/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070605.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 Tuesday, June 5, 2007, Vol. 8, No. 110 Headlines A U S T R I A ARTHOFER LLC: St. Poelten Court Orders Business Shutdown BAURISS LLC: Vienna Court Orders Business Shutdown DR. PRIKLOPIL: Eisenstadt Court Orders Business Shutdown H & S LLC: Claims Registration Period Ends June 15 HEINISCH TEXTILVEREDELUNG: Linz Court Orders Business Shutdown VRCHOVSKY LLC: Claims Registration Period Ends June 19 WEB AND NET: Claims Registration Period Ends June 19 WW BETRIEB: Claims Registration Period Ends June 20 B E L G I U M GENERAL MOTORS: To Invest US$44 Million in Bedford Foundry GENERAL MOTORS: Retail Sales Up by 8.5% to 279,731 in May 2007 GOODYEAR TIRE: Equity Offering Completion Cues S&P to Up Ratings SOLUTIA INC: Completes Sale of Dequest Business to Thermphos C Z E C H R E P U B L I C ON SEMICONDUCTOR: Ridge Property Ends Sale Pact with SCI LLC F R A N C E CNH GLOBAL: S&P Lifts Corporate Credit Rating to BB+ EUROTUNNEL GROUP: Aims to Become an Attractive Investment G E R M A N Y DETEL DEUTSCHE: Claims Registration Period Ends July 5 ESTEP GMBH: Claims Registration Period Ends June 21 ELEKTRO-BARTH: Claims Registration Period Ends July 5 HARALD THIELE: Claims Registration Ends July 2 HAYES LEMMERZ: Completes Three Recapitalization Transactions HEINRICH EISINGER: Claims Registration Ends June 25 HOLZ GROSSHANDEL: Claims Registration Ends Sept. 4 HOTEL MONDO: Claims Registration Ends July 25 HOTEL STADT: Claims Registration Ends July 17 G R E E C E KNOLL INC: Adopts SEC Rule 10b5-1 on US$50 Mln Share Repurchase I T A L Y ALITALIA SPA: OAO Aeroflot Denies Stake Bid Pullout ALITALIA SPA: 2006 Results Approval Hinges on Carrier's Future FIAT SPA: S&P Lifts Corporate Credit Rating to BB+ SEALY CORPORATION: Feb. 25 Balance Upside-Down by US$153.8 Mln WORLD OF FOOTBALL: Claims Registration Period Ends July 5 K A Z A K H S T A N ABYROY JER: Proof of Claim Deadline Slated for July 6 AKTAUSKY MASHINOSTROITELNY: Claims Registration Ends July 6 E-2 LLP: Creditors' Claims Due July 4 IZAR-TORG LLP: Claims Registration Ends July 6 KOITAS LLP: Claims Filing Period Ends July 6 SIRIUS LLP: Claims Filing Period Ends July 6 START LLP: Creditors Must File Claims July 6 VAN-SHAN LLP: Proof of Claim Deadline Slated for July 4 WINTERLUX LLP: Creditors Must File Claims July 6 K Y R G Y Z S T A N CHUIBATYSHKURULUSH OJSC: Creditors Must File Claims by July 18 L U X E M B O U R G EVRAZ GROUP: Acquiring Highveld Steel's Entire Share Capital N E T H E R L A N D S FOOT LOCKER: Halts Plans to Acquire Genesco’s Stock FOOT LOCKER: S&P Keeps Negative Watch After Rejected Genesco Bid N O R W A Y GEOKINETICS: Completes Amended Credit Agreement with PNC Bank R U S S I A ALEKSEEVSKOYE LLC: Creditors Must File Claims by June 12 AUTOMOBILE OPERATING: Creditors Must File Claims by July 12 BREWER LLC: Volgograd Bankruptcy Hearing Slated for July 30 CHERLAKSKIY OJSC: Creditors Must File Claims by June 12 EVRAZ GROUP: Acquiring Highveld Steel's Entire Share Capital EXPERT-INVEST CJSC: Creditors Must File Claims by July 12 FIRST CJSC: Creditors Must File Claims by June 12 KPD-1 CJSC: Court Names A. Chernik as Insolvency Manager MERCURY OJSC: Orel Bankruptcy Hearing Slated for Sept. 5 NORTH-OIL-PRODUCT: Creditors Must File Claims by July 12 NOVATEK OAO: Earns RUR4.34 Billion for First Quarter 2007 SEL-KHOZ-TEKHNIKA ISILKULSKAYA: Claims Deadline Set July 12 SIBIRSKIY GRAIN: Creditors Must File Claims by June 12 SIMBIRSK-FLOUR OJSC: Creditors Must File Claims by July 12 UZHUR-AGRO-SNAB: Creditors Must File Claims by July 12 VNESHTORGBANK JSC: Promstroybank Takeover Slated for Yearend WINE TRADE: Creditors Must File Claims by July 12 S P A I N SUNNY DELIGHT: Improved Performance Cues S&P’s Upgrade to CCC+ S W I T Z E R L A N D ALOIS HEULE: Creditors' Liquidation Claims Due July 15 CDT CREATIVE: Zug Court Starts Bankruptcy Proceedings ISOCAST JSC: Creditors' Liquidation Claims Due June 22 LONELY MOUNTAIN: Creditors' Liquidation Claims Due June 15 MASI LLC: Aargau Court Starts Bankruptcy Proceedings MUNOT OPTIK: Creditors' Liquidation Claims Due June 15 P & S IMMOBILIENGESELLSCHAFT: Liquidation Claims Due June 18 PARTNERBAU JSC: Creditors' Liquidation Claims Due June 15 PPR – GARAGE MEIER: Aargau Court Starts Bankruptcy Proceedings TRUBLI-BAR LLC: Creditors' Liquidation Claims Due June 15 U K R A I N E CHEMISTRY OJSC: Creditors Must File Claims by June 9 CHERNORUDKA AGRICULTURAL: Creditors Must File Claims by June 13 PERSHOTRAVENSK MINE 4: Creditors Must File Claims by June 10 POBEDA: Creditors Must File Claims by June 10 QUARTA-WEST LLC: Creditors Must File Claims by June 9 RAYKOVTSY AGRICULTURAL: Claims Filing Deadline Set June 13 REAL-TRADE COMPANY: Creditors Must File Claims by June 9 YABLUNETS BREADRECEIVING: Creditors Must File Claims by June 10 ZHYTOMIR BREAD: Creditors Must File Claims by June 9 U N I T E D K I N G D O M ABC SKIP: Eileen T. F. Sale Leads Liquidation Procedure ALLIANCE ATLANTIS: Fairness Hearing on Plan Slated for June 28 BRITISH ENERGY: DTI Selling 25% Stake for GBP2 Billion ENRON CORP: Settles Equity Transactions Suit with Credit Suisse EUROTUNNEL GROUP: Aims to Become an Attractive Investment GRESHAM CAPITAL: S&P Rates EUR10.780MM Class E Notes at BB ISOFT GROUP: Takes Legal Action Against CSC Over IBA Offer MEDQUAKE LTD: S&P Rates US$50 Million Class A Notes at BB- MORTGAGES NO. 6: S&P Puts Notes' Ratings on Positive Watch TOWER RECORDS: Files Joint Disclosure Statement in Delaware WOOD STREET: S&P Rates EUR20 Million Class E Notes at BB * Deloitte Names David Cruickshank as U.K. Board Chairman * Ernst & Young Hires 10 to New Regulatory & Management Team ********* ============= A U S T R I A ============= ARTHOFER LLC: St. Poelten Court Orders Business Shutdown -------------------------------------------------------- The Land Court of St. Poelten entered May 10 an order shutting down the business of LLC Arthofer (FN 230726d). Court-appointed estate administrator Wolfgang Strasser 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. Wolfgang Strasser Hauptplatz 11 4300 St. Valentin Austria Tel: 07435/52 4 37 Fax: 07435/52 4 37-21 E-mail: st-valentin@advocat24.at Headquartered in Behamberg, Austria, the Debtor declared bankruptcy on May 9 (Bankr. Case No 14 S 95/07x). BAURISS LLC: Vienna Court Orders Business Shutdown -------------------------------------------------- The Trade Court of Vienna entered May 8 an order shutting down the business of LLC Bauriss (FN 205671h). Court-appointed estate administrator Nikolaus Vogt recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Mag. Nikolaus Vogt c/o Dr. Eva Riess Zeltgasse 3/13 1080 Vienna Tel: 402 57 01 33 Fax: 402 57 01 57 E-mail: nikolaus.vogt@riess.co.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 23 (Bankr. Case No 2 S 58/07b). Eva Riess represents Mag. Vogt in the bankruptcy proceedings. DR. PRIKLOPIL: Eisenstadt Court Orders Business Shutdown -------------------------------------------------------- The Land Court of Eisenstadt entered May 8 an order shutting down the business of LLC Dr. Priklopil Gastronomiebetriebe (FN 109922a). Court-appointed estate administrator Michael Kaintz 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. Michael Kaintz Gartenweg 108 7100 Neusiedl am See Austria Tel: 02167/8296-0 Fax: 02167/8296-20 E-mail: ra_kaintz@aon.at Headquartered in Frauenkirchen, Austria, the Debtor declared bankruptcy on April 24 (Bankr. Case No 26 S 50/07s). H & S LLC: Claims Registration Period Ends June 15 -------------------------------------------------- Creditors owed money by LLC H & S (FN 273043i) have until June 15 to file written proofs of claim to court-appointed estate administrator Paul Wuntschek at: Dr. Paul Wuntschek c/o LLC Klein, Wuntschek & Partner Kaiser-Franz-Josef-Kai 70 8010 Graz Austria Tel: 0316/813862 Fax: 0316/813862-2 E-mail: office@klein-wuntschek-partner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:10 a.m. on June 28 for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Room 222 Second Floor Graz Austria Headquartered in Graz - Puntigam, Austria, the Debtor declared bankruptcy on May 8 (Bankr. Case No. 26 S 33/07h). HEINISCH TEXTILVEREDELUNG: Linz Court Orders Business Shutdown -------------------------------------------------------------- The Land Court of Linz entered May 8 an order shutting down the business of LLC Heinisch Textilveredelung & Co KG (FN 149955y). Court-appointed estate administrator Erhard Hackl 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. Erhard Hackl c/o Mag. Markus Weixlbaumer Hofgasse 7 4020 Linz Austria Tel: 0732/776234 Fax: 0732/77623422 E-mail: hackl.hatak@aon.at Headquartered in Hoersching, Austria, the Debtor declared bankruptcy on April 2 (Bankr. Case No 38 S 23/07x). Markus Weixlbaumer represents Dr. Hackl in the bankruptcy proceedings. VRCHOVSKY LLC: Claims Registration Period Ends June 19 ------------------------------------------------------ Creditors owed money by LLC Vrchovsky (FN 280323s) have until June 19 to file written proofs of claim to court-appointed estate administrator Volker Leitner at: Mag. Volker Leitner Wiener Strasse 3 3100 St. Poelten Austria Tel: 02742/35 43 55 Fax: 02742/35 14 35 E-mail: office@gpls.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:50 a.m. on July 10 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor St. Poelten Austria Headquartered in St. Poelten, Austria, the Debtor declared bankruptcy on May 10 (Bankr. Case No. 14 S 96/07v). WEB AND NET: Claims Registration Period Ends June 19 ---------------------------------------------------- Creditors owed money by LLC Web and Net Play (FN 195997g) have until June 19 to file written proofs of claim to court-appointed estate administrator Walter Anzboeck at: Dr. Walter Anzboeck Stiegengasse 8 3430 Tulln Austria Tel: 02272/61 600 Fax: 02272/61 600-20 E-mail: anwalt@anzboeck.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on July 10 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in Tulln, Austria, the Debtor declared bankruptcy on May 10 (Bankr. Case No. 14 S 97/07s). WW BETRIEB: Claims Registration Period Ends June 20 --------------------------------------------------- Creditors owed money by LLC WW Betrieb und Verwaltung (FN 262927h)have until June 20 to file written proofs of claim to court-appointed estate administrator Peter Wilhelm at: Dr. Peter Wilhelm Ringstrasse 9 3500 Krems Austria Tel: 02732/82265 Fax: 02732/82265-6 E-mail: rechtsanwalt@ra-wilhelm.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 a.m. on July 4 for the examination of claims. The meeting of creditors will be held at: The Land Court of Krems an der Donau Hall A Second Floor Krems an der Donau Austria Headquartered in Zwettl, Austria, the Debtor declared bankruptcy on May 10 (Bankr. Case No. 9 S 25/07k). ============= B E L G I U M ============= GENERAL MOTORS: To Invest US$44 Million in Bedford Foundry ---------------------------------------------------------- General Motors Corp. will invest US$44 million in its Bedford Foundry to produce transmission cases and converter housings for GM's growing family of fuel-efficient, six-speed transmissions. The project will retain about 100 production jobs at the facility. The investment includes plant renovation and installation of new die casting machines with an automated (robotic) casting processing cell for each machine. Construction and equipment orders will begin immediately, with machine installation beginning in June 2008. Full production targeted for December 2009. The US$44 million investment disclosed brings GM's total investments in the past year for the Bedford facility to US$114 million. "These investments would not be possible without the involvement of employees at this facility, who have dedicated themselves to improving the quality of our products and the efficiency of the operations here at the Bedford Foundry," Arvin Jones, GM Powertrain manufacturing manager for castings and components, said. "Their efforts have contributed to GM's competitiveness and our transformation in North America." The GM Powertrain Bedford plant management, UAW Local 440 and IBEW Local 16 leadership successfully negotiated competitive operating agreements that improve operational effectiveness. The agreements also address processes and methods to improve safety of the operations and production quality. Mr. Jones thanked members of UAW Local 440 and IBEW Local 16 as well as Indiana's leaders on the state and local levels -- working together they were able to build a competitive business case to support this investment in Indiana. "GM continues to make a significant commitment to Indiana,” Indiana Lt. Governor Skillman said. “I commend them for choosing to invest in our state. This is good news for Hoosier workers and a testament to the great value of our highly skilled workforce and competitive business climate." High pressure die casting is the most economical process for casting high-volume powertrain components. The process works by injecting molten aluminum into a water-cooled steel die with high pressure exerted by a metal plunger during solidification. "The investment marks an exciting new chapter in this plant's 64-year history of producing high quality castings and components for GM engines and transmissions," John Lancaster, Bedford plant manager, said. "The credit goes to our employees who've established a culture of continuous improvement that helps secure our future in today's competitive global market." GM's Powertrain Bedford Foundry is an aluminum melting, die casting and permanent mold facility that has been a proud part of the Bedford community since 1943. The plant currently employs 544 hourly and 115 salaried workers and has an annual payroll of approximately $58 million. Castings produced at the plant include: transmission cases and converter housings for GM's four-speed and six-speed transmissions; pistons for the Vortec 4.8-liter and 5.3-liter V-8 engines that power GM's full-size SUVs and pickups marketed under the Chevrolet Tahoe and Silverado and GMC Yukon and Sierra brands; and engine blocks for GM's Northstar 4.6-liter V-8 engines that power the Cadillac DTS, XLR and STS luxury cars. On a daily average, the plant manufactures 10,000 transmission cases and converter housings, 34,000 pistons and 350 engine blocks. Headquartered in Detroit, GM General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. I t has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative. GENERAL MOTORS: Retail Sales Up by 8.5% to 279,731 in May 2007 -------------------------------------------------------------- General Motors Corporation dealers in the United States delivered 375,682 vehicles in May 2007, up 4.7 percent compared with year-ago monthly sales. On an unadjusted basis, sales were up 8.8 percent. GM's May retail sales of 279,731 were up 8.5 percent. On an unadjusted basis, retail sales were up 12.8 percent compared with a year ago. May sales reflected the continuing strength of GM's new product portfolio. Increased sales of Chevrolet Impala and Saturn AURA as well as the new industry leading mid-size crossovers GMC Acadia, Saturn OUTLOOK and Buick Enclave demonstrate GM's strong positioning in the marketplace for fuel-efficient and alternative fuel (E-85) vehicles. The Chevrolet Silverado and GMC Sierra full-size pickup trucks -- fuel efficiency leaders in their class - - pushed GM's large pickup segment sales up 10 percent in total and 14 percent retail compared with May 2006. Divisions with retail sales increases for the month included Saturn (up 59 percent), GMC (up 18 percent) and Pontiac (up 8 percent). Additionally, Chevrolet was again the sales leader in the industry (up 5 percent). "Our May results were extremely positive as we saw strong total and retail sales increases. Our significant market share gains in full-size trucks and crossovers validates the decision we made to invest in industry-leading fuel economy in these important segments," said Mark LaNeve, vice president, GM North American Sales, Service and Marketing. "We are particularly pleased with the Chevrolet Silverado and