21, 2006, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured ratings on San Francisco-based The Gap Inc. to 'BB+' from 'BBB-'. S&P said the outlook is stable. GETTY IMAGES: Soliciting Consents to Amend Debentures ----------------------------------------------------- Getty Images Inc. solicited consents from the holders of record at the close of business on Jan. 4, 2007, of its outstanding 0.50% Convertible Subordinated Debentures, Series B due 2023 in the aggregate principal amount of US$265 million to an amendment to, and a waiver of an alleged or existing default or event of default under, the indenture governing the Debentures. On Nov. 9, 2006, Getty Images' Board of Directors had established a special committee to conduct an internal investigation relating to Getty Images' stock option grant practices and related accounting for stock option grants and that it would delay the filing of its Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2006, until the special committee's review is complete. Also on Nov. 29, 2006, Getty Images received notices of a purported default from holders who claim to hold more than 25% in principal amount of the outstanding Debentures asserting that Getty Images' failure to file its Third Quarter Form 10-Q by the prescribed filing date under SEC regulations was a default under Section 17.01 of the Indenture, which incorporates by reference Section 314(a) of the Trust Indenture Act of 1939. Getty Images does not believe that it has failed to perform any of its obligations under the Indenture, which does not contain an express covenant requiring Getty Images to provide the trustee under the Indenture or the holders with periodic reports, such as the Third Quarter Form 10-Q. While Section 314(a) of TIA is incorporated into the Indenture by virtue of Section 17.01 thereof, Getty Images does not believe that the TIA requires periodic reports to be filed with the SEC or provided within any prescribed period of time. Notwithstanding Getty Images' position regarding notices of default, it is seeking an amendment to, and a waiver of the alleged or existing default or event of default under, the Indenture. The proposed amendment to the Indenture would provide that no notice of default delivered to Getty Images on or prior to March 2, 2007, that specifies as the basis for the default a failure to file with the SEC the Third Quarter Form 10-Q and/or the company's Annual Report on Form 10-K for the year ended Dec. 31, 2006, as applicable, and to file the applicable reports with the trustee under the Indenture, will have any force or effect with respect to the exercise of remedies by the trustee or any holder of Debentures if Getty Images files the applicable reports on or prior to May 1, 2007. The Consent Solicitation also includes a waiver of any defaults and events of default under Section 17.01 of the Indenture that may exist as a result of its failure to file the Third Quarter Form 10-Q. Getty Images proposes to make a cash payment to consenting holders of the Debentures of US$5.00 per US$1,000 in aggregate principal amount of the Debentures held by such consenting holders, upon or promptly following expiration of the Consent Solicitation. Only registered holders of the Debentures on the Jan. 4, 2007, record date that validly deliver, and do not revoke, consents prior to 5:00 p.m. New York City time on Jan. 17, 2007, the expiration of the Consent Solicitation, will be eligible to receive the consent payment. The consummation of the Consent Solicitation (including the payment of the consent payment) is subject to the receipt of valid consents in respect of a majority in aggregate principal amount of all outstanding Debentures, the execution of the supplemental indenture by us and the trustee under the Indenture, and the absence of any existing or proposed law or regulation or any proceeding that would make unlawful or invalid or enjoin or delay the proposed amendment, the entering into of the supplemental indenture or the payment of the consent payment. The Consent Solicitation with respect to the Debentures may be extended or terminated by Getty Images at its option. Getty Images has retained Goldman, Sachs & Co. to serve as the Solicitation Agent and D.F. King & Co., Inc. to serve as Information Agent and Tabulation Agent for the Consent Solicitation. Requests for documents may be made directly to: D.F. King & Co., Inc. 48 Wall Street, 22nd Floor New York, New York Tel: 800-488-8095 (toll free) 212-269-5550 (collect) Questions regarding the solicitation of consents may be directed to: Goldman, Sachs & Co. Attention: Credit Liability Management Group Tel: 800-828-3182 (toll free) 212-357-0775 (collect) Headquartered in Seattle, Washington, Getty Images, Inc. -- http://corporate.gettyimages.com/-- creates and distributes visual content. The company has corporate offices in Australia, the United Kingdom and Argentina. * * * Moody's Investors Service upgraded the credit ratings of Getty Images, Inc. and changed the ratings outlook to stable from positive. The upgrade in the corporate family rating to Ba1 from Ba2 reflected Getty's leading market position, improving credit metrics, impressive operating margins and good secular growth trends in the stock imagery market. Moody's also upgraded its rating on the company's US$265 million series B convertible subordinated notes due 2023, to Ba2 from Ba3. As reported in the Troubled Company Reporter - Europe on Dec. 6, 2006, Standard & Poor's Ratings Services lowered its ratings on Seattle, Wash.-based visual imagery company Getty Images Inc., including lowering the corporate credit rating to 'B+' from 'BB', and placed the ratings on CreditWatch with developing implications. The rating and CreditWatch actions came after the company announced that it had received notices from bondholders that its delayed third-quarter SEC Form 10-Q filing constituted an event of default. CreditWatch with developing implications indicates that the rating could be either raised or lowered. As of Sept. 30, 2006, Getty had US$265 million of convertible notes outstanding. GRACECHURCH CORPORATE: Moody's Assigns Low-B Rating on Two Notes ---------------------------------------------------------------- Moody's Investors Service assigned these provisional ratings related to Gracechurch Corporate Loans Series 2007-1 issued by Lambda Finance B.V.: -- GBP2,905-million Class A1 Secured Floating Rate Notes due 2031: (P)Aaa; -- GBP175-million Class AB1 Secured Floating Rate Notes due 2031: (P)Aaa; -- GBP80.5-million Class B1 Secured Floating Rate Notes due 2031: (P)Aa2; -- GBP94.5-million Class C1 Secured Floating Rate Notes due 2031: (P)A2; -- GBP59.5-million Class D1 Secured Floating Rate Notes due 2031: (P)Baa3; -- GBP70-million Class E1 Secured Floating Rate Notes due 2031: (P)Ba2; and -- GBP45.5-million