/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070629.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, June 29, 2007, Vol. 8, No. 128 Headlines A U S T R I A BRILLENGALERIE SCHRENK: Claims Registration Period Ends July 9 FUERNSINN LLC: Claims Registration Period Ends July 5 GEIZHAUS LLC: Claims Registration Period Ends July 5 H & H LLC: Claims Registration Period Ends July 18 VALKOTEL KLEMENT: Administrator Declares Insufficient Assets WEINHAUS KAISERGARTEN: Claims Registration Period Ends July 2 B E L G I U M GENERAL MOTORS: Offers 0% Financing for 3 Years on Select Cars GENERAL MOTORS: Goldman Sachs Raises Ratings to Buy on Wage Cuts GENERAL MOTORS: Moody's Says Agreement is Good for Auto Industry C Y P R U S RITZIO ENT: Gaming Laws May Prompt Moody's to Cut B2 Rating F R A N C E AEROFLEX INC: Moody's Rates Corporate Family Rating at B3 DELPHI CORP: Moody's Says Deal with UAW-GM is Good for Industry LBC HOLDINGS: S&P Withdraws Junk Ratings on Full Bond Redemption RHODIA SA: AMF Unit Releases Investigation Results G E R M A N Y CUXHAVENER EINRICHTUNGS: Claims Registration Period Ends Aug. 16 FAVOUR 8 AG: Claims Registration Period Ends October 5 GEDI – GESELLSCHAFT: Claims Registration Period Ends Aug. 21 KIRCHMEIER & BRUECK: Claims Registration Period Ends August 24 ON SEMICONDUCTOR: Opens Solutions Engineering Center in Germany SCHIEDER MOEBEL: Files for Insolvency After Takeover Talks Fail SECURENTA GOETTINGER: Claims Registration Period Ends Sept. 20 SUPRESTA LLC: Israel Chemicals Deal Cues Moody's Ratings Review UNIT ENERGY: Claims Registration Period Ends August 1 I R E L A N D NORTHCORE TECH: March 31 Equity Deficit Tops CDN$2.6 Million TRIAD HOSPITALS: Extends Senior Notes Pricing Date Until July 16 I T A L Y ALITALIA SPA: AP Holding Seeks Valuation to Boost Bid ALITALIA SPA: OAO Aeroflot Pulls Out from Bidding Race PARMALAT SPA: Capitalia Sells 5.1% Stake for EUR266 Million PIAGGIO & C. SPA: Profits Cue S&P to Lift Rating to BB K A Z A K H S T A N AKMIN LLP: Claims Filing Period Ends August 3 CAMILLA LLP: Claims Registration Ends August 1 DJUS LLP: Creditors Must File Claims August 3 DOSTYK LLP: Creditors' Claims Due August 3 FILCOMPANY LLP: Proof of Claim Deadline Slated for Aug. 3 JANCOM-BB LLP: Creditors Must File Claims August 3 KYZMET-SERVICE 1: Claims Filing Period Ends August 1 ONER JSC: Proof of Claim Deadline Slated for August 3 SEVER-GAS JSC: Claims Registration Ends August 3 K Y R G Y Z S T A N ASIA EXCLUSIVE: Claims Filing Period Ends August 15 PARK & OPC: Creditors Must File Claims by August 10 L A T V I A NORVIK BANKA: Moody's Assigns Ba3 Long-Term Bank Deposit Rating L U X E M B O U R G BASELL AF: Acquisition Plan Cues S&P to Put BB- Ratings on Watch BASELL AF: Fitch Puts BB- IDR on Watch Negative on Takeover News N E T H E R L A N D S GLOBAL POWER: Creditors' Committee Wants to File Competing Plan SYNIVERSE TECHNOLOGIES: To Raise US$489 Mln of Credit Facilities X5 RETAIL: Gets US$1 Billion Loan to Refinance Debt R O M A N I A TELEMOBIL SA: Moody's Assigns Corporate Family Rating at B3 R U S S I A ANGAR-STORY OJSC: Asset Sale Slated for July 16 BEL-MOR-WOOD-PROM: Creditors Must File Claims by Aug. 2 GLAV-STROY-MONOLITH: Creditors Must File Claims by Aug. 2 HYDROSPETSSTROY: Property Inventory is Complete, Trustee Says IZNAIR LLC: Creditors Must File Claims by Aug. 2 KANTAUROVSKOYE OJSC: Bankruptcy Hearing Slated for Sept. 25 KHALILOVSKIY ORE: Creditors Must File Claims by Aug. 2 L-AUTO CJSC: Court Names I. Volkov as Insolvency Manager NOVIK CJSC: Tyumen Bankruptcy Hearing Slated for Aug. 23 OIL-PROM-SERVICE: Bankruptcy Hearing Slated for July 23 OMEGA LTD: Creditors Must File Claims by Aug. 2 PRODEKS CJSC: Court Names I. Starichkov as Insolvency Manager ROSNEFT OIL: Yukos Pays RUR237 Billion Debt From Sale Proceeds ROSNEFT OIL: Neft-Aktiv Unit Buys Yukos Oil's Krasnodar Assets ROSNEFT OIL: Unit Buys Yukos' Retail Chain from LLC Unitex ROSNEFT OIL: Pegs 2007 Oil Output at Over 100 Million Tons SIBIR-WOOD LLC: Names S. Shkarovskaya as Insolvency Manager SIBERIAN STOCKINET: Asset Sale Slated for July 19 SITRONICS JSC: Incurs US$28 Mln Net Loss in First Quarter 2007 SPRAKS CJSC: Court Names S. Piskarev as Insolvency Manager STEEL-MOUNTING OJSC: Bankruptcy Hearing Slated for Nov. 13 TNK-BP HOLDING: Commission Warns Against License Cancellation TRANSCAPITALBANK JSC: Moody's Rates Subordinated Debt at B2 VOSTOK-AGRO-PRODUCT: Court Starts Bankruptcy Supervision Process YUKOS OIL: Pays RUR237 Billion Rosneft Debt From Sale Proceeds YUKOS OIL: Rosneft Oil's Neft-Aktiv Arm Buys Krasnodar Assets S P A I N AYT GENOVA: Fitch Rates EUR14.7 Mln Notes Class D Notes at BB BANCAJA 11: Moody's Junks EUR26/22.9 Million Series E Notes MADRID RMBS: Moody's Rates EUR52.5 Mln Series E Notes at (P)Ba3 S W I T Z E R L A N D AUTO SCHLEGEL: Creditors' Liquidation Claims Due July 13 CONARC LLC: Creditors' Liquidation Claims Due July 16 GIRTAG JSC: Creditors' Liquidation Claims Due July 11 INTERBUY (INTERNATIONAL): Liquidation Claims Due July 11 SWISSEC JSC: Creditors' Liquidation Claims Due July 11 U K R A I N E ALASKA LLC: Creditors Must File Claims by July 1 CHERKASSY INDUSTRIAL-BUILDING: Claims Filing Deadline Set July 1 EDITION HOUSE: Creditors Must File Claims by July 1 FOXCOM BREWERY: Claims Filing Deadline Set July 1 GEON LLC: Claims Filing Deadline Set July 1 ISKRA CJSC: Claims Filing Deadline Set July 1 MALI LANKY: Claims Filing Deadline Set July 1 PIT-PLUS LLC: Claims Filing Deadline Set July 1 SELECTION GENETICAL: Claims Filing Deadline Set July 1 TDM LLC: Claims Filing Deadline Set July 1 XXI CENTURY: Claims Filing Deadline Set July 1 VSEUKRAINSKY AKTSIONERNY: Fitch Rates Credit Suisse Loan at B- ZITTMANN LLC: Claims Filing Deadline Set July 1 U N I T E D K I N G D O M ALFRED MCALPINE: Recovery Plan on Track, Chairman Says BARE FACE: Names Roderick Julian Jones Liquidator BATH TAXIS: Hires Liquidator from Rendell Thompson BLUEMOUNTAIN EURO: S&P Rates Class E Notes at BB- BOMFORDS GROUP: Appoints Joint Administrators from Deloitte BRACKENHILL HOMES: Brings In Liquidators from Buchanans CLIMATE CONTROL: Appoints Michael Sutcliffe as Liquidator COMPLETE BUILDING: Calls In Liquidator from Bishop Fleming DPS COMPOSITES: Hires Liquidator from Mazars ENVELOPE SPRINT: Names Liquidator to Wind Up Business GOLDING DEVELOPMENTS: Taps Lloyd Biscoe to Liquidate Assets GSPK ELECTRONICS: Joint Administrators from KPMG GUTHRIE MOTORS: Keith Barry Stout Leads Liquidation Procedure H & J GLASS: Brings In Liquidators from Begbies Traynor INNOVATIVE WASTE: Neil Chesterton Leads Liquidation Procedure ISOFT GROUP: FSA Mulls Ex-Torex Chairman as Scandal Witness JDI PROPERTY: Taps Liquidators from Begbies Traynor JUST USA: Hires Lane Bednash to Liquidate Assets KINGDOM FORMWORK: Calls In Liquidator from Marriotts MITEL NETWORKS: April 30 Equity Deficit Tops US$202.6 Million OPTIMISTIC ENTERTAINMENT: Goes Into Administration SOLERA HOLDINGS: Posts US$9.6 Mln Net Loss in Qtr. Ended Mar. 31 TITAN EUROPE: S&P Keeps Class F Notes on CreditWatch Negative TITAN EUROPE: Fitch Puts BB- Ratings to Class G Notes VIRAGEN INC: Halts Development of Avian Transgenic Technology WOOD04 LTD: Joint Liquidators Take Over Operations YELLOW FINANCE: Appoints Mark S. Reynolds as Liquidator * BOOK REVIEW: As We Forgive Our Debtors: Bankruptcy and Consumer Credit in America ********* ============= A U S T R I A ============= BRILLENGALERIE SCHRENK: Claims Registration Period Ends July 9 ------------------------------------------------------------- Creditors owed money by LLC Brillengalerie Schrenk (FN 261657s) have until July 9 to file written proofs of claim to court- appointed estate administrator Dagmar Hoppstadter at: Mag. Dagmar Hoppstadter Pichler Strasse 1 4623 Gunskirchen Austria Tel: 07246/8673-0 Fax: 07246/8673-14 E-mail: office@kaiblinger.rakanzlei.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on July 19 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria-Theresia-Strasse 12 Wels Austria Headquartered in Schwanenstadt, Austria, the Debtor declared bankruptcy on May 31 (Bankr. Case No. 20 S 70/07f). FUERNSINN LLC: Claims Registration Period Ends July 5 ----------------------------------------------------- Creditors owed money by Fuernsinn LLC Pleiba (FN 34771i) have until July 5 to file written proofs of claim to court-appointed estate administrator Edmund Kitzler at: Dr. Edmund Kitzler Stadtplatz 43 3950 Gmuend Austria Tel: 02852/51935 Fax: 02852/51937 E-mail: dr.kitzler@wvnat.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:30 p.m. on July 25 for the examination of claims. The meeting of creditors will be held at: The Land Court of Krems an der Donau Hall A Second Floor Krems an der Donau Austria Headquartered in Gmuend, Austria, the Debtor declared bankruptcy on May 31 (Bankr. Case No. 9 S 31/07t). GEIZHAUS LLC: Claims Registration Period Ends July 5 ---------------------------------------------------- Creditors owed money by LLC GeizHaus (FN 277734h) have until July 5 to file written proofs of claim to court-appointed estate administrator Alois Autherith at: Dr. Alois Autherith Utzstrasse 13 3500 Krems Austria Tel: 02732/83485 Fax: 02732/83485-10 E-mail: advoc.autham@netway.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on July 25 for the examination of claims. The meeting of creditors will be held at: The Land Court of Krems an der Donau Hall A Second Floor Krems an der Donau Austria Headquartered in Mautern, Austria, the Debtor declared bankruptcy on May 31 (Bankr. Case No. 9 S 32/07i). H & H LLC: Claims Registration Period Ends July 18 -------------------------------------------------- Creditors owed money by LLC H & H (FN 246746m) have until July 18 to file written proofs of claim to court-appointed estate administrator Viktor A.M. Igali-Igalffy at: Dr. Viktor A.M. Igali-Igalffy c/o Mag. Petra Diwok Landstrasser Hauptstrasse 34 1030 Vienna Austria Tel: 713 80 57 Fax: 713 07 76 E-mail: vii@igali-igalffy.eu Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Aug. 1 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 31 (Bankr. Case No. 4 S 61/07h). Petra Diwok represents Dr. Igali-Igalffy in the bankruptcy proceedings. VALKOTEL KLEMENT: Administrator Declares Insufficient Assets ------------------------------------------------------------ Dr. Thomas Hufnagl, the court-appointed estate administrator for KEG Valkotel Klement (FN 236391i), declared May 31 that the Debtor's property is insufficient to cover creditors' claim. The Land Court of Salzburg is yet to rule on the estate administrator's claim. Headquartered in Mattsee, Austria, the Debtor declared bankruptcy on May 21 (Bankr. Case No. 23 S 38/07v). The estate administrator can be reached at: Dr. Thomas Hufnagl Dr.-Franz-Rehrl-Platz 2 5020 Salzburg Austria Tel: 0662/640083 Fax: 0662/642912-24 E-mail: dr.thomas.hufnagl@rechtsanwaelte.co.at WEINHAUS KAISERGARTEN: Claims Registration Period Ends July 2 ------------------------------------------------------------- Creditors owed money by LLC Weinhaus Kaisergarten (FN 159718f) have until July 2 to file written proofs of claim to court- appointed estate administrator Michael Wagner at: Mag. Michael Wagner Untere Hauptstrasse 52 7100 Neusiedl am See Austria Tel: 02167/3503 Fax: 02167/8825 E-mail: neusiedl@hajek-partner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on July 16 for the examination of claims. The meeting of creditors will be held at: The Land Court of Eisenstadt Hall F Eisenstadt Austria Headquartered in Moenchhof, Austria, the Debtor declared bankruptcy on May 31 (Bankr. Case No. 26 S 70/07g). ============= B E L G I U M ============= GENERAL MOTORS: Offers 0% Financing for 3 Years on Select Cars -------------------------------------------------------------- General Motors disclosed the “Transform Your Ride Sale,” tied to the July 4 holiday release of DreamWorks Pictures and Paramount Pictures’ live-action film “Transformers” from Executive Producer Steven Spielberg and Director Michael Bay, opening July 3, 2007. The “Transform Your Ride Sale” offers a qualified buyer 0% annual percentage rate for 36 months –- plus $1,000 cash -– on select Chevrolet, Buick, Pontiac and GMC vehicles. The “Transform Your Ride Sale” runs June 26 through July 9, 2007. “People who have recently switched to a GM vehicle tell us we’ve really changed their previous perceptions about our products,” Jim Campbell, GM’s director of Customer Relationship Management, said. “They love their new car or truck. We’ve enhanced the value of our cars and trucks with features like OnStar, XM Radio, superior quality and the best coverage in the business with a 5-year/ 100,000 mile powertrain warranty plus roadside assistance and courtesy transportation. Just look at the award- winning Chevrolet Silverado or hot HHR. The “Transform Your Ride Sale” gives everyone the opportunity to buy a new car or truck with outstanding style, great fuel economy, performance and value.” Saturn will continue its innovative “Side by Side by Side” campaign and will be offering bonus cash on select models. Cadillac, Hummer and Saab also will continue to offer attractive deals on select models in their lineups. Eligible Vehicles List * Chevrolet: 2006 and 2007 Cobalt, Monte Carlo, Impala, HHR, TrailBlazer, Tahoe, Suburban, Avalanche and 2007 900-series Silverado * Buick: 2006 and 2007 Lacrosse, Lucerne and Rainier * Pontiac: 2006 and 2007 G5, G6, Grand Prix and Torrent * GMC: Envoy, Yukon, Yukon Denali, Yukon XL, Yukon XL Denali and 2007 900-series Sierra About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. I t has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative. GENERAL MOTORS: Goldman Sachs Raises Ratings to Buy on Wage Cuts ---------------------------------------------------------------- Goldman Sachs Group, Inc. has upgraded General Motors Corp.'s ratings to "buy" from "neutral," citing the potential for sizable wage and benefit cuts during negotiations with the United Auto Workers for a new labor contract, Reuters reports. The firm also increased the 52-week price target on the stock to US$42 from US$29. The automaker's shares rose to a four-month high on Monday as a result of the upgrade, Reuters reveals. The TCR-Europe reported on June 19, 2007, that General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group are seeking unprecedented concessions from the United Auto Workers union in a bid to narrow what they say is a US$30-an- hour labor-cost disadvantage against Asian rivals like Toyota Motor Corp. and Honda Motor Co. "GM can make a compelling case to UAW members that material wage and benefit cuts are needed," Goldman Sachs analyst Robert Barry said in a research note. "And we suspect members and retirees are increasingly amenable to such cuts." He added that the "UAW pattern bargaining implies positive read across for Ford," Reuters notes. According to Reuters, GM shares were up 3.2 percent, or US$1.12, at US$36.58 in early trading on the New York Stock Exchange after reaching a session high of US$36.84. Ford shares were up 1.8 percent, or 16 cents, at US$9.29. Monday's gains pushed GM's stock to its highest level since Feb 20, 2007. The stock has increased 23 percent in the last two weeks. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative. GENERAL MOTORS: Moody's Says Agreement is Good for Auto Industry ---------------------------------------------------------------- The announcement of a tentative agreement between Delphi Corporation, the United Automobile Workers, and General Motors Corporation covering Delphi's labor contract in North America represents a constructive development in the automotive industry in North America. While the specifics of the agreement are not publicly disclosed, Moody's believes the agreement should help reposition Delphi with a more competitive cost structure in the region, facilitate lower cost parts for GM, and remove a near-term threat to industry production volumes. However, it is not the only threat on the horizon. Moody's does not anticipate any immediate ratings impact for suppliers or original equipment manufacturers (Delphi is not a monitored rating). If ratified by the UAW membership, Delphi would achieve a more competitive cost structure and become a more viable competitor in those sectors it has identified as its core focus that have a continuing U.S. presence. Through establishing greater certainty to its labor arrangements, financial valuations of Delphi are likely to be enhanced and accelerate plans for its emergence from bankruptcy. Similarly, by establishing a lower cost structure in its business units, many of which are designated as non-core, plans to dispose of certain Delphi operations are more likely to move forward. Agreements to sell several units have previously been announced, subject to court approval. For the broader supplier industry, the announcement also removes a level of uncertainty. The risks of disruption to production volumes of GM and other OEMs from Delphi related issues should ease assuming the tentative agreement were approved by Delphi's UAW membership. However, the converse would also be true if the agreement was not ratified. Moreover, labor contracts between the UAW and the Big Three are set to expire on September 14, 2007, and negotiations for a new contract have yet to formally begin. In the short term, should those negotiations be unfruitful and result in work stoppages, OEM production could be disrupted and adversely affect the broader supply chain. In the long term, the terms and conditions of a new master agreement are a critical factor to the structural competitiveness and financial viability of the Big Three. The proposed agreement is a constructive development for General Motors in that it lessens the risk of a disruption in component delivery from its major domestic supplier. In combination with the Delphi employee buyouts that have already been funded by GM, the agreement would also help to narrow the current $2 billion cost disadvantage that GM incurs on components currently supplied by Delphi. Moreover, Moody's believes that any subsidy by GM of the Delphi-UAW wage package will not be material relative to the amount of funds already devoted to the employee buyout program and relative to the OEM's substantial liquidity position. Notwithstanding these positive developments, the major near-term challenge facing the Big Three is the need to successfully negotiate a new UAW contract later this year that afford the U.S. OEMs material relief in the areas of health care costs and work rules. Progress in these areas will be critical to their ability to establish a more competitive domestic cost structure. "Ultimately, this agreement coupled with a new master agreement between the UAW and the OEMs could create a more stable operating environment for all suppliers and enhance their prospects. It also could lead to an increase in merger and acquisition activity at parts suppliers involving both private equity and strategic buyers " said Ed Wiest, VP & Senior Analyst at Moody's. "Of course, the structure of any transaction would be subject to market conditions, available financing and would determine the direction of any rating outcome" he continued. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. I t has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative. =========== C Y P R U S =========== RITZIO ENT: Gaming Laws May Prompt Moody's to Cut B2 Rating ----------------------------------------------------------- Moody's Investors Service placed the B2 corporate family rating of Ritzio Entertainment Group on review for possible downgrade. Concurrently, Moody's Interfax Rating Agency placed the company's A3.ru national scale rating on review for possible downgrade. Moscow-based Moody's Interfax is majority-owned by Moody's, a leading global rating agency. According to Moody's and Moody's Interfax, the rating review has been prompted by the recent indications that the new gaming legislation enacted in Russia in December 2006 has had a more immediate and more adverse impact than previously expected and could therefore prove more detrimental to the company's Russian operations than Moody's had originally factored into its ratings. The St. Petersburg region and 54 other regional authorities are highly likely to ban gambling activities either completely or partially as from July 1, 2007 or Jan. 1, 2008 - significantly earlier than the previously indicated date of July 1, 2009. Moody's expects to have greater clarity on the situation in the coming weeks and will undertake to assess the implications of such developments for the company's ratings as soon as possible. Ritzio derives around 85% of its revenues from Russia and approximately half of EBITDA is contributed by the Moscow and St. Petersburg markets. Moody's notes that the company's international operations should not be impacted by the new legislation, but these represent only 15% of total revenues. Headquartered in Cyprus, Ritzio Entertainment Group is a leading gaming company with operations predominantly in Russia, as well 10 other countries including the neighboring Ukraine, Kazakhstan, Belarus, the Baltic States, and several countries in Europe and Latin America. For the financial year 2007, Ritzio reported revenues of US$1.172 billion and unadjusted EBITDA of US$485 million. =========== F R A N C E =========== AEROFLEX INC: Moody's Rates Corporate Family Rating at B3 --------------------------------------------------------- Moody's Investors Service assigned first-time ratings to Aeroflex Incorporated (corporate family rating of B3 and speculative grade liquidity rating of SGL-2) and a positive outlook. A newly formed entity, AX Holding Corp., will acquire all of the outstanding shares of Aeroflex, a publicly traded microelectronics and test and measurement provider that will continue as a private company. Net proceeds from the $500 million first lien term loan and $60 million first lien revolver together with $370 million senior subordinated notes will be used to finance Aeroflex's $1.242 billion buyout in a highly leveraged transaction. The buyout, which is subject to shareholder approval, also consists of a $372 million cash equity investment from a consortium of private equity sponsors (Veritas Capital, Golden Gate Capital and GS Direct). The assigned ratings are subject to review of final documentation and no material change in the terms and conditions of the transaction as advised to Moody's. The B3 corporate family rating reflects the company's: * very high financial leverage of 7.3x debt/normalized EBITDA and weak credit protection measures following the leveraged buyout; * modest footprint and limited asset protection from a small base of pro forma tangible assets; * potentially increasing competition longer-term from larger and well capitalized companies; * exposure to aerospace and defense electronics end markets, which could experience changes in procurement policies or the types of products sourced by the government; and * historic money losing radar unit and break even synthetic test business. The rating also takes into account Moody's hybrid security treatment for the $372 million of sponsor preferred equity in which 25% of the preferred stock is treated as debt-like and 75% is treated as equity-like. As such, Moody's adjustments incorporate the commensurate increase in debt, equity and interest expense on Aeroflex's balance sheet and income statement. The rating also considers Aeroflex's leading market position as the primary or sole source provider in niche markets, strong intellectual property portfolio with proprietary technology, highly visible and diversified revenue base with no specific defense platform exposure, relatively stable competitive landscape, mission-critical nature of its products with high switching costs resulting in stable gross margins approaching 50% and consistent operating profitability and positive free cash flow generation. The B3 CFR also considers Moody's expectation that Aeroflex's operating performance will benefit from a broadening of applications from existing technologies, the secular outsourcing trend from primary contractors and increasing dollar content as the company moves up the value chain in the satellite and medical platforms. Aeroflex is expected to be moderately free cash flow positive over the near term. As such, Moody's does not expect the company to substantially repay debt over the next 12 months. Nonetheless, the positive outlook reflects the potential for moderate improvement in financial leverage and interest coverage metrics based on improved visibility into fiscal 2008 revenues. This is anticipated to be driven by Aeroflex's strong market position, "designed-in" chips and testing applications with long life cycles, relatively stable operating cash flows even during recessionary episodes, fabless semiconductor business model and attractive industry dynamics, offset by the money losing radar business and potentially increasing competition. The ratings for the first lien facility and the subordinated notes reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B3, and a loss given default of LGD-2 for the first lien and LGD-5 for the subordinated notes. The B1 rating of the first lien senior secured credit facility reflects its senior position in Aeroflex's capital structure, full guarantees of existing and future wholly-owned domestic subsidiaries, an all asset pledge, and a significant amount of junior debt and other unsecured obligations such as leases in the capital structure. The Caa2 rating of the subordinated notes reflects their contractual subordination to all first lien senior secured creditors and full guarantees of existing and future wholly- owned domestic subsidiaries on an unsecured basis. These first time ratings were assigned: -- Corporate Family Rating: B3 -- Probability of Default Rating: B3 -- $60 Million Senior Secured First Lien Revolver due 2013: B1 (LGD-2, 27%) -- $500 Million Senior Secured First Lien Term Loan due 2014: B1 (LGD-2, 27%) -- $370 Million Senior Subordinated Notes due 2017: Caa2 (LGD-5, 83%) -- Speculative Grade Liquidity Rating - SGL-2 The ratings outlook is positive. Headquartered in Plainview, NY, Aeroflex Inc. is a specialty provider of microelectronics and test and measurement products to the aerospace, defense, wireless, broadband and medical markets. For the twelve months ended March 31, 2007, revenues were $577 million. Aeroflex has offices in China, France and Germany. It also sells in Argentina. DELPHI CORP: Moody's Says Deal with UAW-GM is Good for Industry --------------------------------------------------------------- The announcement of a tentative agreement between Delphi Corporation, the United Automobile Workers, and General Motors Corporation covering Delphi's labor contract in North America represents a constructive development in the automotive industry in North America. While the specifics of the agreement are not publicly disclosed, Moody's believes the agreement should help reposition Delphi with a more competitive cost structure in the region, facilitate lower cost parts for GM, and remove a near-term threat to industry production volumes. However, it is not the only threat on the horizon. Moody's does not anticipate any immediate ratings impact for suppliers or original equipment manufacturers (Delphi is not a monitored rating). If ratified by the UAW membership, Delphi would achieve a more competitive cost structure and become a more viable competitor in those sectors it has identified as its core focus that have a continuing U.S. presence. Through establishing greater certainty to its labor arrangements, financial valuations of Delphi are likely to be enhanced and accelerate plans for its emergence from bankruptcy. Similarly, by establishing a lower cost structure in its business units, many of which are designated as non-core, plans to dispose of certain Delphi operations are more likely to move forward. Agreements to sell several units have previously been announced, subject to court approval. For the broader supplier industry, the announcement also removes a level of uncertainty. The risks of disruption to production volumes of GM and other OEMs from Delphi related issues should ease assuming the tentative agreement were approved by Delphi's UAW membership. However, the converse would also be true if the agreement was not ratified. Moreover, labor contracts between the UAW and the Big Three are set to expire on September 14, 2007, and negotiations for a new contract have yet to formally begin. In the short term, should those negotiations be unfruitful and result in work stoppages, OEM production could be disrupted and adversely affect the broader supply chain. In the long term, the terms and conditions of a new master agreement are a critical factor to the structural competitiveness and financial viability of the Big Three. The proposed agreement is a constructive development for General Motors in that it lessens the risk of a disruption in component delivery from its major domestic supplier. In combination with the Delphi employee buyouts that have already been funded by GM, the agreement would also help to narrow the current $2 billion cost disadvantage that GM incurs on components currently supplied by Delphi. Moreover, Moody's believes that any subsidy by GM of the Delphi-UAW wage package will not be material relative to the amount of funds already devoted to the employee buyout program and relative to the OEM's substantial liquidity position. Notwithstanding these positive developments, the major near-term challenge facing the Big Three is the need to successfully negotiate a new UAW contract later this year that afford the U.S. OEMs material relief in the areas of health care costs and work rules. Progress in these areas will be critical to their ability to establish a more competitive domestic cost structure. "Ultimately, this agreement coupled with a new master agreement between the UAW and the OEMs could create a more stable operating environment for all suppliers and enhance their prospects. It also could lead to an increase in merger and acquisition activity at parts suppliers involving both private equity and strategic buyers " said Ed Wiest, VP & Senior Analyst at Moody's. "Of course, the structure of any transaction would be subject to market conditions, available financing and would determine the direction of any rating outcome" he continued. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. LBC HOLDINGS: S&P Withdraws Junk Ratings on Full Bond Redemption --------------------------------------------------------------- Standard & Poor's Ratings Services has withdrawn its 'B' long- term corporate credit rating on France-based liquid chemical products storage company LBC Holdings LLC, following the successful change of ownership and subsequent full bond redemption. At the same time, Standard & Poor's also withdrew its 'CCC+' subordinated debt rating on LBC's guaranteed subsidiary. In April 2007, a consortium led by Challenger Infrastructure Fund agreed to buy LBC for an enterprise value of EUR565 million, translating into higher debt for LBC. CIF, which owns 66% of LBC, is an investment vehicle oriented toward utility and infrastructure assets and is listed on the Australian Securities Exchange. With 2006 sales of EUR130 million, EBITDA of EUR50 million, and 600 employees, LBC rents tanks used to store liquid chemicals at 12 terminals located in key petrochemical ports in Europe and the U.S. Roughly 80% of revenues derive from capacity rents (fixed fee) and "throughput" traffic (volume based). The remainder stems from related basic services. Top clients are major oil, gas, and chemicals companies. About LBC Tank Terminals Headquartered in Paris, France, LBC Tank Terminals -- http://www.lbctt.com/-- operates over 2.2 million cubic meters of storage capacity at 12 port locations throughout Western Europe and the Unites States of America. LBC is the world's second largest chemical tank storage company. The group also provides additional value added services for its customers. LBC has a new site under construction in Antwerp, Belgium, and major expansion projects at its terminals in Lisbon, Portugal and in Houston and Baton Rouge, the United States. RHODIA SA: AMF Unit Releases Investigation Results -------------------------------------------------- The Commission des Santions, a unit of the French securities regulator, the Autorite des Marches Financiers, released findings on its investigation into certain financial issues at Rhodia S.A. dating back to 2001 to 2003. The commission rejected the complaints concerning the valuation of Chirex in 2002 and 2003 and the necessity to depreciate the related goodwill at the end of the first half of 2003. It found that Rhodia's disclosures in October 2003 were inadequate with regard to one specific issue relating to that business. The complaint relating to cash flow was rejected. The commission also rejected the complaint regarding the disclosures of environmental risks. The commission found that Yves-Rene Nanot, currently chairman of Rhodia's board and former chairman of the board's audit committee, did not violate any AMF rules. The Commission des Sanctions however upheld: -- the complaint concerning disclosure of the Group's debt in the years 2001 to 2003; and -- the complaint concerning omission of the depreciation of deferred tax assets as of June 30, 2003. Rhodia stated that this depreciation was recorded on December 31, 2003. Based on its findings, the Commission imposed a fine on Rhodia of EUR750,000. "With this decision, a page of Rhodia's history has been turned. I want to emphasize the importance I attach to the quality and transparency of the Group's financial communications," Rhodia CEO Jean-Pierre Clamadieu stated. About Rhodia Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. The group generated sales of EUR4.8 billion in 2006 and employs around 16,000 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. The company has operations in Brazil. * * * As reported in the TCR-Europe on April 26, 2007, Fitch Ratings affirmed Rhodia S.A.'s Issuer Default Rating at BB- and revised the Outlook to Positive from Stable. Fitch has assigned Rhodia SA's proposed issue of up to EUR595.125 million bonds convertible and/or exchangeable for new and/or existing shares an expected 'BB-' rating. As reported in the TCR-Europe on April 23, 2007, Moody's Investors Service upgraded Rhodia S.A. corporate family rating to Ba3 and assigned Probability-of-Default rating for the group at Ba3; Moody's also upgraded senior secured notes at Rhodia S.A. to B1 and assigned LGD assessment at LGD4 (69%). The proposed convertible notes are rated (P)B1, LGD4 (69%). These ratings are affected: -- Corporate Family Ratings upgraded to Ba3; -- Probability-of-Default assigned at Ba3; -- Rhodia S.A. Senior Unsecured ratings upgraded to B1, LGD4 (69%); and -- Rhodia S.A. Senior convertible notes rated (P)B1, LGD4 (69%). Standard & Poor's Ratings Services raised its long-term corporate credit rating on Rhodia to BB- from B+, and its long- term debt rating on the group to B from B-. At the same time, Standard & Poor's assigned its B senior unsecured debt rating to Rhodia's proposed new bond, which will be used for refinancing purposes. ============= G E R M A N Y ============= CUXHAVENER EINRICHTUNGS: Claims Registration Period Ends Aug. 16 ---------------------------------------------------------------- Creditors of Cuxhavener Einrichtungs- und Vermietungsgesellschaft mbH have until Aug. 16 to register their claims with court-appointed insolvency manager Philip Schober. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 13, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cuxhaven Hall 112 Old Building Deichstr. 12 A 27472 Cuxhaven 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: Philip Schober Martinistr. 47/49 28195 Bremen Germany Tel: 0421 95791-0 Fax: 0421 95791-11 The District Court of Cuxhaven opened bankruptcy proceedings against Cuxhavener Einrichtungs- und Vermietungsgesellschaft mbH on June 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cuxhavener Einrichtungs- und Vermietungsgesellschaft mbH Nordfeldstrasse 16-20 27476 Cuxhaven Germany Attn: Angelika Hennes, Manager Frank-Wedekind-Strasse 5 27474 Cuxhaven Germany FAVOUR 8 AG: Claims Registration Period Ends October 5 ------------------------------------------------------ Creditors of Favour 8 AG have until Oct. 5 to register their claims with court-appointed insolvency manager Holger Lessing. Creditors and other interested parties are encouraged to attend the meeting at 8:40 a.m. on Oct. 30, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Main) Hall 2 Building F Klingerstrasse 20 60313 Frankfurt (Main) Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Holger Lessing Hanauer Landstrasse 287-289 D 60314 Frankfurt (Main) Germany Tel: 069/15051300 Fax: 069/15051400 The District Court of Frankfurt (Main) opened bankruptcy proceedings against Favour 8 AG on June 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Favour 8 AG Lyoner Strasse 34 60528 Frankfurt (Main) Germany GEDI – GESELLSCHAFT: Claims Registration Period Ends Aug. 21 ------------------------------------------------------------ Creditors of gedi - Gesellschaft fuer Dienstleistungen mbH have until Aug. 21 to register their claims with court-appointed insolvency manager Winfrid Andres. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on Sept. 21, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 Second Floor Gerichtsplatz 1 44135 Dortmund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Winfrid Andres Neuer Zollhof 3 40221 Duesseldorf Germany The District Court of Dortmund opened bankruptcy proceedings against gedi - Gesellschaft fuer Dienstleistungen mbH on June 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: gedi - Gesellschaft fuer Dienstleistungen mbH Franziusstr. 6 44147 Dortmund Germany Attn: Rolf Grosser, Manager Hagener Str. 34 b 44225 Dortmund Germany KIRCHMEIER & BRUECK: Claims Registration Period Ends August 24 -------------------------------------------------------------- Creditors of Kirchmeier & Brueck Architekten BDA Planungsgesellschaft mbH have until Aug. 24 to register their claims with court-appointed insolvency manager S. Nolte. Creditors and other interested parties are encouraged to attend the meeting at 1:30 p.m. on Sept. 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Erfurt Hall 6 Judicial Center Rudolfstr. 46 99092 Erfurt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: S. Nolte Peterstrasse 5 99084 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against Kirchmeier & Brueck Architekten BDA Planungsgesellschaft mbH on June 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kirchmeier & Brueck Architekten BDA Planungsgesellschaft mbH Marktstrasse 14 99423 Weimar Germany ON SEMICONDUCTOR: Opens Solutions Engineering Center in Germany --------------------------------------------------------------- ON Semiconductor has established a new Solutions Engineering Center in Munich, Germany, to drive new automotive product initiatives and expand the company’s local service capabilities by providing on-site technical expertise. The Munich SEC will focus on development of advanced power management solutions for a variety of automotive applications including Body, HVAC, Powertrain, Safety and Infotainment. It will provide development platforms and local product support to better service customers who design and manufacture electronic automotive sub-systems in Europe. The facility is staffed and equipped with all of the resources necessary for local automotive electronics manufacturers to tap into the vast power management experience ON Semiconductor has available. “Establishing the Munich SEC further demonstrates ON Semiconductor’s commitment to the region and to strengthening relationships with key automotive customers throughout Europe,” said Keith Jackson, ON Semiconductor president and CEO. “Like all our Solution Engineering Centers, the Munich facility is a direct investment in our customers’ future and the success of their next-generation product lines. By situating technical experts closer to our customers, we are able to more effectively and efficiently translate their problems into solutions and combine our expertise with theirs to solve platform problems together,” Mr. Jackson added. “We established an SEC in Munich because we believe customer support and customer satisfaction are equally as important as new product development to future success and sustained growth,” said Jean-Marie Doutrewe, ON Semiconductor vice president of European Sales, Marketing and Services Operations. “The Munich-based SEC’s application engineers and system experts will work closely with our European automotive customers to jointly develop cost-effective and efficient power solutions that drive new products and revenues for our mutual advantage,” Ms. Doutrewe said. The ON Semiconductor German office, which is located in Munich, is headed by Wolfgang Stammel, sales director of Central Europe and automotive market segment director, Europe. The SEC is led by Leo Aichriedler, manager automotive applications. About ON Semiconductor ON Semiconductor -- http://www.onsemi.com/-- supplies power solutions to engineers, purchasing professionals, distributors and contract manufacturers in the computer, cell phone, portable devices, automotive and industrial markets. The company has operations in Japan and the Czech Republic. * * * As reported in the Troubled Company Reporter on May 4, 2007, Standard & Poor's Ratings Services raised its corporate credit rating on Phoenix, Arizona-based ON Semiconductor Corp. to 'BB-'from 'B+'. The outlook is stable. At the same time, Standard & Poor's assigned its 'BB' rating to the company's amended and restated credit agreement, with a recovery rating of '1', indicating the expectation of full (100%) recovery of principal in the event of a payment default. SCHIEDER MOEBEL: Files for Insolvency After Takeover Talks Fail --------------------------------------------------------------- Schieder Moebel Holding GmbH filed for insolvency on June 22, 2007, after takeover talks foundered, potentially leading to the holdings' dissolution. The company's financial problems have threatened the future of about 150 facilities and companies, including its Polish arm Mazurskie Meble International and IMS AG, The Financial Times reports, citing the Polish News Bulletin and Die Welt as its sources. According to the report, the company's financial woes reached the boiling point after negotiations over a complete takeover fell through in spite of several companies and investors expressing interest in salvaging parts of the insolvent group. The accounting scandal that pushed Schieder Moebel into bankruptcy has deterred investors from committing to a takeover of the furniture maker. The TCR-Europe reported on June 19, 2007, that German cooperative central bank DZ Bank had called for a EUR10 million settlement for its participation certificates in Schieder Moebel Holding GmbH worth EUR50 million. The bank had also blocked all of the company's loans, including Goldman Sachs' final tranche of EUR7.5 million, which is part of a EUR65 million bridging loan agreement between the bank and Schieder Moebel. Mazurskie Meble CEO Stefan Tkaczyk claims that the holding's Polish branch was generating profits, the FT report says. "I wonder where this money went. It was probably a case of over-investment. The most likely domestic factories to go bankrupt are the facilities located in the Warmia i Mazury region. Investors interested in their acquisition will surely prefer to buy them from a court-appointed receiver," Mr. Tkaczyk said. About Schieder Moebel Headquartered in Herford, Germany, Schieder Moebel Holding GmbH -- http://www.schieder.com/-- is one of the leading furniture designers and manufacturers in Europe. The company has 41 production plants and employs 11,000 people worldwide, 9,000 of which in Poland. It had turnover of EUR950 million in the financial year 2005/06. Schieder applied for insolvency proceedings at the District Court of Detmold after incurring debts of nearly EUR300 million due to high capital costs. SECURENTA GOETTINGER: Claims Registration Period Ends Sept. 20 -------------------------------------------------------------- Creditors of Securenta, Goettinger Immobilien- u. Vermoegensmanagement AG have until Sept. 20 to register their claims with court-appointed insolvency manager Peter Knoepfel. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Goettingen Hall B 25 Berliner Strasse 8 37073 Goettingen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter Knoepfel c/o Treugarant AG Hallerstr. 76 D 20146 Hamburg Germany Tel: 040/4146380 Fax: 040/445635 E-mail: goettingen@treugarant.de The District Court of Goettingen opened bankruptcy proceedings against Securenta, Goettinger Immobilien- u. Vermoegensmanagement AG on June 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Securenta, Goettinger Immobilien- u. Vermoegensmanagement AG Merkelstrasse 3 37085 Goettingen Germany SUPRESTA LLC: Israel Chemicals Deal Cues Moody's Ratings Review --------------------------------------------------------------- Moody's Investors Service placed the ratings of Supresta LLC (B1 corporate family rating) under review for a possible upgrade following the announcement that Israel Chemicals Ltd. has agreed to buy the firm from its existing private equity owners, Ripplewood Holdings LLC, for $352 million in cash in a transaction that is expected to close in the third quarter of 2007. The ratings under review are: * Supresta LLC -- Corporate family rating -- B1 -- Probability of default rating -- B1 -- $140mm Gtd Sr Sec Term Loan due 2011, Ba3, LGD3, 35% -- $25mm Gtd Sr Sec Revolving Credit Facility due 2009, Ba3, LGD3, 35% ICL has indicated that the transaction will be financed by its internal resources and existing bank facilities and the closing is subject to a number of conditions, including regulatory approval. The review for upgrade reflects the expected operating benefits associated with inclusion of the company in the ICL group and the likelihood that Supresta's leverage will decline as its existing bank debt will likely be retired. The ratings will be withdrawn if the debt is refinanced. However, the company has not stated definitively how the rated term loan and revolving credit facility or unrated debt at the holding company level will be treated. Supresta is a global producer of phosphorus-based flame retardants used in foams, plastics and industrial/hydraulic fluids. The company also sells phosphorus-based organic and inorganic chemicals used in fine chemicals and paint additives. Supresta LLC, is headquartered in Ardsley, New York. Revenues were approximately $249 million for the LTM ended December 31, 2006. The company also operates in Brazil, China and Germany. UNIT ENERGY: Claims Registration Period Ends August 1 ----------------------------------------------------- Creditors of unit energy europe AG have until Aug. 1 to register their claims with court-appointed insolvency manager Ottmar Hermann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Sept. 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Bad Homburg v.d. Hoehe Area 120 First Floor Auf der Steinkaut 10-12 61352 Bad Homburg v.d. Hoehe 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 (Main) Germany Tel: 069-91309229 Fax: 069-91309230 The District Court of Bad Homburg v.d. Hoehe opened bankruptcy proceedings against unit energy europe AG on June 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: unit energy europe AG Attn: Felix Beyer, Manager Ludwigstrasse 12 61348 Bad Homburg Germany ============= I R E L A N D ============= NORTHCORE TECH: March 31 Equity Deficit Tops CDN$2.6 Million ------------------------------------------------------------ Northcore Technologies Inc. reported a net loss for the first quarter of CDN$550,000. This compares to a net loss of CDN$571,000 in the fourth quarter of 2006. In the first quarter of 2006, Northcore reported a net loss of CDN$480,000, a total that included income from discontinued operations of CDN$205,000. Northcore reported first quarter revenues of CDN$322,000, an increase of four percent over the CDN$309,000 the company generated in the fourth quarter of 2006. Nortchcore reported first quarter 2006 revenues of CDN$372,000. "Our revenue performance in the first quarter met our expectations, and as a number of our recently signed customer service agreements are at their initial stage, we anticipate incremental revenue growth in upcoming quarters," said Jeff Lymburner, chief executive officer of Northcore Technologies Inc. Northcore also reported an EBITDA loss in the first quarter of 2007 of CDN$368,000. This compares to an EBITDA loss of CDN$374,000 in the fourth quarter of 2006 and an EBITDA loss of CDN$373,000 in the first quarter of 2006. EBITDA loss is defined as losses before interest, taxes, depreciation, amortization, employee stock options, and discontinued operations. Northcore considers EBITDA to be a meaningful performance measure as it provides an approximation of operating cash flows. As at March 31, 2007, Northcore held cash and cash equivalents of CDN$93,000, and accounts receivable of approximately CDN$280,000. At March 31, 2007, the company's consolidated balance sheet showed CDN$510,000 in total assets, CDN$3,192,000 in total liabilities, resulting in a CDN$2,682,000 total stockholders' deficit. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with CDN$430,000 in total assets available to pay CDN$1,285,000 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?2131 Going Concern Doubt KPMG LLP, in Toronto, Canada, expressed substantial doubt about Northcore Technologies Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. About Northcore Technologies Headquartered in Toronto, Canada, Northcore Technologies Inc. (TSX: NTI.TO) -- http://www.northcore.com/-- provides core asset solutions that help organizations source, manage and sell their capital equipment. Northcore works with a growing number of customers and partners in a variety of sectors including oil and gas, government, and financial services. Current customers include GE Commercial Finance, Paramount Resources and Trilogy Energy Trust. The company also operates in Ireland. TRIAD HOSPITALS: Extends Senior Notes Pricing Date Until July 16 ---------------------------------------------------------------- Triad Hospitals Inc. is extending the price determination and expiration dates of its two senior notes from 10:00 a.m., New York City time, on June 25, 2007, to 10:00 a.m., New York City time, on July 16, 2007. The company is also extending the expiration date of its offering from 12:00 midnight, New York City time, on July 10, 2007, to 12:00 midnight, New York City time, on July 30, 2007. The senior notes affected by the extensions are the company’s $600,000,000 aggregate principal amount of 7% senior notes due 2012 and $600,000,000 aggregate principal amount of 7% senior subordinated notes due 2013. Holders who have previously tendered Notes do not need to re- tender their Notes or take any other action in response to these extensions. As of 7:00 a.m., New York City time, on June 25, 2007, the company has received tenders and consents from: (i) holders of about $599.3 million in aggregate principal amount of the senior notes, representing about 99.9% of the total outstanding principal amount of the senior notes; and (ii) holders of about $598.3 million in aggregate principal amount of the senior subordinated notes, representing about 99.7% of the total outstanding principal amount of the senior subordinated notes. Notes previously tendered may not be validly withdrawn, except under very limited circumstances. Except for the extension of the price determination and expiration dates, the offer and the tender offer documents remain in full force and effect and the price determination date for the offer will be at least 10 business days prior to the expiration date. The company's obligation to accept for purchase, and to pay for, Notes validly tendered and not withdrawn pursuant to the Offer is subject to the satisfaction or waiver of certain conditions, including: -- the satisfaction of all conditions to the consummation of the merger under the previously announced merger agreement among the company, Community Health Systems Inc. and a wholly owned subsidiary of CHS and consummation of the merger; -- CHS or an affiliate of CHS having issued up to $3.36 billion of debt; -- the company having sufficient available funds to pay the total consideration with respect to all notes and the receipt of sufficient consents with respect to the proposed amendments to the indentures and the notes. The company reserves the right to terminate, withdraw or amend the offer at any time subject to applicable law. Credit Suisse Securities (USA) LLC and Wachovia Securities have been retained to act as Dealer Managers in connection with the tender offer and consent solicitation. Questions about the tender offer and consent solicitation may be directed to Credit Suisse at (212) 325-7596 (collect) or Wachovia Securities at (866) 309-6316 (toll free) or (704) 715-8341 (collect). Copies of the tender offer documents and other related documents may be obtained from D.F. King & Co., Inc., the information agent for the tender offer and consent solicitation, at (800) 769-7666 (toll free) or (212) 269-5550 (collect). The tender offer and consent solicitation is being made solely by means of the tender offer documents. Under no circumstances will this press release constitute an offer to purchase or the solicitation of an offer to sell the notes or any other securities of the company or any other person, About Triad Hospitals Triad Hospitals Inc. (NYSE: TRI) -- http://www.triadhospitals.com/-- through its affiliates, owns and manages hospitals and ambulatory surgery centers primarily in the southern, midwestern, and western United States. The company currently operates 54 hospitals and 13 ambulatory surgery centers in 17 states and Ireland with about 9,855 licensed beds. In addition, through its QHR subsidiary, the company provides management and consulting services to independent general acute care hospitals located throughout the United States. * * * As reported in the Troubled Company Reporter on March 22, 2007, Standard & Poor's reported that its B+ corporate credit rating on Triad Hospitals Inc. remains on CreditWatch with negative implications, where it was originally placed on Feb. 5, 2007. ========= I T A L Y ========= ALITALIA SPA: AP Holding Seeks Valuation to Boost Bid ----------------------------------------------------- AP Holding S.p.A., AirOne S.p.A. and Intesa-San Paolo S.p.A.'s acquisition vehicle, is seeking a valuation in preparation for its bid to acquire the Italian government's 39.9% stake in Alitalia S.p.A., Il Sole 24 Ore reports. The valuation, Il Sole relates, will allow AP Holding's financial backers -- Morgan Stanley, Lehman Brothers, Nomura Holdings Inc., and Banca Monte Paschi di Siena -- to support its bid for the national carrier. PricewaterhouseCoopers have estimated AP Holding's value to be worth between EUR850 million and EUR1 billion, Il Sole says. Reuters writes that observers have questioned whether AirOne could pull off the acquisition of the much larger Alitalia, since its own annual revenues barely match Alitalia's annual losses. Alitalia has EUR1.2 billion in market capitalization. AP Holding will try to outbid rivals MatlinPatterson Global Advisers LLC and consortium OAO Aeroflot-Unicredito Italiano S.p.A. The bidders have until July 12, 2007, to submit a binding offer. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. ALITALIA SPA: OAO Aeroflot Pulls Out from Bidding Race ------------------------------------------------------ The consortium of OAO Aeroflot and Unicredito Italiano S.p.A. has withdrawn its bid to acquire the Italian government's 39.9% stake in Alitalia S.p.A. In a statement, Aeroflot said that it and its advisors were not allowed access to "critical information with respect to the commercial and operational aspects of Alitalia’s business to confidently formulate a well supported business proposal to successfully restructure the Italian carrier." "The conditions and requirements outlined for the privatization process would significantly limit the ability of Aeroflot to implement what Aeroflot believes to be the necessary measures to re-launch Alitalia," Aeroflot added. The consortium's pullout leaves two potential buyers for the Alitalia stake: -- AP Holding S.p.A., a consortium of AirOne S.p.A. and Intesa-San Paolo S.p.A.; and -- MatlinPatterson Global Advisers LLC. The bidders have until July 12, 2007, to submit a binding offer. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. PARMALAT SPA: Capitalia Sells 5.1% Stake for EUR266 Million ----------------------------------------------------------- Capitalia S.p.A. has sold its entire 5.1% stake in dairy concern Parmalat S.p.A. for around EUR266 million, Bloomberg News reports. Capitalia sold 84,761,390 shares on a placement by Lehman Brothers International, Bloomberg News relates. Capitalia gained around EUR53 million from the disposal. About Parmalat Based 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 40- some brand product line, which includes 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 for bankruptcy protection, they reported more than $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: Parmalat Capital Finance Ltd., Dairy Holdings, 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. PIAGGIO & C. SPA: Profits Cue S&P to Lift Rating to BB ------------------------------------------------------ Standard & Poor's Ratings Services raised its long-term corporate credit rating on Piaggio & C. SpA, an Italian manufacturer of scooters, motorcycles, and light transportation vehicles, to 'BB' from 'BB-'. The outlook is stable. "The upgrade reflects the sustained improvement Piaggio has achieved in profitability and cash generation," said Standard & Poor's credit analyst Barbara Castellano. "The company has proven itself able to generate a sound amount of free operating cash flow and to use a large part of it to repay debt." At the end of 2006 Piaggio's adjusted EBITDA margin grew to 12.8%, from 11.6% in 2005. In the first quarter of 2007 revenues increased by 5.3% while margins were in line with the same quarter of the previous year. Piaggio generated substantial free operating cash flow of 13% and 16% of total adjusted debt in 2006 and 2005, respectively. The ratio of funds from operations to debt was 21% at year-end 2006. Most of the cash generated has been used to reduce debt, which stood at EUR611 million at the end of 2006, from EUR663 million in 2005. Reducing its reliance on European markets and completely turning around the motorcycle business are important targets if Piaggio is to strengthen its business risk profile. We expect the group to be able to improve its operating results and generate free cash flow despite ambitions for growth. We also expect that any expansionary investment will not weaken credit indicators below levels acceptable for the ratings. In particular, adjusted FFO to debt must be maintained at about 20%. The ratings assume that Piaggio will finance its organic growth with cash internally generated. A strengthening of Piaggio's business risk profile through an increase in product and geographic diversity, along with an improved operating performance and a strengthening of financial measures above the level required for the rating, would have positive rating implications. In light of the extent of the business improvement required, though, we do not see ratings upside as a near-term possibility. Conversely, an erosion of the credit measures due to adverse changes in the conditions of Piaggio's main markets, or a more aggressive than expected expansionary policy, could put the ratings under pressure. =================== K A Z A K H S T A N =================== AKMIN LLP: Claims Filing Period Ends August 3 --------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Akmin insolvent. Creditors have until Aug. 3 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktube Kazakhstan CAMILLA LLP: Claims Registration Ends August 1 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Camilla insolvent. Creditors have until Aug. 1 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan DJUS LLP: Creditors Must File Claims August 3 --------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Djus insolvent. Creditors have until Aug. 3 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Office 203 Myzy Str. 2/1 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 24-84-70 DOSTYK LLP: Creditors' Claims Due August 3 ------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Firm Dostyk insolvent. Creditors have until Aug. 3 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Micro District Taugul-3, 138 Almaty Kazakhstan Tel: 8 777 223 07-71 FILCOMPANY LLP: Proof of Claim Deadline Slated for Aug. 3 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Filcompany insolvent. Creditors have until Aug. 3 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Micro District Taugul-3, 138 Almaty Kazakhstan Tel: 8 777 223 07-71 JANCOM-BB LLP: Creditors Must File Claims August 3 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Jancom-Bb insolvent. Creditors have until Aug. 3 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktube Kazakhstan KYZMET-SERVICE 1: Claims Filing Period Ends August 1 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Kyzmet-Service 1 insolvent. Creditors have until Aug. 1 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan ONER JSC: Proof of Claim Deadline Slated for August 3 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared JSC Oner insolvent. Creditors have until Aug. 3 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Office 203 Myzy Str. 2/1 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 24-84-70 SEVER-GAS JSC: Claims Registration Ends August 3 ------------------------------------------------ JSC Sever-Gas has declared insolvency. Creditors have until Aug. 3 to submit written proofs of claims to: JSC Sever-Gas Buketov Str. 34 Petropavlovsk North Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== ASIA EXCLUSIVE: Claims Filing Period Ends August 15 --------------------------------------------------- LLC Asia Exclusive has declared insolvency. Creditors have until Aug. 15 to submit written proofs of claim to: LLC Asia Exclusive Lenin Str. 105 Karasuu Osh Kyrgyzstan PARK & OPC: Creditors Must File Claims by August 10 --------------------------------------------------- LLC Park & OPC CIS has declared insolvency. Creditors have until Aug. 10 to submit written proofs of claim to: LLC Park & OPC CIS Room 22 Abdrahmanov Str. 170a Bishkek Kyrgyzstan =========== L A T V I A =========== NORVIK BANKA: Moody's Assigns Ba3 Long-Term Bank Deposit Rating --------------------------------------------------------------- Moody's Investors Service assigned to Norvik Banka JSC a D- bank financial strength rating, which translates into a baseline credit assessment of Ba3; a long-term deposit rating of Ba3 and short-term deposit rating of Not-Prime. The outlook on all ratings is stable. According to Moody's, the main elements underpinning the D- BFSR are the bank's good asset quality and capital adequacy and its new strategic shareholders' commitment to date to increase the capital base in step with the growth of the business. However, these strengths are offset by: (i) the significant proportion of funding that is confidence sensitive and largely short-term in maturity; (ii) its less than optimal corporate governance structure and by extension the lack of separation between risk management and business development; (iii) the high borrower concentration risk; and (iv) the unresolved lawsuit in the US which, while appearing to be frivolous, could go against the bank. Moody's believes that there would be no systemic support for Norvik Banka JSC in the event of a stress situation, in accordance with the highly dollarized system support guideline. Therefore, Norvik Banka's long-term global local currency (GLC) deposit rating does not incorporate systemic support. Norvik Banka is a small bank with a limited franchise that operates mainly in Latvia, where its main business is lending to private individuals and corporates. At the end of 2006, the bank had a 1.9% market share by total loans and by total assets. The bank benefits from proximity to its clients - retail activities are established in most of Latvia's industrial centres, through 13 branches and 77 settlement offices. The retail operation focuses on private individuals and small businesses, with the bank providing its clients with traditional as well as more sophisticated products. On the corporate banking side, the bank targets SMEs, in particular those in manufacturing, transportation, infrastructure and international trade. The bank benefits from its long-term experience in particular niches, such as shipping and transportation, and by its cooperation with the major Icelandic banks in terms of funding and implementing business practices. Looking ahead, Moody's believes that a rating upgrade could potentially be prompted by an improvement in its liquidity and funding profile, a reduction in high borrower concentration risk and changes to the corporate governance structure that provide a better separation of risk management from business development. A rating downgrade of Norvik Banka's BFSR could possibly be triggered by deterioration in the Latvian economy consequently affecting the bank's asset quality or by putting pressure on the bank's liquidity and funding position; or legal settlement costs that, while not envisaged, were sufficiently large to cause a reduction in the bank's capital base. These ratings were assigned with stable outlook: * Norvik Banka JSC: -- Long-term bank deposits: Ba3; -- Short-term bank deposits: Not-Prime; -- Bank financial strength rating: D-. Norvik Banka JSC is based in Riga, Latvia. At the end of March 2007, the bank had total assets of LVL375.49 million (EUR531.3 million). It is the 11th largest bank in Latvia in terms of total assets. =================== L U X E M B O U R G =================== BASELL AF: Acquisition Plan Cues S&P to Put BB- Ratings on Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB-' corporate credit ratings on Luxembourg-based Basell AF SCA and Salt Lake City, Utah-based Huntsman Corp., as well as all related ratings on both entities, on CreditWatch with negative implications. The listing reflects the announcement of a definitive agreement under which Basell plans to acquire Huntsman for a total of US$9.6 billion. The transaction, which is subject to shareholder and regulatory approval, has been approved by Huntsman's board of directors and has the support of MatlinPatterson and the Huntsman family, who collectively own 57% of Huntsman's common stock. "Basell plans to finance the purchase 100% with debt, which will result in a substantial increase of financial debt of the combined group to about EUR10 billion," said Standard & Poor's credit analyst Tobias Mock. Initially, we expect the ratio of total debt to EBITDA to be about 5x on an unadjusted basis. The transaction has favorable implications for the business risk profile of Basell due to an improved product mix, better diversification, and less dependency on the polyolefins cycle. However, the use of debt to finance the combination will result in a highly aggressive capital structure, particularly for a business that will still be exposed to the chemicals cycle. When completed, the combined company is expected to have sales of about EUR17 billion and EBITDA of about EUR1.9 billion. S&P expects the transaction to close in late 2007. S&P will resolve the CreditWatch after meeting with management to evaluate in detail the financial policies and strategy for the combined company and the impact of such a combination on the business and financial risk profiles. BASELL AF: Fitch Puts BB- IDR on Watch Negative on Takeover News ---------------------------------------------------------------- Fitch Ratings has placed Basell AF SCA's ratings on Rating Watch Negative, following the company's announcement of its definitive agreement to acquire U.S.