/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070618.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 Monday, June 18, 2007, Vol. 8, No. 119 Headlines A U S T R I A A.P.P. LLC: Claims Registration Period Ends June 27 A.T.S. LLC: Claims Registration Period Ends June 27 BALBOA LLC: Vienna Court Orders Business Shutdown HANS STEINLECHNER: Salzburg Court Orders Business Closure KL LLC: Claims Registration Period Ends June 27 WOLF LLC: Claims Registration Period Ends June 28 F R A N C E VERINT SYSTEMS: Posts US$1.2 Mil. Net Loss in 2007 First Quarter G E O R G I A CANARGO ENERGY: Closes US$15 Million Debt-to-Equity Swap G E R M A N Y BARARTIKEL-HANDELS: Claims Registration Period Ends July 23 DAIMLERCHRYSLER AG: Elects to Redeem Term Assets of Trust HERLING & WAGNER: Claims Registration Ends Aug. 22 IBP INSTRUMENTS: Claims Registration Ends July 20 INTEC - SCHRIEFER GMBH: Creditors' Meeting Slated for July 5 JOSEF LEUWER: Claims Registration Ends July 31 LINCOLN GMBH: S&P Puts BB- Rating to Proposed US$325 Mln Loan LN ACQUISITION: Moody's Junks Proposed US$140 Million Term Loan MICKA & KAMM: Claims Registration Period Ends July 10 I T A L Y MANITOWOC CO: Moody's Lifts Rating to Ba2 on Strong Performance PARMALAT SPA: Milan Judge Orders Four Banks to Stand Trial TISCALI: Fitch Holds Watch on IDR Pending Sale Revenue Receipt K A Z A K H S T A N AKONIT JSC: Proof of Claim Deadline Slated for July 31 AKTAU OIL KURYLYS: Creditors Must File Claims July 24 FETISOV LLP: Claims Filing Period Ends July 24 JOMART-2 LLP: Claims Registration Ends July 24 HYDRO-SERVICE: Creditors' Claims Due July 27 OTKRYTYE TECHNOLOGIYI: Creditors Must File Claims July 25 SENEKA PLUS: Proof of Claim Deadline Slated for July 31 STOREKS LLP: Claims Filing Period Ends July 27 UNITED POINT: Claims Registration Ends July 27 L U X E M B O U R G EVRAZ GROUP: Fuses Yuzhkuzbassugol & Raspadskaya Coal Units EVRAZ GROUP: Highveld Steel Unit Selling Transalloys Business N E T H E R L A N D S FIRST DATA: Completes Acquisition of FundsXpress GLOBAL POWER: Wants Exclusive Plan-Filing Period Extended N O R W A Y PETROLEUM GEO-SERVICES: Moody's Lifts Corp. Family Rating to Ba2 PETROLEUM GEO: US$800MM Debt Refinancing Cues S&P to Hold Rating R U S S I A ANAPSKIY OJSC: Creditors Must File Claims by July 26 BASH-MED-REM-STROY: Creditors Must File Claims by July 19 BUILDING CO: Chelyabinsk Bankruptcy Hearing Slated for Oct. 9 CEDAR-89 OJSC: Court Names O. Lykov as Insolvency Manager CORRECT CJSC: Creditors Must File Claims by July 26 DEMESHKINO CJSC: Pskov Bankruptcy Hearing Slated for July 19 ERMAKOVSKIY REPAIR-TECHNICAL: Claims Filing Period Ends July 19 EVRAZ GROUP: Fuses Yuzhkuzbassugol & Raspadskaya Coal Units EVRAZ GROUP: Highveld Steel Unit Selling Transalloys Business INTERNATIONAL SPORT: Tyumen Court Hearing Slated for June 28 KDSZ OJSC: Creditors Must File Claims by July 19 KONEK CJSC: Creditors Must File Claims by July 26 LAKOKRASKA OJSC: Creditors Must File Claims by June 26 MOSCOW STARS: Fitch Puts BB Rating on Class B Mortgage Certs. PROD-INVEST LLC: Court Names I. Ponomareva as Insolvency Manager SEVERSTAL OAO: CEO Denies Sale Talks with ThyssenKrupp AG YAMAL-ENERGO LLC: Bankruptcy Hearing Slated for Sept. 17 ZOLOTOY ROG: Court Names A. Makovetskaya as Insolvency Manager * Fitch Revises Republic of Komi's Low B Ratings' Outlook S W I T Z E R L A N D ATAMUS JSC: Zug Court Starts Bankruptcy Proceedings DEUTSCHE INDUSTRIEBANK: Fitch Puts BB- Rating on US$11.4MM Loan ETZEL ENGINEERING: Creditors' Liquidation Claims Due July 2 FAUNA CARE: Zug Court Starts Bankruptcy Proceedings GALERIE KAMPF: Creditors' Liquidation Claims Due July 2 HANS BLUM: Creditors' Liquidation Claims Due July 6 MIRO MARKETING: Creditors' Liquidation Claims Due June 30 OKTOGON INFORMATIK: Creditors' Liquidation Claims Due July 4 VISUAL-I LLC: Creditors' Liquidation Claims Due July 6 U K R A I N E AGRICULTURAL TECHNOLOGY: Claims Filing Deadline Set June 19 AVD LLC: Claims Filing Deadline Set June 21 DALAS LLC: Creditors Must File Claims by June 21 FLORA OJSC: Claims Filing Deadline Set June 21 INTERALLOYSERVICE LLC: Claims Filing Deadline Set June 19 LIVARNIK OJSC: Claims Filing Deadline Set June 21 NADIYA LLC: Claims Filing Deadline Set June 19 NEZABUDKA LLC: Claims Filing Deadline Set June 21 SOYUZ-ENERGY LLC: Claims Filing Deadline Set June 19 USO LLC: Claims Filing Deadline Set June 19 U N I T E D K I N G D O M FORD MOTOR: Inks MOU with Meridian for Sale of Sandusky Plant HCA: Fitch Affirms B Issuer Default Rating with Stable Outlook INVERNESS MEDICAL: Noteholders Agree to Amend Sr. Bond Indenture KAUFMAN & BROAD: Fitch Comments on 8.75% Senior Notes Tender STATS CHIPPAC: Moody's Lifts Rating to Ba1 on Good Performance ********* ============= A U S T R I A ============= A.P.P. LLC: Claims Registration Period Ends June 27 --------------------------------------------------- Creditors owed money by LLC A.P.P. (FN 263646s) have until June 27 to file written proofs of claim to court-appointed estate administrator Susi Pariasek at: Dr. Susi Pariasek c/o Mag. Beate Holper Gonzagagasse 15 1010 Vienna Austria Tel: 533 28 55 E-mail: office@anwaltwien.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:50 a.m. on July 11 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 23 (Bankr. Case No. 2 S 75/07b). Beate Holper represents Dr. Pariasek in the bankruptcy proceedings. A.T.S. LLC: Claims Registration Period Ends June 27 --------------------------------------------------- Creditors owed money by LLC A.T.S (FN 244278h) have until June 27 to file written proofs of claim to court-appointed estate administrator Helmut Platzgummer at: Dr. Helmut Platzgummer Mag. Caroline Klus Kohlmarkt 14 1010 Vienna Austria Tel: 533 19 39 E-mail: helmut.platzgummer@lp-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on July 11 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 23 (Bankr. Case No. 2 S 74/07f). Caroline Klus represents Dr. Platzgummer in the bankruptcy proceedings. BALBOA LLC: Vienna Court Orders Business Shutdown ------------------------------------------------- The Trade Court of Vienna entered May 18 an order shutting down the business of LLC BALBOA (FN 61325i). Court-appointed estate administrator Gerhard Bauer 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. Gerhard Bauer Mahlerstrasse 7 1010 Vienna Austria Tel: 512 97 06 E-mail: ra-g.bauer@aon.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 3 (Bankr. Case No 2 S 64/07k). HANS STEINLECHNER: Salzburg Court Orders Business Closure --------------------------------------------------------- The Land Court of Salzburg entered May 23 an order closing the business of LLC Hans Steinlechner (FN 166214h). Court-appointed estate administrator Bertram Maschke 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. Bertram Maschke Stadtplatz Nr. 3 5550 Radstadt Austria Tel: 06452/4235 Fax: 06452/6707 E-mail: rae.maschke@maschke.at Headquartered in Mauterndorf im Lungau, Austria, the Debtor declared bankruptcy on May 4 (Bankr. Case No 44 S 16/07p). KL LLC: Claims Registration Period Ends June 27 ----------------------------------------------- Creditors owed money by LLC KL (FN 56577b) have until June 27 to file written proofs of claim to court-appointed estate administrator Robert Klein at: Dr. Robert Klein c/o Dr. Thomas Deschka Spiegelgasse 10 1010 Vienna Austria Tel: 01/513 99 39 Fax: 01/5133 99 39 30 E-mail: klein@lawcenter.at deschka@lawcenter.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on July 11 for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Klosterneuburg, Austria, the Debtor declared bankruptcy on May 22 (Bankr. Case No. 36 S 66/07h). Thomas Deschka represents Dr. Klein in the bankruptcy proceedings. WOLF LLC: Claims Registration Period Ends June 28 ------------------------------------------------- Creditors owed money by LLC Wolf (FN 120403p) have until June 28 to file written proofs of claim to court-appointed estate administrator Andreas Wippel at: Dr. Andreas Wippel c/o Mag. Rudolf Vogrin Triester Strasse 15 2620 Neunkirchen Austria Tel: 02635/62860 Fax: 02635/6286114 E-mail: kanzlei@dr-wippel.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on July 12 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Neunkirchen, Austria, the Debtor declared bankruptcy on May 21 (Bankr. Case No. 10 S 53/07h). Rudolf Vogrin represents Dr. Wippel in the bankruptcy proceedings. =========== F R A N C E =========== VERINT SYSTEMS: Posts US$1.2 Mil. Net Loss in 2007 First Quarter ---------------------------------------------------------------- Verint Systems Inc. reported record sales of US$101,274,000 for the first quarter of fiscal 2007, ended April 30, 2007, a 15% increase compared with sales of US$87,736,000 for the first quarter of fiscal 2006. Net loss on a generally accepted accounting principles basis was US$1,233,000 for the first quarter of fiscal 2007. Net income was US$9,353,000 for the first quarter of fiscal 2007. Dan Bodner, president and CEO of Verint, stated, "In addition to delivering record revenue in our first quarter, we recently achieved two significant milestones in the company's history. We surpassed US$100 million in quarterly revenue for the first time and we closed the highly strategic acquisition of Witness Systems, making us a leader in workforce optimization and giving us larger scale to better address both the security and enterprise markets." Mr. Bodner continued, "Following the announcement to acquire Witness early in our first quarter, we immediately began to make investments to prepare for the integration and to support the increased scale of the combined entity. While these investments reduced our earnings in our first quarter, they have enabled us to operate as one integrated business immediately at closing with a unified management team and we believe these investments will benefit Verint's long-term growth." The company ended the first quarter of fiscal 2007 with cash, cash equivalents, bank time deposits and short-term investments of US$167,015,000. About Verint Systems Headquartered in Melville, New York, Verint Systems Inc. (VRNT.PK) -- http://www.verint.com/-- is a provider of analytic software-based solutions for security and business intelligence. Verint software, which is used by over 1,000 organizations in over 50 countries worldwide, generates actionable intelligence through the collection, retention and analysis of voice, fax, video, email, Internet and data transmissions from multiple communications networks. Verint has global offices in France, Brazil and and India. * * * As reported in the Troubled Company Reporter on April 24, 2007, Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Verint Systems Inc. At the same time, we assigned our 'B' bank loan rating, and '3' recovery rating to the company's proposed US$675 million first-lien credit facility, indicating that lenders can expect meaningful (50%- 80%) recovery of principal in the event of payment default," said Standard & Poor's credit analyst David Tsui. The outlook is developing. ============= G E O R G I A ============= CANARGO ENERGY: Closes US$15 Million Debt-to-Equity Swap -------------------------------------------------------- Stockholders of CanArgo Energy Corporation approved an increase in authorized shares of common stock from 375,000,000 to 500,000,000. The company also reported the closure of the conversion of US$15 million of its convertible debt into a portion of CanArgo's interest in Tethys Petroleum Limited, leaving CanArgo with a 29.7% interest in Tethys. About CanArgo Energy CanArgo Energy Corp. (AMEX: CNR) -- http://www.canargo.com/ -- is an oil and gas exploration and production company operating in the oil and gas provinces of the former Soviet Union. CanArgo is currently focused primarily on Georgia in the Caucasus, and more recently has become involved in the major hydrocarbon producing country of Kazakhstan. In Georgia, the company has been actively exploring for new deposits of oil and gas, and is currently appraising what could be a substantial new discovery of oil. Going Concern Doubt As reported in the Troubled Company Reporter on March 26, 2007, LJ Soldinger Associates LLC raised substantial doubt about the ability of CanArgo Energy Corp. to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm stated that the company may not have sufficient funds to execute its business plan. ============= G E R M A N Y ============= BARARTIKEL-HANDELS: Claims Registration Period Ends July 23 ----------------------------------------------------------- Creditors of Barartikel-Handels-GmbH have until July 23 to register their claims with court-appointed insolvency manager Bardo M. Sigwart. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on Aug. 8, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bingen am Rhein Room 9 Law Courts Mainzer Road 52 55411 Bingen am Rhein 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: Bardo M. Sigwart Ahornweg 12 55218 Ingelheim Germany Tel: 06132/88949 Fax: 06132/896498 The District Court of Bingen am Rhein opened bankruptcy proceedings against Barartikel-Handels-GmbH on July 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Barartikel-Handels-GmbH Attn: Marion Mader, Manager Pommernstr. 2 55411 Bingen am Rhein Germany DAIMLERCHRYSLER AG: Elects to Redeem Term Assets of Trust --------------------------------------------------------- DaimlerChrysler AG has elected to redeem the term assets of the trust on June 29, 2007, at a redemption price equal to par plus a make-whole amount to be determined two business days prior to the Redemption Date. The company has notified the U.S. Bank Trust National Association, as Trustee, under the Base Trust Agreement dated as of May 21, 1998, as supplemented by the Series C 1998-6 Supplement dated as of May 21, 1998, between Structured Products Corp. and the Trustee. If the Trustee receives the redemption payment on the Redemption Date, then the Amortizing Certificates issued by the TIERS Corporate Bond-Backed Certificates Trust C 1998-6 will be redeemed in full on the Redemption Date at a price equal to 55.49314% of the redemption payment received by the Trustee and the ZTF Certificates issued by the Trust will be redeemed in full on the Redemption Date at a price equal to 44.50686% of the redemption payment received by the Trustee. If the Amortizing Certificates are redeemed in full on the Redemption Date, no interest will accrue on the Amortizing Certificates after the Redemption Date. If the Trustee does not receive the redemption payment, the certificates will not be redeemed. For more information about these redemptions, please contact Janet O'Hara of U.S. Bank Trust National Association at 212-361- 2527. Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group As quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. HERLING & WAGNER: Claims Registration Ends Aug. 22 -------------------------------------------------- Creditors of Herling & Wagner GmbH Immobilien und Bautrager have until Aug. 22 to register their claims with court-appointed insolvency manager Ottmar Hermann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Karlsruhe Hall IV First Floor Schlossplatz 23 76131 Karlsruhe Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ottmar Hermann Bleichstr. 2-4 60313 Frankfurt a. Main Tel: (069) 9130 920 The District Court of Karlsruhe opened bankruptcy proceedings against Herling & Wagner GmbH Immobilien und Bautrager on June 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Herling & Wagner GmbH Immobilien und Bautrager Attn: Nikolaus Herling und Tatjana Wagner, Franz-Sigel-Str. 1 68753 Waghausel Germany IBP INSTRUMENTS: Claims Registration Ends July 20 ------------------------------------------------- Creditors of IBP Instruments GmbH have until July 20 to register their claims with court-appointed insolvency manager Dr. Rainer Eckert. Creditors and other interested parties are encouraged to attend the meeting at 9:20 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 Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Rainer Eckert Arthur-Menge-Ufer 5 30169 Hannover Germany Tel: 0511 626287-0 Fax: 0511 626287-10 The District Court of Hannover opened bankruptcy proceedings against IBP Instruments GmbH on May 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: IBP Instruments GmbH Ikarusallee 15 30179 Hannover Germany INTEC - SCHRIEFER GMBH: Creditors' Meeting Slated for July 5 ------------------------------------------------------------ The court-appointed insolvency manager for INTEC - SCHRIEFER GmbH, Frank-Michael Rhode will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:15 a.m. on July 5. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Ostertorstr. 25-31 28195 Bremen Germany The Court will also verify the claims set out in the insolvency manager's report at 9:30 a.m. on Oct. 25 at the same venue. Creditors have until Oct. 2 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Frank-Michael Rhode Graf-Moltke-Str. 62 28211 Bremen Germany Tel: 0421/3485212/213 Fax: 0421/341078 E-Mail: info@rhode.de Web site: http://www.rhode.de/ The District Court of Bremen opened bankruptcy proceedings against INTEC - SCHRIEFER GmbH on June 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: INTEC - SCHRIEFER GmbH Haferwende 27 28357 Bremen Germany Attn: Heinz-Martin Schriefer, Manager Lehester Deich 12 28357 Bremen Germany JOSEF LEUWER: Claims Registration Ends July 31 ---------------------------------------------- Creditors of Josef Leuwer Eisenwaren-Schreinereibedarf-Maschinen GmbH have until July 31 to register their claims with court- appointed insolvency manager Hans-Albrecht Brauer. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on Sept. 20, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wittlich Hall 3 Kurfuerstenstrasse 63 54516 Wittlich 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-Albrecht Brauer Jahnstr. 1 54550 Daun Germany Tel: 06592/985604 Fax: 06592/7344 The District Court of Wittlich opened bankruptcy proceedings against Josef Leuwer Eisenwaren-Schreinereibedarf-Maschinen GmbH on June 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Josef Leuwer Eisenwaren-Schreinereibedarf- Maschinen GmbH Triererstr. 16 54550 Daun Germany Attn: Reinhold Schleidweiler, Manager Glockenstr. 72 54552 Brockscheid Germany LINCOLN GMBH: S&P Puts BB- Rating to Proposed US$325 Mln Loan ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to St. Louis, Missouri-based Lincoln Holdings Enterprises Inc. At the same time, Standard & Poor's assigned its 'BB-' bank loan rating and '2' recovery rating to subsidiaries LN Acquisition Corp.'s and Lincoln GmbH's proposed US$325 million first-lien facilities, representing a substantial recovery given a default scenario. In addition, Standard & Poor's assigned its 'B' bank loan rating and '5' recovery rating to the proposed US$140 million second- lien term loan, representing negligible recovery given a default scenario. The proceeds will be used to refinance existing debt, to fund a US$150 million dividend to existing shareholders and to finance future acquisitions. The outlook is stable. "The ratings on Lincoln reflect the company's highly leveraged financial risk profile, marked by high debt balances and aggressive financial policy, which more than offset its leading market positions in lubrication equipment and its good end- market and geographic diversity," said Standard & Poor's credit analyst James Siahaan. LN ACQUISITION: Moody's Junks Proposed US$140 Million Term Loan --------------------------------------------------------------- Moody's Investors Service assigned a B2 corporate family rating with a stable outlook to LN Acquisition Corp, a wholly owned subsidiary of Lincoln Holdings Enterprises Inc. Additionally, Moody's assigned B1 to the company's proposed US$300 million 7-year first lien term loan B and US$25 million 6-year senior secured revolving credit facility, as well as Caa1 to the proposed US$140 million 7.5-year second lien term loan. The ratings are subject to review of the final financing documentation. The B2 corporate family rating reflects the company's expected high leverage -- an estimated 5.9 times pro forma Moody's adjusted debt/EBITDA as of June 30, 2007 - and modest cash flow to debt metrics following its recapitalization. The rating also considers Lincoln's leading position in the niche lubrication equipment market, its product breadth, as well as the large diversity of revenues by end-markets, customers and geographies, which partly offset the cyclicality of Lincoln's manufacturing operations. Additionally, Moody's expects the company to preserve its high margins and to generate positive free cash flow going forward. The rating outlook is stable reflecting the expectation of a moderate reduction of adjusted leverage to a level close to 5 times in the intermediate term and consistently positive free cash flow. The ratings for the first lien and second lien facilities reflect the overall probability of default of the company, to which Moody's has assigned a PDR of B2, and a loss given default of LGD3 for the first lien term loan B and secured revolver, as well as LGD5 for the second lien term loan. The B1 ratings of the first lien term loan B and revolving credit facility reflect their senior position in the capital structure, full guarantees from existing and future domestic subsidiaries, a pledge on all tangible and intangible assets of domestic subsidiaries as well as the loss absorption by more junior debt. Moody's also notes that the first lien term loan B includes an amount of US$50 million ("the German tranche") available to Lincoln GmbH, a German subsidiary of LN Acquisition Corp. Although this tranche theoretically benefits from a slightly better security package due to the inclusion of a first lien pledge on all assets of the foreign subsidiaries, while the debt under LN Acquisition Corp ("the U.S. tranche") is only granted a 65% pledge on the capital stock of foreign subsidiaries, the lenders of both tranches would ultimately rank pari-passu in a situation of default according to a collateral allocation mechanism. The Caa1 rating of the second lien term loan reflects its effective subordination to all first lien creditors. Ratings assigned: -- B2 Corporate Family Rating; -- B2 Probability of Default Rating; -- B1 First Lien Term Loan B (LGD 3/34%); -- B1 Senior Secured Revolver (LGD 3/34%); -- Caa1 Second Lien Term Loan (LGD 5/85%). LN Acquisition Corp. is raising US$465 million through the above-mentioned senior secured credit facilities in order to refinance existing Lincoln's debt, fund a US$150 million dividend to its equity sponsor, The Harbour Group, and realize two small acquisitions for approximately US$78 million in aggregate. LN Acquisition Corp is a wholly owned subsidiary of Lincoln, a leading manufacturer of automatic lubrication systems and manual lubrication equipment. In 2006, Lincoln recorded net sales of US$285 million. MICKA & KAMM: Claims Registration Period Ends July 10 ----------------------------------------------------- Creditors of Micka & Kamm Kraftfahrzeug GmbH have until July 10 to register their claims with court-appointed insolvency manager Hannfried Grauer. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 24, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wuerzburg Virchowstr. 14 Wuerzburg 6 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: Hannfried Grauer Hofstr. 3 97070 Wuerzburg Germany Tel: 0931/ 452029-50 The District Court of Wuerzburg opened bankruptcy proceedings against Micka & Kamm Kraftfahrzeug GmbH on June 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Micka & Kamm Kraftfahrzeug GmbH Attn: Reinhard Kamm, Manager Wachtelberg 6 97273 Kuernach Germany ========= I T A L Y ========= MANITOWOC CO: Moody's Lifts Rating to Ba2 on Strong Performance --------------------------------------------------------------- Moody's Investors Service upgraded The Manitowoc Company's corporate family rating to Ba2 from Ba3 and its probability of default to Ba2 from Ba3 reflecting the company's continued strong operating performance and its recent announcement that it will redeem all of its senior subordinate notes. The rating of Manitowoc's senior unsecured notes remain at Ba3, but its loss given default assessment is changed to LGD4 (66%) from LGD3 (49%). The rating outlook is stable. The ratings upgrade reflects Manitowoc's continued strong operating performance resulting from the robust construction end markets, the main driver for Manitowoc's crane business. Through LTM March 2007, Manitowoc's key credit metrics (as adjusted per Moody's FM Methodology) were: EBITA margin -- 11.5%; EBIT/interest -- 6.5x; debt/EBITDA -- 1.6x; and, free cash flow/debt -- 22.5%. Additionally, the ratings upgrade reflects Manitowoc's recent announcement that Manitowoc will redeem its 10.5% senior subordinate notes due 2012 effective Aug. 1, 2007. The company will redeem all of these notes for approximately US$129 million, including interest payments and related cost. Moody's expectation is that Manitowoc's improving operating efficiencies and the prudent financial policies should enable the company to maintain a solid Ba2 credit profile under the key rating factors in Moody's Heavy Manufacturing Rating Methodology despite the ongoing cyclicality of the construction market. Peter Doyle, Moody's analyst, said, "Manitowoc's improving operating efficiencies and strong construction end markets have resulted in strong free cash flow. These factors have enabled Manitowoc to reduce its outstanding debt." The stable outlook reflects Moody's expectation that Manitowoc's debt protection measures will continue to improve as a result of the robust demand in the construction end markets, and the prudent financial policies embraced by management. The key risks that Manitowoc will continue to face are the cyclicality and the severity of any downturn in the construction end markets. Nevertheless, Manitowoc should be able to weather future cyclical downturns much better than in the past due to its diversification into other business segments, expanding product offerings, an improving balance sheet, and a commitment to maintain ample liquidity. These ratings/assessments were affected by this action: -- Corporate Family Rating upgraded to Ba2 from Ba3; -- Probability-of-default rating upgraded to Ba2 from Ba3; -- US$150 million senior unsecured notes due 2013 remain at Ba3, but its loss given default assessment is changed to LGD4 (66%) from LGD3 (49%). -- US$114 million senior subordinate notes due 2012 upgraded to B1 (LGD6, 97%) from B2 (LGD5, 87%). The ratings on the senior subordinate notes will be withdrawn when redeemed. The Manitowoc Company, Inc., based in Manitowoc, Wisconsin, is a diversified industrial manufacturer and provider of support services in three principal business segments - Cranes and Related Products, Food service Equipment, and Marine Operations. The company has operations in China and Italy. PARMALAT SPA: Milan Judge Orders Four Banks to Stand Trial ---------------------------------------------------------- The Hon. Cesare Tacconi in Milan has ordered four banks to stand trial for their alleged role in the collapse of Parmalat S.p.A., various reports say. 13 individuals were also ordered to face trial on the same charges. The four banks are Citigroup, UBS AG, Morgan Stanley and Deutsche Bank AG. The names of the individuals however were not disclosed. The trial is scheduled on Jan 22, 2008. Bloomberg reports that according to Milan magistrates, the banks failed to disclose the terms of bond sale as well as other financing. Bloomberg adds that market manipulation carries a term of up to five years while the banks could be fined EUR1 million per count. The banks have denied the allegations. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed or bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. TISCALI: Fitch Holds Watch on IDR Pending Sale Revenue Receipt -------------------------------------------------------------- Fitch Ratings is keeping Italy-based Tiscali S.p.A.'s Issuer Default rating of 'CCC' on Rating Watch Positive, despite the delayed receipt of EUR255 million in funds from the sale of its Dutch subsidiary. The funds were initially due in first quarter of 2007, but the Dutch competition authority, NMa, and telecom regulator, OPTA, have only recently granted clearance for the deal. In November 2006, Fitch indicated that on receipt of the funds, the Rating Watch would be resolved and Tiscali's IDR would be upgraded to 'B-' from 'CCC'. With the acquisition now cleared by the competition authorities, Fitch expects the funds to be received by Tiscali within the next month. Fitch, however, is aware of recent comments made by Tiscali's CEO Tommaso Pompei, concerning possible future acquisitions. As the credit impact of any future strategic investment decisions is dependent on both the business rationale and funding mechanism used, any acquisitions will be reviewed as and when they are officially announced. Headquartered in Cagliari, Italy, Tiscali S.p.A. -- http://www.tiscali.com/-- offers Internet access in the country. The group also operates in other European countries, serving more than seven million subscribers, of which over 1.5 million are broadband users. It has sold non-core assets to raise money to cover a EUR250 million bond that matured in July. Former chairman and founder Renato Soru owns almost 30% of the company. =================== K A Z A K H S T A N =================== AKONIT JSC: Proof of Claim Deadline Slated for July 31 ------------------------------------------------------ The Tax Committee of Almaty has declared JSC Akonit (RNN 600900141299) insolvent. Creditors have until July 31 to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113A Taldykorgan Kazakhstan Tel: 8 (32822) 24-19-77 AKTAU OIL KURYLYS: Creditors Must File Claims July 24 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Aktau Oil Kurylys insolvent. Creditors have until July 24 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Micro District 27, 67-7 Aktau Mangistau Kazakhstan Tel: 8 (3292) 41-00-42 8 701 537 15-58 FETISOV LLP: Claims Filing Period Ends July 24 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Fetisov insolvent. Creditors have until July 24 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Building of Auto Station Room 11 Micro Mistrict 28 Aktau Mangistau Kazakhhstan Tel: 8 (3292) 41-15-89 JOMART-2 LLP: Claims Registration Ends July 24 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Jomart-2 insolvent. Creditors have until July 24 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kyzylorda Block 5, 47 Micro District Sayahat Kyzylorda Kazakhstan Tel: 7 777 340 40-50 7 702 124 70-80 HYDRO-SERVICE: Creditors' Claims Due July 27 -------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Hydro-Service insolvent. Creditors have until July 27 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Atyrau Third Floor Abai Str. 10a Atyrau Kazakhstan Tel: 8 (31222) 32-90-02 OTKRYTYE TECHNOLOGIYI: Creditors Must File Claims July 25 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Otkrytye Technologiyi insolvent. Creditors have until July 25 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Mashinostroiteley Str. 6-63 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 55-02-78 Fax: 8 (3232) 22-01-00 SENEKA PLUS: Proof of Claim Deadline Slated for July 31 ------------------------------------------------------- The Tax Committee of Almaty has declared JSC Seneka Plus (RNN 061800226120). Creditors have until July 31 to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113A Taldykorgan Kazakhstan Tel: 8 (32822) 24-19-77 STOREKS LLP: Claims Filing Period Ends July 27 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Storeks declared insolvent. Creditors have until July 27 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3232) 21-30-32 UNITED POINT: Claims Registration Ends July 27 ---------------------------------------------- CJSC United Point Investment Group Pte. Ltd. has declared insolvency. Creditors have until July 27 to submit written proofs of claims to: CJSC United Point Investment Group Pte. Ltd Kazybek bi Str. 20a Almaty Kazakhstan Tel: 8 (3272) 78-81-72 =================== L U X E M B O U R G =================== EVRAZ GROUP: Fuses Yuzhkuzbassugol & Raspadskaya Coal Units ----------------------------------------------------------- The Board of Directors of Evraz Group S.A. has approved a plan to combine businesses of Yuzhkuzbassugol and Raspadskaya coal companies. Exact terms and structure of the transaction are expected to be finalized in the second half of 2007. The combination is subject to Raspadskaya shareholders' as well as various regulatory approvals. Upon completion of this transaction, Raspadskaya will own 100% of shares in Yuzhkuzbassugol. Evraz will continue to hold its shares in Raspadskaya through Corber Enterprises Limited, a joint venture with Raspadskaya coal company management. As a post-transaction result, Evraz will exercise management and shareholder control in both Corber and Raspadskaya. The Board has also agreed to appoint Gennady Kozovoy, Raspadskaya CEO, as the new CEO of Yuzhkuzbassugol with effect from June 16, 2007. "I look forward to this new challenge," Mr. Kozovoy said. "My top priority is to improve safety standards at all the mines of the combined company and ensure maximum control over the company's operations in order to achieve superior results of the combined company in the interests of all company's stakeholders. "Through combination we will create a Russian coking coal leader and a top-three global coking coal producer distinguished through the best resource base, world-class management team, strong growth profile and significant export potential," Alexander Frolov, chairman and CEO of Evraz, commented. "The combined company will have Evraz's steel mills located in Siberia and the Urals as its main and largest customers. This combination will serve the best interests of both companies' shareholders." 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. 