Class F1 Secured Floating Rate Notes due 2031: (P)B2. GBP70-million of Class G Secured Floating Rate Notes will also be issued but will not be rated by Moody's. Each class of notes may be issued in GBP, EUR and US$. The amounts mentioned above are the sterling equivalent of the aggregate of each class of notes. The final currency composition will be decided upon closing. The provisional ratings of the notes are based upon: (1) an assessment of the credit quality of the underlying entities; (2) the loss protection provided by the subordination, if any, of the more junior ranking classes of notes issued by Lambda Finance B.V.; (3) the protection against losses furnished by the first loss (2 per cent) and the excess spread (0.65 per cent per annum); and (4) the legal and structural integrity of the transaction. Gracechurch Corporate Loans Series 2007-1 is a fully funded synthetic transaction, arranged by Barclays Bank PLC, in which investors are exposed to the credit risk related to a portfolio of loans extended by Barclays to U.K. SME companies. The credit risk transferred by Barclays Bank PLC through this transaction is related to a total portfolio of GBP3.5 billion. This reference pool is made up initially of 1434 separate obligors. Throughout the 3-year revolving period, Barclays can replenish the portfolio subject to satisfying certain criteria. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only represent Moody's preliminary opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the Notes. A final rating may differ from a provisional rating. H M CONSULTING: Names Gagen Dulari Sharma Liquidator ---------------------------------------------------- Gagen Dulari Sharma of Sharma & Co. was appointed Liquidator of H M Consulting Limited on Dec. 7, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Sh arma & Co. 50 Newhall Street Birmingham B3 3QE United Kingdom HACKENTHORPE SOCIAL: Creditors' Claims Due January 31 ----------------------------------------------------- Creditors of Hackenthorpe Social Club Limited have until Jan. 31 to send in their names and addresses, together with particulars of their debts or claims to appointed Liquidator William Clive Swindell at: Yorkshire House 7 South Lane Holmfirth Huddersfield HD9 1HN United Kingdom HAIGHS OF NEWCASTLE: Creditors Confirm Liquidators' Appointment --------------------------------------------------------------- Creditors of Haighs of Newcastle Limited (formerly Business Machinery (Newcastle upon Tyne) Limited) confirmed Dec. 21, 2006, the appointment of Gordon Smythe Goldie and Allan David Kelly of Tait Walker as Joint Liquidators of the company. Tait Walker -- http://www.taitwalker.co.uk/-- provides financial advisory services that include corporate finance, audit and specialized audit, accounts, forensic accounting, outsourcing, business development, business taxes and VAT, company pension, schemes, company financial services, IT consultancy, business disposals and acquisitions. Haighs of Newcastle Limited can be reached at: 6 Sullivan Walk Hebburn Tyne An d Wear NE311YN United Kingdom Tel: 0191 483 3153 Fax: 0191 428 2619 HAMWORTHY ROYAL: Taps Liquidator from Begbies Traynor ----------------------------------------------------- Michael Francis Stevenson of Begbies Traynor was appointed Liquidator of Hamworthy Royal British Legion Club Limited on Dec. 14, 2006, for the creditors' voluntary winding-up proceeding. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Hamworthy Royal British Legion Club Limited can be reached at: 43 Blandford Road Hamworthy Poole Dorset BH15 4AZ United Kingdom Tel: 01202-673827 INSIDE EDGE: Hires Liquidator from Bridgers ------------------------------------------- John Arthur Kirkpatrick of Bridgers was appointed Liquidator of Inside Edge Solutions Limited (formerly Guerilla Recruitment Limited) on Dec. 21, 2006, for the creditors' voluntary winding- up proceeding. The Liquidator can be reached at: Bridgers 6C Church Street Reading Berkshire RG1 2SB United Kingdom IPG PERSONNEL: Nominates Mervyn E. Smith as Liquidator ------------------------------------------------------ Mervyn E. Smith was nominated Liquidator of IPG Personnel Consultants Limited (formerly IPG Technical Recruitment Ltd.) on Dec. 15, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: IPG Personnel Consultants Limited 294a High Street Sutton Surrey SM1 1PQ United Kingdom J ROUTLEDGE: Hires Gary Corbett to Liquidate Assets --------------------------------------------------- Gary Corbett of Milner Boardman & Partners was appointed Liquidator of J Routledge & Sons Limited on Dec. 13, 2006, for the creditors' voluntary winding-up proceeding. Headquartered in Widnes, England, J Routledge & Sons Limited -- http://www.j-routledge.co.uk/-- specializes in heavy industrial dismantling, demolition, and the decontamination of industrial, chemical and commercial buildings and land. JAMES PASS: Creditors' Claims Due January 30 -------------------------------------------- Creditors of James Pass & Company Limited have until Jan. 30 to send their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator C. H. I. Moore at: K J Watkin & Co. Emerald House 20-22 Anchor Road Aldridge Walsall United Kingdom The company can be reached at: James Pass & Company Limited 71 Smallbrook Queensway Birmingham B5 4HX United Kingdom Tel: 0121 643 7623 Fax: 0121 643 7623 JOHN HAMPDEN: Appoints Liquidators from Baker Tilly --------------------------------------------------- G. P. Bushby and G. E. B. Mander of Baker Tilly were appointed Liquidators of John Hampden Packaging Limited on Dec. 6, 2006, for the creditors' voluntary winding-up proceeding. Headquartered in Heanor, England, John Hampden Packaging Limited -- http://www.jhp.co.uk/-- supplies printed packaging to the fashion retail market. Products include leaflets, laminate, bar code tickets, shirt bands, shoe boxes, sock bands, among others. The company also provides digital proofing, automatic die- cutting, artwork, and other services. MALDEN MILLS: Sells Assets to Gordon Brothers Under Chapter 11 -------------------------------------------------------------- Malden Mills Industries Inc. disclosed Wednesday that its board of directors has unanimously voted to approve the sale of the company to Gordon Brothers Group of Boston, Massachusetts for US$44 million. Malden Mills will continue normal manufacturing operations at both its facilities in Lawrence, Massachusetts and Hudson, New Hampshire. In order to implement the sale, Malden Mills Industries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 process will provide an efficient environment for completion of the sale. The sale is subject to higher and better offers, and completion of the sale is expected by the end of February 2007, subject to court approval. GE Commercial Finance will be providing a