-based chemicals and pigments producer Huntsman. The rating actions are: -- Long-term Issuer Default: 'BB-' on RWN -- Senior secured: 'BB+' on RWN -- Senior notes: 'B+' on RWN -- Basell's Short-term Issuer Default rating is affirmed at 'B'. Fitch expects to resolve the RWN upon the closure of the transaction and review of the financing plan. A more detailed comment will be issued in due course. ===================== N E T H E R L A N D S ===================== GLOBAL POWER: Creditors' Committee Wants to File Competing Plan --------------------------------------------------------------- The Official Committee of Unsecured Creditors in Global Power Equipment Group Inc. and its debtor-affiliates’ chapter 11 cases wants the Debtors’ third request for extension of their exclusive periods denied as it seeks authority to promptly file a competing plan. As reported in the Troubled Company Reporter on June 14, 2007, the Debtors had asked the Court to extend their exclusive period to file a chapter 11 plan to Oct. 1, 2007. The Debtors also asked the Court to extend their exclusive solicitation period to Nov. 30, 2007. In their request for extension, the Debtors disclosed that they were in talks with the Creditors Committee and the Official Committee of Equity Security Holders and argued that the extension would afford them time to better formulate a consensual chapter 11 reorganization plan. The Creditors’ Committee opposes the requested extension contending that the Debtors "have had ample time to formulate and propose a consensual plan of reorganization." According to the Creditors’ Committee, the costs associated with the delay that will ensue if the Court grants the requested extension are certain and substantial, while the benefits from any extension are speculative at best. Moreover, the Creditors’ Committee argues that the current proposed extensions would leave no room for error in view of the Dec. 7, 2007 maturity of the Debtors’ existing DIP financing facility. The Court is set to consider the matter at a July 10, 2007 hearing. 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 represent the Official Committee of Unsecured Creditors. As of Sept. 30, 2005, the Debtors reported total assets of $381,131,000 and total debts of $123,221,000. SYNIVERSE TECHNOLOGIES: To Raise US$489 Mln of Credit Facilities ---------------------------------------------------------------- Syniverse Technologies Inc. said it will raise $489 million of senior secured credit facilities. The credit facilities are expected to consist of: i) a $42 million revolver; ii) a $20 million Euro-denominated revolver; iii) a $297 million term loan; and iv) a $130 million Euro-denominated term loan. Net proceeds from the credit facilities will be used to fund the $290 million proposed acquisition of Billing Services Group Limited's Wireless Division and refinance Syniverse's existing senior secured credit facilities. Lehman Brothers Inc. and Deutsche Bank will act as Joint Lead Arrangers and Joint Bookrunners for the syndication. About Billing Services Billing Services Group Limited is a global provider of data clearing, financial settlement and risk management solutions for wireless and wireline communication service providers, operating in two primary segments: wireline and wireless. BSG Wireless is a provider of data clearing and financial settlement services related to global and national roaming for GSM wireless telecommunications providers. Shareholder approval for the acquisition of Billing Services by Syniverse Technologies was obtained on April 23, 2007. About Syniverse Syniverse Technologies Inc. in Tampa, Florida (NYSE: SVR) – http://www.syniverse.com/-- provides technology services for wireless telecommunications companies. Its integrated suite of services include technology interoperability services, which enable the invoicing and settlement of domestic and international wireless roaming telephone calls and wireless data events; SMS and MMS routing and translation services between carriers; and interactive video and mobile broadband solutions, prepaid applications, and roaming services. Celebrating its 20th anniversary in 2007, Syniverse has offices in major cities around the globe. Syniverse is ISO 9001:2000 certified and TL 9000 approved, adhering to the principles of customer focus and quality improvement practices. The company has offices in the Netherlands and China. X5 RETAIL: Gets US$1 Billion Loan to Refinance Debt --------------------------------------------------- X5 Retail Group N.V. has raised US$1 billion through a loan facility with final maturity of one year. The mandated lead arrangers of the loan are Goldman Sachs International and Citigroup Global Markets Ltd. The proceeds of the loan will be used to refinance the Group's debt, including the existing syndicated loan of US$800 million, which was arranged in 2006 to finance the merger between Pyaterochka and Perekrestok and expansion. "We are pleased to announce the refinancing of our existing debt on attractive terms that we believe are a testament to the combined strength and financial stability of our enlarged Group," X5 Retail Group CFO Vitaliy Podolskiy commented. "This transaction is a further step in our effort to optimize the Group's capital structure and enables us to lower funding costs, strengthen our financial flexibility and raise our profile in the international financial community." About X5 Retail Headquartered in the Netherlands, X5 Retail Group N.V. (fka Pyaterochka Holding N.V.) (LSE: FIVE) -- http://www.x5.ru/en/ -- operates a large store network largely covering the Moscow region and St. Petersburg but also has a good presence in other Russian regions through its franchise operations. The company has recently acquired two of its successful regional franchise operations -- in Yekaterinburg and Chelyabinsk. * * * In April 2007, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the corporate families in the Transportation Services, Services, Homebuilding and Building Products, Chemical, Retail and Apparel and Restaurants, Wholesale Distribution, and Other sectors, Moody's Investors Service confirmed its B1 Corporate Family Rating for X5 Retail Group N.V. Moody's also assigned a B1 probability of default rating to the company. In August 2006, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Pyaterochka Holding N.V., the owner of Russia's largest grocery retail network. At the same time, Standard & Poor's affirmed its 'BB-' long-term corporate credit and 'ruAA-' Russia national scale ratings on Pyaterochka's guaranteed operating subsidiary OOO Agrotorg. ============= R O M A N I A ============= TELEMOBIL SA: Moody's Assigns Corporate Family Rating at B3 ----------------------------------------------------------- Moody's Investors Service assigned a B3 Corporate Family Rating to Telemobil S.A. and a provisional (P)B3 rating to Telemobil's US$125 million senior secured notes due 2014. The outlook on the ratings is stable. Telemobil's B3 CFR reflects: (i) the growth potential of the telecom market in Romania, which enjoys strong GDP growth compared to other European countries and low fixed-line penetration (only 20% and concentrated in urban areas), presenting attractive opportunities in the mobile segment; (ii) the competitive advantage enjoyed by the company thanks to the combination of the propagation and network efficiency benefits associated with the 450MHz band and the high capacity of its recently acquired 3G licence, (iii) Telemobil's focus on the post-paid segment of the market, which enjoys high ARPUs and low churn rates, (iv) the fact that the company was free cash flow positive in 2006, although the payments associated with the acquisition of the 3G license and the rollout of the network will produce negative free cash flows in 2007 and 2008; (v) management's track record in building a profitable, cash- flow positive business; and (vi) a degree of shareholder support due to the company's strategic importance for both Qualcomm Inc. and Saudi Oger. However, the B3 CFR also takes into account these challenges: (i) Telemobil's small size and scale relative to other European markets and peers; (ii) an element of technology risk, given that Telemobil is the only CDMA operator in Romania, as a result of which it lacks roaming revenues from GSM customers and mass- market adoption of its services is prevented by relatively high handset prices in comparison to those of the GSM operators; (iii) the challenging competitive environment in Romania, with two very strong, larger and better capitalized operators (Vodafone and Orange) and a successful low-cost operator (Cosmote); (iv) the high initial leverage, with pro forma Total financial debt/LTM EBITDA of 7.9x as of March 2007; and (v) the expected weak interest coverage ratios during the first two years due to low, albeit improving, profitability. Telemobil is weakly positioned in its rating category, reflecting the risks from the company's significant indebtedness and aggressive capital structure paired with a high level of business risk derived from a very challenging competitive environment and an element of technology risk. Nonetheless, the B3 rating also takes account of Telemobil's track record and current free cash flow positive profile as well as its valuable customer base and the shareholders' commitment to the company. Moody's expects Telemobil to improve its positioning within the B3 rating category as the strategic plan of capitalizing on the 3G licence is executed and the company delivers on its de- leveraging plan. However, in this context, Telemobil could be subject to downward rating migration if it is not successful over the next six to twelve months in executing the business plan and a weaker operating performance leads to a delay in the expected return to a free cash flow positive position. The (P)B3 rating on the US$125 million senior secured notes is at the same level as the CFR, reflecting the fact that the notes are the most significant piece of debt in the capital structure. Moody's has also assigned Telemobil a Probability of Default Rating of B2, reflecting the use of a family recovery rate of 35%, due to the absence of bank debt in the structure. The 35% family recovery rate also reflects the limited track record in Romania with respect to the enforcement of creditor rights, particularly for secured creditors. Headquartered in Romania, Telemobil S.A. is the fourth provider of wireless telecommunications in Romania in terms of subscribers and it is the country's only operator of a CDMA 450 network. The company provides wireless voice, data and WLL services under the "Zapp" brand name. Telemobil is indirectly owned equally by Qualcomm Incorporated and Saudi Oger. For the year ended Dec. 31, 2006, Telemobil generated revenues of US$125 million and EBITDA of US$18 million. =========== R U S S I A =========== ANGAR-STORY OJSC: Asset Sale Slated for July 16 ----------------------------------------------- LLC Yuta, the bidding organizer for OJSC Angar-Story, will open a public auction for the company's properties at 3:00 p.m. on July 16 at: Dispatching Office Angarstroya Str. 8 Osinovka Bratsk Irkutsk Russia Interested participants have until July 12 to deposit an amount equivalent to 10% of the starting priced to: OJSC ANGAR-STORY Settlement Account 40702810818090102312 Correspondent Account 30101810900000000607 BIK 042520607 TIN 3805100028 OSB 2413/0114 Baykalskiy Bank SB RF Bratsk Irkutsk Russia Bidding documents must be submitted to: LLC Yuta Room 21 Angarstroya Str. 8 Bratsk Irkutsk Russia Tel: (3953)35-72-50 The Debtor can be reached at: OJSC Angar-Story Angarstroya Str. 8 Bratsk Irkutsk Russia BEL-MOR-WOOD-PROM: Creditors Must File Claims by Aug. 2 ------------------------------------------------------- Creditors of CJSC Bel-Mor-Wood-Prom have until Aug. 2 to submit proofs of claim to: A. Mikhnovets Insolvency Manager Post User Box 736 183039 Murmansk Russia The Arbitration Court of Murmansk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A42-7905/2006. The Court is located at: The Arbitration Court of Murmansk Knipovicha Str. 20 Murmansk Russia The Debtor can be reached at: CJSC Bel-Mor-Wood-Prom Molochnyj Murmansk Russia GLAV-STROY-MONOLITH: Creditors Must File Claims by Aug. 2 --------------------------------------------------------- Creditors of OJSC Glav-Stroy-Monolith (TIN 7710293820) have until Aug. 2 to submit proofs of claim to: M. Vasilega Insolvency Manager Post User Box 100 105318 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-74286/06-73-1169B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: OJSC Glav-Stroy-Monolith Building 2 Tverskaya Str. 6 125009 Moscow Russia HYDROSPETSSTROY: Property Inventory is Complete, Trustee Says ------------------------------------------------------------- Olga Rushitskaya, the bankruptcy trustee of HydroSpetsStroy Ltd., told Ural Business Consulting that they have completed the necessary inventory required for bankruptcy proceedings. "We are currently preparing a report and getting ready to sell the company's property," she added. In a TCR-Europe report on March 26, 2007, Ms. Rushitskaya revealed that all of the company's assets would be auctioned off as creditors now have full control of the assets. Proceeds of the auction, she said, would be used to settle the company's obligations. About HydroSpetsStroy Ltd. Russian company HydroSpetsStroy Ltd. is a general contractor with accumulated debts of more than RUR55 million (EUR1.59 million). The Arbitration Court of Sverdlovsk declared the company bankrupt in March 2007. IZNAIR LLC: Creditors Must File Claims by Aug. 2 ------------------------------------------------ Creditors of LLC Agricultural Company Iznair have until Aug. 2 to submit proofs of claim to: A. Baskakov Insolvency Manager Ak. Zhuk Str. 27 Balakovo 413853 Saratov Russia The Arbitration Court of Saratov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A57-753B/07-40E. The Court is located at: The Arbitration Court of Saratov Babushkin Vvoz 1 Saratov Russia The Debtor can be reached at: LLC Agricultural Company Iznair Eryshovka Rtishevskiy Saratov Russia KANTAUROVSKOYE OJSC: Bankruptcy Hearing Slated for Sept. 25 ----------------------------------------------------------- The Arbitration Court of Nizhnij Novgorod will convene at 2:15 p.m. on Sept. 25 to hear the bankruptcy supervision procedure on OJSC Kantaurovskoye (TIN 5246023656). The case is docketed under Case No. A43-4101/2007-18-67. The Temporary Insolvency Manager is: K. Agafonov Apartment 26 K. Marksa Str. 30 603159 Nizhnij Novgorod Russia The Debtor can be reached at: OJSC Kantaurovskoye Kantaurovskoye Borskiy Nizhnij Novgorod Russia KHALILOVSKIY ORE: Creditors Must File Claims by Aug. 2 ------------------------------------------------------ Creditors of LLC Khalilovskiy Ore Mining and Processing Enterprise have until Aug. 2 to submit proofs of claim to: E. Savilova Insolvency Manager Post User Box 1515 460001 Orenburg Russia The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-3277/2007-14GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: LLC Khalilovskiy Ore Mining and Processing Enterprise Magnezitovaya Str. 7/7 Khalilovo Gayskiy 462610 Orenburg Russia L-AUTO CJSC: Court Names I. Volkov as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod appointed I. Volkov as Insolvency Manager for CJSC L-Auto (TIN 5262014627). He can be reached at: I. Volkov Post User Box 104 603163 Nizhniy Novgorod Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43-4981/2007-27-156. The Court is located at: The Arbitration Court of Nizhniy Novgorod Kremlin 9 603082 Nizhniy Novgorod Russia The Debtor can be reached at: CJSC L-Auto B. Panina Str. 3 Nizhniy Novgorod Russia NOVIK CJSC: Tyumen Bankruptcy Hearing Slated for Aug. 23 -------------------------------------------------------- The Arbitration Court of Tyumen will convene at 9:00 a.m. on Aug. 23 to hear the bankruptcy supervision procedure on CJSC Production Building-Commercial Company Novik (TIN 7224002367). The case is docketed under Case No. A-70-2565/3-07. The Insolvency Manager is: S. Toropov Room 11 Khokhryakova Str. 7 625000 Tyumen Russia The Court is located at: The Arbitration Court of Tyumen Khokhryakova Str. 77 627000 Tyumen Region Russia The Debtor can be reached at: CJSC Production Building-Commercial Company Novik Komsomolskaya Str. 16 625002 Tyumen Russia OIL-PROM-SERVICE: Bankruptcy Hearing Slated for July 23 ------------------------------------------------------- The Arbitration Court of Kaliningrad will convene at noon on July 23 to hear the bankruptcy supervision procedure of LLC Oil- Prom-Service. The case is docketed under Case No. A21-1627/ 2007. The Insolvency Manager is: V. Kiselev Donskogo Str. 7-209 Kaliningrad Russia The Court is located at: The Arbitration Court of Kaliningrad Rokossovskogo Str. 2 Kaliningrad Russia The Debtor can be reached at: LLC Oil-Prom-Service Portovaya Str. 81 236035 Kaliningrad Russia OMEGA LTD: Creditors Must File Claims by Aug. 2 ------------------------------------------------ Creditors of CJSC Omega Ltd have until Aug. 2 to submit proofs of claim to: V. Tarasov Insolvency Manager Kosmodemyanskoy 29 183008 Murmansk 3 Russia The Arbitration Court of Murmansk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A42-1357/07. The Court is located at: The Arbitration Court of Murmansk Knipovicha Str. 20 Murmansk Russia The Debtor can be reached at: CJSC Omega Ltd Kandalaksha Murmansk Russia PRODEKS CJSC: Court Names I. Starichkov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Stavropol appointed I. Starichkov as Insolvency Manager for CJSC Trading Company Prodeks. He can be reached at: I. Starichkov Post User Box 276 3 OPS 355000 Stavropol Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A63-2688/07-S5. The Court is located at: The Arbitration Court of Stavropol Mira Str. 4586 Stavropol Region Russia The Debtor can be reached at: I. Starichkov Post User Box 276 3 OPS 355000 Stavropol Russia ROSNEFT OIL: Yukos Pays RUR237 Billion Debt From Sale Proceeds -------------------------------------------------------------- OAO Rosneft Oil Co. received on June 27 the first tranche of proceeds as a creditor from the bankruptcy of OAO Yukos Oil Co. The RUR237 billion (US$9.2 billion) amount Rosneft received will be used in full to retire its debt, the company said in a press release. Rosneft will continue to reduce debt through integration of recently acquired assets, improved operating performance, enhanced downstream margins, and potential asset sales. The company is targeting a reduction in leverage to 1x Debt/EBITDA and less than 30% gearing by 2010. Yukos bankruptcy receiver Eduard Rebgun disclosed the transfer of RUR151 billion of Yukos bankruptcy assets to the state revenue funds by way of payment of the company's tax arrears, an Interfax report carried by BBC says. Mr. Rebgun also said it will start the repayment of arrears on the company's principal RUR400 billion debt to third-ranking creditors, BBC relates. The Yukos receiver is repaying debt claims to all registered creditors in proportion to the size of their claims. The Troubled Company Reporter-Europe reported on April 24, 2007, Yukos' distribution of nearly RUR2 million to its second-tier creditors, which fully pays wage and severance claims held by private claimants. According to that report, the company has no first-tier