/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070124.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 Wednesday, January 24, 2007, Vol. 8, No. 17 Headlines A U S T R I A AT-INFO.AT: Claims Registration Period Ends January 30 FALKNER MASCHINENPUTZ: Claims Registration Period Ends Jan. 30 GERTRUDE LUKE: Claims Registration Period Ends January 29 KONZETT BAU: Feldkirch Court Orders Business Closure PHARMA & CO: Claims Registration Period Ends January 26 PRIME CINE: Claims Registration Ends January 29 WAGNER PAPIERSACKE: Claims Registration Period Ends February 1 YOUKOE FORM: Claims Registration Period Ends January 25 ZIMMEREI POLANSCHUETZ: Claims Registration Ends January 29 B E L G I U M GREIF INC: Moody's Lifts Ratings on Good Financial Performance C Z E C H R E P U B L I C J&T BANKA: Moody's Assigns E+ Financial Strength Rating E S T O N I A KONINKLIJKE AHOLD: Rimi Baltic Hikes Sales by 20% to EUR970 Mln F R A N C E ALCATEL-LUCENT: Deploys Mobile Solution to Vodafone Netherlands COOPER COS: Moody's Assigns Ba3 Rating on US$350-Mln Sr. Notes G E O R G I A BANK OF GEORGIA: Fitch Lifts Issuer Default Rating to B G E R M A N Y ALNUS GMBH: Creditors' Meeting Slated for February 14 BENQ CORP: Sentex Submits EUR52 Million Bid for Bankrupt Assets BENQ CORP: Inks Mobile Phone Warranty Agreement with Siemens AG CREATIV GASTSTATTEN: Claims Registration Ends February 14 CSH CABIN: Claims Registration Ends February 16 DAIMLERCHRYSLER AG: To Ink Deal to Sell EADS Stake This Month M & C OSWALD: Creditors' Meeting Slated for February 12 M.S. BAU: Claims Registration Ends February 19 NURA ARABISCHE: Claims Registration Ends February 19 O + H VERWALTUNGS: Creditors' Meeting Slated for February 14 ROSE GMBH: Claims Registration Ends February 12 SEEMANN FRISCHEVERTRIEB: Creditors' Meeting Slated for Feb. 12 SMARTHAUS GMBH: Claims Registration Ends February 14 STUMPF GMBH: Claims Registration Ends February 12 SUPER BAYERN: Claims Registration Ends February 13 VOLKSWAGEN AG: MAN Drops Scania Takeover; Opens Merger Talks VOLKSWAGEN AG: MAN AG Reinforces Support to CEO Samuelsson I R E L A N D NOMOS CAPITAL: Moody's Rates Loan Participation Notes at Ba3 NOMOS CAPITAL: Fitch Rates Upcoming Debt Issue at B+/RR4 I T A L Y ALITALIA SPA: Sets February Meeting to Elect New Board FIAT SPA: Alfa Romeo Division Will Return to U.S. Market by 2009 POPOLARE ITALIANA: Shareholders Reinstate Suspended CEO Gronchi K A Z A K H S T A N AK-ALMA LLP: Creditors Must File Claims by February 22 AKAD-AGRO LLP: Proof of Claim Deadline Slated for February 22 ALLIANCE BANK: Moody's Assigns Ba2 Rating to Sr. Unsec. Debt ALLIANCE BANK: Fitch Affirms Issuer Default Rating at BB- ALTYN LLP: Claims Filing Period Ends February 27 ARMAN LLP: Claims Registration Ends February 27 JANALYK LLP: Creditors' Claims Due February 27 MARHABAT & K: Creditors Must File Claims by February 22 METALLURGICHESKY INSTITUTE: Creditors' Claims Due February 28 OTAN ORDA: Proof of Claim Deadline Slated for February 22 REMSTROY-XXI LLP: Claims Filing Period Ends February 28 SPETSREMSTROY LLP: Claims Registration Ends February 22 K Y R G Y Z S T A N TRANS SHAT-SERVICE: Claims Filing Period Ends March 4 N E T H E R L A N D S ALB FINANCE: Moody's Assigns Ba2 Rating to Sr. Unsecured Debt ALB FINANCE: Fitch Rates Upcoming Eurobond Issue at BB- ALCATEL-LUCENT: Deploys Mobile Solution to Vodafone Netherlands BG FINANCE: Moody's Assigns Ba2 Rating on Loan Notes BG FINANCE: Fitch Puts B/RR4 Rating to Upcoming Debt Issue GLOBAL POWER: Court Sets April 18 as General Claims Bar Date GLOBAL POWER: U.S. Trustee Amends Creditors Committee Membership GLOBAL POWER: Court OKs Saul Ewing as Equity Panel's Co-Counsel KONINKLIJKE AHOLD: Rimi Baltic Hikes Sales by 20% to EUR970 Mln R U S S I A AGRO-INVEST LLC: Court Names A. Gubin as Insolvency Manager BASHKATOVO CJSC: Creditors Must File Claims by March 2 BUILDING MATERIALS: Creditors Must File Claims by March 2 CAMOMILE-93 OJSC: Creditors Must File Claims by January 30 EAR CJSC: Creditors Must File Claims by January 30 EQUIPMENT-1 CJSC: Voronezh Bankruptcy Hearing Slated for Feb. 7 EUROPE CJSC: Creditors Must File Claims by January 30 IVANOVSKIY KHLADOKOMBINAT 4: Asset Sale Slated for January 31 KRYLOVSK-AGRO-PROM-KHIMIYA OJSC: Claims Deadline Set March 2 MILK LLC: Primorye Bankruptcy Hearing Slated for April 26 NEW CERAMICS: Moscow Bankruptcy Hearing Slated for Feb. 27 NOMOS BANK: Fitch Affirms IDR at B+ with Stable Outlook NOMOS BANK: Fitch Rates Nomos Capital's Upcoming LPN Issue at B+ SEL-KHOZ-TEKHNIKA OJSC: Creditors Must File Claims by March 2 TIMASHEEVSKIY OJSC: Bankruptcy Hearing Slated for April 23 TOMSK-AIR OJSC: Court Starts Bankruptcy Supervision Procedure TRANS-SERVICE-1401 OJSC: Creditors Must File Claims by Jan. 30 YUKOS OIL: Initial Appraisal Values Assets at US$22 Billion YUKOS OIL: Moscow Court Sets Feb. 14 Hearing for PwC Tax Lawsuit S P A I N MILLS CORP: Farallon Offers to Purchase US$499 Million of Shares MILLS CORP: Gazit-Globe Offers US$1.1B Revised Recap Plan MILLS CORP: Inks US$1.35 Billion Agreement with Brookfield Asset U K R A I N E GIONET LVS: Claims Submission Deadline Set February 3 PAPIRUS LLC: Creditors Must Submit Claims by February 3 SOUTH-POLYMER SYNTHESIS: Claims Submission Deadline Set Feb. 3 TRE-KRUNER LLC: Claims Submission Deadline Set February 3 U N I T E D K I N G D O M ABBEY FLOORING: Names Jeremy Nicholas Bleazard as Administrator ACQUIREMENT SOLUTIONS: Names Cooper Parry to Administer Assets AGOY LTD: Hires Liquidator from Fisher Partners ALLCARE HOME: Calls In Liquidator from Begbies Traynor AUTO DRIVE: Creditors Confirm Voluntary Liquidation AWARD INTERNATIONAL: Names William Antony Batty Liquidator BAA PLC: Names Terry Morgan as Group Divisional Director BAA PLC: Scottish Unit Shuffles Senior Management BRITISH AIRWAYS: Wants Acas to Mediate Dispute with T&G Union CONCURRENT REALISATIONS: Taps PwC as Joint Administrators CORUS GROUP: Confirms Issuance of Ordinary Shares & Bonds CRAIGHILL NURSERIES: Creditors Confirm Liquidator's Appointment CRESTGATE LTD: Claims Filing Period Ends February 23 DARENTH DESIGNS: Nominates Liquidators from Abbott Fielding DRAC LTD: Joint Liquidators Take Over Operations DURA AUTOMOTIVE: RSM Updates Ontario Court on Chapter 11 Cases DURA AUTOMOTIVE: Ontario Court Recognizes Final DIP Order FORD MOTOR: Loses US$1 Bln Per Year on Counterfeit Auto Parts FORD MOTOR: Mark Fields to Give Up Use of Company Plane G T RANBY: Names Liquidators to Wind Up Business GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally GLOBAL HERBAL: Appoints Peter Bridger to Liquidate Assets GRANGE DIRECT: Claims Filing Period Ends February 28 HONEYCOMBE LEISURE: In Talks with Bankers Over GBP33-Mln Loan INTELSAT LTD: Bermuda Unit Issues US$600 Million Senior Notes LADBROKES PLC: Acquires Nordic Gaming Partner Sponsio Ltd. ONE PLUS: Enters Liquidation After Rejection of Rescue Package REFCO INC: Bankr. Court Denies Michael McNeil's Stay Request REFCO INC: Court Directs Grant Thornton to Produce Documents SANMINA-SCI: S&P Retains Negative CreditWatch on BB- Ratings SCOTTS MIRACLE: S&P Holds Corporate Credit Rating at BB SEA CONTAINERS: Committee Taps Morris Nichols as Counsel SEA CONTAINERS: Principal Financial Discloses 9.5% Equity Stake SKYEPHARMA PLC: Dr. David Ebsworth Buys 67,000 Ordinary Shares STEINWAY MUSICAL: Terminates Dennis Bamber Asset Purchase Pact TRANSRENT TRAILER: Names Administrators from Deloitte & Touche U.K. COAL: HSE Calls for Review of Ground Control Requirements VECTOR NETWORKS: Brings In Administrators from KPMG ********* ============= A U S T R I A ============= AT-INFO.AT: Claims Registration Period Ends January 30 ------------------------------------------------------ Creditors owed money by LLC AT-INFO.AT (FN 251116p) have until Jan. 30 to file written proofs of claims to court-appointed property manager Bernhard Huber at: Dr. Bernhard Huber Schillerstrasse 12 4020 Linz, Austria Tel: 65 69 69 Fax: 65 69 69 60 E-mail: b.huber@hep.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Feb. 13 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Linz Hall 522 5th Floor Linz, Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on Dec. 11, 2006 (Bankr. Case No. 38 S 57/06w). FALKNER MASCHINENPUTZ: Claims Registration Period Ends Jan. 30 -------------------------------------------------------------- Creditors owed money by LLC Falkner Maschinenputz (FN 151710d) have until Jan. 30 to file written proofs of claims to court- appointed property manager Peter Shamiyeh at: Dr. Peter Shamiyeh Hopfengasse 23 4020 Linz, Austria Tel: 66 73 26 Fax: 66 73 20-942 E-mail: p.shamiyeh@wildmoser-koch.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Feb. 13 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Linz Hall 522 5th Floor, Austria Headquartered in Walding, Austria, the Debtor declared bankruptcy on Dec. 11, 2006 (Bankr. Case No. 38 S 56/06y). GERTRUDE LUKE: Claims Registration Period Ends January 29 --------------------------------------------------------- Creditors owed money by LLC Gertrude Luke Installation (FN 227651g) have until Jan. 29 to file written proofs of claims to court-appointed property manager Johanna Abel-Winkler at: Mag. Johanna Abel-Winkler c/o Mag. Norbert Abel Franz-Josefs-Kai 49/19 1010 Vienna, Austria Tel: 533 52 72 Fax: 533 52 72-15 E-mail: office@abel-abel.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Feb. 12 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 11, 2006 (Bankr. Case No. 3 S 168/06k). Norbert Abel represents Mag. Abel-Winkler in the bankruptcy proceedings. KONZETT BAU: Feldkirch Court Orders Business Closure ---------------------------------------------------- The Land Court of Feldkirch entered Dec. 7, 2006, an order closing the business of LLC Konzett Bau-Tech (FN 56457a). Court-appointed property manager Guenter Flatz recommended the business closure after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Guenter Flatz c/o Mag. Klaus Tusch Muehletorplatz 12 6800 Feldkirch, Austria Tel: 05522/39100 Fax: 05522/391001 E-mail: office@tfd.at Headquartered in Feldkirch, Austria, the Debtor declared bankruptcy on Oct. 27, 2006 (Bankr. Case No. 13 S 49/06w). Klaus Tusch represents Dr. Flatz in the bankruptcy proceedings. PHARMA & CO: Claims Registration Period Ends January 26 ------------------------------------------------------- Creditors owed money by LLC Pharma & Co Apothekenserivce (FN 159629z) have until Jan. 26 to file written proofs of claims to court-appointed property manager Karin Wintersberger at: Mag. Karin Wintersberger Getreidegasse 31 5020 Salzburg, Austria Tel: 0662-844202 Fax: 0662-844202-44 E-mail: office@drw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Feb. 9 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Salzburg Hall 256 1st Floor Salzburg, Austria Headquartered in Salzburg, Austria, the Debtor declared bankruptcy on Dec. 11, 2006 (Bankr. Case No. 44 S 44/06d). PRIME CINE: Claims Registration Ends January 29 ----------------------------------------------- Creditors owed money by LLC Prime Cine Technologies (FN 245183p) have until Jan. 29 to file written proofs of claims to court- appointed property manager Christopher Straberger at: Dr. Christopher Straberger Maria Theresia Road 19 4600 Wels, Austria Tel: 07242/47175 Fax: 07242/641222 E-mail: office@straberger.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on Feb. 8 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Wels Hall 101 1st Floor Maria Theresia Str. 12 Wels, Austria Headquartered in Wels, Austria, the Debtor declared bankruptcy on Dec. 11, 2006 (Bankr. Case No. 20 S 160/06i). WAGNER PAPIERSACKE: Claims Registration Period Ends February 1 -------------------------------------------------------------- Creditors owed money by LLC Wagner Papiersacke (FN 217790f) have until Feb. 1 to file written proofs of claims to court-appointed property manager Florian Gehmacher at: Dr. Florian Gehmacher c/o Dr. Matthias Schmidt Dr. Karl Lueger-Ring 12 1010 Vienna, Austria Tel: 533 16 95 Fax: 535 56 86 E-mail: gehmacher@preslmayr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Feb. 15 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 7, 2006 (Bankr. Case No. 5 S 152/06x). Matthias Schmidt represents Dr. Gehmacher in the bankruptcy proceedings. YOUKOE FORM: Claims Registration Period Ends January 25 ------------------------------------------------------- Creditors owed money by LLC Youkoe Form-Technik (FN 112432t) have until Jan. 25 to file written proofs of claims to court- appointed property manager Georg Rupprecht at: Mag. Georg Rupprecht c/o Dr. Michael Troethandl Hauptplatz 9-13 2500 Baden bei Wien, Austria Tel: 02252/86380 Fax: 02252/86380-3 E-mail: rupprecht@lexacta.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Feb. 8 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt, Austria Headquartered in Oeynhausen, Austria, the Debtor declared bankruptcy on Dec. 11, 2006 (Bankr. Case No. 10 S 112/06h). Michael Troethandl represents Mag. Rupprecht in the bankruptcy proceedings. ZIMMEREI POLANSCHUETZ: Claims Registration Ends January 29 ---------------------------------------------------------- Creditors owed money by LLC Zimmerei Polanschuetz (FN 105782m) have until Jan. 29 to file written proofs of claims to court- appointed property manager Philip De Goederen at: Dr. Philip De Goederen Kurhausstrasse 9 4820 Bad Ischl, Austria Tel: 06132/23517 Fax: 06132/23517-9 E-mail: info@rechtsangelegenheiten.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on Feb. 8 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Wels Hall 101 Wels, Austria Headquartered in Ebensee, Austria, the Debtor declared bankruptcy on Dec. 7, 2006 (Bankr. Case No. 20 S 159/06t). ============= B E L G I U M ============= GREIF INC: Moody's Lifts Ratings on Good Financial Performance -------------------------------------------------------------- Moody's Investors Service upgraded the ratings of Greif, Inc. and assigned a first time rating to the company's new senior unsecured notes. The rating outlook is stable. The rating on the new senior unsecured notes remains subject to review of the final financing documentation. Ratings/assessments upgraded: -- corporate Family Rating, to Ba1 from Ba2, and -- probability-of-default rating, to Ba1 from Ba2. Ratings/assessments assigned: -- US$300-million senior unsecured notes due 2017 at Ba2 (LGD 5, 75%). In addition, the company speculative-grade liquidity rating of SGL-1 has been affirmed. The rating upgrade reflects the significant improvement in the company's financial performance and credit profile. The ratings also reflect the company's leading market position in global industrial packaging, its geographic, customer and end market diversity as well as the meaningful financial flexibility provided by its holdings of a large amount of unencumbered timber assets. On the other hand, the ratings continue to be constrained by the cyclicality in the company's industrial shipping container and paper packaging businesses, declining demand for steel and fiber drum products, its modest profit margins due to the mostly commodity nature of its products, and considerable exposure to volatile raw material prices. The rating outlook is stable. Factors that could favorably impact the ratings include: 1) sustained improvement in the credit profile, through margin expansion and cash flow generation, 2) demonstrated commitment to maintaining Moody's adjusted debt to EBITDA below 2.0x, and 3) further successful reduction of costs through strategic sourcing and operational excellence. Factors that could negatively impact the ratings include deteriorating revenues due to substitution or market share shift away from the company, declining profit margins, or large debt- financed acquisitions. Moody's also affirmed Greif's speculative-grade liquidity rating of SGL-1, which indicates very good liquidity and reflects Moody's expectation that the company's operating cash flow, together with its cash balance and availability under its committed revolver and A/R securitization facility, should be more than sufficient to cover its capital spending and other operational needs over the next 12 months. The Ba2 rating on the senior unsecured notes reflects an LGD 5 loss given default assessment that reflects its contractual subordination to all of Greif's senior secured creditors. The notes will rank pari passu in right of payment to Greif's existing and future senior debt and will be senior to all existing and future senior subordinated debt. The proceeds from the senior unsecured notes will be used to fund the purchase of Greif's 8.87% senior subordinated notes due 2012 (rated Ba3). Moody's will withdraw the ratings on the senior subordinated notes upon the successful issuance of the senior unsecured notes. Greif, Inc., headquartered in Delaware, Ohio, is a world leader in industrial packaging products and services. The Company provides extensive expertise in steel, plastic, fibre, corrugated and multi-wall containers for a wide range of industries. Greif also produces containerboard and manages timber properties in the United States. For fiscal year 2006 the company generated around US$2.6 billion in net sales and US$326 million in EBITDA. =========================== C Z E C H R E P U B L I C =========================== J&T BANKA: Moody's Assigns E+ Financial Strength Rating ------------------------------------------------------- Moody's Investors Service assigned a CZ-2 short-term national scale bank deposit rating to Czech institution J&T BANKA, a.s. and affirmed its Baa1.cz long-term national scale bank deposit rating and E+ financial strength rating. All ratings carry a stable outlook. According to Moody's, J&T BANKA's Baa1.cz/CZ-2 national scale bank deposit ratings and E+ bank financial strength rating reflect its weak franchise in the Czech Republic and the extremely high concentration of loans and deposits. J&T BANKA is a small bank operating predominantly in the Czech market. It is focused on offering private banking services to highly affluent clients using an individual approach to its client base, with the aim of involving clients in various joint ventures. However, Moody's notes that the nearly half of the loan portfolio is in the real estate development and construction sectors and these sectors tend to be inherently volatile. The bank is also involved in financing corporate acquisitions and restructurings. The bank's ratings also reflect modest, albeit improving, financial fundamentals as well as its good economic and regulatory capitalization, supported by a CZK1 billion share capital increase in 2005 and a stated zero dividend policy. Whilst Moody's views positively the initiatives taken by the bank in recent years to improve risk management and the level of loans' collateralization, the lending concentrations remain very high and many of the investment projects are of a speculative nature. Asset quality is satisfactory, most of the bank's non-performing loans were originated by operations conducted before J&T Group's acquisition of the bank in 1998 and are fully provisioned. That said, Moody's cautions that much of the newly originated loan portfolio has not been tested through an economic downturn. The bank is 100% controlled by J&T Finance Group, a.s., which is ultimately owned by two private individuals, Jozef Tkac and Ivan Jakabovic. These shareholders have proved to be supportive in the past; however, given the size of the bank within the J&T Finance Group (J&T BANKA represents 20% of J&T Group assets and it is one of the largest companies within the group), Moody's has not factored any support into the ratings. J&T BANKA is headquartered in Prague, Czech Republic, and as of Dec. 31, 2005 had total assets of CZK18.9 billion (EUR663 million), according to IFRS. ============= E S T O N I A ============= KONINKLIJKE AHOLD: Rimi Baltic Hikes Sales by 20% to EUR970 Mln --------------------------------------------------------------- Rimi Baltic, a unit of Koninklijke Ahold N.V., increased its net sales for the operating year 2006. Ahold opened 29 new stores in 2006 in the Baltic -- six Rimi hypermarkets, one Rimi supermarket and 22 Supernetto/Saastumarket hard discount stores. These sales allowed the company to maintain its leading positions in Estonia (market share: 24%) and Latvia (market share: 22%) as well as to boost the market share of Rimi's operations in Lithuania, which reached 7%. The market share of Rimi Baltic in the Baltic region grew with one percentage point to 16%. Total investments in all three Baltic countries in 2006 were EUR62 millions. "At the end of the year ICA acquired 50% Kesko Food's shares in Rimi Baltic is now 100% owned by Swedish ICA AB -- being a subsidiary of one company enables us to operate even more effectively" says Rimi Baltic CEO Antonio Soares. Rimi Baltic group sales in 2006 per country, excluding VAT: EUR (Million) Increase, % ------------- ----------- Rimi Eesti Food 345.6 7.2% Rimi Latvia 429.3 23.9% Rimi Lietuva 194.6 40.4% Rimi Baltic 969.5 20.0% Rimi Baltic operates 204 stores in the Baltic region -- 90 in Latvia, 63 in Estonia and 51 in Lithuania. Some 58 Rimi supermarkets, 30 Rimi hypermarkets and 116 hard discount stores (Supernetto in Latvia and Lithuania, Saastumarket in Estonia). Rimi Baltic employs more than 10 000 people. 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 the Dutch 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. =========== F R A N C E =========== ALCATEL-LUCENT: Deploys Mobile Solution to Vodafone Netherlands --------------------------------------------------------------- Alcatel-Lucent revealed that mobile operator Vodafone Netherlands has deployed a network-based Alcatel-Lucent enterprise solution to enable Vodafone Netherlands to expand the capabilities of its Wireless Office service. The Alcatel-Lucent solution provides Vodafone Netherlands with an opportunity that both addresses the demands of enterprises and transforms the way employees communicate. With this network-based solution, Alcatel-Lucent offers enterprises an alternative choice to meet their communications and business needs. Employees benefit from mobility while having access to their company communications resources, which can increase productivity by eliminating the need to be in the office to access fixed-line PBX or Centrex communications services. In addition, Alcatel-Lucent is offering network integration services, including design and engineering support, for the enterprise solution being offered to Vodafone. Vodafone's enhanced Wireless Office Service is a network-based IP Centrex solution that enables business customers to use mobile phones to access communications features that previously would only have been available via fixed telephones in a company's offices. Features that Vodafone is initially making available on mobile phones are extension dialing, hunt groups to route a call to an available line, placing calls in queue, conferencing, and call transfer. In addition, the solution comprises a receptionist switchboard for handling calls to a company's prime number, geographical numbers, company numbers (088) and Call Management Software for easy call management by end users. "For business customers it's critical to be able to communicate anywhere anytime. Vodafone has acknowledged this and has introduced its Wireless Office service, which provides the best of both worlds: the functionality of fixed communications with the flexibility of mobile communications," said Jeroen Hoencamp, Director Enterprise Business Unit at Vodafone Netherlands. "Vodafone's mobile plus strategic objective is to innovate and deliver on customers total communications needs. Alcatel-Lucent has helped us establish the new service, which is a next step in realizing our strategic objective for the enterprise market." "There is a new business generation that demands services that match their professional and personal lifestyles, and it is our mission to help service providers meet these customers' needs," said Luc Defieuw, head of Alcatel-Lucent's activities in the Benelux, Nordic and Baltic countries. "Vodafone now is in a unique position to offer its customers a full mobile solution for company communications." Alcatel-Lucent's mobile enterprise voice solution for Vodafone includes the Alcatel-Lucent Feature Server, Alcatel-Lucent Network Controller, Alcatel-Lucent Media Gateway, Alcatel-Lucent Firewall Brick and Alcatel-Lucent VitalSuite Performance Management Software. About Vodafone Libertel N.V Vodafone is one of the largest mobile telecommunications companies in the Netherlands and is part of the worldwide Vodafone Group, the world's leading telecommunications company for mobile telephony with over 191 million proportionate customers on five continents. The Vodafone Group has holdings in the share capital of mobile operators in 26 countries and collaborative arrangements with partner networks in 34 countries. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Indonesia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported on Dec. 14, 2006, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel-Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel- Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence, expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferred, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non- U.S. activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings is stable. This rating action concludes the rating reviews initiated on April 3, 2006. Standard & Poor's, on Dec. 6, 2006, said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent -- to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006, research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. S&P said the outlook is positive. COOPER COS: Moody's Assigns Ba3 Rating on US$350-Mln Sr. Notes -------------------------------------------------------------- Moody's Investors Service assigned a Ba3 (LGD3/45%) rating to The Cooper Companies, Inc.'s US$350 million senior unsecured notes due 2015. Proceeds from the notes, along with a new US$650 million five year revolving credit facility, will be used to refinance the company's existing bank credit facilities comprised of a US$500-million revolver and a US$250-million term loan, which will be terminated. The proposed revolver will contain a US$250-million accordion that will be available throughout the life of the facility. Concurrently, Moody's assigned a Ba3 Corporate Family Rating, Ba3 Probability of Default Rating, SGL-1 Speculative Grade Liquidity Rating, and a stable ratings outlook. The Ba3 Corporate Family Rating primarily reflects the company's size, moderate amount of debt and stable free cash flow. "Based on Moody's Medical Products and Device Rating Methodology, the company's revenue size at US$859 million for the twelve months ended Oct. 31, 2006, maps it to the middle of the 'Ba' rating category," said Sidney Matti, Analyst at Moody's. "Moody's expects that the company's revenue size will grow over the next few years, which will move it toward the upper end of the 'Ba' rating category," said Matti. With minimal increases in debt as part of the proposed transaction, pro forma adjusted debt to EBITDA will remain at 3.7 times. Moody's expects that the company's adjusted leverage position will decline to below 3.5 times by Oct. 31, 2007. The Corporate Family Rating reflects the recent changes to Cooper's 2007 revenue guidance, its highly acquisitive nature and the competitiveness of the contact lens market. The company has guided projected revenues for fiscal year 2006 and fiscal year 2007 downward over the past few quarters because of ramp-up issues related to the silicon hydrogel product and the introduction of the strip blister packaging in Japan. Matti also stated that, "Over the past two and a half years, Cooper has spent about US$680 million in debt-financed acquisitions in order to strengthen its position in both the contact lens and women's healthcare divisions." Moody's expects Cooper to continue to engage in acquisitions within the women's healthcare division with limited acquisition opportunities in the contact lens arena. Currently, the four largest players in the contact lens market have an estimated combined 96% market share, according to Moody's. The stable ratings outlook anticipates the contact lens and women's healthcare markets will continue to grow as the need for each product increases driven by changing demographics. With its position within both segments, Cooper should benefit from this growth. The outlook also considers that the company will not engage in a material acquisition over the ratings horizon. The SGL-1 rating recognizes that over the next twelve months ended Oct. 31, 2007, Moody's expects Cooper to generate cash flow from operations sufficient to cover the company's capital spending needs. Additionally, the company will have material availability under the proposed US$650-million revolving credit facility and adequate cushion under the revolver covenants. The following ratings were assigned: -- Ba3 (LGD3/45%) US$350 million senior unsecured note rating; -- Ba3 Probability of Default rating; -- SGL-1 Speculative Grade Liquidity rating; and -- Ba3 Corporate Family Rating. Headquartered in Pleasanton, California, The Cooper Companies, Inc., through its principal business units, develops, manufactures and markets healthcare products. Cooper reported total revenues for the year ended Oct. 31, 2006, of US$859 million. ============= G E O R G I A ============= BANK OF GEORGIA: Fitch Lifts Issuer Default Rating to B ------------------------------------------------------- Fitch Ratings assigned BG Finance B.V.'s upcoming senior notes issue expected ratings of Long-term 'B' and Recovery 'RR4'. The issue is to be used solely for financing a loan to JSC Bank of Georgia, which has been upgraded to foreign and local currency Issuer Default ratings of 'B' from 'B-'. BG Finance will only pay noteholders amounts received from BoG under the loan agreement. BG Finance will grant security over the loan to a trustee, the Bank of New York, for the benefit of noteholders. The final ratings of the issue are contingent on receipt of final documentation conforming materially to information already received. Noteholders' claims will rank at least equally with the claims of other senior unsecured creditors of BoG, save those preferred by relevant laws. Under Georgian law, term and demand deposits of retail and corporate customers and banks, as well as all claims of the National Bank of Georgia, rank ahead of those of other senior unsecured creditors. At end-9M06, such balances comprised around 36% of BoG's liabilities, according to the bank's reviewed IFRS accounts. This degree of subordination is not sufficient for Fitch to assign lower Recovery and Long-term ratings than 'RR4' and 'B' to the current transaction. However, the agency notes that should the degree of subordination of noteholders increase, the ratings of the notes could come under pressure. That said, at present such changes are not expected by Fitch. The loan agreement contains a negative pledge clause, which allows for a certain degree of securitization by BoG and its subsidiaries. In the event of any securitization, Fitch comments that the nature and extent of any over- collateralization would be assessed by the agency for any potential impact on unsecured creditors. The loan agreement also limits mergers and disposals by BoG and its subsidiaries and obliges them to carry out any transactions with affiliates on market terms. BoG has also made covenant to limit any equity distributions to 50% of consolidated IFRS net profit, investments in non-banking subsidiaries to 20% of consolidated IFRS assets, guarantees issued in favour of any subsidiaries to 1% of consolidated IFRS assets and exposure to any single counterparty to 20% of IFRS capital. In addition, the bank has made a covenant to maintain Basel I Tier 1 and Total capital-to-risk weighted assets ratios at a minimum of 10% and 12%, respectively. The noteholders are also provided with a put option, should a rating downgrade or withdrawal be triggered by certain factors. BoG is a systemically important bank with an around 28% share in banking sector assets at end-November 2006. Primarily foreign portfolio investors broadly hold the bank. ============= G E R M A N Y ============= ALNUS GMBH: Creditors' Meeting Slated for February 14 ----------------------------------------------------- The court-appointed insolvency manager for Alnus GmbH, Detlef Ruediger Beckmann, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 12:05 p.m. on Feb. 14. 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 noon on May 23, at the same venue. Creditors have until March 30 to register their claims with the court-appointed insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against Alnus GmbH on Dec. 20, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Alnus GmbH Glasower Str. 65-66 12051 Berlin, Germany The insolvency manager can be reached at: Dr. Detlef Ruediger Beckmann Lietzenburger Road 77 10719 Berlin, Germany BENQ CORP: Sentex Submits EUR52 Million Bid for Bankrupt Assets --------------------------------------------------------------- Sentex Sensing Technology Inc. submitted a EUR52 million bid for the assets of BenQ Mobile GmbH & Co. OHG, the bankrupt German unit of Taiwan-based BenQ Corp., the Associated Press reports. According to AP, Henrik Rubenstein, Sentex's chief executive officer, told Dow Jones Newswires that the bid is based on an earn-out model, which would base payments on BenQ Mobile's financial success in the future. Mr. Rubenstein added that the company had secured a "three-digit million euro sum" of working capital financing, AP relates. In a TCR-Europe report on Jan. 12, Sentex said it 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. Other Bidders As previously reported in the Troubled Company Reporter-Europe, German laptop computer company Bacoc is also in talks with BenQ Mobile over its plans to acquire the company's business. Bacoc, which eyes a two-third reduction of BenQ's work force, plans to retain BenQ's facility in Kamp-Lintfort in North Rhine- Westphalia and close down the central office in Munich. It is targeting sales of 4.5 million units in 2007. In addition, a U.S.-German investor group headed by Hansjorg Beha, a former Daimler-Benz executive, and Gilbert Amelio, a former chairman of Apple Computer Inc., are in talks with BenQ regarding a potential bid for BenQ's assets. Unnamed sources had told German news magazine Spiegel that the investor group is seeking: -- up to EUR100 million in state-backed credit lines; -- compensation for employing 800 out of 3,000 BenQ Mobile employees, who have since been transferred to a temporary organization funded by Siemens and the Federal Employment Agency; and -- rights to BenQ Corp.'s brand names. However, the Land of North-Rhine Westphalia declared that it was only prepared to pay less than EUR100 million in state guarantee, as a higher amount would cause problems with EU law, Suddeutsche Zeitung relates. As reported in the TCR-Europe on Jan. 16, Messrs. Amelio and Beha said they would aim to hit break-even for the mobile company this year and report a EUR10 million profit in 2008. The managers are optimistic BenQ Mobile could double its mobile phone production to 8 million units by 2008. 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. More than 3,000 manufacturing workers have been affected in the company's insolvency proceedings after it disclosed of plans to reduce two-thirds of its work force. The mobile unit took over a factory in Kamp Lintfort in western Germany from Siemens, which cost Siemens more than US$1 billion. Under the agreement, BenQ will have the right to use the Siemens brand for five years. Siemens owns a 2.5 percent stake in BenQ Corp. * * * 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. BENQ CORP: Inks Mobile Phone Warranty Agreement with Siemens AG --------------------------------------------------------------- Siemens AG and BenQ Corp. have reached an agreement on the continuation of warranty services for mobile phones sold under the brand names "Siemens" and "BenQ Siemens." BenQ Corp. has commissioned B2X Care Solutions GmbH to continue services for mobile phones of either brand. Siemens is supporting this agreement. Sales partners and end customers can thus continue to use the existing channels in case of claims. The long-term agreement has been valid since the beginning of January 2007. Within the framework of this agreement, B2X is taking over the warranty services for sales partners and end customers in Europe, Russia and Latin America. The warranty claims of Asian customers will be dealt with directly by BenQ Corp. To guarantee the provision of services for mobile phones, Siemens has agreed with BenQ Corp. to use the payments originally due in December. Siemens has recently provided a solid financial basis for the job placement companies for employees of BenQ Mobile OHG in North Rhine-Westphalia and Bavaria. A EUR10 million aid fund has also been set up by Siemens for supporting employees in financial difficulties. Through the job exchange established by Siemens for employees of BenQ Mobile OHG, over 690 interviews have been scheduled at Siemens. Round about 150 concrete job offers have so far been made. In addition, Siemens has secured the continuation of training for 88 trainees of BenQ Mobile within Siemens AG. About Siemens Siemens (Berlin and Munich) -- http://www.siemens.com/-- is a global powerhouse in electrical engineering and electronics. The company has around 461,000 employees working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of services for individual requirements. Siemens provides innovative technologies and comprehensive know-how to benefit customers in 190 countries. Founded more than 155 years ago, the company focuses on the areas of Information and Communications, Automation and Control, Power, Transportation, Medical, and Lighting. In fiscal 2006 (ended Sept. 30), Siemens had sales from continuing operations of EUR87.3 billion and net income of EUR3.1 billion. About BenQ Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BenQ Mobile filed for insolvency in Germany on Sept. 29, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. More than 3,000 manufacturing workers have been affected in the company's insolvency proceedings after it disclosed of plans to reduce two-thirds of its work force. The mobile unit took over a factory in Kamp Lintfort in western Germany from Siemens, which cost Siemens more than US$1 billion. Under the agreement, BenQ will have the right to use the Siemens brand for five years. Siemens owns a 2.5 percent stake in BenQ Corp. * * * As reported in the TCR-AP on Oct. 31, Taiwan Ratings Corp. affirmed its twBB+/twB corporate credit ratings and twBB+ unsecured corporate bond issue rating on BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings removed all ratings from Credit Watch with negative implications, where they were placed on March 14, 2006, and withdrew all the ratings upon the company's request. CREATIV GASTSTATTEN: Claims Registration Ends February 14 --------------------------------------------------------- Creditors of Creativ Gaststatten-Betriebs GmbH have until Feb. 14 to register their claims with court-appointed insolvency manager Thilo Braun. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 Karlsruhe Hall IV 1st Floor Schlossplatz 23 76131 Karlsruhe, 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 Karlsruhe opened bankruptcy proceedings against Creativ Gaststatten-Betriebs GmbH on Dec. 21, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Creativ Gaststatten-Betriebs GmbH Attn: Stefan Drexel and Mirko Poluschny, Managers Amalienstr. 75 76133 Karlsruhe, Germany The insolvency manager can be contacted at: Thilo Braun Schillerstr. 2 79102 Freiburg, Germany Tel: (0761) 70 39 00 CSH CABIN: Claims Registration Ends February 16 ----------------------------------------------- Creditors of CSH Cabin Systems Holding GmbH have until Feb. 16 to register their claims with court-appointed insolvency manager Joachim Buettner. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 21, 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 Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the 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 Hamburg opened bankruptcy proceedings against CSH Cabin Systems Holding GmbH on Dec. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: CSH Cabin Systems Holding GmbH Willy-Brandt-Road 57 20457 Hamburg, Germany Attn: Karsten Lehrke, Manager Letheblick 2 26203 Wardenburg, Germany The insolvency manager can be contacted at: Joachim Buettner Osdorfer Highway 230 22549 Hamburg, Germany DAIMLERCHRYSLER AG: To Ink Deal to Sell EADS Stake This Month ------------------------------------------------------------- DaimlerChrysler AG will sign this month a contract to sell its 7.5% stake in European Aeronautic Defence & Space Co. to a consortium of financial institutions organized by the German government, WirtschaftsWoche reports. In a TCR-Europe report on Jan. 16, the consortium -- comprising of Credit Suisse Group, Morgan Stanley, Goldman Sachs Group Inc., Deutsche Bank AG and Commerzbank AG, insurer Allianz SE, government-backed KfW Banking Group and banks of German federal states -- would buy the stake using derivatives, worth EUR1.5 billion based on EADS's stock-market value, the Wall Street Journal relates. The 7.5% stake would be carved into: -- 60% for Credit Suisse, Morgan Stanley, Goldman Sachs, Deutsche Bank and Commerzbank; -- 13% for KfW Group; -- 10% for Hamburg; -- 5% for Baden-Wuerttemberg; -- 5% for Bavaria; -- 5% for Lower Saxony; and -- 2% for Bremen. Daimler, which repurchased the stake after four years, would remain a shareholder and keep its voting rights for the entire stake of 22.5%, WSJ cites a source privy to the matter. The German government has been looking for a solution to safeguard its interest in EADS as well as to allow Daimler to cut its stake without risking the balance between German and French interests in the aeronautics firm, WSJ relays. 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. M & C OSWALD: Creditors' Meeting Slated for February 12 ------------------------------------------------------- The court-appointed insolvency manager for M. & C. Oswald Kunststofftechnik GmbH, Thomas Maier, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 2:00 p.m. on Feb. 12. 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 12, at the same venue. Creditors have until Feb. 28 to register their claims with the court-appointed insolvency manager. The District Court of Pirmasens opened bankruptcy proceedings against M. & C. Oswald Kunststofftechnik GmbH on Dec. 28, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: M. & C. Oswald Kunststofftechnik GmbH Attn: Franz Anton Dachs, Manager Hauptstrasse 166 66976 Rodalben, Germany The insolvency manager can be reached at: Thomas Maier Pirmasenser Road 18 66994 Dahn, Germany Tel: 063 91/92280 Fax: 063 91/922899 E-mail: insolvenz@stb-maier.de M.S. BAU: Claims Registration Ends February 19 ---------------------------------------------- Creditors of M.S. Bau Massiv-System-Bau GmbH have until Feb. 19 to register their claims with court-appointed insolvency manager Andreas Kienast. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on March 20, 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 Tostedt Meeting Room I Area CE.02 Linden 23 21255 Tostedt, 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 Tostedt opened bankruptcy proceedings against M.S. Bau Massiv-System-Bau GmbH on Dec. 21, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: M.S. Bau Massiv-System-Bau GmbH Attn: Walter Vogt, Manager Schwarzenberg 30 21629 Neu Wulmstorf, Germany The insolvency manager can be contacted at: Andreas Kienast Johnsallee 7 20148 Hamburg, Germany Tel: 040/808065920 Fax: 040/808065999 NURA ARABISCHE: Claims Registration Ends February 19 ---------------------------------------------------- Creditors of "NURA" arabische Backwaren, Lebensmittel Im- und Export GmbH have until Feb. 19 to register their claims with court-appointed insolvency manager Thilo Streck. Creditors and other interested parties are encouraged to attend the meeting at 10:55 a.m. on March 19, 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 Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the 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 Hamburg opened bankruptcy proceedings against "NURA" arabische Backwaren, Lebensmittel Im- und Export GmbH on Dec. 29, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: "NURA" arabische Backwaren, Lebensmittel Im- und Export GmbH Beerenweg 1 b 22761 Hamburg, Germany Attn: Ahmed Mireh, Manager Goldbachstrasse 8 22765 Hamburg, Germany The insolvency manager can be contacted at: Dr. Thilo Streck Neuer Wall 86 20354 Hamburg, Germany O + H VERWALTUNGS: Creditors' Meeting Slated for February 14 ------------------------------------------------------------ The court-appointed insolvency manager for O + H Verwaltungs Holding GmbH, Wolfgang Schroeder, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 12:10 p.m. on Feb. 14. 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 12:05 p.m. on May 23, at the same venue. Creditors have until March 30 to register their claims with the court-appointed insolvency manager. The District Court of Aschaffenburg opened bankruptcy proceedings against O + H Verwaltungs Holding GmbH on Dec. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: O + H Verwaltungs Holding GmbH Katharinenstrasse 18 10711 Berlin, Germany The insolvency manager can be reached at: Dr. Wolfgang Schroeder Genthiner Str. 48 10785 Berlin, Germany ROSE GMBH: Claims Registration Ends February 12 ----------------------------------------------- Creditors of Rose GmbH have until Feb. 12 to register their claims with court-appointed insolvency manager Sabine Fochler. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on March 12, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Neubrandenburg Hall 1 Friedrich-Engels-Ring 15-18 Neubrandenburg, 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 Neubrandenburg opened bankruptcy proceedings against Rose GmbH on Dec. 28, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Rose GmbH Otto-Intze-Str. 2 17192 Waren, Germany The insolvency manager can be contacted at: Sabine Fochler Schwedenstrasse 7 17033 Neubrandenburg, Germany SEEMANN FRISCHEVERTRIEB: Creditors' Meeting Slated for Feb. 12 -------------------------------------------------------------- The court-appointed insolvency manager for Seemann Frischevertrieb-Fruchthandel GmbH, Markus Lehmkuehler, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:00 a.m. on Feb. 12. The meeting of creditors and other interested parties will be held at: The District Court of Saarbruecken Meeting Room 24 2nd Floor Branch Office Sulzbach Vopeliusstrasse 2 66280 Sulzbach, Germany The Court will also verify the claims set out in the insolvency manager's report March 12, at the same venue. Creditors have until Feb. 23 to register their claims with the court-appointed insolvency manager. The District Court of Saarbruecken opened bankruptcy proceedings against Seemann Frischevertrieb-Fruchthandel GmbH on Dec. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Seemann Frischevertrieb-Fruchthandel GmbH Attn: Karl Seemann, Manager Gueterbahnhof 6 66386 St Ingbert, Germany The insolvency manager can be reached at: Markus Lehmkuehler Wilhelmstr. 40 53111 Bonn, Germany Tel: 0228-92 66 60 Fax: 0228-92 66 699 SMARTHAUS GMBH: Claims Registration Ends February 14 ---------------------------------------------------- Creditors of Smarthaus GmbH have until Feb. 14 to register their claims with court-appointed insolvency manager Tobias Schulze. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 28, 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 Rostock Hall 330 Zochstrasse 18057 Rostock, 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 Rostock opened bankruptcy proceedings against Smarthaus GmbH on Jan. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Smarthaus GmbH Attn: Olaf Zuelow, Manager Dehmelstrasse 3 18055 Rostock, Germany The insolvency manager can be contacted at: Dr. Tobias Schulze Campus 1-11 18182 Bentwisch, Germany STUMPF GMBH: Claims Registration Ends February 12 ------------------------------------------------- Creditors of Stumpf GmbH have until Feb. 12 to register their claims with court-appointed insolvency manager Nikolaus Schmidt. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on March 12, 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 Leipzig Hall 145 1st Floor Enforcement Court Bernhard Goering Road 64 04275 Leipzig, 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 Leipzig opened bankruptcy proceedings against Stumpf GmbH on Dec. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Stumpf GmbH Doebichauerstrasse 9d 04435 Schkeuditz OT Doelzig, Germany Attn: Brigitte Ruppert, Manager Ruststrasse 24 04229 Leipzig, Germany The insolvency manager can be contacted at: Dr. Nikolaus Schmidt Magdeburger Str. 23 06112 Halle, Germany Tel: 0345/231110 Fax: 0345/2311199 SUPER BAYERN: Claims Registration Ends February 13 -------------------------------------------------- Creditors of Super Bayern Verlag GmbH have until Feb. 13 to register their claims with court-appointed insolvency manager Barbara Beutler. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on March 13, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 80097 Munich, 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 Munich opened bankruptcy proceedings against Super Bayern Verlag GmbH on Dec. 22, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Super Bayern Verlag GmbH Attn: Falk Diehl, Manager Agnes-Bernauer-Str. 15 a 80673 Munich, Germany The insolvency manager can be contacted at: Barbara Beutler Schwanthalerstr. 