/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070503.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, May 3, 2007, Vol. 8, No. 87 Headlines A U S T R I A DIPL.-ING. HEIMO: Claims Registration Period Ends May 14 EPSILON GEWERBEIMMOBILIEN: Claims Registration Ends May 22 FERCHER MODERNE: Claims Registration Period Ends May 14 LUDWIG SCHIRMER: Claims Registration Period Ends May 18 NORBERT NIRSCHL: Claims Registration Period Ends May 24 REISEGGER LLC: Claims Registration Period Ends May 18 S.N. ELEKTRO: Estate Administrator Declares Insufficient Assets TERRA PROMESSA: Vienna Court Orders Business Shutdown TZIANAS LLC: Estate Administrator Declares Insufficient Assets B E L G I U M ARVINMERITOR INC: Board Declares 10 Cents Per Share Dividend CHIQUITA BRANDS: Selling Cargo Vessels for US$277 Million CHIQUITA BRANDS: Posts US$3.4 Mln Net Loss in First Qtr. 2007 C Z E C H R E P U B L I C ZBROJOVKA BRNO: J&T Finance Pays CZK707 Million to Close Sale F R A N C E DELPHI CORP: Court Records US$54 Mil. Claim Transfers in March DELPHI CORP: May Violate EU Policy Over Spanish Plant Closure RHODIA SA: Puts EUR30 Mil for Brazil's Intermediates Production G E O R G I A METROMEDIA INTERNATIONAL: U.S. SEC May Deregister Securities G E R M A N Y ALLGEMEINE HYPOTHEKENBANK: Offers Pfandbriefe Repurchase ALLGEMEINE HYPOTHEKENBANK: Posts EUR575.1 Million Loss for 2006 AUTOHAUS APPEL: Creditors Must Register Claims by May 15 AUTOHAUS H. HEMPEL: Claims Registration Period Ends June 1 BARING BAUGESELLSCHAFT: Creditors Must File Claims by June 20 BAUELEMENTE PREIS: Creditors Must Register Claims by May 30 DE-BO GARDINEN: Claims Registration Period Ends June 22 DFS DACH: Claims Registration Period Ends May 31 ECO CLEAN: Claims Registration Period Ends June 4 GEORG ZEHETNER: Claims Registration Period Ends June 15 GLOBAL NETWORKS: Claims Registration Period Ends June 1 GLW BAU: Claims Registration Ends June 21 GRUNDSTUECKSGESELLSCHAFT WALLENRODER: Claims Due Set June 19 HAYES LEMMERZ: Plans US$150 Million of Senior Notes Offering HAYES LEMMERZ: Discloses Rights Distribution to Stockholders HEINRICH GEHRLICH: Claims Registration Ends July 13 IGB IMMOBILIENVERWERTUNG: Claims Registration Ends June 22 JE TRANSPORTE: Claims Registration Ends May 22 JENOPTIK AG: Owns 100% of SINAR After Minority Stake Acquisition LAMP BUERO-SYSTEME: Claims Registration Ends June 7 NRG ENERGY: Inks Deal with TEPCO to Expand South Texas Project PERFECTA STEUERBERATUNGSGESELLSCHAFT: Claims Filing Ends June 19 PERI GMBH: Moody's Assigns Loss-Given-Default Rating PETERSMEIER GMBH: Creditors Must Register Claims by May 23 PUTBUSER BAUGESELLSCHAFT: Creditors Must File Claims by May 25 R-ANTRIEBSTECHNIK GMBH: Claims Registration Period Ends June 8 SAKUFA PUTZGESCHAFT: Claims Registration Period Ends July 9 TANNENHOF GASTRONOMIEBETRIEBE: Claims Registration Ends May 26 TPR INSTALLATIONSTECHNIK: Claims Registration Ends June 15 WINDPARK SEFFERWEICH: Creditors Meeting Slated for May 24 WOLFGANG HARICH: Creditors Meeting Slated for June 6 I R E L A N D CENTRAL PARKING: Moody's Puts (P)Ba2 Rating on US$355MM Facility GLASTONBURY FINANCE: Fitch Rates Class E & F Notes at BB- SCOTTISH RE: Provides Update on MassMutual & Cerberus Deal TRANSCREDIT FINANCE: Moody's Puts Ba3 Rating to Notes I T A L Y ALITALIA SPA: Names Berardino Libonati as Coordinating Unit Head TAURUS CMBS: S&P Affirms BB Ratings on Class G Notes; Ends Watch K A Z A K H S T A N ENERGOTECHSERVICE 2030: Creditors Must File Claims by May 30 KAISAR LLP: Proof of Claim Deadline Slated for May 30 KAZROSSENERGO LLP: Claims Registration Ends May 30 OIL-BUSINESS LLP: Claims Filing Period Ends May 30 PROMETEY CJSC: Claims Filing Period Ends June 12 RATHAN AIR-CARGO: Creditors Must File Claims by May 30 TEMIRBANK JSC: S&P Puts B+ Ratings on US$1.2 Billion MTN Program VESTA-IMPEX LLP: Creditors' Claims Due June 2 K Y R G Y Z S T A N REAL LLC: Creditors Must File Claims by June 20 L I T H U A N I A BANKAS SNORAS: Fitch Rates Upcoming Bond Issue at BB- L U X E M B O U R G DOV PHARMACEUTICAL: PwC Raises Going Concern Doubt MILLICOM INT'L: Moody's Assigns Loss-Given-Default Rating N E T H E R L A N D S TEMIR CAPITAL: S&P Puts B+ Ratings on US$1.2 Billion MTN Program VIMPEL-COMMUNICATIONS: Clears Dutch Unit to Repurchase Shares P O L A N D OMNOVA SOLUTIONS: Moody's Rates Proposed US$150MM Sr. Loan at B2 R U S S I A AGRO PROJECT-ZHELEZNOGORSK: Claims Filing Period Ends June 14 AVANT-GUARD CJSC: Court Names E. Feoktistov to Manage Assets BEARING FACTORY-34: Creditors Must File Claims by June 7 EAST OJSC: Creditors Must File Claims by June 14 FERTILITY OJSC: Court Names M. Kushkhov as Insolvency Manager GAYSKAYA MILL: Creditors Must File Claims by June 14 KOTELNIKOVSKIY AGRO: Creditors Must File Claims by June 7 KRASNOSELSKAYA-2 CJSC: Asset Sale Slated for May 11 KUBAN'-OPT-PROD-TORG: Bankruptcy Hearing Slated for June 25 MAGNITOGORSK IRON: Earns RUR10.3 Billion for First Quarter 2007 MARSHALL HOLDINGS: Auditors Raise Going Concern Doubt MOBILE TELESYSTEMS: Faces Suit over Tarino Stock Option Deal MOBILE TELESYSTEMS: Moody's Assigns Loss-Given-Default Rating SERGACH-STROY-BYT: Court Starts Bankruptcy Supervision Procedure SIB-TRANS-ALLIANCE: Creditors Must File Claims by June 14 SIRENA OJSC: Moscow Court Names E. Vesnin as Insolvency Manager STREZHEVOJ-SEL-KHOZ-PRODUCT: Claims Filing Period Ends May 14 SVETOVID LLC: Court Starts Bankruptcy Supervision Procedure TRANSCREDITBANK: Moody's Puts Ba3 Rating to Unit's Notes TYUMEN-GEOL-SNAB-SERVICE: Bankruptcy Hearing Slated for June 19 VIMPEL-COMMUNICATIONS: Clears Dutch Unit to Repurchase Shares VNESHTORGBANK JSC: To Float 22.5% of Equity in Global Offering VNESHTORGBANK JSC: Prices Share Offering at Up to 11.30 Kopecks S P A I N TOWER AUTOMOTIVE: Files Chapter 11 Plan and Disclosure Statement TOWER AUTOMOTIVE: Treatment of Claims Under Chapter 11 Plan TOWER AUTOMOTIVE: Disclosure Statement Hearing Set for June 5 S W I T Z E R L A N D ASOMEC SYSTEME: Creditors' Liquidation Claims Due May 18 BOURBAKI RESTAURANT: Creditors' Liquidation Claims Due May 18 CHEMINVEST JSC: Creditors' Liquidation Claims Due May 18 ESTIMED PHARMA: Creditors' Liquidation Claims Due May 18 INTEGMAR HOLDING: Creditors' Liquidation Claims Due May 21 PRO BAUTEAM: Creditors' Liquidation Claims Due May 19 S-T SYSTEMTRADE: Creditors' Liquidation Claims Due May 21 SPORTS VISION: Creditors' Liquidation Claims Due June 18 TROEHLER BFSA: Creditors' Liquidation Claims Due May 18 VIDEOTRONIC (SCHWEIZ): Creditors' Liquidation Claims Due May 21 T U R K E Y TURKCELL: Altimo Demands Repayment of US$1.3 Bln Cukurova Loan U K R A I N E ALPHA-8 LLC: Creditors Must Register Claims by May 12 BUILDING MECHANIZATION: Creditors Must Register Claims by May 12 MIZOCH AGRICULTURAL: Creditors Must Register Claims by May 13 OCHAKOV MOTOR: Creditors Must Register Claims by May 13 ROVNO AGRICULTURAL: Creditors Must Register Claims by May 13 SHEBELINKA CJSC: Creditors Must Register Claims by May 13 SPHERE LLC: Creditors Must Register Claims by May 13 STIROL JSC: Moody's Assigns Loss-Given-Default Rating TECHNICAL SERVICE: Creditors Must Register Claims by May 12 TECHNOR LLC: Creditors Must Register Claims by May 12 UKRAINIAN INDUSTRIAL: Creditors Must Register Claims by May 13 U N I T E D K I N G D O M AEON PLC: Brings In Joint Administrators from PwC ALBANY BUILDING: Kaupthing Singer Taps Ernst & Young as Receiver BAUSCH & LOMB: Earns US$14.9 Million in Year Ended Dec. 31, 2006 BRITISH SKY: Antitrust Probe Could Force ITV Stake Sale CHOPSTICKS AND BOWL: Names Keith Barry Stout Liquidator COLLINS & AIKMAN: Secured Creditors Balk at Biz Sale Procedure ECLIPSE 2007-2: Fitch Rates EUR5.75 Million Class E Notes at BB ECLIPSE 2007-2: S&P Rates EUR5.75 Million Class E Notes at BB GENCIA LTD: Appoints Alan H. Tomlinson as Liquidator GENERAL MOTORS: Three Execs Continue Voluntary Salary Reductions GOSHAWK INSURANCE: Posts US$977,000 Net Losses in Full Year 2006 HARRY KINDRED: HSBC Bank Appoints Deloitte & Touche as Receivers HILTON HOTELS: Earns US$95 Million in 2007 First Quarter KUDOS INFORMATION: Taps Joint Administrators from Baker Tilly LUCKSBRIDGE NURSERIES: Names Joint Administrators from Vantis MAGGIE CAROL: Hires Richard Ian Williamson as Liquidator NORTH LONDON: Brings In Baker Tilly as Administrators ORION TRADING: Taps Liquidator from Rendell Thompson PICCADILLY TRANSPORT: Claims Filing Period Ends June 18 PURPLE STATIONERY: Joint Liquidators Take Over Operations RAYMAR COATINGS: Brings In Liquidator from Butcher Woods RECORDVIEW LTD: Names Liquidator to Wind-Up Business SANDBACH TREATMENT: Appoints Administrators from Begbies Traynor UNITED ONLINE: Calls In Liquidator from Ward & Co. VIRGIN MEDIA: BSkyB Antitrust Probe Could Launch Fresh ITV Bid WATERMARK GROUP: Earns GBP2.8 Million in Full Year 2006 WEST END: HSBC Bank Appoints Receivers from Deloitte * U.S.-EU to Create One Trans-Atlantic Acctg. Standard by 2009 * Grant Thornton U.K. and RSM Robson Rhodes Agree to Merge * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= DIPL.-ING. HEIMO: Claims Registration Period Ends May 14 -------------------------------------------------------- Creditors owed money by LLC Dipl. - Ing. Heimo Stromberger (FN 183364d) have until May 14 to file written proofs of claim to court-appointed estate administrator Norbert Peter Tischitz at: Dr. Norbert Peter Tischitz Moritschstrasse 2/I 9500 Villach Austria Tel: 04242/23203 Fax: 04242/23203-3 E-mail: rechtsanwaelte@kramer-tischitz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on May 21 for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Hall 225 Second Floor Klagenfurt Austria Headquartered in Villach, Austria, the Debtor declared bankruptcy on April 11 (Bankr. Case No. 41 S 33/07m). EPSILON GEWERBEIMMOBILIEN: Claims Registration Ends May 22 ---------------------------------------------------------- Creditors owed money by Epsilon Gewerbeimmobilien & Co KEG (fka LLC European Outlets & Co KEG) (FN 244724p) have until May 22 to file written proofs of claim to court-appointed estate administrator Michael Lentsch at: The Dr. Michael Lentsch Hauptplatz 32 2700 Wiener Neustadt Austria Tel: 02622/27 0 41 Fax: 02622/29 2 46 E-mail: office@kosch-partner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on June 5 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Leobersdorf, Austria, the Debtor declared bankruptcy on March 21 (Bankr. Case No. 11 S 35/07v). FERCHER MODERNE: Claims Registration Period Ends May 14 ------------------------------------------------------- Creditors owed money by LLC Fercher Moderne (FN 131071b) have until May 14 to file written proofs of claim to court-appointed estate administrator Hannes Arneitz at: Mag. Hannes Arneitz 10.Oktober Strasse Nr.13/DG 9500 Villach Austria Tel: 04242/24 074 Fax: 04242/24074-15 E-mail: rechtsanwalt@arneitz.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on May 21 for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Conference Hall 225 Second Floor Klagenfurt Austria Headquartered in Villach, Austria, the Debtor declared bankruptcy on April 6 (Bankr. Case No. 41 S 31/07t). LUDWIG SCHIRMER: Claims Registration Period Ends May 18 ------------------------------------------------------- Creditors owed money by OG Ludwig Schirmer (FN 17955f) have until May 18 to file written proofs of claim to court-appointed estate administrator Max Dengg at: Dr. Max Dengg Wilhelm-Greil-Strasse 19a 6020 Innsbruck Austria Tel: 0512/573900 Fax: 0512/573900-6 E-mail: office@ra-max-dengg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 a.m. on June 1 for the examination of claims. The meeting of creditors will be held at: The Land Court of Innsbruck Room 214 Conference Hall Second Floor Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Innsbruck, Austria, the Debtor declared bankruptcy on April 10 (Bankr. Case No. 7 S 19/07i). NORBERT NIRSCHL: Claims Registration Period Ends May 24 ------------------------------------------------------- Creditors owed money by KEG Norbert Nirschl (FN 153404w) have until May 24 to file written proofs of claim to court-appointed estate administrator Romana Weber-Wilfert at: Dr. Romana Weber-Wilfert c/o Mag. Gerald Gerstacker Schrannenplatz 3/I 2340 Moedling Austria Tel: 02236/864 5679 Fax: 02236/864567-1 E-mail: office@weber-wilfert.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on June 6 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Heiligenkreuz, Austria, the Debtor declared bankruptcy on April 11 (Bankr. Case No. 10 S 37/07f). Gerald Gerstacker represents Dr. Weber-Wilfert in the bankruptcy proceedings. REISEGGER LLC: Claims Registration Period Ends May 18 ----------------------------------------------------- Creditors owed money by LLC Reisegger (FN 116257t) have until May 18 to file written proofs of claim to court-appointed estate administrator Benno Wageneder at: Dr. Benno Wageneder Bahnhofstrasse 20 4910 Ried im Innkreis Austria Tel: 07752/810 23 Fax: 07752/810 74 E-mail: b.wageneder@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on May 30 for the examination of claims. The meeting of creditors will be held at: The Land Court of Ried im Innkreis Hall 101 First Floor Ried im Innkreis Austria Headquartered in Senftenbach, Austria, the Debtor declared bankruptcy on April 10 (Bankr. Case No. 17 S 11/07k). S.N. ELEKTRO: Estate Administrator Declares Insufficient Assets --------------------------------------------------------------- Mag. Dominik Baurecht, the court-appointed estate administrator for LLC S.N. Elektro und Sanitar (FN 275359s), declared April 5 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the estate administrator's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 16 (Bankr. Case No. 6 S 33/07f). Wolfgang Gerhard Zorn represents Mag. Baurecht in the bankruptcy proceedings. The estate administrator can be reached at: Mag. Dominik Baurecht c/o Dr. Wolfgang Gerhard Zorn Weihburggasse 4/22 1010 Vienna Austria Tel: 533 66 61-0 Fax: 533 66 61-10 E-mail: baurecht@gnbz.at TERRA PROMESSA: Vienna Court Orders Business Shutdown ----------------------------------------------------- The Trade Court of Vienna entered April 5 an order shutting down the business of LLC Terra Promessa (FN 189753z). Court-appointed estate administrator Philipp Dobner recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Philipp Dobner Mariahilfer Strasse 50 1070 Vienna Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: schulyok-unger@csg.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 23 (Bankr. Case No. 28 S 35/07m). TZIANAS LLC: Estate Administrator Declares Insufficient Assets -------------------------------------------------------------- Mag. Michael Neuhauser, the court-appointed estate administrator for LLC Tzianas (FN 162119k), declared April 5 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the estate administrator's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 27 (Bankr. Case No. 28 S 37/07f). The estate administrator can be reached at: Mag. Michael Neuhauser Esslinggasse 9 1010 Vienna Austria Tel: 536 50-0 Fax: 536 50-14 E-mail: officewien@aaa-law.at ============= B E L G I U M ============= ARVINMERITOR INC: Board Declares 10 Cents Per Share Dividend ------------------------------------------------------------ The ArvinMeritor Inc.'s Board of Directors, at a meeting held on April 27, 2007, at its corporate headquarters, declared a quarterly dividend of US$0.10 per share on the common stock, payable June 11, 2007, to holders of record at the close of business on May 21, 2007. Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- is a premier US$8.8 billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. ArvinMeritor employs approximately 29,000 people at more than 120 manufacturing facilities in 25 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. * * * As reported in the Troubled Company Reporter on Feb. 12, Dominion Bond Rating Service assigned a rating of BB (low) to the US$175 million Convertible Senior Unsecured Notes of ArvinMeritor Inc. The trend is Stable. As reported on on Feb. 6, Moody's Investors Service has downgraded ArvinMeritor's Corporate Family Rating to Ba3 from Ba2. Ratings on the company's secured bank obligations and unsecured notes were lowered one notch as a result. Ratings lowered: ArvinMeritor Inc. -- Corporate Family Rating to Ba3 from Ba2 -- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3, LGD-2, 18% -- Senior Unsecured notes to B1, LGD-4, 65% from Ba3, LGD-4, 64% -- Probability of Default to Ba3 from Ba2 -- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3, LGD-4, 64% Arvin Capital I -- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96% Arvin International PLC -- Unsecured notes guaranteed by ArvinMeritor Inc. to B1, LGD-4, 65% from Ba3, LGD-4, 64% Ratings affirmed: ArvinMeritor Inc. -- Speculative Grade Liquidity rating, SGL-2 CHIQUITA BRANDS: Selling Cargo Vessels for US$277 Million --------------------------------------------------------- Chiquita Brands International Inc. has signed definitive agreements to sell its 12 refrigerated cargo vessels for US$227 million. The ships will be chartered back from an alliance formed by Eastwind Maritime Inc. and NYKLauritzenCool AB. The parties also entered a long-term strategic agreement in which the alliance will serve as Chiquita's preferred supplier in ocean shipping to and from Europe and North America. As part of the transaction, Chiquita will lease back 11 of the vessels for a period of seven years, with options for up to an additional five years, and one vessel for a period of three years, with options for up to an additional two years. The vessels to be sold consist of eight reefer ships and four container ships, which collectively transport approximately 70 percent of Chiquita's banana volume shipped to core markets in Europe and North America. The agreements also provide for the alliance to service the remainder of Chiquita's core ocean shipping needs for North America and Europe, including through multiyear time charters commencing in 2008 for seven additional reefer vessels. "This long-term arrangement will increase our financial flexibility, simplify our business model and allow us to increase our focus on providing branded, healthy, fresh foods to consumers worldwide," Fernando Aguirre, Chiquita's chairman and chief executive officer, said. "We are confident that the alliance parties, whose core business is global shipping, will ensure the continuing reliable, high-quality shipment of Chiquita products. The ship sale transaction will significantly reduce our debt, and the alliance will better position us to adapt our shipping services as we grow our business over time. At the same time, we anticipate that this transaction will generate synergies and help to keep operating costs competitive. Additionally, the long-term ship leases will help insulate us from further industry operating cost increases on a significant portion of our logistics portfolio for several years to come." "This transaction is an exciting and rare opportunity to acquire a large, modern, highly efficient refrigerated fleet and to work with one of the best names in the produce industry," John Kousi, chairman of Eastwind Maritime, said. "Not only is this a great opportunity to grow with Chiquita, but it also provides an excellent platform on which to optimize capacity and achieve cost synergies in the global shipment of produce, which is key to our business." The parties expect to complete the transaction within 45 days. The alliance parties have committed to maintain the same high social and environmental standards and certifications that Chiquita introduced in its shipping operations, including International Maritime Organization, American Bureau of Shipping, ISO 9002, and ISO 14001 safety, quality and environmental standards as well as Chiquita's code standards related to labor conditions. As of March 31, 2007, the net book value of the assets to be transferred in the transaction approximated US$125 million. Chiquita expects to realize an after-tax gain on the transaction of approximately US$100 million, which will be amortized over the initial terms of the ship charters. The cash proceeds from the transaction will be used to repay approximately US$170 million of debt, including US$90 million of ship mortgage debt and US$80 million in term loan and revolving credit borrowings. The remainder will be retained for general corporate purposes, including growth investments. The company's total-debt-to- capitalization ratio of 55 percent at March 31, 2007, would have been approximately 51 percent pro forma for the debt reduction resulting from the transaction. While EBITDA and operating income will be reduced because of the conversion from owned assets to operating leases, the transaction is expected to be accretive to net income and EPS beginning in 2007, despite US$4 million in one-time costs for severance and the writeoff of deferred financing costs, which will be expensed in the second quarter. The company estimates that it will achieve synergies of approximately US$2 million in 2007 and US$4 million in 2008 through efficiencies such as route combinations, cargo sharing and increased backhaul revenues. Transaction's Estimated Impact, Including Synergies (US$ millions except EPS) 2007 2008(1) EBITDA (US$12) (US$14) Depreciation 7 11 Operating Income (5) (3) Net Income 1 11 EPS 0.03 0.25 (1) Chiquita anticipates additional improvement during the subsequent six-year period (2009-2014), because the company will not incur certain inflationary operating expenses due to the fixed lease rates established in the agreement. Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 70 countries including Panama, Philippines, Australia, Belgium, Germany, among others. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. * * * Moody's Investors Service downgraded the ratings for Chiquita Brands L.L.C., as well as for its parent Chiquita Brands International, Inc. Moody's said the outlook on all ratings is stable. Standard & Poor's Ratings Services also lowered its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. CHIQUITA BRANDS: Posts US$3.4 Mln Net Loss in First Qtr. 2007 ------------------------------------------------------------- Chiquita Brands International Inc. released financial and operating results for the first quarter ended March 31, 2007. Chiquita posted US$3.4 million in net losses against US$1.19 billion in net sales for the first quarter ended March 31, 2007, compared with US$19.5 million in net profit against US$1.15 billion in net sales for the same period in 2006. Quarterly sales rose primarily due to increased banana volume in Europe and North America and favorable foreign exchange rates, partly offset by lower local banana pricing in Europe. Operating income decreased year-over-year to US$18 million in Q1 2007 from US$39.3 million in Q1 2006 due to higher purchased fruit and other industry costs, lower local banana pricing in the European market, higher costs due to a record January freeze in Arizona, which affected lettuce sourcing, and the charge related to a decision to exit certain farm leases in Chile. These were partially offset by favorable year-over-year European exchange rates and the absence of residual costs from Tropical Storm Gamma that affected the year-ago period. The year-over-year improvement in operating cash flow to (US$3.4) million in Q1 2007 from US19.5 million in Q1 2006 was attributable to lower seasonal working capital requirements, driven by a reduction in days sales outstanding in receivables, partly offset by a decline in operating results. The increase in total debt to US$1.06 million in Q1 2007 from US$1.02 million in Q1 2006 was due to US$36 million of borrowings on the company's revolving credit facility in the first quarter 2007, which brought total borrowings under the facility to US$80 million at March 31, 2007, compared to US$27 million at March 31, 2006. The company repaid US$16 million in April and currently expects to repay all outstanding borrowings under its revolving credit facility by the end of the second quarter 2007. The company expects to apply excess cash flow primarily to pay down debt until it reaches its target total debt-to-capital ratio of 40 percent. At March 31, 2007, this ratio was 55 percent and would have been 51 percent proforma for the debt reduction resulting from the ship sale transaction described below. "During the first quarter, we continued to make good progress in both our banana and salad operations," Fernando Aguirre, chairman and chief executive officer, said. "In Europe, we grew volume while maintaining our premium market position and profitability, despite last year's onerous regulatory changes. In our North American banana business, we also grew volume, recovered cost increases, and are successfully introducing higher-margin, innovative products to differentiate the Chiquita brand. At Fresh Express, we have strengthened our No. 1 position in retail value-added salads and reinforced our food safety leadership in the face of soft consumer demand for packaged salads. While these primary segments are improving, we have also taken decisive actions to improve profits in our other produce operations, including exiting certain farm operations in Chile. "Most significantly, the long-term shipping agreement we announced [Tues]day is an important step in the execution of our strategy to return to profitable, sustainable growth. In a nutshell, we could not have asked for a better transaction. We will increase our financial flexibility, simplify our business model, and focus on the marketplace to provide branded, healthy, fresh foods to consumers worldwide, while we let the right experts deliver as good or better results in our shipping operations. We are confident that our agreement with two premier global shipping companies will ensure the continuing reliable, high-quality shipment of Chiquita products at competitive operating costs. At the same time, the transaction will significantly reduce our debt, and the alliance will better position us to adapt our shipping services as we grow our business over time." "Overall, while we have faced several obstacles in recent quarters, I am confident that Chiquita is on the right path, and we saw tangible signs of progress in the first quarter. We remain committed to deliver sustainable, profitable growth, and we expect 2007 to be a positive step in reaching those goals," Mr. Aguirre concluded. Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 70 countries including Panama, Philippines, Australia, Belgium, Germany, among others. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. * * * Moody's Investors Service downgraded the ratings for Chiquita Brands L.L.C., as well as for its parent Chiquita Brands International, Inc. Moody's said the outlook on all ratings is stable. Standard & Poor's Ratings Services also lowered its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. =========================== C Z E C H R E P U B L I C =========================== ZBROJOVKA BRNO: J&T Finance Pays CZK707 Million to Close Sale ------------------------------------------------------------- The J&T Finance Group has fully paid the CZK707 million it had offered in January for bankrupt Zbrojovka Brno's complex in the largest ever auction in the Czech Republic. The amount will be included in Zbrojovka's bankruptcy assets, the Czech News Agency reports. The TCR-Europe reported on Feb. 9 that J&T, in partnership with CPI Group, outbid 10 other interested buyers on Jan. 31. J&T is planning to redevelop Zbrojovka Brno's plant within five to 10 years, but ruled out relaunching the company's arms production business. About Zbrojovka Brno Headquartered in Brno, Czech Republic, Zbrojovka Brno a.s. -- http://www.zbrojovkabrno.com/-- manufactures and sells hunting arms. The company exports 80% of its hunting arms to Finland, Germany, Spain, Italy, Poland, Ukraine, Romania and Canada. The Honorable Jiri Berka of the Regional Court of Usti nad Labem declared Zbrojovka Brno a.s. bankrupt in March 2003, but kept the group's arms production unit operating. Shortly after, it emerged from bankruptcy only to fall back in October 2003. Around 72 creditors have filed CZK465 million in claims against the company. Its largest creditors are Czech Social Security Administration CSSZ, GE Money Bank, bailout agency CKA and the local tax office. =========== F R A N C E =========== DELPHI CORP: Court Records US$54 Mil. Claim Transfers in March -------------------------------------------------------------- The Clerk of the Bankruptcy Court for the Southern District of New York recorded roughly US$54,000,000 in claims changing hands for the period March 1 to 31, 2007. The investors who bought claims are: No. of Claims Aggregate Investor Bought Claim Amount -------- ------ ------------ Amroc Investments, LLC 12 US$304,967 APS Capital Corp. 3 3,780,996 Argo Partners 7 138,410 ASM Capital, L.P. 7 62,978 CF Special Situation Fund I LP 3 3,780,996 Contrarian Funds, LLC 37 3,579,891 Debt Acquisition Company of America V, LLC 2 677 Deutsche Bank Securities Inc. 1 771,893 Fair Harbor Capital, LLC 4 809,792 Goldman Sachs Credit Partners, L.P. 2 9,444,374 Hain Capital Holdings, LLC 1 - Integrated Quality Solutions, LLC. 1 7,725 JPMorgan Chase Bank, N.A. 5 1,388,766 Latigo Master Fund, Ltd. 2 1,403,452 Liquidity Solutions Inc. 3 1,020,254 Longacre Master Fund, Ltd. 16 3,328,774 Madison Investment Trust - Series 38 6 39,448 Madison Niche Opportunities, LLC 23 333,868 NXP Semiconductors USA, Inc. 1 5,486,881 Pumping Systems Inc. 1 6,045 Revenue Management 1 2,146 SPCP GROUP, L.L.C. 7 16,907,913 Stonehill Institutional Partners, LP 2 696,410 TPG Credit Opportunities Fund, L.P. 4 1,388,766 Trade-Debt.net 12 10,382 The largest claim transfers include those between these parties: Transferee Transferor Claim Amount ---------- ---------- ------------ APS Capital Linamar Corporation US$1,260,332 CF Special Situation APS Capital 1,260,332 Contrarian Funds Phillips Plastic Corporation 352,055 Contrarian Funds Phillips Plastic Corporation 751,116 Contrarian Funds GCI Technologies, Inc. 331,172 Deutsche Bank Yushin USA Ltd. 771,893 Goldman Sachs Analog Devices, Inc. 1,944,374 Goldman Sachs InPlay Technologies, Inc. 7,500,000 JPMorgan APS Clearing Corporation 1,347,829 Latigo Master Fund Deutsche Bank 1,403,132 Liquidity Solutions America Online, Inc. 969,142 Longacre Master Fund The Furukawa Electric Co. 498,651 Longacre Master Fund Otto Bock Polyurethane 389,744 Longacre Master Fund Xerox Corporation 485,244 Longacre Master Fund AMI Semiconductor, Inc. 459,592 NXP Semiconductors Phillips Semiconductors 5,486,881 SPCP GROUP Technical Materials, Inc. 407,748 SPCP GROUP ThyssenKrupp Waupaca Inc. 6,678,072 SPCP GROUP Stahl Specialty Company 1,384,397 SPCP GROUP ThyssenKrupp Stahl Co. 1,384,397 Stonehill Inst'l Frimo, Inc. 541,789 TPG Credit JPMorgan 620,001 TPG Credit JPMorgan 727,828 About Delphi Corp. Troy, Mich.-based Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil, and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed $17,098,734,530 in total assets and $22,166,280,476 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. DELPHI CORP: May Violate EU Policy Over Spanish Plant Closure ------------------------------------------------------------- The European Commission suggested that Delphi Corp. could be violating EU legislation with the planned closure of the firm's Puerto Real plant in Cadiz, Spain, The Financial Times reports, citing Expansion as its source. According to the report, the US car parts maker may have failed to: -- abide with rules protecting employees in the event of insolvency; and -- fully inform employees of the company's situation. In a report carried by the Troubled Company Reporter-Europe on Feb. 28, Delphi disclosed plans to shut down its Cadiz facility due to high operating costs. Delphi did not reveal the specific date of the planned closure. The site, which manufactures steering mechanisms and employs about 1,570 workers, has incurred up to US$196 million in losses in the last five years. Bloomberg News reported then that the company has informed its labor unions of the imminent closure. Among the labor unions representing Cadiz Facility workers are the Confederacion Sindical de Comisiones Obreras and the Union General de Trabajadores. Expansion relates, citing European ministers, the Commission also disclosed EU guidelines on collective redundancies, employees' rights in the event of deployment and those relating to works councils. Workers, whose jobs are going to Poland as the company capitalizes on lower labor costs, have conducted protests against the closure. About Delphi Corp. Troy, Mich.