debtor-in-possession financing facility, which ensures that the company has the working capital required for a seamless transition in operations to new ownership. Malden Mills CEO Michael Spillane said, "Over the past three years we have worked diligently to improve every aspect of the operational side of the business. Our on-time delivery, manufacturing quality, and product innovation have never been better. The sale of Malden Mills to Gordon Brothers Group transitions the company into a state of permanent ownership and financial stability. This financial transaction will significantly improve the Company's balance sheet enabling Malden Mills to continue to serve our customers in both the commercial and military markets." Meanwhile, Paul Halpern, Partner at Chrysalis Capital Partners, expressed Chrysalis' interest in acquiring the Debtor's assets. "Recent reports have stated that the sale of Malden Mills Industries Inc. to Gordon Brothers Group is near completion, pending approval from the U.S. Bankruptcy Court," Mr. Halpern said. "Chrysalis Capital Partners confirms that the sale is not complete and that Chrysalis continues to be interested in purchasing the assets of Malden Mills and operating the company. Chrysalis has submitted a similar offer to the owners of Malden Mills and is looking forward to participating in the auction." About Chrysalis Capital Chrysalis Capital Partners -- http://www.ccpfund.com/-- is a Philadelphia-based private equity firm with US$300 million in capital under management. Chrysalis focuses on 'special situation' investing such as divestitures, buyouts, turnarounds, financial restructurings, reorganizations, and recapitalizations in middle-market companies across a wide range of industries throughout the United States. Malden Mills Industries, Inc. - http://www.polartec.com/-- develops, manufactures, and markets Polartec(R) performance fabrics. Polartec(R) products range from lightweight wicking base layers to insulation to extreme weather protection and are utilized by the best clothing brands in the world. In addition, Polartec(R) fabrics are used extensively by all branches of the United States military including the Army, Navy, Marine Corps, Air Force, and Special Operations Forces. The company has operations in Germany, Spain, France and the U.K. MALDEN MILLS: Case Summary & 30 Largest Unsecured Creditors ----------------------------------------------------------- Lead Debtor: Malden Mills Industries, Inc. 46 Stafford Street Lawrence, MA 01842 Bankruptcy Case No.: Debtor affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- ADS Properties LLC 07-10049 AES Properties LLC 07-10050 Malden Mills Distributors 07-10051 Malden Mills GmbH Holding, Inc. 07-10052 Type of Business: Malden Mills develops, manufactures, and markets Polartec(R) performance fabrics. Polartec(R) products range from lightweight wicking base layers to insulation to extreme weather protection and are utilized by the best clothing brands in the world. In addition, Polartec(R) fabrics are used extensively by all branches of the United States military including the Army, Navy, Marine Corps, Air Force, and Special Operations Forces. The company also has operations in Germany, Spain, France and the U.K. See http://www.polartec.com/ Chapter 11 Petition Date: January 10, 2007 Court: District of Delaware (Delaware) Judge: Kevin Gross Debtors' Counsel: Laura Davis Jones, Esq. Michael Seidl, Esq. Pachulski, Stang, Ziehl Young, Jones & Weintraub, PC 919 North Market Street 17th Floor Wilmington, DE 19899-8705 Tel: (302) 652-4100 Fax: (302) 652-4400 Estimated Assets Estimated Debts ---------------- --------------- Malden Mills Industries, US$1 Million to More than Inc. US$100 Million US$100 Million ADS Properties LLC US$1 Million to More than US$100 Million US$100 Million AES Properties LLC US$1 Million to More than US$100 Million US$100 Million Malden Mills Distributors US$10,000 to More than US$100,000 US$100 Million Malden Mills GmbH Holding, Less than US$10,000 More than Inc. US$100 Million Debtors' Consolidated List of 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Rechtsanwalt Harald Bubhardt Note US$5,562,000 Ebersbach Gewerbering 8 02828 Gorlitz, Germany Tel: 13581-38-52-0 Fax: 49-(0) 351-88527-40 Aaron Feuerstein Contract Claim US$1,560,516 300 Kent Street Brookline, MA Fax: (617) 574-4112 City of Methuen Utility US$1,492,933 41 Pleasant Street Methuen, MA 01844-0397 Attn: Office of Tax Collector Fax: (978) 794-3240 Caterpillar Inc. Deficiency US$1,161,928 c/o Holland & Knight LLP 10 St. James Avenue Boston, MA 02116 Attn: Tara Myslinski Fax: (617) 523-6850 Unifi Textured Polyster LLC Trade US$304,254 P.O. Box 404617 Atlanta, GA 30384-4617 Attn: Terry Gore Tel: (336) 316-5634 Fax: (336) 316-5607 Outside Magazine Services US$168,588 National Grid Utility US$97,336 Rodale Services US$67,914 Solar Turbines Inc. Trade US$64,602 Avery Dennison Ris Trade US$58,669 Grant Thornton LLP Professional Fees US$52,833 BASF Corporation Trade US$51,510 Consoltex Inc. Utility US$44,897 The Crosby Group Services US$44,530 AV Sportswear Inc. Trade US$43,839 Advanced Computer Equipment Lease US$42,746 Services Inc. Sapona Manufacturing Trade US$40,511 Company Inc. Nail Communications Inc. Services US$39,416 Lowe Alpine Services US$39,270 Exeltor Corp. Utility US$28,592 Boehme Filatex Inc. Trade US$28,455 Sierra Magazine Services US$27,482 Alliance Airport Advertising Services US$26,989 Foster-Miller Inc. Trade US$24,920 UPS Supply Solutions Freight US$22,996 MDP Realty Associates LLC Trade US$22,365 Adco 131448 Canada Inc. Services US$21,750 Blue Fox Ned Graphics Inc. Trade US$21,727 Groz-Beckert USA Inc. Utility US$21,108 Backbone Media Services US$20,815 MALDEN MILLS: Organizational Meeting Scheduled on January 19 ------------------------------------------------------------ The U.S. Trustee for Region 3 will hold an organizational meeting to appoint an official committee of unsecured creditors in Malden Mills Industries, Inc. and its debtor-affiliates' chapter 11 cases at 10:00 a.m., on, Jan. 19, 2007, at Office of the United States Trustee, Room 2112, J. Caleb Boggs Federal Building, 844 North King Street in Wilmington, Delaware. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. However, a representative of the Debtors will attend and provide background information regarding the cases. Creditors interested in serving on a Committee should complete and return to the U.S. Trustee a statement indicating their willingness to serve on an official committee. Official creditors' committees, constituted under Section 1102 of the Bankruptcy Code, ordinarily consist of the seven largest creditors who are willing to serve on a committee. In some Chapter 11 cases, the U.S. Trustee is persuaded to appoint multiple creditors' committees. Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes that the reorganization of the Debtors is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. Headquartered in Lawrence, Massachusetts, Malden Mills Industries, Inc. -- http://www.polartec.com/-- develops, manufactures, and markets Polartec(R) performance fabrics. Polartec(R) products range from lightweight wicking base layers to insulation to extreme weather protection and are utilized by the best clothing brands in the world. In addition, Polartec(R) fabrics are used extensively by all branches of the United States military including the Army, Navy, Marine Corps, Air Force, and Special Operations Forces. The company also has operations in Germany, Spain, France and the U.K. The company and four of its affiliates filed for chapter 11 protection on Jan. 10, 2007 (Bankr. D. Del. Case Nos. 07-10048 through 07-10052). Laura Davis Jones, Esq., and Michael Seidl, Esq., at Pachulski, Stang, Ziehl Young, Jones & Weintraub, PC, represent the Debtors. When the Debtors filed for protection from their creditors, they listed estimated assets between $1 million to $100 million and estimated debts of more than $100 million. The Debtors' exclusive period to file a chapter 11 plan expires on May 10, 2007. REFCO INC: RCM Trustee Asks Court to Approve Bolton Settlement -------------------------------------------------------------- Marc S. Kirschner, the Chapter 11 Trustee of Refco Capital Markets, Ltd.'s estate, asked the U.S. Southern District of New York to approve his settlement agreement, dated Dec. 8, 2006, with certain affiliated entities and partnerships of Bolton Capital Planning LLC. BCP maintained trading, loan and margin accounts with RCM, Refco LLC, and Refco Securities LLC. The Bolton Entities consist of: * Kalkhoven/Pettit Trading Partners, L.P., * Kalkhoven/Pettit #2 Trading Partners, L.P., * PCMG Trading Partners XII, L.P., * Bolton Investment Group L.P., * Slayden Trading Company LLC, and * Slayden Partners LLC. Bolton Entities' Claims Timothy B. DeSieno, Esq., at Bingham McCutchen LLP, in New York, relates that before the Petition Date, it was the longstanding business practice of RCM, Refco LLC, RSL, and the Bolton Entities to net the debit and credit balances of all of the Bolton Entities' accounts with RCM, Refco LLC and RSL. According to RCM's schedule of prepetition liabilities prepared by Houlihan Lokey Howard & Zukin, dated June 8, 2006, the Bolton Entities held: (a) US$29,147,142 in cash on deposit in various accounts maintained at RCM; and (b) a US$32,581,168 aggregate debit balance, which includes the netting of a debit and credit balance in one of the Bolton Entities' accounts. The Bolton Entities, except for BCP, filed secured claims against the RCM estate totaling US$29,610,950. In addition, certain of the Bolton Entities, except for Kalkhoven and SPL, filed unsecured claims against the other Debtors totaling US$29,569,504 The RCM Trustee has independently reviewed and analyzed the Bolton Claims, including RCM's books and records and account statements to conduct due diligence with respect to validity and amount of the Bolton Claims and to verify the substance of a declaration filed by Stephen W. Nelson on the Bolton Entities' behalf. Mr. DeSieno states that as of the Petition Date, the Bolton Entities had a total of US$29,611,037 in cash or cash equivalents on deposit, and an aggregate debit balance of US$32,264,463 in the various Bolton Entities' accounts maintained at RCM. In conducting his due diligence, the RCM Trustee reviewed the amounts owing to each of the Bolton Entities based on the Houlihan Schedule. Credit & Debit Amounts Discrepancy Mr. DeSieno notes that the Bolton Entities have shown to the RCM Trustee's satisfaction that the discrepancy between the credit and debit amounts owing and the Agreed Credit Balance and Agreed Debit Balance is that: (a) The credit and debit balances asserted by each of Kalkhoven, PCMG XII, BCP, BIG, and SPL match RCM's books and records. (b) Kalkhoven #2 maintained four accounts at RCM: 6334-0000 6334-10101 6334-10104 5205A23 The credit and debit balances asserted by Kalkhoven #2 in respect of Account Nos. 6334-10101 and 6334-10104, and in sub-account No. 5205A23 match RCM's books and records based on the Houlihan Schedule. However, Kalkhoven #2 asserted a US$4,707,857 debit balance in Account No. 6334-, whereas RCM's books and records indicated a US$5,488,458 debit balance in Account No. 6334-0000. The Bolton Entities have also shown that the difference in the asserted debit amount and the Houlihan Schedule amount of Account No. 6334-0000 relates to an error by RCM in not booking a credit to the account for a transfer of funds from Refco LLC into Account No. 6334-0000 for US$762,000, plus a US$18,600 interest. Mr. DeSieno explains that the corrected debit amount resulting from recognizing the US$762,000 credit plus approximately US$18,600 interest accounts for the discrepancy, and the asserted debit amount of Kalkhoven # 2 in Account No. 6334-0000 is correct. (c) The sub-accounts maintained by STC at RCM include Account Nos. 4741A20 and 4741A21. STC asserts a US$463,895 credit balance in sub-account no. 4741A20 and a US$1,075,688 debit balance in sub-account no. 4741A21, which nets out to a US$611,793 debit balance. The US$611,793 net debit amount matches the Houlihan Schedule of the debit amount owing from STC. Mr. DeSieno attests that the Bolton Entities have shown that the net debit amount scheduled on the Houlihan schedule is the result of RCM having netted out the credit balance in sub-account no. 4741A20 and the debit balance in sub-account no. 4741A21. To effectuate a global netting of all the Bolton Entities' accounts, the US$463,895 credit balance in sub-account no. 4741A20 and another US$1,075,688 debit balance in sub-account no. 4741A21 should be used in the calculation, Mr. DeSieno asserts. Based on those adjustments, the parties reached the Agreed Credit Balance and the Agreed Debit Balance amounts. According to Mr. DeSieno, a netting of the Agreed Credit Balance and the Agreed Debit Balance in all of the Bolton Entities' accounts maintained at RCM results in a US$2,653,426 balance due and owing from the Bolton Entities to RCM. Bolton Settlement Agreement The salient terms of the Bolton Entities Settlement are: (1) pursuant to Sections 362(b)(27), 362(d) and 561 of the Bankruptcy Code, the Bolton Entities may exercise their rights to set off and net the aggregate cash on deposit against the outstanding balance in various RCM accounts. In so doing, the Bolton Entities are permitted to apply US$29,611,037, which represents the aggregate amounts held on deposit, against US$32,264,463, which represents the outstanding debit balances across the Bolton Entities' accounts. (2) BCP will immediately pay RCM US$2,653,426 by check or wire transfer pursuant to the payment instructions to be provided by the RCM Trustee, in consideration for and full settlement and mutual release of any and all claims, causes of action, defenses or other rights that each or any of the Bolton Entities or RCM may have against one another. (3) upon BCP's payment of the Settlement Payment, each of the Bolton Claims will be deemed disallowed and expunged. (4) RCM and the RCM Trustee will release and forever discharge the Bolton Entities from and against any and all claims, actions or causes of actions relating to or arising out of each of the Bolton Entities' accounts and relationship with RCM. (5) The Bolton Entities will file any notice or other evidence as may reasonably be requested by the RCM Trustee regarding the disallowance and expungement of the Bolton Entities' claims against RCM. (6) the parties exchange mutual releases. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. (Refco Bankruptcy News, Issue No. 52; Bankruptcy Creditors' Service, Inc., 215/945-7000) SAMSONITE CORP: Earns US$8.9 Million in Quarter Ended October 31 ---------------------------------------------------------------- Samsonite Corp. reported US$8.9 million of net income on US$285.9 million of net sales for the quarter ended Oct. 31, 2006, compared with a US$3 million net loss on US$248.7 million of net sales for the same period in 2005. Sales in all geographic areas increased. Sales from Asian operations increased 43.9%, followed by European operations, Latin America, and North America, with increases of 13.5%, 11.5%, and 7.1%, respectively. In absolute terms, the biggest contributors to the increase in sales were Asian operations followed by European operations, with increases of US$15.1 million and 14.5 million, respectively. The increase in sales in Asian operations is primarily driven by increased travel and geographic expansion in the region, particularly in China and India. Licensing revenues decreased to US$3.2 million in the third quarter of fiscal 2007 from US$3.4 million in the third quarter of fiscal 2006, a decrease of US$200,000 primarily due to the termination of one of the company's license agreements. Consolidated gross margin increased by 2.2 percentage points, to 50.7% in the third quarter of fiscal 2007 from 48.5% in the third quarter of fiscal 2006. Operating income increased to 25.6 million in the quarter ended Oct. 31, 2006, compared with US$6.9 million in the prior quarter. Income tax expense increased to US$7.2 million in the third quarter of fiscal 2007 from a benefit of US$400.000 in the third quarter of fiscal 2006. At Oct. 31, 2006, the company's balance sheet showed US$653 million in total assets, US$668.3 million in total liabilities, and US$20.1 million in minority interests in consolidated subsidiaries, resulting in a US$35.4 million total stockholders' deficit. Full-text copies of the company's consolidated financial statements for the quarter ended Oct. 31, 2006, are available for free at http://researcharchives.com/t/s?181f At Oct. 31, 2006, the company had cash and cash equivalents of US$71.5 million and working capital of US$182.9 million. Cash availability under the company's senior credit facility was US$35 million in the U.S., and EUR22 million for its European subsidiary at Oct. 31, 2006. At Oct. 31, 2006, the company had US$4.6 million of letters of credit outstanding under the U.S. portion of the facility, which reduced the net availability on the U.S. line of credit to US$30.4 million. At Oct. 31, 2006, no amounts were outstanding under the European portion of the facility. About Samsonite Samsonite Corporation -- http://www.samsonite.com/-- manufactures, markets and distributes luggage and travel-related products. The company's owned and licensed brands, including Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren, Lacoste and Timberland, are sold globally through external retailers and 284 company-owned stores. Executive offices are located in London. The company has global locations in Aruba, Australia, Costa Rica, Indonesia, India, Japan, and the United States among others. Executive offices are located in London, England. * * * As reported in the Troubled Company Reporter-Europe on Dec. 14, Moody's Investors Service confirmed the B1 corporate family rating for Samsonite Corp. Moody's also assigned Ba3 ratings to the proposed USUS$80 million senior secured revolving credit facility and USUS$450 million term loan B. Proceeds from the new facilities, along with a portion out outstanding cash balances, will be used to fund a special dividend and debt repurchase, and pay associated fees and premiums. Moody's said the outlook is positive. In a TCR-Europe report on Dec. 14, Standard & Poor's Ratings Services assigned its loan and recovery ratings to Samsonite Corp.'s USUS$530 million senior secured credit facility. The facility consists of an USUS$80-million six-year revolving credit and a USUS$450-million seven-year term loan B. The loan is rated 'BB-' (at the same level as the 'BB-' corporate credit rating on Samsonite) with a recovery rating of '3', indicating the expectation for meaningful (50%-80%) recovery of principal in the event of a payment default. SCOTTISH RE: Files Preliminary Proxy Statement with U.S. SEC ------------------------------------------------------------ Scottish Re Group Ltd. has filed a preliminary proxy statement with the U.S. Securities and Exchange Commission or SEC in relation to the agreement disclosed on Nov. 27, 2006, between the company, MassMutual Capital Partners LLC and certain affiliates of Cerberus Capital Management, L.P., whereby the investors will invest US$300 million each into the company. Scottish Re will distribute a definitive proxy statement to all shareholders, together with an invitation to attend the ExtraordinaryGeneral Meeting of Shareholders at which shareholders will be asked to vote, in person or by proxy, on a set of proposals relating to the investors' investment. The definitive proxy statement will be mailed to shareholders no earlier than 10 calendar days from Jan. 9, and any review of the preliminary proxy statement by the SEC may delay the mailing. The date of the Extraordinary General Meeting of Shareholders will be set forth in the definitive proxy statement. The preliminary proxy statement is available on the SEC's EDGAR Web site at http://www.sec.gov/and is subject to revision prior to the mailing of the definitive proxy statement. About Scottish Re Group Scottish Re Group Limited -- http://www.scottishre.com/-- provides reinsurance of life insurance, annuities and annuity- type products through its operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and Windsor, England. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities * * * Moody's Investors Service continues to review the ratings of Scottish Re Group Ltd. with direction uncertain following the announcement by the company that it has entered into an agreement to sell a majority stake to MassMutual Capital Partners LLC, a member of the MassMutual Financial Group and Cerberus Capital Management, L.P., a private investment firm. Ratings under review include Scottish Re Group Limited's senior unsecured debt which is rated at Ba3 and preferred stock rated at B2. Standard & Poor's Ratings Services has also revised the CreditWatch status of its ratings on Scottish Re Group Ltd., Scottish Re's operating companies, and dependent unwrapped securitized deals to positive from negative. Scottish Re has a 'CCC' counterparty credit rating, and Scottish Re's operating companies have 'B+' counterparty credit and financial strength ratings. These ratings were placed on CreditWatch negative on July 31, when Scottish Re announced poor second-quarter results and that liquidity was tight. Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain on Rating Watch Negative following the announcement that SCT has entered into an agreement which will result in a new equity investment into the company of US$600 million. SCT's ratings were placed on Rating Watch Negative on July 31, 2006, due to concerns regarding the company's ability to repay US$115 million of senior convertible notes that are expected to be put to the company on Dec. 6, 2006. Ratings on Rating Watch Negative include the company's BB issuer default rating and the BB- rating on its 4.5% US$115 million senior convertible notes. A.M. Best Co. has downgraded the Financial Strength Rating to B from B+ and the issuer credit ratings to "bb+" from "bbb-" of the primary operating insurance subsidiaries of Scottish Re Group Limited. A.M. Best has also downgraded the ICR of Scottish Re to "b" from "bb-" and all of Scottish Re's debt ratings. All ratings remain under review with negative implications. SCOTTISH RE: Shareholder to Reject MassMutual/Cerberus Deal ----------------------------------------------------------- In a letter to the Board of Directors of Scottish Re Group Limited, Grace Brothers Ltd. strongly urged the Board to immediately reconsider alternatives to the transaction disclosed in November between the company, Mass Mutual Capital Partners LLC, and affiliates of Cerberus Capital Management, L.P. Grace Brothers, as beneficial owner of ordinary shares of Scottish Re, has formally advised the Board that it intends to vote against the MassMutual/Cerberus transaction when the transaction is submitted for stockholder approval. Grace Brothers strongly believes that the value of the company would be higher without this dilutive transaction, and that meaningful alternatives exist to maximize stockholder value, including as one example a rights offering in which all shareholders were allowed to participate in recapitalizing the Company on a pro rata basis. Grace Brothers further believes that even if such a rights offering would only raise enough capital to allow the company to undergo an orderly liquidation or a runoff of its assets, the value to existing stockholders would be higher than that resulting from the proposed MassMutual/Cerberus transaction. In its letter, Grace Brothers further indicated its disapproval of the course of action taken by management and its investment bankers. Instead of seeking the best value for existing stockholders, management has accepted a highly dilutive transaction that carries an onerous break-up fee of over US$30,000,000, with the stated goal of rebuilding Scottish Re as a "growth" insurance company. Regardless of whether that can be achieved, the transaction almost certainly maximizes returns for new investors at the expense of existing shareholders, and Grace Brothers is at a loss to understand how this course of action is consistent with management's fiduciary duties. The extreme equity dilution as well as other costs associated with the announced transaction make it highly unlikely that the current shareholders will benefit from the transaction. Even with payment of the ill-advised break-up fee, however, Grace Brothers believes other financing alternatives are a better choice from the point of view of the company's owners, the current stockholders. About Scottish Re Group Scottish Re Group Limited -- http://www.scottishre.com/-- provides reinsurance of life insurance, annuities and annuity- type products through its operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and Windsor, England. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities * * * Moody's Investors Service continues to review the ratings of Scottish Re Group Ltd. with direction uncertain following the announcement by the company that it has entered into an agreement to sell a majority stake to MassMutual Capital Partners LLC, a member of the MassMutual Financial Group and Cerberus Capital Management, L.P., a private investment firm. Ratings under review include Scottish Re Group Limited's senior unsecured debt which is rated at Ba3 and preferred stock rated at B2. Standard & Poor's Ratings Services has also revised the CreditWatch status of its ratings on Scottish Re Group Ltd., Scottish Re's operating companies, and dependent unwrapped securitized deals to positive from negative. Scottish Re has a 'CCC' counterparty credit rating, and Scottish Re's operating companies have 'B+' counterparty credit and financial strength ratings. These ratings were placed on CreditWatch negative on July 31, when Scottish Re announced poor second-quarter results and that liquidity was tight. Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain on Rating Watch Negative following the announcement that SCT has entered into an agreement which will result in a new equity investment into the company of US$600 million. SCT's ratings were placed on Rating Watch Negative on July 31, 2006, due to concerns regarding the company's ability to repay US$115 million of senior convertible notes that are expected to be put to the company on Dec. 6, 2006. Ratings on Rating Watch Negative include the company's BB issuer default rating and the BB- rating on its 4.5% US$115 million senior convertible notes. A.M. Best Co. has downgraded the Financial Strength Rating to B from B+ and the issuer credit ratings to "bb+" from "bbb-" of the primary operating insurance subsidiaries of Scottish Re Group Limited. A.M. Best has also downgraded the ICR of Scottish Re to "b" from "bb-" and all of Scottish Re's debt ratings. All ratings remain under review with negative implications. SMART BOX: Creditors Confirm Liquidator's Appointment ----------------------------------------------------- Creditors of Smart Box (Vision) Limited (t/a Vision) confirmed Dec. 11, 2006, the appointment of Roderick Graham Butcher of Butcher Woods as Liquidator of the company. The company can be reached