32 80336 Munich, Germany Tel: 089/54511-0 Fax: 089/54511-444 VOLKSWAGEN AG: MAN Drops Scania Takeover; Opens Merger Talks ------------------------------------------------------------ MAN AG, absent Volkswagen AG's support, ended its EUR10.3 billion hostile bid for Scania AB saying it will opt for a friendly merger with the truck company, Jeremy van Loon writes for Bloomberg News. In a press release, MAN disclosed that discussions between Volkswagen, Investor, and MAN have shown that there is an industrial logic behind a combination of MAN, Scania and Volkswagen Heavy Trucks. But both Volkswagen and Investor AB have rejected such a combination by way of the current offer by MAN for Scania. MAN decided not to amend the terms and conditions or timing of its offer but will seek the approval of the Swedish Securities Council to withdraw the offer as it is clear that the conditions of the offer will not be met by Jan. 31. As Scania's shareholder, MAN is looking forward to entering into further discussions during 2007 to seek a friendly combination of MAN, Scania and Volkswagen Heavy Trucks. "Removing this offer from the table was always the basic requirement for some kind of combination of these three to work," Robert Heberger, an analyst at Merck Finck in Munich told Bloomberg. "Now all options are on the table." "The Board of Scania has previously said it was open for discussions provided MAN withdrew its hostile offer," Scania was quoted by Bloomberg as saying. "Such discussions must however build on industrial and commercial logic." According to Bloomberg, Investor AB, the second largest shareholder of Scania stated that it welcomed the announcement. Dropping the hostile nature of the offer allows the companies to view at opportunities to combine "without the pressure," Investor stated. "Investor will continue to support Scania's successful development as a stand-alone company, but we will naturally evaluate possible industrial partnerships and combinations in order to develop Scania further," the Swedish holding company owned by the Wallenberg family disclosed. In an e-mailed statement, Volkswagen also welcomed the decision by MAN and is "convinced that a friendly solution is the best way to take advantage of the synergy potentials of a combination." Volkswagen holds the biggest share in Scania with 34% of the voting rights and 18.7% of the equity. VW also holds a 20% stake in MAN. A combination of MAN and Scania would create Europe's biggest maker of commercial vehicles by market share and the world's third biggest behind Sweden's Volvo AB and Germany's DaimlerChrysler AG. 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 then CEO Bernd Pischetsrieder and former Volkswagen brand head, Wolfgang Bernhard. In November 2005, 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. VOLKSWAGEN AG: MAN AG Reinforces Support to CEO Samuelsson ---------------------------------------------------------- MAN AG's supervisory board reinforced their support to Chief Executive Officer Hakan Samuelsson after Der Spiegel reported on Jan. 20 that Volkswagen AG wants Mr. Samuelsson removed as part of a plan to a MAN and Scania AB merger, Bloomberg reports. According to Der Spiegel, Volkswagen views Mr. Samuelsson as an obstacle in its plan to merge its Brazilian truck business with MAN and Scania. In a press release, MAN disclosed that the press coverage prompted the standing committee of its supervisory board to reinforce their unanimous support for the position of Mr. Samuelsson as chief executive officer of MAN and expressed their complete trust in him. Volkswagen holds a 20% stake in MAN. It also holds the biggest share in Scania with 34% of the voting rights and 18.7% of the equity. As reported in the TCR-Europe on Jan. 23, Investor AB, the second largest shareholder of Scania owned by the Wallenberg family, reiterated its rejection of MAN AG's EUR10.3 billion hostile bid for Scania, but is open to a friendly merger between Scania and MAN. VW's Supervisory Board of Volkswagen AG rejected MAN's offer to take over Scania on Jan. 11. It has requested that the Board of Management worked on a friendly merger of Scania and MAN. A combination of MAN and Scania would create Europe's biggest maker of commercial vehicles by market share and the world's third biggest behind Sweden's Volvo AB and Germany's DaimlerChrysler AG. 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 then CEO Bernd Pischetsrieder and former Volkswagen brand head, Wolfgang Bernhard. In November 2005, 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. ============= I R E L A N D ============= NOMOS CAPITAL: Moody's Rates Loan Participation Notes at Ba3 ------------------------------------------------------------ Moody's Investors Service assigned a rating of Ba3 to the Loan Participation Notes to be issued by Nomos Capital Plc, incorporated under the laws of Ireland, for the sole purpose of providing a loan to Nomos Bank. The amount and the tenor of the Notes have yet to be determined. The outlook for the rating is stable. Moody's notes that the Ba3 rating assigned to the Notes is based on the fundamental credit quality of the underlying obligor, Nomos Bank, rated at Ba3/NP/D- (stable), and does not factor in any support from the bank's shareholders or the Russian financial authorities; the rating also reflects the seniority of the notes. The bank's obligations under the loan received from Nomos Capital Plc will rank at least pari passu in right of payment with all other unsecured and unsubordinated obligations of Nomos, except as otherwise provided by mandatory provisions of applicable law. Moody's notes that Russia is in general, a country with individual depositor preference, which may reduce the recovery rates for the bondholders, especially if such deposits were to represent a sizeable proportion of the bank's liabilities in the event of liquidation. According to the terms and conditions of the loan agreement, Nomos Bank must maintain on a consolidated basis a Tier-I capital adequacy ratio of at least 10% as well as comply with the Central Bank's capital regulations and with a number of other covenants such as negative pledge, limitations on mergers and disposals, and transactions with affiliates. The rating agency notes that, while the likelihood of any of the above- mentioned covenants being triggered is relatively low, any such occurrence could potentially have adverse liquidity implications for the bank and, if accompanied at that time by deterioration in the bank's credit standing, might exert additional downward pressure on its ratings. Headquartered in Moscow, Russian Federation, Nomos Bank reported unaudited total consolidated assets of US$3,997 million -- in accordance with IFRS -- as at Sept. 30, 2006. Nomos Capital Plc is the bank's special purpose vehicle domiciled in Ireland. NOMOS CAPITAL: Fitch Rates Upcoming Debt Issue at B+/RR4 -------------------------------------------------------- Fitch Ratings assigned Nomos Capital Plc's upcoming issue of limited recourse loan participation notes expected ratings of Recovery 'RR4' and Long-term 'B+'. The notes are to be used solely for financing a loan to Russia's Nomos Bank, which is rated Issuer Default 'B+' with Stable Outlook, Short-term 'B', Individual 'D', and Support '5'. The final ratings are contingent upon receipt of final documentation conforming materially to information already received. Fitch has also affirmed Nomos's ratings. Nomos Capital P.L.C, incorporated under the laws of Ireland, will only pay noteholders' principal and interest received from Nomos under the loan agreement. It will charge certain rights and interests to BNY Corporate Trustee Services Ltd. for the benefit of the noteholders under a trust deed. Its claims under the loan agreement will rank at least equally with the claims of other unsecured and unsubordinated creditors of Nomos, save those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application. Under Russian law, the claims of retail depositors rank above those of other senior unsecured creditors. At end-Q306, retail deposits accounted for 21% of Nomos' total liabilities, according to the bank's IFRS accounts. The loan agreement contains covenants restricting mergers and disposals by Nomos, and specifies that transactions between the bank and its affiliates must be done on market terms. The loan agreement limits liens and stipulates that the aggregate amount of funding raised through securitizations is limited to 15% of Nomos's assets. According to the loan agreement, Nomos must maintain a minimum Basel I Tier one capital adequacy ratio of 10% and ensure that dividend payments by the bank and its subsidiaries do not exceed 50% of net income for the year. The loan agreement also contains a cross default clause, which is triggered by overdue indebtedness of US$20 million or more. Nomos is one of the 20 largest Russian banks, with US$4 billion of total assets as of Sept. 30, 2006. The franchise is currently focused primarily on serving corporates operating in the defense, energy and mining sectors, although a broadening of the corporate franchise and some growth in retail lending are also being pursued. The bank is the third largest bullion trader in Russia and has strong positions in fixed-income trading. Nomos is ultimately controlled by seven individuals, four of whom are owners of the financial and industrial group ICT. ========= I T A L Y ========= ALITALIA SPA: Sets February Meeting to Elect New Board ------------------------------------------------------ Alitalia S.p.A. will hold a shareholders' meeting either on Feb. 22 or 28 to elect a new set of board of directors, Philip Webster writes for AFX News. In a TCR-Europe report on Jan. 19, Jean-Cyril Spinetta, chief executive officer of Air France-KLM, resigned as a director of Alitalia. Following his resignation, Alitalia now has only two members of the board: Chief Executive Giancarlo Cimoli and government representative Giovanni Sabatini. Alitalia's by-laws require that the board comprise three to five directors. Four of Alitalia's board members resigned in the past six months, with one being replaced by Mr. Saba, AFX News reports. With just two members, the carrier's board was effectively dissolved. 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. FIAT SPA: Alfa Romeo Division Will Return to U.S. Market by 2009 ---------------------------------------------------------------- Fiat S.p.A.'s Alfa Romeo division will market its cars in the U.S. by the end of 2009 after an absence of more than 10 years, Bloomberg News cites Il Sole/24 Ore. According to Il Sole, the division has an initial sales target of 20,000 cars by selling its Brera, Spider and 159 models. "If we should end up selling our full product range, our potential in the U.S. is 50,000 cars," Il Sole quoted Antonio Baravelle, Alfa Romeo's brand chief. The 8C Competizione, a two-seat coupe may be available to U.S. customers by 2008, Il Sole added. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported in the TCR-Europe on Nov. 6, 2006, Moody's Investors Service changed the outlook on Fiat S.p.A.'s Ba3 Corporate Family Rating to positive from stable and affirmed the long-term senior unsecured ratings as well as the short-term non-Prime rating. Issuers: Fiat Finance & Trade Ltd. Fiat Finance Canada Ltd. Fiat Finance Luxembourg S.A. Fiat Finance North America Inc. Fiat France S.A. Fiat S.p.A. * Outlook, Changed To Positive From Stable On Oct. 4, 2006, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. This follows Fiat's exercise of its call option to buy back 29% of Ferrari's capital from a consortium led by Mediobanca. Fitch said the Outlook is Positive. On Aug. 8, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Fiat S.p.A. to 'BB' from 'BB-'. At the same time, Standard & Poor's affirmed its 'B' Short-term rating on Fiat. S&P said the outlook is stable. POPOLARE ITALIANA: Shareholders Reinstate Suspended CEO Gronchi --------------------------------------------------------------- Banca Popolare Italiana's shareholders voted Jan. 20 to reinstate suspended Chief Executive Officer Divo Gronchi to his post, Bloomberg News reports. According to AFX News Ltd., 1,885 out of 2,847 investors, representing 66%, rejected a motion to remove Mr. Gronchi. "I am very happy about how the vote went," Mr. Gronchi was quoted by Bloomberg as saying. Mr. Gronchi was suspended on Dec. 13, 2006, after his conviction on the Bagaglino/Italcase bankruptcy case. At the time of his suspension, he was the managing director of Banca Monte dei Paschi di Siena S.p.A. According to Bloomberg News, Mr. Gronchi became chief executive in January 2006, after his predecessor, Gianpiero Fiorani, resigned and was jailed for alleged securities violations in BPI's attempt to purchase Banca Antonveneta S.p.A. in 2005. Mr. Gronchi reorganized BPI and negotiated its sale to Popolare di Verona in Oct. 2006. Merger with Banco Popolare di Verona e Novara As reported in the TCR-Europe on Dec. 19, 2006, Banca Popolare Italiana will merge with Banco Popolare di Verona e Novara in the middle of 2007, which would be approved by shareholders in March. According to AFX, BPI President Dino Piero Giarda disclosed that he expects Bank of Italy's inquiry on the planned merger will be resolved by Jan. 26, in time for the definitive merger proposals to be filed. "We are looking at a series of alternatives," Mr. Giarda was quoted by AFX as saying. Mr. Giarda added there are close contacts with the Bank of Italy. About Banca Popolare Italiana Headquartered in Lodi, Italy, Banca Popolare Italiana -- http://www.bancapopolareitaliana.it/-- attracts deposits and offers commercial banking services. The Bank offers securities brokerage, asset management, mortgage loans, insurance, lease financing and treasury services and manages mutual funds. Through a subsidiary, Banca Popolare Italiana offers merchant banking services and medium- and long-term lending. * * * As reported in the TCR-Europe on Oct. 19, 2006, Moody's Investors Service placed on review for possible downgrade the A2 long-term and Prime-1 short-term senior debt and bank deposit ratings of Banco Popolare di Verona e Novara, as well as its C+ financial strength rating, following the announcement that BPVN's proposal to merge with Banca Popolare Italiana has been approved by BPI's board of directors. At the same time, Moody's placed on review for possible upgrade BPI's Baa2 long-term and Prime-2 short-term bank deposit and debt ratings and its D financial strength rating, as well as the Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term lending and investment banking subsidiary. Ratings placed on review for possible downgrade: Banco Popolare di Verona e Novara: * long-term debt and deposits at A2 * short-term deposit and debt ratings at Prime-1 * commercial paper rating at Prime-1 * subordinated debt at A3; junior subordinated debt at A3 * Tier 3 debt at Baa1 Banco Popolare di Verona e Novara, London: * short-term deposit and debt ratings at P-1 Ratings placed on review for possible upgrade: Banca Popolare Italiana: * Long-term debt and deposit ratings at Baa2 * Short-term debt and deposit ratings at Prime-2 * Financial Strength Rating at D * subordinated debt rating at Baa3 * junior subordinated debt at Ba1 * Tier III debt at Ba2 Banca Popolare di Lodi Investor Trust III: * non-cumulative guaranteed Trust Preferred Securities at Ba2 Efibanca: * Long-term deposit rating at Baa3 * Short-Term deposit rating at Prime-3 * Financial Strength Rating at D * backed long-term debt at Baa2 * backed subordinated debt at Baa3 As reported in the TCR-Europe on Oct. 18, 2006, Fitch Ratings placed Banco Popolare di Verona e Novara's A+ Issuer Default rating and B Individual rating on Rating Watch Negative. Its other ratings are affirmed at Short-term F1 and Support 3. At the same time, the agency placed Banca Popolare Italiana's BBB IDR, F3 Short-term and C Individual ratings on Rating Watch Positive. Its Support rating is affirmed at 3. The rating action follows the announcement by BPI's board of directors that it has accepted a merger offer by BPVN. Fitch will resolve the Rating Watches on completion of the merger, expected for March 2007. =================== K A Z A K H S T A N =================== AK-ALMA LLP: Creditors Must File Claims by February 22 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Aktube Region declared LLP AK-Alma insolvent. Creditors have until Feb. 22 to submit written proofs of claim to: LLP AK-Alma Altynsarin Str. 31 Aktobe Aktube Region Kazakshtan AKAD-AGRO LLP: Proof of Claim Deadline Slated for February 22 ------------------------------------------------------------- LLP Akad-Agro has declared insolvency. Creditors have until Feb. 22 to submit written proofs of claim to: LLP Akad-Agro Seifullin Str. 2/3-15 Astana, Kazakhstan Tel: 8 (3172) 32-15-20 ALLIANCE BANK: Moody's Assigns Ba2 Rating to Sr. Unsec. Debt ------------------------------------------------------------ Moody's Investors Service assigned a Ba2 long-term foreign currency rating to the senior unsecured debt to be issued by ALB Finance B.V., a Netherlands-based special purpose vehicle wholly owned by Alliance Bank (Kazakhstan), (rated Ba2/NP/E+ with positive outlook) under its US$1.5 billion multiple seniority medium-term note program, rated Ba2/NP for senior unsecured debt and Ba3 for subordinated debt both with positive outlooks. The senior notes will be unconditionally and irrevocably guaranteed by Alliance Bank. The issue will be denominated in euros with a tenor of five years, while the amount and the price of the notes will be determined by market conditions. The outlook for the rating is positive, in line with the positive outlook on the MTN program. Alliance Bank is headquartered in Almaty, Kazakhstan, with reported unaudited total assets of KZT665.4 billion and shareholders' equity of KZT40.6 billion under IFRS at Sept. 30, 2006. As at end-September 2006, Alliance Bank ranked the fourth largest in Kazakhstan in terms of total assets and the fifth largest in terms of shareholders' equity. ALLIANCE BANK: Fitch Affirms Issuer Default Rating at BB- --------------------------------------------------------- Fitch Ratings has affirmed Kazakhstan-based Alliance Bank's ratings at Issuer Default 'BB-', Short-term 'B', Individual 'D' and Support '3'. The Outlook on the Issuer Default rating remains Stable. Fitch has also assigned the upcoming EUR issue of senior unsecured notes under Alliance's and ALB Finance B.V.'s US$1.5 billion global medium-term note program an expected long- term 'BB-' rating. The final rating is contingent on the receipt of final documents conforming to information already received. The program's ratings for senior unsecured notes are Long-term 'BB-' and Short-term 'B'. The IDR, Short-term and Support ratings reflect Fitch's view of the moderate likelihood of state support being available to Alliance if needed. The Individual rating reflects the risks associated with Alliance's very rapid growth, its occasionally tight capitalization and refinancing and structural risks arising from the high share of foreign funding, as well as certain weaknesses in the operating environment. However, it also considers the bank's successful business development, sound asset quality to date and adequate liquidity. "There is no further upward potential for the support floor of Alliance's IDR, given Fitch's current view of the authorities' propensity to provide support to banks of Alliance's size," notes Alexei Kechko, Associate Director of Fitch's Financial Institutions Group in Moscow. "Although significant further gains in market shares could cause Fitch to reconsider its view of the sovereign's propensity to provide support to Alliance, we note that the bank is currently planning to moderate its growth to rates similar to those of competitors." Positive factors for the Individual rating could be a significant moderation of current growth rates, improvement in franchise and better profitability. Downward pressure on the IDR could come from a reduced capacity of the sovereign to provide support, which, however, is not expected given the Positive Outlook on Kazahkstan's IDR's. Downward pressure on the Individual rating could result from significant deterioration in asset quality resulting from currently rapid growth or a further decline in capitalization. Alliance is controlled by Seimar Alliance Financial Corp., which is in turn owned by three brothers. The bank has been growing very rapidly and was the fourth largest in Kazakhstan by assets as of Sept. 30, 2006. Strategy is focused on retail lending and lending to small- to medium-sized enterprises. ALTYN LLP: Claims Filing Period Ends February 27 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Altyn insolvent on Nov. 16, 2006. Creditors have until Feb. 27 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Region Former Kindergarten #51 Micro District 27 Aktau Mangistau Region Kazakhstan Tel: 8 (3292) 41-22-37 ARMAN LLP: Claims Registration Ends February 27 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Arman insolvent on Nov. 16, 2006. Creditors have until Feb. 27 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Region Former Kindergarten #51 Micro District 27 Aktau Mangistau Region Kazakhstan Tel: 8 (3292) 41-22-37 JANALYK LLP: Creditors' Claims Due February 27 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Janalyk insolvent on Nov. 17, 2006. Creditors have until Feb. 27 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Region Former Kindergarten #51 Micro District 27 Aktau Mangistau Region Kazakhstan Tel: 8 (3292) 41-22-37 MARHABAT & K: Creditors Must File Claims by February 22 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region declared LLP Marhabat & K insolvent on Dec. 8, 2006. Creditors have until Feb. 22 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kyzylorda Region Aiteke bi Str. 29 Kyzylorda Kyzylorda Region Kazakhstan METALLURGICHESKY INSTITUTE: Creditors' Claims Due February 28 ------------------------------------------------------------- JSC Karagandinsky Metallurgical Institute Metallurgichesky Institut has declared insolvency. Creditors have until Feb. 28 to submit written proofs of claim to: JSC Metallurgichesky Institut Respublika Ave. 30 Temirtau Karaganda Region Kazakhstan Tel/Fax: 8 (3213) 91-56-26 OTAN ORDA: Proof of Claim Deadline Slated for February 22 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region declared LLP Otan Orda insolvent on Dec. 12, 2006. Creditors have until Feb. 22 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kyzylorda Region Aiteke bi Str. 29 Kyzylorda Kyzylorda Region Kazakhstan REMSTROY-XXI LLP: Claims Filing Period Ends February 28 ------------------------------------------------------- LLP Remstroy-XXI has declared insolvency. Creditors have until Feb. 28 to submit written proofs of claim to: LLP Remstroy-XXI Naberejnaya Str. 3 Badam Sairamsky District South Kazakhstan Region Kazakhstan SPETSREMSTROY LLP: Claims Registration Ends February 22 ------------------------------------------------------- LLP Spetsremstroy has declared insolvency. Creditors have until Feb. 22 to submit written proofs of claim to: LLP Spetsremstroy Pervy Mai Str. 40-167 Pavlodar Pavlodar Region Kazakhstan =================== K Y R G Y Z S T A N =================== TRANS SHAT-SERVICE: Claims Filing Period Ends March 4 ----------------------------------------------------- LLC Trans Shat-Service has declared insolvency. Creditors have until March 4 to submit written proofs of claim to: LLC Trans Shat-Service Almatinskaya Str. 4 Bishkek, Kyrgyzstan Tel: (+996 312) 53-36-39 ===================== N E T H E R L A N D S ===================== ALB FINANCE: Moody's Assigns Ba2 Rating to Sr. Unsecured Debt ------------------------------------------------------------- Moody's Investors Service assigned a Ba2 long-term foreign currency rating to the senior unsecured debt to be issued by ALB Finance B.V., a Netherlands-based special purpose vehicle wholly owned by Alliance Bank (Kazakhstan), (rated Ba2/NP/E+ with positive outlook) under its US$1.5 billion multiple seniority medium-term note program, rated Ba2/NP for senior unsecured debt and Ba3 for subordinated debt both with positive outlooks. The senior notes will be unconditionally and irrevocably guaranteed by Alliance Bank. The issue will be denominated in euros with a tenor of five years, while the amount and the price of the notes will be determined by market conditions. The outlook for the rating is positive, in line with the positive outlook on the MTN program. Alliance Bank is headquartered in Almaty, Kazakhstan, with reported unaudited total assets of KZT665.4 billion and shareholders' equity of KZT40.6 billion under IFRS at Sept. 30, 2006. As at end-September 2006, Alliance Bank ranked the fourth largest in Kazakhstan in terms of total assets and the fifth largest in terms of shareholders' equity. ALB FINANCE: Fitch Rates Upcoming Eurobond Issue at BB- ------------------------------------------------------- Fitch Ratings has affirmed Kazakhstan-based Alliance Bank's ratings at Issuer Default 'BB-', Short-term 'B', Individual 'D' and Support '3'. The Outlook on the Issuer Default rating