-based Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil, and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed $17,098,734,530 in total assets and $22,166,280,476 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. RHODIA SA: Puts EUR30 Mil for Brazil's Intermediates Production --------------------------------------------------------------- Rhodia Polyamide, a unit of Rhodia S.A., disclosed a EUR30 million investment to increase its intermediates production capacity at its Paulinia site in Brazil by end of 2008. The investment will allow Rhodia to meet the demand of the market growing five to six percent per year, driven by the demand for polyamide and phenolic resins in Latin America. By expanding its phenol and acetone production capacities by 25% and its cyclohexanol capacity by 43%, Rhodia will strengthen its leadership position in the regional intermediates market and reinforce its upstream integrated polyamide chain; satisfy customers' needs and seize new opportunities for profitable growth. "We have developed very solid positions in Brazil over the 87 years we've been present in the country. Today Brazil accounts for 13% of Group sales and I am particularly pleased to announce this project which confirms our commitment to the region," commented Rhodia CEO Jean-Pierre Clamadieu. "This investment is an excellent example of our strategy of sustainable and profitable growth." About Rhodia Headquartered in Paris, France, Rhodia SA (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. Rhodia employs around 19,500 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. * * * As reported in the TCR-Europe on April 26, Fitch Ratings affirmed Rhodia S.A.'s Issuer Default Rating at BB- and revised the Outlook to Positive from Stable. Fitch has assigned Rhodia SA's proposed issue of up to EUR595.125 million bonds convertible and/or exchangeable for new and/or existing shares ("OCEANE") an expected 'BB-' rating. As reported in the TCR-Europe on April 23, Moody's Investors Service upgraded Rhodia S.A. corporate family rating to Ba3 and assigned Probability of Default rating for the group at Ba3; Moody's also upgraded senior secured notes at Rhodia S.A. to B1 and assigned LGD assessment at LGD4 (69%). The proposed convertible notes are rated (P)B1, LGD4 (69%). The following ratings of Rhodia S.A. are affected: -- Corporate Family Ratings upgraded to Ba3; -- Probability of Default assigned at Ba3; -- Rhodia S.A. Senior Unsecured ratings upgraded to B1, LGD4 (69%); and -- Rhodia S.A. Senior convertible notes rated (P)B1, LGD4 (69%). Standard & Poor's Ratings Services raised its long-term corporate credit rating on Rhodia to BB- from B+, and its long- term debt rating on the group to B from B-. At the same time, Standard & Poor's assigned its B senior unsecured debt rating to Rhodia's proposed new bond, which will be used for refinancing purposes. ============= G E O R G I A ============= METROMEDIA INTERNATIONAL: U.S. SEC May Deregister Securities ------------------------------------------------------------ Metromedia International Group Inc. has received a letter from the U.S. Securities and Exchange Commission stating that the Company was not in compliance with its reporting requirements under Section 13(a) of the Securities Exchange Act of 1934, as amended. The SEC Letter stated that the Company may be subject, without further notice, to an administrative proceeding pursuant to Section 12(j) of the Exchange Act to revoke its registration under the Exchange Act if all required reports were not filed within 15 days of the date of the SEC Letter. The SEC Letter also stated that the Company's stock may be subject to a trading suspension by the SEC pursuant to Section 12(k) of the Exchange Act. The Company is in the process of preparing all required reports to comply with its reporting requirements under Section 13(a) of the Exchange Act; however, the Company does not presently expect to get current in such filings in the immediate future and can not accurately predict when it will be able to do so. The Company has commenced discussions with the SEC in an attempt to avoid the revocation of its registration pursuant to Section 12(j) of the Exchange Act, although there can be no assurance that such registration will be maintained. About Metromedia Based in Charlotte, North Carolina, Metromedia International Group (PINK SHEETS: MTRM-Common Stock and MTRMP-Preferred Stock) -- http://www.metromedia-group.com/-- through its subsidiary, Metromedia International Telecommunications, owns interests in telecom and cable TV operations in Russia, Georgia, and elsewhere in Eastern Europe. The Company's core businesses includes Magticom, Ltd., the leadingmobile telephony operator in Tbilisi, Georgia, and Telecom Georgia, a well-positioned Georgian long distance telephone operator. * * * In October 2006, Metromedia said it is filing a Chapter 11 Plan in the U.S. after receiving a binding offer to acquire all of the Company's business interests in Georgia for a cash price of US$480 million from an investment group comprised of: -- Istithmar, an alternative investment house based in Dubai, United Arab Emirates; -- Salford Georgia, the Georgian office of Salford Capital Partners Inc., a private equity and investment management company which manages investments in the CIS and Central & Eastern Europe; and -- Emergent Telecom Ventures, a communications merchant bank focused on pursuing telecommunications opportunities in the Emerging Markets. Upon the approval of the plan, all of the preferred and common equity interests in the Company will be converted into the right to receive the cash remaining after payment of all allowed claims and the costs and expenses associated with the sale and the Wind-Up. Moody's Investors Service has placed Metromedia's subordinated debt rating at B3 and junior subordinated debt rating at B2. ============= G E R M A N Y ============= ALLGEMEINE HYPOTHEKENBANK: Offers Pfandbriefe Repurchase -------------------------------------------------------- Allgemeine HypothekenBank Rheinboden AG intends to request the holders of five Public Sector Jumbo Pfandbriefe and 15 Public Sector Standard Pfandbriefe to submit offers for the sale of the Pfandbriefe concerned. Of the total of 20 issues, 10 are listed on the official market of the Frankfurt Stock Exchange and seven on the Duesseldorf Stock Exchange; three Public Sector Pfandbriefe are unlisted. In addition, series 501 and 505 are also listed on the Eurolist of Euronext Paris S.A. The offer period for Jumbo Pfandbriefe is expected to end at 5:00 p.m. Central European Time, on May 9. For the Standard Pfandbriefe, the offer period is expected to end on 5:00 p.m. Central European Time, May 15. The buyback will apply to these Public Sector Pfandbriefe: Jumbo Pfandbriefe DE0002027968 EUR2.5 bln 4.00% Oepfe. R. 496 v. 1999/2009 DE0002029519 EUR5 bln 5.00% Oepfe. R. 501 v. 1999/2009 DE0002029550 EUR3 bln 5.50% Oepfe. R. 505 v. 2000/2010 DE0003159554 EUR1 bln 5.00% Oepfe. R. 955 v. 1998/2012 DE0002027976 EUR1 bln 4.25% Oepfe. R. 497 v. 1999/2014 About the Company Headquartered in Frankfurt, Germany, Allgemeine Hypothekenbank Rheinboden AG -- http://www.ahbr.de/-- finances residential and commercial real estate projects locally. The group is also engaged in commercial lending abroad. It has assets of more than EUR80 billion. It is owned directly and indirectly -- through BHW -- by the trade union private equity holding group BGAG. BGAG has provided it EUR1.2 billion in financing, and guaranteed it under a EUR1.2 billion risk protection scheme. It recently sold the company to U.S. investment group Lone Star for EUR400 million. * * * In a TCR-Europe report on April 2, Standard & Poor's Ratings Services lowered its long-term counterparty credit rating on Germany-based Allgemeine HypothekenBank Rheinboden AG to 'BB-' from 'BB', following a review of the bank's progress in implementing its new business model. At the same time, the 'B' short-term rating was affirmed. The outlook is negative. As of Feb. 15, AHBR's Foreign Currency Long-Term Debt; Local Currency Long-Term Debt; Long-Term Bank Deposits; and Senior Unsecured Debt, carry Moody's Ba3 rating. AHBR's Subordinated debt carry Moody's B1 rating. AHBR's Subordinated Debt also carries Fitch's BB+ rating. ALLGEMEINE HYPOTHEKENBANK: Posts EUR575.1 Million Loss for 2006 --------------------------------------------------------------- Allgemeine HypothekenBank Rheinboden AG posted EUR575.1 million in net loss for year ended Dec. 31, 2006, a 47% improvement from EUR1.08 billion in net loss for the year ended Dec. 31, 2005. Results were impacted by the ongoing workout of legacy positions in derivatives and the final restructuring measures. The loss allocation takes account of the silent partnerships of EUR56.0 million and profit participation capital of EUR103.9 million. The remaining amount of EUR415.2 million and the loss brought forward from 2005 (EUR441.6 million) make up the balance sheet loss of EUR856.8 million. The implementation of the new business model developed in 2006 is proceeding as planned, and HR restructuring is largely complete. The Bank is confident that it can come close to breaking even in the current financial year, and aims to return to profitability in 2008. "AHBR has systematically implemented its restructuring program, while at the same time developing a new, viable business model," Dr. Claus Nolting, Chairman of the Management Board of AHBR, said. "These are the two main prerequisites for a successful re-launch, which will enable us to draw a line under the past and look with motivation towards the future. Initial experience with our new business model has already confirmed that we have made the right decisions." About the Company Headquartered in Frankfurt, Germany, Allgemeine Hypothekenbank Rheinboden AG -- http://www.ahbr.de/-- finances residential and commercial real estate projects locally. The group is also engaged in commercial lending abroad. It has assets of more than EUR80 billion. It is owned directly and indirectly -- through BHW -- by the trade union private equity holding group BGAG. BGAG has provided it EUR1.2 billion in financing, and guaranteed it under a EUR1.2 billion risk protection scheme. It recently sold the company to U.S. investment group Lone Star for EUR400 million. * * * In a TCR-Europe report on April 2, Standard & Poor's Ratings Services lowered its long-term counterparty credit rating on Germany-based Allgemeine HypothekenBank Rheinboden AG to 'BB-' from 'BB', following a review of the bank's progress in implementing its new business model. At the same time, the 'B' short-term rating was affirmed. The outlook is negative. As of Feb. 15, AHBR's Foreign Currency Long-Term Debt; Local Currency Long-Term Debt; Long-Term Bank Deposits; and Senior Unsecured Debt, carry Moody's Ba3 rating. AHBR's Subordinated debt carry Moody's B1 rating. AHBR's Subordinated Debt also carries Fitch's BB+ rating. AUTOHAUS APPEL: Creditors Must Register Claims by May 15 -------------------------------------------------------- Creditors of Autohaus Appel GmbH have until May 15 to register their claims with court-appointed insolvency manager Hans Joerg Laudenbach. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on June 11, 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 Giessen Hall 408 Fourth Floor Building B Gutfleischstrasse 1 35390 Giessen 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 insolvency manager can be reached at: Hans Joerg Laudenbach Carlo Mierendorff Strasse 15 35398 Giessen Germany Tel: 0641/98292-10 Fax: 0641/98292-86 The District Court of Giessen opened bankruptcy proceedings against Autohaus Appel GmbH on April 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Autohaus Appel GmbH Ursulum 6 35396 Giessen Germany AUTOHAUS H. HEMPEL: Claims Registration Period Ends June 1 ---------------------------------------------------------- Creditors of Autohaus H. Hempel GmbH & Co KG have until June 1 to register their claims with court-appointed insolvency manager Silvia Lackenbauer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 26, 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 Hanau Area E09 Engelhardstrasse 21 63450 Hanau 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 Hanau opened bankruptcy proceedings against Autohaus H. Hempel GmbH & Co KG on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Silvia Lackenbauer Gerichtsfach 59 Ulanenplatz 12 63452 Hanau Germany Tel: 06181 / 2702-31 Fax: 06181 / 2702-18 The Debtor can be reached at: Autohaus H. Hempel GmbH & Co KG Frankfurter Strasse 7 63571 Gelnhausen Germany Attn: Andreas Wagner, Manager Goldberg 30 63571 Gelnhausen-Roth Germany BARING BAUGESELLSCHAFT: Creditors Must File Claims by June 20 ------------------------------------------------------------- Creditors of BARING Baugesellschaft mbH have until June 20 to register their claims with court-appointed insolvency manager Kaufmann Joachim Schmitz. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on July 18, 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 Braunschweig Hall E 01 Martinikirche 8 38100 Braunschweig 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 insolvency manager can be reached at: Kaufmann Joachim Schmitz Immengarten 2 D 38104 Braunschweig Germany Tel: (05 31) 23 64 60 Fax: (05 31) 2 36 46 99 The District Court of Braunschweig opened bankruptcy proceedings against BARING Baugesellschaft mbH on April 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BARING Baugesellschaft mbH Ambossweg 13 38229 Salzgitter Germany BAUELEMENTE PREIS: Creditors Must Register Claims by May 30 ----------------------------------------------------------- Creditors of Bauelemente Preis GmbH have until May 30 to register their claims with court-appointed insolvency manager Jens Fahnster. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 14, 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 Limburg Hall D 221 Walderdorffstrasse 12 65549 Limburg 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 insolvency manager can be reached at: Jens Fahnster Koelnstr. 135 D 53757 Sankt Augustin-Hangelar Germany Tel: 02241/9060-0 Fax: 02241/9060-90 The District Court of Limburg opened bankruptcy proceedings against Bauelemente Preis GmbH on April 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bauelemente Preis GmbH Galmerstra�e 29 65549 Limburg Germany DE-BO GARDINEN: Claims Registration Period Ends June 22 ------------------------------------------------------- Creditors of De-Bo Gardinen GmbH have until June 22 to register their claims with court-appointed insolvency manager Eduard Spath. Creditors and other interested parties are encouraged to attend the meeting at 1:05 p.m. on July 25, 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 Hof Meeting Hall 012 Ground Floor Berliner Platz 1 95030 Hof 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 Hof opened bankruptcy proceedings against De-Bo Gardinen GmbH on April 25. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dr. Eduard Spath Strassberger Str.1 08527 Plauen Germany Tel: 03741/289499 Fax: 03741/289498 The Debtor can be reached at: De-Bo Gardinen GmbH Attn: Pia Decker, Manager Trogenauer Weg 50 95194 Regnitzlosau Germany DFS DACH: Claims Registration Period Ends May 31 ------------------------------------------------ Creditors of DFS Dach Fassaden Sanierungs-GmbH i.G. have until May 31 to register their claims with court-appointed insolvency manager Burghard Wegener. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 8, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Goettingen Hall B8 Berliner Strasse 8 37073 Goettingen 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 Goettingen opened bankruptcy proceedings against DFS Dach Fassaden Sanierungs-GmbH i.G. on April 20. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Burghard Wegener Obere Karspuele 36 D 37073 Goettingen Germany Tel: 0551/9003660 Fax: 0551/90036629 The Debtor can be reached at: DFS Dach Fassaden Sanierungs-GmbH i.G. Attn: Jutta Grube and Hermann-Josef Schenke, Managers Stadtweg 10 37130 Gleichen Germany ECO CLEAN: Claims Registration Period Ends June 4 ------------------------------------------------- Creditors of Eco Clean Gebaudereinigungs GmbH have until June 4 to register their claims with court-appointed insolvency manager Carsten Lange. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 24, 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 Aachen Meeting Hall K 5 Third Floor Alter Posthof 1 52062 Aachen 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 Aachen opened bankruptcy proceedings against Eco Clean Gebaudereinigungs GmbH on April 23. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Carsten Lange Laurentiusstrasse 16-20 52072 Aachen Germany Tel: 024141344550 Fax: 0241413445511 The Debtor can be reached at: Eco Clean Gebaudereinigungs GmbH Attn: Michaela Schmidt, Manager Rosenweg 25 A 52525 Heinsberg Germany GEORG ZEHETNER: Claims Registration Period Ends June 15 ------------------------------------------------------- Creditors of Georg Zehetner, Bauunternehmung GmbH have until June 15 to register their claims with court-appointed insolvency manager Matthias Dieckmann. Creditors and other interested parties are encouraged to attend the meeting at 8:50 a.m. on July 6, 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 Landshut Meeting Hall 9/I Maximilianstrasse 22-24 Landshut 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 Landshut opened bankruptcy proceedings against Georg Zehetner, Bauunternehmung GmbH on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Matthias Dieckmann Gute Anger 11 85356 Freising Germany Tel: 08161/988110 Fax: 08161/82472 The Debtor can be reached at: Georg Zehetner, Bauunternehmung GmbH Ottering 10 84416 Inning a. H. Germany GLOBAL NETWORKS: Claims Registration Period Ends June 1 ------------------------------------------------------- Creditors of Global Networks IT&C GmbH have until June 1 to register their claims with court-appointed insolvency manager Nikolaus Gaede. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 13, 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 Augsburg Meeting Hall 162 Alten Einlass 1 86150 Augsburg 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 Augsburg opened bankruptcy proceedings against Global Networks IT&C GmbH on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Nikolaus Gaede Buerkleinstr. 10 80538 Munich Germany The Debtor can be reached at: Global Networks IT&C GmbH Koenigsbrunner Str. 29 86507 Oberottmarshausen Germany GLW BAU: Claims Registration Ends June 21 ----------------------------------------- Creditors of GLW Bau GmbH have until June 21 to register their claims with court-appointed insolvency manager Dr. Karsten Foerster. Creditors and other interested parties are encouraged to attend the meeting at 11:10 a.m. on July 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt Hall 401 Muellroser Chaussee 55 15236 Frankfurt 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 insolvency manager can be reached at: Dr. Karsten Foerster Herbert-Jensch-Strasse 111 15234 Frankfurt Germany The District Court of Frankfurt opened bankruptcy proceedings against GLW Bau GmbH on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GLW Bau GmbH Garten-Landschafts-Wegebau Robert-Koch-Str. 2 15326 Lebus Germany GRUNDSTUECKSGESELLSCHAFT WALLENRODER: Claims Due Set June 19 ------------------------------------------------------------ Creditors of Grundstuecksgesellschaft Wallenroder Strasse 8-14 GmbH & Co. KG i.L. have until June 19 to register their claims with court-appointed insolvency manager Dr. Joachim Heitsch. Creditors and other interested parties are encouraged to attend the meeting at 9:25 a.m. on July 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 Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin 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 insolvency manager can be reached at: Dr. Joachim Heitsch Berliner Str. 117 10713 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Grundstuecksgesellschaft Wallenroder Strasse 8-14 GmbH & Co. KG i.L.on April 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Grundstuecksgesellschaft Wallenroder Strasse 8-14 GmbH & Co. KG i.L. Manteuffelstrasse 49 12103 Berlin Germany HAYES LEMMERZ: Plans US$150 Million of Senior Notes Offering ------------------------------------------------------------ Hayes Lemmerz International Inc. plans to offer approximately US$150 million, or the equivalent amount denominated in euros, of senior unsecured notes. The notes are expected to be issued by a European subsidiary. The issuance of the notes is subject to market and other customary conditions. The notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States pursuant to Regulation S under the Securities Act. The notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements. Additionally, Hayes Lemmerz has launched the syndication of the new senior secured credit facilities in an amount of up to US$495 million. The proceeds of the new credit facilities will be used to refinance the company's obligations under its Amended and Restated Credit Agreement dated April 11, 2005. The refinancing of the Amended and Restated Credit Agreement and the placement of a portion of the company's debt outside the United States are conditions to the obligation of Deutsche Bank Securities Inc. and SPCP Group LLC, an affiliate of Silver Point Capital L.P., to backstop the Rights Offering. Additional proceeds will be used to replace existing letters of credit and to provide for working capital and other general corporate purposes, and to pay the fees and expenses associated with the new credit facilities. Bank meetings are scheduled Wednesday, May 2, 2007, in London, England and Thursday, May 3, 2007, in New York, NY. Citigroup Global Markets Inc. and Deutsche Bank AG, New York Branch and Deutsche Bank Securities Inc. will act as joint arrangers and joint book-runners for the syndication of the new credit facilities. About Hayes Lemmerz International Inc. Hayes Lemmerz International, headquartered in Northville, Michigan, is a global supplier of steel and aluminum automotive and commercial vehicle highway wheels, as well as aluminum components for brakes, powertrain, suspension, and other lightweight structural products. Worldwide revenues approximate US$2.2 billion. The company has 33 facilities worldwide including India, Brazil and Germany, among others. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 7, 2007, Moody's Investors Service lowered HLI Operating company, Inc.'s ratings: * Corporate Family to Caa1 from B3; * first lien senior secured to B1 from Ba3; * second lien term loan to Caa1 from B3. HAYES LEMMERZ: Discloses Rights Distribution to Stockholders ------------------------------------------------------------ Hayes Lemmerz International, Inc. reported the distribution of rights in its previously announced US$180 million rights offering and the execution of a commitment letter for a new US$495 million senior secured credit facility. The company is distributing to stockholders of record as of April 10, 2007, non-transferable subscription rights to purchase shares of its common stock in connection with the Rights Offering. Stockholders on the record date will receive 1.3970 rights for each share of the company's common stock held on the record date. Each right entitles the holder to purchase one share of common stock at a price of US$3.25 per share until 5:00 p.m. Eastern Daylight Time, on May 21, 2007, unless extended by the company. Stockholders who receive rights through a bank or broker will receive instructions for exercising rights from their bank or broker and may be required to act prior to the stated expiration time. Hayes Lemmerz may terminate the Rights Offering for any reason prior to the expiration time. The Rights Offering and the related agreements are subject to the approval of the company's stockholders. A special meeting to approve the rights offering and certain other matters is scheduled to be held on May 4, 2007, at the company's headquarters in Northville, Michigan. Hayes Lemmerz also has executed a commitment letter with Citigroup Global Markets Inc. and Deutsche Bank AG, New York Branch and Deutsche Bank Securities Inc. to provide new senior secured credit facilities in an amount of up to US$495 million. Citigroup and Deutsche Bank will act as joint arrangers and joint book-runners for the syndication of the new credit facilities. The new credit facilities are expected to consist of a term loan facility of up to US$350 million, which will be denominated in euros and placed with a subsidiary in Europe, a revolving credit facility of up to US$125 million and a synthetic letter of credit facility of up to US$20 million. The proceeds of the new credit facilities will be used, together with the proceeds of other financing activities, to refinance the company's obligations under its Amended and Restated Credit Agreement dated April 11, 2005. The refinancing of the Amended and Restated Credit Agreement and the placement of a portion of the Company's debt outside the United States are conditions to the obligation of Deutsche Bank Securities Inc. and SPCP Group, LLC, an affiliate of Silver Point Capital, L.P., to backstop the Rights Offering. Additional proceeds will be used to replace existing letters of credit and to provide for working capital and other general corporate purposes, and to pay the fees and expenses associated with the new credit facilities. The company and its officers and directors may be deemed to be participants in the solicitation of proxies from the company's stockholders in connection with the approval of the Rights Offering and certain related proposals. Information about those officers and directors of the company and their ownership of the Company's common stock is set forth in the proxy statement for the special meeting, which was filed with the Securities and Exchange Commission on April 18, 2007. About Hayes Lemmerz International Inc. Hayes Lemmerz International, headquartered in Northville, Michigan, is a global supplier of steel and aluminum automotive and commercial vehicle highway wheels, as well as aluminum components for brakes, powertrain, suspension, and other lightweight structural products. Worldwide revenues approximate US$2.2 billion. The company has 33 facilities worldwide including India, Brazil and Germany, among others. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 7, 2007, Moody's Investors Service lowered HLI Operating company, Inc.'s ratings: * Corporate Family to Caa1 from B3; * first lien senior secured to B1 from Ba3; * second lien term loan to Caa1 from B3. HEINRICH GEHRLICH: Claims Registration Ends July 13 --------------------------------------------------- Creditors of Heinrich Gehrlich GmbH have until July 13 to register their claims with court-appointed insolvency manager Hildegard A. Hoevel. Creditors and other interested parties are encouraged to attend the meeting at 8:50 a.m. on Aug. 7, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt Hall 401 Muellroser Chaussee 55 15236 Frankfurt 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 insolvency manager can be reached at: Hildegard A. Hoevel Raimundstr. 98 60320 Frankfurt/Main Germany Tel: 069/9454846-0 Fax: 069/945484677 The District Court of Frankfurt opened bankruptcy proceedings against Heinrich Gehrlich GmbH on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Heinrich Gehrlich GmbH Untergasse 18 61118 Bad Vilbel Germany IGB IMMOBILIENVERWERTUNG: Claims Registration Ends June 22 ---------------------------------------------------------- Creditors of IGB Immobilienverwertung Verwaltungs-GmbH have until June 22 to register their claims with court-appointed insolvency manager Dr. Martin Heidrich. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on July 25, 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 Hof Meeting Hall 012 Ground Floor Berliner Platz 1 95030 Hof 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 insolvency manager can be reached at: Dr. Martin Heidrich Maximilianstrasse 35 80539 Munich Germany Tel: 089/2060292-70 Fax: 089/2060292-81 The District Court of Hof opened bankruptcy proceedings against IGB Immobilienverwertung Verwaltungs-GmbH on April 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: IGB Immobilienverwertung Verwaltungs-GmbH Larchenweg 15 95189 Koeditz Germany Attn: Gottfried Mack, Manager Ludwigstr. 9 84347 Pfarrkirchen Germany JE TRANSPORTE: Claims Registration Ends May 22 ---------------------------------------------- Creditors of JE Transporte GmbH have until May 22 to register their claims with court-appointed insolvency manager Stefan Bick. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on July 3, 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 Osnabrueck Branch N 302 Kollegienwall 10 49074 Osnabrueck 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 insolvency manager can be reached at: Stefan Bick Neumarkt 8 49074 Osnabrueck Germany Tel: 0541/358300 Fax: 0541/3583025 The District Court of Osnabrueck opened bankruptcy proceedings against JE Transporte GmbH on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: JE Transporte GmbH Attn: Jutta Ebert, Manager Am Heerweg 17 49134 Wallenhorst Germany JENOPTIK AG: Owns 100% of SINAR After Minority Stake Acquisition ---------------------------------------------------------------- The Jenoptik Group has purchased the remaining 49 percent of the shares in SINAR AG, making it a 100 percent owned subsidiary of the technology group's Laser & Optics division. The Board of Directors of SINAR AG approved the share acquisition last week. Through this, the traditional company with 50 employees and headquarters in the Swiss town of Feuerthalen has become an integral part of the digital imaging activities of the Jena-based technology group. SINAR will market professional cameras and camera modules, both its own and those developed by Jenoptik in conjunction with partners, on a worldwide basis. The 49 percent stake was previously held by the Koch founder family. The contracting parties have agreed that the details of the purchase modalities and the purchase price are to remain confidential. The aim of the full takeover is to position SINAR as a premium provider amongst the world's leading suppliers for professional digital photography and to significantly expand the market share in the premium segment for digital medium format cameras. Sinar Hy6-system's volume delivery starts in June Global volume supply of the medium format camera developed by Jenoptik in conjunction with partners is to start in June this year as Sinar Hy6-system. SINAR AG will be responsible for worldwide distribution of the new medium format camera, which was awarded top marks on its initial launch at Photokina 2006 in Cologne. The HY6 received the Photokina Star 2006 as the most outstanding new product presentation. It is currently the only state-of-the art 6X6 medium format camera and has already been prepared for future high-resolution sensor formats. The Sinar Hy6 allows for both digital and analogue photos as well as free choice of the formats 6X6 and 4.5X6. The HY6 has been designed as an open system and allows for the use of digital backs of various manufacturers. Wolfgang Keller new SINAR AG CEO since April The driving force behind SINAR and its integration into the Jenoptik Group since April 1 this year has been Wolfgang Keller who took over the management of the business from Alain Wacker as Chief Executive Officer. Wolfgang Keller's main tasks in his new role, in addition to the operational business, will be the further integration of SINAR AG into the activities of the Jenoptik Group in the area of digital imaging. Before joining SINAR the 48 year-old qualified engineer was responsible for the operational business of Leica Camera AG, Solms as Chief Operating Officer. His career path has included periods, amongst others, as part of the management of Schleicher Electronic GmbH & Co. KG, Berlin as well as on the Management Board of BERU Electronics GmbH, a BERU AG company. About Jenoptik Headquartered in Jena, Germany, Jenoptik AG -- http://www.jenoptik.com/cps/rde/xchg/jenoptik_en/-- produces and markets components, systems and facilities for the medical, electronics, telecommunications and semiconductor manufacturing industries. The Company manufactures clean room for electronics producers, diode lasers, infrared cameras and high-resolution lenses. * * * In a TCR-Europe report on April 4, Moody's Investors Service assigned these Probability-of-Default and Loss-Given-Default rating methodology for Jenoptik AG: * Issuer: Jenoptik AG Old POD New POD LGD Projected Debt Issue Rating Rating Rating LGD ---------- ------- ------- ------ --------- 7.875% Senior Unsecured Regular Bond/Debenture Due 2010 B1 Ba3 LGD3 39% As reported in the TCR-Europe on Nov. 22, 2006, Fitch Ratings changed German industrial-technology group Jenoptik AG's Outlook to Positive from Stable. At the same time, the agency affirmed the group's Issuer Default rating and Short-term rating at B. Fitch upgraded Jenoptik's senior unsecured rating to B+ from B and its Recovery rating to RR3 from RR4. In July 2006, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Germany-based engineering group Jenoptik AG to 'B+' from 'B', following the sale of the facility-engineering division M+W Zander Holding AG. S&P said the outlook is stable. At the same time, the rating on Jenoptik's EUR150 million senior secured bonds was raised to 'B+' from 'B', and the rating on the EUR62.1 million senior unsecured convertible notes to 'B-' from 'CCC+'. LAMP BUERO-SYSTEME: Claims Registration Ends June 7 --------------------------------------------------- Creditors of Lamp buero-systeme GmbH have until June 7 to register their claims with court-appointed insolvency manager Leonhard Wehlage. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on July 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 Neumuenster Area B 031 Law Courts Boostedter Strasse 26 Neumuenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Leonhard Wehlage Saseler Chaussee 38 22391 Hamburg Germany The District Court of Neumuenster opened bankruptcy proceedings against Lamp buero-systeme GmbH on April 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lamp buero-systeme GmbH Attn: Ruediger Lamp, Manager Moehlenkamp 34 24582 Bordesholm Germany NRG ENERGY: Inks Deal with TEPCO to Expand South Texas Project -------------------------------------------------------------- NRG Energy, Inc., through its agent, South Texas Project Nuclear Operating Company, has signed an agreement with The Tokyo Electric Power Company, Inc., or TEPCO to provide TEPCO's expertise and experience to support STP's planned two-unit expansion. TEPCO owns and operates two Advanced Boiling Water Reactor -- ABWR -- nuclear units in Japan and NRG has proposed building two ABWR units at the STP site to bring an additional 2,700 megawatts of clean nuclear power to Texas. "President Bush and Prime Minister Abe of Japan took an auspicious step today, underscoring the importance of expanding zero-emission nuclear power through the Joint Nuclear Energy Action Plan. We are proud of our agreement with TEPCO that strongly aligns with the principles of the Plan announced earlier this week," said David Crane, NRG President and Chief Executive Officer. "Technical cooperation within the business sector will be critical to renewed nuclear development in the United States. Combining STP's operational excellence with the tremendous experience TEPCO has in building and operating ABWR nuclear plants will make an unbeatable team." The NRG/TEPCO agreement calls for TEPCO to consult on the design, construction, operation and maintenance of the new ABWR units at STP, and to provide their expertise and experience in developing the application of a combined construction and operation license that NRG intends to submit to the Nuclear Regulatory Commission during the second half of this year. The General Electric Company's ABWR design has been certified by the U.S. Nuclear Regulatory Commission. "TEPCO will be an invaluable partner in ensuring STP units 3 and 4 come online on schedule and on budget to help meet Texas' growing energy needs through nuclear power," said Steve Winn, Executive Vice President, Strategy, and Environmental and New Business. "Nuclear power has shown its ability to produce much needed power reliably and safely and without adding greenhouse gases or other emissions into our atmosphere. We look forward to working with TEPCO to develop this proven technology that will power Texas' economy in an economical and environmentally friendly manner." Tokyo Electric TEPCO is the largest electric power company in Japan and one of the largest investor owned electric utilities in the world. TEPCO supplies electricity to meet the increasingly diversified and sophisticated demands of its over 27.7 million customers in the 39,500 square-kilometer service area that includes metropolitan Tokyo, the political, economic, and cultural center of Japan, and eight prefectures surrounding Tokyo. TEPCO has diversified major energy sources ranging from hydroelectric, oil, and liquefied natural gas to nuclear. South Texas Project STP supplies power to customers in Houston, Austin, San Antonio, Corpus Christi and surrounding areas. The plant is managed by the STP Nuclear Operating Company and is owned by NRG Texas, CPS Energy and Austin Energy. STP's twin reactors produce nearly 2,600 megawatts of electricity, enough to power approximately two million homes. For the last three years, the South Texas Project nuclear power plant has led the U.S. in electricity production by two-reactor facilities. STP unit 2 led all 103 reactors nationwide in production in 2006 and was the third highest of the 442 reactors worldwide. STP unit 1, which conducted a routine refueling and maintenance outage in 2006, ranked sixth in production in the country and seventeenth globally. About NRG Energy Headquartered in Princeton, New Jersey, NRG Energy Inc. (NYSE:NRG) owns and operates power generating facilities, primarily in Texas and the northeast, south central and western regions of the United States. NRG also owns generating facilities in Australia, Brazil, and Germany. * * * As reported in the Troubled Company Reporter on Nov. 14, 2006, Fitch Ratings assigned a rating of 'B+/RR3' on NRG Energy's issuance of US$1.1 billion senior notes due 2011. This issue will rank equally with NRG's other senior unsecured obligations. Fitch said the rating outlook is stable. PERFECTA STEUERBERATUNGSGESELLSCHAFT: Claims Filing Ends June 19 ---------------------------------------------------------------- Creditors of PERFECTA Steuerberatungsgesellschaft mbH have until June 19 to register their claims with court-appointed insolvency manager Joerg Riedemann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 17, 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 Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle 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 insolvency manager can be reached at: Joerg Riedemann Muehlweg 47 D 06114 Halle Germany Tel: 0345/293900 Fax: 0345/2939029 The District Court of Halle-Saalkreis opened bankruptcy proceedings against PERFECTA Steuerberatungsgesellschaft mbH on April 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PERFECTA Steuerberatungsgesellschaft mbH Attn: Horst Linke, Manager Oeltzschner Strasse 1 b 06217 Merseburg Germany PERI GMBH: Moody's Assigns Loss-Given-Default Rating ---------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Transportation Services, Services, Homebuilding and Building Products, Chemical, Retail and Apparel and Restaurants, Wholesale Distribution, and Other sectors, the rating agency confirmed its Ba2 Corporate Family Rating for PERI GmbH. Moody's also assigned a Ba2 Probability-of-Default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- ------ Sr. Unsec. Regular Bond/ Debenture Due 2009 Ba2 LGD4 53% 5.625% Sr. Unsec. Regular Bond/Debenture Due 2011 Ba2 LGD4 53% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Weissenhorn, Germany, PERI GmbH -- http://www.peri.de/-- is the biggest provider and manufacturer of formwork and scaffolding systems in the world. PETERSMEIER GMBH: Creditors Must Register Claims by May 23 ---------------------------------------------------------- Creditors of Petersmeier GmbH have until May 23 to register their claims with court-appointed insolvency manager Ernst Wiesner. Creditors and other interested parties are encouraged to attend the meeting at 8:45 a.m. on June 14, 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 Hagen Hall 283 Karlsruhe Second Floor Main Building Heinitzstrasse 42 58097 Hagen 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 insolvency manager can be reached at: Ernst Wiesner Kirchender Dorfweg 14 58313 Herdecke Germany The District Court of Hagen opened bankruptcy proceedings against Petersmeier GmbH on April 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Petersmeier GmbH Attn: Friedrich Petersmeier, Manager Osemundstr. 2 58809 Neuenrade Germany PUTBUSER BAUGESELLSCHAFT: Creditors Must File Claims by May 25 -------------------------------------------------------------- Creditors of Putbuser Baugesellschaft mbH have until May 25 to register their claims with court-appointed insolvency manager Joerg Sievers. Creditors and other interested parties are encouraged to attend the meeting at 9:55 a.m. on June 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stralsund Hall A 421 Fourth Floor House A Frankendamm 17 Stralsund 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 insolvency manager can be reached at: Joerg Sievers Robert-Blum-Str. 1 17489 Greifswald Germany The District Court of Stralsund opened bankruptcy proceedings against Putbuser Baugesellschaft mbH on April 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Putbuser Baugesellschaft mbH Attn: Wolfgang M�ller, Manager Circus 12 18581 Putbus Germany R-ANTRIEBSTECHNIK GMBH: Claims Registration Period Ends June 8 -------------------------------------------------------------- Creditors of R-Antriebstechnik GmbH have until June 8 to register their claims with court-appointed insolvency manager Alfred Koerbitz. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 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 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 insolvency manager can be reached at: Alfred Koerbitz Promenadeplatz 9 80333 Munich Germany Tel: 089/24216730 Telefax: 089/24216745 The District Court of Munich opened bankruptcy proceedings against R-Antriebstechnik GmbH on April 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: R-Antriebstechnik GmbH Attn: Ernst Reinwein, Manager Riesengebirgstr. 1 80993 Munich Germany SAKUFA PUTZGESCHAFT: Claims Registration Period Ends July 9 ----------------------------------------------------------- Creditors of SaKuFa Putzgeschaft GmbH. I.L. have until July 9 to register their claims with court-appointed insolvency manager Steffen Koch. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on July 30, 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 Hildesheim Hall 124 Main Building Kaiserstrasse 60 31134 Hildesheim 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 insolvency manager can be reached at: Dr. Steffen Koch Sophienstr. 1 30159 Hannover Tel: 0511/3539910 Fax: 0511/35399110 E-mail: www.hww-kanzlei.de The District Court of Hildesheim opened bankruptcy proceedings against SaKuFa Putzgeschaft GmbH. I.L. on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SaKuFa Putzgeschaft GmbH. I.L. Attn: Stephan Kunze, Liquidator St. Hedwig-Str. 2 31135 Hildesheim Germany TANNENHOF GASTRONOMIEBETRIEBE: Claims Registration Ends May 26 -------------------------------------------------------------- Creditors of Tannenhof Gastronomiebetriebe GmbH & Co. Betriebs KG have until May 26 to register their claims with court- appointed insolvency manager Thomas Bueckmann. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 26, 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 Duisburg Hall C407 Fourth Floor Kardinal-Galen-Strasse 124-132 47058 Duisburg 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 insolvency manager can be reached at: Thomas Bueckmann Kohlenkamp 39 45468 Muelheim Germany The District Court of Duisburg opened bankruptcy proceedings against Tannenhof Gastronomiebetriebe GmbH & Co. Betriebs KG on April 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tannenhof Gastronomiebetriebe GmbH & Co. Betriebs KG Broicher Waldweg 180 45479 Muelheim Germany Attn: Rainer Orbah, Manager Langenfeldstr. 17 45480 Muelheim Germany TPR INSTALLATIONSTECHNIK: Claims Registration Ends June 15 ---------------------------------------------------------- Creditors of TPR Installationstechnik GmbH have until June 15 to register their claims with court-appointed insolvency manager Goerge Scheid. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 17, 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 Gera Rudolf-Diener-Str. 1 Zimmer 317 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 insolvency manager can be reached at: Goerge Scheid Rudolf-Diener-Str. 9 07545 Gera Germany The District Court of Gera opened bankruptcy proceedings against TPR Installationstechnik GmbH on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TPR Installationstechnik GmbH Attn: Paul Riedesel, Manager Braustr. 2 07551 Gera Germany WINDPARK SEFFERWEICH: Creditors Meeting Slated for May 24 --------------------------------------------------------- The court-appointed insolvency manager for Windpark Sefferweich- Sued W.A.T.T. GmbH, Joerg A. Wunderlich, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 8:30 a.m. on May 24. The meeting of creditors and other interested parties will be held at: The District Court of Trier Hall 56 Justizstrasse 2,4,6 54290 Trier Germany The Court will also verify the claims set out in the insolvency manager's report at 2:30 p.m. on June 28 at the same venue. Creditors have until May 31 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Joerg A. Wunderlich Bahnhofsplatz 8 54292 Trier Germany Tel: 0651/146930 Fax: 0651/1469320. The District Court of Trier opened bankruptcy proceedings against Windpark Sefferweich-Sued W.A.T.T. GmbH on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Windpark Sefferweich-Sued W.A.T.T. GmbH Attn: Jorg Temme, Manager Kirchenbungert 2 54292 Trier Germany WOLFGANG HARICH: Creditors Meeting Slated for June 6 ---------------------------------------------------- The court-appointed insolvency manager for Wolfgang Harich Verwaltungsgesellschaft mbH, July 25, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:55 a.m. on June 6. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 10:15 a.m. on Sept. 19 at the same venue. Creditors have until July 25 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Hartwig Albers Lutzowstr. 100 10785 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Wolfgang Harich Verwaltungsgesellschaft mbH on April 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wolfgang Harich Verwaltungsgesellschaft mbH Plan 30 15831 Grossbeeren Germany ============= I R E L A N D ============= CENTRAL PARKING: Moody's Puts (P)Ba2 Rating on US$355MM Facility ---------------------------------------------------------------- Moody's Investors Service assigned provisional ratings to KCPC Acquisition, Inc. in connection with the pending leveraged buyout of Central Parking Corporation. Moody's assigned a provisional (P)B2 Corporate Family Rating, a (P)Ba2 rating to the proposed US$355 million first lien credit facility and a P(B2) rating to the proposed US$50 million second lien term loan facility. The US$355 million first lien credit facility consists of: (i) a US$225 million term loan facility; (ii) a US$75 million revolving credit facility and; (iii) a US$55 million synthetic letter of credit facility. The provisional ratings will be converted to definitive ratings upon the closing of the transaction. The rating outlook for KCPC is stable. On February 22, Moody's placed the Ba3 Corporate Family Rating, Ba3 Probability of Default Rating and B2 rating on the convertible trust issued preferred securities of CPC on review for possible downgrade following the company's announcement that it entered into a definitive agreement to be acquired by a consortium of private investment funds. Pursuant to the merger agreement, KCPC, a newly formed holding company owned by affiliates of Kohlberg & Co. LLC, Lubert-Adler Partners, LP and Chrysalis Capital Partners, Inc., will merge with and into CPC. Under the terms of the merger agreement, CPC's common equity shareholders will receive US$22.53 per share in cash or about US$745 million. The merger is subject to the approval of CPC's shareholders and customary closing conditions. The chairman of the company, his family and related entities, who collectively own 47% of the common stock of CPC, have entered into voting agreements to vote in favor of the merger agreement unless the merger agreement is terminated or materially amended. CPC may terminate the merger agreement under certain circumstances, including if its board of directors determines in good faith that it has received a superior proposal, and otherwise complies with certain terms of the merger agreement. In connection with such termination, the company must pay a fee of US$22.4 million to the equity sponsors. If the merger agreement is terminated because the equity sponsors fail to obtain sufficient financing, then a US$30 million payment will be due to the company. The merger agreement provides that at the effective time of the merger, each outstanding share of the Trust Issued Preferred Securities issued by Central Parking Finance Trust, a statutory business trust and wholly-owned subsidiary of CPC, shall remain outstanding and shall thereafter be convertible at the election of the holder of the TIPS into an amount equal to the product of the common stock merger consideration times the number of shares of company common stock into which the TIPS could have been converted at the effective time. If substantially all of the TIPS elect to convert and receive cash consideration in connection with the buyout, then Moody's will withdraw the ratings on the TIPS. If a material amount of TIPS remain outstanding after the buyout, then Moody's expects to lower the TIPS rating to Caa1. Upon closing of the transaction, Moody's expects to lower the Corporate Family Rating and Probability of Default Rating of CPC to B2 and then withdraw such ratings. Moody's affirmed the Baa3 rating on the existing US$299 million senior secured credit facility of CPC since the merger agreement provides that the credit facility will be repaid in connection with the closing of the buyout. Moody's expects to withdraw the rating on the secured credit facility of CPC upon closing of the transaction. In connection with the merger, CPC expects to form one or more special purpose entities and contribute to Propco the majority of its owned parking facilities and the improvements thereon. Propco will issue approximately US$417.8 million in aggregate principal amount of first mortgage and mezzanine financing (not rated by Moody's). Propco will not be a guarantor under the new secured credit facilities. After the buyout, CPC and its guarantor subsidiaries will derive revenues from its portfolio of leased and managed parking facilities, a limited number of owned properties, and a management agreement with Propco. The proceeds from the real estate financing, US$275 million of first and second lien term loans, a US$210 million cash equity contribution, and existing cash and revolver borrowings will be used to fund the equity component of the buyout, retire existing debt and pay related fees and expenses. The (P)B2 Corporate Family Rating reflects a more than four-fold increase in consolidated debt levels (excluding Moody's standard adjustments) as a result of the buyout. On an Opco only basis, debt levels will increase from about US$170 million (including the full amount of the TIPS) to about US$284 million, with the majority of the company's owned parking facilities transferred to Propco. Although constrained by modestly weak credit metrics for the B2 rating category and an uneven track record of financial performance, the ratings are supported by a leading market position, improving profitability over the last year and the expectation for growing demand for outsourced parking services. Moody's assigned these ratings to KCPC: * US$75 million 6 year first lien revolving credit facility, (P)Ba2 (LGD 2, 19%) * US$225 million 7 year first lien term loan facility, (P)Ba2 (LGD 2, 19%) * US$55 million 7 year first lien synthetic letter of credit facility, (P)Ba2 (LGD 2, 19%) * US$50 million 7.5 year second lien term loan facility, (P)B2 (LGD 4, 51%) * Corporate family rating, (P)B2 * Probability of default rating, B2 These ratings of Central Parking Corporation remain on review for downgrade: * US$78 million 5.25% convertible trust issued preferred securities (issued by the Central Parking Finance Trust), rated B2 (LGD 6, 93%) * Corporate family rating, Ba3 * Probability of default rating, Ba3 These ratings of Central Parking were affirmed: * US$225 million senior secured revolving credit facility due 2008, rated Baa3 (LGD 2, 15%) * US$74 million senior secured term loan facility due 2010, rated Baa3 (LGD 2, 15%) Central Parking Corporation, headquartered in Nashville, Tennessee, is a leading provider of parking and transportation- related services. As of December 31, 2006, the Company operated more than 3,000 parking facilities containing approximately 1.5 million spaces at locations in 37 states, the District of Columbia, Canada, Puerto Rico, Chile, Colombia, Peru, the United Kingdom, the Republic of Ireland, Spain, Greece, Italy and Switzerland. Revenues (including reimbursed expenses related to management contracts) for the twelve month period ending Dec. 31, 2006 were about US$1.1 billion. GLASTONBURY FINANCE: Fitch Rates Class E & F Notes at BB- --------------------------------------------------------- Fitch assigned final ratings to Glastonbury Finance 2007-1 P.L.C.'s issue of GBP354 million floating-rate notes due 2047: -- GBP4 million Class X floating rate instalment notes due 2015: 'AAA' -- GBP205 million Class A-1 revolving dual-currency floating rate notes due 2047: 'AAA' -- GBP33 million Class A-2 floating rate notes due 2047: 'AAA' -- GBP32 million Class B floating rate deferrable notes due 2047: 'AA' -- GBP31 million Class C floating rate deferrable notes due 2047: 'A' -- GBP16 million Class D floating rate deferrable notes due 2047: 'BBB' -- GBP10 million Class E floating rate deferrable notes due 2047: 'BB' -- GBP4 million Class F floating rate deferrable notes due 2047: 'BB-' The transaction is a managed cash arbitrage securitization of commercial mortgage-backed securities. The structure incorporates a Class A-1 variable funding note, which may be drawn in either GBP or EUR. The remaining notes are solely denominated in GBP. The portfolio was purchased at closing from the issuance of the notes. The ratings of the Class B, C, D, E and F notes address the ultimate payment of interest and principal at maturity. For the Class X, A-1 and A-2 notes, for which a deferral of interest constitutes an event of default, the ratings also address the timely payment of interest and ultimate payment of principal. The ratings take into account the quality and diversity of the portfolio of assets, which are selected by the collateral manager, Eurohypo Asset Management Limited, subject to the guidelines outlined in the collateral management agreement. The ratings are also based on the credit enhancement provided to the various Classes of notes, which consists of the subordinated notes, structural protection covenants and excess spread. Credit enhancement for the Class A-1 notes in the form of collateralized subordination totals 41.4%, and is provided by the Class A-2 notes, Class B notes, Class C notes, Class D notes, Class E notes, Class F notes and the subordinated notes. Certain upfront expenses will be amortized over the first eight years of the transaction through the mechanism of the Class X notes. A portfolio proposed by the manager was analyzed using Fitch's CDO rating criteria. Portfolio default levels and the applied recovery rate for each target rating were derived from Fitch's Default Vector Model. Moreover, the manager will run the Fitch Default Vector Test prior to each purchase to address risks associated with reinvestment. This test looks to the current credit quality of the portfolio plus un-invested proceeds and implied excess spread to cover the liabilities of the issuer at that point in time. The implied excess spread is the interest diverted through the coverage tests of the structure to pay principal under the various stress scenarios that make up Fitch's rating criteria. Glastonbury Finance 2007-1 P.L.C. is a company with limited liability, incorporated under the laws of Ireland. SCOTTISH RE: Provides Update on MassMutual & Cerberus Deal ---------------------------------------------------------- Scottish Re Group Limited has provided an update with respect to the closing of its proposed transaction with MassMutual Capital Partners LLC and affiliates of Cerberus Capital Management, L.P., whereby each will invest US$300 million into the company, resulting in a total new equity investment of US$600 million. MassMutual Capital and Cerberus will have a controlling voting equity interest in the company after the closing. Scottish Re has received notice that the Delaware Department of Insurance approval hearing for the transaction is scheduled for April 26, 2007. Upon receiving final regulatory approval from the Delaware Department of Insurance, as well as the NASD and South Carolina Department of Insurance, all regulatory approvals needed to close the transaction will have been received. Paul Goldean, Scottish Re's chief executive officer, noted, "The regulatory approval process is proceeding as planned and we look forward to closing the transaction during the first part of May 2007." About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities * * * In a TCR-Europe report on March 7, that Standard & Poor's Ratings Services said that its ratings on Scottish Re Group Ltd. (B/Watch Dev/--) and affiliated operating companies remain on CreditWatch with developing implications following the announcement by the company that the shareholders have approved the transaction by which MassMutual Capital Partners LLC and affiliates of Cerberus Capital Management L.P. would provide an equity infusion of US$600 million in a transaction to close in the second quarter of 2007. Moody's Investors Service continues to review the ratings of Scottish Re Group Ltd. with direction uncertain following the announcement by the company that it has entered into an agreement to sell a majority stake to MassMutual Capital Partners LLC, a member of the MassMutual Financial Group and Cerberus Capital Management, L.P., a private investment firm. Ratings under review include Scottish Re Group Limited's senior unsecured debt, which is rated at Ba3 and preferred stock rated at B2. Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain on Rating Watch Negative following the announcement that SCT has entered into an agreement, which will result in a new equity investment into the company of US$600 million. SCT's ratings were placed on Rating Watch Negative on July 31, due to concerns regarding the company's ability to repay US$115 million of senior convertible notes that are expected to be put to the company on Dec. 6. Ratings on Rating Watch Negative include the company's BB issuer default rating and the BB- rating on its 4.5% USUS$115 million senior convertible notes. A.M. Best Co. has downgraded the Financial Strength Rating to B from B+ and the issuer credit ratings to "bb+" from "bbb-" of the primary operating insurance subsidiaries of Scottish Re Group Limited. A.M. Best has also downgraded the ICR of Scottish Re to "b" from "bb-" and all of Scottish Re's debt ratings. All ratings remain under review with negative implications. TRANSCREDIT FINANCE: Moody's Puts Ba3 Rating to Notes ----------------------------------------------------- Moody's Investors Service has assigned a Ba3 long-term foreign currency debt rating to the Loan Participation Notes to be issued on a limited-recourse basis by TransCredit Finance Plc, a special purpose vehicle incorporated under the laws of Ireland, for the sole purpose of financing a senior unsecured loan to TransCreditBank. The rating is on review for possible upgrade. Moody's notes that the rating for the Notes is based on the fundamental credit quality of TCB as the ultimate obligor under the transaction. According to Moody's, the underlying loan agreement contains a set of covenants such as negative pledge, limitation on mergers and disposals as well as on transactions with affiliates. One of the financial covenants requires the bank to maintain a minimum consolidated BIS Capital Adequacy Ratio of 10%. Moody's cautions that the transaction also has an embedded rating trigger whereby the LPNs may become payable in the event that TCB's rating is downgraded following a change of control. Moody's notes that the likelihood of any of the above covenants being breached and the rating being triggered is relatively low. Headquartered in Moscow, Russia, TransCreditBank reported total consolidated assets of RUR83,675 million (US$3,177.6 million) million and total shareholder equity of RUR6,167.4 million (US$234.2 million) in accordance with IFRS as of Dec. 31, 2006. ========= I T A L Y ========= ALITALIA SPA: Names Berardino Libonati as Coordinating Unit Head ---------------------------------------------------------------- Berardino Libonati, chief executive of Alitalia S.p.A., has appointed Giancarlo Schisano as head of Coordination of Corporate and Administrative Activities, Finance and Control. Gabriele Spazzadeschi, former head of the division, resigned from his responsibility for family reasons. Mr. Spazzadeschi will continue to provide his services to the Company by supporting the Coordinating activity entrusted to Mr. Schisano. 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. TAURUS CMBS: S&P Affirms BB Ratings on Class G Notes; Ends Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on the class C, D, E, and F notes issued by Taurus CMBS No. 2 S.r.l. and removed them from CreditWatch with positive implications, where they had been placed on Jan. 30, 2007. At the same time, the ratings on the class A, X, and B notes were affirmed, while the ratings on the class G notes were removed from CreditWatch with positive implications and affirmed. Today's rating actions follow a review of the transaction based on data provided by the servicer, Capmark Services (Ireland) Ltd., up to and including April 30, 2007. The transaction closed in December 2005 and was originally backed by four loans secured on 82 commercial properties in Italy. It was the second European securitization launched by Merrill Lynch International under its Taurus mortgage conduit platform. Of the original loan pool, three of the loans have prepaid: the Bentra, Little Domus, and Leather loans. There have also been partial prepayments in the Berenice loan following asset sales. There are currently 51 properties remaining in the portfolio. The EUR201.95 million proceeds of the loan prepayments have been deposited in an issuer account and will be applied to the notes at the July 2007 interest payment date. In Italian securitizations, repayments within the first 18 months are subject to a 20% withholding tax and it was decided that it would be financially advantageous to deposit the proceeds until the expiration of the withholding tax period. As a consequence of depositing the proceeds into an issuer account rated 'A-1+', the transaction is now partly cash- collateralized. Ratings List Taurus CMBS No. 2 S.r.l EUR403.9 Million Commercial Mortgage-Backed Floating-Rate Notes Series 2 Class To From Ratings Removed From CreditWatch With Positive Implications And Raised C AAA AA/Watch Pos D AA+ A+/Watch Pos E A+ A-/Watch Pos F BBB+ BBB/Watch Pos Ratings Removed From CreditWatch With Positive Implications And Affirmed G BB BB/Watch Pos Ratings Affirmed A AAA X AAA B AAA =================== K A Z A K H S T A N =================== ENERGOTECHSERVICE 2030: Creditors Must File Claims by May 30 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of South Kazakhstan Region has declared LLP Energotechservice 2030 insolvent. Creditors have until May 30 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Region Madelhanov Str. 28 Lenger Tolebiysky District South Kazakhstan Kazakshtan Tel: 8 (247) 6-23-30 KAISAR LLP: Proof of Claim Deadline Slated for May 30 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Construction Firm Kaisar insolvent. Creditors have until May 30 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Nurmahanov Str. 31 Micro District Taugul-3 Almaty Kazahstan Tel: 8 (3272) 56-97-68 KAZROSSENERGO LLP: Claims Registration Ends May 30 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Kazrossenergo insolvent. Creditors have until May 30 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktube Kazakhstan Tel: 8 (3132) 21-30-32 OIL-BUSINESS LLP: Claims Filing Period Ends May 30 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Oil-Business insolvent. Creditors have until May 30 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Nurmahanov Str. 31 Micro District Taugul-3 Almaty Kazahstan Tel: 8 (3272) 56-97-68 PROMETEY CJSC: Claims Filing Period Ends June 12 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Pavlodar has declared CJSC Prometey insolvent. Creditors have until June 12 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Kataev Str. 24-8 Pavlodar Kazakhstan Tel: 8 701 228 47-28 RATHAN AIR-CARGO: Creditors Must File Claims by May 30 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Air Company Rathan Air-Cargo insolvent. Creditors have until May 30 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Office Four Kassin Str. 2/1 Mamyr Almaty 050052 Kazakhstan Tel: 8 (3272) 93-19-22 8 777 559 68-31 8 777 258 50-41 TEMIRBANK JSC: S&P Puts B+ Ratings on US$1.2 Billion MTN Program ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+/B' ratings to the US$1.2 billion MTN program to be issued by Kazakhstan- based Temirbank JSC or Temir Capital B.V., a Netherlands-based special purpose vehicle. Under the program, senior unsecured notes issued by Temir Capital will be unconditionally and irrevocably guaranteed by Temirbank. The ratings on Temirbank reflect its ambitious strategy, short track record, and its small size, which exposes it to high funding risk, and to a lesser extent, credit concentration risks. The ratings also reflect the improving, but still vulnerable, domestic economic environment of the Republic of Kazakhstan to which the bank is exposed. These negative factors are somewhat mitigated by the bank's strengthening franchise, good business prospects, and its supportive shareholder. Temirbank's strategic importance to its parent, Bank TuranAlem, is a positive rating factor. Although the bank received several capital increases in the past, these have only been enough to maintain capitalization at its current marginal level. In the context of the Kazakh banking sector, Temirbank is a midsize financial institution. Although it ranked as the seventh-largest bank in Kazakhstan by assets at end of March, Temirbank holds a relatively small market share of about 2% of the total banking assets. Since mid-2005, the bank has been focusing on retail banking, and is expected to form the domestic-retail banking arm of the BTA group. VESTA-IMPEX LLP: Creditors' Claims Due June 2 --------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Vesta-Impex insolvent. Creditors have until June 2 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Timiryazev Str. 61-2 Almaty Kazakhstan Tel: 8 (3272) 75-67-84 =================== K Y R G Y Z S T A N =================== REAL LLC: Creditors Must File Claims by June 20 ----------------------------------------------- LLC Real (INN 00509199610157) has declared insolvency. Creditors have until June 20 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 24-13-15. ================= L I T H U A N I A ================= BANKAS SNORAS: Fitch Rates Upcoming Bond Issue at BB- ----------------------------------------------------- Fitch Ratings assigned Bankas Snoras's upcoming eurobond issue an expected Long-term 'BB-' rating. Bankas Snoras is rated Issuer Default 'BB-', Short-term 'B', Individual 'D' and Support '4'. The Outlook is Negative. The final rating is contingent upon the receipt of final documentation conforming materially to information already received. The unsubordinated and unsecured notes are to rank equally among themselves and at least equally with all other present and future unsecured and unsubordinated obligations of Bankas Snoras, save for such obligations as may be preferred by law. The Negative Outlook on Bankas Snoras' Issuer Default Rating reflects the bank's declining capitalization trend. While capitalization has increased following a rights issue in February 2007, Fitch will monitor how it is managed on an ongoing basis. =================== L U X E M B O U R G =================== DOV PHARMACEUTICAL: PwC Raises Going Concern Doubt -------------------------------------------------- PricewaterhouseCoopers LLP in Florham Park, N.J., expressed substantial doubt about DOV Pharmaceutical Inc.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. DOV Pharmaceutical Inc. reported net income of US$20 million on revenue of US$22.2 million for the fourth quarter of 2006, compared with a net loss of US$16.9 million on revenue of US$1.4 million for the comparable period last year. For the year ended Dec. 31, 2006, the company reported a net loss of US$38.4 million on revenue of US$25.9 million, compared with a net loss of US$53 million on revenue of US$8.6 million for the comparable period last year. At Dec. 31, 2006, cash and cash equivalents and marketable securities totaled US$42.3 million compared to US$97.6 million at Dec. 31, 2005. Revenue in the fourth quarter of 2006 and for the year ended Dec. 31, 2006, increased US$20.8 million and US$17.3 million, respectively, from the comparable periods last year. In 2006 and 2005, DOV's revenue was comprised primarily of amortization of the US$35 million fee it received on the signing of the license, research and development agreement with Merck, entered into in August 2004 and amended in August 2005. As this license was terminated in December 2006, all remaining deferred revenue was recognized in the fourth quarter of 2006. In addition, in 2005, the company recorded US$2 million in revenue for the achievement of a milestone under its existing license agreement with Neurocrine Biosciences Inc. Operating Expenses include research and development expense and general and administrative expense. Operating expenses in the fourth quarter of 2006 decreased US$10.8 million and increased US$248,000 for the year ended Dec. 31, 2006, from the comparable periods last year. Research and development expense in the fourth quarter of 2006 and for the year ended Dec. 31, 2006, decreased US$11.2 million and US$11.2 million, respectively, from the comparable periods last year. For the full year 2006, the decrease in research and development expense is primarily associated with decreased external development costs of US$14.8 million for DOV's product candidates and office and office-related expenses of US$476,000, offset by an increase in payroll and payroll-related expenses of US$3.5 million, rent expense of US$409,000 and professional fees of US$154,000. General and administrative expense for the fourth quarter of 2006 increased US$490,000 and for the year ended Dec. 31, 2006, increased US$11.4 million, from the comparable periods last year. The increase for the full year 2006 is primarily related to an increase of US$7.5 million in payroll and payroll related expenses, US$2 million in rent related to the Somerset facility, US$827,000 in office and related expenses, US$261,000 for professional fees, US$172,000 in market research expenses and US$800,000 in broker fees and expenses in relation to the sale of the company's state operating losses, offset by a decrease in travel and entertainment expenses of US$179,000. Interest Expense of US$4 million for the year ended Dec. 31, 2006, includes non-cash amortization of US$2.1 million of deferred issuance costs as well as contractual interest expense of 2.5% on the company's convertible subordinated debentures. Net debt conversion and other expense of US$5.6 million for the year ended Dec. 31, 2006, includes a US$5.7 million non-cash charge related to the additional shares issued to induce the exchange of an aggregate of US$10 million in original principal amount of the company's outstanding convertible debentures for 3,445,000 shares of its common stock in the third quarter of 2006. Income Tax Benefit of US$5.7 million and US$273,000 for the years ended Dec. 31, 2006, and 2005, respectively, relates to proceeds from the sale of most of the company's previous years' state net operating losses as part of the New Jersey Economic Development Authority technology business tax certificate program. At Dec. 31, 2006, the company's balance sheet showed US$50.4 million in total assets and $80 million in total liabilities, resulting in a US$29.6 million total stockholders' deficit. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1cc5 About DOV Pharmaceutical Somerset, New Jersey-based DOV Pharmaceutical Inc. (PS: DOVP.PK) -- http://www.dovpharm.com/-- is a biopharmaceutical company focused on the discovery, acquisition, and development of novel drug candidates for central nervous system disorders. The company's product candidates address some of the largest pharmaceutical markets in the world including depression, pain and insomnia. The company also operates a subsidiary in Luxembourg. MILLICOM INT'L: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and Technology sectors, the rating agency confirmed its Ba3 Corporate Family Rating for Millicom International Cellular S.A. Moody's also assigned a Ba3 probability of default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 10% Sr. Unsec. Regular Bond/Debenture Due 2013 B2 LGD5 85% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Bertrange, Luxembourg, and controlled by Sweden's AB Kinnevik, Millicom International Cellular S.A. -- http://www.millicom.com/-- is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has cellular operations and licenses in 16 countries. The Group's cellular operations have a combined population under license of around 391 million people. The Central America Cluster comprises Millicom's operations in El Salvador, Guatemala and Honduras. The population under license in Central America at December 2005 is 26.4 million. The South America Cluster comprises Millicom's operations in Bolivia and Paraguay. The population under license in South America at December 2005 is 15.2 million. ===================== N E T H E R L A N D S ===================== TEMIR CAPITAL: S&P Puts B+ Ratings on US$1.2 Billion MTN Program ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+/B' ratings to the US$1.2 billion MTN program to be issued by Kazakhstan- based Temirbank JSC or Temir Capital B.V., a Netherlands-based special purpose vehicle. Under the program, senior unsecured notes issued by Temir Capital will be unconditionally and irrevocably guaranteed by Temirbank. The ratings on Temirbank reflect its ambitious strategy, short track record, and its small size, which exposes it to high funding risk, and to a lesser extent, credit concentration risks. The ratings also reflect the improving, but still vulnerable, domestic economic environment of the Republic of Kazakhstan to which the bank is exposed. These negative factors are somewhat mitigated by the bank's strengthening franchise, good business prospects, and its supportive shareholder. Temirbank's strategic importance to its parent, Bank TuranAlem, is a positive rating factor. Although the bank received several capital increases in the past, these have only been enough to maintain capitalization at its current marginal level. In the context of the Kazakh banking sector, Temirbank is a midsize financial institution. Although it ranked as the seventh-largest bank in Kazakhstan by assets at end of March, Temirbank holds a relatively small market share of about 2% of the total banking assets. Since mid-2005, the bank has been focusing on retail banking, and is expected to form the domestic-retail banking arm of the BTA group. VIMPEL-COMMUNICATIONS: Clears Dutch Unit to Repurchase Shares ------------------------------------------------------------- OJSC Vimpel-Communications' Board of Directors has authorized VC ESOP N.V., an indirect wholly owned Dutch subsidiary, to repurchase up to 1,600,000 American Depositary Shares, or ADSs, which is equivalent to up to 400,000 shares of the Company's common stock, par value 0.5 kopecks per share, through Dec. 31, 2008. The number of shares underlying ADSs that may be repurchased equals approximately 0.8% of VimpelCom's common stock currently outstanding. The Company and VC ESOP intend to utilize the repurchased shares for the issuance of stock based compensation awards. VimpelCom intends to establish a systematic purchasing plan under Rule 10b5-1 of the Securities Exchange Act of 1934 to facilitate repurchases of up to 800,000 ADSs, which is equivalent to up to 200,000 shares of the Company's common stock, under the repurchase program. Rule 10b5-1 permits a public company to repurchase its shares at times when it ordinarily would not be in the market because of self-imposed trading blackout periods. Under the Rule 10b5-1 plan, certain specified amounts of ADSs would be purchased on a daily basis provided that specified trading prices are achieved. The Rule 10b5-1 plan would commence on May 1, and expire upon the earliest of Dec. 31, the purchase of all the ADSs covered by the plan, or certain other specified events. Purchases would be made in the open market or through privately negotiated transactions, all in accordance with U.S. and Russian securities law, including the volume, price, timing and other requirements of Rule 10b-18 of the Securities Exchange Act of 1934. VimpelCom also intends to establish a similar purchasing plan in 2008 to facilitate repurchases of up to an additional 800,000 ADSs, which is equivalent to up to 200,000 shares of the Company's common stock, under the repurchase program. The Company also announced that it has amended its Amended and Restated VimpelCom 2000 Stock Option Plan to increase the maximum number of shares available for issuance under the plan from 650,000 to 1,050,000 common shares (equivalent to 4,200,000 ADSs). About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications (NYSE: VIP) -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K- mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * In a TCR-Europe report on April 16, in connection with Moody's Investors Service's implementation of its new Probability-of- Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and Technology sectors, the rating agency confirmed its Ba2 Corporate Family Rating for OJSC Vimpel-Communication. Moody's also assigned a Ba2 Probability-of-Default rating to the company. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ -------- 10% Senior Unsecured Regular Bond/Debenture Due 2009 Ba2 Ba2 LGD4 52% 8.375% Senior Unsecured Regular Bond/Debenture Due 2011 Ba2 Ba2 LGD4 52% 8% Senior Unsecured Regular Bond/Debenture Due 2010 Ba2 Ba2 LGD4 52% 8.25% Senior Unsecured Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD4 52% As reported in the TCR-Europe on Oct. 12, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based mobile telecommunications operator Vimpel-Communications (JSC) to 'BB+' from 'BB', reflecting the company's continuing strong performance. S&P said the outlook is stable. =========== P O L A N D =========== OMNOVA SOLUTIONS: Moody's Rates Proposed US$150MM Sr. Loan at B2 ---------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to OMNOVA Solutions Inc.'s proposed US$150 million guaranteed senior secured term loan due 2014. The term loan proceeds will partially refinance the US$165 million of outstanding senior secured notes due 2010 that OMNOVA recently issued a tender offer for. The rating outlook remains positive. Ratings Summary OMNOVA Solutions Inc. Rating assigned: * US$150mm Gtd Sr Sec Term Loan Facility due 2014 -- B2, LGD3, 48% Ratings affirmed: * Corporate family rating -- B2 * Probability of default rating -- B2 * US$165mm 11.25% Sr Sec Global Notes due 2010 -- B3, LGD4, 64% The ratings reflect the diversity of the company's end-markets and customer base, and leading market shares within its niche markets. OMNOVA's financial performance has been improving over the last two years and its leverage was reduced by the debt reduction that accompanied the divestiture of the GenFlex Building Products business. The proposed refinancing will further strengthen its credit metrics by reducing interest expense. Nevertheless, the company's cash flow has been and is expected to remain modest in 2007, a limiting factor in the rating. In addition, OMNOVA's product line is largely commodity-like and the company is exposed to volatile raw materials, which can materially impact profit margins, and to the US housing market, which has recently weakened. Moody's last rating action on OMNOVA's ratings was to move the outlook to positive in November 2006. The positive outlook reflects Moody's expectation that the firm will continue to improve its credit metrics, achieve top line growth and benefit from moderating prices for its key raw materials and improving EBITDA margins. OMNOVA's ratings would likely be moved up if industry conditions were supportive of an upgrade and OMNOVA was able to sustain recent margins, reduce debt, make progress in managing working capital, and generate free cash flow greater than US$20 million per year. OMNOVA manufactures decorative and functional surfaces, emulsion polymers and specialty chemicals. The company operates in two business segments, Decorative Products (approximately 37% of 2006 consolidated sales, excluding the divested building products business), which makes commercial wallcoverings, coated fabrics and decorative laminates, and Performance Chemicals, which offerings include binders, coatings and adhesives for the paper and carpet industries. OMNOVA is the second- largest producer of styrene butadiene latex in North America. Headquartered in Fairlawn, Ohio, OMNOVA was formed when it was spun-off from GenCorp in 1999. Revenues from continuing operations were US$694 million for the LTM ended February 28, 2007. =========== R U S S I A =========== AGRO PROJECT-ZHELEZNOGORSK: Claims Filing Period Ends June 14 ------------------------------------------------------------- Creditors of OJSC Agro Project-Zheleznogorsk have until June 14 to submit proofs of claim to: A. Zabornyj Insolvency Manager Stepana Razina Str. 96 305004 Kursk Russia The Arbitration Court of Kursk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A35-5798/06 g. The Court is located at: The Arbitration Court of Kursk K. Marksa Str. 25 305004 Kursk Russia The Debtor can be reached at: A. Zabornyj Insolvency Manager Stepana Razina Str. 96 305004 Kursk Russia AVANT-GUARD CJSC: Court Names E. Feoktistov to Manage Assets ------------------------------------------------------------ The Arbitration Court of Kursk appointed E. Feoktistov as Insolvency Manager for CJSC Starooskolskiy Reinforcing Factory Avant-Guard. He can be reached at: E. Feoktistov Post User Box 813 308001 Belgorod-1 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A08-10145/06-11. The Court is located at: The Arbitration Court of Kursk K. Marksa Str. 25 305004 Kursk Russia The Debtor can be reached at: CJSC Starooskolskiy Reinforcing Factory Avant-Guard 180007 Kursk Russia BEARING FACTORY-34: Creditors Must File Claims by June 7 -------------------------------------------------------- Creditors of LLC Bearing Factory-34 (TIN 6162030296, KPP 616201001) have until June 7 to submit proofs of claim to: V. Gaydunkov Insolvency Manager Office 504 Oborony Str. 24 344082 Rostov-na-Donu Russia The Arbitration Court of Rostov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A53-2652/07-S1-8. The Court is located at: The Arbitration Court of Rostov Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: LLC Bearing Factory-34 Respublikanskaya Str. 100 A Rostov-na-Donu Russia EAST OJSC: Creditors Must File Claims by June 14 ------------------------------------------------ Creditors of OJSC East have until June 14 to submit proofs of claim to: N. Shirokov Insolvency Manager Room 301 3rd floor Lenina Str. 39a 302028 Orel Russia The Arbitration Court of Orel commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A48-3935/06-20b. The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Russia The Debtor can be reached at: OJSC East Naberezhnaya Str. 1 Khomutovo Novoderevenkovskiy Orel Russia FERTILITY OJSC: Court Names M. Kushkhov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Kabardino-Balkariya appointed M. Kushkhov as Insolvency Manager for OJSC Fertility. He can be reached at: M. Kushkhov Lenina Pr. 36 Nalchik 360022 Kabardino-Balkariya Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A20-4048/06. The Debtor can be reached at: M. Kushkhov Lenina Pr. 36 Nalchik 360022 Kabardino-Balkariya Russia GAYSKAYA MILL: Creditors Must File Claims by June 14 ---------------------------------------------------- Creditors of LLC Gayskaya Mill (TIN 5626002807) have until June 14 to submit proofs of claim to: A. Fazlyev Insolvency Manager Post User Box 220 Ufa 450080 Bashkortostan Russia The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-1275/2007-14GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: LLC Gayskaya Mill Gay Orenburg Russia KOTELNIKOVSKIY AGRO: Creditors Must File Claims by June 7 --------------------------------------------------------- Creditors of LLC Kotelnikovskiy Agro Industrial Alliance (TIN 3413008159) have until June 7 to submit proofs of claim to: V. Vinokhodov Temporary Insolvency Manager Gramshi Str. 51-49 400125 Volgograd Russia The Arbitration Court of Volgograd commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A12-2117/07-s57. The Debtor can be reached at: LLC Kotelnikovskiy Agro Industrial Alliance Sovetskaya Str. 19 Kotelnikovo 404354 Volgograd Russia KRASNOSELSKAYA-2 CJSC: Asset Sale Slated for May 11 --------------------------------------------------- LLC Audit-Ekaterinodar, the bidding organizer for CJSC Agricultural Company Krasnoselskaya-2, will open a public auction for the company's properties at 2:00 p.m. on May 11 at: LLC Audit-Ekaterinodar Office 10 Stavropolskaya Str. 183/3 Krasnodar Russia Interested participants have until May 10 to deposit an amount equivalent to 10% of the starting price to: CJSC Agricultural Company Krasnoselskaya-2 Settlement Account 40702810200440003322 Correspondent Account 301018103000000000978 BIK 040349978 TIN/KPP 2310106770/231001001 OGRN 1027700159497 OJSC Bank of Moscow Krasnodar Russia Bidding documents must be submitted to: LLC Audit-Ekaterinodar Office 10 Stavropolskaya Str. 183/3 Krasnodar Russia The Debtor can be reached at: LLC Audit-Ekaterinodar Office 10 Stavropolskaya Str. 183/3 Krasnodar Russia KUBAN'-OPT-PROD-TORG: Bankruptcy Hearing Slated for June 25 ----------------------------------------------------------- The Arbitration Court of Krasnodar will convene on June 25 to hear the bankruptcy supervision procedure on CJSC Kuban'-Opt- Prod-Torg. The case is docketed under Case No. A-32-10838/ 2003-1/108-B/2003-37/101-B. The Temporary Insolvency Manager is: V. Bugaev Pochtovaya Str. 2 Krasnoselskiy Gulkevichskiy 352188 Krasnodar Russia The Court is located at: The Arbitration Court of Krasnodar Staroderevenkovskaya St. Krasnodar Russia The Debtor can be reached at: CJSC Kuban'-Opt-Prod-Torg Uralskaya Str. 95 Krasnodar Russia MAGNITOGORSK IRON: Earns RUR10.3 Billion for First Quarter 2007 --------------------------------------------------------------- OAO Magnitogorsk Iron and Steel Works reported RUR10.31 billion in net profit on RUR43.13 billion in net revenues for the first quarter of 2007, compared with RUR8.73 billion in net profit on RUR33.61 billion in net revenues for the same period in 2006. The financial statements are prepared according to Russian Standards of Accounting Reporting. The results exclude the company's subsidiaries. "We are pleased with the financial results the Company has demonstrated in the first quarter of 2007," Viktor Rashnikov, Chairman of MMK's Board of Directors, said. "These results indicate the continued stable development of the Company and support the effectiveness of our strategy." About Magnitogorsk Iron Headquartered in Magnitogorsk, Russia, OJSC Magnitogorsk Iron and Steel Works -- http://www.mmk.ru/-- manufactures steel and accounts for about 20% of all steel products sold on the domestic market. MMK is a major fully integrated steel making complex encompassing all the required processes, from preparation of iron ore materials to high added value processing of steel. About half of the Company's output is exported worldwide. * * * In a TCR-Europe report on April 27, Moody's Investor's Service upgraded to Ba2 from Ba3 the corporate family rating for Magnitogorsk Iron and Steel Works as well as the rating on the company's guaranteed medium term notes issued by MMK Finance S.A. Moody's said the outlook for both ratings is stable. The Moody's Interfax Rating Agency has upgraded the national scale rating for MMK to Aa2.ru from Aa3.ru. As a result of the implementation of the Loss Given Default and Probability of Default rating methodology in April 2007, Moody's has assigned a PDR of Ba2 to MMK. The Ba2 Corporate Family Rating, which is at the same level as the PDR, reflects the assumption of a family-wide LGD rate of 50%. The US$300 million guaranteed senior unsecured medium term notes, issued by MMK Finance SA, are also rated at Ba2 (Loss Given Default Assessment LGD4, 50%), at the same level as the Corporate Family Rating, reflecting the benefit of a senior guarantee from the operating company MMK which positions the notes at the same level as the approx. US$600 million bank loans and US$572 million trade claims of MMK, based on nine months 2006 results. Magnitogorsk Iron carries BB Issuer Default and senior unsecured ratings from Fitch Ratings. The Outlook on the Issuer Default rating is Stable. The company also carries a BB Issuer Rating from Standard and Poor's. MARSHALL HOLDINGS: Auditors Raise Going Concern Doubt ----------------------------------------------------- Madsen & Associates CPA's, Inc. raised substantial doubt about the ability of Marshall Holdings International Inc. to continue as a going concern after auditing the company's financial statements as of Dec. 31 2006. The auditing firm pointed to the company's need of an additional working capital for its planned activity and to service its debt. Marshall had a net loss of US$3,735,237 for the year ended Dec. 31, 2006, as compared with a net loss of US$903,728 in 2005. Marshall had a loss from operations of US$3,149,818 in 2006, as compared with a loss from operations of US$2,316,178 in 2005. Marshall's substantial increase in losses from operations and net losses were attributable to a significant increase in payments to consultants both in cash and in stock for services as reported in selling, general and administrative expenses. Sales for the year ended Dec. 31, 2006, increased to US$3,757,181 from sales of US$769,759 for the year ended Dec. 31, 2005. The increase in sales was primarily due to the acquisition of Marshall Distributing wholesale natural products distributor and the activation of Marshall Corporate Administration Inc, formerly Gateway Corporate Administration Inc. As of Dec. 31, 2006, the company had total assets of US$12,433,767 and total liabilities of US$12,046,882, resulting in a total stockholders' equity of US$386,885. Accumulated deficit as of Dec. 31, 2006, stood at US$23,111,161, up from US$19,775,923 as of Dec. 31, 2005. Liquidity and Capital Resource For fiscal year 2006, Marshall's working capital increased to a positive US$388,000 at Dec. 31, 2006 from a positive US$289,000 at Dec. 31, 2005. This increase was primarily attributable to the acquisition of Marshall Distributing that had a substantial amount in inventory. Cash, cash equivalents and marketable securities totaled US$61,083 at Dec. 31, 2006, as compared with US$93,305 at Dec. 31, 2005. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1e27 About Marshall Holdings Marshall Holdings International Inc., formerly Gateway Distributors, Ltd., (MHII.OB) provides nutritional supplementation in the U.S. and Canada, as well as in Russia and Indonesia. Its nutritional products include Body Gard with Lactoferrin, Femme, Fulvic Factor, Lifetonic, LifeZymePlus, Master Formula powder and capsules, Natural Immunity, Superfood powder and capsules, and Vibrant 9 skin care product. Its products are not intended to diagnose, treat, cure or prevent any disease. MOBILE TELESYSTEMS: Faces Suit over Tarino Stock Option Deal ------------------------------------------------------------ OJSC Mobile TeleSystems is facing a suit by Nomihold Securities Inc. at a London court for failing to exercise a US$170 million stock purchase option, RIA Novosti reports. In 2005, Nomihold sold 51% of Tarino Ltd., indirect owner of Kyrgyz GSM operator Bitel, to MTS, represented by MTS Finance S.A., for US$150 million. However, another Russian firm, Reservspetsmet, said it signed a deal to acquire Bitel, stripping MTS of operational control over the Kyrgyz operator. In the suit, Nomihold demands that MTS Finance S.A. exercise the option to repurchase 49% of Tarino and compensate for the plaintiff's losses and expenses, RIA Novsoti relates citing an MTS statement. Yelena Kokhanskaya, MTS press secretary, told RIA Novosti that the firm refuses to exercise the option since it does not possess the shares acquired in 2005. MTS, however, said it would pay the amount only after a court ruling. About MTS Headquartered in Moscow, Russia, Mobile TeleSystems OJSC -- http://www.mtsgsm.com/-- is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 61.77 million subscribers. The regions of Russia, as well as Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of approximately 233.1 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange. As of Dec. 31, 2005, MTS had a working capital deficit of US$631.6 million, compared with a US$189 million working capital deficit at Dec. 31, 2004. MOBILE TELESYSTEMS: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and Technology sectors, the rating agency confirmed its Ba3 Corporate Family Rating for Mobile TeleSystems OJSC. Moody's also assigned a Ba3 probability of default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. * Issuer: Mobile TeleSystem Finance S.A. Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 8.375% Sr. Unsec. Regular Bond/Debenture Due 2010 Ba3 LGD4 50% 8% Sr. Unsec. Regular Bond/Debenture Due 2012 Ba3 LGD4 50% US$400M 9.75% Sr. Unsec. Regular Bond/ Debenture Due 2008 Ba3 LGD4 50% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). About MTS Headquartered in Moscow, Russia, Mobile TeleSystems OJSC -- http://www.mtsgsm.com/-- is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 61.77 million subscribers. The regions of Russia, as well as Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of approximately 233.1 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange. SERGACH-STROY-BYT: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod commenced bankruptcy supervision procedure on CJSC Sergach-Stroy-Byt. The case is docketed under Case No. 43-2394/2007 33-43. The Temporary Insolvency Manager is: L. Khokhlova Premise 4 Kazanskoye Shosse 14/1 603163 Nizhniy Novgorod Russia The Court is located at: The Arbitration Court of Nizhniy Novgorod Kremlin 9 603082 Nizhniy Novgorod Russia The Debtor can be reached at: CJSC Sergach-Stroy-Byt Ulyanova Str. 206A Sergach 607510 Nizhniy Novgorod Russia SIB-TRANS-ALLIANCE: Creditors Must File Claims by June 14 --------------------------------------------------------- Creditors of CJSC Sib-Trans-Alliance have until June 14 to submit proofs of claim to: N. Kuzakov Insolvency Manager 3rd entrance Lapina Str. 43A 66400 Irkutsk Russia The Arbitration Court of Irkutsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A19-24533/06-8. The Court is located at: The Arbitration Court of Irkutsk Room 303 Gagarina Avenue 70 664025 Irkutsk Russia The Debtor can be reached at: CJSC Sib-Trans-Alliance 1st Sovetskaya Str. 58-28 Irkutsk Russia SIRENA OJSC: Moscow Court Names E. Vesnin as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Moscow appointed E. Vesnin as Insolvency Manager for OJSC International Technological Corporation Sirena. He can be reached at: E. Vesnin Nizhegorodskaya Str. 94-3-32 109052 Moscow Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-32031/02-3-63B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: E. Vesnin Nizhegorodskaya Str. 94-3-32 109052 Moscow Russia STREZHEVOJ-SEL-KHOZ-PRODUCT: Claims Filing Period Ends May 14 ------------------------------------------------------------- Creditors of CJSC Strezhevoj-Sel-Khoz-Product (TIN 7022001723) have until May 14 to submit proofs of claim to: A. Razuvaev Insolvency Manager Post User Box 720 Seversk 39 636039 Tomsk Russia The Arbitration Court of Tomsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-9688/06. The Court is located at: The Arbitration Court of Tomsk Kirova Pr. 10 634050 Tomsk Region Russia The Debtor can be reached at: CJSC Strezhevoj-Sel-Khoz-Product Mira Str. 2 Strezhevoj Tomsk Russia SVETOVID LLC: Court Starts Bankruptcy Supervision Procedure ----------------------------------------------------------- The Arbitration Court of Tyumen commenced bankruptcy supervision procedure on LLC Svetovid. The case is docketed under Case No. A-70-1168/3-07. The Insolvency Manager is: T. Isaeva Tel/Fax: 8-909-737-81-80 The Court is located at: The Arbitration Court of Tyumen Khokhryakova Str. 77 627000 Tyumen Russia The Debtor can be reached at: LLC Svetovid Yalutorovsk Tyumen Russia TRANSCREDITBANK: Moody's Puts Ba3 Rating to Unit's Notes -------------------------------------------------------- Moody's Investors Service has assigned a Ba3 long-term foreign currency debt rating to the Loan Participation Notes to be issued on a limited-recourse basis by TransCredit Finance Plc, a special purpose vehicle incorporated under the laws of Ireland, for the sole purpose of financing a senior unsecured loan to TransCreditBank. The rating is on review for possible upgrade. Moody's notes that the rating for the Notes is based on the fundamental credit quality of TCB as the ultimate obligor under the transaction. According to Moody's, the underlying loan agreement contains a set of covenants such as negative pledge, limitation on mergers and disposals as well as on transactions with affiliates. One of the financial covenants requires the bank to maintain a minimum consolidated BIS Capital Adequacy Ratio of 10%. Moody's cautions that the transaction also has an embedded rating trigger whereby the LPNs may become payable in the event that TCB's rating is downgraded following a change of control. Moody's notes that the likelihood of any of the above covenants being breached and the rating being triggered is relatively low. Headquartered in Moscow, Russia, TransCreditBank reported total consolidated assets of RUR83,675 million (US$3,177.6 million) million and total shareholder equity of RUR6,167.4 million (US$234.2 million) in accordance with IFRS as of Dec. 31, 2006. TYUMEN-GEOL-SNAB-SERVICE: Bankruptcy Hearing Slated for June 19 --------------------------------------------------------------- The Arbitration Court of Tyumen will convene on June 19 to hear the bankruptcy supervision procedure on OJSC Tyumen-Geol-Snab- Service (TIN 7202086123). The case is docketed under Case No. A-70-971/3-2007. The Temporary Insolvency Manager is: P. Sidor Motorostroitelej Str. 8-20 Tyumen Russia The Court is located at: The Arbitration Court of Tyumen Khokhryakova Str. 77 627000 Tyumen Russia The Debtor can be reached at: OJSC Tyumen-Geol-Snab-Service Sudostroitelej Str. 2 625034 Tyumen Russia VIMPEL-COMMUNICATIONS: Clears Dutch Unit to Repurchase Shares ------------------------------------------------------------- OJSC Vimpel-Communications' Board of Directors has authorized VC ESOP N.V., an indirect wholly owned Dutch subsidiary, to repurchase up to 1,600,000 American Depositary Shares, or ADSs, which is equivalent to up to 400,000 shares of the Company's common stock, par value 0.5 kopecks per share, through Dec. 31, 2008. The number of shares underlying ADSs that may be repurchased equals approximately 0.8% of VimpelCom's common stock currently outstanding. The Company and VC ESOP intend to utilize the repurchased shares for the issuance of stock based compensation awards. VimpelCom intends to establish a systematic purchasing plan under Rule 10b5-1 of the Securities Exchange Act of 1934 to facilitate repurchases of up to 800,000 ADSs, which is equivalent to up to 200,000 shares of the Company's common stock, under the repurchase program. Rule 10b5-1 permits a public company to repurchase its shares at times when it ordinarily would not be in the market because of self-imposed trading blackout periods. Under the Rule 10b5-1 plan, certain specified amounts of ADSs would be purchased on a daily basis provided that specified trading prices are achieved. The Rule 10b5-1 plan would commence on May 1, and expire upon the earliest of Dec. 31, the purchase of all the ADSs covered by the plan, or certain other specified events. Purchases would be made in the open market or through privately negotiated transactions, all in accordance with U.S. and Russian securities law, including the volume, price, timing and other requirements of Rule 10b-18 of the Securities Exchange Act of 1934. VimpelCom also intends to establish a similar purchasing plan in 2008 to facilitate repurchases of up to an additional 800,000 ADSs, which is equivalent to up to 200,000 shares of the Company's common stock, under the repurchase program. The Company also announced that it has amended its Amended and Restated VimpelCom 2000 Stock Option Plan to increase the maximum number of shares available for issuance under the plan from 650,000 to 1,050,000 common shares (equivalent to 4,200,000 ADSs). About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications (NYSE: VIP) -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K- mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * In a TCR-Europe report on April 16, in connection with Moody's Investors Service's implementation of its new Probability-of- Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and Technology sectors, the rating agency confirmed its Ba2 Corporate Family Rating for OJSC Vimpel-Communication. Moody's also assigned a Ba2 Probability-of-Default rating to the company. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ -------- 10% Senior Unsecured Regular Bond/Debenture Due 2009 Ba2 Ba2 LGD4 52% 8.375% Senior Unsecured Regular Bond/Debenture Due 2011 Ba2 Ba2 LGD4 52% 8% Senior Unsecured Regular Bond/Debenture Due 2010 Ba2 Ba2 LGD4 52% 8.25% Senior Unsecured Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD4 52% As reported in the TCR-Europe on Oct. 12, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based mobile telecommunications operator Vimpel-Communications (JSC) to 'BB+' from 'BB', reflecting the company's continuing strong performance. S&P said the outlook is stable. VNESHTORGBANK JSC: To Float 22.5% of Equity in Global Offering -------------------------------------------------------------- JSC Vneshtorgbank will offer new shares equivalent to 22.5% of its equity and raise over US$6 billion in fresh funds, RIA Novosti reports citing a company source. In March, VTB said it would place 1,700 billion new shares worth RUR17 billion through an open subscription on the local and foreign markets, RIA Novosti relates. In a TCR-Europe report on April 17, VTB CEO Andrei Kostin said the new securities, which totals 24.97% of the bank's charter capital, would be offered through open subscription to professional investors on the London Stock Exchange and both to professional market participants and individuals in Russia. The IPO is aimed at decreasing the Russian government's stake in VTB from 99.9% to 75% plus one. Sberbank, another state-owned bank, recently completed its IPO. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * Following the upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch Ratings affirmed Vneshtorgbank's Individual rating at C/D and Support at 2. VNESHTORGBANK JSC: Prices Share Offering at Up to 11.30 Kopecks --------------------------------------------------------------- JSC Vneshtorgbank disclosed the indicative price range for its planned Global Offering of ordinary shares and Global Depositary Receipts. The indicative price range has been set at 11.30 kopecks to 13.90 kopecks per Share, which equates to US$8.77 to US$10.79 per GDR, based on the official exchange rate quoted by the CBR of 25.7760 rubles per US dollar on April 25, and with each GDR representing 2,000 Shares. Based on the exchange rate, the price range reflects an implied market capitalization for VTB of approximately US$22.84 billion to US$28.10 billion, prior to taking into account the proceeds of the Global Offering. The Global Offering comprises an offer of Shares to international institutional investors inside and outside of the Russian Federation and an offer of GDRs to international institutional investors outside of the Russian Federation. The Shares are also being offered to retail investors in the Russian Federation, the retail subscription period having commenced on April 9. VTB intends to list the GDRs on the London Stock Exchange. The Shares have been admitted to trading on the "V" lists of the Moscow Interbank Currency Exchange (MICEX) and the Russian Trading System (RTS) under the ticker VTBR. The Global Offering is comprised solely of newly issued Shares. VTB is currently 99.9% owned by the Russian Government, whose shareholding will be no less than 75% plus one share following the Global Offering. VTB will receive all of the net proceeds of the Global Offering, which it intends to use primarily to support the ongoing expansion of its business including the expansion of its Russian retail banking operations. Citi, Deutsche Bank and Goldman Sachs International are appointed Joint Global Coordinators for the Global Offering and, together with Renaissance Capital, are appointed Joint Bookrunners. "I am very encouraged by the extent of interest already being shown in Russia at this stage in the process and it is clear that there is already a high regard for VTB in the international investment community as a Russian banking leader," Andrei Kostin, Chairman and CEO of the Management Board of VTB, said. "I am now looking forward to underlining the unique strengths of our business and our focus on rapid and profitable growth in the coming weeks." About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * Following the upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch Ratings affirmed Vneshtorgbank's Individual rating at C/D and Support at 2. ========= S P A I N ========= TOWER AUTOMOTIVE: Files Chapter 11 Plan and Disclosure Statement ---------------------------------------------------------------- Tower Automotive Inc. has filed its Chapter 11 Plan and accompanying Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of New York. The filing also includes the sale agreement for substantially all of Tower's assets to an affiliate of Cerberus Capital Management L.P. The company expects to close a sale transaction by July 31, following the completion of a competitive bidding process as outlined in the sale agreement, and Court approval of both the Plan and sale transaction. The Plan provides for: a) payment in full of secured claims, including obligations under Tower's Debtor-in-Possession credit facility and second lien loan facility; b) payment in full of administrative and priority claims; c) assumption of the company's pension plan; and d) partial recovery for certain unsecured creditors. To strengthen its financial position and realize opportunities for profitable, long-term future operations, during the reorganization process, Tower implemented a sweeping restructuring, closing or selling 16 manufacturing plants and consolidating production into existing facilities to improve productivity, negotiating settlements with all 10 U.S.-based labor unions, selling non-core businesses and diversifying its customer base with international automakers. As a result, Tower expects that more than half of the restructured company's revenue will come from its international operations. The proposed sale will be subject to higher and better bids. A Court-approved marketing process is being conducted pursuant to which qualified parties must submit competing bids to purchase Tower by June 20. If qualified and competing bids are received by that date, the company will conduct an auction on June 25, 2007 to determine the highest and best bid. The company would then ask the Bankruptcy Court to confirm Tower's Plan of Reorganization and approve the transaction, with a closing to occur by July 31. About Tower Automotive Inc. Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. (OTCBB: TWRAQ) -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company has operations in Korea, Spain, and Brazil. The company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed US$787,948,000 in total assets and US$1,306,949,000 in total debts. TOWER AUTOMOTIVE: Treatment of Claims Under Chapter 11 Plan ----------------------------------------------------------- Tower Automotive, Inc., and its debtor-affiliates, delivered their Joint Plan of Reorganization and accompanying Disclosure Statement to the U.S. Bankruptcy Court for the Southern District of New York on May 1, 2007. The Reorganization Plan provides for the (i) payment in full of secured claims, including obligations under Tower's DIP credit facility and second lien loan facility, as well as payment in full of administrative and priority claims, (ii) assumption of the company's pension plan, and (iii) partial recovery for certain unsecured creditors. The Plan also incorporates the previously announced sale agreement for substantially all of Tower's assets to TAC Acquisition Company, LLC, an affiliate of Cerberus Capital Management, L.P. Tower expects to close the sale transaction by July 31, 2007, after the completion of a competitive bidding process as outlined in the Sale Agreement with Cerberus, and Court approval of both the Plan and Sale Transaction. Qualified parties must submit competing bids to purchase Tower by June 20, 2007. If qualified and competing bids are received by that date, the company will conduct an auction on June 25. Following the auction, Tower would then ask the Court to confirm its Plan and approve the Sale transaction. Classification & Treatment of Claims Under the Plan, all Claims against Tower, other than Administrative Claims, DIP Facility Claims and Priority Tax Claims, are divided into nine separate classes. Tower believes this complies with the requirements of the Bankruptcy Code. Class Description ----- ----------- 1 Other Priority Claims 2 Other Secured Claims 3 Second Lien Claims 4 R.J. Tower Bondholder Claims 5 R.J. Tower General Unsecured Claims 6 5.75% Convertible Senior Note Claims 7 Other General Unsecured Claims 8 Trust Related Claims 9 Common Equity Interests Classes 1, 2, and 3 are unimpaired and are deemed to accept the Plan. Classes 4, 5, 6, and 7 are impaired and are entitled to vote on the Plan. Classes 8 and 9 are impaired; will receive no distribution under the Plan; and are deemed to have rejected the Plan without voting. Each Holder of Allowed Claims in Classes 1 and 2 Claims will receive full cash payments on the effective date of the Plan from the Post-Consummation Trust Priority Account. On or as soon as practicable after the Plan Effective Date, all remaining Cash in the Second Lien Collateral Account will be returned to the Second Lien Agent for the Pro Rata benefit of the Second Lien Lenders, and the Second Lien Facility will be terminated. Each Holder of an Allowed Class 3 Claim will receive a full cash payment from TAC Acquisition, pursuant to the terms of TAC Acquisition's purchase agreement with Tower. Each Holder of an Allowed Class 4 Claim will receive its Pro Rata share of the R.J. Tower Bondholder Primary Recovery and the R.J. Tower Bondholder Secondary Recovery. The Post-Consummation Trust will not make distributions to holders of Class 4 Claims until all Post-Consummation Trust Senior Claims payable by the Post-Consummation Trust have been paid in full, or until an appropriate Disputed Claims Reserve has been established for the payment of all Post-Consummation Trust Senior Claims. Each Holder of an Allowed Class 5 Claim will receive its Pro Rata share of the R.J. Tower General Unsecured Claim Primary Recovery and the R.J. Tower General Unsecured Claim Secondary Recovery. The Post-Consummation Trust will not make distributions to holders of Class 5 Claims until all Post- Consummation Trust Senior Claims payable by the Post- Consummation Trust have been paid in full, or until an appropriate Disputed Claims Reserve has been established for the payment of all Post-Consummation Trust Senior Claims. On the Plan Effective Date, the Class 6 5.75% Convertible Senior Notes will be cancelled automatically without any further order of the Court or the Debtors or the Indenture Trustee for the 5.75% Convertible Senior Notes. Each Holder of an Allowed Class 6 5.75% Convertible Senior Note Claim will receive a Pro Rata distribution of the Class 6 Recovery. The Post-Consummation Trust will not make distributions to holders of Class 6 Claims until all Post-Consummation Trust Senior Claims payable by the Post-Consummation Trust have been paid in full, or until an appropriate Disputed Claims Reserve has been established for the payment of all Post-Consummation Trust Senior Claims. The Class 7 General Unsecured Claims, on the other hand, will be cancelled and each Holder of an Allowed Class 7 General Unsecured Claim will receive a Pro Rata distribution of the Class 7 Recovery. The Post-Consummation Trust will not make distributions to holders of Class 7 Claims until all Post- Consummation Trust Senior Claims payable by the Post- Consummation Trust have been paid in full, or until an appropriate Disputed Claims Reserve has been established for the payment of all Post-Consummation Trust Senior Claims. The 6.75% Trust Preferred Securities will be cancelled and Holders of Class 8 Trust Related Claims will receive no distribution on account of their Claims. In addition, all Class 9 Equity Interests will be deemed cancelled, and will be of no further force and effect, whether surrendered for cancellation or otherwise, and there will be no distribution to the Holders of Class 9 Equity Interests. Administrative Claims Each Holder of an Allowed Working Capital Administrative Claim will be paid in the ordinary course of business the full unpaid amount of the Claim in cash by TAC Acquisition, or other entities designated by Cerberus or other entities as may be designated the successful bidder or successful bidders at the conclusion of an auction pursuant to the Cerberus Term Sheet. Each Holder of an Allowed Other Administrative Claim will be paid the full unpaid amount of the Claim in cash by the Post- Consummation Trust Plan Administrator, out of a Post- Consummation Trust Priority Account. Holders of Working Capital Administrative Claims based on liabilities incurred by a Debtor in the ordinary course of its business will not be required to file or serve any request for payment of the Working Capital Administrative Claims. DIP Facility Claims Allowed DIP Facility Claims will be paid in full in cash on the Plan Effective Date. Priority Tax Claims On the later of the Plan Effective Date or the date on which a Priority Tax Claim becomes an Allowed Priority Tax Claim, each Holder of an Allowed Priority Tax Claim due and payable on or before the Plan Effective Date will receive on account of the Claim, cash in an amount equal to the amount of the Allowed Priority Tax Claim, which amounts will be payable by the Post- Consummation Trust out of the Post-Consummation Trust Priority Account. Allowed Secondary Liability Claims The classification and treatment of Allowed Claims under the Plan take into consideration all Allowed Secondary Liability Claims. On the Effective Date, Allowed Secondary Liability Claims arising from or related to any Debtor's joint or several liability for the obligations under any (a) Allowed Claim that is being reinstated under the Plan or (b) Executory Contract or Unexpired Lease that is being assumed or deemed assumed by another Debtor or under any Executory Contract or Unexpired Lease that is being assumed by and assigned to another Debtor or any other Entity, will be reinstated. Except as otherwise provided, Holders of Allowed Secondary Liability Claims will be entitled to only one distribution in respect of the underlying Allowed Claim from the Substantively Consolidated Debtors and only one distribution in respect of the underlying Allowed Claim from the International Holding Company Debtors. No multiple recovery on account of any Allowed Secondary Liability Claim will be provided or permitted. Intercompany and Subordinated Claims All Intercompany Claims and Subordinated Securities Claims will be cancelled as of the Plan Effective Date, and Holders of these Claims will not receive a distribution under the Plan in respect of the Claims. Pension Plan R.J. Tower, a wholly owned subsidiary of Tower, Inc., currently sponsors and maintains one defined benefit pension plan known as The Tower Automotive Consolidated Pension Plan. The Plan provides that TAC Acquisition intends to assume the Pension Plan on an on-going basis and will be liable to fund the Pension Plan in accordance with the minimum funding standards under the Internal Revenue Code and ERISA; pay all required PBGC insurance premiums; and continue to administer and operate the Pension Plan in accordance with the terms of the Pension Plan and provisions of ERISA. TAC Acquisition and all members of its controlled group will be obligated to pay the contributions necessary to satisfy the minimum funding standards under Section 412 of the Internal Revenue Code and Section 302 of ERISA. PBGC has filed an estimated contingent claim in the Debtors' Chapter 11 Cases against each Debtor for unfunded benefit liabilities owed to the Tower Automotive Pension Plan and the Tower Automotive UAW Retirement Income Plan for $182,900,000 and $7,700,000. PBGC has also filed unliquidated claims for statutory premiums owed to PBGC and minimum funding contributions owed to each of the Pension Plans. Upon the closing on the sale of the Debtors' assets to TAC Acquisition, and upon the Purchaser's continuation of the Pension Plan, PBGC will withdraw its claims against the Debtors' bankruptcy estates. Trusts Two trusts, the Post-Consummation Trust and the Unsecured Creditors Trust, will be established for the primary purpose of liquidating Trust assets with no objective to continue or engage in the conduct of a trade or business, except to the extent reasonably necessary to, and consistent with, the liquidating purpose of the Trust. A. Post-Consummation Trust The Debtors will transfer to the Post-Consummation Trust all of their rights, title and interests in "Remaining Assets". Any attorney client privilege, work product privilege, or other privilege or immunity attaching to any documents or communications -- whether written or oral -- transferred to the Post-Consummation Trust will vest in the Post-Consummation Trust and its representatives. The Debtors, in consultation with the Official Committee of Unsecured Creditors, will designate the initial Post- Consummation Trust Plan Administrator. Cash in the Post-Consummation Trust Priority Account will be applied in accordance with the terms of the Post-Consummation Trust Budget: (1) to the fees, costs, expenses -- each in amounts not to exceed amounts approved pursuant to the Post- Consummation Trust Budget -- and liabilities of the Post-Consummation Trust Plan Administrator; (2) to satisfy any other administrative and Wind-Down Expenses of the Post-Consummation Trust; and (3) to the distributions provided for pursuant to the Plan. The Post-Consummation Trust Plan Administrator, after the Plan Effective Date, will pay $2,000,000 out of the Post-Consummation Indemnity Account pursuant to the terms of an ERISA Settlement Agreement, it being understood that any refund paid to the Debtors under the ERISA Settlement Agreement up to $2,000,000 will be returned to the Post-Consummation Indemnity Account. The Post-Consummation Trust will also establish a Retained Professional Escrow Account and reserve the amounts necessary to ensure the payment of all Accrued Professional Compensation. All other actions, along with any associated recoveries, proceeds and settlements, will remain the property of the Debtors' estates, and will be devised to the Post-Consummation Trust, provided, no Acquired Assets or Residual Chapter 5 Claims will be devised to the Post-Consummation Trust. Chapter 5 Claims refer to any and all avoidance, recovery, subordination or other actions or remedies that may be brought on behalf of the Debtors or their estates under the Bankruptcy Code or applicable non-bankruptcy law, including actions or remedies under Sections 510, 542, 543, 544, 545, 547, 548, 549, 550, 551, 552, 553(b) and 724(a) of the Bankruptcy Code. B. Unsecured Creditors Trust On the Plan Effective Date, TAC Acquisition will transfer to the Unsecured Creditors Trust the Cash portion of the Unsecured Creditors Trust Assets -- $10,000,000 Unsecureds Claim Payment and a $2,000,000 Unsecureds Funds Payment. Residual Chapter 5 Claims will be deemed to be transferred to the Unsecured Creditors Trust free and clear of all Claims and Interests pursuant to the terms of the Confirmation Order. The Creditors Committee will designate the initial Unsecured Creditors Trust Plan Administrator. The Post-Consummation Trust and the Post-Consummation Trust Plan Administrator will reasonably cooperate with the Unsecured Creditors Trust and the Unsecured Creditors Trust Plan Administrator to facilitate the administration of the Trusts, including, but not limited to the sharing of information related to Claims and any Disputed Claims Reserve. Cancellation of Notes and Equity Interests On the Plan Effective Date, except to the extent otherwise provided, all notes, stock, instruments, certificates, and other documents evidencing the 5.75% Convertible Senior Note Claims, the 6.75% Trust Convertible Subordinated Debenture Claims, the 9.25% Senior Euro Note Claims, the 12% Senior Note Claims, and Equity Interests will be cancelled, and the obligations of the Debtors or in any way related to the documents will be discharged. Any indenture, including the 5.75% Convertible Senior Note Indenture, the 6.75% Trust Convertible Subordinated Debenture, the 9.25% Senior Euro Note Indenture and the 12% Senior Note Indenture will be deemed to be canceled, as permitted by Section 1123(a)(5)(F) of the Bankruptcy Code, and the obligations of the Debtors will be discharged. The 5.75% Convertible Senior Note Indenture, the 9.25% Senior Euro Note Indenture and the 12% Senior Note Indenture will continue in effect solely for the purposes of: (i) allowing Holders of the 5.75% Convertible Senior Note Claims, the 9.25% Senior Euro Note Claims and the 12% Senior Note Claims to receive distributions under the Plan; and (ii) allowing and preserving the rights of the Indenture Trustees under the 5.75% Convertible Senior Note Indenture, the 9.25% Senior Euro Note Indenture and the 12% Senior Note Indenture to: -- make distributions in satisfaction of Allowed 5.75% Convertible Senior Note Claims, the 9.25% Senior Euro Note Claims and the 12% Senior Note Claims; -- exercise their charging liens against any distributions; and -- seek compensation and reimbursement for any fees and expenses incurred in making distributions. Dissolution of Committee Effective no later than 30 days after the Plan, Effective Date if no appeal of the Confirmation Order is then pending, and so long as the Trusts have been established, the Committee will dissolve with respect to the Debtors and its members will be released and discharged from all further authority, duties, responsibilities and obligations relating to the Chapter 11 Cases. However, the Committee and its Retained Professionals will be retained with respect to (i) applications filed pursuant to Sections 330 and 331 of the Bankruptcy Code, (ii) motions seeking the enforcement of the provisions of the Plan and the transactions contemplated under the Plan or the Confirmation Order and (iii) pending appeals. Liquidation Analysis The Debtors believe that the Plan meets the "best interest of creditors" test as set forth in Section 1129(a)(7) of the Bankruptcy Code. There are Impaired Classes with respect to each Debtor, certain of which are contemplated to receive recoveries under the Plan. The Debtors believe that the members of each Impaired Class will receive at least as much as they would if the Debtors were liquidated under Chapter 7 of the Bankruptcy Code. Summary of Hypothetical Liquidation Values Substantively Consolidated Debtors As of March 31, 2007 Hypothetical Recovery Value Low High --- ---- Asset Type: Cash and Equivalents $240,593 100% $240,593 100% Accounts Receivable 41,530,738 61% 51,974,440 76% Inventory 30,890,230 72% 39,240,267 91% MRO 808,012 5% 2,424,036 15% Tooling 18,739,785 100% 20,821,984 100% PP&E 118,604,044 27% 216,135,105 49% Prepaid Expenses - 0% 403,583 10% Other Non-Cur. Assets - 0% - 0% ----------- ----------- Total $210,813,402 $331,240,007 =========== =========== Less: Liquidation Costs (10,142,524) (16,741,498) Chap. 7 Trustee Fees (6,324,402) (9,937,200) Runoff Costs (71,000,000) (54,000,000) Professional Fees (21,000,000) (17,000,000) ----------- ----------- Total Distributable Value $102,348,476 $233,561,308 =========== =========== The Liquidation Analysis reflects the estimated cash proceeds, net of liquidation related costs that would be realized if the Debtors were to be liquidated in accordance with Chapter 7. The Debtors prepared the Liquidation Analysis, with the assistance of FIT Consulting, Inc., Lazard Freres & Co., LLC, and other professionals, and in a manner consistent with the consolidated legal structure of the Plan. The Debtors believe the Liquidation Analysis and the conclusions set forth in the Analysis are fair and accurate, and represent management's best judgment with regard to the results of a Chapter 7 liquidation of the Debtors. A full-text copy of the Debtors' Liquidation Analysis is available for free at http://ResearchArchives.com/t/s?1e63 Plan Must be Approved The Debtors urge creditors entitled to vote to accept the Plan. The Creditors Committee also urges the Holders of Class 4 R.J. Tower Bondholder Claims, Class 5 R.J. Tower General Unsecured Claims, Class 6 5.75% Convertible Senior Note Claims and Class 7 Other General Unsecured Claims to vote to accept the Plan and to evidence their acceptance by timely completing and returning their Ballots. The Debtors will file Plan Supplements on or before July 2, 2007. Upon filing, the Plan Supplement will be made available on the Voting Agent's Web site at http://www.bsillc.com/ A full-text copy of Tower's Disclosure Statement is available for free at http://ResearchArchives.com/t/s?1e61 A full-text copy of Tower's Plan is available for free at: http://ResearchArchives.com/t/s?1e62 About Tower Automotive Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company has operations in Korea, Spain and Brazil. The company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed $787,948,000 in total assets and $1,306,949,000 in total debts. The Debtors' exclusive period to file a chapter 11 plan expired today, May 3. (Tower Automotive Bankruptcy News, Issue No. 61; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) TOWER AUTOMOTIVE: Disclosure Statement Hearing Set for June 5 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on June 5, 2007, to consider the adequacy of the Disclosure Statement explaining Tower Automotive, Inc., and its debtor-affiliates' Joint Plan of Reorganization. The Deadline for filing objections to the Disclosure Statement is May 29. Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company has operations in Korea, Spain and Brazil. The company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed $787,948,000 in total assets and $1,306,949,000 in total debts. The Debtors' exclusive period to file a chapter 11 plan expired today, May 3. (Tower Automotive Bankruptcy News, Issue No. 61; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ===================== S W I T Z E R L A N D ===================== ASOMEC SYSTEME: Creditors' Liquidation Claims Due May 18 -------------------------------------------------------- Creditors of JSC Asomec Systeme have until May 18 to submit their claims to: Hans Obrecht Liquidator Gehrengasse 30 4704 Niederbipp Wangen BE Switzerland The Debtor can be reached at: JSC Asomec Systeme Wangen an der Aare BE Switzerland BOURBAKI RESTAURANT: Creditors' Liquidation Claims Due May 18 ------------------------------------------------------------- Creditors of JSC Bourbaki Restaurant have until May 18 to submit their claims to: JSC Procliente Revisions Liquidator Burgstrasse 14 6331 Hunenberg ZG Switzerland The Debtor can be reached at: JSC Bourbaki Restaurant Lucerne Switzerland CHEMINVEST JSC: Creditors' Liquidation Claims Due May 18 -------------------------------------------------------- Creditors of JSC Cheminvest have until May 18 to submit their claims to: Dr. iur. Romano Kunz Liquidator Ottoplatz 19 7001 Chur GR Switzerland The Debtor can be reached at: JSC Cheminvest Chur GR Switzerland ESTIMED PHARMA: Creditors' Liquidation Claims Due May 18 -------------------------------------------------------- Creditors of JSC Estimed Pharma have until May 18 to submit their claims to: Riedstrasse 1 6343 Rotkreuz Switzerland The Debtor can be reached at: JSC Estimed Pharma Risch ZG Switzerland INTEGMAR HOLDING: Creditors' Liquidation Claims Due May 21 ---------------------------------------------------------- Creditors of JSC Integmar Holding have until May 21 to submit their claims to: Hans Stuber Liquidator Grafenaustrasse 5 6304 Zug Switzerland The Debtor can be reached at: JSC Integmar Holding Zug Switzerland PRO BAUTEAM: Creditors' Liquidation Claims Due May 19 ----------------------------------------------------- Creditors of LLC Pro Bauteam have until May 19 to submit their claims to: Gartnerstrasse 61 4057 Basel BS Switzerland The Debtor can be reached at: LLC Pro Bauteam 4057 Basel BS Switzerland S-T SYSTEMTRADE: Creditors' Liquidation Claims Due May 21 --------------------------------------------------------- Creditors of JSC S-T Systemtrade have until May 21 to submit their claims to: Thomas Zumbuhl Liquidator Untere Altstadt 10 6301 Zug Switzerland The Debtor can be reached at: JSC S-T Systemtrade Zug Switzerland SPORTS VISION: Creditors' Liquidation Claims Due June 18 -------------------------------------------------------- Creditors of LLC Sports Vision have until June 18 to submit their claims to: JSC Onyx Trust Services Liquidator Baarerstrasse 8 6301 Zug Switzerland The Debtor can be reached at: LLC Sports Vision Zug Switzerland TROEHLER BFSA: Creditors' Liquidation Claims Due May 18 ------------------------------------------------------- Creditors of LLC Troehler BFSA have until May 18 to submit their claims to: JSC Dr. Balsiger & Partner Liquidator Pfistergasse 38 4800 Zofingen AG Switzerland The Debtor can be reached at: LLC Troehler BFSA Zofingen AG Switzerland VIDEOTRONIC (SCHWEIZ): Creditors' Liquidation Claims Due May 21 --------------------------------------------------------------- Creditors of JSC Videotronic (Schweiz) have until May 21 to submit their claims to: Walter J. Weber Liquidator Kronenstrasse 9 8712 Stafa Meilen ZH Switzerland The Debtor can be reached at: JSC Videotronic (Schweiz) Oberuzwil Wahlkreis Wil SG Switzerland =========== T U R K E Y =========== TURKCELL: Altimo Demands Repayment of US$1.3 Bln Cukurova Loan -------------------------------------------------------------- Altimo, the telecoms arms of financial holding Alfa Group, has demanded the repayment of its outstanding US$1.35 billion loan to Cukurova Group, in Turkey. Altimo, which is owned by Russian entrepreneur Mikhail Fridman, and Cukurova Group, a Turkish conglomerate, are two of Turkcell Iletisim Hizmetleri A.S.'s biggest shareholders. In November 2005, Alfa Group concluded a multi-agreement deal with Cukurova acquiring a 13.22% indirect stake in Turkcell, a Turkish mobile operator, and lending US$1.70 billion to Cukurova Group. In November 2006, Cukurova repaid US$357 million of the total loan to Alfa and paid US$217 million interest. Altimo is concerned that, following a number of event of defaults by Cukurova, the security of its loan is compromised. Cukurova has repeatedly failed to comply with the agreements signed in 2005. Therefore, Altimo has to put in place measures to protect its position in relation to the outstanding loan. On April 16, Altimo served notice on the Cukurova Group demanding repayment of the loan in full. In accordance with the agreements signed with Cukurova, it has also referred these matters to court in the British Virgin Islands to seek confirmation of its position. About Altimo Headquartered in Moscow, Russia, Altimo -- http://www.altimo.org/-- was created in 2005 from Alfa Telecom, which itself was established in 2004 to hold the telecoms investments of the Alfa Group Consortium. Those assets are in Russia, the CIS and other promising emerging markets. About Turkcell Headquartered in Instanbul, Turkey, Turkcell Iletisim Hizmetleri A.S. -- http://www.turkcell.com.tr/-- provides high-quality mobile voice and data services through its own GSM network, with 39.4 million proportionate GSM subscribers as of December 31, 2006. The company also operates in the Ukraine through its indirect subsidiary Astelit, in Azerbaijan, Kazakhstan, Georgia and Moldova through its associate Fintur, and in Northern Cyprus through its wholly owned subsidiary Kibris Telekom. * * * As reported in the TCR-Europe on Dec. 27, 2006, Moody's Investors Service assigned Ba2 foreign currency and Ba2 domestic currency corporate family ratings to Turkcell Iletisim Hizmetleri A.S. Moody's said the outlook is stable. As reported by the TCR-Europe on Dec. 5, 2006, Standard & Poor's Ratings Services raised to 'BB-' from 'B+' its long-term foreign currency corporate credit rating on Turkcell Iletisim Hizmetleri A.S., the leading Turkish mobile telecommunications group. S&P said the outlook is stable. In August 2006, Fitch Ratings upgraded the foreign currency Issuer Default rating for Turkcell Iletisim Hizmetleri A.S. to BB from BB- and remains on Outlook Positive, reflecting the existing Positive Outlook on Fitch's BB- FC IDR. ============= U K R A I N E ============= ALPHA-8 LLC: Creditors Must Register Claims by May 12 ----------------------------------------------------- Creditors of LLC Alpha-8 (code EDRPOU 30136944) have until May 12 to submit written proofs of claims to: Andrew Darmostuk Liquidator Petrovsky Str. 6/8 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-48/19-06. The Court is located at: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Alpha-8 Krasnooktiabrskaya Str. 5 Kharkov Ukraine BUILDING MECHANIZATION: Creditors Must Register Claims by May 12 ---------------------------------------------------------------- Creditors of Joint Enterprise Building Mechanization (code EDRPOU 24659399) have until May 12 to submit written proofs of claims to: O. Kuznetsova Liquidator Plitkov Str. 12 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-19/40-07. The Court is located at: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: Joint Enterprise Building Mechanization Plitkov Str. 12 Kharkov Ukraine MIZOCH AGRICULTURAL: Creditors Must Register Claims by May 13 ------------------------------------------------------------- Creditors of OJSC Mizoch Agricultural Machine-Technologic Station (code EDRPOU 30032581) have until May 13 to submit written proofs of claim to: Lesia Tikhonchuk Temporary Insolvency Manager Slovatsky Str. 4/6 Rivne Ukraine The Economic Court of Rivne commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 8/18. The Court is located at: The Economic Court of Rivne Yavornitski Str. 59 33001 Rivne Ukraine The Debtor can be reached at: OJSC Mizoch Agricultural Machine-Technologic Station Vishnevaya Str. 1 Mizoch Zdolbunov District 35740 Rivne Ukraine OCHAKOV MOTOR: Creditors Must Register Claims by May 13 ------------------------------------------------------- Creditors of OJSC Ochakov Motor Transport (code EDRPOU 03117790) have until May 13 to submit written proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/454/06. The Debtor can be reached at: OJSC Ochakov Motor Transport Ochakov Olviyskaya Str. 1 54240 Nikolaev Ukraine ROVNO AGRICULTURAL: Creditors Must Register Claims by May 13 ------------------------------------------------------------ Creditors of OJSC Rovno Agricultural Machine-Technologic Station (code EDRPOU 30032581) have until May 13 to submit written proofs of claim to: Lesia Tikhonchuk Temporary Insolvency Manager Slovatsky Str. 4/6 Rivne Ukraine The Economic Court of Rivne commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 8/48. The Court is located at: The Economic Court of Rivne Yavornitski Str. 59 33001 Rivne Ukraine The Debtor can be reached at: OJSC Rovno Agricultural Machine-Technologic Station Slovatsky Str. 4/6 33000 Rivne Ukraine SHEBELINKA CJSC: Creditors Must Register Claims by May 13 --------------------------------------------------------- Creditors of Shebelinka CJSC (code EDRPOU 25612359) have until May 13 to submit written proofs of claims to: Sergey Sautenko Liquidator Heroes of Work Str. 58 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-24/199-03. The Court is located at: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: Shebelinka CJSC Shebelinka Balakleya District Kharkov Ukraine SPHERE LLC: Creditors Must Register Claims by May 13 ---------------------------------------------------- Creditors of LLC Corporation Sphere (code EDRPOU 30408320) have until May 13 to submit written proofs of claim to: S. Persiuk Liquidator Mayakovsky Str. 11 69035 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 19/205. The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Corporation Sphere Dokovskaya Str. 3 69032 Zaporozhje Ukraine STIROL JSC: Moody's Assigns Loss-Given-Default Rating ----------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Transportation Services, Services, Homebuilding and Building Products, Chemical, Retail and Apparel and Restaurants, Wholesale Distribution, and Other sectors, the rating agency confirmed its B3 Corporate Family Rating for OJSC Concern Stirol. Moody's also assigned a B3 Probability-of-Default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. * Issuer: UkrChem Capital B.V. Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- ------ 7.875% Sr. Unsec. Regular Bond/Debenture Due 2008 B3 LGD4 54% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Ukraine, JSC Concern Stirol -- http://www.stirol.net/-- manufactures chemical and pharmaceutical products. TECHNICAL SERVICE: Creditors Must Register Claims by May 12 ----------------------------------------------------------- Creditors of OJSC Technical Service (code EDRPOU 31259105) have until May 12 to submit written proofs of claim to: Nikolay Derebchinsky Liquidator Komsomolskaya Str. 3 Yuzhnoukrainsk 55001 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 2/194/06. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: OJSC Technical Service P.O. Box 42 Yuzhnoukrainsk 55000 Nikolaev Ukraine TECHNOR LLC: Creditors Must Register Claims by May 12 ----------------------------------------------------- Creditors of LLC Technor (code EDRPOU 31425855) have until May 12 to submit written proofs of claim to: Liquidator Gavrilov Str. 5 69118 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 19/67/07. The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Technor Central Boulevard 1-b 69000 Zaporozhje Ukraine UKRAINIAN INDUSTRIAL: Creditors Must Register Claims by May 13 -------------------------------------------------------------- Creditors of LLC Ukrainian Industrial Transport (code EDRPOU 31233286) have until May 13 to submit written proofs of claims to: V. Leontiev Liquidator Tankopiya Str. 32 61100 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-19/77-07. The Court is located at: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Ukrainian Industrial Transport Tankopiya Str. 32 61100 Kharkov Ukraine =========================== U N I T E D K I N G D O M =========================== AEON PLC: Brings In Joint Administrators from PwC -------------------------------------------------- Edward Klempka and Colin Michael Trevethyn Haig of PricewaterhouseCoopers LLP were appointed joint administrators of Aeon Plc (Company Number 03228762) and Aeon Pipe Systems Ltd. (Company Number 03677537) on April 19. 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. The company can be reached at: Aeon Pipe Systems Ltd. Belasis Business Centre Coxwold Way Belasis Hall Technology Park Billingham TN23 4EA England Tel: 01642 345690 Fax: 01642 345691 ALBANY BUILDING: Kaupthing Singer Taps Ernst & Young as Receiver ---------------------------------------------------------------- Kaupthing Singer & Friedlander Ltd. appointed R. H. Kelly and C. G. J. King of Ernst & Young LLP joint administrative receivers of The Albany Building Ltd. (Company Number 04309897) on April 5. Ernst & Young -- http://www.ey.com/-- provides broad array of services relating to audit and risk-related services, tax, and transactions across all industries-from emerging growth companies to global powerhouses-deal with a broad range of business issues. Headquartered in Liverpool, England, The Albany Building Ltd. is engaged in property development. BAUSCH & LOMB: Earns US$14.9 Million in Year Ended Dec. 31, 2006 ---------------------------------------------------------------- Bausch & Lomb Incorporated reported net income of US$14.9 million on net sales of US$2.29 billion for the year ended Dec. 31, 2006, compared with net income of US$19.2 million on net sales of US$2.35 billion for the year ended Dec. 31, 2005. Results for 2006 include charges, primarily in Europe, associated with the MoistureLoc recall for product manufactured and sold in 2006. These charges reduced full-year 2006 earnings before income taxes by US$26.7 million and net income by US$19.6 million, of which approximately US$19.1 million is associated with sales returns and other reductions to reported net sales. The company reported operating income of US$114 million in 2006, compared to operating income of US$283.5 million in 2005. The main reason for the decline in operating income was a US$112.7 million decrease in regional segment income, and the increase in operating costs from the research and development segment and the global operations and engineering segment. Research & Development segment operating costs increased 11 percent in 2006, reflecting higher spending in support of projects in late-stage development. Global Operations & Engineering segment operating costs increased 21 percent, primarily reflecting unfavorable manufacturing variances resulting from lower than planned production of vision care products as a result of the MoistureLoc recall, costs associated with the implementation of new automated manufacturing platforms for one-day contact lenses and changes in foreign currency exchange rates. Interest and investment income was US$31 million in 2006, compared to US$20 million in 2005. The increase in 2006 compared to 2005 was principally attributable to higher average interest rates, and higher average investment balances due to incremental borrowing to fund the repatriation of offshore profits late in 2005 under the American Jobs Creation Act of 2004 (AJCA). Interest expense was US$72 million in 2006, compared to US$53 million in 2005. Although total short- and long-term borrowings decreased US$160 million during 2006, average borrowings were higher in 2006 than 2005, because the company borrowed offshore to fund its repatriation program under the AJCA. Additionally, as a result of the company's not filing its financial reports in 2006 on time, the company obtained waivers on its bank and public debt, resulting in the company paying fees in the form of incremental interest to the debt holders. At Dec. 31, 2006, the company's balance sheet showed US$3.27 billion in total assets, US$1.86 billion in total liabilities, US$17.2 million in minority interest, and US$1.39 billion in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1e21 MoistureLoc Recall On May 15, 2006, the company announced a voluntary recall of its MoistureLoc lens care solution. The decision was made following months of investigation into an increase in fungal infections among contact lens wearers in the United States and certain Asian markets. The company's decision to recall the product represented a subsequent event occurring prior to filing its 2005 Annual Report on Form 10-K, but related to product manufactured and sold in 2005. In accordance with GAAP, the company recorded certain items associated with the recall in its 2005 financial results. Liquidity and Financial Resources Cash and cash equivalents decreased from US$721 million at the end of 2005 to US$500 million at the end of 2006, while total outstanding debt decreased from US$992 million at Dec. 31, 2005, to US$833 million at Dec. 31, 2006. The company generated cash of US$125 million from operating activities in 2006, compared to US$239 million in 2005. Higher cash payments for expenditures associated with the MoistureLoc recall, and higher interest and tax payments were the primary drivers of the decrease in operating cash flow. In 2006, the company used US$157 million for investing activities, primarily capital spending and acquisitions, compared to cash used used for investing activities of US$353 million in 2005. The company used US$198 million in 2006 for financing activities. This primarily reflected debt repayment of US$162 million, mainly associated with debt repurchased as a result of a tender offer the company completed in June. On a net basis, the company generated US$342 million in 2005 through financing activities. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). While in Europe, the company maintains operations in Austria, Germany, the Netherlands, Spain, and the United Kingdom. * * * As reported in the Troubled Company Reporter-Europe on Feb. 6, 2007, Moody's Investors Service downgraded Bausch & Lomb Inc.'s senior unsecured debt to Ba1 and continues to review all ratings for possible downgrade. Moody's also assigned the company a Ba1 Corporate Family Rating. BRITISH SKY: Antitrust Probe Could Force ITV Stake Sale ------------------------------------------------------- British Sky Broadcasting plc may be forced to sell some or all of its 17.9% stake in ITV plc after the Office of Fair Trading and the Office of Communications found that the acquisition raises antitrust concerns, Guy Dixon of The Scotsman reports. The regulators' recommendation could lead to a full inquiry by the Competition Commission. According to Alex DeGroote, analyst at Panmure Gordon, Virgin Media Inc. (fka NTL Inc.) could renew its takeover bid for ITV should BSkyB decide to sell the shareholding, Scotsman relates. However, BSkyB said in a statement that it will "continue to engage fully" with the regulatory process. According to Mr. Dixon, BSkyB bought the ITV stake for GBP900 million in November 2006 in an attempt to block NTL from acquiring it. OFT Probe The OFT examined the competition issues raised by the transaction having disclosed on Jan. 12 its provisional view that a relevant merger situation may have been created for the purposes of the Enterprise Act 2002 as a result of BSkyB acquiring material influence over ITV. Its report found that the test for a merger reference to the Competition Commission is met on competition grounds. Following full first-phase review, the OFT's three key findings, to the requisite standard of belief, are that: * a relevant merger situation has been created; * this situation has resulted, or may be expected to result, in a substantial lessening of competition within a market or markets in the U.K.; and * clear cut remedies sufficient to resolve the OFT's competition concerns were not offered. "We have been asked by the Secretary of State to report on the competition issues raised by this transaction," John Fingleton, Chief Executive of the OFT, said. "We have concluded that this partial ownership link between two key players raises significant competition concerns. Sky's shareholding means that ITV is no longer fully independent, and this may alter the future competitive landscape, especially as we approach digital switchover. Given the high stakes for tens of millions of U.K. consumers, we believe these risks to competition merit further examination." Ofcom Probe Ofcom conducted its investigation in response to the Feb. 26 intervention notice of Secretary of State for Trade and Industry Alistair Darling on which cited the public interest consideration specified in the Enterprise Act 2002 concerning the plurality of persons with control of media enterprises. In its report, Ofcom's advice is that there are public interest issues, in relation to sufficient plurality of news provision for both cross media and television news in the U.K. The Secretary of State for Trade and Industry has already received the results of OFT and Ofcom's investigation. The Secretary of State will now study the reports and announce his decision on reference to the Competition Commission on or before the statutory deadline of May 26. OFT and Ofcom will publish their reports on or before this date. About Virgin Media Headquartered in London, England, Virgin Media Inc. (fka NTL Inc.) (NASDAQ: VMED) -- http://virginmedia.com/-- provides broadband, digital television, telephony, content and communications services, reaching over 50% of the U.K. homes and 85% of the U.K. businesses. About BSkyB Headquartered in Isleworth, England, British Sky Broadcasting Group PLC -- http://www.sky.com/-- is the holding company of the British Sky Broadcasting group of companies. British Sky Broadcasting Group plc and its subsidiaries operate the pay television broadcast service in the United Kingdom and Ireland. The Company acquires programming to broadcast on its channels and supplies certain of those channels to cable operators for them to retransmit to their subscribers in the United Kingdom and Ireland. It retails channels (both its own and third parties) to direct-to-home subscribers and to a limited number of digital subscriber line subscribers. The Company also makes three of its channels available via the United Kingdom free-to- air digital terrestrial television platform, which markets itself under the brand Freeview. At Dec. 31, 2006, the Groups' balance sheet showed GBP4.1 billion in total assets, GBP4.3 billion in total liabilities, and GBP145 million in stockholders' deficit. The Group's Dec. 31 balance sheet also showed strained liquidity with GBP1.8 billion in total currents assets available to pay GBP2.2 billion in total liabilities coming due within the next 12 months. CHOPSTICKS AND BOWL: Names Keith Barry Stout Liquidator ------------------------------------------------------- Keith Barry Stout was appointed liquidator of Chopsticks And Bowl Restaurant Ltd. on April 20 for the creditors' voluntary winding-up procedure. The company can be reached at: Chopsticks & Bowl Restaurant Ltd. 19 High Street Lenham Maidstone ME17 2QD England Tel: 01622 858 416 COLLINS & AIKMAN: Secured Creditors Balk at Biz Sale Procedure -------------------------------------------------------------- The Secured Creditors of Collins & Aikman Corp. and its debtor- affiliates objected to the proposed sale procedures for their Carpet & Acoustics Business. As previously reported in the TCR-Europe on April 25, the Debtors have reached an asset purchased agreement with International Automotive Components Group North America, Inc., to sell their Carpet & Acoustics Division for US$134,000,000 in cash to IAC NA. Also known as C&A's Soft Trim operations, the Carpet & Acoustics Division include 16 facilities located in the United States, Canada and Mexico with annual revenues of approximately US$615,000,000. The facilities supply a broad range of automotive interior carpet and acoustic products including molded flooring systems, accessory mats, dash insulators, package trays and trunk liners. After an extensive marketing process and examining the bids received from certain potential buyers, the Debtors and their advisors, in consultation with the agent and the unofficial steering committee for the Debtors' senior, secured prepetition lenders, determined that the offer from IAC NA was the highest and best offer received for the Carpet & Acoustics Business. The terms of the Asset Purchase Agreement dated April 20, negotiated by the parties are: Purchase Price US$134,000,000 in cash plus certain Assumed Liabilities and contingent consideration. Includes an option for the Debtors' senior, secured prepetition lenders to purchase up to 25% of the equity in IAC NA's parent at the equity's cost basis. Purchase Price Deposit US$5,000,000, due upon the entry of an order approving the auction procedures for the Assets. Purchased Assets Substantially all of the assets of the Carpet & Acoustics Business. Excluded Assets Among other things, specified contracts that will not be assumed at Closing, cash, insurance policies, certain deposits, shares of certain capital stock, intellectual property rights not owned or licensed by the Debtors, pre-Closing tax refunds and rebates, pre-Closing claims and causes of action, intercompany receivables, confidential employee personnel and medical records, tax returns, financial statements and Chapter 5 avoidance actions. Assumed Liabilities Among other things, liabilities arising from assumed contracts, certain liabilities from the sale of products or inventory in the ordinary course of business, certain environmental liabilities, accrued payroll of certain employees, certain product liability claims and post-Closing liabilities related to the Carpet & Acoustics Business and the Purchased Assets. Excluded Liabilities All Liabilities other than Assumed Liabilities. Break-Up Fee US$1,340,000, payable upon the consummation of a sale transaction with another bidder for the Purchased Assets. Expense Reimbursement Up to US$3,000,000 in documented out-of- pocket expenses; provided that if the IAC NA terminates the APA as a result of its due diligence on or before May 2, IAC NA will be entitled to half of its documented out-of-pocket expenses incurred since Nov. 1, 2006, up to a maximum of US$750,000. Closing Conditions The conditions to closing include, but are not limited to: -- the Debtors have provided to IAC NA orders of the Ontario Court and the Quebec Superior Court in form vesting the assets of certain of the Debtors' Canadian subsidiaries in IAC NA free and clear of all claims and encumbrances; -- No program or project undertaken by the Sellers with respect to the Business representing US$10,000,000 or more in annual sales will have been terminated by any counterparty thereto; and -- IAC NA will have entered into ratified and binding collective bargaining agreements with the unions currently representing workers in the Debtors' Springfield and Canton facilities, the agreements to be satisfactory to IAC NA in its sole discretion, that are applicable to the bargaining units at the Springfield and Canton locations. Pursuant to the APA, the Debtors will subject the Carpet & Acoustics Business to a further market test through an auction to ensure that the value received for the assets is maximized. The Debtors will pay IAC NA a US$1,340,000 break-up fee, and up to US$3,000,000 in the event C&A sells the business to another bidder. A full-text copy of the APA is available for free at: http://bankrupt.com/misc/Collins_APA_IAC_NA.pdf IAC NA Equity Option Prior to the closing of the APA, secured creditors of C&A will have the option to purchase up to 25% of the equity in IAC NA. The Offered Stock will be deemed to have an aggregate value equal to one-third of the sum of (i) the Pre-Closing Value plus (ii) US$134,000,000. The "Pre-Closing Value" will equal the sum of (i) US$108,266,668, (x) increased if the APA Closing does not occur within four months of the scheduled date of the auction, by 1.5% per month elapsed between the Auction Date and the APA Closing, and (y) increased or decreased, as applicable, by any post- closing adjustments to the purchase price paid or received by IAC NA or its subsidiaries in respect of its acquisition of Lear Corp.'s North American Interior Systems Division business to the extent the adjustment changes the equity invested in the IAC NA, plus (ii) the amount of any additional capital contributions to IAC NA by its members on or prior to the APA Closing, minus (iii) the amount of any capital distributions by IAC NA to its members on or prior to the APA Closing. The "Per Share Value" will equal the Aggregate Value divided by the number of shares of Offered Stock. Each Senior Secured Lender who wishes to be a Subscriber will be required to deliver, eight business days prior to the APA Closing: (1) to IAC NA, executed subscription documentation stating the maximum dollar amount the Subscriber desires to invest in Stock, and (2) to an escrow account specified in the subscription documentation, (x) immediately available funds equal to the maximum amount, (y) an irrevocable direction to C&A to pay to the escrow account funds that would otherwise have been payable for the benefit of the Senior Secured Lender on the effective date of C&A's Chapter 11 plan, or (z) a combination of the immediately available funds and Directed Funds equal to the maximum amount. The Offered Stock will be allocated based on the Subscribers' relative ownership of C&A's senior secured debt in the event of oversubscription. Objections Halcyon Fund, L.P., Longacre Capital Partners (GP) L.P., Schultze Asset Management LLC, and Seven Bridges Capital Management, who are secured creditors to the Debtors, either directly or through managed funds or accounts, hold or have acquired interests in approximately US$105,000,000 in secured claims under the Debtors' prepetition senior secured loan facilities. Under the terms of the Debtors' First Amended Joint Plan, the holders of Prepetition Facility Claims are the principal beneficiaries of any sale of the Carpet & Acoustics Business or Soft Trim Business, which has been touted as the single most important asset to their recovery, the Secured Creditors relate. Joel D. Applebaum, Esq., at Clark Hill PLC, in Detroit, Michigan, states that the proposed sale procedures should be denied on various grounds: (a) The Prepetition Facility Creditors should not get locked into the grossly short proposed schedule and irrevocably saddled with up to US$4,340,000 in proposed bidding protections until they have had a reasonable opportunity to assess the proposed transaction. The Prepetition Facility Creditors were advised that the bulk of their recovery would come from the Carpet & Acoustics Business; however, they only received detailed information about the financial condition and prospects of the Carpet & Acoustics Business, including some of the missing substantial critical information on the purchase agreement on April 26. Earlier information that had been provided on estimated recoveries to Prepetition Facility Creditors had indicated a much higher recovery value to the Carpet & Acoustics Business. Until April 26, the Prepetition Facility Creditors could not have information to assess the Carpet & Acoustics Business itself, they could not even fully assess the value of the purchase agreement on its own terms. (b) Stalking horse bidder IAC NA should not lock in Proposed Bidding Protections before its due diligence "out" of May 2 has expired. Awarding IAC NA protections while it still has the ability to walk away from the transaction is tantamount to a free option and is inappropriate. (c) The Proposed Schedule and Proposed Bidding Protections will not foster maximized recoveries, but make it likely that IAC NA has no competition from other bidders. The Proposed Schedule is so short that it can only fail in its purported purpose to draw in competing bids. Looked at another way, the short timing effectively is another bid protection for IAC NA. (d) The US$3,000,000 expense reimbursement to IAC NA would, but should not, apply if the Carpet & Acoustics Business were retained under the Proposed Plan. The combined protections require that any competing bid be at least US$5,340,000 more than IAC NA's bid. (e) The Proposed Sale Procedures do not, but should explicitly provide that a credit bid by the holder of the liens under the Prepetition Facility is a qualified bid. The Prepetition Facility Creditors are entitled to bid on the Carpet & Acoustics Business pursuant to Section 363(k) of the Bankruptcy Code. Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed US$3,196,700,000 in total assets and US$2,856,600,000 in total debts. The Debtors' disclosure statement explaining their First Amended Joint Chapter 11 Plan was approved on Jan. 25, 2007. The hearing to consider confirmation of the Debtors' Amended Joint Plan is set for April 19, 2007. (Collins & Aikman Bankruptcy News, Issue No. 60; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ECLIPSE 2007-2: Fitch Rates EUR5.75 Million Class E Notes at BB --------------------------------------------------------------- Fitch Ratings assigned expected ratings to Juno Eclipse 2007-2 floating-rate notes due November 2022: -- EUR677 million Class A: 'AAA' -- EUR600,000 Class X: 'AAA' -- EUR69 million Class B: 'AA' -- EUR74.25 million Class C: 'A' -- EUR40.9 million Class D: 'BBB' -- EUR5.75 million Class E: 'BB' Juno Eclipse 2007-2 is Barclays Bank Plc's first fully funded synthetic deal, which has been structured to replicate a traditional "true sale" CMBS issue. The final ratings are contingent upon the receipt of final documents conforming to information already received. The expected ratings reflect the credit enhancement provided to each Class by the subordination of Classes junior to it, the positive and negative features of the underlying collateral, and the integrity of the legal and financial structures. The ratings also address the timely payment of interest on the notes and the ultimate repayment of principal by final legal maturity in November 2022. Initial CE for the Class A notes is provided by subordination of the Class B, C, D and E notes. Likewise, initial CE for the Class B, Class C, Class D notes, is provided by the subordination of those notes junior to them. There is no CE provided to the Class E or Class X notes. The reference loans are secured on a diverse real estate portfolio, comprising 206 properties located throughout Belgium, France, Germany, Italy, Monaco and Sweden. The reference loans have an aggregate cut-off balance of EUR869 million. The underlying real estate has an aggregate market value of EUR1.3 billion, giving a moderate initial weighted-average loan- to-value ratio of 70.8%. Interest for the notes is paid quarterly in arrears on each payment date, commencing in August 2007. To pay interest on the rated notes, the issuer will have several sources of income: -- the swap counterparty payment income or alternative swap counterparty payment income -- reinvestment income from the cash deposit under the CDS or repurchase agreement -- income from the transaction account -- income from authorized investments and -- any liquidity facility drawings under the liquidity facility agreement. This income will be allocated to the notes in accordance with the priority of payments. ECLIPSE 2007-2: S&P Rates EUR5.75 Million Class E Notes at BB ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR867.5 million commercial mortgage- backed floating-rate notes to be issued by JUNO ECLIPSE 2007-2 Ltd., a private limited liability company incorporated in Ireland. JUNO ECLIPSE 2007-2 is the first synthetic CMBS securitization structured by Barclays Bank PLC and will be the second pan- European CMBS transaction from the Barclays "Eclipse" program. The transaction is a fully funded synthetic securitization of 17 commercial real-estate-backed loans across Europe. The structure seeks to mimic a vanilla true sale transaction, so the issuer's cash flows and the noteholders' credit risk are synthetically linked to the performance of the loan reference pool. All of the reference loans were originated by Barclays Bank and are serviced by Barclays Capital Mortgage Servicing Ltd. Barclays will be the lender of record at the closing date and the loans will be referenced in the arrangements between Barclays and the issuer. At closing, the proceeds of the EUR867.5 million issuance will be deposited in a bank account, as the collateral will be used as security for the rated notes. The credit ratings reflect the quality and diversity of the underlying reference pool of commercial mortgages, the underlying note security, and the ability of Barclays to service the loan reference pool. The ratings also address the ability of the issuer to meet timely payments of interest and repayment of principal not later than final legal maturity. Ratings List JUNO (ECLIPSE 2007-2) Ltd. EUR867.5 Million Commercial Mortgage-Backed Floating-Rate Notes Prelim. Prelim. Amount Class rating (Mil. EUR) ----- ------ -------- A AAA 677.00 X AAA 0.60 B AA 69.00 C A 74.25 D BBB 40.90 E BB 5.75 GENCIA LTD: Appoints Alan H. Tomlinson as Liquidator ---------------------------------------------------- Alan H. Tomlinson of Tomlinsons was appointed liquidator of Gencia Ltd. on April 20 for the creditors' voluntary winding-up procedure. Tomlinsons -- http://www.tomlinsons.co.uk/-- specializes in all types of business recovery and insolvency procedures, as well as offering advice to companies and individuals who believe they may be heading towards, or are already in, financial difficulty. The company can be reached at: Gencia Ltd. Desley Heath Farm Cogshall Lane Little Leigh Northwich CW9 6BN England Fax: 01244 394 214 GENERAL MOTORS: Three Execs Continue Voluntary Salary Reductions ---------------------------------------------------------------- General Motors Corporation disclosed last week in a regulatory filing with the U.S. Securities and Exchange Commission the changes in the base salary of certain of the company's key executives. According to GM, the base salary of the company's chief executive officer, G. Richard Wagoner, Jr., was US$2.2 million at the beginning of 2006, and that Mr. Wagoner has not received a base salary increase for over four years. Meanwhile, GM says it vice chairmen, Frederick A. Henderson, Robert A. Lutz, and J. M. Devine, had base salaries of US$1.55 million at the beginning of 2006. The salary was established for Messrs. Lutz and Devine in January 2003 and for Mr. Henderson at the time he was promoted to the position of Vice Chairman and Chief Financial Officer on Jan. 1, 2006. In addition, GM notes that the base salary for the company's executive vice president for law & public policy, Thomas A. Gottschalk, was US$1.0 million at the beginning of 2006. Further, the base salary for the company's group vice president for global manufacturing and labor relations, G. L. Cowger, was increased to US$900,000 on Nov. 1, 2006; it had been 33 months since his last base salary increase. Effective March 1, 2006, Messrs. Wagoner, Henderson, Lutz, Gottschalk, and Devine voluntarily reduced their salaries in support of the GMNA Turnaround Plan. The Executive Compensation Committee of GM's Board of Directors considered that salary reductions among top leaders are unusual and the magnitude of the reductions for GM's executive officers would substantially exceed the few reductions that had taken place at other companies. However, the Committee supported their voluntary actions. Mr. Wagoner reduced his salary by 50 percent to US$1,100,000; Messrs. Henderson, Lutz, and Devine by 30 percent to US$1,085,000; and Mr. Gottschalk by 10 percent to US$900,000. Messrs. Wagoner, Henderson, and Lutz recently reviewed the matter and, in support of the continued turnaround plan for GM, again decided that beginning March 1, 2007, they will continue voluntary salary reductions. The Committee agreed with the approach. Mr. Wagoner's salary will be US$1.65 million, 25 percent less than his January 1, 2006 base salary of US$2.2 million. The salaries of Messrs. Henderson and Lutz will be US$1.318 million, 15 percent less than their January 1, 2006 base salaries of US$1.55 million. 2007 Long-Term Incentive Plan The Compensation Committee is proposing a long-term incentive plan for GM's executives with these key features: -- New authorized share pool of 16 million shares is approximately 2.82 percent of common shares outstanding; -- No more than 1.5 million of the 16 million shares requested will be granted as Restricted Stock Units; -- Performance awards, generally linked to three-year performance measures, to be settled in cash only; -- Plan term of five years; -- Commitment to limit aggregate annual grants of stock options and RSUs to less than 1 percent; -- No repricing of options without stockholder approval; -- Three-year, ratable vesting on stock option awards, subject to the Committee's review; -- Three-year vesting on time-based RSU awards; -- Plan is administered by the Committee, composed of only Independent Directors; -- No discounted options; -- "Double-trigger" Change in Control benefits; and -- Shares surrendered, expired, or returned to the Corporation to satisfy the exercise price or tax withholding obligations for stock options cannot be reissued, i.e., no liberal share accounting provisions. The proposal, along with other matters, will be voted upon by GM's shareholders at an annual meeting at 9:00 a.m. local time on Tuesday, June 5, 2007, at the Hotel du Pont, 11th and Market Streets, in Wilmington, Delaware. Holders of record of GM Common Stock, US$12/3 par value, at the close of business on April 9, 2007, are entitled to vote at the meeting. 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 for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * As reported in the Troubled Company Reporter 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 Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the US$1.5 billion secured term loan of General Motors Corp. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the US$1.5 billion secured term loan of General Motors Corp. GOSHAWK INSURANCE: Posts US$977,000 Net Losses in Full Year 2006 ---------------------------------------------------------------- GoshawK Insurance Holdings Plc released its financial results for the year ended Dec. 31, 2006. GoshawK posted US$977,000 in net losses against US$14.2 million in net revenues for the year ended Dec. 31, 2006, compared with US$143.1 million in net losses against US$79.9 million in net revenues for the same period in 2005. At Dec. 31, 2006, Goshawk's consolidated balance sheet showed US$390.2 million in total assets, US$322.6 million in total liabilities and US$67.6 million in stockholders' equity. Issues that the group has faced have included: -- catastrophic underwriting losses during 2005 at the principal subsidiary, Rosemont Reinsurance Ltd. leading to the amendment of its license by the local regulator, the Bermuda Monetary Authority, to require its approval to make any distributions to its parent companies; -- a consequent breach until Oct. 27, 2006 of the group's banking covenants with the inevitable penalty charges and increased interest rates that follow, leading in turn to a need to refinance the group with further equity; -- the resignation of almost all of the staff following the sale of renewal rights; -- on-going risk from underwriting of unexpired policies, reserving and exposure to non-receipt of the reinsurance asset. By the year end all identified policy periods had expired, though it is possible that some underlying policies may still be current; and -- long-tail legacy underwriting exposures where reserving is inherently very uncertain. As a result of the breach of the banking covenants, some of the specific steps that the new board has had to take to persuade the banks not to exercise their security rights have included: -- the repayment to the banks of a GBP15-million loan by way of a return of capital from Rosemont Re (as it had stood as guarantor); -- the equity increase through a rights issue and subsequent repayment of a further US$24.7 million to the banks; -- the renegotiation of the banking agreements and resetting of the covenants; and -- an amendment of the minimum net asset value covenant to reflect the further deterioration of the expected ultimate losses at Rosemont Re. As a result of the challenging circumstances faced at Rosemont Re, some of the steps taken have included: -- the appointment of specialist run-off management in Bermuda; -- the appointment on Oct. 23, 2006 of PRO Insurance Solutions Limited, a specialist run-off service provider in the U.K., to administer the run-off strategy; -- regular meetings with the BMA updating them on progress made and seeking approval for the GBP15 million return of capital and service provision outsource; -- the cancellation of policies still on risk where possible, coupled with selective reinsurance purchases to minimize the risk of new losses being incurred; and -- a disciplined approach to challenging exposure under legacy non-catastrophic long-tail business. Regrettably this was not always successful and the arbitration process against Harco in respect of Bail Bonds resulted in an adverse decision in excess of the carried reserves. The strategy going forward within Rosemont Re will be to continue to manage in a disciplined way its liabilities together with a pro-active approach to commuting loss reserves and exposure. While a number of commutations were completed during 2006 there can be no certainty that reserves stabilize or counterparties agree to further commutations. Without such agreements the company remains at risk of further deterioration of loss reserves. Attention is also being placed on the reinsurance asset, which totals US$132.5 million. There is a risk that reinsurers themselves get into financial difficulty, thereby reducing the likelihood of reinsurance recovery. If the liabilities are settled and uncertainty reduced consideration can be given to obtaining reinsurance to reduce the likelihood of further deterioration and approval may be sought from the BMA for the release of any surplus capital. As the net assets of Rosemont Re are significantly below the US$100 million required by its insurance license, consent from the BMA would be required for any such distribution. A further option would be to undertake a scheme of arrangement with policyholders. Such a scheme would require the approval of 75% of Rosemont Re's creditors. Areas of focus outside Rosemont Re of which the first two are discussed more fully within the "Enhanced business review" section of the directors' report have included: -- continued investigation into maximizing the deferred consideration from the sale of GoshawK Dedicated (No. 2) Limited; -- an agreed contract for the expedient recovery of the war consortium monies due to GK Consortium Management Limited; -- an outsource contract with PRO to provide services to the rest of the group from March 1; and -- the continued rationalisation of the dormant subsidiaries within the group, where permitted. Outlook The outlook remains very uncertain and there can be no assurance that the strategy will be successful or that the liabilities of Rosemont Re will remain at the level estimated by directors. Further, even if the liabilities do settle at the level reserved there can be no guarantee that a surplus will be released. As a return of surplus from Rosemont Re remains core to the strategy to repay the banks there remains considerable risk. As well as risks around reserve adequacy the group is exposed to the risk of key staff leaving, although this has been mitigated to some extent by the decision to outsource some of the operations. The earliest any distribution might be possible, if at all, is after accounts for the year ended 2008 are published in 2009. Going Concern The group has no trading income and so has only the residual proceeds of the recent rights issue to provide working capital. Other than in respect of its U.K. subsidiaries the company cannot expect to receive distributions from within the group because the statutory solvency of Rosemont Re, its principal subsidiary, has fallen below the minimum level required of it by its regulator, the BMA, and so it will require specific consent before making any distributions. There can be no certainty that the BMA would agree to such a distribution. The independent actuary has produced a range of reserves for Rosemont Re. The group has provided net reserves of US$141 million (2005: US$303 million). This year, the actuary's resulting low and high estimates were US$49 million below and US$42 million above the net reserves. The range is provided in an attempt to quantify some of the uncertainty in estimating ultimate losses and does not present the bounds of all possible outcomes. Indeed it is possible that the final cost to settle claims may still be more than available capital resources. Any increases in the expected ultimate cost of Rosemont Re's claims will reduce the likelihood of the BMA agreeing to any return of capital prior to full run-off of all its outstanding liabilities. Furthermore, under the terms of the facility agreement renegotiated with lenders on Aug. 23, 2006, Rosemont Re is required to maintain a minimum level of net assets. Following the work by the external actuary on the reserves of Rosemont Re at Dec. 31, 2006, it was recognized that the net asset value of Rosemont Re might fall below the covenanted level requiring an amendment that was granted by the lending banks in April 2007. An increase of no more than 1.5% of the gross liabilities (US$4 million) of Rosemont Re would cause the group to breach its covenant. Additional interest is payable at a rate of 12.5% on the average principle amount outstanding for the period from May 1, 2008 to April 30, 2009. This increase will place additional strain on group resources. Despite the uncertainty arising from the matters discussed, and having considered the likelihood of success of the possible options available, including if necessary the sale of Rosemont Re, the directors are satisfied that the group is currently a going concern and that the preparation of these accounts on that basis is appropriate. About the Companies GoshawK Insurance Holdings plc, a public limited company incorporated and domiciled in the United Kingdom, together with its subsidiaries transacted reinsurance business through its Bermuda-based subsidiary Rosemont Reinsurance Ltd. Through Rosemont Re, the group provided catastrophe reinsurance of property and marine risks worldwide. As a result of the 2005 hurricane losses to Rosemont Re, its subsequent credit rating downgrade and its inability to raise additional capital or find a buyer, Rosemont Re was placed into run-off in October 2005. HARRY KINDRED: HSBC Bank Appoints Deloitte & Touche as Receivers ---------------------------------------------------------------- HSBC Bank Plc appointed Ian Brown and Neil Matthews of Deloitte & Touche LLP joint administrative receivers of Harry Kindred (Newcastle) Ltd. (Company Number 468652) on April 17. 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. The company can be reached at: Harry Kindred (Newcastle) Ltd. 371 West Road Newcastle Upon Tyne NE15 7PU England Tel: 0191 274 2802 Fax: 0191 274 9112 HILTON HOTELS: Earns US$95 Million in 2007 First Quarter -------------------------------------------------------- Hilton Hotels Corporation reported financial results for the first quarter ended March 31, 2007. First quarter highlights compared to the first quarter of 2006 are as follows: * Total company Adjusted EBITDA of US$371 million, up 13%. * Fees up 16% to US$176 million on strong RevPAR and unit growth and the Hilton International acquisition. * Pro forma comparable system-wide RevPAR increased 8.9%, driven by strong rate increases and high demand in most major markets. Hilton reported first quarter 2007 net income of US$95 million compared with US$104 million in the 2006 quarter. Diluted net income per share was US$.23 in the 2007 first quarter, versus US$.26 in the 2006 period. Excluding non-recurring items in both periods and assuming the Hilton International acquisition occurred January 1, 2006 diluted EPS totaled US$.20 per share in the 2007 quarter, a 33 % increase from US$.15 per share in the 2006 period. Non-recurring items combined to benefit the 2007-quarter by US$.03 per share as follows: * US$30 million pre-tax gain on asset dispositions and other; * US$8 million pre-tax loss on foreign currency transactions. The 2006 first quarter benefited from non-recurring items totaling US$.06 per share. Additionally, had the HI acquisition been completed on January 1, 2006, first quarter 2006 results would have been reduced by approximately US$.05 per share due to the seasonally weak business environment in the first two months of the year. Net income from the Scandic hotel system, the sale of which was announced on March 2, 2007 and completed on April 26, 2007, is reflected as discontinued operations. The company reported first quarter 2007 total operating income of US$228 million, on total revenue of US$1.864 billion. Total company earnings before interest, taxes, depreciation and amortization were US$371 million, an increase of 13 % from US$328 million in the 2006 quarter. System-wide RevPAR; Management/Franchise Fees All of the company's brands reported significant system-wide revenue-per-available-room increases, with particularly strong gains in average daily rate. On a system-wide basis and pro forma as if the acquisition of HI had occurred January 1, 2006, first quarter RevPAR increased 8.9 % compared to the 2006 period. The company's brands showed first quarter RevPAR gains as follows: Conrad, 13.2 %; Hilton, 10.3 %; Doubletree, 8.8 %; Homewood Suites by Hilton, 8.0 %; Hilton Garden Inn, 7.9 %; Hampton Inn, 7.8 %; and Embassy Suites, 6.3 %. Management and franchise fees increased 16 % in the first quarter to US$176 million, benefiting from RevPAR gains, the addition of new units and the acquisition of HI. 2006 fees include HI from February 23, 2006 and a one-time US$15 million management contract termination fee related to a sold joint venture property. Adjusting for a full quarter of HI and this one-time termination fee, fee income increased 17 % in the first quarter. Owned Hotel Results Continued strong demand trends, primarily among leisure and business travelers, resulted in high single digit or double digit ADR increases at many of the company's gateway hotels around the world. Business transient, group and leisure all showed significant ADR gains. Across all brands, revenue from the company's owned hotels was US$571 million in the first quarter 2007, a 13 % increase from US$507 million in the 2006 quarter. Total owned hotel expenses were up 13 % in the quarter to US$429 million. Owned results exclude hotels that have been classified as discontinued operations in connection with the Scandic sale. Comparable North America owned revenue and expenses increased 6.1 % and 6.3 %, respectively. Expenses were impacted by higher insurance costs. RevPAR from comparable N.A. owned hotels increased 6.0 %. Comparable owned N.A. hotel occupancy decreased 0.5 points to 74.4 %, while ADR increased 6.8 % to US$198.19. Particularly strong RevPAR growth was reported at the company's owned hotels in New York, Chicago and Washington. Comparable N.A. owned hotel margins in the first quarter decreased 10 basis points to 24.4 %. The aforementioned higher insurance costs impacted margin growth by approximately 70 basis points. Renovation activity at the Hilton New York negatively impacted comparable results in the quarter. Renovations are expected to continue at the Hilton New York, the Waldorf=Astoria and the Hilton Hawaiian Village in 2007. Additionally, the Hilton San Francisco and Hilton Waikoloa Village were challenged by soft group markets. On a pro forma basis, as if the acquisition of HI had occurred January 1, 2006, comparable international owned revenue and expenses increased 10.7 % and 9.4 %, respectively. Pro forma RevPAR from international comparable owned hotels increased 11.8 %. Occupancy increased 0.3 points to 67.8 %, while ADR increased 11.3 % to US$157.45. Strong results were reported in Luxembourg, Amsterdam, Sydney and across the U.K. Adjusting for the impact of foreign exchange, RevPAR from international comparable owned hotels increased 4.8 %. Pro forma comparable international owned margins improved 90 basis points to 22.2 %. On a worldwide basis, pro forma comparable owned RevPAR increased 7.3 %, with margins flat at 23.8 %. Excluding the impact of foreign exchange, worldwide pro forma comparable owned RevPAR increased 5.7 %. Leased Hotels Revenue from leased hotels was US$455 million in the first quarter 2007 compared to US$189 million in the 2006 quarter, while leased expenses were US$413 million in the current quarter versus US$169 million last year. The EBITDAR-to-rent coverage ratio was 1.4 times in the quarter. Leased results exclude hotels that have been classified as discontinued operations in connection with the Scandic sale. Pro forma comparable leased revenue increased 13.4 %, leased expenses increased 10.2 %, and margins increased 260 basis points to 9.3 %. RevPAR from leased properties increased 16.4 %. Adjusting for the impact of foreign exchange, RevPAR from comparable leased hotels increased 9.2 %, reflective of business strength in the U.K. and Germany. Hilton Grand Vacations Hilton Grand Vacations Company, the company's vacation ownership business, reported a 35 % decline in profitability in the first quarter, due to %age-of-completion accounting associated with new projects. Revenue and expenses associated with projects in development are deferred to correspond with the pace of construction. Unit sales declined 8 %, however average unit sales prices increased 42 % over last year, with the increase driven by new projects in Hawaii. HGVC had first quarter revenue of US$146 million, a 20 % decrease from US$183 million in the 2006-quarter. Expenses were US$114 million in the first quarter, compared with US$134 million in the 2006 period. Brand Development/Unit Growth In the first quarter, the company added 44 properties and 6,865 rooms to its system as follows: Hampton Inn, 22 hotels and 1,940 rooms; Hilton, 9 hotels and 2,798 rooms; Hilton Garden Inn, 6 hotels and 774 rooms; Doubletree, 2 hotels and 548 rooms; Homewood Suites by Hilton, 4 hotels and 427 rooms; Embassy Suites, 1 hotel and 308 rooms, and Hilton Grand Vacations, 70 units. Fourteen hotels and 2,872 rooms were removed from the system during the quarter. During the first quarter, the company added new domestic Hilton hotels in Providence, Ft. Lauderdale, Branson, and Oklahoma City. The company added new international Hilton hotels in Sicily, Italy; Hefei, China; Warsaw, Poland; and the U.A.E. The company added new Doubletree hotels in Chicago, Illinois and Augusta, Georgia. The company opened its 1,400th Hampton Inn, representing its 140,000th room, in Chicago. Also during the quarter, the company entered into management agreements for a Conrad in Abu Dhabi, Hiltons in Costa Rica and Jordan, and a Doubletree in Costa Rica. Early in the second quarter 2007, the company announced the ground breaking of the 498-room Waldorf=Astoria at Bonnet Creek and the 1,000-room Hilton Bonnet Creek, part of a resort development adjacent to the Walt Disney World(R) Resort in Florida. The company expects to break ground on the 1,400-room Hilton Orlando at the Orange County Convention Center in the second quarter of 2007. All three hotels will be managed by the company upon completion, which is scheduled for late 2009. During the first quarter, Hilton Garden Inn was named the "Best Mid-Price Hotel Value" by Entrepreneur (TM) magazine for the second consecutive year. At March 31, 2007, the Hilton worldwide system consisted of 2,838 hotels and 483,090 rooms. The system count excludes 129 properties that left the system in April 2007 in connection with the sale of the Scandic brand. The company's current development pipeline is its biggest yet, and the largest for any U.S.-based hotel company, with more than 800 hotels and 111,000 rooms at March 31, 2007. Approximately 90 % of the hotels in the current development pipeline are in the Americas, though international development is expected to comprise an increasingly larger %age of the company's unit growth within the next two years. Asset Dispositions The company completed the sale of the Scandic chain for EUR833 million or approximately US$1.1 billion. The company also entered into an agreement to sell up to 10 hotels in Continental Europe to Morgan Stanley Real Estate for EUR566 million or approximately US$770 million. Additionally, the company is in advanced stages of documentation with preferred buyers of the Hilton Caledonian in Scotland, the Hilton Washington in the District of Columbia and a number of the other domestic assets that were being put on the market for sale late last year. The company expects to close on the majority of these asset sales by mid-summer. Net proceeds from sales will be used to pay down debt. Corporate Finance At March 31, 2007, Hilton had total debt of US$7.06 billion (net of approximately US$500 million of debt and capital lease obligations resulting from the consolidation of certain joint venture entities and a managed hotel, which are non-recourse to Hilton). Of the US$7.06 billion, approximately 54 % is floating rate debt. Total cash and equivalents (including restricted cash of approximately US$325 million) were approximately US$476 million at March 31, 2007. The increase in debt from December 31, 2006 was due to borrowings under the company's revolving credit facilities, primarily due to the seasonality of the first quarter and the timing of capital expenditures, including timeshare development. Hilton's debt currently has an average life of approximately 5.9 years, at an average cost of approximately 6.6 %. The company's average basic and diluted share counts for the first quarter were 389 million and 424 million, respectively. Hilton's effective tax rate for continuing operations in the first quarter 2007 was approximately 35 %. Total capital expenditures in the first quarter were approximately US$167 million, including approximately US$77 million expended for timeshare development. 2007 Outlook The company provided the following updated estimates for full- year 2007. The sale of Scandic (including the use of net proceeds to reduce debt) is expected to reduce the company's 2007 recurring EPS by US$.10 per share. This impact has been reflected in the estimates provided below. The outlook, however, excludes any non-recurring gains or losses related to the disposition of Scandic, the impact of future asset sales, share repurchases or other potential significant transactions. Total capital spending in 2007 is expected to be approximately US$1.0 billion as follows: approximately US$290 million for routine improvements and technology, approximately US$380 million for timeshare projects, and approximately US$330 million for hotel renovation, special projects and hotel investments. To the extent the company completes additional asset sales, capital expenditures would be expected to decrease. The company expects to add approximately 255 hotels and 35,000 rooms to its system in 2007. Stephen F. Bollenbach, Hilton co-chairman and chief executive officer, said: "Last year's acquisition of Hilton International is proving - as we expected - to be a tremendous benefit to our company, our customers and our shareholders as international results have been excellent since we completed the acquisition. "We continue to have great success in opening full-service Hilton hotels in markets around the world and are making significant progress in signing up new deals globally across our Family of Brands, as evidenced by our recently announced ventures in China and India, and developments in Russia and other parts of the world. To further accelerate our shift to a fee-based company, we are bolstering our international development resources to facilitate our ability to secure new contracts. "An important component of our strategy is the asset disposition program, which we began in 2005. We are seeing continued terrific results on that front as well, the latest example being the recently sale of our 10 assets in Continental Europe. We executed this transaction at a great price and expect to retain management agreements on a majority of the hotels." Mr. Bollenbach concluded: "We are excited about the strength of our business, the enthusiasm of our team members and the opportunities to continue our worldwide growth. Our future could not be brighter as we strengthen our position as the premier global lodging industry company." About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported in the TCR-Europe on May 1, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. Standard & Poor's rating upgrade for Hilton Hotels in March 2007 incorporated the expectation that the company would sell a meaningful level of additional assets over the near term, which would likely lead to additional debt reduction. Still, Standard & Poor's is encouraged by the expected transaction multiple related to today's announcement. If the lodging transaction market remains strong, enabling Hilton Hotels to generate substantial proceeds from remaining asset sales, if these proceeds are used for debt reduction, and if the lodging environment remains strong, an outlook revision to positive could be considered as 2007 progresses. Any movement signaling the potential for a higher rating will depend on Hilton Hotels's commitment to maintaining credit measures aligned with higher ratings over the lodging cycle. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. KUDOS INFORMATION: Taps Joint Administrators from Baker Tilly ------------------------------------------------------------- Matthew Richard, Meadley Wild and Lindsey Jane Cooper of Baker Tilly Restructuring and Recovery LLP were appointed joint administrators of Kudos Information Ltd. (Company Number 04024519) on April 3. Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing and other services for mid-cap and smaller publicly listed companies and private companies, particularly those expanding into new foreign markets. Services include business and financial planning, tax-related services, corporate finance, litigation support, turnaround services, and technology consulting. The company can be reached at: Kudos Information Ltd. 27 Hanson Street City of Westminster London W1W 6TR England Tel: 020 7462 4870 Fax: 020 7462 4871 LUCKSBRIDGE NURSERIES: Names Joint Administrators from Vantis ------------------------------------------------------------- Geoffrey Paul Rowley and Simon Elliott Glyn of Vantis Plc were appointed joint administrators of Lucksbridge Nurseries Ltd. (Company Number 01336236) on April 16. Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. The company can be reached at: Lucksbridge Nurseries Ltd. Treene Broadgate Drove Moulton Chapel Spalding PE12 0XU England Tel: 01406 380 007 Fax: 01406 380 767 MAGGIE CAROL: Hires Richard Ian Williamson as Liquidator --------------------------------------------------------- Richard Ian Williamson of Campbell Crossley and Davis was appointed liquidator of Maggie Carol Ltd. on April 19 for the creditors' voluntary winding-up proceeding. The company can be reached at: Maggie Carol Ltd. Unit 1-2 Laneside Court Fallbarn Road Rossendale BB4 7NT England Tel: 01706 228 879 Fax: 01706 228 879 NORTH LONDON: Brings In Baker Tilly as Administrators ----------------------------------------------------- Adrian David Allen and Nigel Millar of Baker Tilly Restructuring and Recovery LLP were appointed joint administrators of North London Lofts Ltd. (Company Number 04208150) on April 16. Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing and other services for mid-cap and smaller publicly listed companies and private companies, particularly those expanding into new foreign markets. Services include business and financial planning, tax-related services, corporate finance, litigation support, turnaround services, and technology consulting. The company can be reached at: North London Lofts Ltd. Unit D E 208 Maybank Road Redbridge London E18 1ET England Tel: 0800 454 4191 ORION TRADING: Taps Liquidator from Rendell Thompson ---------------------------------------------------- Robert James Thompson of Rendell Thompson was appointed liquidator of Orion Trading Ltd. (t/a Le Petit Train) on April 18 for the creditors' voluntary winding-up proceeding. The company can be reached at: Orion Trading Ltd. The Fairway Weybridge KT13 0RZ England Tel: 01932 336 728 PICCADILLY TRANSPORT: Claims Filing Period Ends June 18 ------------------------------------------------------- Creditors of Piccadilly Transport Ltd. have until June 18 to detail their names and addresses (and solicitors if applicable) together with particulars of their debts or claims, in writing, or in person, to: Duncan R. Beat Liquidator Tenon Recovery 75 Springfield Road Chelmsford Essex CM2 6JB England Duncan R. Beat of Tenon Recovery was appointed liquidator of the company on April 19. PURPLE STATIONERY: Joint Liquidators Take Over Operations --------------------------------------------------------- Filippa Connor and Jeffrey Brenner of B & C Associates were appointed joint liquidators of Purple Stationery Ltd. on April 5 for the creditors' voluntary winding-up proceeding. The company can be reached at: Purple Stationery Ltd. Victoria House 28-32 Desborough Street High Wycombe HP11 2NF England Tel: 01494 601 073 Fax: 01494 601 074 RAYMAR COATINGS: Brings In Liquidator from Butcher Woods -------------------------------------------------------- Roderick Graham Butcher of Butcher Woods was appointed liquidator of Raymar Coatings Ltd. on April 19 for the creditors' voluntary winding-up proceeding. The company can be reached at: Raymar Coatings Ltd. 237 South Road Hockley Birmingham B18 5JS England Tel: 0121 551 6474 RECORDVIEW LTD: Names Liquidator to Wind-Up Business ---------------------------------------------------- Richard Ian Williamson of Campbell Crossley and Davis was appointed liquidator of Recordview Ltd. on April 20 for the creditors' voluntary winding-up proceeding. The company can be reached at: Recordview Ltd. 35 Wigan Road Ashton-in-Makerfield Wigan WN4 9AR England Tel: 01942 711 519 Fax: 01942 271 642 SANDBACH TREATMENT: Appoints Administrators from Begbies Traynor ---------------------------------------------------------------- G. N. Lee and K. J. Coates of Begbies Traynor were appointed joint administrators of Sandbach Treatment Services Ltd. (Company Number 02449267) on April 23. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: Sandbach Treatment Services Ltd. The Old Stables Green Lane Moston Sandbach CW11 3QG England Tel: 01270 753 338 Fax: 01270 526 020 UNITED ONLINE: Calls In Liquidator from Ward & Co. -------------------------------------------------- Lyn Marie Green of Ward & Co. was appointed liquidator of United Online Trading Ltd. on April 13 for the creditors' voluntary winding-up procedure. The company can be reached at: United Online Trading Ltd. Broad Ground Road Redditch B98 8YP England Tel: 01527 526 234 VIRGIN MEDIA: BSkyB Antitrust Probe Could Launch Fresh ITV Bid -------------------------------------------------------------- British Sky Broadcasting plc may be forced to sell some or all of its 17.9% stake in ITV plc after the Office of Fair Trading and the Office of Communications found that the acquisition raises antitrust concerns, Guy Dixon of The Scotsman reports. The regulators' recommendation could lead to a full inquiry by the Competition Commission. According to Alex DeGroote, analyst at Panmure Gordon, Virgin Media Inc. (fka NTL Inc.) could renew its takeover bid for ITV should BSkyB decide to sell the shareholding, Scotsman relates. However, BSkyB said in a statement that it will "continue to engage fully" with the regulatory process. According to Mr. Dixon, BSkyB bought the ITV stake for GBP900 million in November 2006 in an attempt to block NTL from acquiring it. OFT Probe The OFT examined the competition issues raised by the transaction having disclosed on Jan. 12 its provisional view that a relevant merger situation may have been created for the purposes of the Enterprise Act 2002 as a result of BSkyB acquiring material influence over ITV. Its report found that the test for a merger reference to the Competition Commission is met on competition grounds. Following full first-phase review, the OFT's three key findings, to the requisite standard of belief, are that: * a relevant merger situation has been created; * this situation has resulted, or may be expected to result, in a substantial lessening of competition within a market or markets in the U.K.; and * clear cut remedies sufficient to resolve the OFT's competition concerns were not offered. "We have been asked by the Secretary of State to report on the competition issues raised by this transaction," John Fingleton, Chief Executive of the OFT, said. "We have concluded that this partial ownership link between two key players raises significant competition concerns. Sky's shareholding means that ITV is no longer fully independent, and this may alter the future competitive landscape, especially as we approach digital switchover. Given the high stakes for tens of millions of U.K. consumers, we believe these risks to competition merit further examination." Ofcom Probe Ofcom conducted its investigation in response to the Feb. 26 intervention notice of Secretary of State for Trade and Industry Alistair Darling on which cited the public interest consideration specified in the Enterprise Act 2002 concerning the plurality of persons with control of media enterprises. In its report, Ofcom's advice is that there are public interest issues, in relation to sufficient plurality of news provision for both cross media and television news in the U.K. The Secretary of State for Trade and Industry has already received the results of OFT and Ofcom's investigation. The Secretary of State will now study the reports and announce his decision on reference to the Competition Commission on or before the statutory deadline of May 26. OFT and Ofcom will publish their reports on or before this date. About BSkyB Headquartered in Isleworth, England, British Sky Broadcasting Group PLC -- http://www.sky.com/-- is the holding company of the British Sky Broadcasting group of companies. British Sky Broadcasting Group plc and its subsidiaries operate the pay television broadcast service in the United Kingdom and Ireland. The Company acquires programming to broadcast on its channels and supplies certain of those channels to cable operators for them to retransmit to their subscribers in the United Kingdom and Ireland. It retails channels (both its own and third parties) to direct-to-home subscribers and to a limited number of digital subscriber line subscribers. The Company also makes three of its channels available via the United Kingdom free-to- air digital terrestrial television platform, which markets itself under the brand Freeview. About Virgin Media Headquartered in London, England, Virgin Media Inc. (fka NTL Inc.) (NASDAQ: VMED) -- http://virginmedia.com/-- provides broadband, digital television, telephony, content and communications services, reaching over 50% of the U.K. homes and 85% of the U.K. businesses. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa last week, the rating agency confirmed its Ba3 Corporate Family Rating for Virgin Media Inc. Moody's also assigned a Ba3 Probability-of-Default Rating to the company. The implementation of the LGD methodology in EMEA follows the introduction of the methodology in September 2006. Most of the rating actions Moody's confirmed relate to senior secured loans. * Issuer: Virgin Media Finance PLC Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- 9.75% Sr. Unsec. Regular Bond/Debenture Due 2014 B2 B2 LGD6 93% 8.75% Sr. Unsec. Regular Bond/Debenture Due 2014 B2 B2 LGD6 93% 9.125% Sr. Unsec. Regular Bond/ Debenture Due 2016 B2 B2 LGD6 93% * Issuer: Virgin Media Investment Holdings Ltd. Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Unsec. Bank Credit Facility Due 2013 B1 B2 LGD5 86% Sr. Sec. Bank Credit Facility Due 2011 Ba3 Ba2 LGD3 39% Sr. Sec. Bank Credit Facility Due 2012 Ba3 Ba2 LGD3 39% As reported in the TCR-Europe on March 23, Standard & Poor's Ratings Services affirmed its 'BB-' senior secured debt rating and '1' recovery rating on Virgin Media Investment Holdings Ltd.'s GBP4.98 billion senior secured facilities. The '1' recovery rating reflects the rating agency's expectations of full recovery of principal in the event of a payment default. WATERMARK GROUP: Earns GBP2.8 Million in Full Year 2006 ------------------------------------------------------- Watermark Group plc released its preliminary financial results for the year ended Dec. 31, 2006. Watermark reported GBP2.8 million in net profit against GBP94 million in revenues for the year ended Dec. 31, 2006, compared with GBP3.8 million in net profit against GBP80.1 million in revenues for the same period in 2005. At Dec. 31, 2006, the Company's consolidated balance sheet showed GBP78.4 million in total assets, GBP39.6 million in total liabilities and GBP38.9 million in total stockholders' equity. The Company's balance sheet at Dec. 31, 2006, also showed strained liquidity with GBP35.1 million in total current assets available to pay GBP39.1 million in total liabilities coming due within the next 12 months. "For the medium term and beyond, the Board believes that the outlook for the business is positive, with significant opportunities to expand both in the U.K. and overseas, particularly through our Encompass total cabin management program supported by long term contracts for group services. The Board recognizes that the past year has been a period of reorganization, but strongly believes that the actions it has undertaken, and which will be completed in 2007, combined with the refinancing and proposed board changes, will place the Group in a more robust position for the future," Danny Bernstein, Interim Chairman of Watermark, said. Proposed Refinancing The Company has undertaken the Placing and Offer in order to raise new capital to repay existing indebtedness owed to Barclays Bank PLC, to fund the payment of the final deferred cash consideration due pursuant to the Air Fayre sale and purchase agreement and to provide working capital for the Group, including for the new Air Canada contract. The board believes this refinancing to be particularly critical in a year, which the board expects to be a transitional period for the Company, as the restructuring and rationalization process, which commenced in 2006, is completed. As stated in the Group's last substantive announcements, dated Sept. 28, 2006 and Feb. 6 respectively, the board has continued to review the Group's financing arrangements. As part of that review, the board agreed with Barclays, in mid February 2007, to convert all of its previous facilities outstanding with Barclays into an overdraft facility of GBP11 million, repayable on demand. The board took this decision, having commenced discussions with Barclays in October 2006, with regard to Watermark's performance versus budget and general financial position, as the board believed that the company was likely to breach, in the short term, the covenants of its then outstanding GBP5 million, 1 year term loan. In late February 2007, the board decided there was a need to reduce the overall level of indebtedness, in order to ensure the Group was not in a situation where Barclays could request repayment of some, or all, of the overdraft, such that the Group would then be unable to meet its repayment obligations. As a result of this refinancing review, and the ongoing discussions with Barclays, the board entered into a dialogue concerning a variety of debt/equity and quasi-equity funding sources, in order to ascertain the most appropriate quantum and form of financing to replace some, or all, of the Barclays overdraft and to convert the remaining element of the overdraft into a more appropriate and longer term form of debt financing. As a result of these discussions, the board disclosed the proposed restructuring of the Group's balance sheet by entering into a proposed Placing and Offer of GBP8 million of secured fixed rate convertible bonds and the conversion of the remaining Barclays overdraft into a GBP6.50 million, two year term loan and a GBP1.5 million working capital facility. The Placing and Offer will raise GBP8 million gross (GBP6.8 million net of expenses) by the allotment and issue of GBP8 million Secured Fixed Rate Convertible Bonds due 2010 at 100% of face value, pursuant to the terms of the Placing and Offer. The Issue Price and the Conversion Price represent a 17.5% discount, if the Convertible Bonds were converted on May 1, compared to the closing middle market price of 24.25 pence per Ordinary Share on April 30, the last dealing day before this announcement. In order for the fundraising to achieve the level of certainty required by both the Group and Barclays, the board has secured full underwriting of the Placing and Offer by Strategic Equity Capital plc, Strategic Recovery Fund II, SVG Capital plc, North Atlantic Value Fund LLP and Dawnay Day Properties Limited, subject to qualifying shareholders having the right to take up entitlements to the convertible bonds on a basis proportionate to their existing shareholdings and any shares which the Company has contracted to issue, on the record date of April 30. The fundraising has been structured so as to enable the Company to raise the level of capital it requires to repay a significant element of the Barclays indebtedness as swiftly as possible, while matching the Convertible Bond investors' requirements for security of capital and an appropriate return on their investment. The proposed structure of the Placing and Offering should enable the majority of Shareholders by value to take part in the Placing and Offer. The structure of the fundraising allows qualifying shareholders to participate, should they so desire, pro rata to their existing shareholdings, but the board would emphasize that this structure is not a pre-emptive offer and therefore not all shareholders will be able to participate. The Board believes that this proposed Placing and Offer of the Convertible Bonds is the most efficient way to obtain certain funding in a quantum and structure suitable for the Company's current position and on the most expedited timetable, as well as providing the required comfort to Barclays, the Group's existing provider of debt finance. Under the Offer, qualifying shareholders' minimum subscription for Convertible Bonds must be at least EUR50,000 (or an equivalent sterling amount, taken as GBP35,000) pursuant to their holding of Ordinary Shares. The Convertible Bonds will not be tradable on the London Stock Exchange. The Board has chosen to use this method to make the Offer as it provides the best practical opportunity for as many Shareholders as possible to participate in the Offer given the constraints of timing and the level of funding certainty required and to address the requirement of Barclays, the Company's debt provider. The board also strongly believes that the revised funding structure created by the proposed refinancing will be more appropriate for the Company over the long term, whilst allowing the Group to maintain an element of flexibility, via the working capital facility. In addition, the Board believes that this refinancing will result in the Company having the appropriate level of gearing in relation to its expected short-term revenue and cash flow streams, whilst allowing management to focus on continuing both to improve returns and to grow the business, particularly through the Encompass offering. Having spoken to a number of major shareholders, the board is confident that the proposed Placing and Offer will receive shareholder approval at the EGM, and in view of their confidence in the proposed refinancing, the revised facilities and continued support of Barclays and the detailed forecasts and cash flow projections which have been prepared and approved by the board, the directors believe that the Group has adequate resources to continue to meet its obligations as they fall due for the foreseeable future and therefore consider it is appropriate to sign off the accounts on a going concern basis. Watermark Group plc -- http://www.watermarkgroup.co.uk/-- provides in-flight products, catering and cabin management services to the airline and travel industry. WEST END: HSBC Bank Appoints Receivers from Deloitte ---------------------------------------------------- HSBC Bank Plc appointed Ian Brown and Neil Matthews of Deloitte & Touche LLP joint administrative receivers of West End Cabinet Co. Ltd. (Company Number 00629321) on April 17. 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. The company can be reached at: West End Cabinet Co. Ltd. Addison Industrial Estate Blaydon-on-Tyne NE21 4SJ England Tel: 0191 414 4469 Fax: 0191 414 0463 * U.S.-EU to Create One Trans-Atlantic Acctg. Standard by 2009 -------------------------------------------------------------- A new agreement between the U.S. and the European Union sets the stage for a single trans-Atlantic accounting standard by 2009, which could allow many public companies to drop U.S. generally accepted accounting principles in favor of more flexible international rules, John D. Mckinnon writes for The Wall Street Journal. The regulatory agreement also calls for eventual harmonization of rules in a number of other commercial areas, such as intellectual property, food safety and drug testing, WSJ relates. At the 2006 U.S.-EU Summit in Vienna, Austria, the leaders committed to redouble their efforts to promote economic growth and innovation and reduce the barriers to transatlantic trade and investment by implementing all aspects of the 2005 Initiative to Enhance Transatlantic Economic Integration and Growth. Financial Markets Given the consolidation underway globally and transatlantically in financial markets, it is important to take steps where appropriate towards the convergence of regulatory standards around high quality principles. In this regard, work has continued to progress in various areas including: accounting and auditing, banking, insurance and securities. Since the U.S.-EU 2006 Economic Summit, both sides have continued to make significant progress under the U.S.-EU Financial Markets Regulatory Dialogue, begun in 2002, and in bilateral discussions between regulators. Positive developments included: the SEC's adoption of a new deregistration standard which provides significantly greater flexibility to EU and other non-U.S. companies to exit U.S. markets; constructive discussions of further steps toward implementation of Basel II on international capital adequacy standards, and proposals being considered by the National Association of Insurance Commissioners to revise reinsurance collateral requirements. In addition, the Chairman of the U.S. Public Company Accounting Oversight Board and the EU Internal Market and Services Commissioner agreed to work on furthering cooperation in auditor oversight. The goal is to move toward full reliance on each other's oversight systems by 2009. The SEC is in the midst of implementing a "roadmap" on the acceptance of IFRS without need for reconciliation to U.S. Generally Accepted Accounting Standards in the United States. Similarly, the EU will make a final decision on the acceptance of U.S. GAAP in EU markets by the end of 2008. The SEC hosted a roundtable on its "roadmap" in Washington to solicit the views of U.S. market participants on the acceptance of IFRS in U.S. markets in March 2007 at which Chairman Cox and Commissioner Charlie McCreevy gave opening remarks in support of further sustained progress in this area, and affirmed the goal of acceptance of IFRS and U.S. GAAP in both markets no later than 2009. The SEC is completing its review of the first set of filings by EU issuers using IFRS, and the EU is in a similar position with regard to the first full set of published financial statements using IFRS. A second review round of financial statements using IFRS will commence with filings due for submission to the SEC in the summer of 2007. In January 2007, the SEC and the College of Euronext regulators signed a memorandum of understanding on cross-border stock exchange mergers. The MOU creates a structure for discussions on enhanced cooperation, particularly in light of NYSE/Euronext merger. Investment At the 2006 Summit, the United States and EU recognized the importance of maintaining open investment regimes that can create new economic opportunities and build prosperity. Their interests in an open investment climate were reaffirmed at the U.S.-EU Economic Ministerial in December 2006, and both sides agreed to have discussions on topics of mutual interests to address any remaining significant obstacles to investment flows between them. Services After four years of negotiation, the United States and EU concluded a comprehensive, first-stage Air Transport agreement. The agreement significantly expands the potential for transatlantic travel and cargo, allowing U.S. and EU airlines to fly between any point in the EU and any point in the United States, with no restrictions on the number of flights, aircraft, routes, or pricing. It will create a new template for international aviation, removing decades-old restrictions on a sector integral to global commerce. This pro-growth, pro- competition, pro-consumer accord is a major breakthrough in transatlantic economic relations and a harbinger of what the United States and EU can accomplish working together to achieve market liberalization on an unprecedented scale. * Grant Thornton U.K. and RSM Robson Rhodes Agree to Merge ---------------------------------------------------------- The partners of Grant Thornton U.K. LLP and RSM Robson Rhodes LLP announced their agreement to merge the two firms to create one of the strongest accounting and business advisory groups in the U.K. The merger creates a firm with the depth of resource, expert capability and market credibility to make it the leader in its chosen marketplaces. The new organization will operate as Grant Thornton U.K. LLP, with the merger expected to complete on July 1. The merger firmly establishes Grant Thornton U.K. LLP as the UK's fifth largest accounting and business advisory group based on fee income (around GBP375 million) with over 300 partners and 4,400 staff, operating from 33 locations. "RSM Robson Rhodes represents a perfect fit for Grant Thornton, boosting the firm's expertise and reputation in financial services, property and construction, health and education, and public sector work," Michael Cleary CEO of the newly merged business commented. "It is also a boost to our efforts to break down those market perceptions which would not naturally associate Grant Thornton with the larger public audit market. We are now gearing ourselves to stimulate competition and offer stakeholders greater choice in this space. This deal stretches our existing dominance as the adviser and auditor of choice on AIM and more than doubles our presence on the FTSE. We have considerably added to our firepower to consistently challenge the Big 4 in key areas in order to meet our objective of creating a firm with revenues in excess of half a billion pounds over the next three years," Mr. Cleary added. "This merger creates class leading teams in audit and tax as well as in the specialist areas of Project Finance, Corporate Finance, Forensic and Corporate restructuring to name but a few. It further boosts our dominant role on AIM that of leading auditor within the public sector and biggest auditor of stock market companies outside of the Big 4. People, both clients and staff, want to work with the best in the business and that is what drives this merger. We are determined to foster the development of professionals with depth of expertise and the courage of independent thought and opinion. In short a great place to be," David Maxwell, managing partner of RSM Robson Rhodes said. "This merger also represents the UK's contribution to bolster the Grant Thornton International network and follows recent investments made by other Grant Thornton International member firms. Recent expansions by the member firms in India, China, Japan, Russia and parts of South America and a new member firm in Spain are but a few examples," concluded Mr. Cleary. Grant Thornton and RSM Robson Rhodes are two long established firms with proud histories that have similar cultures and values anchored around professional integrity, strong independence and excellence. Both firms have focused on developing long-term client relationships and investing in people. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- May 4, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - NYC Alexander Hamilton US Custom House, SDNY New York, New York Contact: http://www.abiworld.org/ May 7, 2007 AMERICAN BANKRUPTCY INSTITUTE 9th Annual New York City Bankruptcy Conference Millennium Broadway Hotel & Conference Center New York, New York Contact: http://www.abiworld.org/ May 14-16, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual TMA Regional Conference - Texas Hyatt Regency Resort & Spa Lost Pines, Texas Contact: http://www.turnaround.org/ May 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Corporate Restructuring Workshop Cable Center, Denver, Colorado Contact: http://www.turnaround.org/ May 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Corporate Restructuring Workshop Cable Center, Denver, Colorado Contact: http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION Bankruptcy Judges Panel Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ May 17-18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 6th Annual Great Lakes Regional Conference Renaissance Quail Hollow Resort, Painesville, Ohio Contact: http://www.turnaround.org/ May 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Enterprise Valuation / Sale of the Distressed Business Athletic Club, Seattle, Washington Contact: http://www.turnaround.org/ May 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Women's Networking Lunch TBD, Arizona Contact: 623-581-3597 or www.turnaround.org/ May 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 13 Week CF Program Kansas City, Missouri Contact: http://www.turnaround.org/ May 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Annual Golf Outing TBD, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ May 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Hedge Funds Standard Club, Chicago, Illinois Contact: http://www.turnaround.org/ May 23, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Calaloo Caf,, Morristown, New Jersey Contact: 908-575-7333 or www.turnaround.org/ May 24-25, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Fourth Annual Conference on Distressed Investing Europe Maximizing Profits in the European Distressed Debt Market Le Meridien Piccadilly Hotel - London, UK Contact: 800-726-2524; http://renaissanceamerican.com/ May 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona and RMA Joint Meeting Hotel Valley Ho, Scottsdale, Arizona Contact: http://www.turnaround.org/ May 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ May 30-31, 2007 FINANCIAL RESEARCH ASSOCIATES Distressed Debt Harvard Club, New York, New York Contact: http://www.frallc.com/ May 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting and Casino Night Mayfair Farms, West Orange, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ May 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Speaker Series E&Y Tower, Calgary, Alberta Contact: http://www.turnaround.org/ May 31 - June 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION 2nd Annual TMA Southeast Regional Conference Marriott Resort at Grande Dunes Myrtle Beach, South Carolina Contact: http://www.turnaround.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference JW Marriott Spa and Resort, Las Vegas, Nevada Contact: http://http://www.airacira.org/ June 6-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION 5th Annual Mid-Atlantic Regional Symposium Borgata Hotel Casino & Spa Atlantic City, New Jersey Contact: http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, Illinois Contact: http://www.airacira.org/ June 7-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION Mealey's Asbestos Bankruptcy Conference Intercontinental Hotel, Chicago, Illinois Contact: http://www.turnaround.org/ June 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth Arizona Chapter Meeting Biltmore Hotel, Phoenix, Arizona Contact: http://www.turnaround.org/ June 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Economic Update at the 1/2 Year Mark University Club, Portland, Oregon Contact: http://www.turnaround.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ June 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Clarion Hotel, Princeton, New Jersey Contact: 908-575-7333 or www.turnaround.org/ June 21-22, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Tenth Annual Conference on Corporate Reorganizations Successful Strategies for Restructuring Troubled Companies The Millennium Knickerbocker Hotel - Chicago Contact: 800-726-2524; http://renaissanceamerican.com/ June 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact: http://www2.nortoninstitutes.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, Rhode Island Contact: 1-703-739-0800; http://www.abiworld.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Young Professionals Billiards Night TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ July 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ July 25-28, 2007 AMERICAN BANKRUPTCY INSTITUTE 12th Annual Southeast Bankruptcy Workshop The Sanctuary, Kiawah Island, South Carolina Contact: http://www.abiworld.org/ July 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ July 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Golf Outing Raritan Valley Country Club, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ July 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Enterprise Florida: Improving Florida's Business Climate and Helping Florida Companies Market Overseas Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Aug. 3, 2007 TURNAROUND MANAGEMENT ASSOCIATION Women's Spa Event Short Hills Hilton, Livingston, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 10, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Aug. 9-11, 2007 AMERICAN BANKRUPTCY INSTITUTE 3rd Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 23-26, 2007 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Drake Hotel, Chicago, Illinois Contact: http://www.nabt.com/ Aug. 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Fishing Trip Point Pleasant, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Healthcare Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Aug. 29-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 3rd Annual Northeast Regional Conference Gideon Putnam Resort and Spa, Saratoga Springs, New York Contact: http://www.turnaround.org/ Sept. 6-7, 2007 TURNAROUND MANAGEMENT ASSOCIATION Complex Financial Restructuring Program Four Seasons, Las Vegas, Nevada Contact: http://www.turnaround.org/ Sept. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Southwest Bankruptcy Conference Four Seasons Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Sept. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Buying and Selling Troubled Companies Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ Sept. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Sept. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Retail Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Sept. 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Educational & Networking Reception TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Sept. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Sept. 27-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 8th Annual Cross Border Business Restructuring & Turnaround Conference Contact: http://www.turnaround.org/ Oct. 2, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Oct. 9-10, 2007 IWIRC Orlando, Florida IWIRC Annual Fall Conference Contact: http://www.iwirc.org/ Oct. 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES 81st Annual National Conference of Bankruptcy Judges Contact: http://www.ncbj.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place Boston, Massachussets Contact: 312-578-6900; http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Capital Markets Case Study Contact: http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Crisis Communications With Employees,Vendors and Media Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Nov. 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Hackensack, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Dinner South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Nov. 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Portland Holiday Party University Club, Portland, Oregon Contact: 206-223-5495 or http://www.turnaround.org/ Nov. 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Mixer TBA, Vancouver Contact: 206-223-5495 or www.turnaround.org/ Nov. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Real Estate Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Nov. 29, 2007 TMA Arizona Chapter Meeting TURNAROUND MANAGEMENT ASSOCIATION Contact: http://www.turnaround.org/ Dec. 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Seattle Holiday Party Athletic Club, Seattle, Washington Contact: 206-223-5495 or http://www.turnaround.org/ Dec. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Jan. 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ April 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, District of Columbia Contact: http://www.abiworld.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: http://www.abiworld.org/ July 10-13, 2008 TURNAROUND MANAGEMENT ASSOCIATION 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, Massachussets Contact: http://www.turnaround.org/ July 31 - Aug. 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Contact: http://www.abiworld.org/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Dec. 4-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, Nevada Contact: http://www.ncbj.org/ June 21-24, 2009 INSOL 8th International World Congress TBA Contact: http://www.insol.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, Louisiana Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers-the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. 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, Kristina A. Godinez, and Pius Xerxes Tovilla, 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 * * *