GMC Sierra pickups, which pushed our full-size truck sales up more than 10 percent for the month. As with many of our vehicles, these great all-new trucks offer what the customer is looking for -- best-in-class fuel economy, terrific performance and tremendous value. And our newest entry to the crossover segment, the Buick Enclave, is performing ahead of our expectations. Dealers are selling them as soon as they arrive from the plant. Our mid-size crossover segment performance, including the GMC Acadia and Saturn OUTLOOK, continues to grow at a blistering pace," Mr. LaNeve said. The product renaissance at Saturn continued to accelerate with total sales increasing almost 69 percent compared with a year ago, highlighting the tremendous public acceptance of the new lineup of Saturn vehicles including SKY, AURA and AURA Hybrid, OUTLOOK, VUE and VUE Hybrid. Saturn's ION small car is soon to be replaced with the popular ASTRA. Saturn is the fastest growing brand in the industry this year. Chevrolet Aveo, Cobalt, Malibu, Impala, HHR, Silverado, Suburban, and Avalanche; Pontiac G6 and Solstice; Saturn SKY and VUE; Saab 9-3, GMC Sierra and Yukon XL; Buick Lucerne; Cadillac SRX, Escalade ESV and Escalade EXT; and HUMMER H3 all had May retail sales increases compared with a year ago. Pontiac G5, Saturn AURA and OUTLOOK, GMC Acadia and the Buick Enclave are newly offered products and continue to contribute retail sales momentum. The GMC Acadia, Saturn OUTLOOK and Buick Enclave had retail sales of more than 12,800 vehicles, pushing a significant retail increase in GM's mid-crossover segment. GM's total sales of more than 16,600 vehicles in this segment pushed monthly performance up more than 211 percent, compared with the same month last year. "We're seeing positive results, including increased residual values for our products, as a result of staying aligned and disciplined to our North American turnaround and market growth plans. For customers, this means providing industry-leading products in terms of design, segment fuel economy, warranty coverage and performance," Mr. LaNeve added. "This translates to a beneficial cost of ownership experience. With new products such as the Cadillac CTS and Chevrolet Malibu coming to dealer showrooms later this year, we expect to build on this customer enthusiasm." Certified Used Vehicles May 2007 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 45,892 units, up 3 percent from last May. Total year-to-date certified GM sales are 227,365 units, up 3 percent from the same period last year. GM Certified Used Vehicles, the industry's top-selling manufacturer-certified used brand, posted 40,306 sales, up nearly 5 percent from last May. Year-to-date sales for GM Certified Used Vehicles are 199,715 units, up 4 percent from the same period in 2006. Cadillac Certified Pre-Owned Vehicles posted May sales of 3,102 units, down 6 percent from last May. Saturn Certified Pre-Owned Vehicles sold 1,603 units in May, down 13 percent. Saab Certified Pre-Owned Vehicles sold 797 units, comparable to last May, and HUMMER Certified Pre-Owned Vehicles sold 84 units, down 6 percent. "GM Certified Used Vehicles, the industry's top-selling certified brand, had another category-leading performance with sales of 40,306 units, up nearly 5 percent," said Mr. LaNeve. "GM Certified also set a new all-time high with year-to-date sales through May of 199,715 units, up 4 percent from its 2006 segment record performance for the same period." 2Q Production Forecast In May, GM North America produced 401,000 vehicles (139,000 cars and 262,000 trucks). This is down 25,000 units or 6 percent compared to May 2006 when the region produced 425,000 vehicles (158,000 cars and 267,000 trucks). The region's 2007 second-quarter production forecast is unchanged at 1.145 million vehicles (403,000 cars and 742,000 trucks). Additionally, the region's initial 2007 third-quarter production forecast is set at 1.075 million vehicles (377,000 cars and 698,000 trucks), up 2 percent from third-quarter 2006 actuals. GM also announced revised 2007 second-quarter and initial 2007 third-quarter production forecast for its international regions. For GM Europe, the region's 2007 second-quarter production forecast is revised at 468,000 vehicles, down 5,000 units from last month's guidance. In the second-quarter of 2006 the region built 495,000 vehicles. The region's initial 2007 third-quarter production forecast is set at 389,000 vehicles. In the third-quarter of 2006 the region built 374,000 vehicles. GM Asia Pacific's 2007 second-quarter production forecast remains unchanged at 568,000 vehicles. In the second-quarter of 2006 the region built 482,000 vehicles. The region's initial 2007 third-quarter production forecast is set at 524,000 vehicles. In the third-quarter of 2006 the region built 433,000 vehicles. For GM Latin America, Africa and the Middle East, the region's 2007 second-quarter production forecast is unchanged at 233,000 vehicles. In the second-quarter of 2006 the region built 206,000 vehicles. The region's initial 2007 third-quarter production forecast is set at 258,000 vehicles. In the third-quarter of 2006 the region built 215,000 vehicles. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. 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 of March 31, 2007, GM's balance sheet showed a stockholders' deficit of US$4,347,000,000, compared to a positive equity of US$15,779,000,000 at March 31, 2006. * * * In May 2007, Fitch Ratings has downgraded General Motors Corporation's senior unsecured debt rating to 'B-/RR5' from 'B/RR4'. GM's Issuer Default Rating remains at 'B' and is still on Rating Watch Negative (along with the other outstanding ratings) by Fitch following the company's announcement that it will be raising US$4.1 billion in secured financing and US$1.1 billion in senior unsecured convertible securities. The US$4.1 billion 364-day facility, to be secured by GM's common equity holdings in GMAC, will be assigned a rating of 'BB/RR1', while the senior unsecured convertible securities will be rated 'B-/RR5'. GOODYEAR TIRE: Equity Offering Completion Cues S&P to Up Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. In addition, the ratings were removed from CreditWatch where they were placed with positive implications on May 10, 2007. Recovery ratings were not on CreditWatch. The upgrades reflect the company's completion of its equity offering with net proceeds of approximately US$834 million. Proceeds will be used to repay approximately US$175 million of its 8.625% notes due in 2011 and approximately US$140 million of its 9% notes due in 2015. S&P expect some of the remaining proceeds would be used to repay other debt. The benefits of the reduction in debt and debt-like obligations as a result of the equity sale, pending asset sales, and the United Steelworkers contract are significant. Combined with sustained improved performance in North American tire operations, an additional upgrade is possible during the next two years. The outlook could be revised back to stable or to negative if earnings and cash flow weaken because of soft demand, or if operating improvements in North America reverse, notwithstanding recent progress on balance sheet improvement. Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear maintains Asia-Pacific facilities in Australia, China and Korea. Its European bases are located in Austria, Belgium, France, Germany, Italy, Russia, Spain, and the United Kingdom. Goodyear's Latin American operations are located in Argentina, Brazil, Chile, Colombia, Jamaica, Mexico, and Peru. SOLUTIA INC: Completes Sale of Dequest Business to Thermphos ------------------------------------------------------------ Solutia Inc. on Friday completed the sale of Dequest(r), its water treatment phosphonates business. Under the terms of the agreement, Thermphos Trading GmbH has purchased the assets and assumed certain of the liabilities of the Dequest business for $67 million in cash, subject to a working capital adjustment. The parties have also entered into a lease and operating agreement under which Solutia will continue to operate the Dequest production facility for Thermphos at Solutia's plant in Newport, Wales, U.K. About Thermphos International Thermphos International -- http://www.thermphos.com/-- produces and sells phosphorus, phosphoric acid, phosphorus derivates and phosphates. Thermphos employs approximately 1,150 people world-wide with locations in the Netherlands, Germany, Switzerland, France, England Argentina and China. About Dequest Dequest -- http://www.dequest.com/-- produces phosphonates, which are used as additives in water processing across a broad spectrum of markets, including industrial water treatment, household and industrial detergents, industrial cleaners, enhanced oil recovery operations, and various industrial processes such as desalination and pulp production. In 2006, sales for the Dequest business accounted for less than 4% of the total sales of Solutia Inc. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed $2,854,000,000 in assets and $3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Debtors' exclusive period to file a plan expires on July 30, 2007. =========================== C Z E C H R E P U B L I C =========================== ON SEMICONDUCTOR: Ridge Property Ends Sale Pact with SCI LLC ------------------------------------------------------------Ridge Property Services II LLC, during the due diligence period, terminated a Sale Agreement it entered with Semiconductor Components Industries LLC. Ridge determined that the Sale Agreement was not feasible as originally contemplated and by written notice to SCI LLC dated May 15, 2007. SCI LLC, ON Semiconductor’s wholly owned subsidiary and primary operating company, entered into an Agreement for Sale and Purchase dated March 30, 2007, with Ridge. The Sale Agreement provided for a due diligence period for the purpose of determining the feasibility of Ridge acquiring the Property. As initially agreed between the parties, SCI LLC agreed to sell to Ridge about 20 acres of surface rights and certain improvements owned by SCI LLC for a purchase price of about $11.5 million, subject to adjustment. The property located at 52nd Street in Phoenix, Arizona is adjacent to ON Semiconductor’s corporate headquarters. As a result of the termination, ON Semiconductor no longer expects to close on the Property sale transaction under the previous terms and conditions of the Sale Agreement, which would have triggered an estimated gain of about $10 million. About ON Semiconductor ON Semiconductor -- http://www.onsemi.com/-- supplies power solutions to engineers, purchasing professionals, distributors and contract manufacturers in the computer, cell phone, portable devices, automotive and industrial markets. The company has operations in Japan and the Czech Republic. * * * As reported in the Troubled Company Reporter on May 4, 2007, Standard & Poor's Ratings Services raised its corporate credit rating on Phoenix, Arizona-based ON Semiconductor Corp. to 'BB-'from 'B+'. The outlook is stable. At the same time, Standard & Poor's assigned its 'BB' rating to the company's amended and restated credit agreement, with a recovery rating of '1', indicating the expectation of full (100%) recovery of principal in the event of a payment default. =========== F R A N C E =========== CNH GLOBAL: S&P Lifts Corporate Credit Rating to BB+ ---------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on CNH Global N.V. and related entities to 'BB+' from 'BB' following the same rating action taken by Standard & Poor's on CNH's parent company, Italy-based Fiat SpA. The outlook is positive. The corporate credit rating and outlook on publicly traded CNH are the same as those on auto and truck manufacturer Fiat due to the close ties between the two entities. Fiat views CNH as a core business and continues to provide strong liquidity support to CNH by way of intercompany loans and bank loan guarantees. Fiat has an approximate 90% equity ownership stake in CNH. The company has a satisfactory business position as the world's second-largest agricultural equipment maker and as a major manufacturer of construction equipment. It also has an aggressive, but improving, financial profile. CNH Global N.V. -- http://www.cnh.com/-- (NYSE: CNH) manufactures agricultural and construction equipment businesses. CNH Global is a majority-owned subsidiary of Fiat S.p.A. (MILAN: FIA) (NYSE: FIA). Aside from the U.S. and Canada, the company also has manufacturing facilities in Austria, Belgium, France, Italy, Poland, United Kingdom, China, India, Brazil, and Mexico, among others. EUROTUNNEL GROUP: Aims to Become an Attractive Investment --------------------------------------------------------- Eurotunnel Group CEO Jacques Gounon said that the company has placed its financial problems behind and is set to become an attractive investment for shareholders, The Associated Press reports. "We're turning the page on a chaotic past, and we're starting a new company with a real future," Mr. Gounon was quoted by the AP as saying. "This is a new Eurotunnel," Mr. Gounon stated. "Everyone who wants to rediscover the spirit of the initial share placement, and all long-term investors who want guaranteed results should come to the new Eurotunnel." As reported in the TCR-Europe on May 28, 2007, the Autorite des marches financiers indicated that around 87% of the share capital of Eurotunnel S.A./Eurotunnel PLC have been tendered to the offer. The debt to equity swap is part of the restructuring designed to save the channel tunnel operator from bankruptcy. The deal will see the creation of a new company, Groupe Eurotunnel S.A., in which existing shareholders' stake will fall to 13%. According to AP, Mr. Gounon disclosed that the company's operating results would easily cover its debt payments after the restructuring. The Business reports that Mr. Gounon's aim is to make Groupe Eurotunnel begin issuing shares that would be traded on the London Stock Exchange and France's Euronext on June 28, 2007. The Business relates that Eurotunnel will no longer be an Anglo/French company as Groupe Eurotunnel will officially be French. This will mark the end of an agreement made on Nov. 30, 1984 between the British and French governments to form a joint company to solicit private sector proposals to build a channel tunnel. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group (aka Groupe Eurotunnel S.A.) -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel S.A. (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. ============= G E R M A N Y ============= DETEL DEUTSCHE: Claims Registration Period Ends July 5 ------------------------------------------------------ Creditors of DeTel Deutsche Teledialog GmbH have until July 5 to register their claims with court-appointed insolvency manager Johannes Franke. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 2, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Gifhorn Hall 118 Schlossgarten 4 38518 Gifhorn 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: Johannes Franke Verdener Platz 1 30419 Hannover Germany Tel: 0511/794573 Fax: 0511/794576 The District Court of Gifhorn opened bankruptcy proceedings against DeTel Deutsche Teledialog GmbH on May 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DeTel Deutsche Teledialog GmbH Duderstadter Weg 30-32 31303 Burgdorf Germany Attn: Bernd Brandenburg, Manager Ringstr. 58 24103 Kiel Germany ESTEP GMBH: Claims Registration Period Ends June 21 --------------------------------------------------- Creditors of EsTep GmbH have until June 21 to register their claims with court-appointed insolvency manager Horst Piepenburg. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on July 9, 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 Kleve Meeting Hall C 58 Ground Floor Schlossberg 1 47533 Kleve 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: Horst Piepenburg Heinrich-Heine-Allee 20 40213 Duesseldorf Germany Tel: 0211/492240 Fax: 0211/4922487 The District Court of Kleve opened bankruptcy proceedings against EsTep GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EsTep GmbH Benzstr. 