remains Stable. Fitch has also assigned the upcoming EUR issue of senior unsecured notes under Alliance's and ALB Finance B.V.'s US$1.5 billion global medium-term note program an expected long- term 'BB-' rating. The final rating is contingent on the receipt of final documents conforming to information already received. The program's ratings for senior unsecured notes are Long-term 'BB-' and Short-term 'B'. The IDR, Short-term and Support ratings reflect Fitch's view of the moderate likelihood of state support being available to Alliance if needed. The Individual rating reflects the risks associated with Alliance's very rapid growth, its occasionally tight capitalization and refinancing and structural risks arising from the high share of foreign funding, as well as certain weaknesses in the operating environment. However, it also considers the bank's successful business development, sound asset quality to date and adequate liquidity. "There is no further upward potential for the support floor of Alliance's IDR, given Fitch's current view of the authorities' propensity to provide support to banks of Alliance's size," notes Alexei Kechko, Associate Director of Fitch's Financial Institutions Group in Moscow. "Although significant further gains in market shares could cause Fitch to reconsider its view of the sovereign's propensity to provide support to Alliance, we note that the bank is currently planning to moderate its growth to rates similar to those of competitors." Positive factors for the Individual rating could be a significant moderation of current growth rates, improvement in franchise and better profitability. Downward pressure on the IDR could come from a reduced capacity of the sovereign to provide support, which, however, is not expected given the Positive Outlook on Kazahkstan's IDR's. Downward pressure on the Individual rating could result from significant deterioration in asset quality resulting from currently rapid growth or a further decline in capitalization. Alliance is controlled by Seimar Alliance Financial Corp., which is in turn owned by three brothers. The bank has been growing very rapidly and was the fourth largest in Kazakhstan by assets as of Sept. 30, 2006. Strategy is focused on retail lending and lending to small- to medium-sized enterprises. ALCATEL-LUCENT: Deploys Mobile Solution to Vodafone Netherlands --------------------------------------------------------------- Alcatel-Lucent revealed that mobile operator Vodafone Netherlands has deployed a network-based Alcatel-Lucent enterprise solution to enable Vodafone Netherlands to expand the capabilities of its Wireless Office service. The Alcatel-Lucent solution provides Vodafone Netherlands with an opportunity that both addresses the demands of enterprises and transforms the way employees communicate. With this network-based solution, Alcatel-Lucent offers enterprises an alternative choice to meet their communications and business needs. Employees benefit from mobility while having access to their company communications resources, which can increase productivity by eliminating the need to be in the office to access fixed-line PBX or Centrex communications services. In addition, Alcatel-Lucent is offering network integration services, including design and engineering support, for the enterprise solution being offered to Vodafone. Vodafone's enhanced Wireless Office Service is a network-based IP Centrex solution that enables business customers to use mobile phones to access communications features that previously would only have been available via fixed telephones in a company's offices. Features that Vodafone is initially making available on mobile phones are extension dialing, hunt groups to route a call to an available line, placing calls in queue, conferencing, and call transfer. In addition, the solution comprises a receptionist switchboard for handling calls to a company's prime number, geographical numbers (fixed numbers), company numbers (088) and Call Management Software for easy call management by end users. "For business customers it's critical to be able to communicate anywhere anytime. Vodafone has acknowledged this and has introduced its Wireless Office service, which provides the best of both worlds: the functionality of fixed communications with the flexibility of mobile communications," said Jeroen Hoencamp, Director Enterprise Business Unit at Vodafone Netherlands. "Vodafone's mobile plus strategic objective is to innovate and deliver on customers total communications needs. Alcatel-Lucent has helped us establish the new service, which is a next step in realizing our strategic objective for the enterprise market." "There is a new business generation that demands services that match their professional and personal lifestyles, and it is our mission to help service providers meet these customers' needs," said Luc Defieuw, head of Alcatel-Lucent's activities in the Benelux, Nordic and Baltic countries. "Vodafone now is in a unique position to offer its customers a full mobile solution for company communications." Alcatel-Lucent's mobile enterprise voice solution for Vodafone includes the Alcatel-Lucent Feature Server, Alcatel-Lucent Network Controller, Alcatel-Lucent Media Gateway, Alcatel-Lucent Firewall Brick and Alcatel-Lucent VitalSuite Performance Management Software. About Vodafone Libertel N.V Vodafone is one of the largest mobile telecommunications companies in the Netherlands and is part of the worldwide Vodafone Group, the world's leading telecommunications company for mobile telephony with over 191 million proportionate customers on five continents. The Vodafone Group has holdings in the share capital of mobile operators in 26 countries and collaborative arrangements with partner networks in 34 countries. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Indonesia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported on Dec. 14, 2006, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel-Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel- Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence, expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non- U.S. activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings is stable. This rating action concludes the rating reviews initiated on April 3, 2006. Standard & Poor's, on Dec. 6, 2006, said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent -- to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006, research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. S&P said the outlook is positive. BG FINANCE: Moody's Assigns Ba2 Rating on Loan Notes ---------------------------------------------------- Moody's Investors Service assigned a rating of Ba2 to the Loan Participation Notes to be issued on a limited recourse basis by BG Finance B.V., a Dutch-based special purpose vehicle for the sole purpose of providing a senior unsecured loan to Bank of Georgia. The issuer will be accountable to the noteholders only for the amounts actually received from the bank in accordance with the loan agreement. The amount and the tenor of the Notes have yet to be determined. The outlook for the rating is stable. Moody's explains that the Ba2 rating assigned to the notes is based on the fundamental credit strength of BoG, one of the two largest banks in the Georgian banking system, as captured by its Baa3 (stable) global local currency rating, and is higher than its B3 rating for foreign currency deposits. Further, the rating also reflects the probability of a sovereign default in Georgia and the likelihood that the Georgian government could impose a debt moratorium in the event of default on its own foreign currency obligations. The rating also addresses the risk that such a moratorium might include foreign currency loans and that these notes in particular, being dependent upon loan payments by BoG, might be affected. Given that the banking system is an arm of the government's monetary and foreign exchange policy, Moody's believes that credits dependent on bank performance may have a lower probability of having such payments exempted from a moratorium than would, for example, those of a major exporter. The Ba2 rating thus indicates the joint probabilities of default and the standalone rating of the security. A discussion of the rationale behind these credit evaluations can be found in Moody's Rating Methodology entitled "Revised Country Ceiling Policy." According to the terms and conditions of the loan agreement, BoG must maintain on a consolidated basis a Tier 1 capital adequacy ratio of at least 10%, a ratio of single exposure to total capital of not more than 20%, and must comply with the National Bank of Georgia's prudential ratios and other requirements, and with a number of other covenants such as negative pledge, limitations on mergers and disposals, and transactions with affiliates. The rating agency notes that, while the likelihood of any of the above-mentioned covenants being triggered is relatively low, any such occurrence could potentially have adverse liquidity implications for the bank and, if accompanied at that time by deterioration in the bank's credit standing, might exert additional downward pressure on its ratings. Moody's cautions that the transaction also has an embedded rating trigger whereby the notes will become payable if, during the 90 days after the occurrence of change of control of BoG, merger event or assets sale, the bank's ratings are downgraded by one or more notches by two or more rating agencies. Moody's notes that the occurrence of change of control of BoG or its merger or sale of assets will be viewed as a risk factor -- if the noteholders' put option were to be exercised, this could result in the need to repay a sizeable obligation, thus putting a burden on the bank's financial resources and potentially destabilizing the bank's ratings further. Headquartered in Tbilisi, Georgia, Bank of Georgia reported unaudited total consolidated assets of US$494 million -- in accordance with IFRS -- as at Sept. 30, 2006. BG Finance B.V. is the bank's special purpose vehicle domiciled in the Netherlands. BG FINANCE: Fitch Puts B/RR4 Rating to Upcoming Debt Issue ---------------------------------------------------------- Fitch Ratings assigned BG Finance B.V.'s upcoming senior notes issue expected ratings of Long-term 'B' and Recovery 'RR4'. The issue is to be used solely for financing a loan to JSC Bank of Georgia, which has been upgraded to foreign and local currency Issuer Default ratings of 'B' from 'B-'. BG Finance will only pay noteholders amounts received from BoG under the loan agreement. BG Finance will grant security over the loan to a trustee, the Bank of New York, for the benefit of noteholders. The final ratings of the issue are contingent on receipt of final documentation conforming materially to information already received. Noteholders' claims will rank at least equally with the claims of other senior unsecured creditors of BoG, save those preferred by relevant laws. Under Georgian law, term and demand deposits of retail and corporate customers and banks, as well as all claims of the National Bank of Georgia, rank ahead of those of other senior unsecured creditors. At end-9M06, such balances comprised around 36% of BoG's liabilities, according to the bank's reviewed IFRS accounts. This degree of subordination is not sufficient for Fitch to assign lower Recovery and Long-term ratings than 'RR4' and 'B' to the current transaction. However, the agency notes that should the degree of subordination of noteholders increase, the ratings of the notes could come under pressure. That said, at present such changes are not expected by Fitch. The loan agreement contains a negative pledge clause, which allows for a certain degree of securitization by BoG and its subsidiaries. In the event of any securitization, Fitch comments that the nature and extent of any over- collateralization would be assessed by the agency for any potential impact on unsecured creditors. The loan agreement also limits mergers and disposals by BoG and its subsidiaries and obliges them to carry out any transactions with affiliates on market terms. BoG has also made covenant to limit any equity distributions to 50% of consolidated IFRS net profit, investments in non-banking subsidiaries to 20% of consolidated IFRS assets, guarantees issued in favor of any subsidiaries to 1% of consolidated IFRS assets and exposure to any single counterparty to 20% of IFRS capital. In addition, the bank has made a covenant to maintain Basel I Tier 1 and Total capital-to-risk weighted assets ratios at a minimum of 10% and 12%, respectively. The noteholders are also provided with a put option, should a rating downgrade or withdrawal be triggered by certain factors. BoG is a systemically important bank with an around 28% share in banking sector assets at end-November 2006. Primarily foreign portfolio investors broadly hold the bank. GLOBAL POWER: Court Sets April 18 as General Claims Bar Date ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware set April 18, 2007, as the deadline for all creditors and governmental units owed money by Global Power Equipment Group Inc. and its debtor-affiliates on the account of claims arising prior to Sept. 28, 2006. Copies of written proofs of claim must be sent or hand delivered on or before the April 18 Bar Date to: Global Power Equipment Group, Inc. c/o Alix Partners LLC 2100 McKinney Avenue, Suite 800 Dallas, Texas 75201 The Court also set May 18, 2007, as the deadline for all creditors, including the Debtors, owed money by co-Debtors, sureties or guarantors, on accounts of claims arising prior to Sept. 28, 2006. Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The Company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The Company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. The Official Committee of Unsecured Creditors appointed in the Debtors' cases has selected Landis Rath & Cobb LLP as its counsel. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to filed a chapter 11 plan expires on Jan. 26, 2007. GLOBAL POWER: U.S. Trustee Amends Creditors Committee Membership ---------------------------------------------------------------- Kelly Beaudin Stapleton, the U.S. Trustee for Region 3, amends the membership of the Official Committee of Unsecured Creditors in Global Power Equipment Group Inc. and its debtor-affiliates' chapter 11 case, to reflect the resignation of D.B. Zwirn Special Opportunity Fund, L.P. The Creditors Committee is now composed of: 1. Steelhead Investments Ltd. Attn: Jeffrey D. Estes c/o HBK Investments L.P. 300 Crescent Court Dallas, TX 75201 Phone: 214-758-6107 Fax: 214-758-1207; 2. Kings Road Investments Ltd. Attn: Erik M.W. Casperson 598 Madison Avenue, 14th Floor, New York, NY 10022 Phone: 212-359-7331 Fax: 212-359-7303; 3. Aarding Thermal Acoustics B.V., Attn: Norbert Pieterse/Hugo V. Vredendaal Industrieweg 5g Nunspeet, The Netherlands, 8071 C.S. Phone: 31-341-252635 Fax: 31-341-262112; 4. Fan Group Inc. Attn: John E. Tinsley 1701 Terminal Road Suite B Niles, MI 49120 Phone: 269-687-1216 Fax: 269-683-2789; 5. Turner Industries, Inc. Attn: Don Wendt, 1700 South Westport Drive Port Allen, LA 70767, Phone: 225-376-4157 Fax: 225-376-4176; and 6. Cogburn Bros. Inc. Attn: Scott Sullivan, 3300 Faye Rd. Jacksonville, FL 32226 Phone: 904-358-7344 Fax: 904-358-0446. 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 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 Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The Company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The Company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. The Official Committee of Unsecured Creditors appointed in the Debtors' cases has selected Landis Rath & Cobb LLP as its counsel. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to filed a chapter 11 plan expires on Jan. 26, 2007. GLOBAL POWER: Court OKs Saul Ewing as Equity Panel's Co-Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave the Official Committee of Equity Security Holders of Global Power Equipment Group and its debtor-affiliates to retain Saul Ewing LLP, as its co-counsel, nunc pro tunc to Dec. 1, 2006. The firm will work with Brown, Rudnick, Berlack, Israels, LLP, who is also the Equity Committee's co-counsel, to represent its interest relating to the Debtors' chapter 11 cases. The firm is expected to: a) advise the Equity Committee with respect to its rights, duties and powers in these chapter 11 cases; b) assist and advise the Equity Committee in its consultations with the Debtors relative to the administration of these chapter 11 cases; c) assist the Equity Committee in analyzing the claims of the Debtors' creditors and the Debtors' capital structure and in negotiating with holders of claims and equity interest; d) assist the Equity Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and of the operation of the Debtors' businesses; e) assist the Equity Committee in its investigation of the liens and claims of the Debtors' prepetition lenders and the prosecution of any claims or causes of action revealed by the investigation; f) assist the Equity Committee in its analysis of, and negotiations with, the Debtors or any third party concerning matters related to, among other things, the assumption or rejection of certain leases of nonresidential real property and executory contracts, asset dispositions, financing of other transactions and the terms of one or more plans of reorganization for the Debtors and accompanying disclosure statements and related plan documents; g) assist and advise the Equity Committee as to its communications to equity holders regarding significant matters in these chapter 11 cases; h) represent the Equity Committee at hearings and other proceedings; i) review and analyze applications, orders, statements of operations and schedules filed with the Court and advise the Equity Committee as to their propriety; j) assist the Equity Committee in preparing pleadings and applications as may be necessary in furtherance of the Equity Committee's interests and objectives; k) prepare, on behalf of the Equity Committee, any pleadings, including without limitations, motions, memoranda, complaints, adversary complaints, objections or comments in connection with any of the foregoing; and l) perform other legal services as may be required or are otherwise deemed to be in the interests of the Equity Committee in accordance with the Equity Committee's powers and duties as set forth in the Bankruptcy Code, Bankruptcy Rules or other applicable law. Mark Minuti, Esq., a partner of the firm, will bill US$475 per hour for this engagement. He also discloses that the firm's designated professionals bill: Professional Designation Hourly Rate ------------ ----------- ----------- Jeremy W. Ryan, Esq. Associate US$330 Patrick J. Railey, Esq. Associate US$260 G. David Dean, Esq. Associate US$235 Jason E. Kittinger Paralegal US$150 The firm's other professionals bill: Designation Hourly Rate ----------- ----------- Partners US$335-US$650 Special Counsel US$250-US$440 Paraprofessionals US$95-US$215 Mr. Minuti assures the Court that the firm does not hold any interest adverse to the Debtors, its estate or creditors. Mr. Minuti can be reached at: Mark Minuti, Esq. 222 Delaware Avenue Suite 1200 P.O. Box 1266 Wilmington, DE 19899 Tel: (302) 421-6800 Fax: (302) 421-6813 http://www.saul.com/ Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The Company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The Company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. The Official Committee of Unsecured Creditors appointed in the Debtors' cases has selected Landis Rath & Cobb LLP as its counsel. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to filed a chapter 11 plan expires on Jan. 26, 2007. KONINKLIJKE AHOLD: Rimi Baltic Hikes Sales by 20% to EUR970 Mln --------------------------------------------------------------- Rimi Baltic, a unit of Koninklijke Ahold N.V., increased its net sales for the operating year 2006. Ahold opened 29 new stores in 2006 in the Baltic -- six Rimi hypermarkets, one Rimi supermarket and 22 Supernetto/Saastumarket hard discount stores. These sales allowed the company to maintain its leading positions in Estonia (market share: 24%) and Latvia (market share: 22%) as well as to boost the market share of Rimi's operations in Lithuania, which reached 7%. The market share of Rimi Baltic in the Baltic region grew with one percentage point to 16%. Total investments in all three Baltic countries in 2006 were EUR62 millions. "At the end of the year ICA acquired 50% Kesko Food's shares in Rimi Baltic is now 100% owned by Swedish ICA AB -- being a subsidiary of one company enables us to operate even more effectively" says Rimi Baltic CEO Antonio Soares. Rimi Baltic group sales in 2006 per country, excluding VAT: EUR (Million) Increase, % ------------- ----------- Rimi Eesti Food 345.6 7.2% Rimi Latvia 429.3 23.9% Rimi Lietuva 194.6 40.4% Rimi Baltic 969.5 20.0% Rimi Baltic operates 204 stores in the Baltic region -- 90 in Latvia, 63 in Estonia and 51 in Lithuania. Some 58 Rimi supermarkets, 30 Rimi hypermarkets and 116 hard discount stores (Supernetto in Latvia and Lithuania, Saastumarket in Estonia). Rimi Baltic employs more than 10 000 people. 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 the Dutch 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. =========== R U S S I A =========== AGRO-INVEST LLC: Court Names A. Gubin as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Krasnodar Region appointed Mr. A. Gubin as Insolvency Manager for LLC Agro-Invest (TIN/KPP 2332014635/233201001, OGRN 1022303884767). He can be reached at: A. Gubin Krasnaya Str. 1 Novoukrainskoye Gulkevichskiy Region 352165 Krasnodar Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The hearing in the Court will convene on Nov. 8. The case is docketed under Case No. A-32-9792/2006-2/303-B. The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: LLC Agro-Invest Region of Podstantsii Chernomurovskiy Kavkazskiy region 352142 Krasnodar region Russia BASHKATOVO CJSC: Creditors Must File Claims by March 2 ------------------------------------------------------ Creditors of CJSC Bashkatovo have until March 2 to submit written proofs of claim to: P. Klimenko, Insolvency Manager Office 607 Moskovskoye Shosse 137 Orel Region Russia The Arbitration Court of Orel Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A48-2033/06-20B. The Arbitration Court of Orel Region is located at: Gorkogo Str. 42 302000 Orel Region Russia The Debtor can be reached at: CJSC Bashkatovo Bashkatovo Mtsenskiy Region Orel Region Russia BUILDING MATERIALS: Creditors Must File Claims by March 2 --------------------------------------------------------- Creditors of LLC Factory of Building Materials And Goods (TIN 2354007840) have until March 2 to submit written proofs of claim to: A. Yamaletdinova, Insolvency Manager Post User Box 34 Tsybanobalka Anapa Region Russia The Arbitration Court of Krasnodar Region commenced bankruptcy proceedings against the company after finding it insolvent. The hearing in the Court will convene at 2:15 p.m. on Nov. 28. The case is docketed under Case No. A-32-1942/2006-2/13-B. The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: LLC Factory of Building Materials and Goods Kirpichnaya Str. 1 Bratskiy Tikhoretskiy Region Krasnodar Region Russia CAMOMILE-93 OJSC: Creditors Must File Claims by January 30 ---------------------------------------------------------- Creditors of OJSC Camomile-93 (TIN 6452004467) have until Jan. 30 to submit written proofs of claim to: M. Sotnik, Insolvency Manager Tsvetochnaya Str. 1B 410009 Saratov Region Russia The Arbitration Court of Saratov Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-57-500B/06-23. The Arbitration Court of Saratov Region is located at: Babushkin Vvoz 1 Saratov Region Russia The Debtor can be reached at: OJSC Camomile-93 Chelyuskintsev Str. 99 Saratov Region Russia EAR CJSC: Creditors Must File Claims by January 30 -------------------------------------------------- Creditors of CJSC Ear have until Jan. 30 to submit written proofs of claim to: S. Ryzhkov, Insolvency Manager Office 719 Knipovicha Str. 23 183039 Murmansk Region Russia The Arbitration Court of Murmansk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A42-743 3/2006. The Arbitration Court of Murmansk Region is located at: Knipovicha Str. 20 Murmansk Region Russia The Debtor can be reached at: CJSC Ear Leninskogo Komsomola Str. 18 Zaozersk Murmansk Region Russia EQUIPMENT-1 CJSC: Voronezh Bankruptcy Hearing Slated for Feb. 7 --------------------------------------------------------------- The Arbitration Court of Voronezh Region will convene at 11:00 a.m. on Feb. 7 to hear the bankruptcy supervision procedure on CJSC Equipment-1. The case is docketed under Case No. A14-1549b/2006-231/166. The Temporary Insolvency Manager is: V. Udovenko Apartment 107 Patriotov Pr. 22 394065 Voronezh Region Russia The Arbitration Court of Voronezh Region is located at: Room 606 Srednemoskovskaya Str. 77 