at: Smart Box (Vision) Limited Reddicap Trading Estate Sutton Coldfield West Midlands B75 7BU United Kingdom Tel: 01213-119600 SOLAR DESIGNS: Appoints Liquidators from PricewaterhouseCoopers --------------------------------------------------------------- Matthew Hammond and Robert Hunt of PricewaterhouseCoopers LLP were appointed Liquidators of Solar Designs Limited on Dec. 11, 2006, for the creditors' voluntary winding-up procedure proceeding. The Joint Liquidators can be reached at: PricewaterhouseCoopers LLP Benson House 33 Wellington Street Leeds LS1 4JP United Kingdom SOUNDFORMAT LIMITED: Calls In Liquidator from Arrans ---------------------------------------------------- Robert Gibbons of Arrans was appointed Liquidator of Soundformat Limited (t/a D & D Powder Coatings) on Dec. 21, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Arrans Leonard House 14 Silver Street Tamworth B79 7NH United Kingdom SRS COMMUNICATIONS: Taps I. D. Holland to Liquidate Assets ---------------------------------------------------------- I. D. Holland was appointed Liquidator of SRS Communications Limited on Nov. 15, 2006, for the creditors' voluntary winding-up procedure proceeding. The company can be reached at: SRS Communications Limited 93-99 Upper Richmond Road London SW15 2TG United Kingdom Tel: 020 8785 5730 Fax: 020 8785 5685 STOCKPORT GEAR: Brings In Liquidators from CLB Coopers ------------------------------------------------------ Diane Hill and Mark Getliffe of CLB Coopers were appointed Liquidators of Stockport Gear Supplies Limited on Dec. 6, 2006, for the creditors' voluntary winding-up proceeding. The company can be reached at: Stockport Gear Supplies Limited Horton Street Stockport Cheshire SK1 3LR United Kingdom Tel: 0161 477 3808 Fax: 0161 474 7758 STONEYLANE DEVELOPMENTS: Hires David R. Acland as Liquidator ------------------------------------------------------------ David R. Acland of Begbies Traynor was appointed Liquidator of Stoneylane Developments Limited (t/a Aardvark Concrete) on Dec. 18, 2006, for the creditors' voluntary winding-up procedure proceeding. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Stoneylane Developments Limited can be reached at: 1 Worsley Court High Street Worsley Manchester Lancashire M28 3NJ United Kingdom Tel: 0161 442 8111 THERMAL ENGINEERING: Taps Liquidators from Deloitte & Touche LLP ---------------------------------------------------------------- Ian Brown and Adrian Berry of Deloitte & Touche LLP were appointed Liquidators of Thermal EngineeringInternational Limited (formerly Senior Thermal Engineering Limited) on Dec. 25, 2006, for the creditors' voluntary winding-up proceeding. The Liquidators can be reached at: Deloitte & Touche LLP 1 City Square Leeds West Yorkshire LS1 2AL United Kingdom THERMION SYSTEMS: Joint Liquidators Take Over Operations -------------------------------------------------------- Anthony Alan Josephs and Linda Ann Farish of RMT were appointed Joint Liquidators of Thermion Systems Europe Limited on Dec. 11, 2006, for the creditors' voluntary winding-up procedure procee ding. The company can be reached at: Thermion Systems Europe Limited 4a Power Court Luton Bedfordshire LU1 3JJ United Kingdom Tel: 01582 722 788 Fax: 01582 732 844 TRAVEL BY DESIGN: Names Keith Aleric Stevens Liquidator ------------------------------------------------------- Keith Aleric Stevens of Wilkins Kennedy was appointed Liquidator of Travel By Design (Chertsey) Limited on Dec. 15, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Wilkins Kennedy Gladstone House 77-79 High Street Egham Surrey TW20 9HY United Kingdom TRENT VALLEY: Appoints Gerald Irwin to Liquidate Assets ------------------------------------------------------- Gerald Irwin of Irwin & Company was appointed Liquidator of Trent Valley Travel (Rugeley) Limited on Dec. 12, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Irwin & Company Station House Midland Drive Sutton Coldfield West Midlands B72 1TU United Kingdom TRIPENTA LIMITED: Liquidator Sets Jan. 26 Claims Bar Date --------------------------------------------------------- Creditors of Tripenta Limited have until Jan. 26 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any) to appointed Liquidator C. H. I. Moore at: K.J.Watkin & Co. Emerald House 20-22 Anchor Road Aldridge Walsall United Kingdom Creditors confirmed the appointment of C. H. I. Moore of K.J.Watkin & Co. as Liquidator of the company on Dec. 15, 2006. Headquartered in Broadway, England, Tripenta Limited -- http://members.aol.com/tripenta/-- buys and sells plastic raw materials. The company also offers in-house reprocessing services, i.e. granulation (size reduction) and compounding. WALKERS INSURANCE: Names Gerard Keith Rooney Liquidator ------------------------------------------------------- Gerard Keith Rooney of Rooney Associates was appointed Liquidator of Walkers Insurance Services Limited on Dec. 7, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Rooney Associates 2nd Floor 19 Castle Street Liverpool L2 4SX United Kingdom WEST ONE: Nimish C. Patel Leads Liquidation Procedure ----------------------------------------------------- Nimish C. Patel of Re10(London) Limited was appointed Liquidator of West One Antennas Limited on Dec. 15, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Re10(London) Limited Trinity House Heather Park Drive Wembley Middlesex HA0 1SU United Kingdom * Fitch Says European High-Yield Issue Closes at Record High ------------------------------------------------------------ Fitch Ratings says European high-yield issuance in 2006 reached a record volume of EUR42 billion, representing an increase of more than 61% on the EUR26 billion issuance in 2005, as debt funded acquisitions continue to meet demand in a liquid credit market supported by low default rates. "The European high-yield market experienced renewed popularity in the fourth quarter of 2006 as large LBO and corporate issuers funded acquisitions and recapitalizations with attractively priced and structured debt, while investors demonstrated flexibility in relation to covenant and call protection, enabling the product to compete more effectively with mezzanine and second lien instruments," says Matthias Volkmer, associate director in Fitch's European Leveraged Finance team. An interesting development in the U.S. market in 2006, which has yet to take off in Europe, was the use of toggle notes, a structure that incorporates a contractual feature allowing the issuer to make its interest payments either "in cash" or "in kind." Notably, the two largest U.S. high-yield transactions on record, for hospital operator HCA and semiconductor business Freescale, both incorporated this feature in the second half of 2006. Provided current market conditions continue, Fitch anticipates that the toggle feature could be the latest test