7 47574 Goch Germany Attn: Roberto Borgmann, Manager Adelholmstr. 10 47652 Weeze Germany ELEKTRO-BARTH: Claims Registration Period Ends July 5 ----------------------------------------------------- Creditors of Elektro-Barth GmbH have until July 5 to register their claims with court-appointed insolvency manager Rainer M. Bahr. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 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 Gifhorn Hall 118 Schlossgarten 4 38518 Gifhorn 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: Rainer M. Bahr Prinzenstr. 14 30159 Hannover Germany Tel: 0511/85030580 Fax: 0511/85030588 E-mail: Baehr@Hermann-Law.com The District Court of Gifhornopened bankruptcy proceedings against Elektro-Barth GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Elektro-Barth GmbH Attn: Regine Barth and Horst Heim, Managers Gruener Weg 6 38527 Meine Germany HARALD THIELE: Claims Registration Ends July 2 ---------------------------------------------- Creditors of Harald Thiele und Michael Queder Geruestbau GmbH have until July 2 to register their claims with court-appointed insolvency manager Thorsten Klepper. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 31, 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 Dortmund Hall 3.201 Second Floor Gerichtsplatz 1 44135 Dortmund 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: Thorsten Klepper Kleppingstrasse 20 44135 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against Harald Thiele und Michael Queder Geruestbau GmbH on May 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Harald Thiele und Michael Queder Geruestbau GmbH Kreuzstr. 69 44575 Castrop-Rauxel Germany HAYES LEMMERZ: Completes Three Recapitalization Transactions ------------------------------------------------------------ Hayes Lemmerz International Inc. has closed on these recapitalization transactions: -- equity rights offering of US$180 million and direct investment by Deutsche Bank Securities Inc. of US$13.1 million; -- senior secured credit facilities of approximately US$495 million, issued by a European subsidiary; and -- 8-1/4% senior notes due 2015 of EUR130 million, issued by a European subsidiary. The proceeds from these transactions were used: * to repay the 10-1/2% senior notes due 2010 of HLI Operating Company Inc., a subsidiary of the company; * to repay the company's obligations under its Amended and Restated Credit Agreement dated April 11, 2005; * to pay related transaction costs, fees and expenses; * to provide working capital; and * for other general corporate purposes. "The company is pleased with the show of support from the company’s shareholders and its lenders,” James Yost, vice president, finance and chief financial officer said. “The rights offering was over-subscribed and there was strong interest from both U.S. and European investors for its debt. By raising new equity capital and retiring high-cost debt, the company has reduced its leverage, strengthened its balance sheet and significantly improved its free cash flow." About Hayes Lemmerz International Headquartered in Northville, Michigan, Hayes Lemmerz International Inc. (Nasdaq: HAYZ) -- http://www.hayes-lemmerz.com/-- global supplier of automotive and commercial highway wheels, brakes and powertrain components. The company has 30 facilities and approximately 8,500 employees worldwide. The company has operations in India, Brazil and Germany, among others. * * * As reported in the Troubled Company Reporter on May 4, 2007, Moody's Investors Service raised to B3 from Caa1 the corporate family and probability of default ratings of HLI Operating Company, Inc., a wholly-owned subsidiary of Hayes Lemmerz International, and changed the rating outlook to stable from negative. Moody's also assigned a B2 (LGD3, 33%) to new senior secured bank facilities to be issued by HLI Operating Company, a B2 (LGD3, 33%) to a secured term loan and synthetic letter of credit facility to be issued by HLI Luxembourg S.a.r.l. and a Caa2 (LDG5, 87%) to new senior unsecured notes also to be issued by HLI Luxembourg. HEINRICH EISINGER: Claims Registration Ends June 25 --------------------------------------------------- Creditors of Heinrich Eisinger GmbH have until June 25 to register their claims with court-appointed insolvency manager Thorsten Konrad. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Aug. 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 Mannheim Hall 232 Second Floor Schloss 68149 Mannheim 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: Thorsten Konrad Saarburger Ring 10-12 68229 Mannheim Germany Tel: 0621/483240 The District Court of Mannheim opened bankruptcy proceedings against Heinrich Eisinger GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Heinrich Eisinger GmbH Max-Born-Str. 5A 68169 Mannheim Germany HOLZ GROSSHANDEL: Claims Registration Ends Sept. 4 -------------------------------------------------- Creditors of Holz Grosshandel- und Verarbeitung Faulstich & Co. GmbH have until Sept. 4 to register their claims with court-appointed insolvency manager Rolf Rombach. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Sept. 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 Erfurt Hall 15 Judicial Center Rudolfstr. 46 99092 Erfurt 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: Rolf Rombach Magdeburger Allee 159 99086 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against Holz Grosshandel- und Verarbeitung Faulstich & Co. GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Holz Grosshandel- und Verarbeitung Faulstich & Co. GmbH GF Peter Faul-stich Levinestrasse 9 99334 Ichtershausen Germany HOTEL MONDO: Claims Registration Ends July 25 --------------------------------------------- Creditors of Hotel Mondo GmbH have until July 25 to register their claims with court-appointed insolvency manager Johannes Klefisch. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Aug. 15, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Johannes Klefisch Rotter Bruch 6 52068 Aachen Germany The District Court of Cologne opened bankruptcy proceedings against Hotel Mondo GmbH on May 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hotel Mondo GmbH Ostring 49 50129 Bergheim Germany HOTEL STADT: Claims Registration Ends July 17 --------------------------------------------- Creditors of Hotel Stadt Hamburg Betriebs GmbH have until July 17 to register their claims with court-appointed insolvency manager Hans-Peter Rechel. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Aug. 16, 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 Neuruppin Hall 325 Karl-Marx-Strasse 18a 16816 Neuruppin 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-Peter Rechel Lehmweg 17 20251 Hamburg Germany The District Court of Neuruppin opened bankruptcy proceedings against Hotel Stadt Hamburg Betriebs GmbH on May 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hotel Stadt Hamburg Betriebs GmbH Roebeler Str. 25 16909 Wittstock Germany =========== G R E E C E =========== KNOLL INC: Adopts SEC Rule 10b5-1 on US$50 Mln Share Repurchase ---------------------------------------------------------------Knoll Inc. has adopted a written trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934 to facilitate repurchases between June 1, 2007, and July 20, 2007, under its US$50 million share repurchase plan disclosed in February 2006. Under the company 10b5-1 plan, Bank of America Securities LLC will have the authority to repurchase up to an aggregate of approximately US$8.5 million worth of Knoll common stock on behalf of the company during the period. The company 10b5-1 plan does not require that any shares be purchased, and there can be no assurance that any shares will be purchased. Purchases may be made under the company 10b5-1 plan beginning June 1, 2007. The Share Repurchase Plan will continue to be in effect following the expiration of the company 10b5-1 plan, which expires on the earlier of July 20, 2007, or the date on which purchases are completed. A 10b5-1 plan allows the company to repurchase shares at times when it would ordinarily not be in the market because of the company's trading policies or the possession of material non-public information. About Knoll Inc. Headquartered in East Greenville, Pennsylvania, Knoll Inc. (NYSE: KNL) -- http://www.knoll.com/-- designs and manufactures branded office furniture products and textiles, serves clients worldwide. It distributes its products through a network of more than 300 dealerships and 100 showrooms and regional offices. The company has locations in Argentina, Australia, Bahamas, Cayman Islands, China, Colombia, Denmark, Finland, Greece, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Poland, Portugal and Singapore, among others. * * * Knoll Inc. carries Moody's Investors Service's B1 Corporate Family Rating and the company's $200 million senior secured revolver and $250 million senior secured term loan carry Moody's Ba2. Moody's assigned an LGD2 rating to both loans, suggesting note holders will experience a 27% loss in the event of a default. ========= I T A L Y ========= ALITALIA SPA: OAO Aeroflot Denies Stake Bid Pullout --------------------------------------------------- OAO Aeroflot denied reports that it will withdraw its bid for the Italian government's 39.9% stake in Alitalia S.p.A., Itar-Tass reports. The Russian carrier, however, said it plans no heavy spending in acquiring Alitalia, Itar-Tass relates. As reported in the TCR-Europe on May 30, 2007, Mikhail Poluboyarinov, Aeroflot deputy chief executive officer for finance and planning, said Aeroflot will offer less than the market price for Italy's stake in Alitalia, Bloomberg News reports. "We want to invest in the company itself and not in the Italian government," Mr. Poluboyarinov was quoted by Bloomberg News as saying. An Aeroflot pullout would have left the consortium of AirOne S.p.A. and Intesa-San Paolo S.p.A. as sole bidder for Alitalia. TCR-Europe reported on June 1, 2007, that the consortium of TPG Capital, MatlinPatterson Global Advisers LLC and Mediobanca S.p.A. has withdrawn its bid for the stake, saying it was not "in a position to comply with all of the requirements," which it described as "too complex and cryptic." Remaining bidders for Alitalia are partners OAO Aeroflot and Unicredit Italiano S.p.A.; and the consortium of AirOne S.p.A. and Intesa-San Paolo S.p.A.. Italy, which is selling a minimum of 39.9% stake in Alitalia, gave the bidders until 5:00 p.m. on July 2 to present their binding offers. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.com/ -- 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. ALITALIA SPA: 2006 Results Approval Hinges on Carrier's Future -------------------------------------------------------------- Deloitte & Touche may not approve Alitalia S.p.A.'s accounts for 2006 pending assurance of the carrier's future, Thomson Financial reports citing daily Finanza & Mercati. As reported in the TCR-Europe on May 29, 2007, Italian infrastructure minister Antonio Di Pietro said Alitalia may succumb to bankruptcy if bidders do not submit adequate offers to relaunch the ailing carrier. The TCR-Europe reported on May 28, 2007, that Alitalia reported EUR625.6 million in net loss on EUR4.72 billion in operating revenues for the year ended Dec. 31, 2006, compared with EUR176.6 million in net loss on EUR4.8 billion in operating revenues for the year ended Dec. 31, 2005. The company attributed its net loss mainly to a EUR197.3 million write off of its aging fleet. Alitalia also attributed its poor results on higher fuel costs, stiff competition from low-cost carriers, strikes and difficulties in achieving cost-cutting objectives. Around EUR100 million in losses were caused by strikes. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.com/ -- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. In Europe, the company reaches 45 airports, with 1,238 flights per week. In the rest of the world, the Alitalia Group's aircrafts operate out of 32 airports with 255 flights per week. The Alitalia Group network is centered on two main airports, Rome Fiumicino and Milan Malpensa, and includes, as of Sept. 30, 2006, an operating fleet of 182 aircrafts. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. FIAT SPA: S&P Lifts Corporate Credit Rating to BB+ -------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Italian industrial group Fiat SpA to 'BB+' from 'BB'. At the same time, the 'B' short-term corporate credit rating was affirmed. The outlook remains positive. "The upgrade and maintenance of a positive outlook reflect Fiat's continued improvements in profitability and cash flow generation over the past several quarters, with an uninterrupted decline in debt," said Standard & Poor's credit analyst Barbara Castellano. Fiat has demonstrated consistent earnings growth and operational improvements. These have been achieved through an increase in sales, sustained by the success of new products. In the first quarter of 2007, the group reported an operating margin of 4.4%, up from 2.6% in the same quarter of 2006. The auto and truck divisions showed the most remarkable improvements, with operating margins of 3.3% (versus 0.8%) and 6% (versus.3.4%), respectively. The debt reduction trend was confirmed in the first quarter, with reported net industrial debt of EUR 1.3 billion at March 31, 2007, versus EUR 1.8 billion at year-end 2006. Funds from operations to adjusted debt was about 30% at year-end 2006. "We look positively on Fiat's ability to widen and improve its product offer in its main businesses, as a larger array of successful products can increase the stability of results," said Ms. Castellano. In 2007, Fiat continued to enlarge its market share in the auto segment in Europe as a whole and in Italy. In Italy, the new Fiat Bravo, launched at the end of January, was already among the top 10 cars sold in April. The ratings continue to reflect, however, Fiat's strong reliance on the Italian market -- Italy represents about 40% of volume sales in the auto segment -- and limited presence in other Western European countries. Standard & Poor's expects Fiat to achieve further improvements in trading profits and cash generation in the medium term, with an increasing cash contribution from the auto segment. S&P believe that Fiat will continue to show steady improvements in the auto sector and to consolidate its position in the European market. S&P expect the group to confirm its ability to generate free operating cash flow and to maintain a conservative financial policy focused on debt reduction. The current ratings acknowledge continuing robust performance at CNH Global N.V. (BB+/Positive/--) and Iveco, which still have some margin improvement potential. The ratings do not, however, factor in any significant acquisitions or divestitures by the group. "To secure an upgrade within the next two years, Fiat needs to demonstrate its capacity to sustain the success achieved with new models in a tough competitive environment," said Ms. Castellano. "The full-year 2007 results should provide the first indication of whether the expected improvements in operating performance and cash generation have been achieved." Conversely, the outlook could be revised to stable if the automotive activities were to face an unexpected setback or if financial results demonstrated a deterioration with respect to their current levels. SEALY CORPORATION: Feb. 25 Balance Upside-Down by US$153.8 Mln -------------------------------------------------------------- Sealy Corporation’s balance sheet as of Feb. 25, 2007, showed total assets of $1 billion, total liabilities of $1.2 billion, and total stockholders’ deficit of $153.8 million. Net sales for the fiscal quarter ended Feb. 25, 2007, increased 4.3% to $412.6 million from $395.7 million for the comparable period a year earlier on unit volume growth of 12.2%. Partially offsetting this increase was a 7.1% decrease in average unit selling price. International net sales increased $14.7 million or 18.1% to $95.9 million. This translates to a 14.8% increase excluding the effects of currency fluctuation. The increase internationally