Voronezh Region Russia The Debtor can be reached at: CJSC Equipment-1 Tikhaya Sosna Ostrogozhskiy Region 307837 Voronezh Region Russia EUROPE CJSC: Creditors Must File Claims by January 30 ----------------------------------------------------- Creditors of CJSC Europe have until Jan. 30 to submit written proofs of claim to: I. Yas'ko, Insolvency Manager Post User Box 5973 350007 Krasnodar Region Russia The Arbitration Court of Krasnodar Region commenced bankruptcy proceedings against the company after finding it insolvent. The hearing in the Court will convene on March 20. The case is docketed under Case No. A-32-19389/2006-44/1483-B. The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: CJSC Europe Krasnaya Str. 33 350000 Krasnodar Region Russia IVANOVSKIY KHLADOKOMBINAT 4: Asset Sale Slated for January 31 ------------------------------------------------------------- CJSC Consulting Company Nikons, the bidding organizer for OJSC Ivanovskiy Khladokombinat 4, will open a public auction for the company's properties at 2:00 p.m. on Jan. 31 at: OJSC Ivanovskiy Khladokombinat 4 Parizhskoy Kommuny Str. 62 Ivanovo Region Russia The company has set a RUR43,090,000 starting price for the auctioned assets. Interested participants have until noon on Jan. 30 to deposit an amount of RUR8 million to: OJSC Ivanovskiy Khladokombinat 4 Settlement Account 40702810117000160110 I Ivanovskiy OSB 8639 Ivanovo Correspondent Account 30101810000000000608 BIK 042406608 Bidding documents must be submitted to: CJSC Consulting Company Nikons, the bidding organizer Office 38 8th Marta Str. 32 Ivanovo Region Russia Tel: (4932) 414-374 The Debtor can be reached at: OJSC Ivanovskiy Khladokombinat 4 Parizhskoy Kommuny Str. 62 Ivanovo Region Russia Tel: (4932) 385-912 KRYLOVSK-AGRO-PROM-KHIMIYA OJSC: Claims Deadline Set March 2 ------------------------------------------------------------ Creditors of OJSC Krylovsk-Agro-Prom-Khimiya (TIN 2338002234) have until March 2 to submit written proofs of claim to: A. Artemenko, Insolvency Manager Office 307 Kolkhoznaya Str. 3 350042 Krasnodar Region Russia The Arbitration Court of Krasnodar Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-43236/2005-27/523-B. The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: OJSC Krylovsk-Agro-Prom-Khimiya Tishenko Str. 4 Oktyabrskaya St. Krylovskiy Region 353380 Krasnodar Region Russia MILK LLC: Primorye Bankruptcy Hearing Slated for April 26 --------------------------------------------------------- The Arbitration Court of Primorye Region will convene at 1:00 p.m. on April 26 to hear the bankruptcy supervision procedure on LLC Milk. The case is docketed under Case No. A51-1359/2006 26-333 B. The Temporary Insolvency Manager is: G. Grachev Apartment 31 Makovskogo Str. 179 Vladivostok Primorye Region Russia The Debtor can be reached at: LLC Milk 9th January Str. 30 Lesozavodsk Primorye Region Russia NEW CERAMICS: Moscow Bankruptcy Hearing Slated for Feb. 27 ---------------------------------------------------------- The Arbitration Court of Moscow Region will convene on Feb. 27 to hear the bankruptcy supervision procedure on LLC New Ceramics. The case is docketed under Case No. A41-K2-23111/06. The Temporary Insolvency Manager is: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: LLC New Ceramics Oktyabrskiy Pr. 327 Lyubertsy 140014 Moscow Region Russia NOMOS BANK: Fitch Affirms IDR at B+ with Stable Outlook ------------------------------------------------------- Fitch Ratings has affirmed Russia's Nomos Bank's ratings at Issuer Default 'B+', Short-term 'B', Individual 'D', Support '5' and National Long-term 'A-'. The Outlooks for the Issuer Default and National Long-term ratings are Stable. Also Fitch has assigned expected ratings of Recovery 'RR4' and Long-term 'B+' to Nomos' upcoming eurobond. The ratings reflect the credit risk associated with continuing rapid asset growth, high concentration risk on both sides of the balance sheet and market risk stemming from the securities portfolio, as well as declining, albeit still sound, performance. However, they also take into account the bank's good asset quality, adequate capitalization and relatively diversified funding base. Capital levels are presently comfortable but expected to moderate in 2007 as growth continues. Profitability ratios have fallen during recent years, albeit from high levels, due to declining margins in the corporate sector and higher costs, but they remain healthy. Higher margin corporate products and a gradual expansion into retail banking should help to support performance, although the planned business and network expansion may also put further pressure on efficiency ratios. Upside to Nomos' ratings may arise from the successful expansion and diversification of its franchise, reflected in continued sound asset quality and performance as it expands into new customer segments. Downside pressure could result from a significant deterioration in capitalization or asset quality resulting from the bank's rapid growth. Nomos is one of the 20 largest Russian banks, with US$4 billion of total assets at Sept. 30, 2006. The franchise is currently focused primarily on serving corporations operating in the defense, energy and mining sectors, although a broadening of the corporate customer base and moderate retail lending expansion are also being pursued. The bank is the third largest bullion trader in Russia and has strong positions in fixed-income trading. Nomos is ultimately controlled by seven individuals, of whom four are owners of the financial and industrial group ICT. NOMOS BANK: Fitch Rates Nomos Capital's Upcoming LPN Issue at B+ ---------------------------------------------------------------- Fitch Ratings assigned Nomos Capital P.L.C.'s upcoming issue of limited recourse loan participation notes expected ratings of Recovery 'RR4' and Long-term 'B+'. The notes are to be used solely for financing a loan to Russia's Nomos Bank, which is rated Issuer Default 'B+' with Stable Outlook, Short-term 'B', Individual 'D', and Support '5'. The final ratings are contingent upon receipt of final documentation conforming materially to information already received. Fitch has also affirmed Nomos's ratings. Nomos Capital P.L.C, incorporated under the laws of Ireland, will only pay noteholders' principal and interest received from Nomos under the loan agreement. It will charge certain rights and interests to BNY Corporate Trustee Services Ltd. for the benefit of the noteholders under a trust deed. Its claims under the loan agreement will rank at least equally with the claims of other unsecured and unsubordinated creditors of Nomos, save those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application. Under Russian law, the claims of retail depositors rank above those of other senior unsecured creditors. At end-Q306, retail deposits accounted for 21% of Nomos' total liabilities, according to the bank's IFRS accounts. The loan agreement contains covenants restricting mergers and disposals by Nomos, and specifies that transactions between the bank and its affiliates must be done on market terms. The loan agreement limits liens and stipulates that the aggregate amount of funding raised through securitizations is limited to 15% of Nomos's assets. According to the loan agreement, Nomos must maintain a minimum Basel I Tier one capital adequacy ratio of 10% and ensure that dividend payments by the bank and its subsidiaries do not exceed 50% of net income for the year. The loan agreement also contains a cross default clause, which is triggered by overdue indebtedness of US$20 million or more. Nomos is one of the 20 largest Russian banks, with US$4 billion of total assets as of Sept. 30, 2006. The franchise is currently focused primarily on serving corporates operating in the defense, energy and mining sectors, although a broadening of the corporate franchise and some growth in retail lending are also being pursued. The bank is the third largest bullion trader in Russia and has strong positions in fixed-income trading. Nomos is ultimately controlled by seven individuals, of whom four are owners of the financial and industrial group ICT. SEL-KHOZ-TEKHNIKA OJSC: Creditors Must File Claims by March 2 ------------------------------------------------------------- Creditors of OJSC Sel-Khoz-Tekhnika (TIN 2326000514) have until March 2 to submit written proofs of claim to: B. Popovskiy, Insolvency Manager Office 307 Kolkhoznaya Str. 3 350042 Krasnodar Region Russia The Arbitration Court of Krasnodar Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-6921/20006-38/135-B. The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: OJSC Sel-Khoz-Tekhnika Stepnaya Str., 11 Belaya Glina Beloglinskiy region 353040 Krasnodar Region Russia TIMASHEEVSKIY OJSC: Bankruptcy Hearing Slated for April 23 ---------------------------------------------------------- The Arbitration Court of Krasnodar Region will convene on April 23 to hear the bankruptcy supervision procedure on OJSC Breeding Factory Timasheevskiy (TIN 2353018038). The case is docketed under Case No. A-32-26424/2006-46/2552-B. The Temporary Insolvency Manager is: V. Rybachenko Armavirskaya Str. 45 Eysk 353680 Krasnodar Region Russia The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: OJSC Breeding Factory Timasheevskiy Parkovaya Str. 1 Industrialnyj Timashevsk 352747 Krasnodar Region Russia TOMSK-AIR OJSC: Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------- The Arbitration Court of Tomsk Region commenced bankruptcy supervision procedure on OJSC Tomsk-Air. The case is docketed under Case No. A67-9053/06. The Temporary Insolvency Manager is: N. Razumov Zheleznodorozhnaya Str. 3 634006 Tomsk Region Russia The Debtor can be reached at: OJSC Tomsk-Air Airport 634011 Tomsk Region Russia TRANS-SERVICE-1401 OJSC: Creditors Must File Claims by Jan. 30 -------------------------------------------------------------- Creditors of OJSC Trans-Service-1401 (TIN 4616003038) have until Jan. 30 to submit written proofs of claim to: A. Chuykov, Insolvency Manager Marata Str. 21a 305000 Kursk Region Russia The Arbitration Court of Kursk Region commenced bankruptcy proceedings against the company after finding it insolvent. The hearing in the Court will convene on March 14. The case is docketed under Case No. A35-5797/06 g. The Arbitration Court of Kursk Region is located at: K. Marksa Str. 25 305004 Kursk Region Russia The Debtor can be reached at: OJSC Trans-Service-1401 Lenina Str. 100 Oboyan' 306230 Kursk Region Russia YUKOS OIL: Initial Appraisal Values Assets at US$22 Billion ----------------------------------------------------------- Experts estimate the assets of bankrupt OAO Yukos Oil Co. to be worth more than US$22 billion, Nikolai Lashkevich, chief spokesman for Eduard Rebgun, Yukos's bankruptcy receiver. "According to the valuers' preliminary estimates, the total value of all Yukos assets may exceed US$22 billion," Reuters quoted Mr. Lashkevich as saying. Mr. Lashkevich said the consortium of five appraisers had valued 180 of 193 Yukos enterprises, Reuters relates. He said six of Yukos's domestic affiliates still need to submit necessary information for the appraisal, while four foreign affiliates refused to submit the required data. An unidentified source told Russian daily Vedomosti that the company's final market value could be slightly over US$20 billion, US$4 billion short of the total creditor claims against Yukos. The sale of Yukos's assets will begin following the completion of the valuation process in February. As soon as the valuation is completed, Mr. Rebgun would submit to the creditors' committee plans on the procedure, terms and timeframe for the asset sale, RIA Novosti reports. In a Troubled Company Reporter-Europe report on Oct. 26, 2006, Yevgeny Neiman, general director of Roseco, one of the five valuers in the consortium, said Yukos's assets may be sold at a discount after appraisers complete the valuation of the company's properties. "The discount on the liquidation price will depend on which asset we are valuing. The discount could be 10 percent or it could be 90 percent," he said. Likely Bidders Analysts believe Rosneft and Gazprom are the most likely bidders for the bankrupt assets of what was once Russia's largest oil producer. However, they do not discount the possibility of other bidders, which include Surgutneftegas as a potential bidder for Tomskneft. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. YUKOS OIL: Moscow Court Sets Feb. 14 Hearing for PwC Tax Lawsuit ---------------------------------------------------------------- (JazeL) The Moscow Arbitration Court will convene on Feb. 14 to hear the suit filed by the Federal Tax Service of Russia against the local branch of UK-based PricewaterhouseCoopers, the auditor of bankrupt Yukos Oil Company in 2002-2004, RIA Novosti reports. The tax regulator had accused PwC of covering up Yukos's alleged illegal financial schemes and compiling two different audits. On Dec. 18, the court accepted the case from the Federal Tax Service, which sought to invalidate a contract between Yukos and PwC's Russian office on auditing services. The tax regulator also demanded a US$145,000 repayment from PwC on the cost of the contract, RIA Novosti noted. According to RIA Novosti, the court granted FTS' request to change the litigation claims to charge US$480,000 from PwC, instead of the US$145,000 demand. "The tax service has evidence that the auditor's report to the [oil] company's management and the official report were mutually contradictory," the tax service told RIA Novosti. As previously reported, the tax officials said PwC confirmed that Yukos's financial operations in 2003-2004 were in full compliance with Russian legislation, even amidst tax violations discovered in 2002, to which Yukos has failed to remove in the subsequent two years. The auditing firm has denied the tax regulator's accusations asserting that the management of a company, not an auditor, was responsible for financial decisions. PwC argued that its report on Yukos contained an amendment highlighting the disclosed irregularities, which the firm also included in a written statement recommending that the company review its operations. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. ========= S P A I N ========= MILLS CORP: Farallon Offers to Purchase US$499 Million of Shares ---------------------------------------------------------------- Farallon Capital Management LLC submitted a term sheet to The Mills Corp.'s financial advisors, Goldman Sachs & Co. and J.P. Morgan Securities, for a proposed US$499 million acquisition of additional shares. Farallon said Mills solicited the offer. Under the Term Sheet, Farallon will purchase US$499 million of shares at a price of US$20.00 per share. The Term Sheet will terminate if Mills will not sign on or before Jan. 19, 2007. Farallon investors will receive a commitment fee equal to 4% of the total subscription amount upon execution of an agreement relating to the shares. The commitment to purchase shares will terminate if Mills will enter into a competing transaction. Under that scenario, Mills would be required to pay a break-up fee of US$15 million. Pursuant to the Term Sheet, Farallon would have the right to terminate all of its obligations, if (i) the conditions set forth in the Term Sheet are not met within 15 days from the date that Mills signs the Term Sheet, except to the extent such failure is due to Farallon's breach of its obligation to use good faith efforts to consummate the transactions under the Term Sheet, or (ii) Mills enters into or consummates a Competing Transaction from the date the Term Sheet is executed by Mills through and including Sept. 30, 2007. The proposed transaction is subject to Mills signing the Term Sheet and specified terms and conditions being met, including but not limited to: (a) Mills' board of directors being reduced to 11 members, with the composition of the remaining members to be reasonably acceptable to Farallon, (b) Mills agreeing to nominate a 2007 board slate reasonably acceptable to Farallon, which would include two directors that are acceptable to Farallon in their sole discretion, (c) all required approvals and consents being obtained, (d) the absence of any material adverse change since Jan. 1, 2005, that has not been disclosed to Farallon, (e) the termination of standstill arrangements entered into with Mills, (f) a waiver of the REIT limitations, if applicable, and (g) Mills' receipt of a fairness opinion with respect to the proposed transaction. A full-text copy of the company's Schedule 13D filing is available for free at http://ResearchArchives.com/t/s?1898 Headquartered in Chevy Chase, Maryland, The Mills Corporation (NYSE:MLS) -- http://www.themills.com/-- develops, owns, manages retail destinations including regional shopping malls, market dominant retail and entertainment centers, and international retail and leisure destinations. The Company owns 42 properties in the U.S., Canada and Europe, totaling 51 million square feet. In addition, The Mills has various projects in development, redevelopment or under construction around the world including Spain and the United Kingdom. * * * Bankruptcy Warning As reported in the Troubled Company Reporter-Europe on Jan. 15, The Mills Corp. issued a warning in a U.S. Securities and Exchange Commission filing saying that it could file for bankruptcy protection if it cannot sell all or part of the company amidst accounting errors and speculations of possible executive misconduct. As reported in the Troubled Company Reporter on March 24, 2006, The Mills Corp. disclosed that the SEC has commenced a formal investigation. The SEC initiated an informal inquiry in January after the Company reported the restatement of its prior period financials. Mills is restating its financial results from 2000 through 2004 and its unaudited quarterly results for 2005 to correct accounting errors related primarily to certain investments by a wholly owned taxable REIT subsidiary, Mills Enterprises, Inc., and changes in the accrual of the compensation expense related to its Long-Term Incentive Plan. MILLS CORP: Gazit-Globe Offers US$1.1B Revised Recap Plan --------------------------------------------------------- Gazit-Globe Ltd. chairman Chaim Katzman submitted a Revised Recapitalization Proposal to The Mills Corp. It said Mills solicited the offer. Israeli real estate firm Gazit-Globe proposes to recapitalize Mills with US$1.1 billion of new capital. Gazit-Globe will immediately contribute US$500 million through a private investment in public equity, or PIPE, transaction. Gazit-Globe will also contribute US$600 million through a rights offering in which all of Mills' stockholders would participate. Gazit-Globe agrees to fully "backstop" as a standby purchaser to ensure that Mills achieves the desired capital infusion. In exchange, Gazit-Globe will invest US$500 million in Mills' publicly traded common stock. The PIPE transaction would have a two-tier structure with the initial US$250 million of shares to be purchased at US$23.50 per share. The remaining US$250 million will be purchased at US$18.50 per share, resulting in an average price of US$21.00 per share for the entire US$500 million. Gazit-Globe's offer represents a premium of approximately 38% over the closing price of US$15.21 on Jan. 12, 2007. Gazit- Globe disregarded the traditional 30-, 60- and 90-day volume weighted averages trading price metrics due to the public financial disclosures of this past week. The proceeds of the PIPE transaction would be used to pay down the loan Mills received from Goldman Sachs & Co. In addition, pursuant to the Revised Recapitalization Proposal, Gazit-Globe would make available a commitment it has obtained from Royal Bank of Canada for an aggregate of US$675 million to (i) refinance the entire remaining balance of the Goldman Sachs loan (after application of the proceeds from the PIPE transaction) (US$575 million) and (ii) provide a working capital facility (US$100 million). Gazit-Globe also provided Goldman Sachs & Co. and J.P. Morgan Inc. with a draft Securities Purchase Agreement proposed to be used in connection with the proposed PIPE transaction. Gazit-Globe wants to be entitled to appoint a majority of the Mills Board. It wants to reduce the board's size to nine members, but subsequently agreed to revise this aspect of its proposal. Following Gazit-Globe's submission of the Revised Plan, JP Morgan requested that it provide additional background for its proposal that could be used by the Mills Board in its assessment of the various bids received. Gazit-Globe proposed to drop its request to be entitled to appoint a majority of Mills Board and proposed that it would be willing to accept a "one share one vote" structure. It would amend the Revised Recapitalization Proposal and reduce its proposed representation on the Mills Board from a majority to a number that approximates its stock ownership after the recapitalization, i.e., 4 out of 11 members, provided that Mills eliminated its staggered board structure in favor of the more stockholder-friendly structure with one-year terms for all board members. A full-text copy of the Revised Recapitalization Proposal is available for free at http://ResearchArchives.com/t/s?1895 Headquartered in Chevy Chase, Maryland, The Mills Corporation (NYSE:MLS) -- http://www.themills.com/-- develops, owns, manages retail destinations including regional shopping malls, market dominant retail and entertainment centers, and international retail and leisure destinations. The Company owns 42 properties in the U.S., Canada and Europe, totaling 51 million square feet. In addition, The Mills has various projects in development, redevelopment or under construction around the world including Spain and the United Kingdom. * * * Bankruptcy Warning As reported in the Troubled Company Reporter-Europe on Jan. 15, The Mills Corp. issued a warning in a U.S. Securities and Exchange Commission filing saying that it could file for bankruptcy protection if it cannot sell all or part of the company amidst accounting errors and speculations of possible executive misconduct. As reported in the Troubled Company Reporter on March 24, 2006, The Mills Corp. disclosed that the SEC has commenced a formal investigation. The SEC initiated an informal inquiry in January after the Company reported the restatement of its prior period financials. Mills is restating its financial results from 2000 through 2004 and its unaudited quarterly results for 2005 to correct accounting errors related primarily to certain investments by a wholly owned taxable REIT subsidiary, Mills Enterprises, Inc., and changes in the accrual of the compensation expense related to its Long-Term Incentive Plan. MILLS CORP: Inks US$1.35 Billion Agreement with Brookfield Asset ---------------------------------------------------------------- The Mills Corporation and Brookfield Asset Management Inc. has entered into a definitive agreement pursuant to which Brookfield will acquire The Mills for cash at a price of US$21 per share, representing a total transaction value of approximately US$1.35 billion for all of the outstanding common stock of The Mills and common units of The Mills Limited Partnership, and approximately US$7.5 billion including assumed debt and preferred stock. Brookfield is a global asset manager focused on property and other infrastructure assets with over US$50 billion of assets under management. Under the terms of the agreement, The Mills will merge into a newly formed subsidiary of Brookfield, and The Mills common stockholders will receive US$21 in cash for each share of Mills common stock. Common stockholders will also have the ability to elect instead to receive up to a maximum of 20% of the outstanding shares of a continuing public company managed by Brookfield that will hold the assets of The Mills. The stock alternative will be subject to proration if holders of more than 20% of The Mills shares elect to receive stock. If the holders of fewer than 10% of the shares elect this stock rollover, all common shares of The Mills will be exchanged for cash in the merger. In the merger, preferred stockholders of The Mills will receive preferred stock with substantially the same terms. Limited partners in The Mills Limited Partnership will be offered the same consideration as common stockholders of The Mills, and will have the opportunity to elect instead to roll over all or a portion of such units into limited partnership interests, subject to the terms and conditions of the merger agreement. Brookfield has also agreed to provide The Mills with debt financing until the completion of the merger by assuming The Mills' approximately US$1 billion Senior Term Loan from Goldman Sachs Mortgage Company and subsequently revising the terms of such loans and providing a US$500 million revolving line of credit on terms to be contained in a restated credit and guaranty agreement. Mark Ordan, chief executive officer and president of The Mills, said, "With this transaction, we have completed our strategic alternatives process