creditors as these are private individuals who suffered losses during the company's operations. As of Jan. 31, claims against Yukos filed by 68 creditors reached RUR709 billion ($26.8 billion). As of Jan. 31, the company's largest creditors include: Claim Amount Creditor (RUR) (US$) -------- ------------- ------------ Federal Tax Service 429.3 billion 16.3 billion Rosneft 264.6 billion 10 billion Tomskneft 12.2 billion 465 million Samaraneftegaz 1.9 billion 70 million Siberian Service Co. 228.4 million 8.7 million About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * In a TCR-Europe report on Mar. 23, 2007, Fitch Ratings notes that Rosneft's plans to borrow US$22 billion from a group of eight banks in two credit arrangements of US$13 billion maturing in 12 months and US$9 billion maturing in 18 months is currently incorporated into the company's local and foreign currency Issuer Default ratings of 'BB+' Rating Watch Positive. In a TCR-Europe report on Jan. 16, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian OJSC Oil Company Rosneft to 'BB+' from 'BB' and removed it from CreditWatch, where it had been placed with positive implications on Nov. 15, 2006. S&P said the outlook is developing. ROSNEFT OIL: Neft-Aktiv Unit Buys Yukos Oil's Krasnodar Assets -------------------------------------------------------------- LLC Neft-Aktiv, a unit of OAO Rosneft Oil Co., agreed to pay RUR4.9 billion for Lot 9 of the OAO Yukos Oil Co.'s assets, which includes over 100 retail stations in Southern Russia including 100% of Stavropolnefteprodukt and other assets. Lot 9 includes stakes in these enterprises: -- 100% of OJSC Stavropolnefteproduct; -- 51% of LLC Yu-Kuban; -- 26.26% of OJSC Kuban Generation Company, OJSC Kuban Electricity Distribution Company, OJSC Kuban Transmission Company, and OJSC Kubanenergo; -- 100% of LLC Val Shatskogo; -- 49.892% of LLC Caspian Oil Company. "The acquisition of these enterprises will enable Rosneft to become a leader in the growing and attractive oil products retail market in Russia, providing further benefits of vertical integration and improved financial and operating performance," the company said in a statement. As reported in TCR-Europe Eduard Rebgun, Yukos' bankruptcy receiver, offered the bankrupt's Krasnodar assets to Rosneft after the Russian Federal Anti-Monopoly Service refused to effect the deal with auction winner ZAO Promregion Holding. Promregion, Rosneft unit OOO Neft Aktiv, and OOO Versar participated in the ninth auction for the bankrupt oil concern's assets early this month. The lot carried a RUR3.7 billion starting price, a bid increment of RUR37.1 million, and a required deposit sum of RUR742.4 million. In a TCR-Europe report on May 18, 2007, FAS said it would approve Rosneft's assets won through a series of auction from March to May. Rosneft has won these assets through its subsidiaries: Acquiring Unit Assets Price -------------- ------ ----- RN-Razvitiye 9.44% stake in Yukos Oil RUR197.8 billion OOO Neft-Aktiv Samara assets RUR165.5 billion OOO Neft-Aktiv East Siberian Assets RUR177.7 billion About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * In a TCR-Europe report on Mar. 23, 2007, Fitch Ratings notes that Rosneft's plans to borrow US$22 billion from a group of eight banks in two credit arrangements of US$13 billion maturing in 12 months and US$9 billion maturing in 18 months is currently incorporated into the company's local and foreign currency Issuer Default ratings of 'BB+' Rating Watch Positive. In a TCR-Europe report on Jan. 16, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian OJSC Oil Company Rosneft to 'BB+' from 'BB' and removed it from CreditWatch, where it had been placed with positive implications on Nov. 15, 2006. S&P said the outlook is developing. ROSNEFT OIL: Unit Buys Yukos' Retail Chain from LLC Unitex ---------------------------------------------------------- LLC Neft-Aktiv, a unit of OAO Rosneft Oil Co. has agreed with LLC Unitex to purchase oil product retail distribution and related infrastructure assets in European and Southern Russia. According to the agreement, Neft-Aktiv paid RUR16.32 billion to Unitex for entities with a total of 495 retail stations and neighboring product terminals. The retail and small wholesale oil product marketing entities in European Russia acquired from Unitex include: -- Belgorodnefteprodukt and Belgorod Terminal; -- Bryansknefteprodukt and Bryansk Terminal M; -- Voronezhnefteprodukt and Voronezh Terminal; -- Lipetsknefteprodukt and Lipetsk Terminal M; -- Orelnefteprodukt and Prioksky Terminal; -- Penzanefteprodukt and Penza Terminal; -- Tambovnefteprodukt and Tambov Terminal; -- Ulyanovsknefteprodukt and Ulyanovsk Terminal; -- Kedr-M, Yu-Tver, NBA-Servis, Kontrakt Oil, Germes-Moskva and MTK (in Moscow, the Moscow Region and the Tver Region); and -- YUKOS-Ladoga (in St. Petersburg) and YUKOS-Petroleum. "The acquisition of these enterprises will enable Rosneft to become a leader in the growing and attractive oil products retail market in Russia, providing further benefits of vertical integration and improved financial and operating performance," Rosneft said. As reported in the TCR-Europe on June 26, 2007, Rosneft Oil was holding talks to gain assets of bankrupt Yukos Oil acquired by OOO Unitex and the Prana Group. In a TCR-Europe report on June 8, 2007, Unitex signed a deal that finalized its purchase of Yukos' retail network, paying RUR12.46 billion (US$483.5 million) on May 25. Unitex outbid Royal Dutch Shell and TNK-BP Holding Ltd. to acquire Yukos' 537 petrol stations in Russia at a May 10 auction. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * In a TCR-Europe report on Mar. 23, 2007, Fitch Ratings notes that Rosneft's plans to borrow US$22 billion from a group of eight banks in two credit arrangements of US$13 billion maturing in 12 months and US$9 billion maturing in 18 months is currently incorporated into the company's local and foreign currency Issuer Default ratings of 'BB+' Rating Watch Positive. In a TCR-Europe report on Jan. 16, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian OJSC Oil Company Rosneft to 'BB+' from 'BB' and removed it from CreditWatch, where it had been placed with positive implications on Nov. 15, 2006. S&P said the outlook is developing. ROSNEFT OIL: Pegs 2007 Oil Output at Over 100 Million Tons ---------------------------------------------------------- OAO Rosneft Oil Co. expects its oil production to reach over 100 million metric tons this year following acquisition of OAO Yukos Oil Co.'s major oil assets, RIA Novosti reports citing vice president Sergei Kudryashov. Mr. Kudryashov added that Rosneft crude oil output, excluding the new oil assets, will exceed 90 million metric tons, RIA Novosti relates. Rosneft, through its RN-Razvitiye and Neft-Aktiv units had acquired Yukos oil assets in Tomsk, Samara and Krasnodar. In a recent press release, Rosneft said the acquisition will allow it "to become a leader in the growing and attractive oil products retail market in Russia, providing further benefits of vertical integration and improved financial and operating performance." About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * In a TCR-Europe report on Mar. 23, 2007, Fitch Ratings notes that Rosneft's plans to borrow US$22 billion from a group of eight banks in two credit arrangements of US$13 billion maturing in 12 months and US$9 billion maturing in 18 months is currently incorporated into the company's local and foreign currency Issuer Default ratings of 'BB+' Rating Watch Positive. In a TCR-Europe report on Jan. 16, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian OJSC Oil Company Rosneft to 'BB+' from 'BB' and removed it from CreditWatch, where it had been placed with positive implications on Nov. 15, 2006. S&P said the outlook is developing. SIBIR-WOOD LLC: Names S. Shkarovskaya as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Tyumen appointed S. Shkarovskaya as Insolvency Manager for LLC Sibir-Wood. She can be reached at: S. Shkarovskaya Room 10 Melnikayte Str. 90a 625026 Tyumen Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-70-8399/3-2006. The Court is located at: The Arbitration Court of Tyumen Khokhryakova Str. 77 627000 Tyumen Russia The Debtor can be reached at: LLC Sibir-Wood Lugovaya Str. 1, 38 626153 Tobolsk Russia SIBERIAN STOCKINET: Asset Sale Slated for July 19 ------------------------------------------------- LLC Ilim-RTsKU, the bidding organizer for CJSC Siberian Stockinet, will open a public auction for the company's properties at 11:00 a.m. on July 19 at: Baykalskaya Str. 244/1 Irkutsk Russia Interested participants have until July 17 to deposit an amount to: TIN 3820006767 KPP 382001001 Settlement Account 40702810810900410001125 Bidding documents must be submitted to: LLC Ilim-RTsKU Post User Box 146 664025 Irkutsk Russia Tel/Fax: (3952) 23-55-65 The Debtor can be reached at: CJSC Siberian Stockinet Vostochnyj Proezd 5 Cheremkhovo Irkutsk Russia SITRONICS JSC: Incurs US$28 Mln Net Loss in First Quarter 2007 -------------------------------------------------------------- Jsc Sitronics released a summary unaudited consolidated U.S. GAAP financial results for the first quarter ended March 31, 2007. Total revenues for the first quarter amounted to US$310 million, following healthy growth in the Information Technology Solutions and Microelectronics Solutions segment areas, as well as the impact of the consolidation of Intracom Telecom's results for the first quarter of 2007. Sitronics acquired 51% of Intracom Telecom in June 2006 and Sitronics' total assets had consequently increased to US$1.97 billion as at the end of the first quarter. The proportion of revenues generated from unrelated parties reached 88%. Sitronics reported a negative OIBDA of US$11.4 million in the first quarter and a net loss of US$28 million. According to Kommersant, the loss is due to Sitronics' dependence on parent company AFK Sistema. The Group also failed to diversify business. Operating Review The IT Solutions and Microelectronic Solutions segments performed in line with expectations during the first quarter. However, the Telecommunications Solutions segment was adversely affected by the delay in a number of projects from the first half of the year until the second half of the year and beyond. This reflected the effects of industry consolidation and the deferral of operators' capital and operating expenditure on new technologies such as 3G, NGN (next generation networks) and WIMAX. The delayed projects include the development and implementation of Next Generation Network technology for Moscow City Telephone Network and of third generation (3G) mobile telecommunications technology for Mobile TeleSystems, both of which are now expected to run through the second half of 2007 and beyond. The Information Technology Solutions, Microelectronic Solutions, and Other Businesses (Electronics Manufacturing Services and Consumer Electronics) segments all reported stable year on year profitability levels. The Other Businesses reported largely unchanged small loss year on year, despite a substantial reduction in revenues in line with the previously announced focusing and downsizing of the operations to meet changing market conditions. The first quarter profitability levels were however adversely impacted by an overall loss for the Telecommunications Solutions segment. The increased cost base was due to the higher level of fixed costs following the scaling up of the operations, the increase in research and development costs related to new products that were due to be implemented during the period but have been delayed, and the ongoing expansion into the Middle East and Africa. Outlook The first quarter revenue and profitability trends are expected to continue into the second quarter of the year. However, Sitronics' revenue streams are largely dependent on scale contracts that tend to weight more to the second half of the year. Sitronics has won a number of new public and private sector tenders and contracts during the first half of 2007. The pipeline remains strong and the Company expects a significant increase in revenues during the second half of 2007. This demonstrates the healthy underlying development of the business. In addition to the anticipated implementation of the MGTS and MTS projects, the Telecommunications Solutions segment has secured billing system contract wins with Wateen Telecom in Pakistan and Telecom Srbija in Serbia. The business has also signed new contracts for the provision of NGN and billing technologies to German-based operator CALLAX, and for the supply of telecommunications infrastructure and implementation services to Bulgaria's BTC Mobile. The IT Solutions segment has broadened its services focus to include new industry sectors such as Finance and Retail, and this is starting to pay off. The business has commenced an integrated banking system pilot at Russia's second largest bank -- VTB -- to implement Oracle's I-Flex, and also started the implementation of Oracle's Retek Retail software at Russian children's goods retail network - Detsky Mir. The business has also won a large contract for a World Bank-funded project at the Statistics Committee in the Ukraine. The Microelectronics Solutions segment has expanded its successful RFID ticketing technology project in the Moscow Metro (subway) by winning a tender to provide RFID tickets for ground transportation in the Moscow region. The business also signed a US$ 75 million contract with the National Machinery Import & Export Corporation of China for the supply of microelectronic products to China for the next 5 years. SITRONICS has reorganized the Telecommunications Solutions segment and introduced a new management team, in order to increase sales capacity, leverage cross and up-sell opportunities, accelerate growth, reduce costs and improve operating profitability in Russia and the CIS, as well as to identify organic growth and acquisition opportunities in new industry segments and geographies. The company is also working to optimize its product portfolio and focus research and development investments on newer technologies. The operational integration of Intracom Telecom is ongoing and expected to result in enhanced sales reach, reduced overhead costs and improving working capital management. The IT and Microelectronic Solutions segments are anticipated to meet expectations for the full year, while the Telecom Solutions segment is expected to generate revenues close to the previous expectations but with continuing margin pressure in 2007. The Other Businesses are expected to be profitable for the full year on a combined basis. "As announced at the time of our full year results in May, we are today providing an update on summary financial results for the first quarter of 2007, ahead of our half yearly results statement in September," Sitronics President Evgeny Utkin commented. "The first quarter saw continued revenue growth and an increased diversification in our customer base but decreased net profits and OIBDA. We have strengthened our partnerships with international industry leaders such as Oracle and CISCO, and have also developed our own IP-based solutions for each of the principal evolving technologies, which we believe position us well for the future." "The IT Solutions and Microelectronic Solutions segments performed well, with strong sales growth and stable profits. We continue to invest in developing new industry sectors and geographical markets, and these investments are leading to new contracts and a growing pipeline." "The telecommunications industry is going through a period of consolidation and technological change, which has adversely impacted our results during the first six months of 2007, with a number of customers delaying the introduction of new technologies until later in the year. We have reacted to the changing market environment by broadening out our technology, client, sector and geographical base. Such initiatives have enabled us to develop a healthy pipeline and secure new customer contracts, which are expected to lead to significantly improved operating performance in the second half of 2007," Mr. Utkin continued. "Our home markets continue to show significant Information and Communication Technology sector growth and the rapid development of knowledge-based economies makes them some of the fastest growing markets in the world. Whether through government initiative or commercial enterprise, we believe technology will be among the main drivers of economic development in the region and that Sitronics is uniquely positioned to capitalize on this growth," Mr. Utkin added. About Sitronics Headquartered in Moscow, Russia, JSC Sitronics (LSE: SITR) -- http://www.sitronics.com/-- provides telecommunications solutions, IT solutions and microelectronic solutions in the CIS region with a rapidly growing presence in other EEMEA markets. Sistema controls the company. For the 12 months ended Dec. 31, 2006, Sitronics' revenues and OIBDA were US$1.61 billion and US$183.6 million, respectively. As of Dec. 31, 2006, SITRONICS had total assets of US$1.65 billion. * * * As of May 24, 2007, JSC Sitronics carries Fitch's B- Long-Term Issuer Default Rating. SPRAKS CJSC: Court Names S. Piskarev as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Stavropol appointed S. Piskarev as Insolvency Manager for CJSC Spraks (TIN 2633004013). He can be reached at: S. Piskarev Ardatovskaya Str. 29 400120 Volgograd Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A63-2771/02-S5. The Court is located at: The Arbitration Court of Stavropol Mira Str. 4586 Stavropol Region Russia The Debtor can be reached at: CJSC Spraks Selektsionnaya Str. 17 Stavropol Russia STEEL-MOUNTING OJSC: Bankruptcy Hearing Slated for Nov. 13 ---------------------------------------------------------- The Arbitration Court of Moscow will convene at 10:00 a.m. on Nov. 13 to hear the bankruptcy supervision procedure on OJSC Steel-Mounting. The case is docketed under Case No. A40-23033/ 07-123-81B. The Temporary Insolvency Manager is: V. Kofnov Apartment 221 Velozavodskaya Str. 9 115280 Moscow Russia The Court located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: OJSC Steel-Mounting Myasnitskaya Str. 42 101000 Moscow Russia TNK-BP HOLDING: Commission Warns Against License Cancellation ------------------------------------------------------------- A commission of Russia's Natural Resources Ministry has advised the agency's chief against revoking the operating license of OAO Rusia Petroleum, a unit of TNK-BP Holding Ltd., for the Kovykta gas field, RIA Novosti reports citing Alexei Varlamov, a senior ministry official. "The decision will be made as soon as possible, because no one is interested in delaying this important issue," Mr. Varlamov told RIA Novosti. As reported in the TCR-Europe on May 31, Oleg Mitvol, chief of the Federal Natural Resource Oversight Agency (Rosprirodnadzor), recommended the cancellation of TNK-BP’s license to the Russian Subsoil Use Agency Rosnedra, claiming that the oil company failed to meet the terms of the license contract. Under the terms of its license, TNK-BP, through Rusia Petroleum unit, has to produce 9 billion cubic meters of natural gas annually from the field, the TCR-Europe reported on May 22. The company didn’t achieve the targeted production output as it only produced 1.5 billion cubic meters of natural gas from the field in 2006. As reported in the TCR-Europe on June 26, 2007, TNK-BP is selling its 62.9% stake in Rusia Petroleum unit to state-owned OAO Gazprom. Kommersant relates that TNK-BP has until Sept. 20, 2007, to sell its Rusia Petroleum stake and a 50% holding in East Siberia Gas Co. to Gazprom for A price consideration of between US$600 million and US$900 million. Rusia Petroleum is owned by TNK-BP (63.9%), Interros (25.82%), and the Irkutsk regional administration (11.24%). Under the deal, TNK-BP may reacquire 25% plus one stake in Rusia Petroleum within a year in exchange for assets that interests Gazprom, RIA Novosti reports citing a top manager at the Anglo- Russo joint venture. Kommersant cites a source close to Gazprom that the gas monopoly particularly interested in TNK-BP’s electric stations in Great Britain and Spain. Gazprom, the source added, is also interested in gaining contracts for supplying liquefied natural gas to the U.S. The fuel firms, RIA Novosti reports, also agreed to create a US$3 billion joint venture that would engage in oil and gas projects in Russia and abroad. About Gazprom Headquartered in Moscow, Russia, OAO Gazprom (RTS: GAZP; MICEX: GAZP; LSE: OGZD) -- http://www.gazprom.ru/eng-- produces 94% of the country's natural gas, controls 25% of the world's reserves, and is also the world's largest gas producer. It focuses on gas exploration, processing, transport, and marketing. About TNK-BP Headquartered Moscow, Russia, TNK-BP Holding Ltd. operates six refineries in Russia and Ukraine, and markets products through 2,100 retail service stations operating under TNK and BP brand. BP Plc and Alfa Access/Renova jointly own the group. TNK-BP holds a strategic position as the second largest liquids producer in the Russian intergraded operating environment, accounting for approximately 18% of Russia's total crude oil production. * * * Standard & Poor's assigned BB+/Stable foreign currency local currency ratings to TNK-BP on June 30, 2006. Moody's assigned a Ba2/Positive foreign currency rating to the company on Jan. 24, 2006. Fitch assigned a BB+/Positive foreign currency rating to TNK-BP on Feb. 13, 2006, and BB+/Positive local currency rating on Aug. 24, 2005. TRANSCAPITALBANK JSC: Moody's Rates Subordinated Debt at B2 ----------------------------------------------------------- Moody's Investors Service assigned a long-term foreign currency debt rating of B2 to the loan participation notes to be issued on a limited recourse basis by TransRegionalCapital Ltd. for the sole purpose of extending a subordinated