represents a 33.2% increase in unit volume, partially offset by a decrease in AUSP primarily due to strategic pricing actions in Canada and increased sales of lower priced OEM products in Europe. Net income for the first quarter increased 7.2% to $24.6 million, versus $23 million for the comparable period a year ago. As of Feb. 25, 2007, Sealy’s cash and cash equivalent balance was $31.8 million versus $13.8 million as of Feb. 26, 2006. The company’s debt net of cash was $803 million at Feb. 25, 2007, compared to net debt of $958.2 million at the same time in the prior year. The company has incurred substantial debt, including senior credit facilities consisting of a $125 million senior secured revolving credit facility maturing in 2010 and senior secured term loan facilities maturing in August 2011 and August 2012 with an outstanding balance of $415 million at Feb. 25, 2007. The company also has an outstanding principal balance of $342 million at Feb. 25, 2007, on the 2014 Notes. Capital expenditures totaled $12.9 million for the three months ended Feb. 25, 2007. The company expects total 2007 capital expenditures to be about $40 million. However, the company believes it has sufficient liquidity to absorb such expenditures related to new products and that these expenses will not have a significant adverse impact on its operating cash flow. “As we anticipated and communicated over the past few quarters, the momentum in domestic volume that has been building continued during the first quarter as unit growth turned positive, due primarily to strength in our promotional and specialty product lines,” said David J. McIlquham, Sealy’s chairman and chief executive officer. “We are also pleased with the ongoing superior performance in our international markets as we build demand for our brands around the world. We are enthusiastic about the arrival onto our customers’ floors, beginning this quarter, of the innovative products which we introduced in January at the Las Vegas Furniture Market. This, combined with the start-up of our new domestic latex facility, the further integration of the new North American management team, and the expansion of our “lean” manufacturing program, should allow Sealy to continue to grow its market share and cash flow.” About Sealy Sealy Corporation (NYSE: ZZ) -- http://www.sealy.com/-- manufactures and markets a line of bedding products in the United States and internationally, including Brazil, Italy and Thailand. It offers mattresses and mattress foundations. The company’s innerspring bedding products are sold under Sealy, Sealy Posturepedic, Stearns & Foster, and Bassett brand names. Sealy also manufactures and markets visco-elastic and latex bedding products under the TrueForm, SpringFree, Stearns & Foster, Reflexions, Carrington Chase, MirrorForm, and Pirelli brands. * * * As reported in the Troubled Company Reporter on Feb. 7, 2007, Moody's Investors Service affirmed the Ba3 corporate family rating and B2 subordinated notes rating of Sealy Mattress Company and rated the amended senior secured credit facility Ba1. The outlook remains stable. WORLD OF FOOTBALL: Claims Registration Period Ends July 5 --------------------------------------------------------- Creditors of world of football GmbH have until July 5 to register their claims with court-appointed insolvency manager Rudolf Nirschl. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on July 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 Landshut Meeting Hall 8/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 insolvency manager can be reached at: Rudolf Nirschl Porschestr. 21 84030 Landshut Germany Tel: 0871/96607-0 Fax: 0871/67418 The District Court of Landshut opened bankruptcy proceedings against world of football GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: world of football GmbH Watzmannstr. 69 84034 Landshut Germany =================== K A Z A K H S T A N =================== ABYROY JER: Proof of Claim Deadline Slated for July 6 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Abyroy Jer insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Abai Ave. 21-27 Kostanai Kazakhstan AKTAUSKY MASHINOSTROITELNY: Claims Registration Ends July 6 ----------------------------------------------------------- LLP Aktau Engineering Plant Aktausky Mashinostroitelny Zavod has declared insolvency. Creditors have until July 6 to submit written proofs of claims to: LLP Aktau Engineering Plant Aktausky Mashinostroitelny Zavod Baza ARTS Promzona Aktau Mangistau Kazakhstan E-2 LLP: Creditors' Claims Due July 4 ------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP E-2 insolvent. Creditors have until July 4 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Sayin Str. 8-94 Almaty Kazakhstan Tel: 8 (3272) 56-75-46 8 777 293 23-15 IZAR-TORG LLP: Claims Registration Ends July 6 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Izar-Torg (RNN 092200220491). Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Room 208 Jangusurov Str. 113A Taldykorgan Almaty Kazakhstan Tel: 8 (32822) 24-19-77 KOITAS LLP: Claims Filing Period Ends July 6 -------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl has declared LLP Koitas insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Jambyl Suleymenov Str. 17 (11a) Taraz Jambyl Kazakhstan SIRIUS LLP: Claims Filing Period Ends July 6 -------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has LLP Sirius insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Post Office Box 72 Main Post Office Almaty 050000 Kazakhstan Tel: 8 333 241 79-98 START LLP: Creditors Must File Claims July 6 -------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl has declared LLP Start insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Jambyl Suleymenov Str. 17 (11a) Taraz Jambyl Kazakhstan VAN-SHAN LLP: Proof of Claim Deadline Slated for July 4 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Firm Van-Shan insolvent. Creditors have until July 4 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Sayin Str. 8-94 Almaty Kazakhstan Tel: 8 (3272) 56-75-46 8 777 293 23-15 WINTERLUX LLP: Creditors Must File Claims July 6 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Winterlux” insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Post Office Box 72 Main Post Office Almaty 050000 Kazakhstan Tel: 8 333 241 79-98 =================== K Y R G Y Z S T A N =================== CHUIBATYSHKURULUSH OJSC: Creditors Must File Claims by July 18 -------------------------------------------------------------- OJSC Chuibatyshkurulush has declared insolvency. Creditors have until July 18 to submit written proofs of claim to: OJSC Chuibatyshkurulush Depovskaya Str. 94 Novo-Pavlovka Chui Kyrgyzstan =================== L U X E M B O U R G =================== EVRAZ GROUP: Acquiring Highveld Steel's Entire Share Capital ------------------------------------------------------------ Evraz Group S.A. made an offer to acquire the entire issued share capital of Highveld Steel and Vanadium Corporation , other than those shares already held by Evraz, for a consideration of US$11.40 per Highveld share. The consideration of US$11.40 per offer share will be converted to and payable in cash in ZAR on the basis of the conversion rate, which will be published by Evraz on the closing date. At present Evraz owns approximately 54.1% of all outstanding shares in Highveld. Under South African law, Evraz is required to make a mandatory general offer to all shareholders of Highveld after its ownership position has exceeded 35%. The offer is valid until 5:00 p.m. South African time on July 4, 2007 unless extended by Evraz in accordance with applicable laws and regulations. Evraz has obtained all necessary regulatory approvals and therefore the offer is not subject to any conditions. Additionally, Evraz still has an option to buy the Credit Suisse shareholding of 24.9% in Highveld. “We believe the price we are offering to be fair and attractive. It reflects the growth of Highveld business and is approximately 31% higher than the price paid by Evraz to Anglo American - then equivalent to R62.36 - for a majority shareholding in the company. We believe that this price reflects the full value of the business of Highveld,” Evraz Chairman and CEO Alexander Frolov said. About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Evraz Group S.A. and assigned a Ba3 Probability-of-Default Rating to the company. Moody's also assigned these ratings: * Issuer: Evraz Group S.A. Projected Old Debt New Debt LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ------- 8.25% Senior Unsecured Regular Bond/ Debenture Due 2015 B2 B2 LGD5 88% * Issuer: Evraz Securities S.A. Old Debt New Debt LGD Loss Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ------- 10.875% Senior Unsecured Regular Bond/ Debenture Due 2009 B1 Ba3 LGD3 47% In November 2006, Fitch Ratings affirmed Luxembourg-based Evraz Group S.A.'s Issuer Default and senior unsecured ratings at BB and its Short-term rating at B. At the same time, Fitch has affirmed the ratings of Mastercroft Ltd., Evraz's core subsidiary with most of its assets concentrated in Russia- at Issuer Default BB and Short-term B. Evraz Securities SA's senior unsecured rating is affirmed at BB. Fitch said the Outlooks on the Issuer Default ratings are Stable. Standard & Poor's rated Evraz Group's 8-1/4% notes due November 2015 at B+. ===================== N E T H E R L A N D S ===================== FOOT LOCKER: Halts Plans to Acquire Genesco’s Stock --------------------------------------------------- In light of Genesco Inc.'s rejection of its acquisition proposal, Foot Locker Inc. disclosed that it was no longer pursuing its proposal. The company confirmed that it had made a proposal to Genesco Inc. last Thursday to acquire all of the outstanding common stock of Genesco for US$51 per share. In consultation with its financial advisor, Goldman Sachs & Co., the Board of Directors of Genesco considered the proposal and, following a thorough review, unanimously rejected the proposal having concluded that it was not in the best interests of Genesco's shareholders. The Board of Directors of Genesco invited Foot Locker to participate in the company's process on the same terms as other interested parties to date, but Foot Locker has declined to do so. About Genesco Inc. Headquartered in Nashville, Tennessee, Genesco Inc. (NYSE:GCO) -- http://www.genesco.com/-- retails branded footwear, licensed and branded headwear, and wholesaler of branded footwear. Its business segments include Journeys, Underground Station Group, Hat World, Johnston & Murphy, and Licensed Brands. The Journeys segment consists of the Journeys and Journeys Kidz retail footwear chains. The Underground Station Group segment includes the Underground Station and Jarman retail footwear chains. The Hat World segment includes the Hat World, Lids, Hat Zone, Cap Connection and Head Quarters retail headwear chains. The Johnston & Murphy segment includes Johnston & Murphy retail operations, and wholesale distribution. The Licensed Brands segment is engaged in the wholesale distribution of footwear manufactured under the Dockers and Perry Ellis brands, under licenses from Levi Strauss & Company and PEI, Inc. As of June 9, 2006, it operated a total of 1,773 stores: 1,755 stores throughout the United States and Puerto Rico, and 18 stores in Canada. About Foot Locker Headquartered in New York City, Foot Locker, Inc. (NYSE: FL) -- http://www.footlocker-inc.com/-- retails athletic footwear and apparel. The company operates approximately 3,900 athletic retail stores in 17 countries in North America, The Netherlands and Australia under the brand names Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, and Champs Sports. The Company, through its subsidiaries, operates in two segments: Athletic Stores and Direct-to-Customers. The Athletic Stores segment is an athletic footwear and apparel retailer, whose formats include Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports and Footaction. The Direct-to-Customers segment reflects Footlocker.com, Inc., which sells, through its affiliates, including Eastbay, Inc., to customers through catalogs and Internet Websites. The Foot Locker brand is the Company's principal brand. In March of 2006, Foot Locker, Inc. entered into a 10-year area development agreement with the Alshaya Trading Co. W.L.L., in which the Company agreed to enter into separate license agreements for the operation of a minimum of 75-foot Locker stores. FOOT LOCKER: S&P Keeps Negative Watch After Rejected Genesco Bid ---------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on New York City-based Foot Locker Inc., including its 'BB+' corporate credit rating, remain on CreditWatch with negative implications following the company's announcement that it launched a bid to acquire Genesco Inc. (BB-/Watch Dev/--) for approximately $1.3 billion in cash. Genesco has rejected the $51.00 per share proposal having concluded that it was not in the best interests of its shareholders. "Because Standard & Poor's expects that a significant portion of any revised acquisition bid could be funded with debt, this would result in deterioration in Foot Locker's credit metrics and a likely downgrade," said Standard & Poor's credit analyst David Kuntz. At the same time, ratings for Genesco remain on CreditWatch with developing implications, suggesting that a downgrade for Foot Locker may be limited to two notches. If a transaction is subsequently completed, Genesco's rating would be the same as Foot Locker's. S&P will continue to monitor the ratings as additional information becomes available. Headquartered in New York City, Foot Locker, Inc. (NYSE: FL) -- http://www.footlocker-inc.com/-- retails athletic footwear and apparel. The company operates approximately 3,900 athletic retail stores in 17 countries in North America, The Netherlands and Australia under the brand names Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, and Champs Sports. =========== N O R W A Y =========== GEOKINETICS: Completes Amended Credit Agreement with PNC Bank ------------------------------------------------------------- Geokinetics Inc. had completed an Amended and Restated Credit Agreement with PNC Bank, National Association. The company said that the new credit agreement increases its existing US$24,000,000 credit facility to a US$60,000,000 revolving line of credit, which may be increased to US$70,000,000 at the request of the company. The company said that it plans to use the proceeds from the increased credit facility for capital expenditures and general corporate purposes. Geokinetics Inc., based in Houston, Texas, is a leading global leader of seismic acquisition and high-end seismic data processing and interpretation services to the oil and gas industry. Geokinetics provides seismic data acquisition services in North America, Indonesia, Norway and Brazil. Geokinetics operates in some of the most challenging locations in the world from the Arctic to mountainous jungles to the transition zone environments. * * * As reported in Troubled Company Reporter on Dec. 22, 2006, Standard & Poor's Ratings Services affirmed its 'CCC+' issue rating and '3' recovery rating on Geokinetics Inc.'s second priority floating rate notes due in 2012, after the disclosure that the offering will be increased to US$110 million from US$100 million. =========== R U S S I A =========== ALEKSEEVSKOYE LLC: Creditors Must File Claims by June 12 -------------------------------------------------------- Creditors of LLC Alekseevskoye have until June 12 to submit proofs of claim to: A. Vaysberg Insolvency Manager Sibirskaya Str. 47 664082 Omsk Russia The Arbitration Court of Omsk will convene at 2:00 p.m. on Oct. 10 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A46-2759/2007. The Debtor can be reached at: LLC Alekseevskoye Transportnaya Str. 1 Moskalenki 646070 Omsk Russia AUTOMOBILE OPERATING: Creditors Must File Claims by July 12 ----------------------------------------------------------- Creditors of OJSC Automobile Operating Company have until July 12 to submit proofs of claim to: I. Sabirov Insolvency Manager Post User Box 57 Chernyshevskogo Str. 43/2 Kazan 420202 Tatarstan Russia The Arbitration Court of Tatarstan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A65-23326/2006-SG4-27. The Court is located at: The Arbitration Court of Tatarstan Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Russia The Debtor can be reached at: OJSC Automobile Operating Company Kazan Tatarstan Russia BREWER LLC: Volgograd Bankruptcy Hearing Slated for July 30 ----------------------------------------------------------- The Arbitration Court of Volgograd will convene on July 30 to hear the bankruptcy supervision procedure on LLC Brewer. The case is docketed under Case No. A12-1877/07-s50. The Temporary Insolvency Manager is: T. Kleshnina Post User Box 244 400005 Volgograd Russia The Debtor can be reached at: LLC Brewer Lenina Pr. 67 Volgograd Russia CHERLAKSKIY OJSC: Creditors Must File Claims by June 12 ------------------------------------------------------- Creditors of OJSC Butter Making Plant Cherlakskiy have until June 12 to submit proofs of claim to: A. Chingaev Insolvency Manager 18th km Moskovskoye Shosse Samara Russia The Arbitration Court of Omsk will convene at 2:00 p.m. on Sept. 25 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A46-2277/2007. The Debtor can be reached at: OJSC Butter Making Plant Cherlakskiy Molkombinatskaya Str. 23 Bolshoj Atamas Cherlakskiy 646273 Omsk Russia EVRAZ GROUP: Acquiring Highveld Steel's Entire Share Capital ------------------------------------------------------------ Evraz Group S.A. made an offer to acquire the entire issued share capital of Highveld Steel and Vanadium Corporation , other than those shares already held by Evraz, for a consideration of US$11.40 per Highveld share. The consideration of US$11.40 per offer share will be converted to and payable in cash in ZAR on the basis of the conversion rate, which will be published by Evraz on the closing date. At present Evraz owns approximately 54.1% of all outstanding shares in Highveld. Under South African law, Evraz is required to make a mandatory general offer to all shareholders of Highveld after its ownership position has exceeded 35%. The offer is valid until 5:00 p.m. South African time on July 4, 2007 unless extended by Evraz in accordance with applicable laws and regulations. Evraz has obtained all necessary regulatory approvals and therefore the offer is not subject to any conditions. Additionally, Evraz still has an option to buy the Credit Suisse shareholding of 24.9% in Highveld. “We believe the price we are offering to be fair and attractive. It reflects the growth of Highveld business and is approximately 31% higher than the price paid by Evraz to Anglo American - then equivalent to R62.36 - for a majority shareholding in the company. We believe that this price reflects the full value of the business of Highveld,” Evraz Chairman and CEO Alexander Frolov said. About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Evraz Group S.A. and assigned a Ba3 Probability-of-Default Rating to the company. Moody's also assigned these ratings: * Issuer: Evraz Group S.A. Projected Old Debt New Debt LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ------- 8.25% Senior Unsecured Regular Bond/ Debenture Due 2015 B2 B2 LGD5 88% * Issuer: Evraz Securities S.A. Old Debt New Debt LGD Loss Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ------- 10.875% Senior Unsecured Regular Bond/ Debenture Due 2009 B1 Ba3 LGD3 47% In November 2006, Fitch Ratings affirmed Luxembourg-based Evraz Group S.A.'s Issuer Default and senior unsecured ratings at BB and its Short-term rating at B. At the same time, Fitch has affirmed the ratings of Mastercroft Ltd., Evraz's core subsidiary with most of its assets concentrated in Russia- at Issuer Default BB and Short-term B. Evraz Securities SA's senior unsecured rating is affirmed at BB. Fitch said the Outlooks on the Issuer Default ratings are Stable. Standard & Poor's rated Evraz Group's 8-1/4% notes due November 2015 at B+. EXPERT-INVEST CJSC: Creditors Must File Claims by July 12 --------------------------------------------------------- Creditors of CJSC Expert-Invest (TIN 7718503211) have until July 12 to submit proofs of claim to: N. Biryukova Insolvency Manager To be called for Ms. N. Biryukova Chulkovo Ramenskiy 140125 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-10479/07-101-17B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Expert-Invest Building 2 Otkytoe Shosse 48A Moscow Russia FIRST CJSC: Creditors Must File Claims by June 12 ------------------------------------------------- Creditors of CJSC New Investment Company First have until June 12 to submit proofs of claim to: E. Ovcharenko Insolvency Manager Puskina Str. 47/1 350063 Krasnodar Russia The Arbitration Court of Krasnodar commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-224/2007-60/43-B. The Court is located at: The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: CJSC New Investment Company First Krasnodar Russia KPD-1 CJSC: Court Names A. Chernik as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Ulyanovsk appointed A. Chernik as Insolvency Manager for CJSC Factory KPD-1 (TIN 7327004334). He can be reached at: A. Chernik Post User Box 90 603155 Nizhniy Novgorod Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A72-2654/05-21/11-B. The Debtor can be reached at: CJSC Factory KPD-1 Moskovskoye Shosse 26 432026 Ulyanovsk Russia MERCURY OJSC: Orel Bankruptcy Hearing Slated for Sept. 5 -------------------------------------------------------- The Arbitration Court of Orel will convene at 9:50 a.m. on Sept. 5 to hear the bankruptcy supervision procedure on OJSC Mercury. The case is docketed under Case No. A48-1356/07-17b. The Temporary Insolvency Manager is: V. Stavtsev Office 49 Gorkogo Str. 45 302040 Orel Russia The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Russia The Debtor can be reached at: OJSC Mercury Moskovskaya Str. 17 302030 Orel Russia NORTH-OIL-PRODUCT: Creditors Must File Claims by July 12 -------------------------------------------------------- Creditors of LLC North-Oil-Product have until July 12 to submit proofs of claim to: A. Kozhematov Insolvency Manager Post User Box 20647 660017 Krasnoyarsk Russia The Arbitration Court of Krasnoyarsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-3926/2007. The Court is located at: The Arbitration Court of Krasnoyarsk Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: LLC North-Oil-Product Privokzalnaya Str. 1-21 Lesosibirsk Krasnoyarsk Russia NOVATEK OAO: Earns RUR4.34 Billion for First Quarter 2007 --------------------------------------------------------- OAO Novatek posted RUR4.34 billion in net income on RUR14.87 billion in net revenues for the first quarter ended March 31, 2007, compared with RUR3.7 billion in net income on RUR11.38 billion in net revenues for the first quarter ended March 31, 2006. The figures were prepared according to International Financial Accounting Standards. As of March 31, 2007, 182,000 tons of stable gas condensate was recorded as "goods in transit" compared to 141,000 tons as at March 31, 2006. Novatek also recorded 107 million cubic meters of natural gas as inventory and held in underground storage facilities maintained by OAO Gazprom. Natural gas volumes injected into underground storage facilities fluctuate period-to-period depending on market conditions, storage capacity, and field development plans. As March 31, 2007, Novatek had RUR89.96 billion in total assets, RUR16.9 billion in total liabilities and RUR73.06 billion in shareholders' equity. About Novatek Headquartered in Tarko-Sale, Russia, OAO Novatek – http://www.novatek.ru/ -- engages in the exploration, production and processing of natural gas and liquid hydrocarbons. The Company's upstream activities are concentrated in the prolific Yamal-Nenets Region in Western Siberia. * * * Moody's Investors Service's confirmed its Ba2 Corporate Family Rating and assigned a Ba2 probability of default rating to OAO Novatek. Standard & Poor's rates Novatek's long-term foreign and local issuer credit at BB- with a stable outlook. ROSNEFT OIL: Defers Sinopec Supply Deal Despite Lower Tariff ------------------------------------------------------------ OAO Rosneft Oil Co. will not sign an oil transport contract with China Petroleum & Chemical Corp. despite a cut in railway tariffs, Interfax News reports citing Rosneft President Sergei Bogdanchikov. Rosneft and Unipec, Sinopec's trading unit, had planned to sign a US$1 billion deal to supply up to three million tons of oil via the Naushki border at the Russian-Mongolian boundary, Interfax relates. Mr. Bogdanchikov said that the economic conditions are not favorable enough to sign a contract, despite a 22% discount imposed by the Federal Tariffs Service on oil shipped by rail to China. In 2006, Russian Railways -- mainly via the Zabaikalsk border -- transported to China around 10 million tons of oil, of which 8.8 million tons were from Rosneft, RIA Novosti notes. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * In a TCR-Europe report on Mar. 23, 2007, Fitch Ratings notes that Rosneft's plans to borrow US$22 billion from a group of eight banks in two credit arrangements of US$13 billion maturing in 12 months and US$9 billion maturing in 18 months is currently incorporated into the company's local and foreign currency Issuer Default ratings of 'BB+' Rating Watch Positive. In a TCR-Europe report on Jan. 16, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian OJSC Oil Company Rosneft to 'BB+' from 'BB' and removed it from CreditWatch, where it had been placed with positive implications on Nov. 15, 2006. S&P said the outlook is developing. SEL-KHOZ-TEKHNIKA ISILKULSKAYA: Claims Deadline Set July 12 ----------------------------------------------------------- Creditors of Agricultural Machinery Ojsc Sel-Khoz-Tekhnika Isilkulskaya (TIN 5514002171) have until July 12 to submit proofs of claim to: S. Lepeshonkov Insolvency Manager Room 27 Internatsionalnaya Str. 14 644099 Omsk Russia The Arbitration Court of Omsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A46-18349/2006. The Debtor can be reached at: Agricultural Machinery OJSC Sel-Khoz-Tekhnika Isilkulskaya Omsk Russia SIBIRSKIY GRAIN: Creditors Must File Claims by June 12 ------------------------------------------------------ Creditors of CJSC Sibirskiy Grain Alliance (TIN 5507056112) have until June 12 to submit proofs of claim to: V. Ratkovskiy Temporary Insolvency Manager 13th floor K. Libknekhta Str. 35 644043 Omsk Russia The Arbitration Court of Omsk will convene at 10:40 a.m. on Aug. 14 to hear the company’s bankruptcy supervision procedure. The case is docketed under Case No. A40-2958/07-38-5B. The Debtor can be reached at: CJSC Sibirskiy Grain Alliance 2nd Kazakhstanskaya Str. 23 644036 Omsk Russia SIMBIRSK-FLOUR OJSC: Creditors Must File Claims by July 12 ---------------------------------------------------------- Creditors of OJSC Simbirsk-Flour have until July 12 to submit proofs of claim to: E. Shirokova Insolvency Manager Post User Box 1068 432026 Ulyanovsk Russia The Arbitration Court of Ulyanovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A72-13346/05-19/88-b. The Debtor can be reached at: OJSC Simbirsk-Flour Moskovskoye Shosse 52a 432032 Ulyanovsk Russia UZHUR-AGRO-SNAB: Creditors Must File Claims by July 12 ------------------------------------------------------ Creditors of OJSC Uzhur-Agro-Snab have until July 12 to submit proofs of claim to: A. Kozhematov Insolvency Manager Post User Box 20647 660017 Krasnoyarsk Russia The Arbitration Court of Krasnoyarsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-3930/2007. The Court is located at: The Arbitration Court of Krasnoyarsk Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: OJSC Uzhur-Agro-Snab 2nd Beregovaya Str. 20 Uzhur Uzhurskiy 662252 Krasnoyarsk Russia VNESHTORGBANK JSC: Promstroybank Takeover Slated for Yearend ------------------------------------------------------------ JSC Vneshtorgbank will take over Industry & Construction Bank of St. Petersburg (Promstroybank) by the end of 2007, RIA Novosti reports citing VTB-24 CEO Mikhail Zadornov. Mr. Zadornov told RIA Novosti that the takeover will involve a share swap between VTB and Promstroybank. He, however, said the banks were still determining the share-swap ratio. VTB currently owns 75% plus three shares of Promstroybank. The company has increased its operating volumes and profit in the first half of 2006 to its acquisition of Promstroybank. The regional bank's shareholders has already approved a takeover by VTB. As reported in the TCR-Europe on Oct. 27, 2006, once a decision for takeover is reached, Vneshtorgbank will apply for approval from the Russian government. Headquartered in St. Petersburg, Russia, Industry and Construction Bank -- http://www.icbank.ru/-- engages in universal banking with a special franchise in corporate finance and investment banking. 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. The Group operates 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. * * * JSC Vneshtorgbank carries a C/D Individual rating and 2 Support ratings from Fitch. WINE TRADE: Creditors Must File Claims by July 12 ------------------------------------------------- Creditors of LLC Wine Trade Company (TIN 0323121370) have until July 12 to submit proofs of claim to: V. Togmilov Insolvency Manager Office 7 Solnechnaya Str. 5 Ulan-Ude 670031 Buryatiya Russia The Arbitration Court of Buryatiya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-10-5934/06. The Debtor can be reached at: LLC Wine Trade Company Solnechnaya Str. 502 Ulan-Ude Buryatiya Russia ========= S P A I N ========= SUNNY DELIGHT: Improved Performance Cues S&P’s Upgrade to CCC+ -------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Cincinnati, Ohio-based Sunny Delight Beverages Co. to 'CCC+' from 'CCC'. The outlook is developing. "The upgrade reflects Sunny Delight's increased financial flexibility, reduced leverage from its recent refinancing, and somewhat improved operating performance," said Standard & Poor's credit analyst Bea Chiem. However, S&P remain concerned about the company's ability to stabilize its sales volumes in North America and certain parts of Europe, to increase sales volume with new-product launches, to offset rising commodity costs, and to maintain or improve its operating margins in order to sustain adequate cushion on its covenants. Sunny Delight is a global manufacturer and distributor of juice drinks under the Sunny Delight brand name. The rating on the company reflects its soft operating trends, narrow product portfolio, limited size within the highly competitive and somewhat fragmented global juice industry, and leveraged financial profile. The juice drink company is majority owned by financial sponsor J.W. Childs Associates L.P. Sunny Delight Beverages Co. -- http://www.sunnyd.com/-- manufactures juice-based drinks in North America and Western Europe. The company was formed from brands acquired from Procter & Gamble in 2004. Its worldwide headquarters are in Cincinnati, Ohio. The company also has operations in Canada, United Kingdom, Portugal, Spain, and France. ===================== S W I T Z E R L A N D ===================== ALOIS HEULE: Creditors' Liquidation Claims Due July 15 ------------------------------------------------------ Creditors of JSC Alois Heule have until July 15 to submit their claims to: Alois Heule-Pfiffner Liquidator Thomasau 8 9443 Widnau SG Switzerland The Debtor can be reached at: JSC Alois Heule Widnau SG Switzerland CDT CREATIVE: Zug Court Starts Bankruptcy Proceedings ----------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against LLC CDT Creative Design Team on April 17. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland The Debtor can be reached at: LLC CDT Creative Design Team JSC AFL Gartenstr. 2 6304 Zug Switzerland ISOCAST JSC: Creditors' Liquidation Claims Due June 22 ------------------------------------------------------ Creditors of JSC Isocast have until June 22 to submit their claims to: Panyotis Asteris Liquidator Schubelstrasse 6 8700 Kusnacht ZH Switzerland The Debtor can be reached at: JSC Isocast Kusnacht ZH Switzerland LONELY MOUNTAIN: Creditors' Liquidation Claims Due June 15 ---------------------------------------------------------- Creditors of LLC Lonely Mountain have until June 15 to submit their claims to: Daniel Zimmermann Liquidator JSC Wirtschaftsprufung Trevisca Zugerstrasse 74 6340 Baar ZG Switzerland The Debtor can be reached at: LLC Lonely Mountain Baar ZG Switzerland MASI LLC: Aargau Court Starts Bankruptcy Proceedings ---------------------------------------------------- The Bankruptcy Court of Aargau commenced bankruptcy proceedings against LLC Masi on April 30. The Bankruptcy Service of Aargau can be reached at: Bankruptcy Service of Aargau Office Oberentfelden 5036 Oberentfelden Aarau AG Switzerland The Debtor can be reached at: LLC Masi Roggenhausenstrasse 31 5035 Unterentfelden Aarau AG Switzerland MUNOT OPTIK: Creditors' Liquidation Claims Due June 15 ------------------------------------------------------ Creditors of JSC Munot Optik have until June 15 to submit their claims to: Roost Martin Liquidator Bachtelstrasse 23 8200 Schaffhausen Switzerland The Debtor can be reached at: JSC Munot Optik Schaffhausen Switzerland P & S IMMOBILIENGESELLSCHAFT: Liquidation Claims Due June 18 ------------------------------------------------------------ Creditors of JSC P&S Immobiliengesellschaft have until June 18 to submit their claims to: JSC Mathis Liquidator Zellerstrasse 58 8038 Zurich Switzerland The Debtor can be reached at: JSC P&S Immobiliengesellschaft Zurich Switzerland PARTNERBAU JSC: Creditors' Liquidation Claims Due June 15 --------------------------------------------------------- Creditors of JSC Partnerbau have until June 15 to submit their claims to: JSC Romag Treuhand Liquidator Alleestr. 20 8590 Romanshorn Arbon TG Switzerland The Debtor can be reached at: JSC Partnerbau Kreuzlingen TG Switzerland PPR – GARAGE MEIER: Aargau Court Starts Bankruptcy Proceedings -------------------------------------------------------------- The Bankruptcy Court of Aargau commenced bankruptcy proceedings against LLC PPR - Garage Meier Amsler on April 30. The Bankruptcy Service of Aargau can be reached at: Bankruptcy Service of Aargau Office Oberentfelden 5036 Oberentfelden Aarau AG Switzerland The Debtor can be reached at: LLC PPR - Garage Meier Amsler Tellistrasse 118 5000 Aarau AG Switzerland TRUBLI-BAR LLC: Creditors' Liquidation Claims Due June 15 --------------------------------------------------------- Creditors of LLC Trubli-Bar have until June 15 to submit their claims to: Walter Barandun Liquidator Widenbuelstr. 2 8103 Unterengstringen Dietikon ZH Switzerland The Debtor can be reached at: LLC Trubli-Bar Zurich Switzerland ============= U K R A I N E ============= BARANOVKA MILK: Claims Filing Deadline Set June 13 -------------------------------------------------- Creditors of OJSC Zhytomir Milk Subsidiary Company Baranovka Milk Plant (code EDRPOU 13553025) have until June 13 to submit their proofs of claim to: Leonid Shyshkin Liquidator Apartment 19 Cherniakhovsky Str. 20A 10014 Zhytomir Ukraine The Economic Court of Zhytomir commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 7/25-b. The Court is located at: The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Debtor can be reached at: OJSC Zhytomir Milk Subsidiary Company Baranovka Milk Plant Levanevsky Str. 57 Baranovka 12700 Zhytomir Ukraine CHEMISTRY OJSC: Creditors Must File Claims by June 9 ---------------------------------------------------- Creditors OJSC Agricultural Chemistry (code EDRPOU 05491310) of have until June 9 to submit their proofs of claim to: T. Melnik Temporary Insolvency Manager Apartment 9 Pervomayskaya Str. 6 Derazhnia 32200 Hmelnitskiy Ukraine The Economic Court of Hmelnitskiy commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 4/65-B The Court is located at: The Economic Court of Hmelnitskiy Nezalezhnosti Square 1 29000 Hmelnitskiy Ukraine The Debtor can be reached at: OJSC Agricultural Chemistry Zheleznodorozhnaya Str. 62 Derazhnia 32200 Hmelnitskiy Ukraine CHERNORUDKA AGRICULTURAL: Creditors Must File Claims by June 13 --------------------------------------------------------------- Creditors of State Enterprise Chernorudka Agricultural LLC (code EDRPOU 00729345) have until June 13 to submit their proofs of claim to: Liudmila Shvediuk Temporary Insolvency Manager Shkolny Lane 9 Apartment 44 Zhytomir Ukraine The Economic Court of Zhytomir commenced bankruptcy supervision procedure on the company. The Court is located at: The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Debtor can be reached at: State Enterprise Chernorudka Agricultural LLC Zhovtneve Ruzhynsky District Zhytomir Ukraine PERSHOTRAVENSK MINE 4: Creditors Must File Claims by June 10 ------------------------------------------------------------ Creditors of OJSC Pershotravensk Mine Building Department 4 have until June 10 to submit their proofs of claim to: Alexander Novikov Temporary Insolvency Manager P.O. Box 1809 49027 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy supervision procedure on the company on March 7. The case is docketed under Case No. B 15/37-07. The Court is located at: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: OJSC Pershotravensk Mine Building Department 4 Komsomolskaya Str. 1-a Pershotravensk 52803 Dnipropetrovsk Ukraine POBEDA: Creditors Must File Claims by June 10 --------------------------------------------- Creditors of Agricultural Production Cooperative Pobeda (code EDRPOU 03734228) have until June 10 to submit their proofs of claim to: M. Tomashuk Temporary Insolvency Manager 1st Lesovoy Lane 16 Maydan-Chapelsky Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy supervision procedure on the company. case is docketed under Case No. 5/ 45-07. The Court is located at: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Debtor can be reached at: Agricultural Production Cooperative Pobeda Mikhaylovka Gaysin District Vinnica Ukraine QUARTA-WEST LLC: Creditors Must File Claims by June 9 ----------------------------------------------------- Creditors of LLC Quarta-West (code EDRPOU 30475549) have until June 9 to submit their proofs of claim to: Roman Senik Temporary Insolvency Manager P.O. Box 26 76008 Ivano-Frankovsk Ukraine The Economic Court of Ivano-Frankovsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. B-16/63. The Court is located at: The Economic Court of Ivano-Frankovsk Shevchenko Str. 16a 76000 Ivano-Frankovsk Ukraine The Debtor can be reached at: LLC Quarta-West Soldiers Internationalists Str. 6 76019 Ivano-Frankovsk Ukraine RAYKOVTSY AGRICULTURAL: Claims Filing Deadline Set June 13 ---------------------------------------------------------- Creditors of Raykovtsy Agricultural LLC (code EDRPOU 05575583) have until June 13 to submit their proofs of claim to: Sergey Shyshkin Liquidator Apartment 47 Institution Str. 17/3 29016 Hmelnitsky Ukraine The Economic Court of Hmelnitskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 13/186-B. The Court is located at: The Economic Court of Hmelnitskiy Nezalezhnosti Square 1 29000 Hmelnitskiy Ukraine The Debtor can be reached at: Raykovtsy Agricultural LLC Raykovtsy Hmelnitskiy Ukraine REAL-TRADE COMPANY: Creditors Must File Claims by June 9 -------------------------------------------------------- Creditors of LLC Real-Trade Company (code EDRPOU 32244257) have until June 9 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskiy Boulevard 44-B Ukraine 01030 Kiev The Economic Court of Kiev commenced the bankruptcy supervision procedure on the company on April 16. The case is docketed under Case No. 15/179-b. The Debtor can be reached at: LLC Real-Trade Company 29 Apartment 25 Chokolovsky Boulevard Kiev Ukraine YABLUNETS BREADRECEIVING: Creditors Must File Claims by June 10 --------------------------------------------------------------- Creditors of OJSC Yablunets Breadreceiving Enterprise (code EDRPOU 00954030) have until June 10 to submit their proofs of claim to: Vladimir Zavalniuk Temporary Insolvency Manager Kozitsky Str. 46 21050 Vinnica Ukraine The Economic Court of Zhytomir commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 4/217-b. The Court is located at: The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Debtor can be reached at: OJSC Yablunets Breadreceiving Enterprise Lenin Str. 81 Yablunets Emilchinsky District 11250 Zhytomir Ukraine ZHYTOMIR BREAD: Creditors Must File Claims by June 9 ---------------------------------------------------- Creditors of OJSC Zhytomir Bread have until June 9 to submit their proofs of claim to: The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Economic Court of Zhytomir commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 4/41-b. The Debtor can be reached at: OJSC Zhytomir Bread Lesia Ukrainka Str. 33 10001 Zhytomir Ukraine =========================== U N I T E D K I N G D O M =========================== ABC SKIP: Eileen T. F. Sale Leads Liquidation Procedure ------------------------------------------------------- Eileen T. F. Sale of Sale Smith & Co. Ltd. was appointed liquidator of ABC Skip Hire Ltd. On May 22 for the creditors' voluntary winding-up procedure. The company can be reached at: ABC Skip Hire Ltd. Broad Lane Walsall WS3 2TJ England Tel: 01922 711 277 ALLIANCE ATLANTIS: Fairness Hearing on Plan Slated for June 28 -------------------------------------------------------------- The Ontario Superior Court has extended until June 28, 2007, Alliance Atlantis Communications Inc.'s fairness hearing in connection with its Plan of Arrangement, pursuant to which AA Acquisition Corp., a subsidiary of CanWest MediaWorks Inc., would acquire all of the outstanding shares of Alliance Atlantis for $53 cash per share. Alliance Atlantis, AA Acquisition, and GS Capital Partners VI, L.P. have also agreed with Movie Distribution Income Fund and its subsidiary trust, Movie Distribution Holding Trust, that the claim by Holding Trust announced in a media release on April 4, 2007 relating to whether Holding Trust's consent was required in connection with the Plan would be heard on the same date. "Holding Trust, AA Acquisition and GS Capital Partners VI, L.P., with assistance from management of MPD and Alliance Atlantis, continue to engage in discussions," said David Lazzarato, Executive VP and Chief Financial Officer of Alliance Atlantis. "As I said previously, delaying the court date permits the discussions to continue. As we expect the Arrangement to be completed in July or early August, we continue to believe there is ample time for this process to run its course. We are hopeful that the parties will reach a satisfactory understanding but, of course, we cannot currently predict its outcome." Separately, Alliance Atlantis obtained relief from the Ontario Superior Court of Justice from the requirement to hold its annual general meeting by the end of June 2007. The Court extended the date to Dec. 31, 2007. About Alliance Atlantis Based in Toronto, Canada, Alliance Atlantis Communications Inc. -- http://www.allianceatlantis.com/-- (TSE: AAC.A and AAC.B) is a specialty channel broadcaster. The company co-produces and distributes the hit CSI franchise and indirectly holds a 51% limited partnership interest in Motion Picture Distribution LP. The company has motion picture distribution operations in the United Kingdom and Spain. * * * As reported in the Troubled Company Reporter on Jan. 15, 2007, Moody's Investors Service changed the direction of its current ratings review of Alliance Atlantis to down from up. The company currently carry these ratings: Corporate Family Rating at Ba2; Probability-of- Default rating at Ba3; Senior Secured rating at Ba1; and Loss-Given-Default rating for Senior Secured debt, LGD2 (26%). As reported in the Troubled Company Reporter on Jan. 12, 2007, Standard & Poor's Ratings Services said that the ratings on Alliance Atlantis, including the 'BB' long-term corporate credit rating, remain on CreditWatch. BRITISH ENERGY: DTI Selling 25% Stake for GBP2 Billion ------------------------------------------------------ The U.K. Department of Trade and Industry is selling 25% of its stake in British Energy Group plc, reducing its holding in the company to 39%, Christine Buckley and Steve Hawkes write for The Times. According to the report, the DTI intends to dispose of up to 450 million shares, which could raise more than GBP2 billion. Net proceeds from the sale will go to the Nuclear Liabilities Fund to diversify its assets which will be used to meet the future decommissioning costs of BE’s eight nuclear power stations. The NLF was set up at the time of BE’s privatization in 1996 and currently some 87% of its assets are linked to the company. Bill Coley, chief executive of BE, said private equity companies, rival utilities and electricity suppliers are considering forming joint ventures, The Times relates. Restructuring Following a sudden deterioration in its financial situation, the private sector nuclear electricity generator, BE approached the Government in early September 2002 seeking immediate financial support and discussions about longer term restructuring. The Government provided BE with a short-term credit facility of up to GBP650 million rescue aid, approved by the European Commission, which has been fully repaid. A solvent restructuring plan was put in place and agreed with creditors. Government played its part by: * taking responsibility for BE's historic nuclear fuel liabilities managed by BNFL at an average cost of GB100-200 million pa for the next 10 years, falling thereafter; and * underwriting the NLF, a subsidiary of the DTI which will meet British Energy's costs of decommissioning and other uncontracted nuclear liabilities, in the event that its assets fall short of those liabilities. The restructuring of BE was completed in early 2005. BE has undertaken to make certain payments into the NLF. These include payments which give the NLF a majority economic interest in BE. At the direction of the Secretary of State, the NLF may convert this economic interest, in whole or in part, into shares in BE. In July 2006 Alistair Darling, the Secretary of State for Trade & Industry, said in a written statement to Parliament: "The Chancellor stated in his Budget 2006 announcement that the Government would be prepared to consider selling part of their stake in British Energy. I confirm that the Government will actively consider a sale of part of their stake in British Energy via a capital markets transaction." Consideration will need to be given to the interests of the taxpayer, the company and other stakeholders before any transaction is progressed. The main objectives for the Government have been and continue to be nuclear safety and security of supply. About the Company Headquartered in South Lanarkshire, British Energy -- http://www.british-energy.com/-- is U.K.'s largest power generator, producing 20% of the country's power through eight nuclear facilities in Scotland and England (total capacity is 9,600 MW). British Energy also owns the 2,000-MW coal-fired plant (Eggborough) in England. The company emerged as British Energy Limited with a new holding company, British Energy group PLC, after the court approved its scheme of arrangement in January. Under the program, existing creditors received 97.5% of equity in the new group. * * * In December 2006, Standard & Poor's Ratings Services revised its outlook on U.K.