by joining with a world class real estate owner and operator. "After a very competitive process, in which our Board considered numerous alternatives for the company, we believe we have achieved an outcome that is the best possible result for all involved. "We believe the transaction with Brookfield not only provides certain value to The Mills' stockholders, but also affords them the opportunity to participate in the upside potential created by this transaction. "This merger will provide the resources to upgrade our properties, reinforce our organization and continue to attract premium tenants to The Mills concept." Bruce Flatt, managing partner and chief executive officer of Brookfield, said, "We are pleased to be able to work with The Mills Corporation to move beyond the recent issues it has encountered. "We look forward to working with management of The Mills in getting back to business and focusing on service excellence to attract premium tenants to this high quality retail portfolio." The Mills Board of Directors unanimously approved the transaction, with those directors affiliated with Kan Am abstaining. The transaction is subject to approval by The Mills' stockholders at a special meeting of stockholders, as well as other customary closing conditions. The Mills and Brookfield expect to file a proxy statement and prospectus in connection with the special meeting of stockholders following the filing of The Mills' Annual Report on Form 10-K for the year ended Dec. 31, 2006. The merger is expected to close in the second half of 2007. J.P. Morgan Securities Inc. and Goldman, Sachs & Co. served as financial advisors and Wachtell, Lipton, Rosen & Katz and Hogan & Hartson LLP served as legal advisors to The Mills. Credit Suisse and Brookfield Financial Real Estate Group served as financial advisors and Sidley Austin LLP served as legal advisor to Brookfield. About Brookfield Asset Management Brookfield Asset Management Inc. (NYSE/TSX: BAM) -- http://www.brookfield.com/-- is focused on property, power, and infrastructure assets. The company has over US$50 billion of assets under management. Headquartered in Chevy Chase, Maryland, The Mills Corporation (NYSE:MLS) -- http://www.themills.com/-- develops, owns, manages retail destinations including regional shopping malls, market dominant retail and entertainment centers, and international retail and leisure destinations. The Company owns 42 properties in the U.S., Canada and Europe, totaling 51 million square feet. In addition, The Mills has various projects in development, redevelopment or under construction around the world including Spain and the United Kingdom. * * * Bankruptcy Warning As reported in the Troubled Company Reporter-Europe on Jan. 15, The Mills Corp. issued a warning in a U.S. Securities and Exchange Commission filing saying that it could file for bankruptcy protection if it cannot sell all or part of the company amidst accounting errors and speculations of possible executive misconduct. As reported in the Troubled Company Reporter on March 24, 2006, The Mills Corp. disclosed that the SEC has commenced a formal investigation. The SEC initiated an informal inquiry in January after the Company reported the restatement of its prior period financials. Mills is restating its financial results from 2000 through 2004 and its unaudited quarterly results for 2005 to correct accounting errors related primarily to certain investments by a wholly owned taxable REIT subsidiary, Mills Enterprises, Inc., and changes in the accrual of the compensation expense related to its Long-Term Incentive Plan. ============= U K R A I N E ============= GIONET LVS: Claims Submission Deadline Set February 3 ----------------------------------------------------- Creditors of LLC Gionet LVS (code EDRPOU 33520960) have until Feb. 3 to submit their proofs of claim to: Larisa Timofeeva, Liquidator Post Office Box 179 54017 Nikolaev Region Ukraine Tel: (512) 47-89-69 The Economic Court of Nikolaev Region commenced bankruptcy proceedings against the company on Dec. 20, 2006, after finding it insolvent. The case is under docketed Case No. 5/534/06. The Economic Court of Nikolaev Region is located at: Admiralskaya Str. 22 54009 Nikolaev Region Ukraine The Debtor can be reached at: LLC Gionet LVS 60 years of USSR Str. 27 Ochakov 57500 Nikolaev Region Ukraine PAPIRUS LLC: Creditors Must Submit Claims by February 3 ------------------------------------------------------- Creditors of LLC Papirus (code EDRPOU 32145149) have until Feb. 3 to submit their proofs of claim to: V. Lisnichenko, Temporary Insolvency Manager Kommunisticheskaya Str. 21/19 86420 Donetsk Region Ukraine The Economic Court of Donetsk Region commenced bankruptcy supervision procedure on the company. The case is under docketed Case No. 5/210-B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Papirus Kommunisticheskaya Str. 4 Donetsk Region Ukraine SOUTH-POLYMER SYNTHESIS: Claims Submission Deadline Set Feb. 3 -------------------------------------------------------------- Creditors of LLC South-Polymer Synthesis (code EDRPOU 33730155) have until Feb. 3 to submit their proofs of claim to: Larisa Timofeeva, Liquidator Post Office Box 179 54017 Nikolaev Region Ukraine Tel: (512) 47-89-69 The Economic Court of Nikolaev Region commenced bankruptcy proceedings against the company on Dec. 26, 2006, after finding it insolvent. The case is under docketed Case No. 5/565/06. The Economic Court of Nikolaev Region is located at: Admiralskaya Str. 22 54009 Nikolaev Region Ukraine The Debtor can be reached at: LLC South-Polymer Synthesis Geroev Stalingrada Str. 91 Nikolaev Region Ukraine TRE-KRUNER LLC: Claims Submission Deadline Set February 3 --------------------------------------------------------- Creditors of LLC Tre-Kruner (code EDRPOU 33853965) have until Feb. 3 to submit their proofs of claim to: Larisa Timofeeva, Liquidator Post Office Box 179 54017 Nikolaev Region Ukraine Tel: (512) 47-89-69 The Economic Court of Nikolaev Region commenced bankruptcy proceedings against the company on Dec. 26, 2006, after finding it insolvent. The case is under docketed Case No. 5/558/06. The Economic Court of Nikolaev Region is located at: Admiralskaya Str. 22 54009 Nikolaev Region Ukraine The Debtor can be reached at: LLC Tre-Kruner Morskaya Str. 15/2 Nikolaev Region Ukraine =========================== U N I T E D K I N G D O M =========================== ABBEY FLOORING: Names Jeremy Nicholas Bleazard as Administrator --------------------------------------------------------------- Jeremy Nicholas Bleazard of XL Business Solutions Ltd. was named administrator of Abbey Flooring Services Ltd. (Company Number 04383787) on Dec. 20. The administrator can be reached at: Jeremy Nicholas Bleazard XL Business Solutions Ltd. 1st Floor 24 Market Street Cleckheaton BD19 5AJ United Kingdom Fax: 01274 870606 Tel: 01274 870101 E-mail: enquiries@xlbs.co.uk jbleazard@xlbs.co.uk Abbey Flooring Services Ltd. can be reached at: Copsham House 53 Broad Street Chesham Buckinghamshire HP5 3EA United Kingdom Tel: 01494 772 344 Fax: 01494 791 312 ACQUIREMENT SOLUTIONS: Names Cooper Parry to Administer Assets -------------------------------------------------------------- Tyrone Shaun Courtman and Jeremy Philip William Meadows of Cooper Parry LLP were appointed joint administrators of Acquirement Solutions Ltd. (Company Number 04339304) on Dec. 22. Cooper Parry LLP -- http://www.cooperparry.com/-- are advisers to private business. Acquirement Solutions Ltd. can be reached at: 208 Anglesey Road Burton-on-Trent Staffordshire DE14 3NP United Kingdom Tel: 01283 543 525 Fax: 01283 543 959 AGOY LTD: Hires Liquidator from Fisher Partners ----------------------------------------------- Stephen M. Katz of Fisher Partners was appointed liquidator of Agoy Ltd. on Jan. 10 for the creditors' voluntary winding-up procedure. The company can be reached at: Agoy Ltd. 2a Wrentham Avenue Brent London NW103HA England Tel: 0845 345 7335 Fax: 020 8960 9169 ALLCARE HOME: Calls In Liquidator from Begbies Traynor ------------------------------------------------------ David R. Acland of Begbies Traynor was appointed liquidator of Allcare Home Care Agency Ltd. on Jan. 5 for the creditors' voluntary winding-up procedure. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The liquidator can be reached at: Begbies Traynor 1 Winckley Court Chapel Street Preston Lancashire PR1 8BU England AUTO DRIVE: Creditors Confirm Voluntary Liquidation --------------------------------------------------- Creditors of Auto Drive Management Ltd. confirmed on Jan. 9 the company's resolutions for voluntary liquidation and the appointment of John Russell and Andrew Philip Wood of The P&A Partnership as liquidators. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- acts for all clearing banks and a growing number of factors and asset lenders. Its clients include multinational PLCs, SMEs, financial institutions, accountants, solicitors and business advisors. Auto Drive Management Ltd. can be reached at: Bramall Lane John St. Sheffield South Yorkshire S2 4SU England Tel: 0870 241 7183 Fax: 01246 456547 AWARD INTERNATIONAL: Names William Antony Batty Liquidator ---------------------------------------------------------- William Antony Batty of Antony Batty & Co. was appointed liquidator of Award International Ltd. (formerly Award International (TP) Ltd.) on Dec. 22, 2006, for the creditors' voluntary winding-up procedure. The liquidator can be reached at: Antony Batty & Co. 3 Field Court Gray's Inn London WC1R 5EF England BAA PLC: Names Terry Morgan as Group Divisional Director -------------------------------------------------------- BAA Plc appointed Terry Morgan, managing director of Stansted Airport, to join the BAA Executive Committee as Group Divisional Director with overall responsibility for Stansted and Gatwick airports and the Stansted Generation 2 project. Stewart Wingate, currently BAA's chief executive officer at Budapest Airport, will be joining Stansted as the new managing director. Mr. Wingate, a chartered engineer, has a first-class honors degree in engineering, a Postgraduate Diploma in Marketing and a Masters degree in Business Administration. He brings to Stansted considerable experience of the international aviation industry and of airport operations. Previously he was Customer Service Director at Glasgow Airport. Prior to joining BAA, Mr. Wingate had a background in global manufacturing having worked for 16 years at Black & Decker in Germany, the Czech Republic, as well as his native England. "I have spent a total of eight very happy years in charge at Stansted and have greatly enjoyed helping to lead this growing international business through some exciting and challenging times," Mr. Morgan said. "While I am naturally sorry to be leaving behind day-to-day responsibility for the airport I am delighted my new role will allow me to stay in close touch with Stansted and to offer my full support to Stewart and the airport team. "I've made many friends at Stansted, and in the wider community, and I'd like to thank everyone for their help and support over the years." "I'm very pleased to be joining Stansted at such an important time for the airport and to have the opportunity to work with colleagues and the local community to make the most of the huge potential that exists here," Mr. Wingate said. "Stansted has a very exciting future and I'm looking forward to leading the growth and development of this very successful international business, and to keeping it at the heart of the local community and a thriving regional economy." About BAA Plc Headquartered in London, United Kingdom, BAA plc -- http://www.baa.com/-- owns and operates seven airports in the United Kingdom, including Healthrow, the world's busiest international airport, and Budapest Airport, serving 700 destination by around 300 airlines. Its airports in the U.K. handled over 117 million international passenger during the 12 months up to October 2005. International passengers make up 81% of its total U.K. airport traffic. BAA had total assets of GBP15.2 billion and pre-tax profits of GBP757 million for the year ended March 31, 2006. * * * As reported in the TCR-Europe on June 9, 2006, Moody's Investors Service downgraded to Ba1 from Baa3 the issuer rating of BAA Plc as well as the ratings for: -- GBP425 million convertible bonds due August 2009; -- GBP424 million convertible bonds due April 2008; and -- GBP200 million 7.875% bonds due February 2007. BAA's short-term rating was also downgraded to Not Prime from Prime-3. All other long-term debt ratings remain at Baa2. All long-term ratings remain on review for further downgrade. BAA PLC: Scottish Unit Shuffles Senior Management ------------------------------------------------- BAA Plc Scotland disclosed of a number of senior management changes, with new managing directors for Aberdeen and Glasgow Airports, and a new group finance director. At Aberdeen, Kevin Brown is appointed managing director with immediate effect. Mr. Brown is currently customer services director at the airport, following a period during which he was responsible for engineering across BAA's Scottish airports. Mr. Brown succeeds Andy Flower, who has been appointed to another senior role in BAA, as managing director of London Gatwick. In addition, BAA has appointed a leading Scottish transport professional to its top Glasgow management role. Gordon Dewar, formerly of First Scotrail and more recently of Arriva, joins Glasgow Airport as managing director on Feb. 5. Mr. Dewar will succeed Alan Barr, who is appointed finance director of BAA Scotland, following a successful year-long spell as acting managing director at Glasgow. Mr. Barr in turn succeeds Douglas Dewar, BAA Scotland's long-serving finance director, who is appointed interim commercial director ahead of his planned retirement in June 2007. Both appointments take effect on Feb. 5. "I am pleased to be announcing this important series of appointments to my senior team and welcoming Gordon Dewar to BAA," Stephen Baxter, BAA Scotland Divisional Managing Director, said. "The challenges facing BAA Scotland are considerable, exciting and varied, ranging from our substantial capital investment program, which will transform our airports, to our sustained efforts to strengthen Scotland's influence on the world through direct international air services. "I am confident that we are building a strong team of talented leaders who can rise to our many challenges, take this business forward and deliver world-class airports to our customers and Scotland." About BAA Plc Headquartered in London, United Kingdom, BAA plc -- http://www.baa.com/-- owns and operates seven airports in the United Kingdom, including Healthrow, the world's busiest international airport, and Budapest Airport, serving 700 destination by around 300 airlines. Its airports in the U.K. handled over 117 million international passenger during the 12 months up to October 2005. International passengers make up 81% of its total U.K. airport traffic. BAA had total assets of GBP15.2 billion and pre-tax profits of GBP757 million for the year ended March 31, 2006. * * * As reported in the TCR-Europe on June 9, 2006, Moody's Investors Service downgraded to Ba1 from Baa3 the issuer rating of BAA Plc as well as the ratings for: -- GBP425 million convertible bonds due August 2009; -- GBP424 million convertible bonds due April 2008; and -- GBP200 million 7.875% bonds due February 2007. BAA's short-term rating was also downgraded to Not Prime from Prime-3. All other long-term debt ratings remain at Baa2. All long-term ratings remain on review for further downgrade. BRITISH AIRWAYS: Wants Acas to Mediate Dispute with T&G Union ------------------------------------------------------------- British Airways Plc is seeking outside mediation through the Advisory, Conciliation and Arbitration Service after the Transport & General Workers Union, representing 11,000 cabin crew employees of BA, revealed its plans to carry out a three- day strike next week over sick leave, pay and staffing concerns, Tracy Alloway writes for Bloomberg News. The airline called on Acas to discuss ways of solving the dispute with T&G, BA said in a statement. According to Lou Owen, a spokesman for Acas, both parties would have to sign up voluntarily to the mediator's conciliation service. Anthony Cane, a spokesman for BA, said, "The actual structure" of the arbitration service's involvement "will be discussed and agreed with all the parties." The union would welcome the mediator's help but "it should be possible for British Airways to resolve this themselves within 48 to 72 hours," Andrew Andrew Dodgshon, a spokesman for T&G, told Bloomberg. As previously reported in the TCR-Europe on Jan. 23, T&G will stage a three-day strike starting Jan. 29 after talks with BA management failed to reach an agreement. According to Andrew Murray, a spokesman for T&G, two more three- day strikes are expected to happen in February unless the dispute is resolved. The airline will incur losses between GBP10 million and GBP15 million a day if the 11,000 cabin crew members will push through with the three 72-hour strikes, The New Zealand Herald relates. BA was disappointed by the union's move as industrial action would cause "massive disruption" for its customers. The carrier is now allowing passengers who had booked flights between Jan. 29 and Feb. 16 to change the dates of their trips. BA spokesman Paul Marston revealed that union is seeking a unified pay scale that would cost the airline up to GBP50 million pounds a year. As previously disclosed, 96% of T&G union's cabin crew members, who are employed at BA, voted in favor of a strike action over the airline's proposed deal that would narrow a GBP2.1-billion pension deficit. Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. CONCURRENT REALISATIONS: Taps PwC as Joint Administrators --------------------------------------------------------- Ian Christopher Oakley Smith and Edward Klempka of PricewaterhouseCoopers LLP were appointed joint administrators of Concurrent Realisations Ltd. (Company Number 00962023) on Jan. 10. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. Concurrent Realisations Ltd. can be reached at: Voyager Place Shoppenhangers Road Maidenhead Berkshire SL6 2PJ United Kingdom Tel: 01628 513 900 Fax: 01753 216 877 CORUS GROUP: Confirms Issuance of Ordinary Shares & Bonds --------------------------------------------------------- In accordance with Rule 2.10 of the City Code on Takeovers and Mergers, Corus Group plc confirmed that, as at Jan. 22, it had the following relevant securities in issue (including any ordinary shares represented by American Depositary Shares but excluding any ordinary shares held in treasury): -- 946,070,318 ordinary shares of 50p each under ISIN code GB00B127GF29. -- 4.625% convertible subordinated bonds due 2007 amounting to NLG345,000,000 convertible into 19,338,687 ordinary shares of Corus Group plc. The ISIN code for these securities is NL0000183184. Each American Depositary Share represents two ordinary shares of the company. About Corus Group Corus Group plc, fka British Steel, was formed when the UK privatized its major steelworks in 1988. It then changed its name to Corus Group after acquiring most of Dutch rival Koninklijke Hoogovens. Corus makes coated and uncoated strip products, sections and plates, wire rod, engineering steels, and semi-finished carbon steel products. It also manufactures primary aluminum products. Customers include companies in the automotive, construction, engineering, and household-product manufacturing industries. Six years ago, the group suffered from the crisis in British manufacturing, which prompted it to shake up management, close plants, cut jobs, and sell assets to lower debt. Its debt was thought to stand at GBP1.6 billion in 2002. After posting a net loss of GBP458 million in 2003, it embarked on a restructuring program, signed a new EUR1.2 billion banking facility, and issued GBP307 million worth of shares. It returned to operating profit in the first quarter of 2004. The recent recovery of steel prices and the strength of the euro are expected to help it achieve relatively strong earnings. * * * As reported in the TCR-Europe on Nov. 22, 2006, Standard & Poor's Ratings Services kept its 'BB' long-term corporate rating on U.K.-based steelmaker Corus Group PLC on CreditWatch with developing implications, following the announcement by Brazil- based steel maker Companhia Siderurgica Nacional (BB/Watch Neg/ --) of a proposed takeover offer worth 475 pence per share. At the same time, the 'BB+' senior secured bank loan ratings and 'BB-' unsecured debt ratings on Corus remain on CreditWatch with developing implications. The 'B' short-term corporate credit rating remains on CreditWatch with positive implications. All ratings were placed on CreditWatch on Oct. 18 following the announcement of an initial bid for the company from India-based steel manufacturer Tata Steel Ltd. In a TCR-Europe report on Oct. 25, 2006, Moody's Investors Service placed all ratings of Corus Group plc under review with direction uncertain following the recommendation of the board of Corus Group in favor of the proposed acquisition of the entire capital of Corus Group by Tata Steel Limited. Ratings affected: Corus Group plc * Ba2 Corporate Family Rating; * Ba1 Rating on EUR800 million Secured Bank Facilities maturing July 2008; * B1 Rating on EUR800 million Unsecured Notes due 2011; and * B1 Rating on GBP200 million in Unsecured Notes due 2008. Moody's last rating action on Corus was the upgrade to Ba2/Ba1/B1 on May 8. As reported in the TCR-Europe on Oct. 24, 2006, Fitch Ratings changed the Rating Watch on Corus Group PLC's Issuer Default and senior unsecured BB- and Short-term B ratings to Negative from Positive. This follows the recommendation by the CS Board of an offer from India-based Tata Steel Ltd. valued at GBP4.3 billion. The RWN also applies to these debt instruments issued by CS: -- CS EUR800 million 7.5% senior notes; -- CS EUR307 million 3% convertible bonds; and -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds. Fitch will resolve the Rating Watch following publication of CS's 2006 results, further details on the level of synergies and operational benefits that could accrue under the transaction, and the closure of the deal. CRAIGHILL NURSERIES: Creditors Confirm Liquidator's Appointment --------------------------------------------------------------- Creditors of Craighill Nurseries Ltd. confirmed on Jan. 11 the appointment of Situl Devji Raithatha as liquidator of the company. The company can be reached at: Craighill Nurseries Ltd. Craighill Road Leicester Leicestershire LE2 3FB England Tel: 011 6270 7065 Fax: 0116 270 1370 CRESTGATE LTD: Claims Filing Period Ends February 23 ---------------------------------------------------- Creditors of Crestgate Ltd. (t/a Trend and Dapper) have until Feb. 23 to send their names and addresses with particulars of their debts or claims to: David Moore Liquidator Begbies Traynor No.1 Old Hall Street Liverpool L3 9HF England David Moore and Donald Bailey of Begbies Traynor were appointed joint liquidators of the company on Jan. 12. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. DARENTH DESIGNS: Nominates Liquidators from Abbott Fielding ----------------------------------------------------------- Nedim Ailyan and Andrew Tate of Abbot Fielding were nominated joint liquidators of Darenth Designs (1984) Ltd. on Jan. 8 for the creditors' voluntary winding-up proceeding. The company can be reached at: Darenth Designs (1984) Ltd. Darenth Hill Trading Est Darenth Road South Dartford Kent DA2 7QT England Tel: 01322 291 383 Fax: 01322 291 383 DRAC LTD: Joint Liquidators Take Over Operations ------------------------------------------------ Carl Derek Faulds and James Richard Tickell of Portland Business & Financial Solutions Ltd. were appointed joint liquidators of Drac Ltd. on Jan. 9 for the creditors' voluntary winding-up procedure. The company can be reached at: Drac Ltd. 172a Anns hill road Gosport Hampshire PO123RE England Tel: 023 9251 0222 DURA AUTOMOTIVE: RSM Updates Ontario Court on Chapter 11 Cases -------------------------------------------------------------- RSM Richter Inc., as Dura Automotive Systems Inc. and its debtor-affiliates' information officer, delivered its first report with the Ontario Superior Court of Justice (Commercial List) in Canada to: (a) provide with background information concerning the Debtors, including information with respect to their Canadian operations; (b) provide updates with respect to developments in the Debtors' restructuring proceedings since Nov. 1, 2006; (c) summarize and seek approval of its activities since Nov. 1, 2006; and (d) recommend that the Ontario Court approve the Debtors' request for an extension of its stay of proceedings to March 15, 2007. A full-text copy of RSM Richter's First Report is available for free at http://ResearchArchives.com/t/s?18a7 RSM Richter reported these material developments with respect to the Debtors' Canadian operations: (1) the Canadian facilities at Bracebridge, Stratford and Brantford, comprising the Debtors' Canadian operations, have terminated a number of employees: A. Hourly Unionized Employees No. of Hourly No. of Hourly Employees Employees as Facilities Terminated of 11/01/06 ---------- ------------- ------------- Bracebridge 57 220 Stratford 23 238 Brantford 34 90 B. Salaried Employees No. of Salaried No. of Salaried Employees Employees as Facilities Terminated of 11/01/06 ---------- ------------- ------------- Bracebridge 8 72 Stratford -- 42 Brantford -- 23 (2) the Canadian facilities have continued to operate in the normal course. To the extent requested, RSM Richter has been assisting the Canadian Operations with common "day-one" issues that the facilities faced when they entered formal insolvency proceedings. RSM Richter attended a meeting on Dec. 4, 2006, with the Debtors and the International Association of Machinists and Aerospace Workers to inform IAMAW an opportunity to detail its concerns with respect to various employee issues. IAMAW, Local Lodge No. 1927, represents the hourly workforce at the Stratford Facility. Local 61 of the Canadian Automotive Workers' Union represents the hourly workforce at the Bracebridge Facility while CAW's Local 397 represents the Brantford Facility's hourly workforce. Moreover, RSM Richter: * reviewed and commented on certain of the Debtors' draft application materials; * posted copies of various Court materials, including the Ontario Court's Initial Order dated Nov. 1, 2006, on its Web site; * placed a notice regarding the Debtors' Canadian filings in The Globe and Mail (National Edition) around Nov. 6, 2006; * spoke routinely with each Canadian facility in order to determine if any critical issues are affecting operations; * convened periodic conference calls with each of the facilities; * worked intensively with the Bracebridge Facility to assist it to obtain a continued supply of goods and services; * responded to calls from creditors or suppliers concerning the Debtors' proceedings; * attended at conference calls with the Canadian Debtors and their legal counsel, Davies Ward Phillips and Vineberg LLP, to discuss the operational issues and other developments; and * corresponded with Davies Ward to stay apprised of the developments in the Debtors' Chapter 11 proceedings. Stay Extended to March 15 At the Debtors' request, Justice Lederman extends to March 15, 2007, the expiration of the stay enjoining and restraining creditors and parties-in-interest from initiating or continuing actions in any court or tribunal in Canada against the Debtors or that affect the their ability to carry on their business. In support of the Debtors' request, RSM Richter informed the Ontario Court that the Debtors have been diligently pursuing restructuring initiatives and have been acting in good faith. The Court approves the activities and conduct of RSM Richter as set forth in the First Report. 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. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Ontario Court Recognizes Final DIP Order --------------------------------------------------------- The Honorable Justice Lederman of the Ontario Superior Court of Justice (Commercial List) in Canada rules that the Final DIP Order dated Nov. 21, 2006, of the U.S. Bankruptcy Court for the District of Delaware is given full effect in all provinces and territories of Canada. Justice Lederman previously granted the directors and officers of Dura Automotive Systems Inc.'s Canadian affiliates a charge on the Debtors' property not exceeding US$2,500,000 in the aggregate, as security for the their indemnification obligations to their directors and officers. Justice Lederman declared that the Directors' Charge rank subordinate and junior in priority to the claims, liens, charges and security interests arising in connection with the first lien revolver. 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. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). FORD MOTOR: Loses US$1 Bln Per Year on Counterfeit Auto Parts ------------------------------------------------------------- Ford Motor Co. claims that it loses about US$1 billion annually from counterfeit auto parts, according to a study by the U.S. Chamber of Commerce. "The growing problem of counterfeiting and piracy threatens businesses and consumers in nearly every region of the world," according to the study, which will be released this week. The study also looked at counterfeiting problems for office equipment company Xerox Corp., pharmaceutical company Merck & Co. Inc., athletic shoe maker New Balance, and brake and friction material supplier Bendix Commercial Vehicle Systems LLC, Reuters says. About Ford Motor Co. 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-Europe on Dec. 13, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. after the company increased the size of its proposed senior secured credit facilities to between US$17.5 billion and US$18.5 billion, up from US$15 billion. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of both the secured facilities and the senior unsecured convertible notes being offered. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3 billion of senior convertible notes due 2036. FORD MOTOR: Mark Fields to Give Up Use of Company Plane ------------------------------------------------------- Mark Fields, the head of North American operations at Ford Motor Co., told the United Press Institute that he would give up his free use of a company plane to fly home to south Florida from Detroit on weekends. According to UPI, Mr. Fields had been widely criticized for using Ford Motor's jet when the firm is trying to make up for a projected US$4.5 billion loss in its North American operations last year, out of the total US$7 billion loss. UPI notes that the Detroit-Florida flights cost Ford Motor US$214,479 in the fourth quarter of 2005, the only period Ford Motor has made public. The full cost for last year is likely to be disclosed of later this year. Mr. Fields was put in charge of the North American operations, Ford Motor's largest business sector in October 2005. His compensation that year was US$3.2 million, including a US$1 million bonus to take the job, UPI states. Bryce G. Hoffman of The Detroit News writes that part of Mr. Fields' compensation contract when he was promoted to head Ford's Americas group in 2005, was the use of the Ford corporate jet for personal travel. Mr. Hoffman relates that Ford spokesman Tom Hoyt confirmed Mr. Field's decision. Mr. Fields was worried that the controversy was distracting Ford's efforts to turnaround its North American automobile operations. "He doesn't want this or any other issue to distract the team," Mr. Hoyt said, adding that decision was Fields' alone. "This was Mark's decision. The company supported his commitment to his family." Mr. Fields will continue his weekly commute from south Florida, where his family lives, using a commercial carrier, Mr. Hoffman reports. During his career at Ford, Mr. Fields and his family have relocated several times. He felt the deal would allow him to give Ford his undivided attention during the week while avoiding another disruption for his wife and children, Mr. Hoffman says. Mr. Fields was credited for turning around Ford's European and Premier Automotive Group as head for 17 months, the Associated Press relates. 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-Europe on Dec. 13, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. after the company increased the size of its proposed senior secured credit facilities to between US$17.5 billion and US$18.5 billion, up from US$15 billion. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of both the secured facilities and the senior unsecured convertible notes being offered. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3 billion of senior convertible notes due 2036. G T RANBY: Names Liquidators to Wind Up Business ------------------------------------------------ W. John Kelly and Timothy S. Cockcroft were appointed joint liquidators of G T Ranby (Nottingham) Ltd. on Jan. 4 for the creditors' voluntary winding-up procedure. W. John Kelly can be reached at: Begbies Traynor 4th Floor Newater House 11 Newhall Street Birmingham B3 3NY England Timothy S. Cockcroft can be reached at: Vale Cottage Watson's Lane Harby Leicestershire LE14 4DD England GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally ----------------------------------------------------------- General Motors Corp. sold 9.09 million cars and trucks around the world in 2006, according to preliminary sales figures released. It marked the third time (2006, 2005, and 1978) the world's largest automaker has sold more than 9 million vehicles in a calendar year. The company's 2006 global sales were down less than 1% from the 9.17 million vehicles sold in 2005, reflecting a number of factors, including planned cuts of 75,000 vehicles in daily rental fleet sales in the United States and offsetting growth in other global markets. "GM had some notable sales successes as we continued to expand in key growth markets around the world in 2006," John Middlebrook, GM vice president, Global Sales, Service and Marketing Operations said. "In 2006, we saw 18% growth in the Asia/Pacific region, and 17% growth in the Latin America, Africa, and Middle East region. We're also seeing improving results in Europe where we sold more than 2 million vehicles for the first time." The expansion of GM's four global brands -- Chevrolet, HUMMER, Saab, and Cadillac -- is showing concrete signs of success. Global sales of GM's value brand, Chevrolet, were 4.3 million vehicles compared with 2005 sales of 4.37 million. Chevrolet showed growth in all three regions outside North America, with the strongest performance in the Latin America, Africa and the Middle East region, with an additional 19% (144,000 vehicles) delivered over the 2005 level. Chevrolet also performed well in the Asia/Pacific region, which also was up 19%. There was a 15% increase in Chevrolet sales in Europe, compared with 2005. The Chevrolet Aveo helped Chevrolet field a strong competitor in the very competitive global small car market. GM also retains its strong truck portfolio, evidenced by HUMMER sales that grew nearly 34% globally in 2006, with 82,000 vehicles delivered, compared with 61,000 in 2005. This performance was paced by the continued strength of the midsize H3. While much of this growth was in the United States (up 26%), HUMMER also saw significant expansion in Mexico and Canada. Saab's 2006 global sales set a record at more than 133,000 vehicles. Saab had its highest sales volume ever in Europe, exceeding 90,000 vehicles and record sales in Spain, Belgium, and Canada. Cadillac posted a sales increase outside of North America last year, thanks to 22% sales growth in Europe. Global sales highlights include: * at 4.97 million vehicles, 2006 sales outside of the United States accounted for about 55% of GM's total global sales, growing at close to 7% compared with 2005, outpacing the industry average growth rate of 6%. The industry has seen a 10 million vehicle increase in the global automotive market in the past five years, and the market now tops 67 million. * in the Asia/Pacific region, GM sales of 1.26 million vehicles topped 1 million vehicles for the second consecutive year, and GM China saw more than 32% sales growth, compared with 2005, outpacing the country's industry growth rate of 26%. GM was the top-selling automaker in China in 2006, with 877,000 vehicles sold. For the first time, GM sold more Buicks in China (304,000) than in the United States (241,000). * in the Latin America, Africa and Middle East region, GM sales reached an all-time record 1.03 million vehicles, exceeding 1 million vehicles for the first time, up 17% in volume compared with 2005. Truck sales were up 21% and car sales were up 16%. GM saw volume increases in 10 of 11 major Latin America, Africa, and Middle East markets in 2006. GM do Brazil set an all-time domestic sales record with 410,000 vehicles delivered. * in Europe, GM sales -- for the first time -- exceeded 2 million vehicles, up about 1%. Growth in Eastern Europe, up 59%, led the increase. Cadillac, Corvette, HUMMER, Saab, and Chevrolet set European sales records for their brands. Chevrolet achieved record sales of more than 340,000 vehicles, up 15%. Saab sold more than 90,000 vehicles, beating its previous European sales record of 82,000 sold in 2005. Several of GM's regional brands also experienced notable growth in 2006. Opel and Vauxhall sold 1.6 million vehicles, growing share in 14 European markets. The brands achieved segment leadership with Meriva and Zafira -- in the monocab segment -- and second position with Astra in the popular compact segment. Saturn sales in the United States and Canada were up 5% compared with 2005, largely on the popularity of the new 2007 Aura, Sky, and Vue Green Line Hybrid. Saturn expects stronger sales this year as it continues the launch of the Outlook crossover and welcomes the Ion small-car replacement, Astra. GM Holden sold 147,000 vehicles in 2006 and the brand strengthened its second-place position in Australia, as the Commodore remained that country's best-selling car for the 11th consecutive year. As GM executes the North America turnaround plan, much media attention has focused on the global sales horse races between GM and its competitors. "Being the largest car company in the world can't be a focus, it has to be a by-product of giving people in each market the vehicles they really want. GM enjoys that position today," Mr. Middlebrook said. "GM employees remain focused on delivering cars and trucks that lead in design, quality and technology. We believe our newest products reflect that commitment. But no one should question our continued resolve to compete head-to-head with every automaker." About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader since 1931. Founded in 1908, GM employs about 284,000 people around the world. It has manufacturing operations in 33 countries and its vehicles are sold in 200 countries. GM sells cars and trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * As reported in the Troubled Company Reporter-Europe on Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed March 29, 2006. S&P said the outlook is negative. As reported in the TCR-Europe on Nov. 16, 2006, Standard & Poor's Ratings Services assigned its 'B+' bank loan rating to General Motors Corp.'s proposed US$1.5 billion senior term loan facility, expiring 2013, with a recovery rating of '1'. The 'B+' rating was placed on Creditwatch with negative implications, consistent with the other issue ratings of GM, excluding recovery ratings. At the same time, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion secured term loan of General Motors Corp. The term loan will be secured by a first priority perfected security interest in all of the U.S. machinery and equipment, and special tools of GM and Saturn Corp. GLOBAL HERBAL: Appoints Peter Bridger to Liquidate Assets --------------------------------------------------------- Peter Bridger of Bridgers was appointed liquidator of Global Herbal Products Ltd. on Nov. 16, 2006, for the creditors' voluntary winding-up proceeding. The company can be reached at: Global Herbal Products Ltd. Curzon Street Calne Wiltshire SN110DD England Tel: 070 0078 5854 GRANGE DIRECT: Claims Filing Period Ends February 28 ---------------------------------------------------- Creditors of Grange Direct Ltd. have until Feb. 28 to send in their full forenames and surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any) to: Martin C. Armstrong Liquidator Turpin Barker Armstrong Allen House 1 Westmead Road Sutton Surrey SM1 4LA England The company can be reached at: Grange Direct Ltd. Unit 16 The Pines Trading Est Broad Street Guildford Surrey GU3 3BH England Tel: 014 8353 8468 Fax: 01483 303533 HONEYCOMBE LEISURE: In Talks with Bankers Over GBP33-Mln Loan ------------------------------------------------------------- Pub operator Honeycombe Leisure plc revealed that discussions with bankers over a further extension of its GBP33 million loan facility as well as takeover talks with an unnamed third-party buyer are ongoing, Nic Paton writes for CatererSearch. According to Tenon Audit Ltd., the group's auditors, the negotiations indicated "the existence of a material uncertainty which may cast significant doubt about the group's ability to continue as a going concern." Honeycombe's hight street venues suffered from lack of investment while its food-led pubs faced competitive conditions as customers visited rival pubs showing the World Cup. Total sales of the group were down 16% to GBP18.8 million, however, sales over the two-week Christmas period were up 3.2%, The Publican relates. Honeycombe chairman Sandy Anderson told CatererSearch that the company's position has deteriorated over the past two years to three years and has gone from usefully profitable to marginally profitable. The pub operator is also concerned about the looming smoking ban. Headquartered in Preston, England, Honeycombe Leisure plc -- http://www.honeycombe.co.uk/-- operates a growing estate of over 95 individually managed pubs and hotels throughout the North of England. INTELSAT LTD: Bermuda Unit Issues US$600 Million Senior Notes ------------------------------------------------------------- Intelsat Bermuda Ltd. issued US$600 million in aggregate principal amount of Floating Rate Senior Notes due 2015. The Refinancing Notes bear interest at LIBOR plus 350 basis points. The net proceeds from the Refinancing Notes, together with cash on hand, were used to refinance the company's outstanding US$600 million senior unsecured credit facility. The Indenture contains covenants, which include, among other things: -- a limitation on Intelsat Bermuda and some of its subsidiaries' ability to incur or guarantee additional debt or issue disqualified or preferred stock; -- a limitation on Intelsat Bermuda's and some of its subsidiaries' ability to pay dividends, make other equity distributions or repurchase or redeem capital stock; -- a limitation on Intelsat Bermuda's and some of its subsidiaries' ability to make certain investments; -- a limitation on Intelsat Bermuda's and some of its subsidiaries' ability to enter into transactions with affiliates; -- a limitation on merger, consolidation, amalgamation and sale of assets applicable to Intelsat Bermuda and some of its subsidiaries; and -- a limitation on Intelsat Bermuda's and some of its subsidiaries' ability to incur liens on any of Intelsat Bermuda's assets securing other indebtedness. The Indenture also contains events of default with respect to: -- default in payments of interest after a 30-day grace period or a default in the payment of principal when due; -- subject to a certain exception, default in the performance of any covenant in the Indenture that continues for more than 60 days after notice of default has been provided to Intelsat Bermuda; -- failure to make any payment when due, including applicable grace periods, under any indebtedness for money borrowed by Intelsat, Ltd., Intelsat Bermuda or a significant subsidiary thereof having a principal amount in excess of US$75 million; -- the acceleration of the maturity of any indebtedness for money borrowed by Intelsat, Ltd., Intelsat Bermuda or a significant subsidiary thereof having a principal amount in excess of US$75 million; -- failure by Intelsat, Ltd., Intelsat Bermuda or a significant subsidiary to pay final judgments aggregating in excess of US$75 million, which judgments are not discharged, waived or stayed for 60 days; and -- certain events of bankruptcy, insolvency or reorganization of Intelsat, Ltd., Intelsat Bermuda or a significant subsidiary. The Refinancing Notes are redeemable on the dates, at the redemption prices and in the manner specified in the Indenture. Intelsat Bermuda agreed pursuant to a registration rights agreement to make an offer to exchange the Refinancing Notes for registered, publicly tradable notes that have substantially identical terms to the Refinancing Notes. A full-text copy of the Company's Indenture is available for free at: http://ResearchArchives.com/t/s?18c4 A full-text copy of the Company's Registration Rights Agreement is available for free at: http://ResearchArchives.com/t/s?18c5 Intelsat, Ltd. - http://www.intelsat.com/-- offers telephony, corporate network, video and Internet solutions around the globe via capacity on 25 geosynchronous satellites in prime orbital locations. Customers in around 200 countries rely on Intelsat's global satellite, teleport and fiber network for high-quality connections, global reach and reliability. * * * Moody's Investors Service has assigned a B2 rating to Intelsat Ltd.'s proposed US$1 billion of Senior Unsecured Term Loan and a Caa1 rating to Intelsat Bermuda's proposed US$600 million Senior Unsecured Notes. On Oct. 17, 2006, Fitch Ratings assigned a 'CCC+' rating and 'RR6' Recovery Rating to the US$600 million senior unsecured credit facility of Intelsat Bermuda, Ltd., which is a subsidiary of Intelsat, Ltd. LADBROKES PLC: Acquires Nordic Gaming Partner Sponsio Ltd. ---------------------------------------------------------- Ladbrokes Plc has acquired Sponsio Ltd., its online betting and gaming partner in Sweden, Norway, Denmark and Finland. The acquisition is aimed at strengthening Ladbrokes' position in the Nordic region, where per capita spend on gambling is among the highest levels in Europe. Ladbrokes will pay an initial consideration of GBP36 million to acquire the company, with an additional GBP4 million due if future growth targets are achieved in the region. The acquisition will be earnings enhancing in the first year of ownership. Ladbrokes signed a partnership agreement with Sponsio Ltd. in 2001 to expand the Ladbrokes business in the Nordic region. Today the Nordic countries together represent the biggest earning region for Ladbrokes eGaming outside of the U.K. Following the acquisition, Douglas Roos, current Managing Director of Sponsio Ltd. will head up Ladbrokes' Scandinavian division. Ladbrokes aims to build on the historic success of the partnership with the Sponsio team and expand the range of localized betting and gaming opportunities available to customers across the region. "Working with Sponsio has enabled Ladbrokes to become one of the leading online betting and gaming companies in the Nordic region. Having benefited from their local expertise, we are now consolidating our Nordic operations and will continue to drive successful online growth throughout Scandinavia," John O'Reilly, Managing Director of Ladbrokes Remote Betting and Gaming commented. "We are proud of both the success that we have achieved and the brand recognition that Ladbrokes now commands in the Nordic region. We feel that this deal will help Ladbrokes increase its market share and serve its Nordic customers even better," Bertil Knutsson of Sponsio Ltd. commented. About Ladbrokes Headquartered in Watford, United Kingdom, Ladbrokes plc -- http://www.ladbrokesplc.com/-- engages in fixed odds betting. The company is comprised of Ladbrokes, the biggest retail bookmaker in the U.K. and Ireland, Ladbrokes.com, a world- leading provider of interactive betting and gaming services, Vernons, the leading football pools operator and Ladbrokes Casinos, which opened its first casino at the Hilton London Paddington in July 2006. * * * As reported in the TCR-Europe on Oct. 26, Standard & Poor's Ratings Services affirmed its 'BB' ratings on the senior unsecured debt of the U.K.