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+. EVRAZ GROUP: Highveld Steel Unit Selling Transalloys Business ------------------------------------------------------------- Highveld Steel & Vanadium Corp., a wholly owned unit of Evraz Group S.A., is holding talks to its unprofitable Transalloys unit to a number of interested parties, Carli Lourens writes for Bloomberg News. Highveld had tried to sell Transalloys to Kalahari Resources but failed due to disagreements over the acquisition's structure, Ms. Lourens relates. Transalloys, which produces manganese alloys, posted ZAR43 million (US$5.92 million) in net loss on ZAR1.11 billion in net revenues for the year ended Dec. 31, 2006. 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. 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 ===================== FIRST DATA: Completes Acquisition of FundsXpress ------------------------------------------------ First Data Corp. has completed its acquisition of FundsXpress. The complementary capabilities of First Data and FundsXpress will result in a broad and robust suite of products for secure electronic commerce and Internet banking transactions. Financial terms were not disclosed. About FundsXpress FundsXpress provides online banking and bill payment services for consumers and small businesses. About First Data First Data Corp. (NYSE: FDC) -- http://www.firstdata.com/-- provides electronic commerce and payment solutions for businesses worldwide, including those in New Zealand, the Netherlands and Mexico. The company's portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at 2 million ATM and retail locations. * * * As reported in the Troubled Company Reporter on April 4, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on First Data Corp. to 'BB+' from 'A' and placed it on CreditWatch with negative implications. The rating action followed First Data's agreement to be acquired by Kohlberg Kravis Roberts & Co. in a transaction valued at about US$29 billion. GLOBAL POWER: Wants Exclusive Plan-Filing Period Extended --------------------------------------------------------- Global Power Equipment Group Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware gave to extend until Oct. 1, 2007, their exclusive period to file a chapter 11 plan of reorganization, the Associated Press Reports. The Debtors also want their exclusive period to solicit acceptances of that plan to Nov. 30, 2007. The company's exclusive plan-filing period is set to expire on July 10, 2007. According to the report, the Debtors are still in talks with the Official Committee of Unsecured Creditors and the Official Committee of Equity Security Holders. The Debtors contend, AP relates, the extension would allow them additional time to better formulate a consensual chapter 11 reorganization plan. Based in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP represents the Official Committee of Unsecured Creditors. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. =========== N O R W A Y =========== PETROLEUM GEO-SERVICES: Moody's Lifts Corp. Family Rating to Ba2 ---------------------------------------------------------------- Moody's Investors Service upgraded Petroleum Geo-Services ASA's corporate family rating to Ba2 from Ba3 and assigned a Ba2 (LGD4, 56%) to its proposed $800 million of senior secured credit facilities, comprised of a $500 million term loan and a $300 million revolving credit facility. Proceeds from the term loan will be used to refinance an existing term loan and, along with approximately $50 million of cash on the balance sheet, fund a $300 million special dividend to shareholders. The rating outlook is stable. Despite the use of debt to fund the special dividend, Moody's upgraded PGS' rating due to: (i) the progress that it has made under new management in recent years including a sharper focus following the divestiture of non-core businesses, a significant reduction in debt, improved discipline with respect to new investments, and a strengthening of internal controls; (ii) a favorable outlook for the marine seismic sector supported by strong demand and an expectation that capacity additions will likely not oversupply the market; and (iii) an expectation that it will maintain prudent financial policies that recognize the cyclical nature of the business. The use of debt to fund the special dividend in this instance was not perceived as creditor unfriendly as it normally would have been given PGS' low leverage prior to the transaction. Moody's views the primarily debt-funded special dividend as a one-off transaction to reward shareholders and to achieve a more optimal capital structure. In 2005 and 2006, PGS' debt was paid down very aggressively with proceeds from divestitures and strong free cash flow. Going forward, Moody's expects that PGS will not lever up further to do additional special dividends or share repurchases, instead using excess cash flow for that purpose. Pro forma for the proposed borrowings, PGS' balance sheet debt to EBITDA less multi-client investments was approximately 1.2x for the LTM period ended March 31, 2007. Applying Moody's standard adjustments for operating leases and pensions, PGS' pro forma adjusted debt to EBITDA less multi-client investments was approximately 1.8x for the same period. Moody's considers this level of leverage appropriate for the Ba2 rating and it compares favorably to the 2.5x-3.5x range of expectations established for PGS' prior Ba3 rating. The rating recognizes the cyclical nature of the seismic sector. The late 1990's saw a boom in seismic acquisition and the addition of a significant amount of capacity. The commodity price correction in 1998-1999 led to a drop-off in demand for seismic services and it was during this time that operators chose to shoot under-funded multi-client surveys in order to maintain vessel utilization. This led to period of significant over-investment and resulting poor returns during a period of reduced demand for seismic services. The sector began to recover from its overhang of excess capacity in 2004 and has had strong years in both 2005 and 2006 driven by increases in demand. Some new capacity has been added in recent years (mostly additional streamers), but not enough to meet the strong increase in demand and, as a result, dayrates for contract seismic have risen dramatically (with EBIT margins exceeding 50%) and the level of pre-funding for multi-client surveys have risen to levels exceeding 100% (it averaged 123% in 2006). The outlook for the sector for the next couple of years is favorable given increased exploration budgets and the increasing use of seismic data for production optimization activities. Much of the demand for these services come from the majors and national oil companies, which together account for 55% of PGS' revenues. Moody's also expects that capacity additions, which it believes is the most significant risk to the sector, will be tempered by what is now a consolidated market dominated by three big players. The stable outlook reflects Moody's expectation that PGS' financial performance will continue to benefit from favorable industry conditions over the near and intermediate term. An increase in leverage beyond 2.5x adjusted debt to EBITDA less multi-client investments or additional debt-funded special dividends or share repurchases could have negative implications for the rating. Petroleum Geo-Services ASA is headquartered in Lysaker, Norway. PETROLEUM GEO: US$800MM Debt Refinancing Cues S&P to Hold Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on geophysical company Petroleum Geo-Services ASA. The affirmation follows PGS' announcement that it will seek to refinance existing senior secured debt with US$800 million in new senior secured credit facilities (consisting of a US$500 million term loan B and US$300 million revolving credit facility) as well as fund a one-time special dividend of US$300 million. Despite the leveraging aspects of this transaction, S&P expect credit measures to remain at acceptable levels for the current ratings over the near to intermediate term. The outlook is stable. S&P will not rate the new senior secured credit facilities, and will withdraw its 'BB-' senior secured rating on PGS' current bank facilities ($850 million term loan B and US$150 million revolving credit facility) upon close of the new facilities. Pro forma the refinancing, Lysaker, Norway-based PGS will have US$587 million in long-term debt (including US$75.7 million in amortizing secured debt at wholly owned subsidiary Oslo Seismic and capital leases of about US$12.2 million). "The ratings on PGS reflect the company's participation in the very competitive and highly cyclical seismic subsector of the oilfield services industry," said Standard & Poor's credit analyst Jeffrey Morrison. "Ratings also incorporate management's increasing focus on rewarding shareholders in the current industry upcycle as well as an aggressive financial risk profile. Concerns are partially offset by PGS' strong market position in marine and onshore seismic operations, a sizable and technically sophisticated fleet of 3D marine seismic acquisition vessels, and expectations that currently favorable industry conditions will support near-term cash flow and credit measures." The stable outlook incorporates S&P's expectations that currently favorable industry conditions, manageable debt levels, and improved cash flow generation will support ratings in the near to intermediate term. Given the leveraging effects of recent transactions, positive rating actions are likely limited in the near term. In the longer term, further rating improvement, while possible, will depend on S&P's assessment of the company's business risk profile (given participation and in a challenging and historically volatile industry) and management's adherence to prudent financial policy. Conversely, if management pursues growth initiatives and/or additional rewards to its shareholders in a more leveraging manner (i.e., causing adjusted debt to EBITDA to materially exceed 2x-2.5x in an upcycle environment), or if operational performance deviates materially from S&P's expectations, negative rating actions could result. Headquartered in Oslo, Norway, the company has operations in Singapore and Ecuador. =========== R U S S I A =========== ANAPSKIY OJSC: Creditors Must File Claims by July 26 ---------------------------------------------------- Creditors of OJSC Diary Anapskiy have until July 26 to submit proofs of claim to: I. Nezhentseva Insolvency Manager Post User Box 119 Central Post Office Anapa 353440 Krasnodar Russia The Arbitration Court of Krasnodar commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A32-21942/2004-43/164-B. The Court is located at: The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Russia The Debtor can be reached at: OJSC Diary Anapskiy Zavodskaya Str. 28/v Anapa Russia BASH-MED-REM-STROY: Creditors Must File Claims by July 19 --------------------------------------------------------- Creditors of OJSC Bash-Med-Rem-Stroy (TIN 0278044466) have until July 19 to submit proofs of claim to: E. Malyadskiy Insolvency Manager Post User Box 7 Post Office 22 Ufa 450022 Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-23112/06-G-PAV/MRS. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: OJSC Bash-Med-Rem-Story D. Donskogo Str. 65/2 Ufa 450065 Bashkortostan Russia BUILDING CO: Chelyabinsk Bankruptcy Hearing Slated for Oct. 9 ------------------------------------------------------------- The Arbitration Court of Chelyabinsk will convene on Oct. 9 to hear the bankruptcy supervision procedure on LLC Building Company Development. The case is docketed under Case No. A76-4424/2007-34-72. The Temporary Insolvency Manager is: A. Alekseev Lenina Pr. 19-45 456007 Chelyabinsk Russia The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: LLC Building Company Development Kuybysheva Str. 71A 454138 Chelyabinsk Russia CEDAR-89 OJSC: Court Names O. Lykov as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Moscow appointed O. Lykov as Insolvency Manager for OJSC Scientific Production Company Cedar-89 (TIN 7725245603). He can be reached at: O. Lykov Bolshoj Tishinskiy Per. 38 123557 Moscow Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A 40-13448/07-71-61B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: OJSC Scientific Production Company Cedar-89 Room 4-7 Mira Pr. 105 129088 Moscow Russia CORRECT CJSC: Creditors Must File Claims by July 26 --------------------------------------------------- Creditors of CJSC Correct have until July 26 to submit proofs of claim to: P. Tarasov Insolvency Manager Post User Box 19 OPS-100 170100 Tver Russia The Arbitration Court of Murmansk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A42-287/2007. The Court is located at: The Arbitration Court of Murmansk Knipovicha Str. 20 Murmansk Russia The Debtor can be reached at: CJSC Correct Apartment 309 Lenina Pr. 43 183038 Murmansk Russia DEMESHKINO CJSC: Pskov Bankruptcy Hearing Slated for July 19 ------------------------------------------------------------ The Arbitration Court of Pskov will convene on July 19 to hear the bankruptcy supervision procedure on CJSC Demeshkino. The case is docketed under Case No. A52-343/2007. The Temporary Insolvency Manager is: P. Tarasov Post User Box 19 OPS-100 Tver Russia The Debtor can be reached at: CJSC Demeshkino Zaborovye Ostrovskiy 181313 Pskov Russia ERMAKOVSKIY REPAIR-TECHNICAL: Claims Filing Period Ends July 19 --------------------------------------------------------------- Creditors of OJSC Ermakovskiy Repair-Technical Service have until July 19 to submit proofs of claim to: N. Surtaev Insolvency Manager Diksona Str. 1-203 660020 Krasnoyarsk Russia The Arbitration Court of Krasnoyarsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-4159/2007. The Court is located at: The Arbitration Court of Krasnoyarsk Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: OJSC Ermakovskiy Repair-Technical Service Ermakovskoye Ermakovskiy 662820 Krasnoyarsk Russia EVRAZ GROUP: Fuses Yuzhkuzbassugol & Raspadskaya Coal Units ----------------------------------------------------------- The Board of Directors of Evraz Group S.A. has approved a plan to combine businesses of Yuzhkuzbassugol and Raspadskaya coal companies. Exact terms and structure of the transaction are expected to be finalized in the second half of 2007. The combination is subject to Raspadskaya shareholders' as well as various regulatory approvals. Upon completion of this transaction, Raspadskaya will own 100% of shares in Yuzhkuzbassugol. Evraz will continue to hold its shares in Raspadskaya through Corber Enterprises Limited, a joint venture with Raspadskaya coal company management. As a post-transaction result, Evraz will exercise management and shareholder control in both Corber and Raspadskaya. The Board has also agreed to appoint Gennady Kozovoy, Raspadskaya CEO, as the new CEO of Yuzhkuzbassugol with effect from June 16, 2007. "I look forward to this new challenge," Mr. Kozovoy said. "My top priority is to improve safety standards at all the mines of the combined company and ensure maximum control over the company's operations in order to achieve superior results of the combined company in the interests of all company's stakeholders. "Through combination we will create a Russian coking coal leader and a top-three global coking coal producer distinguished through the best resource base, world-class management team, strong growth profile and significant export potential," Alexander Frolov, chairman and CEO of Evraz, commented. "The combined company will have Evraz's steel mills located in Siberia and the Urals as its main and largest customers. This combination will serve the best interests of both companies' shareholders." 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. 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+. EVRAZ GROUP: Highveld Steel Unit Selling Transalloys Business ------------------------------------------------------------- Highveld Steel & Vanadium Corp., a wholly owned unit of Evraz Group S.A., is holding talks to its unprofitable Transalloys unit to a number of interested parties, Carli Lourens writes for Bloomberg News. Highveld had tried to sell Transalloys to Kalahari Resources but failed due to disagreements over acquisition's structure, Ms. Lourens relates. Transalloys, which produces manganese alloys, posted ZAR43 million (US$5.92 million) in net loss on ZAR1.11 billion in net revenues for the year ended Dec. 31, 2006. 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. 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+. INTERNATIONAL SPORT: Tyumen Court Hearing Slated for June 28 ------------------------------------------------------------ The Arbitration Court of Tyumen will convene on June 28 to hear the bankruptcy supervision procedure on OJSC International Sport Centre (TIN 7203082570). The case is docketed under Case No. A-70-1141/3-07. The Temporary Insolvency Manager is: F. Zagidullin Chapaeva, 63-17 Tuymaly 452757 Bashkortostan Russia The Court is located at: The Arbitration Court of Tyumen Khokhryakova Str. 77 627000 Tyumen Russia The Debtor can be reached at: OJSC International Sport Centre Respubliki Str. 143a 625026 Tyumen Russia KDSZ OJSC: Creditors Must File Claims by July 19 ------------------------------------------------ Creditors of OJSC KDSZ (TIN 6445005477, OGRN 1026401864390) have until July 19 to submit proofs of claim to: The Insolvency Manager: Post User Box 610 Balakovo-25 413800 Saratov Russia The Arbitration Court of Saratov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-57-107b/06-32. The Court is located at: The Arbitration Court of Saratov Babushkin Vvoz 1 Saratov Russia The Debtor can be reached at: OJSC KDSZ Zavolzhskiy Pugachevskiy 413705 Saratov Russia KONEK CJSC: Creditors Must File Claims by July 26 ------------------------------------------------- Creditors of CJSC Company Konek have until July 26 to submit proofs of claim to: P. Tarasov Insolvency Manager Post User Box 19 OPS-100 170100 Tver Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-28115/2006. The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Company Konek Marata Str. 86 St. Petersburg Russia LAKOKRASKA OJSC: Creditors Must File Claims by June 26 ------------------------------------------------------ Creditors of OJSC Lakokraska have until June 26 to submit proofs of claim to: O. Karpov Insolvency Manager Office 2 Building 2 Lomonosova Pr. 92 163000 Arkhangelsk Russia The Arbitration Court of Yaroslavl will convene at 11:00 a.m. on July 18 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A82-935/07-30-B/8. The Debtor can be reached at: OJSC Lakokraska Polushkina Rosha Str. 16 150053 Yaroslavl Russia MOSCOW STARS: Fitch Puts BB Rating on Class B Mortgage Certs. ------------------------------------------------------------- Fitch Ratings has assigned Moscow Stars B.V., Class A and Class B expected ratings of 'BBB' and 'BB' respectively, with Stable Outlooks. The Class C notes are unrated. The final ratings are contingent on the receipt of the final documents conforming to information already received. The transaction is a securitisation of first-ranking residential mortgage loans denominated in US$, together with their ancillary rights. The loans are secured on properties located in the Russian Federation (rated 'BBB+'/Stable Outlook/Country Ceiling of 'A-'/Stable Outlook). The originator and seller of the mortgage portfolio is Moskommertsbank, a bank incorporated under the laws of Russia. The transaction totals US$184.4 million and represents the first publicly rated RMBS transaction from this Russian bank. "Fitch expects further activity from the leading banks in Russia to support the continued expansion of the banking sector and, more specifically, the high growth that has been seen in this asset class and is expected to continue for the foreseeable future," says Antonio Corbi, Associate Director in Fitch's Emerging Markets Structured Finance team. The expected ratings are based on the quality of the collateral, the available credit enhancement, the underwriting and servicing capabilities of MKB, and the integrity of the legal structure of the transaction. The ratings address timely payment of interest and ultimate payment of principal in accordance with the terms of the notes. Initial credit enhancement of 16.4% for the Class A notes will be provided by subordination of the Class B notes (9%) and the Class C notes (2.5%) and a reserve fund equating to 4.9% of the initial principal amount outstanding of the notes. The underlying loans and the notes are both denominated in USD and so the transaction does not need a foreign currency exchange swap. To mitigate the interest rate mismatch between the fixed- rate USD assets and the floating US$ Libor payable on the notes, the issuer will enter into a full balance guaranteed fixed-to- floating swap with Barclays Bank PLC, (rated 'AA+'/Outlook Negative/'F1+') and Raiffeisen Zentralbank Osterreich AG (rated Support '1'). Although the transaction does not need to provide coverage for transfer and convertibility risk since it is rated below the Country Ceiling of the originator, the transaction may be vulnerable to other event risks such as government intervention -- including the expropriation of property and a possible redenomination of the currency in which the assets are denominated. These factors become more risky when the rating is above the sovereign and Country Ceiling, as the government concerned is deemed to be in a very difficult situation at such a time. However, in Fitch's view, these risks are not associated with the expected ratings of the notes. Legal opinions for the transaction confirm that the essential components of a true sale are achieved under the transaction documents, but carry some qualifications. While the structural features of the transaction adequately mitigate these uncertainties, the expected ratings are nonetheless partly credit-linked to the originator. MKB is majority-owned and controlled by Kazkommertsbank (KKB, 'BB+'/Outlook Positive/'F3'), a bank incorporated under the laws of the Republic of Kazakhstan, and one of the largest commercial banks in the country. PROD-INVEST LLC: Court Names I. Ponomareva as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Bashkortostan appointed I. Ponomareva as Insolvency Manager for LLC Prod-Invest. He can be reached at: I. Ponomareva Gagarina Str. 14-179 Ufa 450073 Bashkortostan Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-440/07-G-PAV/ShAB. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: LLC Prod-Invest Zlobina Str. 13 Ufa Bashkortostan Russia SEVERSTAL OAO: CEO Denies Sale Talks with ThyssenKrupp AG --------------------------------------------------------- Alexei Mordashov, chief executive of OAO Severstal, denied holding talks to sell the company to ThyssenKrupp AG, Interfax News reports. "No talks have been held, none are being held and we don't intend to hold any," Mr. Mordashov told Interfax News. Mr. Mordashov was reacting to reports that the German steelmaker is eyeing Severstal and US Steel, Interfax News relates. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. * * * In a TCR-Europe report on April 24, 2007, Fitch Ratings revised the Outlooks on OAO Severstal's Issuer Default and National Long-term ratings to Positive from Stable. In addition, Fitch has affirmed Severstal's ratings at Issuer Default 'BB-', senior unsecured 'BB-', Short-term 'B' and National Long-term 'A+'. As reported in the TCR-Europe on April 16, 2007, Moody's Investors Service's confirmed its Ba3 Corporate Family Rating for Severstal OAO. Moody's also assigned a Ba3 Probability-of- Default rating to the company. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ -------- Sr. Unsec. Regular Bond/Debenture Due 2009 B1 B1 LGD5 75% Sr. Unsec. Regular Bond/Debenture Due 2014 B1 B1 LGD5 75% As of Feb. 1, Severstal also carries BB- Long-term Foreign Issuer Credit and Long-term Local Issuer Credit ratings from Standard & Poor's. Outlook is stable. YAMAL-ENERGO LLC: Bankruptcy Hearing Slated for Sept. 17 -------------------------------------------------------- The Arbitration Court of Yamalo-Nenetskiy will convene at 9:00 a.m. on Sept. 17 to hear the bankruptcy supervision procedure on LLC Yamal-Energo (TIN 8901012447). The case is docketed under Case No. A81-632/2007. The Insolvency Manager is: F. Zagidullin Chapaeva, 63-17 Tuymaly 452757 Bashkortostan Russia The Court is located at: The Arbitration Court of Yamalo-Nenetskiy Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Russia The Debtor can be reached at: LLC Yamal-Energo Lenina Str. 7a Salekhard Yamalo-Nenetskiy 629002 Tyumen Russia ZOLOTOY ROG: Court Names A. Makovetskaya as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Primorye appointed A. Makovetskaya as Insolvency Manager for LLC Shipping Company Zolotoy Rog. He can be reached at: A. Makovetskaya Post User Box 1-203 690001 Vladivostok Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A51-2108/2007 15-25B. The Debtor can be reached at: A. Makovetskaya Post User Box 1-203 690001 Vladivostok Russia * Fitch Revises Republic of Komi's Low B Ratings' Outlook --------------------------------------------------------- Fitch Ratings has changed the Outlooks on Republic of Komi's International and National Long-term ratings to Positive from Stable. Its International Long- and Short-term ratings are affirmed at 'BB-' and 'B' respectively. The National Long-term rating is affirmed at 'A+(rus)'. The Positive Outlook reflects Fitch's expectations that stable economic growth will allow the region to overcome operating expenditure pressures and maintain high operating and current balances. This follows the consolidation of Komi's budgetary performance, owing to strong economic growth in 2006 and low debt burden ratios. Fitch expects this trend to continue, with operating and current margins remaining at double-digit levels and debt burden gradually decreasing. The ratings also factor in Komi's dependence on the primary sector that makes its budgetary performance vulnerable to commodity price fluctuations. Komi's GRP grew 5.6% in 2006 (6.8% in 2005), which is estimated to be a sustainable long-term growth rate. To ensure stable tax revenue flow, the republic has signed agreements with the largest local taxpayers setting the floors for taxes paid, production volume and investments. The benchmarks were set at the levels of 2006 since that was the year when most of the companies completed their investment programs and reached full capacity. Budget revenue continued to grow in 2005 and 2006 by 18.2% and 19.4% respectively. In 2006 the increase was mainly generated by a 24% increase in corporate income tax revenue as well as a 52% growth in property tax revenue. Although, the operating and current margins declined slightly in 2006 to 14.1% and 13%, respectively, from 16.4% and 15.1% in 2005, Fitch expects that the margins will recover in 2007 to the long-term average of 15%. The republic has recorded on average stable surplus before debt variation of 3.7% during the last three years. The total debt burden of Komi has gradually fallen to 15.3% of current revenue in 2006 from 38.3% in 2002. It has replaced costly debts with lower-interest instruments that have longer maturities by increasing the share of rouble-denominated debt to 86% of total debt in 2006 from 27% in 2002. The payback ratio has been declining continuously to one year in 2006 from a five- year high of 5.7 years in 2002. Given the expected repayment of its RUB500m bond issue, the total debt of the republic will further decrease to 11% of current revenue by end-2007. At the same time, Komi's economy is heavily reliant on the primary sectors, exposing its finances to commodity price fluctuations, and is unlikely to become diversified. The republic's operating expenditure is relatively inflexible since financial support of the municipalities and other transfers accounted for 60.7% of operating spending in 2006, while staff expenditure continued to increase to account for 22.1% in 2006. The newly acquired responsibility for the cash allowances that have replaced the social benefits system, combined with public sector salary increases, places additional pressure on the republic's operating expenditure. ===================== S W I T Z E R L A N D ===================== ATAMUS JSC: Zug Court Starts Bankruptcy Proceedings --------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against JSC Atamus on April 24. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland The Debtor can be reached at: JSC Atamus Untermuli 6 6300 Zug Switzerland DEUTSCHE INDUSTRIEBANK: Fitch Puts BB- Rating on US$11.4MM Loan --------------------------------------------------------------- Fitch Ratings has assigned the loan facility provided by IKB Deutsche Industriebank AG and IKB International S.A. to Havenrock II Short-term ratings of: -- US$165,000,000 tranche 1 provided by IKB International: 'AA-'; Outlook Stable -- US$404,875,000 tranche 2 provided by IKB: 'AA-'; Outlook Stable -- US$43,750,000 tranche 3 provided by IKB: 'BBB+'; Outlook Stable -- US$11,375,000 tranche 4 provided by IKB: 'BB-'; Outlook Stable The loan facility is a 364 day committed facility, which can be drawn to cover Havenrock II's obligations under a credit default swap, as part of the structure for a transaction within IKB's asset-backed commercial paper program Rhineland. The above ratings have been assigned using the Vector 3.0 model. ETZEL ENGINEERING: Creditors' Liquidation Claims Due July 2 ----------------------------------------------------------- Creditors of LLC Etzel Engineering have until July 2 to submit their claims to: Dariusz Gorczyca Liquidator Husmatt 14 5405 Baden-Dattwil Switzerland The Debtor can be reached at: LLC Etzel Engineering Baden AG Switzerland FAUNA CARE: Zug Court Starts Bankruptcy Proceedings --------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against LLC Fauna care on May 15. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland The Debtor can be reached at: LLC Fauna care Birkenstrasse 49 6343 Rotkreuz Switzerland GALERIE KAMPF: Creditors' Liquidation Claims Due July 2 ------------------------------------------------------- Creditors of LLC Galerie kampf have until July 2 to submit their claims to: Jean Kampf Liquidator Hohwachter Weg 1 22143 Hamburg Switzerland The Debtor can be reached at: LLC Galerie kampf Basel BS Switzerland HANS BLUM: Creditors' Liquidation Claims Due July 6 --------------------------------------------------- Creditors of JSC Hans Blum have until July 6 to submit their claims to: Marlise Baumann Liquidator Chlosterbergstrasse 16 8248 Uhwiesen Switzerland The Debtor can be reached at: JSC Hans Blum Neuhausen am Rheinfall SH Switzerland MIRO MARKETING: Creditors' Liquidation Claims Due June 30 --------------------------------------------------------- Creditors of LLC miro Marketing + Service have until June 30 to submit their claims to: Kurt Tenger Liquidator CompTax Treuhand Hertistrasse 26 8304 Wallisellen Bulach ZH Switzerland The Debtor can be reached at: LLC miro Marketing + Service Wallisellen Bulach ZH Switzerland OKTOGON INFORMATIK: Creditors' Liquidation Claims Due July 4 ------------------------------------------------------------ Creditors of LLC Oktogon Informatik have until July 4 to submit their claims to: Kappelerstrasse 8 8500 Frauenfeld Switzerland The Debtor can be reached at: LLC Oktogon Informatik 8500 Frauenfeld TG Switzerland VISUAL-I LLC: Creditors' Liquidation Claims Due July 6 ------------------------------------------------------ Creditors of LLC Visual-I have until July 6 to submit their claims to: Raffael Sigrist Liquidator Ruhebergstrasse 57 9327 Tubach Rorschach SG Switzerland The Debtor can be reached at: LLC Visual-I Tubach Rorschach SG Switzerland ============= U K R A I N E ============= AGRICULTURAL TECHNOLOGY: Claims Filing Deadline Set June 19 ----------------------------------------------------------- Creditors of LLC Agricultural Technology (code EDRPOU 30174927) have until June 19 to submit their proofs of claim to: Andrew Savochka Liquidator Sumy and Kiev Divisions Str. 20 40024 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 8/565-06. The Debtor can be reached at: Pervomayskaya Str. 29/64 LLC Agricultural Technology 40000 Sumy Ukraine AVD LLC: Claims Filing Deadline Set June 21 ------------------------------------------- Creditors of have until June 21 to submit their proofs of claim to: Dmitry Shvets Liquidator Kalnishevsky Str. 10/44 69124 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 25/110/07. The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC AVD 69002 Zaporozhje Ukraine Heroes of Stalingrad Str.18 Apartment 21 DALAS LLC: Creditors Must File Claims by June 21 ------------------------------------------------ Creditors of LLC Garden Center Dalas have until June 21 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 377/11b-06. The Debtor can be reached at: LLC Garden Center Dalas Andreev Str. 2 Brovary Kiev Ukraine FLORA OJSC: Claims Filing Deadline Set June 21 ---------------------------------------------- Creditors of OJSC Flora (code EDRPOU 02094867) have until June 21 to submit their proofs of claim to: The Economic Court of Lugansk Geroiv VVV Square 3a 91000 Lugansk Ukraine The Economic Court of Lugansk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 20/24b. The Debtor can be reached at: OJSC Flora 9th May Str. 74-b Lisichansk Lugansk Ukraine INTERALLOYSERVICE LLC: Claims Filing Deadline Set June 19 --------------------------------------------------------- Creditors of LLC Interalloyservice (code EDRPOU 32680360) have until June 19 to submit their proofs of claim to: Nathalie Martynenko Liquidator Apartment 5 Mayakovsky Avenue 12 69035 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 19/100/07. The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Interalloyservice Apartment 31 Victory Str. 93-B Zaporozhje Ukraine LIVARNIK OJSC: Claims Filing Deadline Set June 21 ------------------------------------------------- The Economic Court of Dnipropetrovsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. B 26/109-07. Creditors of OJSC Livarnik (code EDRPOU 24443009) have until June 21 to submit their proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: OJSC Livarnik Industrial Str. 1/1 Pavlograd 51413 Dnipropetrovsk Ukraine NADIYA LLC: Claims Filing Deadline Set June 19 ---------------------------------------------- Creditors of LLC Nadiya have until June 19 to submit their proofs of claim to: The Court is located at: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 7/175-06. The Debtor can be reached at: LLC Nadiya Central Str. 14 Voronovka Belopolye District Sumy Ukraine NEZABUDKA LLC: Claims Filing Deadline Set June 21 ------------------------------------------------- Creditors of LLC Nezabudka have until June 21 to submit their proofs of claim to: Sergey Romanchuk Liquidator Apartment 1 Zhuravlin Str. 9 79040 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 6/42-4/42. The Court is located at: The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Debtor can be reached at: LLC Nezabudka 81400 Lvov Ukraine Sambor Vygovsky Str. 208 SOYUZ-ENERGY LLC: Claims Filing Deadline Set June 19 ---------------------------------------------------- Creditors of LLC Soyuz-Energy (code EDRPOU 32292211) have until June 19 to submit their proofs of claim to: Nathalie Martynenko Liquidator 69035 Zaporozhje Ukraine Mayakovsky Avenue 12 Apartment 5 The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 19/102/07. The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Soyuz-Energy Apartment 402 40 Years of Soviet Ukraine Str. 60-B 69037 Zaporozhje Ukraine USO LLC: Claims Filing Deadline Set June 19 ------------------------------------------- Creditors of LLC Uso have until June 19 to submit their proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 29/25-07. The Debtor can be reached at: LLC Uso Shevchenko Str. 94-a Loboykovka Petrikovsky District 51830 Dnipropetrovsk Ukraine =========================== U N I T E D K I N G D O M =========================== FORD MOTOR: Inks MOU with Meridian for Sale of Sandusky Plant ------------------------------------------------------------- Ford Motor Company and Meridian Automotive Systems signed a memorandum of understanding, outlining a framework for the sale of Automotive Components Holdings' lighting business and its Sandusky, Ohio plant. With the MOU, ACH has sold one plant and signed MOUs related to eight additional plants during the past six months. The primary product produced at the ACH Sandusky Plant is automotive lighting, including front, rear and signal lights. These products are found on a number of Ford vehicles from the Focus to the Expedition, and about 60 percent of Ford's North American vehicle production. "This announcement represents more progress with our Way Forward plan," said Mark Fields, Ford's president of The Americas. "The successful approach Ford is taking with our component operations -- including selling or idling our ACH facilities -- will help us achieve our commitment to reduce overall operating costs by $5 billion by the end of 2008." Other ACH businesses in negotiations for final agreement and sale include glass, fascias and fuel tanks, climate control systems, propshafts, and power transfer units. The ACH fuel rail business and its El Jarudo subsidiary were sold at the end of the first quarter. "The response from the marketplace has been better than expected," said Al Ver, ACH CEO and COO and Ford Motor Company vice president. "We believe that is due, in large measure, to the significant improvement in the quality, on-time delivery and cost-effectiveness of our operations during the past year and a half." Automotive Components Holdings is a temporary company managed by Ford, which was established in October 2005 with former Visteon component operations. ACH's mission is to ensure the flow of quality components and systems while preparing the ACH automotive component operations for sale or idling. To date, the US$4 billion company and its 12 plants are supported by about 12,000 full-time employees, mostly leased from Visteon or Ford. "Acquiring the Sandusky, Ohio facility is a logical extension of our engineering and manufacturing expertise in lighting," said Richard Newsted, Meridian's president and CEO. "We are excited about the opportunity to improve the long-term competitive position of this operation and expand our strengths and capabilities in lighting technology." The sale is contingent upon reaching a new and competitive agreement with the United Auto Workers. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3-billion of senior convertible notes due 2036. HCA: Fitch Affirms B Issuer Default Rating with Stable Outlook -------------------------------------------------------------- Fitch Ratings has affirmed HCA Inc.'s ratings as: -- Issuer Default Rating at 'B'; -- Asset based facility at 'BB/RR1'; -- Euro term loan at 'BB/RR1'; -- Secured bank facility at 'BB/RR1'; -- Second-lien notes at 'B/RR4'; -- Senior unsecured notes at 'CCC+/RR6'. Total rated debt at March 31, 2007, was approximately US$27.9 billion. The Rating Outlook is Stable. HCA's ratings reflect HCA's significant leverage and challenging industry environment, partially offset by HCA's improving profitability. Although HCA continues to experience strong pricing and improving margins, its financial flexibility remains constrained by significant debt levels. In addition, HCA, along with the for-profit industry in general, is experiencing weak volumes and elevated levels of bad debt and uncompensated care. Fitch expects these factors to remain key credit concerns for the near future. HCA's leverage and debt levels increased substantially as a result of its 2006 leveraged buy-out. As a result of the transaction, total debt increased to more than US$28.4 billion at the end of 2006 and has decreased slightly to US$27.9 billion at the end of the first quarter of 2007. Leverage increased from approximately 2.8 times prior to the transaction to approximately 6.25x for the latest twelve months ended March 31, 2007. Fitch expects cash generated from operations will permit only modest debt repayments in the near future. In addition, HCA has limited debt maturities until 2010, when approximately US$1.5 billion in debt is due. Thus, Fitch expects leverage to remain high over the next few years barring any major event, notably significant asset divestitures, an initial public offering, or similar transaction. HCA, like many of its peers in the industry, continues to be challenged by elevated levels of bad debt and uncompensated care . HCA's bad debt as a percentage of revenues increased to 10.4% during the first quarter versus 9.3% during the prior year. Total uncompensated care increased to 18.6% of revenues for the first quarter of 2007 from 16.3% in the first quarter of 2006. However, both bad debt and uncompensated care decreased on a sequential basis from the fourth quarter of 2006. Fitch believes that the acceleration of bad debt expense will moderate in 2007 compared to 2006. However, Fitch believes meaningful reduction in uncompensated care throughout the industry is dependent on legislative reform at the national level or in key states (e.g., Texas and Florida). Fitch notes that the topic of universal reform has become more prevalent and will closely watch any developments. In addition to uncompensated care, the industry is experiencing weak volumes. In general, Fitch believes the for-profit hospital industry is challenged by increasing competition from specialty hospitals, entrepreneurial physicians, and the overall trend of moving treatments out of the inpatient setting. HCA's recent volume performance is consistent with this general trend. During the 1Q-07, HCA's same store adjusted admissions declined 1.3% while they were flat during the 4Q-06. Excluding the Las Vegas market, which was negatively impacted by the termination of a managed care contract with Sierra Health Services, Inc., same store adjusted admissions declined 0.9%. Fitch expects HCA to experience low to no growth in volumes in 2007. Despite weak volumes, HCA continues to experience revenue growth in the mid-single digits as a result of favorable pricing. Same store net revenue per adjusted admission increased 7.5% and 8% for the 4Q-06 and 1Q-07, respectively. This was driven in part by increased acuity, the case mix increased 0.8% in the first quarter versus the prior year, and strong managed care rate increases. Fitch expects the company to obtain mid-to-high single digit price increases from commercial payers over the next few years. Medicare and Medicaid pricing has also been favorable, with same store net revenue per adjusted admission increases of 4.6% for traditional Medicare and 12.2% for Medicaid in the first quarter of 2007. Fitch notes that government pricing was aided by approximately US$58 million in revenues from Upper Payment Limit funding in Texas which may not be sustainable in the long term. Also, Medicare pricing may experience pressures in 2008 if the proposed Inpatient Prospective Payment System for 2008 is implemented as planned. However, in general, Fitch expects pricing across all payers to continue to be favorable over the next few years, with revenue per adjusted admission growth above historic levels. Since completing its LBO, HCA has significantly improved its profitability. EBITDA margins as a percentage of sales increased from 14.6% during the third quarter of 2006 (pre-LBO) to 18.9% during the fourth quarter and 19.2% during the 1Q-07. This improvement is the result of several factors. First, travel and entertainment and marketing expenses have declined; in the first quarter of 2007, HCA estimates it reduced marketing and advertising expenses by approximately US$21 million and travel expenditures by US$8 million on a same facility basis. Second, both supply and labor costs have declined since the LBO. Fitch believes supply costs benefited from decreased pharmacy expense and an industry-wide observed moderation in medical device price inflation driven in large part by decreased use of drug-eluting stents. Labor expense benefited from increased productivity (e.g., man-hours per adjusted admission declined approximately 1% versus prior year in the first quarter) and reduced overhead. Finally, HCA experienced decreases in insurance expense of US$19 million and US$29 million during fourth quarter of 2006 and first quarter of 2007, respectively. This reduction is related to the company's general improvements in settled claims rates over the past several years. Although profitability has improved markedly over the past few quarters, Fitch believes EBITDA margins will decline from current levels in 2007 and 2008. Increasing focus on on-call pay as well as a growing labor shortage may pressure labor costs in the near-term. In addition, Fitch believes some of the improvement in medical device savings (notably reduced DES use) will moderate over time. Finally, bad debt will likely continue to pressure margins and profitability. Liquidity at March 31, 2007, was provided by HCA's asset based revolver (US$549 million available), secured revolver (US$1.859 billion available), and cash on hand (approximately US$409 million). As a result of the debt reduction as well as EBITDA expansion during the quarter, leverage (total debt/EBITDA) improved to 6.25x for the LTM to March 31, 2007, from 6.59x for the LTM to Dec. 31, 2006. In addition to leverage reductions, HCA improved its pricing during the quarter by refinancing the rates on the term loans A and B and the Euro term loan to LIBOR plus 225 basis points (bp), a 25bp reduction on the term loan A and Euro term loan, and a 50bp reduction on the term loan B. Headquartered in Nashville, Tennessee, HCA (Hospital Corporation of America) Inc. (NYSE: HCA) -- http://www.hcahealthcare.com/-- is a healthcare services provider, composed of locally managed