-based nuclear generator British Energy Group PLC, and its subsidiary, British Energy Holdings PLC, to negative from stable. At the same time, the 'BB+' long-term corporate credit ratings on both entities were affirmed. DEE-SIGN WINDOWS: Appoints Stephen Franklin as Liquidator --------------------------------------------------------- Stephen Franklin of Panos Eliades, Franklin & Co. was appointed liquidator of Dee-Sign Windows & Doors Ltd. on May 22 for the creditors' voluntary winding-up procedure. The company can be reached at: Dee-Sign Windows & Doors Ltd. Jasmine Road Nottingham NG5 1JN England Tel: 0115 970 8123 DONOVAN CONSTRUCTION: Names Graham Irvine Born Liquidator --------------------------------------------------------- Graham Irvine Born was appointed liquidator of Donovan Construction & Development Ltd. on May 10 for the creditors' voluntary winding-up proceeding. The company can be reached at: Donovan Construction & Development Ltd. Unit 6 Norfolk House Williamsport Way Lion Barn Industrial Estate Needham Market Ipswich IP6 8RW England Tel: 01449 723 344 Fax: 01268 777 866 ENRON CORP: Settles Equity Transactions Suit with Credit Suisse --------------------------------------------------------------- Enron Creditors Recovery Corp. has reached an agreement with Credit Suisse International and Credit Suisse Securities (USA) LLC to settle the equity transactions adversary proceeding that Enron filed against Credit Suisse in the Enron bankruptcy case. According to the terms of the agreement, Credit Suisse will pay Enron US$61.5 million in cash. Credit Suisse, in entering into the settlement, denies any liability. With this settlement, all bankruptcy proceedings between Enron and Credit Suisse are resolved. Commenting on the settlement, Enron Board Chairman John J. Ray III said, "We are pleased with this settlement reached with Credit Suisse and look forward to successfully resolving the remaining equity transactions cases." Equity transactions cases remain pending against UBS AG and Bear, Stearns. Enron's complaint against Credit Suisse includes claims asserting preferences, fraudulent transfers and/or conveyances, and recovery of payments pursuant to other applicable federal and state law. The Credit Suisse settlement remains subject to the approval of the United States Bankruptcy Court for the Southern District of New York. Enron is represented in this matter by Venable LLP and Togut, Segal & Segal LLP. About Enron Corporation Headquartered in Houston, Texas, Enron Corporation -- http://www.enron.com/-- filed for chapter 11 protection on December 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033) following controversy over accounting procedures, which caused Enron's stock price and credit rating to drop sharply. Judge Gonzalez confirmed the Company's Modified Fifth Amended Plan on July 15, 2004, and numerous appeals followed. The Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004. Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen, Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP represent the Debtor. Jeffrey K. Milton, Esq., Luc A. Despins, Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. EUROTUNNEL GROUP: Aims to Become an Attractive Investment --------------------------------------------------------- Eurotunnel Group CEO Jacques Gounon said that the company has placed its financial problems behind and is set to become an attractive investment for shareholders, The Associated Press reports. "We're turning the page on a chaotic past, and we're starting a new company with a real future," Mr. Gounon was quoted by the AP as saying. "This is a new Eurotunnel," Mr. Gounon stated. "Everyone who wants to rediscover the spirit of the initial share placement, and all long-term investors who want guaranteed results should come to the new Eurotunnel." As reported in the TCR-Europe on May 28, 2007, the Autorite des marches financiers indicated that around 87% of the share capital of Eurotunnel S.A./Eurotunnel PLC have been tendered to the offer. The debt to equity swap is part of the restructuring designed to save the channel tunnel operator from bankruptcy. The deal will see the creation of a new company, Groupe Eurotunnel S.A., in which existing shareholders' stake will fall to 13%. According to AP, Mr. Gounon disclosed that the company's operating results would easily cover its debt payments after the restructuring. The Business reports that Mr. Gounon's aim is to make Groupe Eurotunnel begin issuing shares that would be traded on the London Stock Exchange and France's Euronext on June 28, 2007. The Business relates that Eurotunnel will no longer be an Anglo/French company as Groupe Eurotunnel will officially be French. This will mark the end of an agreement made on Nov. 30, 1984 between the British and French governments to form a joint company to solicit private sector proposals to build a channel tunnel. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group (aka Groupe Eurotunnel S.A.) -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel S.A. (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. GRESHAM CAPITAL: S&P Rates EUR10.780MM Class E Notes at BB ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR235.43 million secured and deferrable floating-rate notes and EUR75 million (equivalent) variable funding notes to be to be issued by Gresham Capital CLO IV B.V., a special purpose entity. At closing, Gresham CLO IV will issue EUR235.43 million of notes, the proceeds of which, after paying transaction fees and expenses, will be invested in a portfolio of predominantly senior secured leveraged loans. The collateral manager will be Investec Principal Finance. The portfolio of senior secured and mezzanine loans is expected to be diversified across several countries and industries. Reinvestment guidelines will limit a reduction in the par value of the portfolio, and the quality of the portfolio will be closely monitored throughout the reinvestment period by overcollateralization and interest-coverage tests. Ratings List Gresham Capital CLO IV B.V. EUR235.43 Million Secured and Deferrable Floating-Rate Notes and EUR75 Million (Equivalent) Variable Funding Notes Prelim. Prelim. Class rating amount ----- ------- ------ A1A dual Currency VFN AAA EUR75,000,000(1) A1B AAA EUR75,000,000 A2 AAA EUR48,800,000 B AA EUR24,130,000 C A EUR21,900,000 D BBB EUR22,020,000 E BB EUR10,780,000 N NR EUR32,800,000 (1) Euro equivalent. NR—Not rated. ISOFT GROUP: Takes Legal Action Against CSC Over IBA Offer ---------------------------------------------------------- The Board of iSOFT Group plc disclosed that it has no alternative but to initiate proceedings to ensure that Computer Sciences Corporation does not unlawfully withhold consent to a transaction that in the view of the iSOFT Board, inter alia, places iSOFT in a stronger position to discharge its obligations under NPfIT. Notwithstanding this development, iSOFT intends to continue to work constructively with CSC to deliver the NPfIT contract, which remains an absolute priority for iSOFT. It also intends separately to continue the dialogue with CSC on the ongoing management of the program. A further announcement will be made in due course. Background Following detailed discussions over several months involving IBA, iSOFT and CSC, on April 20, 2007, CSC indicated in writing to iSOFT that, subject to certain conditions, CSC did not intend to withhold its consent. Prior to the announcement of the IBA offer, CSC indicated issues with regard to IBA, but subsequently agreed to the explanation of the CSC consent condition set out in IBA’s formal offer announcement issued on May 15, 2007. Under the terms of the Offer, iSOFT Shareholders will be entitled to receive 1.1 IBA Consideration Shares for each iSOFT Share held. IBA is listed on the Australian Securities Exchange with a market capitalization of AUS$$434 million (GBP183 million). The Offer values each iSOFT Share at 58.1 pence and the entire issued and to be issued share capital of iSOFT at approximately GBP140 million, based on the price of an IBA Share of AUS$1.255, being the closing mid-market price on the ASX on May 4, 2007 (being the last day prior to the date on which IBA was granted a trading halt for its shares by the ASX). IBA is raising new equity (as described below) and adjusted for the impact of this equity issue, the Offer values each iSOFT share at 54.7 pence and the entire issued and to be issued share capital of iSOFT at approximately GBP132 million. CSC has previously indicated the criteria that it wishes to apply in considering whether to consent. These include the extent to which CSC believes the transaction will improve iSOFT’s ability to deliver its obligations to CSC under NpfIT. While this is not a test required by the contract between iSOFT and CSC, the Board of iSOFT believes that the merged iSOFT/ IBA would be better placed to perform the obligations as CSC’s subcontractor under NPfIT due to the increased financial stability and additional development resources that the merged organization would enjoy. Separately, there is an ongoing discussion between iSOFT and CSC in relation to the management of iSOFT’s work on the NPfIT program. In summary, CSC has made it clear it wishes to take a greater role therein and, subject to agreeing an appropriate commercial framework, iSOFT has indicated that it is prepared to agree to this. Shareholders will, however, be aware that the existing agreement with CSC allows them to “step in” to the management of the Contract without iSOFT’s consent in certain circumstances. While this would be an event of default under iSOFT’s banking agreements and one that the Board of iSOFT would regard as an unwelcome act, the ongoing financial impact on iSOFT would depend, inter alia, on CSC’s conduct of the program thereafter and there are circumstances in which at best this could be largely neutral. In any event, the Board of iSOFT regards this as a commercial discussion between it and CSC that is separate from the consent condition although, for the reasons outlined above, the Board believes that the IBA merger can only enhance iSOFT’s support for CSC on the Contract. On May 28, 2007, CSC indicated in writing that it did not intend to consent. This came as a surprise to the Board of iSOFT who had believed that the matter was still under consideration. iSOFT immediately announced CSC’s decision to the market and this was confirmed in an announcement by CSC on May 30, 2007. The iSOFT board does not believe that CSC has given any satisfactory explanation as to why its intentions have changed since its letter of April 20, 2007. The Contract requires CSC not to unreasonably withhold or delay its consent. In these circumstances, iSOFT has been advised that there is a reasonable basis for arguing in a Court of law that CSC has unreasonably withheld and/or delayed its consent. iSOFT is also concerned that CSC’s wider interests may be influencing its conduct on this matter. CCSC has been considering a possible offer for iSOFT since November 2006, when it was formally given access to a data room containing information on iSOFT for this purpose. More recently, iSOFT understands that CSC has also been considering a possible offer structure for iSOFT that could involve the Californian based private equity fund Gores. No firm offer from either CSC or Gores has been forthcoming to date. In the week beginning May 21, 2007, CSC approached iSOFT’s financing banks to explore whether it could purchase iSOFT’s debt. This approach was made without the knowledge of iSOFT and CSC has not, in iSOFT’s view, provided a satisfactory explanation for this approach. CSC Accounting Errors Meanwhile, CSC has discovered significant errors in its accounting for tax liabilities in fiscal years 2000 through 2006. As a result, the Company was unable to file its Annual Report on Form 10-K for the year ended March 30, 2007 by May 29, 2007 without unreasonable effort or expense. The Company currently estimates that the correction of these errors, and other insignificant errors, will result in a cumulative charge of US$300 million to US$400 million through March 31, 2006. This amount does not include the cumulative charge of approximately US$60 million through March 31, 2006 related to the stock option investigation, which has previously been disclosed and recorded. On May 30, 2007, the Board of Directors concluded that the Company's financial statements included in its previously filed Annual Report on Form 10-K for the year ended March 31, 2006, along with the accompanying report of the Company's independent registered accounting firm, should no longer be relied upon because of errors in such financial statements. The Board of Directors has discussed the matters in this filing with the Company's independent registered accounting firm. The Company will restate prior periods in its Form 10-K for the year ended March 30, 2007, which it currently expects to file on or prior to June 13, 2007. About iSOFT Headquartered in Manchester, United Kingdom, iSOFT Group plc -- http://www.isoftplc.com/-- supplies advanced medical software applications for the healthcare sector. Its products are used by more than 8,000 organizations in 27 countries for managing patient information and driving improvements in healthcare services. In international markets, the group has a strong presence in the Asia-Pacific, including Singapore and India. * * * In June 2006, the Group disclosed a change in accounting policy, as a consequence of which it became necessary to review revenue recognition in prior years, in order to re-state some prior year revenues. Arising out of that review, a number of possible accounting irregularities came to light in which it appears that some revenues reported in 2003/04 and 2004/05 may have been recognized earlier than they should have been. On July 20, 2006, the Group engaged its auditors, Deloitte & Touche LLP, to conduct a formal initial investigation into these possible irregularities. In August 2006, it was confirmed that there were indeed matters that needed further investigation and the company handed over relevant documents to the Financial Services Authority, which is now conducting further investigations. The Group is working closely and co-operatively with the FSA in order to complete these investigations as quickly as possible. At the current time it would be inappropriate to comment on the likely outcome. On Oct. 25, 2006, the Accountancy Investigation and Discipline Board (AIDB) disclosed that it would conduct its own investigation. The AIDB investigation is a review of the conduct of those members of accountancy bodies that are regulated by the AIDB who were executive or non-executive directors of iSOFT during the relevant periods, and RSM Robson Rhodes LLP, iSOFT's auditor for the financial years ended April 30 2003, 2004 and 2005. All current executive directors of iSOFT who are members of those accountancy bodies were appointed after the dates under investigation, as was the non-executive director who is currently chairman of the audit committee. The initial investigation into possible accounting irregularities -- conducted by the Group's current auditors, Deloitte & Touche LLP, in July and August 2006 -- did not uncover evidence that any of the current non-executive directors had any knowledge of the irregularities. On the basis of information that has come to light so far, the Group does not believe that these matters will have any impact on the current or future financial position of iSOFT. Going Concern Doubt At Oct. 31, 2006, the company's board of directors recognized that there are material uncertainties that may cast significant doubt on the Group's ability to continue as a going concern. MEDQUAKE LTD: S&P Rates US$50 Million Class A Notes at BB- ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' senior secured debt rating to the US$50 million series 1 class A principal at-risk variable-rate notes and its 'B' senior secured debt rating to the US$50 million series 1 class B principal at-risk variable-rate notes issued under the newly established shelf program, MedQuake Ltd., sponsored by Swiss Reinsurance Co. This is the first series of notes issued under this program. Through this transaction, Swiss Re, as the counterparty, has bought fully collateralized retrocession protection against high severity losses incurred from earthquakes in Greece, Turkey, Cyprus, Israel, and Portugal. This is the first catastrophe bond rated by Standard & Poor's that covers earthquake risks in these countries. The issuer is a special-purpose Cayman Islands-exempted company, whose ordinary shares are held in a charitable trust. Under the program, Swiss Re can issue additional series which may contain various classes of notes. There is no limit on the amount Swiss Re can issue under the program. The term of the risk period and the countries covered against earthquake events may vary between series. The class A and