-based gaming operator Ladbrokes PLC and its guaranteed subsidiary Ladbrokes Group Finance PLC, and removed the ratings from CreditWatch with negative implications. Moody's Investors Service downgraded in February the senior unsecured long-term ratings of Hilton Group Plc (nka Ladbrokes Plc) and its guaranteed subsidiaries to Ba2 from Baa3; the outlook is stable. ONE PLUS: Enters Liquidation After Rejection of Rescue Package -------------------------------------------------------------- One Plus, one of Scotland's biggest child care providers, has gone into liquidation after Scottish Executive ministers turned down a GBP2 million rescue package, BBC News reports. According to a spokesman for the Scottish Executive, the refinancing "just did not stand up." He added that the ministers wanted to know how financial difficulties had been allowed to develop. A spokeswoman for One Plus revealed that the board has been advised by accountants and lawyers that they have no option but to place the company into liquidation as attempts to keep the business running failed, BBC relates. The Glasgow City Council, one of One Plus's biggest customers, is coordinating with other organizations in providing assistance to families and children affected by any potential care disruption. The city council has already extended GBP700,000 of financial support, BBC discloses. More than 1,000 families rely on the services of One Plus annually. The organization costs about GBP11 million a year to operate with more than half the money coming from public funds. News of the liquidation generated a "great amount of anger and disappointment from the workers," Dan Sharpe, regional industrial organizer for the TGW union, was quoted by BBC as saying. About One Plus One Plus -- http://www.oneplus.org/-- provides new opportunities to lone parents and other families, creating training, employment and services in communities throughout Scotland. One Plus Childcare is one of Scotland's leading voluntary sector providers of high-quality childcare services. It specializes in providing affordable, accessible childcare and in training childcare staff to meet the professional standards set by the Scottish Executive. One Plus delivers school age childcare in over thirty out of school care centers and pre-five provision in eight childcare centers. REFCO INC: Bankr. Court Denies Michael McNeil's Stay Request ------------------------------------------------------------ The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York denied the request of Michael A. McNeil to grant a stay on the Dec. 15, 2006, Court order confirming the Modified Chapter 11 Plan filed by Refco Inc. and its debtor-affiliates, so that the Debtors' assets would not be distributed until the Jan. 9, 2007 hearing. Judge Drain said the request is not appropriate under given circumstances. Mr. McNeil, a commodity futures customer of Refco F/X Associates LLC, states that if Judge Drain denies his request, he will be completing the process of his appeal from the Plan Confirmation Order to the District Court, to have any of his requests considered by the appellate court. Plan Administrators Supports Denying Stay Motion Priort to the Court's order, RJM, LLC, as Plan Administrator, and Marc S. Kirschner, Chapter 11 Trustee of Refco Capital Markets, Ltd., and acting as the RCM Plan Administrator under the Modified Plan, ask the Court to deny the Stay Motion because Mr. McNeil has failed to: (a) show that the extraordinary remedy of substantive consolidation would be appropriate in the Debtors' cases; (b) demonstrate that FXA should be considered a commodity broker, and that the Court erred as a matter of fact when it found that the Debtors' case presents "unusual circumstances" sufficient to permit the Debtors, including a Debtor preliminarily adjudged to be broker, to be in Chapter 11; or (c) prove an entitlement to a constructive trust that would prefer him over similarly situated creditors. Timothy B. DeSieno, Esq., at Bingham McCutchen LLP, in New York, tells Judge Drain that Mr. McNeil should not be permitted to jeopardize the myriad debtor-creditor, inter-debtor and inter- creditor compromises, and releases as embodied in the Plan. Mr. DeSieno states that since the entry of the Confirmation Order, the Plan has been substantially consummated. "This renders Mr. McNeil's appeal moot, further reducing the chances that Mr. McNeil can prevail on appeal," Mr. DeSieno states. In addition, Mr. DeSieno argues that Mr. McNeil has failed to show any risk of irreparable injury to himself if the requested stay is not granted. Mr. DeSieno notes that Mr. McNeil is a creditor with a US$68,000 claim against FXA and is currently entitled to all of the benefits afforded under the Plan to others similarly situated. Mr. DeSieno further contends that the risks to the settlements embodied in the Plan would be greatly increased by an indefinite stay, and the remaining distributions to other FXA creditors and the other Refco estates would be delayed. Other creditors in the Debtors' Chapter 11 cases should not be the ones to bear those risks and delays, Mr. DeSieno maintains. Moreover, Mr. DeSieno avers that Mr. McNeil has failed to show that the public interest would favor granting a stay. Indeed, Mr. DeSieno points out, the interests of the bulk of creditors in the Debtors' case would be harmed, not served, by the requested stay. In the unlikely event that the Court is inclined to grant a stay, the Administrators insist that Mr. McNeil should be required to post a bond to protect the thousands of other creditors against the harm that will befall them if Mr. McNeil is unsuccessful in his appeal. The Administrators maintain that the creditors must await the resolution of Mr. McNeil's appellate litigation order to receive their Plan-specified distributions. About Refco Inc. Headquartered in New York City, Refco Inc. (OTC: RFXCQ) -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). (Refco Bankruptcy News, Issue No. 54; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries, along with Marc S. Kirschner, the Chapter 11 Trustee for the estate of Refco Capital Markets, Ltd., delivered a Chapter 11 plan of reorganization and accompanying Disclosure Statement to the Court. On Oct. 10, 2006, the Debtors filed an Amended Plan and Disclosure Statement and on Oct. 13, filed a Modified Amended Disclosure Statement. On Oct. 16, 2006, the Court gave its tentative approval on the Disclosure Statement and the Court Clerk entered an order on Oct. 20, 2006. On Dec. 15, 2006, the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates LLC, was confirmed by the Court. That Plan became effective on Dec. 26, 2006. REFCO INC: Court Directs Grant Thornton to Produce Documents ------------------------------------------------------------ The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York granted the request of Joshua R. Hochberg, the duly appointed examiner in Refco Inc. and its debtor-affiliates' Chapter 11 cases, to compel Grant Thornton LLP to produce certain documents under its custody. The Lead Plaintiff's objection is overruled. Judge Drain requires Grant Thornton to produce the documents on or before the date that is 20 days after service of subpoenas compelling the production as authorized by the Order. Absent further Court order, the documents designated as "Confidential" and produced in response to the subpoenas will or may be made available to, and may be reviewed by: (a) the Examiner and attorneys McKenna Long & Aldridge LLP, which has been retained by the Examiner to aid in the discharge of his duties; (b) consultants retained by the Examiner; (c) attorneys employed by Milbank, Tweed, Hadley & McCloy, LLP, counsel to the Official Committee of Unsecured Creditors; (d) consultants retained by the Committee, the Additional Official Committee of Unsecured Creditors or the Joint Subcommittee, including Houlihan Lokey Howard and Zukin, FTI Consulting Inc. and Alix Partners; (e) attorneys employed by Kasowitz, Benson, Torres & Friedman LLP, conflicts counsel to the Committee and counsel to the Additional Official Committee; (f) attorneys employed by Skadden, Arps, Slate, Meagher & Flom LLP, counsel to the Refco Debtors; (g) consultants employed by the Debtors, including Goldin Associates, LLC, and any of the consultants; (h) Marc S. Kirschner, the Chapter 11 Trustee of Refco Capital Markets, Ltd., and Bingham McCutchen LLP; (i) consultants retained by the RCM Trustee; (j) the United States Attorney's Office for the Southern District of New York; and (k) individuals who have been noticed for depositions, scheduled for interviews, or subpoenaed for testimony at a trial or hearing. The production, review and handling of the Documents and materials produced in response to the Subpoenas will be governed by the terms of a protective order governing the production and use of confidential material. The Examiner believes that Grant Thornton is likely in possession of documents detailing: (i) the procedures and policies applicable to audits and reviews performed on the Debtors' financial statements from Aug. 1, 2002, to Nov. 30, 2005; and (ii) the activities of individual Grant Thornton members, professionals, and staff in connection with the audits or reviews during the period. Grant Thornton became the auditor for several of the Refco companies from August 2002 through the Petition Date. Grant Thornton also conducted quarterly reviews of the Debtors' financial statements. For a significant period of time prior to becoming Refco's auditor, Grant Thornton served as tax accountants to Phillip Bennett, Refco's chairman and chief executive officer. Based on his understanding of standard practice in the accounting industry, the Examiner believes it is likely that other members of Refco's senior management may have been tax clients of Grant Thornton or may have received tax-related information or services from the firm as well. The Examiner states that the documents and information could have a significant impact on his assessment of the potential existence of claims against those within the scope of his investigation. The Examiner reserves his right to seek depositions at a future date and to serve requests for supplemental and additional documents. A schedule of the Documents to be produced by Grant Thornton is available at no charge at http://researcharchives.com/t/s?1894 Brokerage Customer Class Plaintiffs Object The Court-appointed lead plaintiff in In re Refco Capital Markets, Ltd. Brokerage Customer Securities Litigation, 06-CIV 643 (GEL), pending in the U.S. District Court for the Southern District of New York opposes to the Motion to the extent that it does not enumerate the Lead Plaintiff's counsel -- Cole, Schotz, Meisel, Forman & Leonard, P.A., and Kirby McInerney and Squire, LLP -- as one of the several parties which will be permitted access to the Documents under certain restrictions. The Lead Plaintiff wants the proposed order expanded to provide its Lead Counsel the same access to the Documents as the other listed entities. About Refco Inc. Headquartered in New York City, Refco Inc. (OTC: RFXCQ) -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). (Refco Bankruptcy News, Issue No. 54; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries, along with Marc S. Kirschner, the Chapter 11 Trustee for the estate of Refco Capital Markets, Ltd., delivered a Chapter 11 plan of reorganization and accompanying Disclosure Statement to the Court. On Oct. 10, 2006, the Debtors filed an Amended Plan and Disclosure Statement and on Oct. 13, filed a Modified Amended Disclosure Statement. On Oct. 16, 2006, the Court gave its tentative approval on the Disclosure Statement and the Court Clerk entered an order on Oct. 20, 2006. On Dec. 15, 2006, the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates LLC, was confirmed by the Court. That Plan became effective on Dec. 26, 2006. SANMINA-SCI: S&P Retains Negative CreditWatch on BB- Ratings ------------------------------------------------------------ Standard & Poor's Ratings Services left its 'BB-' ratings on San Jose, California-based Sanmina-SCI Corp. on CreditWatch with negative implications because of delayed financial-statement filings. The company has filed required statements, but the ratings remain on CreditWatch, reflecting concerns about the company's deteriorating profitability levels, negative cash flow and weakening credit protection measures. For the quarter ended Sept. 30, 2006, EBITDA margin dropped to about 2.7% from a historic range of between 3.5% and 4.0%, after adjusting for one-time charges related to the termination of its original design manufacturer initiative and the stock-option investigation. "Weakened profitability is attributable to ongoing inefficiencies in the migration of production from closed European facilities to new, low-cost plants," said S&P credit analyst Lucy Patricola. The company continues to experience declining revenue and poor profitability in its personal computing business, down about 20% for the year and generating a 2% gross profit margin. Cash flow from operations continues negative on expanding inventory levels, resulting in borrowings under its line of credit and declining cash balances. Debt protection measures weakened, with debt to EBITDA at 5.2x for the trailing 12 months, up from 4.2x in the previous quarter. If the company continues to report execution issues or further weakness in the personal computing business, causing weak profitability, the rating could be lowered one notch. SCOTTS MIRACLE: S&P Holds Corporate Credit Rating at BB ------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings, including the 'BB' corporate credit rating, on lawn and garden care products supplier The Scotts Miracle-Gro Co. The ratings have been removed from CreditWatch with negative implications, where they were placed on Dec. 13, 2006 after the company's report that it will return US$750 million to its shareholders through a US$500 million special one-time cash dividend and fund share repurchases of up to US$250 million. The outlook is negative. As of Sept. 30, 2006, Scotts had about US$481.2 million in total debt outstanding, excluding operating lease obligations. Scotts will have about US$1.7 billion in debt outstanding subsequent to its leveraged recapitalization. The company plans to fund the share repurchase and special dividend through a proposed US$2.1 billion senior secured credit facility, consisting of a US$1.55 billion revolving credit facility due 2012 and a US$550 million term loan A due 2012. As part of the plan, the company intends to launch a tender offer to repurchase its existing US$200 million of 6.625% senior subordinated notes. Upon successful completion of the tender, Standard & Poor's would withdraw the 'B+' rating on the company's subordinated notes. Scotts expects to complete the recapitalization by March 31, 2007. "The 'BB' rating reflects the competitive markets in which the company participates, the seasonal nature of its revenue streams, an increasingly concentrated retail base, and a more aggressive financial policy," said Standard & Poor's credit analyst Chris Johnson. "Partially mitigating these factors are the company's leading market positions and well-recognized brand names." Pro forma for the transaction, the company will become highly leveraged. Pro forma lease adjusted average debt to EBITDA is expected to be about 4.2x compared with average leverage of about 2.0x at Sept. 30, 2006. Pro forma funds from operation to total average debt is expected to be about 15% compared with just below 30% prior to the planned transactions. Standard & Poor's expects the company to apply a portion of adjusted free operating cash flows to debt reduction, to bring average debt leverage to levels more appropriate for the rating category over the intermediate term. SEA CONTAINERS: Committee Taps Morris Nichols as Counsel -------------------------------------------------------- The Official Committee of Unsecured Creditors in Sea Containers, Ltd. and its debtor-affiliates bankruptcy case ask authority from the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to retain Morris, Nichols, Arsht & Tunnell LLP as its Delaware counsel, nunc pro tunc to Oct. 26, 2006. The Creditors Committee selected Morris Nichols because of the firm's extensive experience, knowledge and resources in the fields of, inter alia, debtors' and creditors' rights and business reorganizations under Chapter 11 of the Bankruptcy Code, Andrew B. Cohen, managing director of Dune Capital LLC, relates. Mr. Cohen adds that Morris Nichols is well qualified to represent the Creditors Committee because of its expertise, experience and knowledge practicing before the U.S. Bankruptcy Court for the District of Delaware, as well as its proximity to the Court, and its ability to respond quickly to emergency hearings and other emergency matters in the Court. Specifically, Morris Nichols will: (a) advise the Creditors Committee with respect to its rights, duties and powers in the Debtors' Chapter 11 cases; (b) assist and advise the Creditors Committee in its consultations with the Debtors relative to the administration of their cases; (c) assist the Creditors Committee in analyzing the claims of the Debtors' creditors in negotiating with them; (d) assist with the Creditors Committee's investigation of the acts, conduct, assets liabilities and financial condition of the Debtors and of the operation of their business; (e) assist the Creditors Committee in its analysis of, and negotiations with, the Debtors or their creditors concerning matters related to, among other things, the terms of a plan of reorganization for the Debtors; (f) assist and advise the Creditors Committee with respect to its communications with the general creditor body regarding significant matters in the Debtors' bankruptcy cases; (g) assist and counsel the Creditors Committee in respect to its organization, the conduct of its business and meetings, the dissemination of information to its constituency, and other matters as are reasonably deemed necessary to facilitate the administrative activities of the Committee; (h) attend the meetings of the Creditors Committee; (i) represent the Creditors Committee at all hearings and other proceedings; (j) review and analyze all applications, orders, statements of operations and schedules filed with the Court and advise the Creditors Committee as to their propriety; (k) assist the Creditors Committee in preparing pleadings and applications as may be necessary in furtherance of the Creditors Committee's interests and objectives; and (1) perform other legal services as may be required and are deemed to be in the interests of the Creditors Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code. Morris Nichols will be paid on an hourly basis, plus reimbursement of actual and necessary expenses incurred: Designation Hourly Rate ----------- ----------- Partners US$425 - US$625 Associates US$220 - US$400 Paraprofessionals US$175 Case Clerks US$100 William H. Sudell, Jr., Esq., a partner at Morris Nichols, assures the Court that his firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Morris Nichols does not hold or represent any interest adverse to the Debtors' estates or their creditors, Mr. Sudell adds. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Principal Financial Discloses 9.5% Equity Stake --------------------------------------------------------------- In a regulatory filing with the U.S. Securities and Exchange Commission dated Jan. 11, 2007, Principal Financial Group, Inc., disclosed that it beneficially owns 2,480,300 shares of Sea Containers Ltd.'s common stock, which represents 9.5% of the total outstanding shares issued. Principal Financial's subsidiary, Post Advisory Group, LLC, also holds beneficial ownership of the 2,480,300 shares of SCL stock. Post Advisory is the beneficial owner of the shares on behalf of the numerous clients who have the right to receive and the power to direct the receipt of dividends from, or the proceeds of the sale of, the Common Stock. No client has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, more than 5% of SCL's Common Stock. Principal Financial and Post Advisory have shared voting and selling power over the shares. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SKYEPHARMA PLC: Dr. David Ebsworth Buys 67,000 Ordinary Shares -------------------------------------------------------------- SkyePharma PLC Non-Executive Director Dr. David Ebsworth purchased on Jan. 19 67,000 Ordinary Shares in the Company at a price of 23.99 pence per share. The shares are registered in the name of DWP Bank. As a result of the transaction Dr. Ebsworth now has a beneficial interest in 200,000 Ordinary Shares in the Company, which represents 0.03% of the Issued Share Capital of the Company. Headquartered in London, SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world-leading drug delivery technologies that provide easier-to-use and more effective drug formulations. There are now 12 approved products incorporating SkyePharma's technologies in the areas of oral, injectable, inhaled, and topical delivery supported by advanced solubilisation capabilities. Going Concern Doubt As reported in the Troubled Company Reporter on Aug. 1, 2006, PricewaterhouseCoopers LLP in London raised substantial doubt about Skyepharma PLC's ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2005. The auditing firm pointed to the uncertainty as to when Skyepharma's certain strategic initiatives may be concluded and their effect on the company's working capital requirements. STEINWAY MUSICAL: Terminates Dennis Bamber Asset Purchase Pact -------------------------------------------------------------- Steinway Musical Instruments Inc. provided a notice of termination of the asset purchase agreement with Dennis Bamber Inc. dba The Woodwind & The Brasswind. As reported in the Troubled Company Reporter on Dec. 21, 2006, Steinway has been named the lead bidder in the auction for music retailer The Woodwind & The Brasswind, which filed for Chapter 11 bankruptcy protection in November 2006 after losing a lawsuit. Based on the due diligence performed, the company has concluded that there will be a failure of certain conditions necessary to close the transaction. Therefore, Steinway is exercising its right to terminate the agreement. The timing and effect of the termination is subject to approval by the U.S. Bankruptcy Court for the Northern District of Indiana. About The Woodwind & The Brasswind Headquartered in South Bend, Indiana, Dennis Bamber, Inc. dba The Woodwind & The Brasswind sells musical instruments through its retail store, catalogs and Internet sites. The company filed for chapter 11 protection on Nov. 21, 2006 (Bankr. N.D. Ind. Case No. 06-31800). Howard L. Adelman, Esq., at Adelman & Gettleman, Ltd., in Chicago, Illinois, represents the Debtor. When the Debtor filed for protection from its creditors, it estimated assets and debts between US$1 million and US$100 million. About Steinway Musical Instruments Steinway Musical Instruments, Inc. -- http://www.steinwaymusical.com/ -- (NYSE: LVB), through its Steinway and Conn-Selmer divisions, manufactures musical instruments. Its notable products include Bach Stradivarius trumpets, Selmer Paris saxophones, C.G. Conn French horns, Leblanc clarinets, King trombones, Ludwig snare drums and Steinway & Sons pianos. The company employs a workforce of over 2,300 and operates 14 manufacturing facilities in the United States and Europe. * * * As reported in the Troubled Company Reporter on Nov. 7, 2006, Standard & Poor's Ratings Services placed its ratings for Steinway Musical Instruments Inc., including the 'BB-' corporate credit rating, on CreditWatch with negative implications. As reported in the TCR-Europe on Oct. 4, 2006, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. consumer products sector, the rating agency confirmed its Ba3 Corporate Family Rating for Steinway Musical Instruments, and downgraded its Ba3 rating to B1 on the company's US$175 million senior unsecured notes. Additionally, Moody's assigned an LGD4 rating to those bonds, suggesting noteholders will experience a 64% loss in the event of a default. TRANSRENT TRAILER: Names Administrators from Deloitte & Touche -------------------------------------------------------------- Nicholas Guy Edwards, Neville Barry Khan and Dominic Lee Zoong Wong of Deloitte & Touche LLP were appointed joint administrators of Transrent Trailer Rental Ltd. (Company Number 03528641), Transrent Holdings Ltd. (Company Number 04191385), and United Transport Finance Ltd. (Company Number 04199831) on Jan. 11. Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. Transrent Trailer Rental Ltd. can be reached at: Askeys Farm Lane Grays Essex RM20 3EG United Kingdom Tel: 01375 387 187 U.K. COAL: HSE Calls for Review of Ground Control Requirements -------------------------------------------------------------- The Health and Safety Executive issued an order, which calls for a systematic review of ground control requirements in an area of U.K. Coal Plc's Daw Mill mine associated with the current production phase. The review came as a result of a fatal accident last week caused by a fall of ground. At the present time, it is estimated this will mean production at Daw Mill will be restricted for some four weeks. No other operations will be affected. About the Company Headquartered in Doncaster, United Kingdom, U.K. Coal Plc -- http://www.rjb.co.uk/-- produces coal and supplies around 7% of the country's energy needs for electricity generation. The company owns a power generation business utilizing waste gas from coal mines to generate electricity and has received planning permission for the development of the Group's first wind farm. At June 30, 2006, the company's balance sheet showed strained liquidity with GBP157.4 million in total current assets available to pay GBP183.7 million in total liabilities coming due within the next 12 months. VECTOR NETWORKS: Brings In Administrators from KPMG --------------------------------------------------- Richard Dixon Fleming and Howard Smith of KPMG LLP were appointed joint administrators of Vector Networks Ltd. (Company Number 02699925) on Jan. 12. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. Vector Networks Ltd. can be reached at: Unit 4 Mercury Park Amber Close Tamworth Staffordshire B77 4RP United Kingdom Tel: 0182767333 Fax: 0182767068 ********* 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 * * *