facilities that include approximately 182 hospitals and 94 outpatient surgery centers in 22 states, England and Switzerland. At its founding in 1968, HCA was one of the nation's first hospital companies. INVERNESS MEDICAL: Noteholders Agree to Amend Sr. Bond Indenture ---------------------------------------------------------------- Inverness Medical Innovations Inc. has been advised by the depository for the tender offer and consent solicitation that, as of 5:00 p.m., New York City time, on June 11, 2007, holders of 100% of the outstanding Notes had validly tendered and not withdrawn their Notes and had provided their consents to effect the proposed amendments to the indenture under which the Notes were issued, in connection with its tender offer to purchase all of the outstanding US$150 million in aggregate principal amount of its 8.75% Senior Subordinated Notes due 2012, well as the related consent solicitations to amend the indenture governing the Notes. As a result of receiving the requisite consents, Inverness will promptly execute and deliver a supplemental indenture in order to effect the proposed amendments to the indenture governing the Notes. The supplemental indenture and the proposed amendments contained therein, will not, however, become operative unless and until Inverness accepts the Notes for purchase pursuant to the tender offer. Inverness also disclosed the total consideration for the Notes validly tendered in the tender offer. The total consideration will be US$1,061.95 for each US$1,000.00 principal amount of Notes purchased pursuant to the tender offer, plus accrued and unpaid interest up to, but not including June 26, 2007, the assumed payment date for the Notes. The total consideration includes a consent payment of US$20 per US$1,000 principal amount of Notes. Holders of the Notes who had validly tendered and not withdrawn their Notes pursuant to the tender offer at or prior to 5:00 p.m., New York City time, on June 11, 2007, will receive the consent payment if and when the Notes are accepted for payment by Inverness. Holders who tender their notes after 5:00 p.m., New York City time on June 11, 2007, the consent expiration time, but prior to midnight, New York City time on June 25, 2007, the tender offer expiration time, will only be eligible to receive the tender offer consideration of US$1,041.95. The total consideration and tender offer consideration were determined, based upon an expected payment date of June 26, 2007, by reference to a fixed spread of 50 basis points over the bid-side yield of the 3% U.S. Treasury Note due Feb. 15, 2008, which was 5.038%. The tender offer and consent solicitation were undertaken in order to facilitate Inverness's acquisition of Biosite Incorporated and related transactions. The tender offer remains conditioned upon, among other things, Inverness receiving new financing in an amount of at least US$1.3 billion and Inverness's purchase of shares of common stock of Biosite Incorporated pursuant to the tender offer for such shares made on May 29, 2007. Inverness has retained UBS Investment Bank to act as Dealer Manager in connection with the tender offer and consent solicitation. Questions about the tender offer and consent solicitation may be directed to the Liability Management Group of UBS Investment Bank at (888) 722-9555 x4210 (toll free), or to The Altman Group, Inc., the Information Agent for the tender offer and consent solicitation, at (800) 398-2142 (toll free). A more comprehensive description of the tender offer and consent solicitation can be found in the Offer to Purchase and Consent Solicitation and the related Letter of Transmittal and Consent dated May 29, 2007. Copies of these documents and other related documents can be obtained from the Information Agent. The tender offer is made only by the Offer to Purchase and Consent Solicitation dated May 29, 2007. About Inverness Medical Based in Waltham, Massachusetts, Inverness Medical Innovations, Inc. (AMEX:IMA) -- http://www.invernessmedical.com/-- develops, manufactures and markets in vitro diagnostic products for the over-the-counter pregnancy and fertility/ovulation test market and the professional rapid diagnostic test markets. The company has offices in Australia, Canada, China, Germany, Japan, and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter on April 30, 2007, Moody's Investors Service placed the ratings of Inverness Medical Innovations, Inc. on review for possible downgrade following the announcement that Inverness has entered into a merger agreement with Biosite Incorporated for US$90 a share for the remaining 95.3% of Biosite it does not currently own. These ratings were placed on review for possible downgrade: B2 Corporate Family rating; B2 Probability of Default rating; and Caa1 rating on US$150 million senior subordinated notes due 2012 (LGD5/82%). KAUFMAN & BROAD: Fitch Comments on 8.75% Senior Notes Tender ------------------------------------------------------------ Fitch Ratings says Kaufman & Broad SA's decision to tender for all of its outstanding EUR150 million 8.75% senior notes due 2009 signals the plan to restructure the balance sheet in line with a typical highly leveraged LBO capital structure. The tender offer follows the announcement on May 17, 2007 that PAI Partners ("will acquire a 50.01% stake in K&B from KB Home ('BB+'/Stable), pending customary approvals. A successful tender of more than 50% of the 2009 notes would negatively affect K&B's credit profile insofar that it removes certain restrictive covenants, such as the incurrence of debt and liens. Removal of these covenants would be important to achieving a leveraged recapitalization of K&B, which is likely to result in a multiple- notch downgrade of the IDR. While negative for the overall credit profile, the tender is likely to be a satisfactory development for noteholders of K&B's 2009 bond, who may avoid unplanned exposure to an LBO-type credit profile. However, the issue rating on the 2009 bonds remains on RWN until further clarity on refinancing is available. The tender offer period runs from June 7 until July 6, 2007. K&B's Issuer Default 'BBB-' rating, senior unsecured 'BBB-' rating on the EUR150 million 8.75% 2009 notes and Short-term 'F3' rating have been on Rating Watch Negative since May 17, 2007. This is based on Fitch's expectation that K&B's capital structure will be re-engineered once PAI completes the acquisition of its 50.01% stake, leading to a materially weaker credit profile at K&B. Fitch will seek to resolve the RWN on the IDR once PAI completes the acquisition of its 50.01% stake and further details of financing plans become available. The successful tender of the majority of the notes is unlikely on its own to lead to a resolution of the RWN on the IDR. K&B is a leading French house-builder, focusing on the construction and sale of single-family homes and apartments. It operates primarily in greater Paris (43% of FY06 revenues) and southern France (52%). As of first quarter of 2007 K&B's leverage, defined as adjusted net debt-to-last 12 months operating EBITDAR, equaled 0.9x, while funds from operations gross interest cover equaled 8.4x. STATS CHIPPAC: Moody's Lifts Rating to Ba1 on Good Performance -------------------------------------------------------------- Moody's Investors Service upgraded STATS ChipPAC's corporate family rating and foreign currency debt ratings to Ba1 from Ba2. This concludes the review for possible upgrade which began on March 1, 2007. The outlook for all the ratings is stable. "The rating upgrade reflects STATS ChipPAC's improved operating and financial profiles with continued free cash flow generation on the back of favorable industry fundamentals," says Wonnie Chu, lead analyst for STAT ChipPAC, adding "the company maintains its strong market position with a more diversified customer base." At the same time, the support level for STAT ChipPAC from its parent, Singapore Technologies Semiconductors Pte Ltd which is in turn 100%-owned subsidiary of Temasek, has also been changed to Medium from Low under Moody's joint default analysis for government related issuer. This follows the completion of the voluntary conditional cash offered by STS to buy the remaining shares and convertible subordinated notes due in 2008 of STATS ChipPAC. STS now owns 83.1% of STATS ChipPAC and US$134.5m of its convertible subordinated notes. The Ba1 rating take into account: (1) STATS ChipPAC's stand-alone credit fundamental, and (2) the likelihood of Temasek (rated Aaa/Stable), through STS, providing the company with credit support in a stress situation. Moody's ranks the company's underlying credit fundamental as "11-13" equivalent to Ba1-Ba3 on our global rating scale. This assessment reflects STATS ChipPAC's strong market position as the fourth largest player in the OSAT industry, its positive free cash flow generative status and sound debt maturity profile. At the same time, it also takes into account STATS ChipPAC's continued exposure to average sales price erosion and price fluctuations for raw materials, which are a major cost in the assembly process. Moody's overlays the company's stand-alone credit fundamental on a joint default analysis approach. That involves estimating the likelihood that in the event of pending failure by the company, Temasek - through STS - would step in and prevent a default. The medium support reflects STATS ChipPAC's importance within Temasek, which through STS, owns 83.1% of STATS ChipPAC's issued shares. The ratings could experience upward pressure if: (1) a track record emerges of maintaining profitability and achieving projected results over the semiconductor cycle; (2) an ability to generate free cash flow for permanent debt reduction emerges, such that total debt/total cap < 25% and (EBITDA-Capex)/Int > 4.5-5.0x on a sustained basis; and (3) cash holdings are built up and strong balance sheet liquidity is maintained to provide a buffer against industry cyclicality. In addition, evidence of financial support from Temasek would be positive for the rating as it would improve the support level. On the other hand, downward ratings pressure could evolve if: (1) asset utilization falls, reducing profitability and cash flow-generating abilities; (2) an industry downturn emerges, and which materially impairs the company's debt-servicing ability; or (3) its balance sheet gears up due to a large capital expenditure or investment program, such that total debt/total cap > 40% and (EBITDA-Capex)/Int < 1.5-2.0x over the cycle. Furthermore, a significant reduction in STS's controlling stake which weakens the support level, a scenario is considered unlikely in the near term, would be negative for the rating. STATS ChipPAC Ltd is a back-end semiconductor assembly and test company. It provides full-turnkey solutions to semiconductor businesses, including foundries, integrated device manufacturers and fabless companies in the U.S., Europe and Asia. It ranked fourth in the global outsourcing semiconductor assembly and test industry as of end-2006. In fiscal year 2006, packaging revenue accounted for 74% of sales, and test and other revenues the balance. The communications segment accounted for 57% of sales. The company's offices outside the United States are located in South Korea, Singapore, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom. ********* 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. 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