B notes issued are due on May 31, 2010. Standard & Poor's has not assigned ratings to the shelf program and will not necessarily assign ratings to any further issuance of notes through the program. Notes' Structure MedQuake invested the US$100 million issuance proceeds in high-quality assets, which were placed in a collateral account. MedQuake swaps the total return of the assets with Swiss Re Financial Products Corp. in exchange for quarterly LIBOR-based payments. Simultaneous to the issuance of the notes, MedQuake entered into an ISDA-based counterparty contract with Swiss Re, comparable to a retrocession contract. This provides Swiss Re with fully collateralized protection against high severity, per occurrence losses from earthquakes in the Mediterranean during the period from June 1, 2007 to May 24, 2010. The periodic payments received from Swiss Re under the counterparty contract and the proceeds from the total return swaps for each class with SRFP are used to make the scheduled interest payments to the holders of the class A and B notes. The class A and B notes pay an annual coupon of LIBOR plus 355 bps and 510 bps respectively, quarterly in arrears. Furthermore, Swiss Re pays the issuer's up-front and ongoing expenses in connection with the security issuance. Loss Definition The repayment of principal under the notes is tied to an index calculated by EQECAT, Inc., derived from earthquake parameters such as magnitude, location, and fault strike reported by the European-Mediterranean Seismological Centre following the occurrence of an earthquake in Greece, Turkey, Cyprus, Israel, and/or Portugal and pre-defined weights for the calculation locations and additional pre-defined parameters. The index is used to determine whether a principal loss to the noteholders has occurred, and the amount of the loss. If a loss occurs, assets in the collateral account are sold to fund the loss payment to Swiss Re, and the principal amount of the notes is reduced. Holders of the class A and B notes suffer a scaled loss of investment if the index value exceeds a pre-agreed trigger level for each covered region, until it reaches the covered region's pre-agreed exhaustion point. Any loss payment to Swiss Re does not necessarily bear any direct or indirect correlation to actual losses incurred by Swiss Re. A significant part of the rating analysis took account of an assessment of the occurrence probabilities of the Mediterranean earthquakes as modeled by EQECAT. Furthermore, the ratings on the notes are based upon the creditworthiness of Swiss Re (AA-/Stable/A-1+) as payer of its obligations under the counterparty contract and as guarantor of SRFP, the counterparty for the TRS. EQECAT's proprietary model WORLDCAT Enterprise v.3.8 was used to determine the probability of a first-dollar loss for both classes of notes. The estimated annualized attachment probabilities for the class A and B notes are 251 bps and 363 bps, respectively. Each year, between May 15 and June 1, Swiss Re has the option to change the pre-defined weights and parameters. The trigger and exhaustion levels for the class A and B notes are then reset so that the probability of attachment and the expected loss are equal to or less than at the date of issuance. Resets will become effective on the date EQECAT delivers the reset output. EQECAT's relevant model will be held in escrow and used for the annual reset. Extension Events Swiss Re has the option of extending the maturity of the class A or B notes by 120 days. The spread above LIBOR during the extension period is 150 bps for both classes of notes. Swiss Re Capital Markets Corp. structured and underwrote the notes. MEGAZONE TECHNOLOGY: Joint Liquidators Take Over Operations ----------------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss were appointed joint liquidators of Megazone Technology Ltd. on May 23 for the creditors' voluntary winding-up procedure. The company can be reached at: Megazone Technology Ltd. 171 Belgrave Gate Leicester LE1 3HS England Tel: 0116 242 5225 Fax: 0116 242 5925 MORTGAGES NO. 6: S&P Puts Notes' Ratings on Positive Watch ---------------------------------------------------------- Standard & Poor's Ratings Services said that it has placed on CreditWatch with positive implications its credit ratings on the class B, C, D, and E notes issued by Mortgages No. 6 PLC. The class A2 notes remain unaffected by the CreditWatch placements. The CreditWatch placements follow an initial review of the most recent transaction information received by Standard & Poor's. This analysis showed that the likelihood of a positive rating action has increased for the subordinate notes, and levels of credit enhancement available to these notes have improved. Standard & Poor's will now conduct a more detailed analysis to investigate whether any or all of these notes can attain a higher rating. The results of this review and any rating changes are expected within three months of this media release. This transaction, which closed in December 2004, is backed by a pool of first-ranking mortgages secured over freehold and leasehold, owner-occupied, "right-to-buy", and "buy-to-let" properties in the U.K. It was originated by Mortgages 1 to 7 Ltd. and Bristol & West PLC. Ratings List Mortgages No. 6 PLC GBP595.9 Million Mortgage-Backed Floating-Rate Notes Ratings Placed on CreditWatch with Positive Implications Rating ------ Class To From ----- -- ----- B AA/Watch Pos AA C A/Watch Pos A D BBB/Watch Pos BBB E BB/Watch Pos BB TILBURY FREIGHT: Creditors' Meeting Slated for June 15 ------------------------------------------------------ Creditors of Tilbury Freight Station Ltd. will meet at 10:30 a.m. on June 15 at: Ansers! Suite 3 Warren House 10-20 Main Road Hockley Essex SS5 4QS England A. J. D. Bakonyvari of Ansers! will furnish creditors with information concerning the company's affairs free of charge during the period before the date of the meeting as they may reasonably require. Secured creditors who want to vote must submit particulars of their security before the meeting. TOWER RECORDS: Files Joint Disclosure Statement in Delaware ----------------------------------------------------------- MTS Inc. dba Tower Records and its debtor-affiliates filed with the United States Bankruptcy Court for District of Delaware a Joint Disclosure Statement explaining their Joint Chapter 11 Plan of Liquidation. Treatment of Claims Under the Plan, Administrative Claims and Other Priority Claims will be paid in full, in cash, or other treatment as the Debtors and holders agreed on in writing. At the Debtors’ option, holders of Priority Tax Claims will be paid, either: a. in cash; or b. in full, in cash, over time in equal cash installment payments on a quarterly basis with interest during a period not to exceed five years after the order of relief. Holders of CIT Claims will receive the treatment as to which the Debtors and the holders have agreed on in the DIP Financing Order and DIP Financing Agreement. Holders of Other Secured and Trade Vendor Claims will received on or a combination of these: a. cash equal to the amount of the claims; b. collateral securing the claims; or c. other treatment which the Debtors and the holders agreed on in writing. Holders of General Unsecured Claims will receive a pro rata share of the available assets. Interest and Securities Subordinated Claims will not receive any distribution under the Plan. About MTS Incorporated MTS Incorporated -- http://www.towerrecords.com/-- owns Tower Records and retails music in the U.S., with nearly 100 company- owned music, book, and video stores. The company and its affiliates filed for chapter 11 protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No. 04-10394). The company has stores in the United Kingdom, the Philippines and Colombia. The Debtor and its seven debtor-affiliates filed a second Chapter 11 petition on Aug. 20, 2006 (Bankr. D. N.Y. Case Nos. 06-10886 through 06-10893, Lead Case No. 06-10891). Mark D. Collins, Esq. of Richards Layton & Finger represent the Debtors in their restructuring efforts. When the Debtors filed for protection from its creditors, it listed estimated assets and debts of more than $100 million. TRICOM GB: Brings In Liquidator from Bond Partners -------------------------------------------------- T. Papanicola of Bond Partners LLP was appointed liquidator of Tricom (GB) Ltd. (formerly Itron Services Ltd.) on May 23 for the creditors' voluntary winding-up proceeding. Bond Partners LLP -- http://www.bondpartners.co.uk/-- specializes in: audit and assurance, taxation, corporate recovery, business rescue and insolvency, bookkeeping services, as well as financial services through Bond Financial Network. The company can be reached at: Tricom (GB) Ltd. Unit 4 Turner Street Dudley DY1 1TX England Tel: 01384 456 560 Fax: 01384 456 070 W.B. BRADFORD: Claims Filing Period Ends July 3 ----------------------------------------------- Creditors of W.B. Bradford (Measham) Ltd. have until July 3 to send their names and addresses and particulars of their debts or claims and the names and addresses of their solicitors (if any), to: J. G. M. Sadler Joint Liquidator Elwell Watchorn & Saxton LLP 109 Swan Street Sileby Leicestershire LE12 7NN England Joseph Gordon Maurice Sadler and John Michael Munn of Elwell Watchorn & Saxton LLP were appointed joint liquidators of the company on May 22. Elwell Watchorn & Saxton -- http://www.ews-insolvency.co.uk/-- provides insolvency and recovery services. The firm's partners have considerable expertise in all formal areas of insolvency, both corporate and personal and have been offering turnaround advice without the need for formal insolvency. WOOD STREET: S&P Rates EUR20 Million Class E Notes at BB -------------------------------------------------------- Standard & Poor's Ratings Services assigned preliminary credit ratings to the EUR 454 million senior secured floating-rate notes to be issued by Wood Street CLO V B.V. At the same time, Wood Street CLO V will issue EUR 46 million of unrated notes. At closing, Wood Street CLO V will issue floating-rate notes, the proceeds of which, after paying transaction fees and expenses, will be invested in a portfolio of predominantly senior-secured leveraged loans. The transaction has a six-year reinvestment period. The collateral manager will be Alcentra Ltd. This will be the 14th European CDO transaction managed by Alcentra. The ratings reflect: -- Commensurate credit enhancement in the form of overcollateralization and subordination; -- A diversified collateral pool of loans and derivative financial instruments; -- Currency risk protections; -- Strong collateral investment guidelines; -- The expected insolvency remoteness of the issuer; and -- Various amortization triggers. Ratings List Wood Street CLO V B.V. EUR500 Million Senior Secured Floating-Rate Notes Prelim. Prelim. Class rating amount ----- ------ ------- A-D AAA EUR218,000,000 A-R AAA EUR100,000,000 A-2 AAA EUR20,000,000 B AA EUR40,000,000 C A EUR30,000,000 D BBB EUR26,000,000 E BB EUR20,000,000 Subordinated securities NR EUR46,000,000 NR — Not rated. * Deloitte Names David Cruickshank as U.K. Board Chairman --------------------------------------------------------- Deloitte & Touche LLP appointed David Cruickshank as chairman of the U.K. Board of Partners, effective June 1, 2007. Mr. Cruickshank will succeed Martin Scicluna, who steps down from the role on May 31, 2007, after serving 12 years as chairman. Mr. Cruickshank (48) has spent his entire career with the firm having joined as a trainee accountant in 1979 in the firm's Edinburgh office after graduating from the University of Edinburgh. He moved on qualification to the London office in 1982 and has specialized throughout his career in advising large corporates on their tax affairs. He became a partner in 1988 and from 1998 until 2006 he was leader of the firm's tax practice nationally in the U.K. "I'm delighted by David's appointment. I am looking forward to working with him in his new capacity as Chairman of the U.K. Board of Partners and am pleased that alongside his new role David will continue to advise a number of our most significant clients," John Connolly, chief executive and senior partner commented. Mr. Connolly also paid tribute to Mr. Scicluna, who has served as chairman of the U.K. Board for 12 years, "The partnership is grateful to Martin for his tremendous contribution to the vitality of the firm and the profession more widely." "I'm extremely pleased to have the opportunity to serve our firm in my new role. Over the last few years Deloitte has gone from strength to strength. We have an outstanding practice of which I am very proud and I look forward to contributing to the future success of our firm, its partners, our clients and our people," Mr. Cruickshank said. Deloitte & Touche LLP -- http://www.deloitte.com/-- is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. It provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. * Ernst & Young Hires 10 to New Regulatory & Management Team ------------------------------------------------------------ Ernst & Young LLP appointed ten new hires from manager through to director level to its recently restructured Regulatory & Risk Management team. The new appointees have joined Ernst & Young from leading banks, IT consultancies and accountancy firms, bringing in substantial industry expertise and strengthening the 150-strong team. The practice now has seven individual areas of technical expertise: -- Conduct of Business; -- Enterprise Risk; -- Financial Crime; -- Infrastructure; -- Prudential; -- Quantitative Advisory; and -- Remediation. "With a more focused approach to regulatory and risk management issues, Ernst & Young will be providing clients with an enhanced, sharper and more effective management approach to their risk and regulatory challenges. Our ten new joiners come from some of the very best banks, IT consultancies and competitors and will be instrumental in helping our clients to cut through the challenges of the regulated financial services industry," Ernst & Young's head of Regulatory & Risk management Dr. Stephen Christie commented. * Strengthening Conduct of Business, five new appointments have been made. Jenny Clayton joins as a director from Lloyds TSB where she was Risk & Compliance Director. Four senior managers have also been appointed: Munib Ali rejoins Ernst & Young from Barclays Wealth; Sonia Gayle from Barclays where she was Compliance Program Director; Mary Hollinshed from the Financial Services Authority; and John Neasham from Deloitte where he was MiFID and Basel champion; * Infrastructure has made a key appointment recruiting Misys Almonde’s former Managing Director Frank Weyns as senior manager; * In Enterprise Risk, two new senior managers have been appointed: Roy Choudhury joins from Accenture where he was Financial Services Finance & Performance Management Manager and Ian Larkin from LogicaCMG where he was Head of Risk & Compliance; and * Financial Crime has swooped on Barclays to recruit Group Financial Crime Director Jon Harvey as director and Head of the E-crime Intelligence Team Tom Salmond as manager. "Increasing client demand is fueling the continued growth and recruitment in Financial Services Advisory Services. Our ten new appointees join 600 other professionals within Financial Services Advisory Services and are sure to make a strong impact within Regulatory & Risk Management," Ernst & Young's head of Financial Services Advisory Services said. Further appointments are expected to be announced later in the year. Ernst & Young -- http://www.ey.com/-- is global organization help companies in businesses across all industries—from emerging growth companies to global powerhouses—deal with a broad range of business issues. It has 107,000 people in 140 countries around the globe pursue the highest levels of integrity, quality and professionalism to provide clients with a broad array of services relating to audit and risk-related services, tax, and transactions. ********* 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/booksto 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 * * *