of investor appetite for risk as arrangers compete for lucrative European high-yield mandates among issuers focused on cost and flexibility. Following a slowdown in the third quarter of 2006, the market revived strongly in the fourth quarter of 2006 with a record quarterly issuance total of EUR15.3 billion. Issuance picked up markedly early in October as Netherlands-based NXP established a record for the largest European high- yield issue with its EUR4.5 billion multi-tranche offering to fund the LBO of Philips Electronics' semiconductor unit by a KKR-led private equity consortium. This issue alone represented 30% of the total issuance in the fourth quarter of 2006 and was followed by further jumbo issues including the EUR1.1 billion high-yield refinancing of France-based specialty chemicals producer Rhodia, EUR1.4 billion issue for the recapitalization of Greek mobile telecom operator TIM Hellas, EUR730 million issue by Dutch TNT Logistics to fund its LBO by Apollo, and EUR850 million bonds from French wine and spirits producer Pernod Ricard to partly refinance the acquisition of Allied Domecq. Fitch expects the healthy issuance volumes witnessed in the fourth quarter of 2006 to continue into the first half of 2007, supported by EUR13.6 billion in existing bonds maturing during 2007, in addition to a promising high-yield pipeline of approximately EUR5.9 billion from new issuers in the first quarter of 2007. These include a non-call 1.5-year EUR800 million floating-rate note from German sanitary fittings manufacturer Grohe and an issue of up to EUR1.43 billion from US-based software company Infor Global Solutions. The trailing-12-month default rate at the end of 2006 increased to 0.6% from 0.5% at the end of 2005, based on defaulted amounts of EUR803.7 million from five issuers. The defaults by U.S. automotive parts and systems company Dana Corporation in March and France's Global Automotive Logistics Finance in May were followed by three additional defaults in the fourth quarter. Luxfer Holdings, a U.K. gas-cylinder manufacturer for the auto and aerospace industries, agreed to exchange an equivalent EUR238.5 million of outstanding bonds for equity, under terms that left investors with a shortfall, and on Oct. 30, 2006, U.S. automotive components supplier Dura Automotive Systems filed for bankruptcy in the U.S. under Chapter 11, which also affected its smaller European bond issue of EUR100 million. Citing problems with its Italian business, at the end of November 2006 U.K. telecom services provider Damovo became the third European issuer to default as it missed interest payments on a total bond volume of EUR358 million. Schefenacker has already missed an interest payment on its second lien debt and the German automotive supplier's bonds are likely to default in the first quarter of 2007 when the next coupon payments fall due. * BOOK REVIEW: Working Together: 12 Principles for Achieving Excellence in Managing Projects, Teams, and Organizations ------------------------------------------------------------ Author: James P. Lewis Publisher: Beard Books Paperback: 208 pages List Price: US$34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/158798279X/internetbankru pt Henry Berry of Turnarounds & Workouts said in December 2006: Working Together is about the passionate implementation of a set of management principles that were instrumental in the development of new airplanes at the Boeing Company and, in particular, the groundbreaking Boeing 777 aircraft. The chief engineer of the Boeing 777 program when it was undertaken in the early 1980s was Alan Mulally. He was soon promoted to general manager of the project and, in 1986, was named president of Commercial Airplanes. Mr. Mulally remained with Boeing for 37 years, eventually leading Boeing Commercial Airplanes to a turnaround that began in 1996. And if the name sounds more than familiar, it should: in September 2006, Ford Motor Company named Mr. Mulally as its new President and CEO, citing his record of success during his long tenure at Boeing. Through all of those years, Mr. Mulally made the "working together" principles and practices his gospel. He has been a vocal advocate of both the principles and this book by James Lewis even during his highly visible transition to Ford. Working Together chronicles the application of Mulally's leadership principles during his years at Boeing, especially during the execution of the 777 project. The 12 principles espoused in "working together" comprise a management philosophy that enabled Boeing "to dramatically increase production on all of our airplanes, improve our entire production system, and develop a number of new airplanes all simultaneously," as Mr. Mulally notes in the Foreword to the book. The value and effectiveness of working together is conveyed in a dramatic way by the author. Mr. Lewis introduces the high stakes that Boeing faced in developing the 777. At first, the company bit off more than it could chew. Fired by the enthusiasms and passions of employees exemplified by Mr. Mulally, Boeing pursued an ideal that exceeded its capacity to meet. At one point, Boeing had to "stop global production for lack of parts." Boeing was losing money, risking its future, and disappointing its customers, investors, and employees. But the roots of its problems were basically a lack of proper preparedness and organization. With Mr. Mulally in charge, operations were revised according to the model of working together. Work processes were reinforced, reinvigorated, and closely monitored. Practices such as focused agendas for meetings, clear assignments, communication among disparate employee segments, solicitation of input, and keeping a project on track, were implemented. Boeing underwent a transformation from a company in danger of permanently damaging its reputation and competence, to a company that reaffirmed its preeminence in the field of airplane design and production. As he took over the reins at Ford, Mr. Mulally observed that many of the challenges he addressed in commercial airline manufacturing are analogous to the issues he will now face at the car manufacturing giant. He stated, "I'm looking forward to working closely with Bill [Ford] in the ongoing turnaround of this great company. I'm also eager to begin engagement with the leadership team. I believe strongly in teamwork and I fully expect that our efforts will be a productive collaboration." James P. Lewis is President of Lewis Institute, Inc., a training and consulting company specializing in project management, which he founded in 1981. He also teaches seminars on the subject in the United States, England, and Asia. ********* 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, Zora Jayda Zerrudo Sala, and Kristina A. Godinez, 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 * * *