loan to Transcapitalbank. The outlook for the rating is positive. The amount of the issue is yet to be confirmed, with a ten-year tenor. The bank will apply the net proceeds of the subordinated loan for general corporate purposes. The holders of the notes will rely for repayment solely and exclusively on the ability of Transcapitalbank to make payments under the loan agreement. The creditor rights under the loan agreement will be subordinated to the claims of senior creditors, but will rank pari passu with other subordinated debts and be senior to the claims of the bank's equity holders, including preference shares. According to the terms and conditions of the loan agreement, Transcapitalbank will have an option to prepay the subordinated loan if the Central Bank of Russia fails to unconditionally approve it as Own Funds (at 101% of the principal amount of the subordinated loan) or if, as a result of any amendment to or change in CBR regulation, it ceases to qualify as Own Funds (at the principal amount of the subordinated loan). Transcapitalbank is incorporated in Moscow, Russia, and reported total consolidated assets of RUR27.506 billion (US$1.045 billion) in accordance with IFRS as of Dec. 31, 2006. TransRegionalCapital Ltd. is a special purpose vehicle incorporated under the laws of Ireland. VOSTOK-AGRO-PRODUCT: Court Starts Bankruptcy Supervision Process ---------------------------------------------------------------- The Arbitration Court of Rostov commenced bankruptcy supervision procedure on LLC Vostok-Agro-Product. The case is docketed under Case No. A53-2694/2007-S1-33. The Temporary Insolvency Manager is: N. Sherbina Vokzalnaya Str. 3B Dubovskoye Dubovskiy 347410 Rostov Russia The Court is located at: The Arbitration Court of Rostov Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: LLC Vostok-Agro-Product Office 317 Serafimovicha Str. 58 344002 Rostov-na-Donu Russia YUKOS OIL: Pays RUR237 Billion Rosneft Debt From Sale Proceeds -------------------------------------------------------------- OAO Rosneft Oil Co. received on June 27 the first tranche of proceeds as a creditor from the bankruptcy of OAO Yukos Oil Co. The RUR237 billion (US$9.2 billion) amount Rosneft received will be used in full to retire its debt, the company said in a press release. Rosneft will continue to reduce debt through integration of recently acquired assets, improved operating performance, enhanced downstream margins, and potential asset sales. The company is targeting a reduction in leverage to 1x Debt/EBITDA and less than 30% gearing by 2010. Yukos bankruptcy receiver Eduard Rebgun disclosed the transfer of RUR151 billion of Yukos bankruptcy assets to the state revenue funds by way of payment of the company's tax arrears, an Interfax report carried by BBC says. Mr. Rebgun also said it will start the repayment of arrears on the company's principal RUR400 billion debt to third-ranking creditors, BBC relates. The Yukos receiver is repaying debt claims to all registered creditors in proportion to the size of their claims. The Troubled Company Reporter-Europe reported on April 24, 2007, Yukos' distribution of nearly RUR2 million to its second-tier creditors, which fully pays wage and severance claims held by private claimants. According to that report, the company has no first-tier creditors as these are private individuals who suffered losses during the company's operations. As of Jan. 31, claims against Yukos filed by 68 creditors reached RUR709 billion ($26.8 billion). As of Jan. 31, the company's largest creditors include: Claim Amount Creditor (RUR) (US$) -------- ------------- ------------ Federal Tax Service 429.3 billion 16.3 billion Rosneft 264.6 billion 10 billion Tomskneft 12.2 billion 465 million Samaraneftegaz 1.9 billion 70 million Siberian Service Co. 228.4 million 8.7 million About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. YUKOS OIL: Rosneft Oil's Neft-Aktiv Arm Buys Krasnodar Assets ------------------------------------------------------------- LLC Neft-Aktiv, a unit of OAO Rosneft Oil Co., agreed to pay RUR4.9 billion for Lot 9 of the OAO Yukos Oil Co.'s assets, which includes over 100 retail stations in Southern Russia including 100% of Stavropolnefteprodukt and other assets. Lot 9 includes stakes in these enterprises: -- 100% of OJSC Stavropolnefteproduct; -- 51% of LLC Yu-Kuban; -- 26.26% of OJSC Kuban Generation Company, OJSC Kuban Electricity Distribution Company, OJSC Kuban Transmission Company, and OJSC Kubanenergo; -- 100% of LLC Val Shatskogo; -- 49.892% of LLC Caspian Oil Company. "The acquisition of these enterprises will enable Rosneft to become a leader in the growing and attractive oil products retail market in Russia, providing further benefits of vertical integration and improved financial and operating performance," the company said in a statement. As previously reported in the TCR-Europe, Yukos bankruptcy receiver Eduard Rebgun offered the bankrupt's Krasnodar assets to Rosneft after the Russian Federal Anti-Monopoly Service refused to effect the deal with auction winner ZAO Promregion Holding. Promregion, Rosneft unit OOO Neft Aktiv, and OOO Versar participated in the ninth auction for the bankrupt oil concern's assets last month. The lot carried a RUR3.7 billion starting price, a bid increment of RUR37.1 million, and a required deposit sum of RUR742.4 million. In a TCR-Europe report on May 18, 2007, FAS said it would approve Rosneft's assets won through a series of auction from March to May. Rosneft has won these assets through its subsidiaries: Acquiring Unit Assets Price -------------- ------ ----- RN-Razvitiye 9.44% stake in Yukos Oil RUR197.8 billion OOO Neft-Aktiv Samara assets RUR165.5 billion OOO Neft-Aktiv East Siberian Assets RUR177.7 billion About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. ========= S P A I N ========= AYT GENOVA: Fitch Rates EUR14.7 Mln Notes Class D Notes at BB ------------------------------------------------------------- Fitch Ratings has assigned expected ratings to AyT Genova Hipotecario X, Fondo de Titulizacion Hipotecaria's mortgage- backed floating-rate notes totaling EUR1.05 billion due in March 2040: -- EUR220.5 million Class A1: 'AAA'; Outlook Stable -- EUR787.5 million Class A2: 'AAA'; Outlook Stable -- EUR15.75 million Class B: 'AA-'; Outlook Stable -- EUR11.55 million Class C: 'BBB'; Outlook Stable and, -- EUR14.7 million Class D: 'BB'; Outlook Stable. The final ratings are contingent upon the receipt of final documents conforming to information already received. This transaction is a cash flow securitization of a EUR1 billion static pool of first-ranking residential mortgage loans originated by Barclays Bank, S.A., an entity which is 99.7%- owned by Barclays Bank PLC (rated 'AA+'/Outlook Negative/'F1+'). The expected ratings are based on the quality of the underlying collateral, the underwriting and servicing of the mortgage loans, available credit enhancement and the sound legal and financial structure of the transaction. The expected ratings address the timely payment of interest on each payment date and repayment of the principal during the life of the transaction according to the terms and conditions of the documentation, which envisage interest deferral triggers on the Class B, C and D notes. The fund will be regulated by Spanish Securitisation Law 19/1992 and Royal Decree 926/1998. Its sole purpose will be to transform into securities the mortgage participations it will acquire from BBSA. The PHs will be subscribed by Ahorro y Titulizacion, S.G.F.T., S.A., whose sole function is to manage asset-backed notes on behalf of the fund. The securitized pool comprises "Hipoteca Remunerada" loans, an amortizing mortgage product bearing a margin of 45bp over 12- month Euribor. All loans are paid via direct debit since the Hipoteca Remunerada product is marketed along with an interest- bearing bank account. Since Hipoteca Remunerada is primarily targeted at high-net-worth Spanish clients, the average value of the properties backing the mortgages is over EUR320,000 and many of them fall into the high end of the Spanish property market, where demand may slow in times of economic crisis. Fitch addressed this risk in its recovery rate calculations by increasing the market value decline assumptions for these high- value properties through application of a jumbo stress of between 15% and 25%. This is the 10th residential mortgage securitization to be conducted by BBSA through the "Genova" programe and the eighth to be rated by Fitch. As in previous Genova transactions, BBSA originated the securitized mortgages and will continue to service the portfolio. BANCAJA 11: Moody's Junks EUR26/22.9 Million Series E Notes ----------------------------------------------------------- Moody's Investors Service assigned provisional credit ratings to seven series of Bonos de Titulizacion de Activos to be issued by BANCAJA 11 Fondo de Titulizacion de Activos, a Spanish asset securitisation fund that has been created by Europea de Titulizacion, S.G.F.T, S.A. Moody's assigned these ratings: -- (P)Aaa to the EUR260 million Series A1 notes; -- (P)Aaa to the EUR1,193 million Series A2 notes; -- (P)Aaa to the EUR440 million Series A3 notes; -- (P)A1 to the EUR63 million Series B notes; -- (P)Baa3 to the EUR24 million Series C notes; -- (P)Ba3 to the EUR20 million Series D notes; and -- (P)C to the EUR26/22.9 million Series E notes. The ratings address the expected loss posed to investors by the legal final maturity. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal on Classes A1, A2, A3, B, C and D at par on or before the rated final legal maturity date, and for ultimate payment of interest and principal at par on or before the rated final legal maturity date on Class E. The ratings do not address the full redemption of the notes on the expected maturity date. According to Moody's, this deal benefits from several strengths, including: (1) a reserve fund to cover potential shortfalls in interest or principal; (2) a 18-month artificial write-off mechanism; and (3) the fact that all the loans are secured by a first-lien mortgage guarantee. It is worth pointing out that the reserve fund will be funded with the benefits from the issuance of Series E notes. However, the transaction poses several challenging features, namely: (1) pro-rata amortization of the notes; (2) geographical concentration in the region of Valencia; (3) high LtV loans included in the portfolio; (4) interest rate risk only partially hedged; and (5) the negative impact of the interest deferral trigger on the subordinated series. These increased risks were reflected in the credit enhancement calculation. As of May 2007, the provisional portfolio comprised 15,128 loans. The loans have been originated between 2000 and December 2006, with a weighted average seasoning of one year and a weighted average remaining term of 31.59 years. The longest loan matures in January 2047. The interest rate is floating for all the loans, all of them being referenced to Euribor/Mibor. The weighted average interest rate of the pool is 4.59% and the weighted average margin over the reference rate is 0.89%. All the loans are secured by a first-lien mortgage guarantee with a current loan-to-value lower than 100%. The total weighted average loan-to-value is 75.84% Moody's based the provisional ratings primarily on: (i) an evaluation of the underlying portfolio of loans; (ii) historical performance information; (iii) the swap agreement partially hedging the interest rate risk; (iv) the credit enhancement provided through the GIC account, the pool spread, the reserve fund and the subordination of the notes; and (v) the legal and structural integrity of the transaction. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only reflect Moody's preliminary credit opinions regarding the transaction. Upon a conclusive review of the final pool of assets and the final documentation, Moody's will endeavor to assign a definitive rating to the notes. A definitive rating, if any, may differ from a provisional rating. MADRID RMBS: Moody's Rates EUR52.5 Mln Series E Notes at (P)Ba3 --------------------------------------------------------------- Moody's Investors Service assigned these provisional ratings to seven series of "Bonos de Titulizacion de Activos" (securitization bonds) to be issued by Madrid RMBS III Fondo de Titulizacion de Activos, a Spanish asset securitisation fund that has been created by Titulizacion de Activos, S.G.F.T, S.A.: -- (P)Aaa to the EUR658 million Series A1 notes; -- (P)Aaa to the EUR1575 million Series A2 notes; -- (P)Aaa to the EUR497 million Series A3 notes; -- (P)Aa2 to the EUR55.5 million Series B notes; -- (P)A2 to the EUR90 million Series C notes; -- (P)Baa2 to the EUR72 million Series D notes; and -- (P)Ba3 to the EUR52.5 million Series E notes. The products being securitized are first-lien mortgage loans granted to individuals (all of whom will use these loans to acquire properties located in Spain), originated by Caja Madrid (Aa1/Prime-1), which will continue to service them. As of June 2007, the provisional portfolio comprised 17,733 loans for a total amount of EUR3,288,190,061. The original weighted average loan-to-value is 94.28%. The current WALTV is 92.13%. The average loan size is EUR185,427. The loans were originated between 1997 and 2006, with a weighted average seasoning of 1.75 years. The pool is concentrated in the Madrid (56%) and Catalonia (21%) regions. To hedge the potential mismatch risk derived from the fact that the index reference rates on the assets side and the notes side are different, or the risk derived from any amendment in the terms of the mortgage agreements, the "Fondo" will enter into a swap agreement with Caja Madrid. Besides this swap agreement, the "Fondo" will enter into three option agreements with Caja Madrid to allow a certain level of additional spread for loans indexed to IRPH compared to the swapped interest bases (Euribor), valued at 70 bppa initially. Moody's provisional ratings address the expected loss posed to investors by the legal final maturity. The rating agency believes that the structure of the Madrid RMBS III notes allows for timely payment of interest and ultimate payment of principal at par, on or before the final legal maturity date and not at any other expected maturity date. The ratings do not address the full redemption of the notes on the expected maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on the yield to investors. Moody's bases its ratings on: (1) an evaluation of the underlying portfolio of mortgage loans securing the structure; and (2) the transaction's structural protections, which include the subordination, the strength of the cash flows (including the reserve fund) and any excess spread available to cover losses. According to Moody's, this deal benefits from strong features, including: (1) strong underwriting and risk control criteria (including a robust in-house scoring system); (2) a reserve fund that is fully funded up-front to cover a potential shortfall in interest and principal; (3) a six-month artificial write-off mechanism; and (4) the fact that 100% of the loans are secured by residential mortgages. However, Moody's notes that the deal also has a number of weaknesses, including: (1) the collateral consists almost exclusively of loans with an LTV greater than 80%; (2) the poolcut has a very strong concentration in Madrid; (3) the deferral of interest payments on each of Series B, C, D and E increases the expected loss on these subordinated series; (4) the Reserve Fund amortization trigger is slightly above the standard figures for the Spanish market; (5) the renegotiation limit of the loans on which the maturity can be extended is 15%, compared to the standard figure of 10% in the Spanish market; (6) around 3% of the pool is composed by loans with more than three debtors; and (7) pro-rata amortization of the Series B, C, D and E notes leads to reduced credit enhancement of the senior series in absolute terms. These increased risks were reflected in Moody's credit enhancement calculation. Moody's issues provisional ratings in advance of the final sale of financial instruments, but these ratings only represent Moody's preliminary credit opinions. Upon a conclusive review of the transaction and associated documentation, the rating agency will endeavor to assign a definitive rating. A definitive rating may differ from a provisional rating. ===================== S W I T Z E R L A N D ===================== AUTO SCHLEGEL: Creditors' Liquidation Claims Due July 13 -------------------------------------------------------- Creditors of LLC Auto Schlegel have until July 13 to submit their claims to: JSC Gossau Liquidator Lagerstr. 4 9201 Gossau SG Switzerland The Debtor can be reached at: LLC Auto Schlegel St. Gallen Switzerland CONARC LLC: Creditors' Liquidation Claims Due July 16 ----------------------------------------------------- Creditors of LLC Conarc have until July 16 to submit their claims to: Friedenstr. 15 8304 Wallisellen Bulach ZH Switzerland The Debtor can be reached at: LLC Conarc Wallisellen Bulach ZH Switzerland GIRTAG JSC: Creditors' Liquidation Claims Due July 11 ----------------------------------------------------- Creditors of JSC Girtag have until July 11 to submit their claims to: Otto Schwarz Liquidator Schaffhauserstr. 124 8152 Glattbrugg Bulach ZH Switzerland The Debtor can be reached at: JSC Girtag Opfikon Bulach ZH Switzerland INTERBUY (INTERNATIONAL): Liquidation Claims Due July 11 -------------------------------------------------------- Creditors of JSC Interbuy (International) have until July 11 to submit their claims to: JSC Metro International Liquidator Neuhofstrasse 4 6340 Baar ZG Switzerland The Debtor can be reached at: JSC Interbuy (International) Nidau BE Switzerland SWISSEC JSC: Creditors' Liquidation Claims Due July 11 ------------------------------------------------------ Creditors of JSC Swissec have until July 11 to submit their claims to: Kaspar Hofmann Liquidator Haldenstrasse 36 8134 Adliswil Horgen ZH Switzerland The Debtor can be reached at: JSC Swissec Zurich Switzerland ============= U K R A I N E ============= ALASKA LLC: Creditors Must File Claims by July 1 ------------------------------------------------ Creditors of LLC Production Director Center Alaska (code EDRPOU 32832572) have until July 1 to submit their proofs of claim to: Lilia Gudimenko Liquidator Murmanskaya Str. 31a 25014 Kirovograd Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 11/73. The Debtor can be reached at: LLC Production Director Center Alaska Murmanskaya Str. 31a 25014 Kirovograd Ukraine CHERKASSY INDUSTRIAL-BUILDING: Claims Filing Deadline Set July 1 ---------------------------------------------------------------- Creditors of LLC Cherkassy Industrial-Building Company (code EDRPOU 31007273) have until July 1 to submit their proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: LLC Cherkassy Industrial-Building Company Dakhnovskaya Str. 23 Cherkassy Ukraine EDITION HOUSE: Creditors Must File Claims by July 1 --------------------------------------------------- Creditors of LLCAL Edition House (code EDRPOU 32129305) have until July 1 to submit their proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: LLCAL Edition House Partizansky Lane 9/1 Cherkassy Ukraine FOXCOM BREWERY: Claims Filing Deadline Set July 1 ------------------------------------------------- Creditors of LLC Foxcom Brewery Ltd. (code EDRPOU 25207972) have until July 1 to submit their proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: LLC Foxcom Brewery Ltd. Apartment 77 Blagovesnaya Str. 308 Cherkassy Ukraine GEON LLC: Claims Filing Deadline Set July 1 ------------------------------------------- Creditors of LLC Geon (code EDRPOU 25831311) have until July 1 to submit their proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Debtor can be reached at: LLC Geon Apartment 24 Sumgaitskaya Str. 17 Cherkassy Ukraine ISKRA CJSC: Claims Filing Deadline Set July 1 --------------------------------------------- Creditors of Agricultural CJSC Iskra (code EDRPOU 03777657) have until July 1 to submit their proofs of claim to: Vadim Zakorko Temporary Insolvency Manager Rybalko Str. 2, of. 412 40011 Sumy Ukraine The Economic Court of Sumy renewed bankruptcy supervision procedure against the company on May 21. The case is docketed under Case No. 6/124-06. The Court is located at: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Debtor can be reached at: Agricultural CJSC Iskra Cosmonauts Str. 1 Nedrygaylovsky District Komishanka 42143 Sumy Ukraine MALI LANKY: Claims Filing Deadline Set July 1 --------------------------------------------- Creditors of LLC Mali Lanky (code EDRPOU 30727967) have until July 1 to submit their proofs of claim to: Nicola Kachur Temporary Insolvency Manager Butsmaniuk Str. 92-b/2 79014 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 6/61-29/58. The Debtor can be reached at: LLC Mali Lanky Mali Lanky Peremyshliansky District 81220 Lvov Ukraine PIT-PLUS LLC: Claims Filing Deadline Set July 1 ----------------------------------------------- Creditors of LLC Pit-Plus (code EDRPOU 33209847) have until July 1 to submit their proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: LLC Pit-Plus Apartment 201 Gagarin Str. 83 Cherkassy Ukraine SELECTION GENETICAL: Claims Filing Deadline Set July 1 ------------------------------------------------------ Creditors of Selection Genetical Institute – National Center of Seed Farming and Quality Analysis State Enterprise of Research Farm Reconstruction (code EDRPOU 00855061) have until July 1 to submit their proofs of claim to: Andrew Kovalenko Temporary Insolvency Manager Apartment 53 Krym Str. 71 Odessa The Economic Court of Nikolaev commenced bankruptcy supervision procedure on the company on May 22. The case is docketed under Case No. 5/155/07. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: Selection Genetical Institute – National Center of Seed Farming and Quality Analysis State Enterprise of Research Farm Reconstruction Lenin Str. 13 Lepetukha Berezneguvatsky District 56234 Nikolaev Ukraine TDM LLC: Claims Filing Deadline Set July 1 ------------------------------------------ Creditors of LLC TDM (code EDRPOU 32583815) have until July 1 to submit their proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: LLC TDM Smilianskaya Str. 120/1 Cherkassy Ukraine XXI CENTURY: Claims Filing Deadline Set July 1 ---------------------------------------------- Creditors of LLC XXI Century (code EDRPOU 30528910) have until July 1 to submit their proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: LLC XXI Century Apartment 77 Blagovesnaya Str. 308 Cherkassy Ukraine VSEUKRAINSKY AKTSIONERNY: Fitch Rates Credit Suisse Loan at B- -------------------------------------------------------------- Fitch Ratings has assigned Credit Suisse International's US$125 million 10.125% issue of limited recourse loan participation notes due 2010 final ratings of Recovery 'RR4' and Long-term 'B-.' The notes are to be used solely for financing a loan to Ukraine- based Vseukrainsky Aktsionerny Bank, which is rated Long-term Issuer Default 'B-', Short-term IDR 'B', Individual 'D/E', Support '5' and National Long-term 'BBB-(ukr)'. The Outlooks on the Long-term IDR and National Long-term rating are Stable. VAB is a medium-sized commercial bank with a small 1.3% share of the banking system's assets. It has a network of 150+ outlets in Ukraine. Sergey Maximov, a local entrepreneur, and TBIF, a Dutch investment company with operations in Eastern Europe, equally hold a 97.3% stake in VAB. VAB's development plan envisages a significant strategic shift to being a diversified universal bank serving individual clients and SMEs from its current corporate banking focus. ZITTMANN LLC: Claims Filing Deadline Set July 1 ----------------------------------------------- Creditors of LLC Zittmann (code EDRPOU 30705257) have until July 1 to submit their proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: LLC Zittmann Ordzhonikidze Str. 70 Cherkassy Ukraine =========================== U N I T E D K I N G D O M =========================== ALFRED MCALPINE: Recovery Plan on Track, Chairman Says ------------------------------------------------------ Oliver Whitehead, chairman of Alfred McAlpine plc, told shareholders at the company’s annual general meeting on June 26, 2007, that its recovery plan is on track. "I am pleased to report that our core businesses are progressing well and that the Group is trading in line with expectations. At Slate, our recovery plan is on track. Conditions in our all markets remain positive," Mr. Whitehead said. "Since the start of the year, we have secured in excess of GBP500 million of new, long term business across all our businesses. These wins include new contracts in the utility sector with EdF Energy Networks and Thames Water and a series of new construction contracts, including four major road improvement projects, a contract for the creation of a new leisure centre at Ashfield and further contracts in the Manchester Greenquarter regeneration project. "We are also pleased to confirm that we have been selected as the preferred bidder on a five-year GBP110 million facilities management contract, which will extend our relationship with an existing customer in the retail banking sector. In addition, we can confirm that the Arden Partnership, a 50:50 joint venture, has reached financial close on the GBP10.5 million Leicestershire Project. "This is the second of the three schemes in the Three Shires Batched Mental Healthcare PFI and follows the financial closure of the GBP30 million Lincolnshire Project in May. The Derbyshire project, which is the last project in this GBP76.5 million batched scheme, is due to reach financial close later in the summer," Mr. Whitehead continued. "Our core businesses are in good shape and, with a healthy pipeline of new opportunities, are well placed to maintain the momentum that we have seen over recent years. This gives the Board confidence that the Group will make further good progress in 2007," Mr. Whitehead added. “This is my last statement as Chairman of Alfred McAlpine. Roger Urwin will take over the Chairmanship of the Company following the AGM and I would like to take this opportunity to wish him and the rest of the Alfred McAlpine team every success for the future," Mr. Whitehead concluded. About Alfred McAlpine Headquartered in London, England, Alfred McAlpine Plc -- http://www.alfredmcalpineplc.com/-- is a leading support services group focused on providing clients with integrated solutions for built environment needs. The company employs over 8,500 people. Accounting Irregularities As previously reported in the TCR-Europe on April 24, 2007, Ashurst and Deloitte completed its independent investigation into accounting irregularities identified within Alfred McAlpine Plc's slate business, confirming the extensive and systematic fraud by senior managers within the business dating back several years. The investigatory work has confirmed that the controls in Slate were systematically circumvented over a number of years to overstate results. The impacts on the Group's Income Statement for the year to Dec. 31, 2006, and on its Balance Sheet as at Dec. 31, 2006, include: (a) a reduction in reported Group revenue and pre-tax profit in relation to the sales fraud in the years up to and including 2006 of GBP22.9 million, of which GBP5.4 million represents deferred income which will be recognized in 2007 - in line with the guidance given in the statement on Feb. 26, 2007; (b) a reduction of GBP17.6 million in the current assets of the Group, as reflected in the Group Balance Sheet as at Dec. 31, 2006, in respect of the write down/impairment of the value of stock and work in progress in the slate business; (c) a reduction of GBP9.5 million in the fixed assets of the Group, as reflected in the Group Balance Sheet as at Dec. 31, 2006, principally in respect of the overstatement of quarry development costs in the slate business; and (d) a one-off cost of GBP6 million reflecting the costs of the independent investigation and the costs of completing the arrangement of new banking facilities with the Group's bankers. The cash impact on the Group of the accounting irregularities and the non-recurring costs is expected to be GBP30 million in 2007. BARE FACE: Names Roderick Julian Jones Liquidator ------------------------------------------------- Roderick Julian Jones of Jackson Gregory & Co. was appointed liquidator of Bare Face Chic Ltd. (formerly K.I.D.S R US Ltd. and K.I.D.S. (Kids in Designer Styles) Ltd.) on May 23 for the creditors’ voluntary winding-up proceeding. The company can be reached at: Bare Face Chic Ltd. 71 King Street Knutsford WA16 6DX England Tel: 01565 653 756 BATH TAXIS: Hires Liquidator from Rendell Thompson -------------------------------------------------- Julian Clive Rendell of Rendell Thompson was appointed liquidator of Bath Taxis Ltd. on May 29 for the creditors’ voluntary winding-up proceeding. The company can be reached at: Bath Taxis Ltd. Cheltenham Street Bath BA2 3EX England Tel: 01225 447 777 Fax: 01225 471 777 BLUEMOUNTAIN EURO: S&P Rates Class E Notes at BB- ------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR364 million floating-rate notes to be issued by BlueMountain Euro CLO I B.V. At the same time, an unrated portion of EUR36 million class F notes will be issued as part of the credit support. This will be the first European CDO of leveraged loans transaction managed by BlueMountain Capital Management L.P. (BlueMountain). It currently manages three CDOs of U.S. leveraged loans. At closing, BlueMountain Euro CLO I will issue the notes, the proceeds of which, after paying transaction fees and expenses, will be invested in a portfolio of predominantly senior leveraged loans. Approximately 85% of the target portfolio is expected to be purchased at closing, with the remainder to be acquired over the 180-day ramp-up period. The transaction will have a reinvestment period of six years. In addition to being long credit risk by holding debt obligations directly or through CDSs, the issuer can also be short credit risk by entering into offsetting CDSs and credit- short obligations as the protection buyer. Using these instruments, the issuer will buy protection for a specified reference obligation that it already owns (an offsetting CDS) or one it does not (a credit-short obligation). Ratings List BlueMountain Euro CLO I B.V. EUR400 Million Floating-Rate Notes Prelim. Prelim. Amount Class rating (Mil. EUR) ----- ------ -------- A-1 AAA 247.5 A-2 AAA 27.5 B AA 26.8 C A- 29.6 D BBB- 16.0 E BB- 16.6 F(1) NR 36.0 (1) The class F notes are subordinated. NR—Not rated. BOMFORDS GROUP: Appoints Joint Administrators from Deloitte ----------------------------------------------------------- Andrew Peters, Dominic Wong, David Langton and Nick Edwards of Deloitte & Touche LLP, Birmingham were appointed joint administrators of MBN Bomford Ltd., Bomfords Ltd., W. Bailey Ltd. and GF Produce Ltd. on June 22. The group operates from five principal locations: -- Atherstone, Stratford Upon Avon - head office and pack house (390 employees); -- Luddington, Stratford Upon Avon - U.K. farming operations and farmland (520 employees); -- Salford Priors, Worcester - pack house (570 employees); -- Purfleet, Essex - pack house specializing in imported produce (230 employees); and -- Gravesend, Kent - grower and pack house specializing in spring onions and radishes (390 employees). Bomfords Prepared Ltd., another subsidiary with 120 employees, is engaged in the supply of prepared food services and products from Pershore in Worcestershire, is not in administration and continues to trade normally. The group's 75% shareholding in this business is available for sale. The failure of the group has been attributed to significant cost over-runs in the recent construction of a new pack house and administration building at Atherstone, Stratford Upon Avon, together with the start up investment for the Bomfords Prepared Business, both of which have adversely impacted upon cash flows. In addition, the Group has made two recent acquisitions where integration benefits have been slower to arise than anticipated. "The group has a strong market position, with a U.K. market share of approximately 25-55% across its various principal product categories. It is profitable and has an enviable customer base," Dominic Wong disclosed. "Unfortunately, the capital expenditure overrun on the Atherstone facility was significant and could not be met from cashflows. However the facility is now complete and operational and the recently established Bomfords Prepared business is also now profitable. Recent acquisitions have been substantially integrated," Mr. Wong added. Andrew Peters, Partner in Deloitte's Reorganisation Services practice, said, "The administrators have already been contacted by a large number of interested parties and the businesses are continuing to trade as normal whilst the administrators seek either the rescue or sale of the Group." Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. Headquartered in Atherstone, England, Bomfords Group supplies fresh produce, provides legumes, spring onions, asparagus and sweet potatoes to the major supermarkets and other retail multiples. It has a turnover of around GBP150 million with 2,100 employees. BRACKENHILL HOMES: Brings In Liquidators from Buchanans ------------------------------------------------------- Peter Anthony Hall and Alan Peter Whalley of Buchanans were appointed joint liquidators of Brackenhill Homes Ltd. on May 29 for the creditors’ voluntary winding-up proceeding. The company can be reached at: Brackenhill Homes Ltd. 23 Crichel Mount Road Poole BH14 8LT England Fax: 01202 709 819 CLIMATE CONTROL: Appoints Michael Sutcliffe as Liquidator --------------------------------------------------------- Michael Sutcliffe of Sutcliffe & Co. was appointed liquidator of Climate Control Services Ltd. on May 30 for the creditors’ voluntary winding-up procedure. The company can be reached at: Climate Control Services Ltd. Stratford Farm House Stratford Rd Ash Vale Aldershot Hampshire GU12 5PT England Tel: 01252 548945 COMPLETE BUILDING: Calls In Liquidator from Bishop Fleming ---------------------------------------------------------- Jeremiah Anthony O’Sullivan of Bishop Fleming was appointed liquidator of The Complete Building Service (Devon) Ltd. on June 1 for the creditors’ voluntary winding-up procedure. Bishop Fleming -- http://www.bishopfleming.co.uk/-- provides services that include tax advice, financial forecasts, business planning and corporate finance. The company can be reached at: The Complete Building Service (Devon) Ltd. Cosmopolitan House Old Fore Street Sidmouth EX10 8LS England Tel: 01404 549 914 DPS COMPOSITES: Hires Liquidator from Mazars -------------------------------------------- Timothy Colin Hamilton Ball of Mazars LLP was appointed liquidator of DPS Composites Ltd. on May 24 for the creditors’ voluntary winding-up proceeding. Mazars -- http://www.mazars.com/-- provides in audit, accounting, tax and advisory services. The company can be reached at: DPS Composites Ltd. Unit 19 Bookham Industrial Estate Bookham Leatherhead KT23 3EU Tel: 01372 459 666 Fax: 01372 456 554 ENVELOPE SPRINT: Names Liquidator to Wind Up Business ----------------------------------------------------- Mark S. Goldstein of DCM Insolvency Service Ltd. was appointed liquidator of Envelope Sprint Ltd. on May 24 for the creditors’ voluntary winding-up procedure. The company can be reached at: Envelope Sprint Ltd. Unit 5 Meridian Park Neptune Close Medway City Estate Rochester Kent ME2 4LT England Tel: 01634 713657 GOLDING DEVELOPMENTS: Taps Lloyd Biscoe to Liquidate Assets ----------------------------------------------------------- Lloyd Biscoe of Begbies Traynor was appointed liquidator of Golding Developments Ltd. (formerly Golding Developments (Danbury) Ltd.) on May 30 for the creditors’ voluntary winding- up procedure. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: Golding Developments Ltd. 15-17 Neptune Quay Ipswich Suffolk IP4 1QJ England Tel: 01473 258313 GSPK ELECTRONICS: Joint Administrators from KPMG ------------------------------------------------ Mark Granville Firmin and Richard Dixon Fleming of KPMG LLP were appointed joint administrators of GSPK Electronics Ltd. (Company Number 3085234) on June 15. According to the Harrogate Advertiser, 11 employees were made redundant because of the move. The company has around 250 employees. "Unfortunately, the business has been hit by a significant overseas bad debt and does not have sufficient funding to continue trading outside of insolvency," Mr. Firmin told the Harrogate Advertiser. "We will now be reviewing the affairs of the company and talking to its customers, in order to help us establish the best course of action for the business going forward," Mr. Firmin added. "We are interested in speaking to anyone interested in acquiring the business and assets of the business as a going concern." KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. Headquartered in Knaresborough, England, GSPK Electronics Ltd. -- http://www.gspkelectronics.ltd.uk/-- manufactures electronic products for the television, telecommunications and automotive sectors. The company is a part of the GSPK group of companies. The other nine firms in the group are not affected by GSPK Electronics' administration. GUTHRIE MOTORS: Keith Barry Stout Leads Liquidation Procedure ------------------------------------------------------------- Keith Barry Stout was appointed liquidator of Guthrie Motors (Sales and Service) Ltd. on May 29 for the creditors’ voluntary winding-up procedure. The company can be reached at: Guthrie Motors (Sales and Service) Ltd. 21 Hutton Road Shenfield Brentwood CM15 8JU England Tel: 01277 218 686 Fax: 01277 226 029 H & J GLASS: Brings In Liquidators from Begbies Traynor ------------------------------------------------------- G. N. Lee and K. J. Coates of Begbies Traynor were appointed joint liquidators of H & J Glass Ltd. on May 29 for the creditors’ voluntary winding-up proceeding. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: H & J Glass Unit 7 Britonwood Trading Estate Abercrombie Rd Kirkby Liverpool Merseyside L33 7YN England Tel: 0151 547 2618 INNOVATIVE WASTE: Neil Chesterton Leads Liquidation Procedure ------------------------------------------------------------- Neil Chesterton of The MacDonald Partnership Plc Was appointed liquidator of Innovative Waste Solutions Ltd. on May 31 for the creditors’ voluntary winding-up procedure. The company can be reached at: Innovative Waste Solutions Ltd. Suite B 6 Corn Square Leominster HR6 8LR England Tel: 01568 616 191 Fax: 01568 620 088 ISOFT GROUP: FSA Mulls Ex-Torex Chairman as Scandal Witness ----------------------------------------------------------- The Financial Services Authority may call former Torex Retail plc chairman Christopher Moore as a witness in its probe into possible accounting regularities at iSOFT Group plc, The Times reports. According to The Times, Mr. Moore is not a suspect in the FSA’s investigation. He is yet to be interviewed by the Serious Fraud Office, which is conducting a separate inquiry into Torex. Mr. Moore moved to Torex at the time it was sold to iSOFT in 2004, The Times relates. The FSA is collaborating with the SFO in the iSOFT case. The FSA and iSOFT, however, refused to comment on the matter. About iSOFT Headquartered in Manchester, United Kingdom, iSOFT Group plc -- http://www.isoftplc.com/-- supplies advanced medical software applications for the healthcare sector. Its products are used by more than 8,000 organizations in 27 countries for managing patient information and driving improvements in healthcare services. In international markets, the group has a strong presence in the Asia-Pacific, including Singapore and India. * * * In June 2006, the Group disclosed a change in accounting policy, as a consequence of which it became necessary to review revenue recognition in prior years, in order to re-state some prior year revenues. Arising out of that review, a number of possible accounting irregularities came to light in which it appears that some revenues reported in 2003/04 and 2004/05 may have been recognized earlier than they should have been. On July 20, 2006, the Group engaged its auditors, Deloitte & Touche LLP, to conduct a formal initial investigation into these possible irregularities. In August 2006, it was confirmed that there were indeed matters that needed further investigation and the company handed over relevant documents to the Financial Services Authority, which is now conducting further investigations. The Group is working closely and co-operatively with the FSA in order to complete these investigations as quickly as possible. At the current time it would be inappropriate to comment on the likely outcome. On Oct. 25, 2006, the Accountancy Investigation and Discipline Board (AIDB) disclosed that it would conduct its own investigation. The AIDB investigation is a review of the conduct of those members of accountancy bodies that are regulated by the AIDB who were executive or non-executive directors of iSOFT during the relevant periods, and RSM Robson Rhodes LLP, iSOFT's auditor for the financial years ended April 30 2003, 2004 and 2005. All current executive directors of iSOFT who are members of those accountancy bodies were appointed after the dates under investigation, as was the non-executive director who is currently chairman of the audit committee. The initial investigation into possible accounting irregularities -- conducted by the Group's current auditors, Deloitte & Touche LLP, in July and August 2006 -- did not uncover evidence that any of the current non-executive directors had any knowledge of the irregularities. On the basis of information that has come to light so far, the Group does not believe that these matters will have any impact on the current or future financial position of iSOFT. Going Concern Doubt At Oct. 31, 2006, the company's board of directors recognized that there are material uncertainties that may cast significant doubt on the Group's ability to continue as a going concern. JDI PROPERTY: Taps Liquidators from Begbies Traynor --------------------------------------------------- Michael E. G. Saville and Rob Sadler of Begbies Traynor were appointed joint liquidators of JDI Property Services Ltd. on May 25 for the creditors’ voluntary winding-up proceeding. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: JDI Property Services Ltd. Croft House Croft Street Dewsbury WF13 1AR England Tel: 01924 439 475 JUST USA: Hires Lane Bednash to Liquidate Assets ------------------------------------------------ Lane Bednash of Valentine & Co. was appointed liquidator of Just USA Ltd. on May 31 for the creditors’ voluntary winding-up proceeding. The company can be reached at: Just USA Ltd. Unit 1 1a Chase Side Works Chelmsford Road Enfield London N14 4EQ England Tel: 0845 345 6459 Fax: 0845 345 3622 KINGDOM FORMWORK: Calls In Liquidator from Marriotts ---------------------------------------------------- Kevin Thomas Brown of Marriotts LLP was appointed liquidator of Kingdom Formwork Ltd. on May 30 for the creditors’ voluntary winding-up proceeding. The company can be reached at: Kingdom Formwork Ltd. 1a Oldenham Rd Watford Hertfordshire WD19 4AB England Tel: 01923 211800 MITEL NETWORKS: April 30 Equity Deficit Tops US$202.6 Million ------------------------------------------------------------- Mitel Networks Corp. reported a net loss of $35 million on total revenues of $384.9 million for the year ended April 30, 2007, compared with a net loss of $44.6 million on $387.1 million for the year ended April 30, 2006. The decrease in net loss is primarily due to the recognition of a gain on fair value adjustment on derivative instruments of $8.6 million for fiscal 2007, compared to a loss of $32.6 million in the prior year, partly offset by the increase in operating expenses, mainly due to litigation settlement expenses of $16.3 million involving a competitor's complaint for infringement of certain of the competitor's patents, and the $3.6 million increase in pre-tax special charges. During fiscal 2007, the company recorded pre-tax special charges of $9.3 million as a result of continuing efforts to improve the company’s operational efficiency and realign its business to focus on IP-based communications solutions. The components of the charge include $8.7 million of employee severance and benefits incurred in the termination of 129 employees around the world, $400,000 of accreted interest related to lease termination obligations and $200,000 related to additional lease terminations in the period. The company recorded pre-tax special charges of $5.7 million in fiscal 2006. At April 30, 2007, the company's consolidated balance sheet showed $202.2 million in total assets, $333.3 million in total liabilities, and $71.5 million in redeemable common shares, resulting in a $202.6 million total stockholders' deficit. Full-text copies of the company's consolidated financial statements for the year ended April 30, 2007, are available for free at http://researcharchives.com/t/s?212a Going Concern Doubt Deloitte & Touche LLP, in Ottawa, Canada, in its comments on the difference between Canada and the United States of America reporting standards, stated that their audit report of Mitel Networks Corp.'s consolidated financial statements for the years ended April 30, 2007, and 2006, is expressed in accordance with Canadian reporting standards which do not require a reference to conditions and events that cast substantial doubt on the company’s ability to continue as a going concern, when these are adequately disclosed in the financial statements. As shown in the financial statements for the year ended April 24, 2005, the six day transition period ended April 30, 2005, and the years ended April 30, 2006, and April 30, 2007, the company incurred losses of $49.6 million, $1.6 million, $44.6 million and $35.0 respectively. In addition, the put options issued in connection with the 10,000,000 common shares and 16,000,000 Series B Preferred Shares financing were set to mature on May 1, 2007. The 10,000,000 common shares are redeemable for cash at a price of CDN$2.85 per share representing a total of $25.8 million. These factors raise substantial doubt as to the company’s ability to continue as a going concern. On April 24, 2005, the company changed its fiscal year end from the last Sunday in April to April 30. About Mitel Networks Mitel Networks Corp. -- http://www.mitel.com/-- provides unified communications solutions and services for business customers. Mitel’s voice-centric IP-based communications solutions consist of a combination of telephony hardware and software that integrate voice, video and data communications with business applications and processes. Mitel is headquartered in Ottawa, Canada, with offices, partners and resellers worldwide. The company has operations in Brazil, the United Kingdom and Indonesia. OPTIMISTIC ENTERTAINMENT: Goes Into Administration -------------------------------------------------- Optimistic Entertainment plc and its trading subsidiaries Optimistic Media Ltd and The Optimistic Network Ltd have gone into administration following the company's efforts to refinance and restructure, the company said in a statement posted on its Web site. The company went into receivership despite the boards of each of the subsidiaries and the company having discussions over the past few months with many potential investors or purchasers. Unfortunately after undertaking due diligence none of these was able to support a restructuring of the Group. The Board of Optimistic resolved that the company should be put into administration as this would provide the best possible prospect of providing a restructuring of the company for the benefit of the shareholders and creditors. Over the last three years, Optimistic has broken new ground in terms of programming and participation TV and radio in the UK and internationally. However, more recently the adverse media coverage of the sector as a whole, together with regulatory investigations, has significantly impacted on consumer confidence and audience participation for its shows. As a result, OML, which produced an operating profit in the first quarter of the year, has moved back into loss. The directors of TON and OML have taken steps to sell their businesses as a going concern to achieve the best realization for their creditors. However, difficulties were again encountered with prospective purchasers. Ultimately, terms have been agreed with Fluorescent Media Ltd, a company in which Optimistic Chairman and CEO Jasper Smith has an interest. The administrators of TON and OML have negotiated and agreed a sale of the assets of each of these businesses with Fluorescent, thus preserving the jobs of the employees within the trading businesses. London-based Optimistic Entertainment plc -- http://www.oeplc.com/-- is a media group focused on building digital brands that engage with mass-market audiences through television, radio, internet and mobile networks. The company owns and operates Optimistic Media Ltd, a leading content and entertainment production company. Optimistic Media Ltd has produced over 24,000 hours of branded TV programming for some of the world’s largest broadcasters in the UK, France and the US. The company also owns The Optimistic Network Ltd, a UK based TV channel and distribution business, which runs the Bonanza channel on Sky. SOLERA HOLDINGS: Posts US$9.6 Mln Net Loss in Qtr. Ended Mar. 31 ---------------------------------------------------------------- Solera Holdings Inc. reported a net loss of $9.6 million on revenues of $121.7 million for the three months ended March 31, 2007, compared to a net loss of $824,000 on revenues of $343,000 for the three months ended March 31, 2006. The company's balance sheet as of March 31, 2007, listed total assets of $1,261,611, total liabilities of $1,092,785, class B redeemable preferred units of $220,599 and minority interest of $9,854, resulting in a stockholders' deficit of $61,627. Net loss for the nine months ended March 31, 2007, was $9.6 million on revenues of $349.4 million. This compares to a net loss of $2.3 million on revenues of $976,000 for the nine months ended March 31, 2006. A full-text copy of the company’s third quarter report is available for free at http://ResearchArchives.com/t/s?212e "Our third quarter results represent continued strong revenue performance and demonstrate our ability to meet the needs of our customers and drive revenue while controlling costs," said Tony Aquila, chairman and chief executive officer of Solera Holdings Inc. "Our momentum is fueled by growth in services to our existing customers, new insurance client acquisition and geographic expansion on a global basis." Other Matters Solera Holdings will not be issuing further guidance for fiscal year 2007 at this time, nor does the company anticipate it will issue any initial guidance for its fiscal year 2008 until the company announces its fiscal year 2007 results, expected to be during September 2007. The company will not be holding a conference call to discuss its third quarter 2007 results or other matters. Initial Public Offering On May 16, 2007, the company completed an initial public offering of shares of its common stock. In the initial public offering, the company sold 19,200,000 shares of common stock and the selling stockholders sold 10,987,500 shares of common stock, which included 3,937,500 shares of common stock sold by the selling stockholders pursuant to the underwriters' over- allotment option. In connection with the public offering, the company converted from a Delaware limited liability company into a Delaware corporation with 150,000,000 authorized shares of common stock, par value $0.01, and 15,000,000 authorized shares of preferred stock, par value $0.01. As a result, 31,633,211 common units were converted into 31,633,211 shares of common stock and 204,016.1 preferred units were converted into 13,889,974 shares of common stock. Restated Senior Credit Facility In connection with the initial public offering, the company engaged in refinancing transactions and entered into an amended and restated senior credit facility. Borrowings under the amended and restated senior credit facility consisted of: (i) a revolving credit facility that permits U.S. dollar or Euro- denominated borrowings of up to $50 million in revolving credit loans and letters of credit; (ii) a U.S. dollar denominated term loan in an aggregate amount of $230 million; and (iii) a Euro-denominated term loan in an aggregate amount of EUR280 million, or $380.7 million. The term loans will mature in May 2014 and the revolving loan will mature in May 2013. The amended and restated senior credit facility requires that the term loans be prepaid with the net proceeds from certain events, including specified asset and equity sales, insurance proceeds, incurrence of indebtedness and excess cash flow. The company received about $283 million in net proceeds from the initial public offering, after deducting underwriting discounts, commissions and expenses of about $24.2 million, and $607.6 million in net proceeds under the amended and restated senior credit facility, after debt issuance costs of about $3.8 million. About $889.2 million of the $890.6 million of combined net proceeds were used to repay: (i) $538.6 million under the first lien credit facility for all outstanding term loans and accrued interest; (ii) $226.2 million under the second lien credit facility for all borrowings and accrued interest, and a related prepayment premium of $4.5 million; and (iii) $124.4 million under the subordinated unsecured credit facility for all borrowings and accrued interest, and a related prepayment premium of $2.5 million. The company estimates that the total expenses of the offering were about $8 million, of which $3 million was paid prior to the closing date of the offering. In connection with the repayment of the above borrowings, the company expects to incur a pre-tax, non-cash charge of about $35.7 million on the early extinguishment of debt, which includes prepayment premiums of $7 million. The company expects to recognize this loss on extinguishment of debt in the fourth quarter of its fiscal year ending June 30, 2007. About Solera Holdings Solera Holdings Inc. (NYSE: SLH) -- http://www.solerainc.com/-- is a global provider of software and services to the automobile insurance claims processing industry. Solera has operations in 45 countries across 5 continents. The Solera companies include Audatex Holdings in the United States, Canada, and in more than 40 additional countries, Informex in Belgium, Sidexa in France, ABZ in The Netherlands, Hollander serving the North American recycling market, and IMS providing medical review services. Solera has worldwide operations in Brazil, India and the United Kingdom. * * * As reported in the Troubled Company Reporter on May 22, 2007, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit and senior secured debt ratings on Solera Holdings. At the same time, Standard & Poor's revised its outlook on Solera to positive from negative, following the recent completion of an initial public offering. Pro forma for the initial public offering, Solera's operating lease-adjusted leverage has declined to below 5x from above 6.5x as of December 2006. TITAN EUROPE: S&P Keeps Class F Notes on CreditWatch Negative ------------------------------------------------------------- Standard & Poor's Ratings Services’ 'BB' credit rating on the class F floating-rate notes issued by Titan Europe 2006-5 PLC remains on CreditWatch with negative implications. The notes were placed on CreditWatch negative on April 4, 2007, to reflect the transfer of the Balneario Blancafort loan (6% of the mortgage loan pool at closing) to special servicing. The transaction's servicer and special servicer, Hatfield Philips International Ltd., transferred the loan on March 21, 2007. At that time, the loan had been delinquent for more than 60 days, as it had not made any interest payments at the January 2007 interest payment date, but had paid all interest at the preceding IPD in October 2006. A liquidity facility drawing was made to cover the shortfall at the January 2007 IPD. Since Standard & Poor's placed the notes on CreditWatch, a further liquidity drawing has been made at the April IPD, which has increased the total amount drawn to EUR746,128.75. The special servicer continues to be in confidential negotiations with the borrower to resolve the issue, and during these negotiations is disclosing no further information. More news is expected to be published following the loan's upcoming IPD on July 18, 2007. "Due to the limited amount of information made public by the special servicer since we placed the notes on CreditWatch in April 2007, Standard & Poor's continues to monitor the situation," said credit analyst Christina Pries. "We note that the longer the process takes, the greater the exposure of the class F notes to any possible adverse developments due to the increased liquidity drawings." Standard & Poor's will stay in close contact with the special servicer to evaluate future upcoming events. The loan is secured on the Hotel Balneario Blancafort, a five- star hotel and thermal center in La Garriga, 50km north of Barcelona, Spain. The borrower, the hotel operator (tenant), and the spa operator (subtenant) are all owned by the sponsor of the loan. The transaction, which is backed by eight loans originated by Credit Suisse International (AA-/Stable/A-1+) and secured on commercial real estate properties in Germany and Spain, closed in December 2006. TITAN EUROPE: Fitch Puts BB- Ratings to Class G Notes ----------------------------------------------------- Fitch Ratings has assigned final ratings to Titan Europe 2007-02 Limited's CMBS floating-rate notes due 2017: -- EUR971.8 million Class A1: 'AAA'; Outlook Stable -- EUR50,000 Class X: 'AAA'; Outlook Stable -- EUR243 million Class A2: 'AAA'; Outlook Stable -- EUR164.6 million Class B: 'AA'; Outlook Stable -- EUR122.9 million Class C: 'A'; Outlook Stable -- EUR91.8 million Class D: 'BBB'; Outlook Stable -- EUR40.4 million Class E: 'BBB-'; Outlook Stable -- EUR22.7 million Class F: 'BB'; Outlook Stable -- EUR11.98 million Class G: 'BB-'; Outlook Stable The final ratings reflect the credit enhancement provided to each Class by the subordination of Classes junior to it, the positive and negative features of the underlying collateral, and the integrity of the legal and financial structures. The ratings also address the timely payment of interest on the notes and the ultimate repayment of principal by final legal maturity in April 2017. Initial credit enhancement for the Class A1 notes (41.8%) is provided by subordination of the Class A2, B, C, D, E, F and G notes. Likewise, initial credit enhancement for the Class A2 (27.2%), Class B (17.4%), Class C (10%), Class D (4.5%), Class E (2.1%) and Class F notes (0.7%) is provided by the subordination of those notes junior to them. There is no initial credit enhancement provided to the Class G notes. This transaction is a securitization of 18 commercial mortgage loans originated by Credit Suisse (rated 'AA-'/'F1+'/Outlook Stable) and one of its affiliates. The loans are secured by real estate located mainly across Germany (59.9% by securitized balance) with the remainder in the Netherlands (27.4%), Finland (4.8%), Czech Republic (3.3%), France (3%) and Ireland (1.7%). The loans are secured by first-ranking mortgages over 258 properties with an aggregate market value of EUR2.84 billion, including office, retail, multi-family, hotel, mixed-use and light industrial assets. The note issuance represents an initial weighted average loan-to-value ratio of 71.5%, reducing to a balloon weighted average LTV of 70.3%, assuming no changes in value, prepayments or defaults occur prior to individual loan maturities. Interest and principal on the notes is paid quarterly in arrears on each payment date, commencing in July 2007. Scheduled amortization on the loans is allocated sequentially to the note Classes. Prepayments and final repayments on the loans are allocated to the notes on a 50% sequential and 50% pro rata basis until the pool amortizes to 50% of the original note balance, at which point the waterfall switches to fully sequential. The structure does not have a liquidity facility but benefits from servicer advances. VIRAGEN INC: Halts Development of Avian Transgenic Technology ------------------------------------------------------------- Viragen Inc. halted its development of the OVA(TM) System, its avian transgenic technology being developed for the manufacture of therapeutic proteins. In halting all further development of the OVA(TM) System, Viragen notified Roslin Institute and Oxford Biomedica plc of its intent to terminate its research and license agreements, respectively. “We have been forced to make a very difficult decision at this time to halt our avian transgenics project. While we have accomplished some truly excellent science, including more ‘firsts’ than any other group in this field, the distance between research and commercialization is simply too great, and our resources are better focused on advancing our anti-cancer therapeutics,” commented Viragen’s President and CEO, Charles A. Rice. “We would like to thank the staffs at Roslin Institute and Oxford BioMedica for their work and dedication to this project. We will continue to maintain Viragen’s intellectual property portfolio associated with the OVA(TM) System in the event that any interested party may want to consider licensing,” added Mr. Rice. In light of the cessation of activities relating to avian transgenics, Viragen intends to focus its resources on the marketing and regulatory activities related to Multiferon(R) and pre-clinical studies planned for two of Viragen’s anti- cancer product candidates: VG102, a monoclonal antibody that has the potential to target nearly all solid tumors; and VG106, an in-house developed cytokine that has been shown, in preliminary studies, to prevent proliferation of several difficult-to-treat cancers. Based in Plantation, Florida, Viragen Inc. (AMEX: VRA) (OTC BB: VGNI) -- http://www.viragen.com/-- is a bio-pharmaceutical company engaged in the research, development, manufacture and commercialization of products for the treatment of cancers and viral diseases. The company operates from three locations: Plantation, Florida, which contains the company's administrative offices and support; Viragen (Scotland) Ltd., located outside Edinburgh, Scotland, which conducts the company's research and development activities; and ViraNative, located in Umea, Sweden, which houses the company's human alpha interferon manufacturing facilities. As of June 30, 2006, the company owned approximately 81.2% of Viragen International, Inc. Subsequent to June 30, 2006, its ownership interest of Viragen International was reduced to approximately 77.0%. Viragen International owns 100% of ViraNative AB, its Swedish subsidiary, and 100% of Viragen (Scotland) Ltd., its Scottish research center. Going Concern Doubt Ernst & Young LLP, in Fort Lauderdale, Fla., raised substantial doubt about Viragen, Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended June 30, 2006, and 2005. The auditing firm pointed to the company's recurring operating losses, accumulated and stockholders' deficiencies, and dependence on its ability to raise adequate capital to fund necessary product commercialization and development activities. WOOD04 LTD: Joint Liquidators Take Over Operations -------------------------------------------------- Harjinder Johal and George Michael of Ashcrofts were appointed joint liquidators of Wood04 Ltd. on June 1 for the creditors’ voluntary winding-up procedure. Ashcrofts -- http://www.ashcrofts.net/-- offers hands on expertise specializing in Business Recovery and Insolvency providing positive solutions for negative situations. The company can be reached at: Wood04 Ltd. 51 Victoria Street London SW1H 0EU England Tel: 020 7233 1135 YELLOW FINANCE: Appoints Mark S. Reynolds as Liquidator ------------------------------------------------------- Mark S. Reynolds of Valentine & Co. was appointed liquidator of Yellow Finance Ltd. on June 1 for the creditors’ voluntary winding-up procedure. The company can be reached at: Yellow Finance Ltd. 17 Church Street Basingstoke Hampshire RG21 7QG England Tel: 0800 0501601 * BOOK REVIEW: As We Forgive Our Debtors: Bankruptcy and Consumer Credit in America -------------------------------------------------------- Authors: Theresa A. Sullivan, Elizabeth Warren and Jay Lawrence Westbrook Publisher: Beard Books Paperback: 280 pages List Price: US$34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1893122158/internetbankru pt This book is a major contribution to the study of bankruptcy and to our understanding of debtors and creditors who end up in bankruptcy court. With the sharp increase in bankruptcies over the past decade and an increasingly wide cross-section of occupational distribution represented, the question treated by this study is both a legal and a sociological one. It does not attempt to study the internal workings of bankruptcy, but the authors look outward to the larger population of bankrupt debtors. Using a multi-disciplinary approach, the authors have drawn social and economic portraits of typical debtors against the backdrop of the law and with hard empirical data. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Kristina A. Godinez, and Pius Xerxes Tovilla, Editors. Copyright 2007. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *