/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070802.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, August 2, 2007, Vol. 8, No. 152 Headlines A U S T R I A A & S JAGIELKA: Creditors' Meeting Slated for Aug. 8 AUTOHAUS LIEBENAUERGUERTEL: Claims Registration Ends Aug. 20 BAUSCH & LOMB: AMO Has Until Aug. 3 to Provide Shareholder Info DONIK-MODE-WOLLE-HANDARBEIT: Claims Registration Ends Aug. 20 EBIBI & KOENIG: Vienna Court Orders Business Shutdown GREGOR BAUER: Claims Registration Period Ends Aug. 13 KREIBICH LLC: Claims Registration Period Ends Aug. 20 SCHUBERT LLC: Claims Registration Period Ends Aug. 14 B E L G I U M GENERAL MOTORS: Earns US$891 Million for Second Quarter 2007 GENERAL MOTORS: Anticipates Challenges Despite Q2 Profits GENERAL MOTORS: Extends Supply Deal in New Pact with Remy Int'l. GOODYEAR TIRE: Workers' Union Approves Deal With Carlyle Group LYONDELL CHEMICAL: Earns US$176 Million in Quarter Ended June 30 C Z E C H R E P U B L I C ANDREW CORP: Posts US$96 Million Net Loss in 2007 Third Quarter F I N L A N D HILTON HOTELS: Paying US$0.04 Per Share Dividend on Sept. 21 F R A N C E EUROTUNNEL GROUP: General Meetings Approve Group Accounts G E R M A N Y BEMT BAUGESELLSCHAFT: Creditors' Meeting Slated for Aug. 28 BUCKEYE TECHNOLOGIES: Obtains New US$200 Million Credit Facility COREL CORP: May 31 Balance Sheet Upside-Down by US$16 Million DAIMLERCHRYSLER: W. Bernhard to Head New Chrysler, Report Says FRESENIUS SE: Fitch Affirms Low-B Ratings on Debt Instruments INDUSTRIEPLANUNG FISCHER: U.S. Court Grants Relief Under Ch. 15 H U N G A R Y AES CORP: Shuts Down Two Units at Alamitos Power Station SUN MICROSYSTEMS: Earns US$329 Million in Quarter Ended June 30 I R E L A N D COMMSCOPE INC: Second Quarter Net Income Rises to US$61.1 Mln SIGMA-1 CLO-2007: Fitch Rates EUR19.8 Class F Notes at BB W.R. GRACE: Delaware Court Terminates Exclusive Periods I T A L Y ALITALIA SPA: Berardino Libonati Quits as Chairman BANCA ITALEASE: Posts EUR387.71 Mln Net Loss for First Half 2007 BANCA ITALEASE: Fitch Cuts Ratings to E on Parent Bank’s Loss FIAT SPA: Wants to Reacquire TK Aluminum Ltd. TK ALUMINUM: Receives Acquisition Offer from Fiat SpA K A Z A K H S T A N DOSTYK-AGRO LLP: Creditors' Claims Due on Sept. 5 K Y R G Y Z S T A N POLIGAM 2: Creditors Must File Claims by September 7 L I T H U A N I A MAZEIKIU NAFTA: Fitch Affirms and Withdraws B IDR N E T H E R L A N D S EUROSAIL-NL: Moody's Rates Classes E1 & ET Notes at Low-B FOOT LOCKER: Kicks Off Plans to Support Business Operations FRESENIUS FINANCE: Fitch Rates Sr. Unsecured Notes at BB GETRONICS N.V.: KPN Offer Cues S&P to Watch B- Rating JUBILEE CDO: S&P Raise Class D Ratings to BB+ as Credit Improves R U S S I A BIBIKOVKOE LLC: Court Names D. Zelepukin as Insolvency Manager CRAFT-V CJSC: Creditors Must File Claims by Sept. 7 DAYUR CJSC: Creditors Must File Claims by Aug. 7 HORIZON OJSC: Creditors Must File Claims by Aug. 7 KUZBASS LLC: Creditors Must File Claims by Sept. 7 KVINTO LLC: Omsk Bankruptcy Hearing Slated for Oct. 30 LIPETSK-AVIA OJSC: Creditors Must File Claims by Aug. 7 MAGNITOGORSK IRON: EGM Scheduled for August 30, 2007 MICHUTINSKOE OJSC: Court Starts Bankruptcy Supervision Procedure NEVEL-AUTO-TRANS: Court Names S. Alekseev as Insolvency Manager NOVOTROITSKIY FLAX: Creditors Must File Claims by Sept. 7 POKROVSKAYA NIVA: Creditors Must File Claims by Sept. 7 ROSNEFT OIL: Federal Court Rules Against Yukos Capital's Claim SISTEMA JSFC: Extraordinary General Meeting Slated for Sept. 17 TNK-BP HOLDING: Selling Buguruslanneft Production Unit TYUMENSKIY MACHINE-TOOL: Creditors Must File Claims by Sept. 7 YUG-MINIOIL-LABINSK: Names N. Sukhorukova as Insolvency Manager ZARYA CJSC: Creditors Must File Claims by Sept. 7 S P A I N AUCTENTIA SLU: U.S. Court Grants Relief Under Chapter 15 S W E D E N ARVINMERITOR INC: Incurs US$70 Mil. Net Loss in Third Quarter S W I T Z E R L A N D BASTEL SHOP: Creditors' Liquidation Claims Due August 31 G. METTLER: Aargau Court Starts Bankruptcy Proceedings MORO, DURANTE: Creditors' Liquidation Claims Due August 31 NORDINVEST CAPITAL: Creditors' Liquidation Claims Due August 15 PIZZA KURIER: Aargau Court Starts Bankruptcy Proceedings SAUERESSIG SECURITY: Creditors' Liquidation Claims Due Oct. 11 SCUBIDU JSC: Creditors' Liquidation Claims Due August 9 STEINER TEUFEN: Creditors' Liquidation Claims Due August 12 U K R A I N E BETVIS 2004: Creditors Must File Claims by August 3 ITAKA-BUILDING CONSTRUCTION: Creditors' Claims by August 3 KIDO LLC: Creditors Must File Claims by August 3 KIEV TECHNICAL: Creditors Must File Claims by August 3 KOMKON LLC: Creditors Must File Claims by August 3 LENINSKAYA KUZNIA: Creditors Must File Claims by August 3 MILINE PLUS: Creditors Must File Claims by August 3 NIKOPOL TUBE: Creditors Must File Claims by August 3 PERVOMAYSKOE CJSC: Creditors Must File Claims by August 3 QUANTA P: Creditors Must File Claims by August 3 U N I T E D K I N G D O M ABBEY FURNISHINGS: Creditors' Meeting Slated for Aug. 14 ADVANCED HEATING: Names Jeremiah Anthony O’Sullivan Liquidator AEROTECH WORLD: C. B. Barrett Leads Liquidation Procedure ALLIANCE BOOTS: Mike Cutt Quits as Human Resource Chief AXA INSURANCE: U.S. Court to Hear Chapter 15 Petition on Aug. 15 BAA LTD: Grupo Ferrovial Contemplates Sale of Duty Free Unit BALLY TOTAL: Files for Chapter 11 Protection in New York BALLY TOTAL: Case Summary & 50 Largest Unsecured Creditors BALLY TOTAL: Fails to Agree w/ Shareholders on Alternate Plan BRITISH AIRWAYS: OFT Imposes GBP121.5 Mln Fine Over Price Fixing BROOKLANDS 2001-1: Fitch Rates EUR22 Million Class E Notes at B+ BROOKLANDS 2002-1: Fitch Rates Classes E1 and E2 Notes at BB BROOKLANDS 2004-1: Fitch Affirms Class E Notes at BB BROOKLANDS 2005-1: Fitch Affirms Class E Notes at BB ECLIPSE 2005-1: S&P Place Ratings on Watch on Initial Review CABLE & WIRELESS: Loses Lawsuit Against Digicel EMI GROUP: Terra Firma Concludes Offer with 90.27% Acceptance EUROTECHNIX LTD: Brings In Administrators from Vantis Plc EUROTUNNEL GROUP: General Meetings Approve Group Accounts FORD MOTOR: Anticipates Challenges Despite 2nd Qtr. Profits FORD MOTOR: Unveils Amount of Shares Billed in Conversion Offer GML LTD: Appoints Joint Administrators from BDO Stoy I FINDA: Brings In Liquidators from Vantis Redhead French IMPERIAL CHEMICAL: Rejects Akzo’s 650 Pence Per Share Proposal IMPERIAL CHEMICAL: To Buy Dulux for GBP52 Million from AECI ISLE OF CAPRI: Calls for Buyback of US$200 Mln 9% Sr. Sub. Notes MILL FIELD: Taps Michael C. Kienlen to Liquidate Assets ORIENT SOURCING: Taps Joint Administrators from BDO Stoy REMY INT'L: Extends Supply Deal in New Pact with General Motors SALISBURY INT'L: Moody's May Lift Ba1 Ratings After Review T C & CO: Creditors' Meeting Slated for Aug. 8 TOMEI & MACKLEY: Brings In Administrators from Begbies Traynor TRINITY INSURANCE: Raises Creditor Recovery to 76.75% VIRGIN MEDIA: Liberty Global May Join GBP11.3 Bln Bidding Race * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= A & S JAGIELKA: Creditors' Meeting Slated for Aug. 8 ---------------------------------------------------- Creditors owed money by KEG A & S Jagielka (FN 281257p) are encouraged to attend the first creditors' meeting at 9:45 a.m. on Aug. 8. The creditors' meeting will be held at: The Land Court of Leoben Hall 4 First Floor Leoben Austria The Court will also examine the claims at 12:50 p.m. on Sept. 5, at the same venue. Creditors have until Aug. 20 to file written proofs of claim to court-appointed estate administrator Karl Maier at: Dr. Karl Maier Hauptplatz 13 8720 Knittelfeld Austria Tel: 03512-83428 Fax: 03512-83428-50 E-mail: office@ra-maier.at Headquartered in Spielberg bei Knittelfeld, Austria, the Debtor declared bankruptcy on July 4 (Bankr. Case No. 17 S 62/07x). AUTOHAUS LIEBENAUERGUERTEL: Claims Registration Ends Aug. 20 ------------------------------------------------------------ Creditors owed money by LLC Autohaus Liebenauerguertel (FN 245222x) have until Aug. 20 to file written proofs of claim to court-appointed estate administrator Heimo Hofstatter at: Dr. Heimo Hofstatter c/o OEG Hofstatter & Kohlfuerst Rechtsanwalte Marburgerkai 47 8010 Graz Austria Tel: 0316/81 54 54-0 Fax: 0316/81 54 54 -22 E-mail: Kohlfuerst@hofstaetter.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Sept. 4 for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Hall K Room 205 Second Floor Graz Austria Headquartered in Graz - Liebenau, Austria, the Debtor declared bankruptcy on July 4 (Bankr. Case No. 40 S 16/07m). BAUSCH & LOMB: AMO Has Until Aug. 3 to Provide Shareholder Info --------------------------------------------------------------- Bausch & Lomb Incorporated sent a letter Sunday to Advance Medical Optics regarding Advance Medical's bid to acquire Bausch & Lomb. Last month, Advanced Medical offered Bausch & Lomb's shareholders US$45.00 in cash and US$30.00 in AMO stock per share of Bausch & Lomb stock, which offer Bausch & Lomb is pressing for revision. In its letter, Bausch & Lomb stated, among others, that AMO's proposed US$50 million reverse termination fee is inadequate given what Bausch & Lomb believes to be substantial uncertainty with respect to AMO's ability to obtain approval from its stockholders. For the same reason, Bausch & Lomb added that it intends to revoke AMO's designation as an excluded party under Bausch & Lomb's merger agreement with Warburg Pincus. However, to permit AMO to attempt to provide evidence that AMO stockholder approval can be secured, Bausch & Lomb granted AMO a limited waiver for AMO to provide information to certain of its stockholders. Bausch & Lomb expects AMO to provide the required evidence no later than 12:00 p.m., on Friday, Aug. 3, 2007. Warburg Pincus Deal In May 2007, Bausch & Lomb entered into a definitive merger agreement with Warburg Pincus, pursuant to which Warburg Pincus agreed to acquire 100% of the outstanding shares of Bausch & Lomb for US$65.00 per share in cash. Pursuant to the Warburg Pincus merger agreement, AMO has been designated as an "excluded party," thus permitting Bausch & Lomb, subject to certain conditions, to continue negotiating with AMO with respect to the AMO proposal despite the end of the "go shop" period, so long as AMO remains an "excluded party." FTC Approval Reuters said in a July 10, 2007 report that affiliates of Warburg Pincus have received U.S. antitrust approval to acquire Bausch & Lomb. Citing the U.S. Federal Trade Commission, Reuters said antitrust authorities completed their review of the deal without taking any action to block it. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. In Europe, the company maintains operations in Austria, Germany, the Netherlands, Spain, and the United Kingdom. * * * As reported in the Troubled Company Reporter on July 12, 2007, Standard & Poor's Ratings Services said its 'BB+' corporate credit and senior secured ratings on Bausch & Lomb Inc. remain on CreditWatch with negative implications in light of the July 5, 2007 acquisition bid by Advanced Medical Optics Inc. As reported in the Troubled Company Reporter on May 18, 2007, Moody's Investors Service stated that it will continue its review of Bausch & Lomb Incorporated's ratings for possible downgrade following the announcement that the company has entered into a definitive merger agreement with affiliates of Warburg Pincus. Ratings subject to review for possible downgrade include the company's Ba1 Corporate Family rating and Ba1 Probability of Default rating. In addition, the Warburg Pincus deal prompted Fitch to maintain its Negative Rating Watch on the company. Fitch also warned that the transaction would significantly increase leverage and likely result in a multiple-notch downgrade, including an Issuer Default Rating of no higher than 'BB-'. DONIK-MODE-WOLLE-HANDARBEIT: Claims Registration Ends Aug. 20 ------------------------------------------------------------- Creditors owed money by LLC Donik-Mode-Wolle-Handarbeit (FN 242673y) have until Aug. 20 to file written proofs of claim to court-appointed estate administrator Werner Seifried at: Mag. Werner Seifried Burggasse 40 8750 Judenburg Austria Tel: 03572-82127 Fax: 03572-82127-4 E-mail: mag.seifried@derAnwalt.or.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:35 a.m. on Sept. 5 for the examination of claims. The meeting of creditors will be held at: The Land Court of Leoben Hall IV First Floor Leoben Headquartered in Knittelfeld, Austria, the Debtor declared bankruptcy on July 4 (Bankr. Case No. 17 S 61/07z). EBIBI & KOENIG: Vienna Court Orders Business Shutdown ----------------------------------------------------- The Trade Court of Vienna entered July 2 an order shutting down the business of LLC Ebibi & Koenig (FN 284381h). Court-appointed estate administrator Charlotte Boehm recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Charlotte Boehm Taborstrasse 10/2 1020 Vienna Austria Tel: 214 77 10/20 Fax: 214 77 10-16 E-mail: boehm@EUnet.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 25 (Bankr. Case No 2 S 85/07y). GREGOR BAUER: Claims Registration Period Ends Aug. 13 ----------------------------------------------------- Creditors owed money by LLC Gregor Bauer (FN 96118a) have until Aug. 13 to file written proofs of claim to court-appointed estate administrator Gerwald Holper at: Mag. Gerwald Holper Technologiezentrum Marktstrasse 3 7000 Eisenstadt Austria Tel: 02682/704266-0 Fax: 02682/70426615 E-mail: eisenstadt@kosch-partner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on Aug. 27 for the examination of claims. The meeting of creditors will be held at: The Land Court of Eisenstadt Hall F Eisenstadt Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 5 (Bankr. Case No. 26 S 92/07t). KREIBICH LLC: Claims Registration Period Ends Aug. 20 ----------------------------------------------------- Creditors owed money by LLC Kreibich (FN 137706i) have until Aug. 20 to file written proofs of claim to court-appointed estate administrator Frank Riel at: Dr. Frank Riel c/o Dr. Frank Eberhart Riel Gartenaugasse 1 3500 Krems Austria Tel: 02732/86565 Fax: 02732/86566-11 E-mail: anwalt@riel-grohmann.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Sept. 5 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 Krems an der Donau, Austria, the Debtor declared bankruptcy on July 4 (Bankr. Case No. 9 S 40/07s). Frank Eberhart Riel represents Dr. Riel in the bankruptcy proceedings. SCHUBERT LLC: Claims Registration Period Ends Aug. 14 ----------------------------------------------------- Creditors owed money by LLC Schubert (FN 94200f) have until Aug. 14 to file written proofs of claim to court-appointed estate administrator Stephan Riel at: Dr. Stephan Riel Schiessstattring 35/13 3100 St. Poelten Austria Tel: 02742/74 731 Fax: 02742/74 731-22 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:10 a.m. on Sept. 4 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in St. Poelten, Austria, the Debtor declared bankruptcy on June 29 (Bankr. Case No. 14 S 120/07y). ============= B E L G I U M ============= GENERAL MOTORS: Earns US$891 Million for Second Quarter 2007 ------------------------------------------------------------ General Motors Corp. has released its preliminary financial results for the 2007 second quarter, marked by record automotive revenue driven by strong sales in key growth markets, improved net income, and solid operating cash flow. GM reported net income of US$891 million for the second quarter of 2007, an improvement of US$4.3 billion compared with a reported net loss of US$3.4 billion in the year-ago quarter. The results for the second quarter 2007 included US$520 million in net special items, including US$374 million in charges associated with GM’s support of the bankruptcy and reorganization of Delphi and various GM North America restructuring-related charges. GM posted 2007 second-quarter adjusted net income, excluding special items, of US$1.4 billion compared to US$1.1 billion in the year-ago quarter. "We again saw improved results in sales, income and cash flow this quarter, driven by the continued successful implementation of our business strategies," said GM Chairman and CEO Rick Wagoner. "In particular, our heavy commitment to key growth markets around the world really paid off in strong growth and earnings. In North America we continue to make progress with our focus on great new products, a disciplined sales and marketing strategy, and structural cost reduction, although profitability remains close to break even." GM Automotive Operations GM’s global automotive net income from continuing operations totaled US$764 million on an adjusted basis in the second quarter of 2007 (reported net income from continuing operations of US$618 million), compared to an adjusted net income of US$367 million (reported net loss from continuing operations of US$3.48 billion) in the second quarter 2006. Results for GM’s automotive operations, specifically GMNA, exclude Allison Transmission which is now classified as a discontinued operation and an asset held for sale, pending the close of the previously- announced sale transaction. GM’s global sales volume surpassed 2.4 million units in the second quarter, up marginally from the same quarter a year ago. Global market share was down slightly at 13.3 percent, compared to 13.7 percent in the year-ago period, driven by a softer U.S. market, a reduction in fleet sales, and a disciplined incentive strategy. GM market share outside of North America increased to 9.4 percent in the second quarter 2007, compared to 9.2 percent in the second quarter 2006. GMNA had adjusted net income from continuing operations of US$78 million in the second quarter 2007 (reported net loss from continuing operations of US$39 million), compared to adjusted net loss of US$94 million from continuing operations (reported net loss from continuing operations of US$3.95 billion) in the second quarter 2006. The net income improvements reflect favorable mix and reduced structural costs. These savings were partially offset by lower volume, favorable policy and warranty adjustments in the prior-year period and unfavorable foreign exchange. "It’s true that our North America team has made huge improvements, and we appreciate everyone’s hard work. But our current earnings clearly demonstrate we’ve got more to do," Mr. Wagoner said. "We remain focused on growing revenue in North America by introducing great new cars and trucks, and enhancing our revitalized sales and marketing strategy. At the same time, we must continue to address our key areas of cost disadvantage such as healthcare. Going forward, we need to generate adequate profitability and cash flow to fund new product and key technology investments, like bio-fuel and hybrid-powered vehicles, to better position our business for sustainable growth." Mr. Wagoner added. GM Europe posted adjusted net income of US$236 million for the quarter (reported net income of US$217 million), compared to US$143 million in the second quarter of 2006 (reported net loss of US$39 million). The results mark the best quarterly performance for GME since the second quarter of 1996. The improved earnings were driven by favorable pricing, combined with solid structural cost performance associated with the region’s ongoing restructuring. Despite industry pressures in Germany, Europe’s largest vehicle market, GME set a quarterly sales record of 574,000 units, up five percent over the second quarter 2006. The new Opel Corsa small car and the Chevrolet Captiva compact SUV continued to perform especially well. In addition, GME’s multi-brand strategy continues to gain momentum. Chevrolet had record sales of 115,000 units, up 34 percent. GME growth in key Eastern European markets was strong, especially in Russia, where unit sales were up 106 percent over the second quarter 2006, and share was up 3.9 percentage points. GM Asia Pacific recorded adjusted net income of US$237 million in the second quarter (reported net income of US$227 million), which marks a second-quarter net income record for the region, and compares with US$164 million in the same quarter a year ago (reported net income of US$376 million, which included US$212 million from the sale of GM’s equity interest in Isuzu). The improvements were largely driven by strong performance at GM Daewoo and GM China. GM enjoyed eight percent sales growth in the Asia Pacific region, and GM China set a new volume record with 234,000 units in the quarter, up over six percent year- over-year. GM sales in South Korea were up 20 percent, and India was up 46 percent aided by the success of the newly- introduced Chevrolet Spark. GM Latin America, Africa and Middle East continued to leverage explosive regional growth and its traditionally strong position in the region. The group posted its best quarterly net income in a decade with adjusted earnings of US$213 million (reported net income also US$213 million), compared to US$155 million in the same quarter last year (reported net income of US$139 million). Improvements in net income were driven primarily by volume growth and favorable pricing. It set a volume record for the quarter, selling over 293,000 units, up 20 percent year- over-year. GM sales performance was highlighted by an all-time sales record in Venezuela, and second quarter records in Argentina, Brazil, Chile, Colombia, Egypt, and the Middle East Operations. "As we head into the second half of the year, we’re optimistic about continued growth prospects in key emerging markets. In the U.S., the economy and auto market outlook remains challenging, but we’ll continue our future product and technology investments, while staying focused on growing our revenue and improving our cost competitiveness," Mr. Wagoner said. "We look forward to the U.A.W. negotiations as an opportunity to continue to address issues that are important to the company, the union and our employees." In addition to strong year-over-year performance in automotive operations, GM also recognized adjusted net income of US$401 million in Corporate Other and Other Financing (reported net income of US$27 million). This represents a US$517 million improvement over the second quarter 2006, principally related to reductions in income tax contingencies. GMAC As a standalone company, GMAC Financial Services reported net income of US$293 million for the second quarter 2007, compared to US$787 million in the second quarter 2006 which included a one-time gain on the sale of a regional homebuilder of US$259 million. GM recognized US$139 million in net income attributable to GMAC as a result of its 49 percent equity interest as well as accrued preferred dividends. Financial performance at GMAC represents a US$598 million improvement over the first quarter 2007, which was significantly affected by pressures in the U.S. nonprime mortgage market. "We’re pleased that GMAC returned to profitability in the second quarter, with significantly better results than the first quarter. GMAC’s auto financing and insurance businesses continues to post strong results while the company continues to progress in addressing the challenging conditions in the residential mortgage market," Mr. Wagoner said. GMAC's automotive finance, insurance and other operations, excluding Residential Capital, LLC (ResCap), generated more than twice the net income of these same operations in the year-ago period. Despite continued challenges in the residential mortgage industry, ResCap significantly reduced losses in the second quarter. Cash and Liquidity GM generated adjusted operating cash flow of US$1.1 billion in the second quarter of 2007, up from US$600 million in the year- ago quarter, and continues to maintain a strong liquidity position. Cash, marketable securities, and readily-available assets of the Voluntary Employees’ Beneficiary Association trust totaled US$27.2 billion as of June 30, 2007, up from US$24.7 billion on March 31, 2007. The balance includes US$1.4 billion net cash raised through a convertible debt offering in May 2007, which replaced US$1.1 billion in convertible debt that was redeemed in March 2007. As announced in June 2007, the sale of the Allison Transmission business will further bolster GM’s liquidity, with proceeds of approximately US$5.6 billion. The sale is expected to close in the third quarter 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 and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. 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, according to Moody's. GENERAL MOTORS: Anticipates Challenges Despite Q2 Profits --------------------------------------------------------- General Motors Corp. and Ford Motor Company, which posted combined quarterly net earnings of US$1.65 billion, have warned the UAW that a number of challenges still loom in the second half of the year, despite of the positive results, as labor talks continue, Dow Jones Newswires reports. GM CFO Fritz Henderson said the company needs to push for health care cost relief within the workforce so it can reach its goal of sustained earnings growth and positive cash flow in North America, Dow Jones notes. GM faces an estimated US$50 billion in long-term health care liabilities although Mr. Henderson claims that GM already has US$19 billion set aside in company- managed trusts that could potentially be used to lower the burden. GM reported net income of US$891 million for the second quarter of 2007, an improvement of US$4.3 billion compared with a reported net loss of US$3.4 billion in the same period last year. Concurrently, Ford CEO Alan Mulally said the second half will be "difficult" as Ford faces cash outflows and races to reduce capacity to match falling sales in the U.S., Dow Jones relates. Ford also sees a tough pricing environment in the second half in the U.S. Ford Motor Company reported a net profit of US$750 million for the second quarter of 2007, compared with a net loss of US$317 million in the second quarter of 2006. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. 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 and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. 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, according to Moody's. GENERAL MOTORS: Extends Supply Deal in New Pact with Remy Int'l. ---------------------------------------------------------------- Remy International, Inc. has reached agreements with General Motors Corp. with respect to the extension and enhancement of Remy's existing supply relationship with GM. The new GM arrangement is an important development in the furtherance of Remy's financial restructuring. While certain aspects of the arrangement will be implemented immediately, the agreement will become fully effective upon the consummation of Remy's financial restructuring. "We are extremely pleased to have reached agreement with GM on a comprehensive restructuring of our commercial arrangement. We look forward to a long and mutually beneficial relationship with GM," said John Weber, Remy's chief executive officer. Remy also obtained a binding commitment from Barclays Capital, the investment banking division of Barclays Bank PLC, to provide debtor-in-possession financing of up to US$225 million and US$330 million of long-term exit financing, subject to certain closing conditions and documentation. As a result of finalizing these two critical aspects of its financial restructuring, Remy will commence a solicitation of votes on its prepackaged chapter 11 by mid-August. As previously announced, the terms of its consensual financial restructuring with its noteholders contemplates that all trade creditors, employees and suppliers will continue to be paid in the ordinary course of business. About Remy International Headquartered in Anderson, Indiana, Remy International Inc. -- http://www.remyinc.com/-- manufactures, remanufactures and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications. Remy has operations in the United Kingdom, Brazil and Korea. 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 and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. 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, according to Moody's. GOODYEAR TIRE: Workers' Union Approves Deal With Carlyle Group -------------------------------------------------------------- The union representing workers at Goodyear Tire & Rubber Co.'s engineered-products division said it ratified a contract with the Carlyle Group, resolving outstanding issues the union cited last week, Terry Kosdrosky writes for The Wall Street Journal. According to the report, the outstanding issues include the creation of a secure trust for retiree health care separate from the one at Goodyear as well as an extension of the cost of living adjustment to 2012. Goodyear said in March 2007 that it is selling substantially all of its engineered products business to EPD Inc., an entity sponsored by Carlyle Group, for US$1.475 billion. The sale is expected to close in the third quarter, WSJ says. The company anticipates using the proceeds for purposes including reducing debt, addressing legacy obligations and supporting business growth. About The Carlyle Group The Carlyle Group is one of the world's largest private equity firms with US$54.5 billion under management, investments in more than 185 companies and 750 employees in 16 countries. In the aggregate, Carlyle portfolio companies have more than US$68 billion in revenue and employ more than 200,000 people around the world. About Goodyear Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear Tire has marketing operations in almost every country around the world including Chile, Colombia, Guatemala, Jamaica and Peru in Latin America. Goodyear employs more than 80,000 people worldwide. Goodyear maintains Asia-Pacific facilities in Australia, China and Korea. Its European bases are located in Austria, Belgium, France, Germany, Italy, Russia, Spain, and the United Kingdom. Goodyear's Latin-American operations are located in Argentina, Brazil, Chile, Colombia, Jamaica, Mexico, and Peru. * * * As reported in the Troubled Company Reporter on June 4, 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. In addition, the ratings were removed from CreditWatch where they were placed with positive implications on May 10, 2007. Recovery ratings were not on CreditWatch. LYONDELL CHEMICAL: Earns US$176 Million in Quarter Ended June 30 ---------------------------------------------------------------- Lyondell Chemical Company disclosed on Thursday its results for the second quarter ended June 30, 2007. The company reported net income of US$176 million on sales and other operating revenues of US$7.48 billion for the second quarter 2007, compared with net income of US$160 million on sales and other operating revenues of US$4.71 billion for the second quarter 2006. Income from continuing operations for the second quarter 2007 was US$271 million, compared to income from continuing operations of US$129 million for the second quarter 2006. For the first six months of 2007, net income was US$195 million on sales and other operating revenues of US$13.27 billion, compared with net income of US$450 million on sales and other operating revenues of US$9.13 billion for the first six months of 2006. Forthe first six months of 2007, net income from continuing operations was US$277 million, compared with US$415 million for the first six months of 2006. Second-quarter 2007 results from continuing operations of US$271 million improved versus income from continuing operations of US$6 million for the first quarter 2007 primarily due to record refining segment results coupled with strong fuels (MTBE/ETBE) performance. Ethylene segment results continued to reflect good volumes and operating rates with modest margin improvement. In the propylene oxide segment, chemical product results declined primarily due to increased raw material costs; however, these were more than offset by the strength in fuels (MTBE/ETBE). The inorganic chemicals business is accounted for as a discontinued operation as it was sold midway through the quarter for a total transaction value of approximately US$1.3 billion. After-tax cash proceeds of approximately US$1.05 billion were used to repay debt. "The strength in our refining operations was quite clear during the quarter and demonstrated the way in which the segment complements our chemical operations and provides balance within our portfolio. While our refining and fuel products benefited from the strong fuel markets, similar dynamics within the energy markets pressured our chemical products. In fact, ethylene segment raw material costs on average increased by approximately 20 percent. Consequently, despite a relatively strong market and several price increases, margin improvement in this segment was quite modest," said Dan F. Smith, chairman, president and chief executive officer of Lyondell Chemical Company. "The strong refining results were complemented by the sale of our inorganics business, which enabled us to accelerate our debt repayment program providing additional value to our investors." Debt Reduction During the second quarter, debt repayment, including scheduled amortization of term loans and debt of discontinued operations, totaled US$1.3 billion. Millennium debt repayment was US$436 million, Equistar repaid US$600 million, and LCC repaid US$274 million. As of June 30, 2007, Lyondell's receivable facility was unutilized and Equistar's receivable facility was utilized by US$155 million. At June 30, 2007, the company's unaudited balance sheet showed US$16.79 billion in total assets, US$13.34 billion in total liabilities, US$117 million in minority interests, and US$3.33 billion in total stockholders' equity. About Lyondell Chemical Headquartered in Houston, Texas, Lyondell Chemical Company (NYSE: LYO) -- http://www.lyondell.com/-- is a leading global producer of petrochemicals and plastics, and owns a refinery with the unique ability to process 100% heavy sour crude oil from Venezuela. Lyondell produces propylene oxide, MTBE, ETBE and butanediol, as well as co-product styrene. The company also has locations in Austria, France, Italy, The Netherlands, Belgium, Germany, Spain, United Kingdom, Brazil, China, Japan, Taiwan, India and Singapore. Equistar Chemicals LP and Millennium Chemicals Inc. are wholly owned subsidiaries of Lyondell. Equistar is a leading North American producer of commodity petrochemicals and plastics. Millennium Chemicals is a single-site producer of acetic acid and vinyl acetate monomer and small producer of turpenes. * * * As reported in the Troubled Company Reporter-Latin America on June 6, 2007, Fitch Ratings expects to assign a 'BB-' rating to Lyondell Chemical Company's US$500 million announced offering of senior unsecured notes due 2017. Proceeds from this offering are expected to fully repay the existing US$500 million, 10.875% senior subordinated notes due 2009. Fitch also affirmed other ratings: -- Issuer Default Rating at 'BB-'; -- Senior secured credit facility and term loan at 'BB+'; -- Senior secured notes at 'BB+'; -- Senior unsecured notes at 'BB-'; -- Debentures at 'BB-'; As reported in the Troubled Company Reporter-Latin America on June 4, 2007, Standard & Poor's Ratings Services assigned its 'B+' rating to the proposed Lyondell Chemical Co.'s US$500 million of unsecured notes due 2017, issued pursuant to Lyondell's Rule 415 shelf registration. S&P also affirmed its corporate credit rating on Lyondell (BB-/Stable/B-1). S&P said the outlook was stable. =========================== C Z E C H R E P U B L I C =========================== ANDREW CORP: Posts US$96 Million Net Loss in 2007 Third Quarter --------------------------------------------------------------- Andrew Corporation reported total sales of US$546 million for the third quarter fiscal 2007, compared to US$551 million in the prior year third quarter. Wireless Infrastructure sales were US$523 million, compared to US$524 million in the prior year third quarter, due to ongoing challenges in the North American market, which were partially offset by strong growth in emerging markets. On a GAAP basis, the company reported a net loss of US$96 million, or US$0.61 per share for the third quarter, including US$0.72 per share of significant items, compared to net income of US$7 million, or US$0.04 per share, including US$0.05 per share of significant items in the prior year third quarter. Excluding significant items, non-GAAP earnings were US$0.11 per share for the third quarter, compared to US$0.09 per share for the prior year third quarter. "Andrew continued to benefit from record sales growth in several emerging markets such as India, however, demand in the North American market remained sluggish during our third quarter due to ongoing weaker spending from a key operator and an original equipment manufacturer (OEM) customer in this region," said Ralph Faison, president and chief executive officer, Andrew Corporation. "Consistent with our comments throughout fiscal 2007, we have seen a reduction in sales from these two key customers, and year-to-date, sales to these customers decreased by approximately US$200 million year over year. However, we are confident that we have maintained our market position with these customers and anticipate that they will increase their level of spending in future periods. Overall, we are pleased with the sequential improvement in sales in the quarter, and our book-to- bill as we entered our fourth quarter was positive." Due to the significant losses generated by the Base Station Subsystems segment in the first six months of fiscal 2007, the company had previously determined that an indicator of goodwill impairment existed as of March 31, 2007. Based on the completion of required "step-two" impairment testing, the company recognized a non-cash goodwill impairment loss of US$108 million during the quarter. The Base Station Subsystems segment had approximately US$412 million of goodwill as of March 31, 2007. "Our results in Base Station Subsystems have been significantly impacted by customer consolidation over the past several quarters," said Mr. Faison. "While we believe that our customer relationships and product technology in this segment will help deliver sustainable improvement in future quarters, due to the amount of recorded goodwill, recognizing an impairment loss was required upon completion of our analysis. We continue to strive to generate an adequate return from all of our product lines and anticipate that the pending transaction with CommScope will provide further opportunity to continue to rationalize our overall product portfolio." Third Quarter Financial Summary Wireless Infrastructure sales decreased slightly to US$523 million from US$524 million due to weaker sales of certain base station components, which was partially offset by strong demand for antenna and cable products, the implementation of price increases on cable products and a favorable foreign exchange impact. Total orders of US$568 million decreased 6% from the prior year third quarter due mainly to a reduction in orders for active products, which was partially offset by an increase in orders for antenna and cable products. Orders were down in North America, partially offset by strong orders in Asia Pacific and Latin America. Ending backlog was US$312 million compared to US$367 million in the prior year third quarter. The company completed its transition from the Orland Park facility to its new Joliet, Illinois cable facility during the quarter. Approximately US$5 million of relocation and start-up costs were incurred during the quarter, which reduced gross margin by approximately 90 basis points. The total Joliet relocation and start-up costs in the second and third quarters were below the company’s previous forecast by approximately US$3 million due to lower unabsorbed overhead than was originally expected. Gross margin was 20.7% in the third quarter. Excluding these costs, non-GAAP gross margin was 21.6%, compared to 22.1% in the prior year third quarter, primarily as a result of a less favorable product line and geographic sales mix significantly impacted by a year-to-date reduction of approximately US$200 million in revenues from two key North American customers. Operating loss for the quarter was US$85.7 million, or (15.7)% of sales, compared to operating income of US$18.0 million, or 3.3% of sales in the prior year third quarter. Excluding significant items, non-GAAP operating income for the quarter was US$28.0 million, or 5.1% of sales, compared to US$27.6 million, or 5.0% of sales, in the prior year third quarter. Research and development expenses were US$29.0 million, or 5.3% of sales, in the third quarter, compared to US$28.4 million, or 5.2% of sales, in the prior year third quarter. Sales and administrative expenses decreased to US$60.9 million, or 11.1% of sales, in the third quarter, compared to US$65.6 million, or 11.9% of sales, in the prior year third quarter. Sales and administrative expenses decreased in absolute dollars and as a percentage of sales due mainly to the company’s sale of its broadband cable business in April 2007, lower provisions for bad debts and reduced incentive compensation. Intangible amortization decreased to US$4.6 million in the third quarter, compared to US$4.7 million in the prior year third quarter and other expenses decreased to US$3.2 million in the third quarter, compared to US$3.8 million in the prior year third quarter. Gain on sale of assets increased to US$6.0 million, compared to US$0.3 million in the prior year third quarter due primarily to a real estate transaction and a gain on the company’s sale of its broadband cable business to Andes Industries in April 2007. The reported tax provision for the third quarter was US$6.8 million. The tax provision for the third quarter was unfavorably impacted by losses in the U.S. and Italy for which the company cannot record current tax benefits. Although the company continues to experience losses in the U.S. and Italy, there was a more favorable mix of earnings and losses by taxing jurisdiction during the third quarter compared to the first half of fiscal 2007. The reported tax provision for the prior year third quarter was US$7.3 million. Average shares outstanding decreased to approximately 156 million from approximately 160 million in the prior year third quarter primarily due to shares that have been repurchased by the company. The company has repurchased 4.4 million shares over the last twelve months. Goodwill Impairment As a result of the significant losses generated by Base Station Subsystems in the first six months of fiscal 2007, the company determined that a potential indicator of impairment had occurred and an interim test for impairment was required. The company performed "step one" of the goodwill impairment test, in accordance with Statement of Financial Accounting Standards 142, on this reporting unit as of March 31, 2007. Based on that test, the company determined that the fair value of the reporting unit was less than the carrying value of its net assets. The company has completed "step two" of the impairment test and has recognized a non-cash impairment loss of US$108 million in the third quarter to write down the carrying value of goodwill. Balance Sheet & Cash Flow Highlights Cash flow from operations was US$12.2 million in the third quarter, compared to US$24.5 million in the prior year third quarter. Accounts receivable were US$552 million and days’ sales outstanding (DSOs) were 89 days at June 30, 2007, compared to US$512 million and 90 days at March 31, 2007. Inventories were US$389 million and inventory turns were 4.5x at June 30, 2007, compared to US$398 million and 4.0x at March 31, 2007. Inventories decreased and inventory turns improved compared to the prior quarter due partially to increased sales and the completed relocation of the company’s Orland Park, Illinois facility to Joliet, Illinois. Capital expenditures decreased to US$14.4 million in the third quarter compared to US$17.7 million in the prior year third quarter primarily due to the completion of two significant cable and antenna facility moves during fiscal 2007. Cash and cash equivalents were US$119 million at June 30, 2007, compared to US$127 million at March 31, 2007. Cash and cash equivalents decreased from the prior quarter due mainly to the reduction of approximately US$16 million in outstanding debt. Total debt outstanding and debt to capital were US$351 million and 19.6% at June 30, 2007, compared to US$366 million and 19.5% at March 31, 2007. Fiscal 2007 Sales Outlook Due to the pending acquisition of Andrew by CommScope, Inc. (NYSE:CTV), which was announced on June 27, 2007, the company is providing the following sales guidance, but will not be providing any other guidance. Accordingly, previous estimates of future financial or operational performance should be considered obsolete. Sales are now anticipated to range from US$2.15 billion to US$2.20 billion for fiscal 2007, compared to the previous guidance of US$2.20 billion to US$2.30 billion. The revised sales guidance is primarily due to anticipated continuation of reduced spending by two key customers, compared to previous expectations, in the fourth quarter. About Andrew Corp. Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ: ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including China, India, Italy, Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda and Brazil. * * * The Troubled Company Reporter – Asia Pacific reported that Standard & Poor's Ratings Services revised its CreditWatch implications on Andrew Corp. to positive from negative. The 'BB' corporate credit and 'B+' subordinated debt ratings were placed on CreditWatch with negative implications on Aug. 10, 2006. ============= F I N L A N D ============= HILTON HOTELS: Paying US$0.04 Per Share Dividend on Sept. 21 ------------------------------------------------------------ Hilton Hotels Corporation has declared a dividend of US$0.04 per share, payable in cash on Sept. 21, 2007. The dividend is payable to stockholders of record at the close of business on Sept. 7, 2007. Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. Standard & Poor's rating upgrade for Hilton Hotels in March 2007 incorporated the expectation that the company would sell a meaningful level of additional assets over the near term, which would likely lead to additional debt reduction. Still, Standard & Poor's is encouraged by the expected transaction multiple related to today's announcement. If the lodging transaction market remains strong, enabling Hilton Hotels to generate substantial proceeds from remaining asset sales, if these proceeds are used for debt reduction, and if the lodging environment remains strong, an outlook revision to positive could be considered as 2007 progresses. Any movement signaling the potential for a higher rating will depend on Hilton Hotels's commitment to maintaining credit measures aligned with higher ratings over the lodging cycle. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. =========== F R A N C E =========== EUROTUNNEL GROUP: General Meetings Approve Group Accounts --------------------------------------------------------- The general meetings of Eurotunnel P.L.C. and Eurotunnel SA, subsidiaries of Groupe Eurotunnel SA have on July 27, 2007: -- approved the 2005 and 2006 accounts; -- adopted the change of name of the Eurotunnel P.L.C. and Eurotunnel SA to TNU PLC and TNU SA respectively; and -- been informed of the de-listing in London of EPLC and ESA units effective July 30, 2007. The combined Ordinary and Extraordinary General Meeting of Eurotunnel SA and the Annual General Meeting of Eurotunnel P.L.C., which were held in Coquelles, France, brought together 2,516 shareholders, representing 93.15% of the capital, of whom 40 were present for the meeting. The resolutions presented by the Board were all approved by a majority of 99.9%. The ordinary general meeting of Eurotunnel SA approved the annual accounts, the combined accounts and the results for the 2005 and 2006 financial years, ratified the appointment as directors of Colette Neuville and Pierre Bilger and re-appointed as directors Jacques Gounon, Colette Neuville, the Association de Defense des Actionnaires Eurotunnel (ADACTE), Pierre Bilger, Robert Rochefort and Henri Rouanet, for a term of three years. The annual general meeting of Eurotunnel P.L.C. received the 2005 and 2006 reports and accounts, approved the Directors' remuneration report and re-elected as directors, Colette Neuville, Tim Yeo, Jacques Gounon and Robert Rochefort. The extraordinary general meeting of Eurotunnel SA and the annual general meeting of Eurotunnel P.L.C. adopted the name changes for Eurotunnel PLC and Eurotunnel SA which will now be called TNU PLC and TNU SA respectively to avoid any confusion with the new parent company Groupe Eurotunnel SA, of which they have become subsidiaries. The extraordinary general meeting of Eurotunnel SA also decided that the number of directors aged over 75 could not be greater than one third of the Directors at any given time. The company's constitutional documents have been modified accordingly. Delisting of Eurotunnel Units in London Following Eurotunnel's application to cancel the listing of the Units and their admission to trading on the London Stock Exchange, notice of which was duly given to shareholders, the U.K. Listing Authority has confirmed that delisting will be effective on July 30, 2007. "The accounts for 2005 and 2006 which have just been approved by the AGMs of TNU PLC and TNU SA reflect the past debt and show a heavy deficit. The recapitalization of these companies will lead to an almost total dilution of the shareholders who did not tender their shares to the ETO: from now on, the future of Eurotunnel is with Groupe Eurotunnel SA," Mr. Gounon, chairman and CEO of Groupe Eurotunnel disclosed. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group (aka Groupe Eurotunnel S.A.) -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel S.A. (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. ============= G E R M A N Y ============= BEMT BAUGESELLSCHAFT: Creditors' Meeting Slated for Aug. 28 ----------------------------------------------------------- The court-appointed insolvency manager for BEMT Baugesellschaft mbH, Joachim Heitsch will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:45 a.m. on Aug. 28. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:20 a.m. on Dec. 18 at the same venue. Creditors have until Oct. 20 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Joachim Heitsch Berliner Str. 117 10713 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against BEMT Baugesellschaft mbH on July 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BEMT Baugesellschaft mbH Otto-Franke-Str. 105 12489 Berlin Germany BUCKEYE TECHNOLOGIES: Obtains New US$200 Million Credit Facility ---------------------------------------------------------------- Buckeye Technologies Inc. established a new US$200 million senior secured revolving credit facility. The maturity date on the new revolver is July 2012, and the facility includes an increase option for an additional US$50 million. This facility amends and restates the company's existing credit facility, which consisted at the closing date of an undrawn US$70 million revolver and a US$30 million balance on an original US$150 million term loan. The company plans to use the proceeds from this facility to refinance its existing senior credit facilities, to refinance up to US$20 million of its 8.0% senior subordinated notes having a maturity date of October 2010, to refinance the remaining US$60 million of its 9.25% senior subordinated notes in September 2007 (one year ahead of maturity), and for general corporate purposes. The company expects to reduce interest expense by about US$2 million per year on a going basis as a result of this refinancing. [UTF-8?]Buckeye Chairman John B. Crowe commented, â€œOver the past 5 years, we have made tremendous progress in reducing our debt. This new facility allows us to take advantage of our improved credit position and the favorable market conditions to reduce our interest costs and achieve more operating flexibility than we had under our existing credit facility. In addition, this new facility gives us the ability to continue our debt reduction while maintaining sufficient operating liquidity to support our business. We appreciate the leadership provided by Bank of [UTF-8?]America as lead arranger for this facility.â€ About Buckeye Technologies Headquartered in Memphis, Tennessee, Buckeye Technologies Inc. (NYSE:BKI) -- http://www.bkitech.com/-- manufactures and markets specialty fibers and nonwoven materials. The company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods. * * * As reported in the Troubled Company Reporter on June 19, 2007, Moody's upgraded Buckeye Technologies Inc.'s corporate family rating to B1 from B2 and maintained a stable outlook. All other ratings were upgraded by one notch while the unsecured notes were affirmed at B2. COREL CORP: May 31 Balance Sheet Upside-Down by US$16 Million ------------------------------------------------------------- Corel Corporation reported total assets of US$260.6 million, total liabilities of US$276.6 million, and total stockholders' deficit of US$16 million as of May 31, 2007. Revenues for the second quarter of fiscal 2007 were US$65. million, an increase of 47% over revenues of US$44.2 million in the second quarter fiscal 2006. Net income in the second quarter of fiscal 2007 was US$2.3 million, compared to a net loss of US$4 million in 2006. Revenues for the six months ended May 31, 2007 were US$117.7 million, an increase of 33% over revenues of US$88.5 million for the six months ended May 31, 2006. Net loss for six months ended May 31, 2007, was US$9.6 million, compared to a net loss of US$5.6 million for the six months ended May 31, 2006. "We are pleased with our performance in the second quarter, as we continue to execute our key strategies and demonstrate our ability to g enerate attractive financial returns for our shareholders," said David Dobson, chief executive offier of Corel Corporation. "We are realizing many of the anticipated benefits from the acquisition of InterVideo and Ulead, including increased revenue contribution from a broader mix of OEM partners as well as a more diverse mix of revenue by geography. I am pleased with the progress we have made so far as we continue to execute on our core strategic initiatives and expand into the digital media market." A full-text copy of the company's second quarter report is available for free at http://researcharchives.com/t/s?21f7 Third Quarter Fiscal 2007 Guidance Corel provided guidance for the third quarter ending Aug. 31, 2007. The company currently expects revenue in the range of US$60 million to US$62 million and net loss of US$500,000 to net income US$1 million. Fiscal 2007 Guidance Corel provided guidance for the year ending Nov. 30, 2007. The company currently expects revenue in the range of US$247 million to US$253 million and net loss of US$4 million to US$2 million. About Corel Corporation Ottawa, Ontario-based Corel Corp. (NASDAQ: CREL) (TSX: CRE) -- http://www.corel.com/-- is a packaged software company with an estimated installed base of over 40 million users. The Company provides productivity, graphics and digital imaging software. Its products are sold in over 75 countries through a scalable distribution platform comprised of original equipment manufacturers, Corel's international websites, and a global network of resellers and retailers. The Company's product portfolio features CorelDRAW(R) Graphics Suite, Corel(R) WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro, and Corel Painter(TM). The company has operations in Germany, Italy, the United Kingdom, Australia, Japan, Korea, Brazil, and Mexico, among others. DAIMLERCHRYSLER: W. Bernhard to Head New Chrysler, Report Says -------------------------------------------------------------- Wolfgang Bernhard is set to become the chairman of the new Chrysler once Cerberus Capital Management LP completes its purchase of the automaker from DaimlerChrysler AG, the New York Times reports, quoting a person familiar with the company’s plans. According to the report, Thomas W. LaSorda will remain as Chrysler’s chief executive, a position he has held since the beginning of 2006. Chrysler is also expected to name the members of two boards, one for the auto company and another for a holding company that will be created when the sale is completed, which may be as early as this week. Mr. Bernhard left Chrysler to become the head of Mercedes-Benz in the spring of 2004, but he clashed with DaimlerChrysler executives who felt his efforts to cut costs were too aggressive. Mr. Bernhard became chairman of the Volkswagen brand a year later but left as part of a management shake-up earlier this year, the Times states. Cerberus asked him to be one of its advisors in its efforts to acquire Chrysler. The TCR-Europe reported on July 27, 2007, that bankers for Chrysler have deferred a US$12 billion debt sale to investors as part of a buyout severing the unit from its German parent. Rather than fund the operations of the newly independent auto maker with money raised from loans, as planned, the underwriters of the deal -- five banks led by J.P. Morgan Chase & Co. -- will have to provide much of the money themselves, at least until the market settles down. Executives at the automaker's parent company were quick to reassure investors that the financing problem will not affect the purchase of the Chrysler Group by private equity firm Cerberus, which had signed to buy an 80% stake in the U.S. Arm. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. FRESENIUS SE: Fitch Affirms Low-B Ratings on Debt Instruments ------------------------------------------------------------- Fitch Ratings has affirmed Germany-based healthcare group, Fresenius SE (fka Fresenius AG) and its entities and their respective debt instruments: * Fresenius Medical Care Capital Trusts: -- Subordinated rating for the guaranteed trust preferred securities 'B+' * Fresenius SE: -- Long-term Issuer Default rating 'BB'/Stable Outlook -- Short-term IDR 'B' -- Senior unsecured debt rating 'BB' * Fresenius Finance B.V.: -- Senior unsecured debt rating for the guaranteed senior notes 'BB' * Fresenius Medical Care AG & CO. KGaA: -- Long-term IDR 'BB'/Stable Outlook -- Short-term IDR 'B' -- Senior unsecured debt rating 'BB' The ratings are supported by Fresenius's excellent market positioning in the non-cyclical, steady- growth dialysis market with stable and relatively predictable cash flow generation. The ratings also reflect the group's vertical integration into the manufacturing of hemodialysis machines and supplies and peritoneal dialysis products and accompanying cost advantages, which allow the group to build on its reputation for quality services. The ratings are constrained by Fresenius's over- reliance on just one disease area, exposure to private insurers' and governments' reimbursement policies and appetite for acquisitions. Despite the improvement in debt protection measures seen during fiscal year 2006, the Stable Outlook takes into consideration the likelihood of further debt-funded acquisitions. Fitch will assess the impact of any large acquisitions focusing on their strategic fit and funding mix. As the largest globally operating dialysis service and product provider, FMC benefits from a geographical broad network of dialysis clinics. As 70% of group's EBITDA is derived from dialysis, Fresenius is over reliant on one treatment area and thus exposed to potential substitution and technology changes. It is furthermore reliant on private insurers' and governments' reimbursement policies. Although legislative or reimbursement practice changes may have a negative effect on Fresenius's profitability, Fitch expects no dramatic changes in legislation in the medium term. Fresenius's EBITDA margin had remained fairly stable at about 16% since 2002 before it increased to 17.1% in FY06, driven by the Renal Care Group acquisition. In fiscal year 2006 Fresenius SE managed to reduce its net debt-to- EBITDA leverage ratio to 3x, which was about what it had targeted for 2008 of under 3x. The group's FY06 net adjusted debt/EBITDAR was, however, still high at 3.9x (2.8x de-consolidating FMC and only including dividends and payments for services and leases from Fresenius Medical Care to Fresenius SE). At YE06, operating EBITDAR/net interest plus rents ratio stood at 2.9x (FY05: 3.1x) for the group and at 4.8x on a de-consolidated basis. While Fresenius Kabi business is expected to remain highly cash generative, Fresenius ProServe's cash flows are likely to remain weak due to capital expenditure requirements and planned acquisitions. The 'BB' unsecured rating for Fresenius SE and FMC reflects Fitch's view of average recovery prospects on default. While the US$500 million senior notes issued by FMC benefit from unsecured guarantees provided by certain FMC's top operating subsidiaries, any claims from FMC's creditors will rank after its secured bank loan creditors. The senior notes issued by Fresenius Finance B.V. benefit from senior unsecured guarantees provided by Fresenius Kabi and Fresenius ProServe and are supported by the economic value of Fresenius SE's 36% equity in FMC. INDUSTRIEPLANUNG FISCHER: U.S. Court Grants Relief Under Ch. 15 --------------------------------------------------------------- The Hon. William R. Sawyer of the U.S. Bankruptcy Court for the Middle District of Alabama issued an order granting IndustriePlanung Fischer Aktiengesselschaft relief under Chapter 15 of the U.S. Bankruptcy Code. The order recognizes the Debtor's foreign proceedings pending in the District Court of Bad Hombrg v.d. Hoehe in Germany as a foreign main proceeding. The order enjoins creditors and other parties from commencing any actions that would disrupt the orderly administration of the Debtor's estate. The German court initiated bankruptcy proceedings against the Debtor on June 30, 2006, pursuant to the German Bankruptcy Act, and appointed Angelika Amend as insolvency administrator. Chapter 15, which became effective Oct. 17, 2005, broadens the mechanism through which representatives of non-U.S. proceedings might obtain relief, including injunctive relief, in the United States, expands the powers of U.S. Bankruptcy Courts, and enhances the rights of both U.S. and non-U.S. creditors. Headquartered in Friedrichsdorf, Germany, Industrieplanung Fischer Aktiengesselschaft provides engineers for general contracting operations. Angelika Amend, in her capacity as foreign representative for the Debtor, filed a chapter 15 petition under the U.S. Bankruptcy Court for the Middle District of Alabama in Montgomery (Bankr. M.D. Al. Case No. 07-30662) on May 9, 2007. Robert Wayne Hendrick, Esq., of Hendrick & Hendrick, represents Ms. Amend in the proceedings. As of petition date, the Debtor's estimated assets and debts is between US$1 million to US$10 million. ============= H U N G A R Y ============= AES CORP: Shuts Down Two Units at Alamitos Power Station -------------------------------------------------------- The California Independent System Operator said in a report that The AES Corporation has closed down its 485-megawatt Unit 5 and 335-megawatt Unit 4 at its Alamitos natural gas-fired power station in California for unplanned work. Reuters relates that the 1,997-megawatt Alamitos plant is in Long Beach in the Los Angeles County. It has six units, including: -- 175-megawatt Unit 1, -- 175-megawatt Unit 2, -- 332-megawatt Unit 3, -- 335-megawatt Unit 4, -- 485-megawatt Unit 5, and -- 495-megawatt Unit 6. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES has been in Eastern Europe for over ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * In Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. SUN MICROSYSTEMS: Earns US$329 Million in Quarter Ended June 30 --------------------------------------------------------------- Sun Microsystems Inc. reported financial results for its fourth quarter and full fiscal year, which ended June 30, 2007, exceeding its operating margin target, improving gross margin and delivering another sequential quarter of profit. Net income for the fourth quarter of fiscal 2007 on a GAAP basis was US$329 million, or US$0.09 per share on a diluted basis. For the full fiscal year, net income was US$473 million, or US$0.13 per share, on a diluted basis, as compared with a net loss of US$864 million, or (US$0.25) per share, for fiscal 2006. Revenues for the fourth quarter of fiscal 2007 were US$3.835 billion. For the full fiscal year, the Company reported revenues of US$13.873 billion, an increase of 6.2 percent over fiscal year 2006. Total gross margin as a percent of revenues for the fourth quarter was 47.2 percent, and gross margin for the full fiscal year was 45.2 percent, an increase of 2.1 percentage points over fiscal year 2006. Operating margin for the fourth quarter was 8.5 percent. Cash generated from operations for the fourth quarter of fiscal 2007 was US$564 million, and cash and marketable debt securities balance at the end of the quarter was approximately US$5.9 billion. "With a solid strategy and consistent execution, we delivered on our commitment to achieve at least 4 percent operating margin in the fourth quarter. This milestone marks significant progress toward our longer-term growth plan of at least 10 percent operating margin for the full fiscal year 2009," said Jonathan Schwartz, president and CEO of Sun Microsystems. "The Solaris(TM) 10 Operating System continues to fuel opportunity for us and our partners, allowing customers to leverage built-in virtualization to harvest more value from their datacenters, without the unnecessary expense of separate software licenses." Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, among others. * * * Moody's Investors Service confirmed its Ba1 Corporate Family Rating for Sun Microsystems Inc. in connection with Moody's Investors Service's implementation of its new Probability-of- Default and Loss-Given-Default rating methodology for the U.S. Technology Hardware sector. Sun Microsystems, Inc.'s 7.65% Senior Notes due Aug. 15, 2009, carry Moody's Investors Service's Ba1 rating and Standard & Poor's BB+ rating. ============= I R E L A N D ============= COMMSCOPE INC: Second Quarter Net Income Rises to US$61.1 Mln ------------------------------------------------------------- CommScope Inc. recorded second quarter sales of US$519.1 million and net income of US$61.1 million, or US$0.83 per diluted share. For the second quarter of 2006, CommScope reported sales of US$411.9 million and net income of US$46.6 million, or US$0.65 per diluted share. The reported second quarter 2006 net income included an after-tax gain of US$18.6 million related to the recovery on a note receivable from OFS BrightWave, LLC and after-tax charges of US$2.6 million related to restructuring costs. Excluding these special items, adjusted earnings were US$30.6 million, or US$0.43 per diluted share. "We are pleased to deliver another record quarter as we expand our global leadership in infrastructure solutions for communications networks," said CommScope Chairman and Chief Executive Officer, Frank M. Drendel. "We believe that customer demand for bandwidth remains strong and we look forward to building upon positive industry fundamentals. "We are also excited about the pending acquisition of Andrew Corporation, which we announced last month. We are moving forward and continue to expect the transaction to close before the end of 2007," Mr. Drendel added. Sales Overview Sales for the second quarter of 2007 increased 26.0 percent year over year, driven by increased customer demand across all business segments and price increases in the Enterprise and Broadband segments due to higher material costs, which were implemented in the first half of 2006. The company experienced particularly strong sales growth in the Carrier segment. Enterprise segment sales rose 16.7 percent year over year to US$239.4 million, primarily due to higher sales volume, favorable mix and price increases implemented in 2006 in response to higher costs. CommScope continues to experience success with its high-performance and industry-leading products, including the SYSTIMAX(R) GigaSPEED(R) X10D unshielded twisted pair cabling solution and the innovative iPatch(R) Real Time Infrastructure Management System, as enterprises upgrade their networks to manage expected bandwidth requirements. Enterprise sales grew in all geographic regions. Broadband segment sales rose 19.7 percent year over year to US$163.4 million, primarily due to higher sales volumes, price increases implemented in the first half of 2006 in response to higher material costs and the positive impact of the Signal Vision, Inc. acquisition, which closed on May 1, 2007. Competition between cable television and telephone companies has resulted in ongoing investment in their networks to support expanded video, data and voice services, which has stimulated Broadband sales. Broadband sales growth in the quarter was strongest in the Latin American and North American regions. Carrier segment sales increased 64.4 percent year over year to US$116.7 million. This robust growth is primarily the result of large domestic wireline carriers continuing to deploy broadband services to their customers. The Carrier segment has been CommScope's fastest growing and most volatile segment. Total international sales for the second quarter of 2007 rose 20.5 percent year over year to US$160.1 million, or approximately 30.8 percent of total company sales. External orders booked in the second quarter of 2007 were US$548.3 million, up 12.2 percent from the year-ago quarter. Andrew Acquisition On June 27, 2007, CommScope and Andrew Corporation announced a definitive agreement, unanimously approved by their respective Boards of Directors, under which CommScope will acquire all of the outstanding shares of Andrew for US$15.00 per share, at least 90 percent in cash. The combined company will be a global leader in infrastructure solutions for communications networks, including: * structured cabling solutions for the business enterprise; * broadband cable and apparatus for cable television applications; and * antenna and cable products, base station subsystems, coverage and capacity systems, and network solutions for wireless applications. "With this acquisition, we are advancing CommScope's position as a worldwide leader in 'last mile' solutions and are creating important cost reduction and growth opportunities that we believe will drive increased shareholder value," Mr. Drendel stated. "We intend to build upon the complementary global product offerings to provide customers with a broader array of infrastructure solutions for video, voice, data and mobility." The total transaction value is approximately US$2.6 billion, based on Andrew's estimated 176 million shares outstanding on a fully diluted basis, which includes shares associated with Andrew's existing convertible notes. CommScope expects to fund the cash portion of the purchase price through a combination of new credit facilities and available cash on hand. CommScope has obtained customary fully underwritten debt financing commitment letters from Bank of America and Wachovia Bank, N.A. (and their respective affiliates). The transaction is expected to close before the end of 2007 and is not conditioned on receipt of financing by CommScope. The transaction is subject to completion of customary closing conditions, including effectiveness of a registration statement on Form S-4, approval by Andrew's stockholders, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and any other applicable laws or regulations. On July 16, 2007, CommScope and Andrew submitted their pre- merger notification filings as required under the Hart-Scott-Rodino Act. "Our revised revenue guidance reflects expectations of continued strength across all of our business segments," said Executive Vice President and Chief Financial Officer, Jearld L. Leonhardt. "However, material costs continue to rise and we may not be able to fully recover these costs in the short term. As a result of this volatility, we expect operating margin in the second half of 2007 to be lower than the first half of the year. Nonetheless, we are pleased to raise 2007 guidance and to be in a position to achieve record calendar year financial performance." Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) -- http://www.commscope.com/-- designs and manufactures "last mile" cable and connectivity solutions for communication networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with high-performance wired or wireless cabling solutions. CommScope has facilities in Brazil, Australia, China and Ireland. * * * As reported in the Troubled Company Reporter-Latin America on July 2, 2007, Moody's Investors Service placed CommScope Inc.'s ratings under review for downgrade after their announced intent to acquire Andrew Corp. for US$2.6 billion. The ratings under review for downgrade include: -- Corporate Family Rating, Ba2 -- US$250 million Convertible Senior Subordinated Debentures due 2024, Ba3 SIGMA-1 CLO-2007: Fitch Rates EUR19.8 Class F Notes at BB --------------------------------------------------------- Fitch Ratings has assigned EUR66.3 million of SIGMA-1 CLO-2007 Ltd.'s issue of EUR109.5 million floating-rate notes, due 2017, final ratings: -- EUR0.5 million Class A secured floating-rate notes (ISIN: XS0313508672): 'AAA' -- EUR6.15 million Class B secured floating-rate notes (ISIN: XS0313508755): 'AA+' -- EUR17.6 million Class C secured floating-rate notes (ISIN: XS0313508839): 'A+' -- EUR6.8 million Class D secured floating-rate notes (ISIN: XS0313509134): 'A-' -- EUR15.45 million Class E secured floating-rate notes (ISIN: XS0313509480): 'BBB' -- EUR19.8 million Class F secured floating-rate notes (ISIN: XS0313509647): 'BB' The Class G and H notes, totaling EUR33.2 million and EUR10 million, respectively, are not rated. The transaction is a partially-funded synthetic CDO referencing a predominantly German portfolio (80%) of senior unsecured German law governed obligations of medium and large corporate entities arising from loans (including syndicated loans), facilities, letters of credit or guarantees originated and credit-assessed by Dresdner Bank AG. The ratings of the notes are based on the available credit enhancement, the credit quality of the reference portfolio and available collateral, the strength of the guarantee counterparties and the sound financial and legal structure of the transaction. Credit enhancement of the Class A notes, totaling 5%, is provided by the Class B notes (0.28%), Class C notes (0.81%), Class D notes (0.31%), Class E notes (0.71%), Class F notes (0.91%) and the unrated Class G and H notes (together 1.98%). At closing, Dresdner Bank AG entered into a loss guarantee with the issuer. Under the guarantee, the issuer sold credit protection against losses of up to EUR109.5 million on the EUR2.18 billion reference portfolio to Dresdner Bank AG. The issuer hedged itself by issuing credit-linked notes. The issuer invested the note issuance proceeds in cash collateral deposited at Dresdner Bank AG. The transaction features a three-year replenishment period, subject to the eligibility and replenishment criteria, which include a weighted average life covenant, as well as country- specific and rating-dependent debtor group concentration limits. The country-specific concentration criteria ensure that at least 80% of the reference portfolio notional is represented by German claims. Replenishments are subject to the Fitch VECTOR test. The final ratings address the ultimate repayment of principal at maturity and timely payment of interest according to the terms and conditions of the notes. SIGMA-1 CLO-2007 Ltd. is a bankruptcy-remote SPV incorporated in Ireland and domiciled in Dublin. W.R. GRACE: Delaware Court Terminates Exclusive Periods ------------------------------------------------------- The Hon. Judith Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware notes that despite more than six years of exclusivity, W.R. Grace & Co. and its 61 debtor affiliates have not been able to forge an agreement to achieve a consensus with respect to asbestos personal injury liabilities and certain asbestos-related property damage claims, notwithstanding their filing of a disclosure statement and a plan of reorganization on November 13, 2004. The Plan and Disclosure Statement were amended on January 13, 2005, after vehement opposition by representatives of Personal Injury Claimants, the Future Claims Representative, and other constituents, Judge Fitzgerald relates. The Plan amendments resolved certain issues but failed to resolve some issues relating to Asbestos Personal Injury Liabilities, the Court points out. Those issues remain unresolved and litigation is ongoing regarding PI Liabilities estimation and there are numerous discovery disputes, including, but not limited to, those concerning the PI Questionnaires propounded by the Debtors, the reliability of x-rays and B- reads, confidentiality and sources of information, evidentiary matters, and Daubert issues. No further amendments to the Plan and Disclosure Statement have been filed since January 2005. In their latest request, the Debtors emphasized to the Court that the estimation trial for their PI Liabilities must first be concluded so that the results can be incorporated into the Plan. Various counsel have argued, and Judge Fitzgerald finds, that without an agreement as to the Asbestos PI Liabilities, the PI Estimation Trial must conclude and rulings must be issued before a plan of reorganization can be confirmed. The PI Estimation Trial is currently set for January through April 2008. "The Debtors have had sufficient exclusive time to control negotiations with creditors and to propose and confirm a feasible plan," Judge Fitzgerald holds. "[Yet they] have failed to establish that extending exclusivity will result in advancing their case towards resolution." Accordingly, Judge Fitzgerald terminates the period by which the Debtors may exclusively file a plan and solicit votes of that plan. Termination of the Debtors' exclusivity will facilitate moving their bankruptcy cases toward conclusion by changing the dynamics for negotiation while permitting the Debtors to continue to operate their business, resolve claims, and participate in negotiations, Judge Fitzgerald opines. Termination of exclusivity will not prejudice any party or adversely affect the progress of the case pending estimation, the Court adds. In light of the Court's ruling, any creditor now has the right to file a competing plan in the Debtors' cases. "Grace is disappointed in the ruling, but was happy to see Judge Fitzgerald reaffirms her commitment to the estimation process and endorse the way the company is being run," Grace spokesman Greg Euston told Bloomberg News. About W.R. Grace Headquartered in Columbia, Md., W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally, including Argentina, Australia, and Ireland. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). James H.M. Sprayregen, Esq., at Kirkland & Ellis, and Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan LLP represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Anderson Kill & Olick, P.C., represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Martin W. Dies, III, Esq., at Dies & Hile L.L.P., and C. Alan Runyan, Esq., at Speights & Runyan,to represent it. Lexecon, LLP, provided asbestos claims consulting services to the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. (W.R. Grace Bankruptcy News, Issue No. 135; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ========= I T A L Y ========= ALITALIA SPA: Berardino Libonati Quits as Chairman -------------------------------------------------- Berardino Libonati has resigned as Alitalia S.p.A.'s chairman and director, various reports say. Alitalia said in statement that Mr. Libonati's resignation was related to the sale process initiated by the Italian government, which holds a 49.9% stake in the national carrier. According to the statement, Mr. Libonati resigned after the sale process failed to locate a buyer for Italy's 39.9% stake, with a view to find "more appropriately operative solutions." Mr. Libonati, who held no managerial powers while at Alitalia, said the carrier needs people with "managerial experience and abilities and familiarity with the sector." Nominee Following Mr. Libonati's resignation, the Finance Ministry nominated Maurizio Prato as Alitalia's next chairman holding managerial powers. "This is also in consideration of the many years of managerial experience at primary companies of Mr. Prato, including those in the air transport sector, as well as in company restructuring and privatization," Agenzia Giornalistica Italia reports. The ministry, AGI relates, hopes that Alitalia's new management could find qualified buyers for the government's stake in the carrier. "These subjects must work to promote the rehabilitation, development and promotion of Alitalia, taking into account the profiles of general interest believed to be inseparable by the Government in view of a continuity and adequacy of air transport service in Italy," the Finance Ministry said in a statement. Italy terminated the sale process after AP Holding S.p.A., a consortium of AirOne S.p.A. and Intesa-San Paolo S.p.A., withdrew its bid to acquire the stake. AP Holding said that after reviewing the terms and conditions of the sale, it will not submit a binding offer for the stake. The Financial Times had suggested that TPG Capital may re-enter the race and regroup with MatlinPatterson for a joint bid. Government officials, however, revealed to FT that MatlinPatterson was no longer involved in the bidding. The bidders had been apprehensive of the bidding conditions set by the Italian government and had cited these requirements as reasons for their withdrawal. Italian Prime Minister Romano Prodi told FT that Alitalia's sale process was not concluded as the government expected, adding that they are currently reviewing options to salvage the carrier. 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. BANCA ITALEASE: Posts EUR387.71 Mln Net Loss for First Half 2007 ---------------------------------------------------------------- Banca Italease S.p.A. posted EUR387.71 million in net losses and EUR613.67 million in operating losses for the first half of 2007, compared with EUR73.39 million in net profit and EUR100.19 million in operating profit for the same period in 2006. Total assets increased from EUR19.0 billion as of Dec. 31, 2006, to EUR21.2 billion as of June 30, 2007, mainly due to an increase in customer receivables from EUR16.2 billion to EUR17.8 billion. Taking into account the net loss for the first half, the company's shareholders' equity decreased from EUR1.04 billion as of Dec. 31, 2006, to EUR877.6 million as of June 30, 2007. Headquartered in Milan Italy, Banca Italease S.p.A. -- http://www.italease.it/-- provides retail, corporate and subsidized leasing services, medium and long-term lending, insurance products, factoring, long-term car leasing, and Interest Rate Swap (IRS) contracts. BANCA ITALEASE: Fitch Cuts Ratings to E on Parent Bank’s Loss ------------------------------------------------------------- Fitch Ratings has downgraded Banca Italease's Individual rating to 'E' from 'D/E'. The bank's other ratings are affirmed at Long-term Issuer Default Rating 'BBB-' with Stable Outlook, Short-term IDR 'F3' and Support '2'. The bank's EUR150 million trust preferred securities are affirmed at 'BB', in line with Fitch's notching methodology for issuers whose Long-term IDR is derived from institutional support. The downgrade of Italease's Individual rating follows management's announcement on July 27, 2007 that the group's parent bank had made an operating loss of EUR614 million for H107, which means that Italease will require external support. Italease's Long-term IDR remains at its Long-term rating floor and reflects support from its main shareholders, who have confirmed their commitment to the bank and will participate in the planned rights issue of up to EUR700 million. Fitch expects that support would be extended until Italease's situation has stabilized. Italease's H107 loss was primarily caused by a EUR686 million impairment charge on the bank's credit exposure arising from derivative products sold to customers, accounted for as a trading loss. At end-June 2007 Italease's gross client exposure arising from derivative products amounted to EUR920.4 million, which the bank has written down to EUR132.4 million. In addition the parent bank booked a EUR33 million loan impairment charge on its exposure to the defaulted Coppola group. While net interest revenue at the parent bank increased 27% in H107, net commission income dropped sharply as a result of the trading losses in derivatives. As a result of its EUR388 million net loss, the parent bank's equity fell to EUR877.6 million at end- June 2007. The loss has weakened Italease's capitalization significantly. But it does not, in Fitch's opinion, necessarily imply that the bank would have defaulted if Italease's shareholders had decided against providing support. Therefore, based on the information available, Fitch does not consider Italease to have failed. Should further losses materialize that would have effectively depleted the bank's capital in the absence of support, Fitch will downgrade Italease's Individual rating to 'F' as it would have failed according to the agency's definitions. To meet the agency's definition of failure, a bank must either have defaulted, or in Fitch's opinion, would have defaulted if it had not received external support. Fitch will continue to monitor developments at the bank and notes that its Individual rating could benefit from a sufficient capital increase, improved controls and from a sustainable business model for its new business. FIAT SPA: Wants to Reacquire TK Aluminum Ltd. --------------------------------------------- Fiat S.p.A. submitted an offer to reacquire former subsidiary TK Aluminum Ltd., the Financial Times reports citing people close to the talks. Until September 2002, Teksid Aluminum, currently TK Aluminum's operating arm, was a division of Teksid S.p.A., which was owned by Fiat. Through a series of deals completed between Sept. 30, 2002 and Nov. 22, 2002, Teksid S.p.A. sold its aluminum foundry business to a consortium of investment funds led by equity investors that include affiliates of each of Questor Management Company, LLC, JPMorgan Partners, Private Equity Partners SGR SpA and AIG Global Investment Corp. As a result of the sale, Teksid Aluminum is now owned by its equity investors through TK Aluminum Ltd., a Bermuda holding company. According to FT, Fiat has yet to hear from 15 investment groups involved with Questor. FT suggests that the bid price is likely to be very low given TK's financial problem. The newspaper adds that if a deal was accepted, TK would be the third supplier that Fiat has acquired this year. About TK Aluminum Headquartered in Carmagnola, Italy, TK Aluminum Ltd. -- http://www.teksidaluminum.com/-- manufactures cast aluminum components for the auto industry through its Teksid Aluminum unit. Questor Management Company owns 53% of TK Aluminum; JP Morgan Chase owns 28% through subsidiary JPMP Capital. About Fiat SpA Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As of June 19, 2007, Fiat S.p.A. carries Moody's Long-Term Corporate Family Rating of Ba2 and Probability of Default Rating at Ba2 with Outlook Positive. Standard & Poor's give Long-Term Foreign and Local Issuer Credit Ratings of BB+ for Fiat. Its Short-term Foreign and Local Issuer Credit Ratings are at B with Positive Outlook. Dominion Bond Rating Service gives Fiat a Long-term Issuer Rating of BB with Positive Outlook. TK ALUMINUM: Receives Acquisition Offer from Fiat SpA ----------------------------------------------------- TK Aluminum Ltd. received an acquisition offer from former owner Fiat S.p.A., the Financial Times reports citing people close to the talks. Until September 2002, Teksid Aluminum, currently TK Aluminum's operating arm, was a division of Teksid S.p.A., which was owned by Fiat. Through a series of deals completed between Sept. 30, 2002 and Nov. 22, 2002, Teksid S.p.A. sold its aluminum foundry business to a consortium of investment funds led by equity investors that include affiliates of each of Questor Management Company, LLC, JPMorgan Partners, Private Equity Partners SGR SpA and AIG Global Investment Corp. As a result of the sale, Teksid Aluminum is now owned by its equity investors through TK Aluminum Ltd., a Bermuda holding company. According to FT, Fiat has yet to hear from 15 investment groups involved with Questor. FT suggests that the bid price is likely to be very low given TK's financial problem. The newspaper adds that if a deal was accepted, TK would be the third supplier that Fiat has acquired this year. About Fiat SpA Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. About TK Aluminum Headquartered in Carmagnola, Italy, TK Aluminum Ltd. -- http://www.teksidaluminum.com/-- manufactures cast aluminum components for the auto industry through its Teksid Aluminum unit. Questor Management Company owns 53% of TK Aluminum; JP Morgan Chase owns 28% through subsidiary JPMP Capital * * * As of Aug. 1, 2007, TK Aluminum Ltd. carries Caa3 long-term corporate family rating from Moody's Investors Service. Outlook is stable. =================== K A Z A K H S T A N =================== DOSTYK-AGRO LLP: Creditors' Claims Due on Sept. 5 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Dostyk-Agro insolvent on June 8. Creditors have until Sept. 5 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 =================== K Y R G Y Z S T A N =================== POLIGAM 2: Creditors Must File Claims by September 7 ---------------------------------------------------- LLC Poligam 2 has declared insolvency. Creditors have until Sept. 7 to submit written proofs of claim to: LLC Poligam 2 Fuchik Str. 3 Bishkek Kyrgyzstan Tel: (+996 312) 65-85-48 ================= L I T H U A N I A ================= MAZEIKIU NAFTA: Fitch Affirms and Withdraws B IDR ------------------------------------------------- Fitch Ratings has affirmed Lithuanian oil refining company Mazeikiu Nafta AB's Long-term Issuer Default rating at 'B+' with a Positive Outlook and Short-term IDR at 'B' and simultaneously withdrawn them. Fitch will no longer provide separate rating coverage of MN given that the company is now an integral part of the Polski Koncern Naftowy ORLEN S.A. group. MN is the largest oil refining company in the Baltic States. It is majority owned by Poland-based oil refining and marketing company PKN. ===================== N E T H E R L A N D S ===================== EUROSAIL-NL: Moody's Rates Classes E1 & ET Notes at Low-B --------------------------------------------------------- Moody's Investors Service assigned these definitive ratings to six classes of notes issued by Eurosail-NL 2007-1 B.V.: -- Aaa to EUR306,250,000 Class A Mortgage-Backed Notes due April 2040; -- Aa1 to EUR14,525,000 Class B Mortgage-Backed Notes due April 2040; -- Aa3 to EUR14,000,000 Class C Mortgage-Backed Notes due April 2040; -- Baa2 to EUR12,775,000 Class D Mortgage-Backed Notes due April 2040; -- Ba2 to EUR2,450,000 Class E1 Mortgage-Backed Notes due April 2040; and -- Ba3 to EUR11,200,000 Class ET Notes due April 2040. The ET Notes are not backed by mortgage collateral but will be paid back by available excess spread. Interest payments on the ET Notes rank pari passu with payments to the E1 Notes. Moody's previously assigned provisional ratings to these notes on June 29, 2007. Eurosail-NL 2007-1 B.V. is the first transaction backed by a pool of non-conforming mortgages in the Netherlands. The transaction includes loans originated by ELQ Portefeuille-I B.V., a Dutch subsidiary of Lehman Brothers, to borrowers with current and cured arrears registrations with the Dutch credit bureau ("Bureau Krediet Registratie"), borrowers who self certify their income, and combinations of the above categories. Moody's believes that these products are riskier than products which do not exhibit these characteristics, and that there is some uncertainty as to how the pool would perform during an economic downturn. 25.2% of borrowers have at least one current arrears registration at the Dutch credit bureau, and 66.6% of borrowers have at least one cured arrears registration. 12.5% of loans in the portfolio were provided to borrowers with an arrears registration on a previous mortgage loan. 2.5% of loans in the portfolio were provided to borrowers who restructured their personal debt under the law "Schuldsanering". 48.7% of borrowers self certified their income. This includes borrowers with current and/or cured arrears registrations at the BKR. The enhancement levels address the uncertainty as to how the pool would perform during an economic downturn. The transaction benefits from a fixed-to-floating swap, which hedges the interest rate risk on the fixed rate mortgages. Additionally the transaction benefits from a swap hedging the basis risk between the floating rate mortgages and the notes interest. Credit enhancement is provided by the excess spread, to cover losses and to replenish the Reserve Fund if needed. Further credit enhancement is provided by the Reserve Fund, which is fully funded at closing, at EUR3,500,000 (1.0 per cent of the initial Class A -- E1 notes balance) and the subordination of the notes. There is a liquidity facility in place of 5.5 per cent of the initial Class A-E1 Notes balance amortizing at 8 per cent of the outstanding balance. The master servicer for the transaction is ELQ Hypotheken N.V. Transaction payment services are sub contracted to STATER Nederland B.V., which also serves as a backup servicer. The ratings address the expected loss posed to investors by the legal final maturity. In Moody's opinion, the structure allows for the timely payment of interest and ultimate payment of principal by the legal final maturity. 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. FOOT LOCKER: Kicks Off Plans to Support Business Operations ----------------------------------------------------------- Foot Locker Inc. has initiated several steps during the second quarter that are designed to strengthen its business operations. Among those actions are: -- Merchandise Inventory Reduced through Aggressive Clearance Strategy -- Additional U.S. Stores Identified for Potential Early Closure -- More Aggressive Store Opening Plans Being Developed for Foot Locker Europe -- Senior Division Management Changes The company updated its financial forecast for its second quarter 2007 primarily to reflect the impact of the merchandise inventory clearance activity. As a result of that and other actions, the company currently expects to report a loss in a range of US$0.17-to-US$0.20 per share. This range reflects increased markdowns in the company's U.S. stores of approximately US$55 million at cost, or approximately US$0.22 per share, versus the same period last year to liquidate slow- selling merchandise. The company's estimate for the second quarter that was provided at the beginning of the period was net income of US$0.15-to-US$0.20 per share. The company also updated its financial forecast for the second quarter to reflect that its comparable-store sales are expected to decrease 7-to-8 percent. "During the second quarter, we made the strategic decision to liquidate slower-selling merchandise in our U.S. stores more aggressively than we had planned at the beginning of the quarter, with an objective of improving our inventory position before the start of the fall season," stated Matthew D. Serra, Foot Locker, Inc.'s Chairman and Chief Executive Officer. "The financial impact of implementing this important strategy was the primary reason for the projected net loss for the second quarter of 2007. We expect our international units will produce a double-digit division profit increase versus last year's comparable period." The company's financial position continued to strengthen during the second quarter, as its cash position, net of debt, is expected to increase by approximately US$50 million from the same time last year. Merchandise inventory at the end of the second quarter is expected to be lower than at the same period last year. During the first six months of the year, the company repurchased 2.3 million shares of its common stock for US$50 million under a three-year US$300 million share repurchase program. Additional shares may be purchased this year based on market conditions and other factors. Through an extensive review of its store base, the company identified a number of unproductive domestic stores that it is pursuing to close over the next several months. Depending on the success in negotiating settlements with its landlords, a total of up to 250 stores will be closed in 2007. This is approximately twice the number of stores that the company had originally planned to close in 2007 and, as a result of this action, it is expected that the profitability of the company's U.S. store base will be enhanced, beginning in 2008. At the same time, the company is in the process of developing plans to open additional Foot Locker stores more aggressively in the European and surrounding markets. During 2008, the company currently expects to open up to 30 new stores in this region that will be managed by the Foot Locker Europe management team. Three key management changes were also announced, effective Aug. 6, 2007. Keith Daly, currently President and CEO of Foot Locker Europe since 2005, was promoted to President and CEO of Foot Locker U.S. with responsibility for the company's Foot Locker, Footaction and Kids Foot Locker stores in the U.S. Mr. Daly will be replaced by Dick Johnson, who has been President and CEO of Footlocker.com since 2003. An executive search is currently being conducted to identify a suitable candidate to replace Mr. Johnson. Dowe Tillema was promoted to Executive Vice President of Footlocker.com and will continue in his role as Chief Financial Officer of this division. The company also confirmed that it had retained Lehman Brothers as an advisor to work with the company to evaluate strategic alternatives, including inquiries received from private equity firms. Headquartered in New York City, Foot Locker, Inc. (NYSE: FL) -- http://www.footlocker-inc.com/-- retails athletic footwear and apparel. The company operates approximately 3,900 athletic retail stores in 17 countries in North America, The Netherlands and Australia under the brand names Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, and Champs Sports. The company also has about 350 Footaction stores in the US and Puerto Rico, which sell footwear and apparel to young urbanites. * * * As reported in the Troubled Company Reporter-Latin America on June 21, 2007, Standard & Poor's Ratings Services said its ratings, including the 'BB+' corporate credit rating, on New York City-based specialty footwear retailer Foot Locker Inc. remain on CreditWatch with negative implications. This rating action follows the announcement that Genesco (BB-/Watch Developing/--) accepted an offer from The Finish Line Inc. for US$1.53 billion (US$54.50 per share) on June 18, 2007. Foot Locker made two bids for Genesco earlier this year, but they were subsequently rejected after Genesco's board concluded the proposals were not in the best interest of its shareholders. FRESENIUS FINANCE: Fitch Rates Sr. Unsecured Notes at BB -------------------------------------------------------- Fitch Ratings has affirmed Germany-based healthcare group, Fresenius SE (fka Fresenius AG) and its entities and their respective debt instruments: Fresenius Finance B.V.: -- Senior unsecured debt rating for the guaranteed senior notes 'BB' Fresenius SE: -- Long-term Issuer Default rating 'BB'/Stable Outlook -- Short-term IDR 'B' -- Senior unsecured debt rating 'BB' Fresenius Medical Care AG & CO. KGaA: -- Long-term IDR 'BB'/Stable Outlook -- Short-term IDR 'B' -- Senior unsecured debt rating 'BB' Fresenius Medical Care Capital Trusts: -- Subordinated rating for the guaranteed trust preferred securities 'B+' The ratings are supported by Fresenius's excellent market positioning in the non-cyclical, steady- growth dialysis market with stable and relatively predictable cash flow generation. The ratings also reflect the group's vertical integration into the manufacturing of hemodialysis machines and supplies and peritoneal dialysis products and accompanying cost advantages, which allow the group to build on its reputation for quality services. The ratings are constrained by Fresenius's over- reliance on just one disease area, exposure to private insurers' and governments' reimbursement policies and appetite for acquisitions. Despite the improvement in debt protection measures seen during fiscal year 2006, the Stable Outlook takes into consideration the likelihood of further debt-funded acquisitions. Fitch will assess the impact of any large acquisitions focusing on their strategic fit and funding mix. As the largest globally operating dialysis service and product provider, FMC benefits from a geographical broad network of dialysis clinics. As 70% of group's EBITDA is derived from dialysis, Fresenius is over reliant on one treatment area and thus exposed to potential substitution and technology changes. It is furthermore reliant on private insurers' and governments' reimbursement policies. Although legislative or reimbursement practice changes may have a negative effect on Fresenius's profitability, Fitch expects no dramatic changes in legislation in the medium term. Fresenius's EBITDA margin had remained fairly stable at about 16% since 2002 before it increased to 17.1% in FY06, driven by the Renal Care Group acquisition. In fiscal year 2006 Fresenius SE managed to reduce its net debt-to- EBITDA leverage ratio to 3x, which was about what it had targeted for 2008 of under 3x. The group's FY06 net adjusted debt/EBITDAR was, however, still high at 3.9x (2.8x de-consolidating FMC and only including dividends and payments for services and leases from Fresenius Medical Care to Fresenius SE). At YE06, operating EBITDAR/net interest plus rents ratio stood at 2.9x (FY05: 3.1x) for the group and at 4.8x on a de-consolidated basis. While Fresenius Kabi business is expected to remain highly cash generative, Fresenius ProServe's cash flows are likely to remain weak due to capital expenditure requirements and planned acquisitions. The 'BB' unsecured rating for Fresenius SE and FMC reflects Fitch's view of average recovery prospects on default. While the US$500 million senior notes issued by FMC benefit from unsecured guarantees provided by certain FMC's top operating subsidiaries, any claims from FMC's creditors will rank after its secured bank loan creditors. The senior notes issued by Fresenius Finance B.V. benefit from senior unsecured guarantees provided by Fresenius Kabi and Fresenius ProServe and are supported by the economic value of Fresenius SE's 36% equity in FMC. GETRONICS N.V.: KPN Offer Cues S&P to Watch B- Rating ----------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with positive implications its 'B-' long-term corporate credit rating on Dutch IT services group Getronics N.V. The CreditWatch placement reflects Dutch telecom operator Koninklijke KPN N.V.'s (BBB+/Negative/A-2) intention to make a cash offer for Getronics' shares and public debt, including its preferred notes. "If the offer is launched and successful, Getronics could be upgraded to the level of KPN," said Standard & Poor's credit analyst Patrice Cochelin. KPN has not stated its intentions with regard to Getronics' EUR215 million senior secured revolving credit facility. S&P have nevertheless put the bank loan rating on CreditWatch because we have assumed that the loan would either be refinanced or, if it stays in place, would benefit from Getronics' enhanced credit profile as a KPN subsidiary. At Dec. 31, 2006, Getronics had EUR460 million of on-balance-sheet debt. The rating on Getronics reflects ongoing margin pressure in the company's core managed-services operations, a weak free cash flow track record, and aggressive debt measures. Getronics is a leading player in network and desktop outsourcing. Pressure on pricing and on contract renewal is ongoing, but medium-term contracts and established relationships provide some revenue visibility. JUBILEE CDO: S&P Raise Class D Ratings to BB+ as Credit Improves ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its credit ratings on the class A-2, B, and D notes and the class R and S combo notes issued by Jubilee CDO III B.V. At the same time, the class A-1 and C notes were affirmed. Jubilee CDO III is an arbitrage cash flow CLO managed by Alcentra Ltd. The deal closed in January 2004. The portfolio consists of senior secured and mezzanine loans from issuers incorporated in Western Europe and the U.S. The transaction is still in its reinvestment period, which ends in April 2009. The break-even default rates generated by the cash flow model at different default patterns, default timings, and interest rate scenarios were compared to the scenario default rates produced by Standard & Poor's credit model, CDO Evaluator 3.3. This credit and cash flow analysis illustrated that credit enhancement levels are now consistent with higher rating levels for the class A-2, B, and D notes, and the class R and S combo notes. Ratings List Jubilee CDO III B.V. EUR350.6 Million Floating-Rate And Deferrable Floating-Rate Notes Class Rating To From Ratings Raised A-2 AAA AA B A A- D BB+ BB R combo BBB- BB+ S combo BBB- BB+ Ratings Affirmed A-1 AAA C BBB =========== R U S S I A =========== BIBIKOVKOE LLC: Court Names D. Zelepukin as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Tambov appointed D. Zelepukin as Insolvency Manager for LLC Bibikovkoe. He can be reached at: D. Zelepukin Post User Box 21 394038 Voronezh Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A64-2123/05-18. The Debtor can be reached at: LLC Bibikovkoe Umetskiy Tambov Russia CRAFT-V CJSC: Creditors Must File Claims by Sept. 7 --------------------------------------------------- Creditors of CJSC Craft-V (TIN5603006308) have until Sept. 7 to submit proofs of claim to: M. Abrosimov Insolvency Manager Proletarskaya Str. 216 460035 Orenburg Russia The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-3056/2007-14GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: M. Abrosimov Insolvency Manager Proletarskaya Str. 216 460035 Orenburg Russia DAYUR CJSC: Creditors Must File Claims by Aug. 7 ------------------------------------------------ Creditors of OJSC Agricultural Company Pokrovskaya Niva have until Aug. 7 to submit proofs of claim to: M. Serzhantov Insolvency Manager Razina 14 Cheboksary Chuvashiya Russia The Arbitration Court of Chuvashiya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A79-3769/2007. The Debtor can be reached at: CJSC Dayur Moskovskiy 27 Cheboksary Chuvashiya Russia HORIZON OJSC: Creditors Must File Claims by Aug. 7 -------------------------------------------------- Creditors of OJSC Horizon have until Aug. 7 to submit proofs of claim to: S. Artamonov Temporary Insolvency Manager Post User Box 223 241051 Bryansk Russia The Arbitration Court of Bryansk will convene at 10:00 a.m. on Oct. 15 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A09-3427/07-28. The Court is located at: The Arbitration Court of Bryansk Room 602 Trudovoy Per. 5 Bryansk Russia The Debtor can be reached at: OJSC Horizon Office 65 S. Perovskoj Str. 57 Bryansk Russia KUZBASS LLC: Creditors Must File Claims by Sept. 7 -------------------------------------------------- Creditors of LLC Mine Building Company Kuzbass have until Sept. 7 to submit proofs of claim to: E. Struk Insolvency Manager Oktyabrya Pr. 36g-16 650023 Kemerovo Russia The Arbitration Court of Kemerovo commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A27-18525/06-4. The Court is located at: The Arbitration Court of Kemerovo Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: LLC Mine Building Company Kuzbass Komissarovskaya Str. 17 Prokopyevsk 653000 Kemerovo Russia KVINTO LLC: Omsk Bankruptcy Hearing Slated for Oct. 30 ------------------------------------------------------ The Arbitration Court of Omsk will convene at 10:00 a.m. on Oct. 30 to hear the bankruptcy supervision procedure on LLC Omskaya Knitting Factory Kvinto. The case is docketed under Case No. A46-3869/2007. The Temporary Insolvency Manager is: O. Shilova Post User Box 4599 644052 Omsk-52 Russia The Debtor can be reached at: LLC Omskaya Knitting Factory Kvinto Mira Pr. 185 644085 Omsk Russia LIPETSK-AVIA OJSC: Creditors Must File Claims by Aug. 7 ------------------------------------------------------- Creditors of OJSC Lipetsk-Avia have until Aug. 7 to submit proofs of claim to: A. Kravtsov Temporary Insolvency Manager Office 11 P. Velikogo Square 5 398001 Lipetsk Russia Tel/Fax: 8(4742) 22-20-85, 74-68-53 The Arbitration Court of Lipetsk will convene on Oct. 25 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A36-1157/2007. The Court is located at: The Arbitration Court of Lipetsk Skorokhodova Str. 2 398019 Lipetsk Russia The Debtor can be reached at: OJSC Lipetsk-Avia Airport Kuzminskoeie Itverzhki 398501 Lipetsk Russia MAGNITOGORSK IRON: EGM Scheduled for August 30, 2007 ---------------------------------------------------- OJSC Magnitogorsk Iron and Steel Works will hold an Extraordinary General Shareholders’ Meeting on Aug. 30, 2007. The agenda of the EGM include: -- approval of dividends for the first six months of the 2007 financial year; -- approval of MMK reorganization by a merger of ZAO MMK- Kapital into OJSC MMK; and -- approval of a major transaction. On July 13, 2007, MMK Board of Directors made a recommendation to the extraordinary general shareholder's meeting that dividends be paid in the amount of RUR0,418 per ordinary share for the period of six months 2007. The list of persons entitled to participate in the EGM is prepared on the basis of the MMK Shareholders' Register as of July 16, 2007 (3:00 p.m. Moscow time). The information pertaining to the EGM is available at the Company's Web site http://www.mmk.ru/eng/invrelations/Meet/index.wbp About Magnitogorsk Iron Headquartered in Magnitogorsk, Russia, OJSC Magnitogorsk Iron and Steel Works -- http://www.mmk.ru/-- manufactures steel and accounts for about 20% of all steel products sold on the domestic market. MMK is a major fully integrated steel making complex encompassing all the required processes, from preparation of iron ore materials to high added value processing of steel. About half of the Company's output is exported worldwide. * * * In a TCR-Europe report on April 27, 2007, Moody's Investor's Service upgraded to Ba2 from Ba3 the corporate family rating for Magnitogorsk Iron and Steel Works as well as the rating on the company's guaranteed medium term notes issued by MMK Finance S.A. Moody's said the outlook for both ratings is stable. The Moody's Interfax Rating Agency has upgraded the national scale rating for MMK to Aa2.ru from Aa3.ru. As a result of the implementation of the Loss Given Default and Probability of Default rating methodology in April 2007, Moody's has assigned a PDR of Ba2 to MMK. The Ba2 Corporate Family Rating, which is at the same level as the PDR, reflects the assumption of a family-wide LGD rate of 50%. The US$300 million guaranteed senior unsecured medium term notes, issued by MMK Finance SA, are also rated at Ba2 (Loss Given Default Assessment LGD4, 50%), at the same level as the Corporate Family Rating, reflecting the benefit of a senior guarantee from the operating company MMK which positions the notes at the same level as the approx. US$600 million bank loans and US$572 million trade claims of MMK, based on nine months 2006 results. Magnitogorsk Iron carries BB Issuer Default and senior unsecured ratings from Fitch Ratings. The Outlook on the Issuer Default rating is Stable. The company also carries a BB Issuer Rating from Standard and Poor's. MICHUTINSKOE OJSC: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------------- The Arbitration Court of Tomsk commenced bankruptcy supervision procedure on OJSC Michutinskoe (TIN 7005005510). The case is docketed under Case No. A67-1955/07. The Temporary Insolvency Manager is: I. Gorn Post User Box 1530 634006 Tomsk Russia The Debtor can be reached at: OJSC Michutinskoe Mishutino Zyryanskiy 6636852 Tomsk Russia NEVEL-AUTO-TRANS: Court Names S. Alekseev as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Pskov appointed S. Alekseev as Insolvency Manager for CJSC Nevel-Auto-Trans (TIN 600900856). He can be reached at: S. Alekseev Pulkovskoe Shosse 7-2-161 St. Petersburg Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A52-4198/2006. The Debtor can be reached at: CJSC Nevel-Auto-Trans Mametovoj Str. 110 Nevel Pskov Russia NOVOTROITSKIY FLAX: Creditors Must File Claims by Sept. 7 --------------------------------------------------------- Creditors of Municipal Enterprise Novotroitskiy Flax-Scutching Mill (TIN 4337002179) have until Sept. 7 to submit proofs of claim to: S. Sizikov Temporary Insolvency Manager Bolshevikov Str. 66 610002 Kirov Russia The Arbitration Court of Kirov commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A28-731/06-134/10. The Court is located at: The Arbitration Court of Kirov K-Libknekhta Str. 102 610017 Kirov Russia The Debtor can be reached at: Municipal Enterprise Novotroitskiy Flax-Scutching Mill Sozinova Str. 20 Novotroitskoe Shabalinskiy Kirov Russia POKROVSKAYA NIVA: Creditors Must File Claims by Sept. 7 ------------------------------------------------------- Creditors of OJSC Agricultural Company Pokrovskaya Niva have until Sept. 7 to submit proofs of claim to: R. Kogan Insolvency Manager Office 59a M. Gorkogo Str. 45 302040 Orel Russia The Arbitration Court of Orel commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A48-2136/07-16b6. The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Russia The Debtor can be reached at: OJSC Agricultural Company Pokrovskaya Niva Zelenyj Proezd Str. 2 Pokrovkoe Pokrovskiy Orel Russia ROSNEFT OIL: Federal Court Rules Against Yukos Capital's Claim -------------------------------------------------------------- The Moscow District Federal Arbitration Court quashed a ruling by an international commercial arbitration court ordering Yuganskneftegaz, a unit of OAO Rosneft Oil Co., to pay RUR13 billion to Yukos Capital S.a.r.l., RIA Novosti reports. In 2006, Yukos Capital filed a claim with an international commercial arbitrage at Russia's industry and commerce chamber alleging that Yuganskneftegaz had failed to repay a RUR11.2 billion loan plus interest, RIA Novosti reports. In September 2006, the arbitrage court ordered Yuganskneftegaz to pay the principal, plus RUR1.7 billion in interest and US$850,000 in arbitration fees. Rosneft, which acquired Yuganskneftegaz shortly after the former Yukos unit was bought by Baikalfinansgroup in December 2004, deemed the arbitrage court's ruling as illegitimate and filed a petition with the Moscow Arbitration Court. Aside from quashing the arbitrage court's decision, the Moscow Arbitration Court also accepted claims filed by Rosneft. 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. * * * As of July 17, 2007, OAO Rosneft Oil Co. carries a BB+ long-term corporate credit rating from Standard & Poor's Ratings Services. Outlook is positive.Neft-Aktiv, in which Rosneft indirectly owns 100%, made an offer on July 16 to buy Vostsibneftegaz common shares at 3.1 rubles per share. Neft-Aktiv acquired 70.78% of Vostsibneftegaz in May at a Yukos bankruptcy auction. SISTEMA JSFC: Extraordinary General Meeting Slated for Sept. 17 --------------------------------------------------------------- JSFC Sistema’s Board of Directors has convened an Extraordinary General Meeting of Sistema shareholders, which will be held on Sept. 17, 2007. Shareholders registered as at the record date of Aug. 5, 2007, will be eligible to participate in the meeting. Details about how to register for the meeting can be found on the Company's Web site at http://www.sistema.com/ The agenda for the meeting will comprise the Board's proposal to subdivide the nominal value of Sistema's ordinary shares by 1,000 times. As a result, the Company's share capital would comprise 9,650,000,000 ordinary shares with a par value of RUR0.09 per share. In addition, the Board of Directors will propose that the Company's Charter be amended to reflect the changes in the Company's share capital. "The proposed subdivision will help us to stimulate trading liquidity in the Company's securities and is intended to boost the level of interest in our shares in the market," JSFC Sistema Chief Financial Officer Alexey Buyanov commented. About Sistema Sistema JSFC (LSE: SSA) -- http://www.sistema.com/-- is the largest private sector consumer services company in Russia and the CIS, with over 65 million customers. Sistema develops and manages market-leading businesses in selected service-based industries, including telecommunications, technology, insurance, banking, real estate, retail and media. Founded in 1993, the company reported revenues of US$7.5 billion for the first nine months of year 2006, and total assets of US$ 18.5 billion as at Sept. 30, 2006. Sistema's shares are listed under the symbol 'SSA' on the London Stock Exchange, under the symbol 'AFKS' on the Russian Trading System (RTS), and under the symbol 'SIST' on the Moscow Stock Exchange (MSE). * * * As reported in the TCR-Europe on Jan. 17, 2007, Fitch Ratings assigned Sistema Capital S.A.'s guaranteed debt issuance program a final B+ rating. The program, guaranteed by JSFC Sistema, has a maturity of 30 years and may issue up to US$3 billion. This rating action follows a review of the final terms and conditions, confirming information already received when Fitch assigned an expected rating of B+ on Dec. 12, 2006. In November 2006, Standard & Poor's Ratings Services raised its long-term debt rating to 'B+' from 'B' on the senior unsecured debt issued by Sistema Capital S.A. and OJSC Sistema Finance Investments, and on the senior secured debt issued by Sistema Finance S.A. All three companies are financing vehicles for Russian Telecommunications and industrials holding group Sistema (JSFC) (BB-/Stable/--), which guarantees the debt. TNK-BP HOLDING: Selling Buguruslanneft Production Unit ------------------------------------------------------ TNK-BP Holding Ltd. will sell its Buguruslanneft oil production unit, RIA Novosti reports. TNK-BP said the proceeds from the sale will be used to acquire other oil assets and licenses as part of its plan to boost oil production, RIA Novosti adds. Orenburg governor Alexey Chernyshev said the regional government is willing to work with Buguruslanneft's buyer regarding the social package for the site's 2019 employees. Buguruslanneft accounts for around 4% of TNK-BP's output in the Orenburg region, producing between 670,000 tons and 680,000 tons of oil yearly. The company is currently reviewing the market in preparation for the sale. TNK-BP, meanwhile, plans to boost crude oil exploration, production and refining in Orenburg, TNK-BP president Robert Dudley told Kommersant. TNK-BP has allotted over US$500 million in investment in Orenburg this year. 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. * * * As of Aug. 1, 2007, TNK-BP International Ltd. carries BB long- term foreign and local currency ratings and B -short-term foreign and local currency ratings from Standard & Poor's. TYUMENSKIY MACHINE-TOOL: Creditors Must File Claims by Sept. 7 -------------------------------------------------------------- Creditors of OJSC Tyumenskiy Machine-Tool Plant (TIN 7202000207) have until Sept. 7 to submit proofs of claim to: P. Vagin Insolvency Manager Kopeyskoe Shosse, 38 454010 Chelyabinsk Russia Tel/Fax: (351) 259-91-63 The Arbitration Court of Sverdlovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-35165/2006-S11. The Court is located at: The Arbitration Court of Sverdlovsk Lenina Pr. 34 620151 Ekaterinburg Russia The Debtor can be reached at: OJSC Tyumenskiy Machine-Tool Plant Stantsionnaya Str. 12 Kushva 624300 Sverdlovsk Russia YUG-MINIOIL-LABINSK: Names N. Sukhorukova as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Krasnodar appointed N. Sukhorukova as Insolvency Manager for CJSC Yug-Minioil-Labinsk. She can be reached at: N. Sukhorukova Kalinina Str. 74 Dinskaya St. 356025 Krasnodar Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-24162/05-38/347-B. The Court is located at: The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Russia The Debtor can be reached at: CJSC Yug-Minioil-Labinsk Severnaya Promzona Labinsk 352500 Krasnodar Russia ZARYA CJSC: Creditors Must File Claims by Sept. 7 ------------------------------------------------- Creditors of CJSC Zarya (TIN 7426001856, OGRN 1037401479587) have until Sept. 7 to submit proofs of claim to: T. Vysotskaya Insolvency Manager Rossiyskaya Str. 279 454091 Chelyabinsk Russia The Arbitration Court of Chelyabinsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-6882/01-48-148. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: CJSC Zarya Yaratkulova Agayashskiy 456896 Chelyabinsk Russia ========= S P A I N ========= AUCTENTIA SLU: U.S. Court Grants Relief Under Chapter 15 -------------------------------------------------------- The Hon. James. M. Peck of the U.S. Bankruptcy Court for the Southern District of New York issued an order granting Auctentia, S.L.U., relief under Chapter 15 of the U.S. Bankruptcy Code. Javier Diaz Galvez and Benito Aguera Marin, in their capacities as foreign representatives, filed the Chapter 15 petition on behalf of Auctentia on April 24, 2007. The order recognizes the Debtor's foreign proceedings in the Mercantile Court No. 1 in Madrid, Spain, as a foreign main proceeding under Section 1517 of the Bankruptcy Code. The order also grants the foreign representatives injunctive relief that will enjoin parties from taking action against the Debtor's property. Headquartered in Madrid, Spain, Auctentia SLU is a wholly owned subsidiary of Afinsa Bienes Tangibles, S.A., wholesaler and retailer of stamps, coins, art works and other collectibles. Javier Diaz Galvez and Benito Aguera Marin filed for Chapter 15 petition on behalf of Auctentia SLU on April 24, 2007 (S.D. N.Y. Case No. 07-11173). Thomas L. Kent, Esq., at Paul, Hastings, Janofsky & Walker LLP, in New York City, represents the petitioners. When the petitioners filed for chapter 15 petition, it estimated the Debtor's assets and debts between US$1 million and US$100 million. =========== S W E D E N =========== ARVINMERITOR INC: Incurs US$70 Mil. Net Loss in Third Quarter ------------------------------------------------------------- ArvinMeritor, Inc. posted a US$70 million net loss for the third quarter ended June 30, 2007, compared to US$20 million of net income for the same period in 2006. "As we continue to work our way through a challenging operating environment, we are making solid progress in implementing our strategic initiatives," said Chairman, CEO and President Chip McClure. "As a result of the restructuring activities underway at ArvinMeritor and a focus on improving our operational performance, our CVS business maintained respectable margins despite the decline in the North American heavy truck market, and we saw continued margin improvement in our LVS business." Mr. McClure continued, "Also during the quarter, we moved forward with plans to optimize our manufacturing footprint, announced new military contracts, and entered into a significant joint venture with Chery Motors in China. Although we continue to face the challenges we anticipated, we are taking the necessary actions to manage through the rough seas while competitively positioning ourselves for 2008 and 2009." Fiscal Year 2007 Third-Quarter Results For the third quarter of fiscal year 2007, ArvinMeritor posted sales of US$1.7 billion, a 4-percent decrease from the same period last year. The primary factor that drove this decrease was the downturn in the North American Class 8 market, partially offset by strong Western Europe and Asia Pacific volumes. Operating income in the third quarter of 2007, before special items, was US$45 million, down 31 percent, compared to US$65 million in the prior year's third quarter. EBITDA, before special items, was US$85 million, down US$16 million from the same period last year, reflecting lower commercial vehicle sales volume in North America. Income from continuing operations, excluding special items, was US$18 million, or US$0.25 per diluted share, compared to US$31 million, or US$0.44 per diluted share, a year ago. Special items primarily included restructuring charges and totaled US$22 million net of related tax benefits. For the third quarter of fiscal year 2007, ArvinMeritor reported negative free cash flow of US$156 million. Free cash flow was a positive US$155 million in the third quarter of fiscal year 2006. The decline in free cash flow reflects increases in working capital of discontinued operations prior to the sale of the Emissions Technologies business group, a portion of which will be recovered in post-closing purchase price adjustments. Also contributing to the negative free cash flow was increases in working capital outside of North America, resulting from the strong commercial vehicle volumes in Western Europe and Asia Pacific. Third-Quarter Performance Plus Accomplishments As previously announced, ArvinMeritor expects restructuring and cost reductions resulting from its Performance Plus initiatives to generate US$150 million in savings by 2009. The company remains on track to achieve that goal. Accomplishments this quarter include: -- Achieved growth in specialty business through contracts with International Military and Government, LLC, a wholly owned subsidiary of International Truck & Engine Corporation, and Armor Holdings, which represent 58 percent of the total Mine Resistant Ambush Protected Vehicles (MRAP) business awarded to date. -- Entered into significant joint venture with Chery Motors in China to produce light vehicle chassis products in Wuhu, China, which the company expects to represent US$150 million of business by 2010 when related door and wheel businesses launch. -- Announced the closure of three plants in Brussels, Belgium; Frankfurt, Germany; and St. Thomas, Ontario, Canada. -- Implementing lean manufacturing across the company to build a stronger culture of operational excellence. Fourth-Quarter & Full-Year 2007 Outlook The company's fiscal year 2007 outlook for light vehicle production in North America is 15.1 million vehicles, down from 15.3 million vehicles in the previous forecast, and 16.5 million vehicles in Western Europe, up from the company's prior forecast of 16.1 million vehicles. The outlook for North American Class 8 truck production is 238,000 units in fiscal year 2007, up from 224,000 units in the previous forecast. The company's fiscal year 2007 forecast for medium and heavy truck production in Western Europe is 510,000 units, up from 475,000 units in the previous forecast. The company now expects sales from continuing operations in fiscal year 2007 to be in the range of US$6.2 to US$6.3 billion, up from US$6.0 to US$6.2 billion, and is narrowing its outlook for full-year earnings per share from continuing operations to be in the range of US$0.75 to US$0.80. This guidance excludes gains or losses on divestitures, restructuring costs, and other special items, including potential extended customer shutdowns or production interruptions. In addition, free cash flow guidance is being lowered for fiscal year 2007 to a range of US$50 million to US$100 million outflow, due to working capital increases outside of North America driven by higher commercial vehicle volumes and the use of cash by the Emissions Technologies business prior to sale. "Although we anticipated that the third fiscal quarter of 2007 would be a challenge, we were pleased to report positive results of US$0.25 per share, before special items," said Mr. McClure. "Going forward, we will build on the strength of our global leadership team and the Performance Plus initiatives we are implementing to continually improve shareowner value." About ArvinMeritor Inc. Based in Troy, Michigan, ArvinMeritor Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components serving light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarket. ArvinMeritor employs approximately 29,000 people at more than 120 manufacturing facilities in 25 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. * * * As reported in the Troubled Company Reporter on Feb. 12, 2007 Dominion Bond Rating Service assigned a rating of BB (low) to the USUSUS$175 million Convertible Senior Unsecured Notes of ArvinMeritor Inc. DBRS says the trend is stable. As reported on on Feb. 6, 2007, Moody's Investors Service has downgraded ArvinMeritor's Corporate Family Rating to Ba3 from Ba2. Ratings on the company's secured bank obligations and unsecured notes were lowered one notch as a result. Ratings lowered: ArvinMeritor Inc. -- Corporate Family Rating to Ba3 from Ba2 -- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3, LGD-2, 18% -- Senior Unsecured notes to B1, LGD-4, 65% from Ba3, LGD-4, 64% -- Probability of Default to Ba3 from Ba2 -- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3, LGD-4, 64% Arvin Capital I -- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96% Arvin International PLC -- Unsecured notes guaranteed by ArvinMeritor Inc. to B1, LGD-4, 65% from Ba3, LGD-4, 64% Ratings affirmed: ArvinMeritor Inc. -- Speculative Grade Liquidity rating, SGL-2 ===================== S W I T Z E R L A N D ===================== BASTEL SHOP: Creditors' Liquidation Claims Due August 31 -------------------------------------------------------- Creditors of JSC Bastel Shop Acklin have until Aug. 31 to submit their claims to: Philippart + Co Liquidator Bachmatt 3 5073 Gipf-Oberfrick Laufenburg AG Switzerland The Debtor can be reached at: JSC Bastel Shop Acklin Frick Laufenburg AG Switzerland G. METTLER: Aargau Court Starts Bankruptcy Proceedings ------------------------------------------------------ The Bankruptcy Court of Aargau commenced bankruptcy proceedings against JSC G. Mettler on July 9. The Bankruptcy Service of Aargau can be reached at: Bankruptcy Service of Aargau Office Brugg 5201 Brugg AG Switzerland The Debtor can be reached at: JSC G. Mettler Bozbergstrasse 154 5075 Hornussen Laufenburg AG Switzerland MORO, DURANTE: Creditors' Liquidation Claims Due August 31 ---------------------------------------------------------- Creditors of LLC Moro, Durante & Riggio have until Aug. 31 to submit their claims to: Sevogelstrasse 79 4132 Muttenz Arlesheim BL Switzerland The Debtor can be reached at: LLC Moro, Durante & Riggio Muttenz Arlesheim BL Switzerland NORDINVEST CAPITAL: Creditors' Liquidation Claims Due August 15 --------------------------------------------------------------- Creditors of JSC Nordinvest Capital Partner have until Aug. 15 to submit their claims to: Benno P. Hafner Liquidator Hafner & Hochstrasser General-Guisan-Quai 30 8002 Zurich Switzerland The Debtor can be reached at: JSC Nordinvest Capital Partner Lucerne Switzerland PIZZA KURIER: Aargau Court Starts Bankruptcy Proceedings -------------------------------------------------------- The Bankruptcy Court of Aargau commenced bankruptcy proceedings against LLC Pizza Kurier Baden on July 6. The Bankruptcy Service of Aargau can be reached at: Bankruptcy Service of Aargau Amtsstelle Baden 5402 Baden AG Switzerland The Debtor can be reached at: LLC Pizza Kurier Baden Stadtturmstrasse 13 5400 Baden AG Switzerland SAUERESSIG SECURITY: Creditors' Liquidation Claims Due Oct. 11 -------------------------------------------------------------- Creditors of LLC Saueressig Security International (SSI) have until Oct. 11 to submit their claims to: Chamerstr. 12c 6300 Zug Switzerland The Debtor can be reached at: LLC Saueressig Security International (SSI) Zug Switzerland SCUBIDU JSC: Creditors' Liquidation Claims Due August 9 ------------------------------------------------------- Creditors of JSC Scubidu have until Aug. 9 to submit their claims to: JSC Interis Liquidator Lowenstrasse 20 8001 Zurich Switzerland The Debtor can be reached at: JSC Scubidu Zurich Switzerland STEINER TEUFEN: Creditors' Liquidation Claims Due August 12 ----------------------------------------------------------- Creditors of JSC Steiner Teufen have until Aug. 12 to submit their claims to: Werner Gramm Liquidator JSC Toggenburger Schlossackerstr. 20 8404 Winterthur ZH Switzerland The Debtor can be reached at: JSC Steiner Teufen Freienstein-Teufen Bulach ZH Switzerland ============= U K R A I N E ============= BETVIS 2004: Creditors Must File Claims by August 3 --------------------------------------------------- Creditors of LLC Betvis 2004 (code EDRPOU 33133951) have until August 3 to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 11/187-07. The Debtor can be reached at: LLC Betvis 2004 Vatutin Str. 36 Bolshaya Alekxandrovka Borispol District Kiev Ukraine ITAKA-BUILDING CONSTRUCTION: Creditors' Claims by August 3 ---------------------------------------------------------- Creditors of LLC Itaka-Building Construction (code EDRPOU 34047319) have until August 3 to submit written proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/262-b. The Debtor can be reached at: LLC Itaka-Building Construction Predslavinskaya Str. 34-B 03150 Kiev Ukraine KIDO LLC: Creditors Must File Claims by August 3 ------------------------------------------------ Creditors of LLC Kido (code EDRPOU 24267587) have until August 3 to submit written proofs of claim to: Yaroslav Vanzhula Liquidator Apartment 18 Bogomolets Str. 4 01601 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/247-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Kido Oranzhereynaya Str. 3 04112 Kiev Ukraine KIEV TECHNICAL: Creditors Must File Claims by August 3 ------------------------------------------------------ Creditors of OJSC Kiev Technical Delivery (code EDRPOU 32918115) have until August 3 to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/378-b. The Debtor can be reached at: OJSC Kiev Technical Delivery Kikvidze Str. 41-A 01103 Kiev Ukraine KOMKON LLC: Creditors Must File Claims by August 3 -------------------------------------------------- Creditors of LLC Komkon (code EDRPOU 32670656) have until August 3 to submit written proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/282-b. The Debtor can be reached at: LLC Komkon Reytarsaya Str. 34-A 03150 Kiev Ukraine LENINSKAYA KUZNIA: Creditors Must File Claims by August 3 --------------------------------------------------------- Creditors of CJSC Trading House Leninskaya Kuznia (code EDRPOU 30757111) have until August 3 to submit written proofs of claim to: Nikolay Titarenko Liquidator Apartment 18 Saksagansky Str. 24 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/128-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: CJSC Trading House Leninskaya Kuznia Electricians Str. 26 04176 Kiev Ukraine MILINE PLUS: Creditors Must File Claims by August 3 --------------------------------------------------- Creditors of LLC Miline Plus (code EDRPOU 33130264) have until August 3 to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 11/178-07. The Debtor can be reached at: LLC Miline Plus Shpili Ivanovsky District Kiev Ukraine NIKOPOL TUBE: Creditors Must File Claims by August 3 ---------------------------------------------------- Creditors of State Enterprise Nikopol Tube Plant (code EDRPOU 32289481) have until August 3 to submit written proofs of claim to: Alexander Novikov Liquidator a/b 1809 49027 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 15/77-07. The Court is located at: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: State Enterprise Nikopol Tube Plant Herson Str. 396 Nikopol 53220 Dnipropetrovsk Ukraine PERVOMAYSKOE CJSC: Creditors Must File Claims by August 3 --------------------------------------------------------- Creditors of CJSC Pervomayskoe (code EDRPOU 30619413) have until August 3 to submit written proofs of claim to: Igor Morozov Liquidator a/b 2734 49044 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 15/177/05. The Court is located at: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: CJSC Pervomayskoe Plekhanov Str. 8 49000 Dnipropetrovsk Ukraine QUANTA P: Creditors Must File Claims by August 3 ------------------------------------------------ Creditors of LLC Quanta P (code EDRPOU 33011166) have until August 3 to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 11/179-07. The Debtor can be reached at: LLC Quanta P Lenin str. Museyki Ivanovsky District Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== ABBEY FURNISHINGS: Creditors' Meeting Slated for Aug. 14 -------------------------------------------------------- Creditors of Abbey Furnishings Ltd. (Company Number 05584701) will meet at 10:00 a.m. on Aug. 14 at: Smith & Williamson Ltd. 25 Moorgate London EC2R 6AY England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Aug. 13 at: Anthony Cliff Spicer and Henry Anthony Shinners Joint Administrators Smith & Williamson Ltd. 25 Moorgate London EC2R 6AY England Smith & Williamson -- http://www.smith.williamson.co.uk/-- provides investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. ADVANCED HEATING: Names Jeremiah Anthony O’Sullivan Liquidator -------------------------------------------------------------- Jeremiah Anthony O’Sullivan of Bishop Fleming was appointed liquidator of Advanced Heating Systems Ltd. on July 19 for the creditors’ voluntary winding-up procedure. The liquidator can be reached at: Bishop Fleming 21 Highnam Business Centre Highnam Gloucester GL2 8DN England AEROTECH WORLD: C. B. Barrett Leads Liquidation Procedure --------------------------------------------------------- C. B. Barrett of Tenon Recovery was appointed liquidator of Aerotech World Trade Ltd. (formerly Aviquipo of Britain Ltd.) on July 18 for the creditors’ voluntary winding-up procedure. The liquidator can be reached at: Tenon Recovery Clive House Clive Street Bolton BL1 1ET England ALLIANCE BOOTS: Mike Cutt Quits as Human Resource Chief ------------------------------------------------------- Mike Cutt has resigned as Alliance Boots Plc's human resources chief following the company's sale to a consortium led by Kohlberg Kravis Roberts & Co., Richard Fletcher writes for the Telegraph. Mr. Cutt joined Richard Baker, Boots' former chief executive, and Scott Wheway, Boots the Chemist's managing director, in the list of executives who left Alliance Boots following KKR's takeover, Telegraph relates. According to the Telegraph, Mr. Baker is understood to have been concerned on the role he would play at the now privately owned business. Alex Gourlay was appointed to replace Mr. Wheway, who had been tipped as a possible successor to Mr. Baker. The Telegraph relates that Alliance's former directors are now holding almost all of the senior positions at Alliance Boots -- with Alliance founder Stefano Pessina sitting as chairman and Ornella Barra as wholesale and commercial affairs director. About Alliance Boots Headquartered in London, United Kingdom, Alliance Boots Plc -- http://www.allianceboots.com/-- operates as a high street retailer, pharmacist and pharmaceuticals wholesaler. The company operates in the U.K., Norway, The Netherlands, Ireland, Italy Switzerland, Czech Republic, France, Russia, Spain, Germany and Thailand. * * * As reported in the TCR-Europe on July 19, 2007, Moody's Investors Service downgraded the long term unsecured rating of Alliance Boots plc to B2 from Baa2. The rating remains on review for possible downgrade, where it was placed on March 13, 2007. A Corporate Family Rating for Alliance Boots has been assigned at B1 and is also on review for possible downgrade. The TCR-Europe reported on July 10, 2007, that Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Alliance Boots PLC to 'BB-' from 'BBB', reflecting a dramatic change of financial structure for the expanded group. The ratings remain on CreditWatch with negative implications where they were placed on March 12, 2007, following the announcement that Kohlberg Kravis Roberts & Co., a private- equity firm, and Stefano Pessina, the executive deputy chairman of Alliance Boots, had made a friendly approach to buy the group. AXA INSURANCE: U.S. Court to Hear Chapter 15 Petition on Aug. 15 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing at 9:45 a.m. Eastern Time on Aug. 15, 2007, to consider the Chapter 15 petition filed by Philip Heitlinger, as foreign representative of Axa Insurance UK PLC, Ecclesiastical Insurance Office Plc, GLOBAL General and Reinsurance Company Limited, and MMA IARD Assurances Mutuelles. Responses to the petition are due Aug. 8, 2007. The Debtors had written reinsurance business in the London market through a reinsurance pool that went into a run-off on Nov. 1, 2002. Reinsurance pools that enter into a run-off, typically completes in 20 or more years, cease underwriting new business and seek to determine, settle and pay all liquidated claims of their insureds as they rise. To shorten the run-off and reduce administrative cost, the Debtors have each entered into a scheme of arrangement under English Law (collectively, the "Schemes". The Schemes apply to all business written by the companies within the pool. On Feb. 28, 2007, the companies met with Scheme Creditors, after being allowed by the High Court in the UK on Dec. 12, 2006. The High Court also confirmed that Mr. Heitlinger has authority to request recognition and a permanent injunction order under Chapter 15 of the Bankruptcy Code on the December 12 order. On July 9, 2007, the High Court sanctioned the Schemes, which were voted in favor of by the requisite majorities of Scheme Creditors. Lawyers at Chadbourne & Parke LLP in New York City represent the Foreign Representative in this case. The jointly administered cases were filed on June 9, 2007 (Bankr. S.D. N.Y. Case Nos. 07-12110 and 07-12113). The Debtors' Chapter 15 filing has been reported in the Troubled Company Reporter on July 11, 2007. BAA LTD: Grupo Ferrovial Contemplates Sale of Duty Free Unit ------------------------------------------------------------ Grupo Ferrovial SA is considering selling BAA Ltd.’s World Duty Free franchise to pay down debt used to acquire the British airports operator, Rhys Blakely writes for Times Online. According to Nicolas Villen, Grupo Ferrovial’s finance director, the World Duty Free, which has 65 shops and annual sales of GBP300 million, is "not a strategic asset for us". The group is selling off non-strategic assets to help curb financing costs. Banks including NM Rothschild and Citigroup have pitched to advice on a possible sale. Possible bidders for the unit, which could fetch up to GBP500 million, include Dufry, the Swiss travel retailer, Times Online relates. Mr. Villen said a GBP10 billion asset-backed bond offering to refinance debt after the BAA acquisition is "going ahead slowly but surely". However, he emphasized it’s a very complex operation. Ferrovial attained a sizeable increase in all income statement line items in the first half of 2007, basically as a result of integrating airport manager BAA, which has helped transform the company's profile. Net profit in the first half of 2007 amounted to EUR756 million, 219% more than in the same period of 2006. This rapid growth was underpinned by recurring businesses and enhanced by capital gains on the sale of Sydney and Budapest airports. EBITDA increased by 132.1% to EUR1.5 billion. 80% of EBITDA was obtained in other countries, with only 20% coming from activities in Spain. The U.K. is Ferrovial's second "domestic" market, having contributed 59% of EBITDA in the first half. BAA contributed EUR767.7 million in EBITDA, 52% of the total. EBIT amounted to EUR916.8 million, a 112.4% increase. Net sales totaled EUR7.1 billion, 44.8% more, due to BAA's contribution of EUR1.9 billion. Revenues increased by 23.8% in Toll Roads and Car Parks, 9.7% in Services and 3.5% in Construction. The latter area is still the Group's largest source of revenues: EUR2.5 billion in the first half. About BAA Headquartered in London, United Kingdom, BAA Ltd. (fka BAA plc) -- http://www.baa.com/-- owns and operates seven airports in the United Kingdom, including Heathrow, the world's busiest international airport, and Budapest Airport, serving 700 destinations by around 300 airlines. In June 2006, BAA was bought by a consortium led by Grupo Ferrovial SA, the Spanish construction company. Ferrovial is one of the world’s leading construction groups, specializing in four strategic lines of business – airports, construction, transport infrastructure and services - throughout Spain, the U.K., Portugal and nine other countries in Europe and the rest of the world. The company has around 89,000 employees and a net revenue of EUR12.4 billion. * * * As of July 20, 2007, BAA Ltd. (fka BAA plc) carries an issuer rating of Ba1 from Moody’s. BALLY TOTAL: Files for Chapter 11 Protection in New York -------------------------------------------------------- Bally Total Fitness Holding Corp. filed a Chapter 11 petition with the U.S. Southern District of New York in Manhattan after obtaining requisite number of votes in favor of its pre-packaged chapter 11 plan. Under the company's pre-packaged plan, these claims are expected a 100% recovery: * Administrative Claims, estimated at $24,704,600; * Priority Tax Claims, estimated at $17,904,440; * Non-Tax Priority Claims, estimated at $25,265,635; * Other Secured Claims, estimated at $15,040,312; * Unimpaired Unsecured Claims, estimated at $107,222,660; and * Lenders Claims, estimated at $262,400,000. Holders of Senior Notes, with claims estimated at $235,000,000, on the effective date, will receive the Prepetition Senior Notes Indenture Amendment Fee and the New Senior Second Lien Notes, which alter their contractual rights as set forth in the New Senior Second Lien Notes Indenture. Holders of Prepetition Senior Subordinated Notes, owed an estimated $323,041,667, and Holders of Rejection Claims against Bally Total will receive: (a) New Subordinated Notes with a principal amount equal to 24.8% of the amount of such Allowed Claim, (b) New Junior Subordinated Notes with a principal amount equal to 21.7% of the amount of such Allowed Claim, (c) 0.00093 shares of New Common Stock per $1.00 of Allowed Claim and (d) Rights to purchase Rights Offering Senior Subordinated Notes with a principal amount equal to 27.9% of the amount of such Allowed Claim. Holders of Rejection Claims against any of Bally's affiliates, at the company's option, will receive either: (a) cash in an amount equal to the amount of the Claim, (b) other less favorable treatment to which the Holder and the Debtors agree or (c) quarterly installments over a 5 year period equal to the amount of the Claim plus interest at 12-3/8% per annum. Holders of Subordinated Claims will receive nothing under the plan. On the Effective Date, the Old Equity Interests of Bally will be canceled and the Holders will receive no distribution. The Reorganized Debtors will retain the Interests they hold in Affiliate Debtors. A full-text copy of the Pre-Packaged Chapter 11 Plan and Disclosure Statement may be viewed for free at: http://ResearchArchives.com/t/s?214a Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China, the United Kingdom and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally offers a unique platform for distribution of a wide range of products and services targeted to active, fitness-conscious adult consumers. BALLY TOTAL: Case Summary & 50 Largest Unsecured Creditors ---------------------------------------------------------- Lead Debtor: Bally Total Fitness Holding Corporation 8700 West Bryn Mawr, 2nd Floor Chicago, IL 60631 Bankruptcy Case No.: 07-12396 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Bally Total Fitness of Greater New York, Inc. 07-12395 Bally Total Fitness Holding Corporation 07-12396 Bally Total Fitness of Connecticut Coast, Inc. 07-12397 BTF Cincinnati Corporation 07-12398 BTF Europe Corporation 07-12399 Bally Total Fitness of Connecticut Valley, Inc. 07-12400 BTF Indianapolis Corporation 07-12401 BTF Minneapolis Corporation 07-12402 Bally Total Fitness of Colorado, Inc. 07-12403 B.T.F./C.F.I., Inc. 07-12404 Bally Total Fitness of California, Inc. 07-12404 B.T.F.C.C., Inc. 07-12406 B.T.F.F. Corporation 07-12407 Bally Total Fitness International, Inc. 07-12408 Greater Philly No. 1 Holding Company 07-12409 Bally Total Fitness Franchising, Inc. 07-12410 Greater Philly No. 2 Holding Company 07-12411 Health & Tennis Corporation of New York 07-12412 Bally Total Fitness Corporation 07-12413 Bally Sports Clubs, Inc. 07-12414 Holiday Health Clubs of the East Cost, Inc. 07-12415 Bally A.R.A. Corporation 07-12416 Holiday/Southeast Holding Corporation 07-12417 Bally Fitness Franchising, Inc. 07-12418 Bally Franchise R.S.C., Inc. 07-12419 Jack LaLanne Holding Corp. 07-12420 Bally Franchising Holdings, Inc. 07-12421 New Fitness Holding Co., Inc. 07-12422 Nycon Holding Co., Inc. 07-12423 Bally Real Estate I, L.L.C. 07-12424 Rhode Island Holding Company 07-12425 Bally REFS West Hartford, L.L.C. 07-12426 Tidelands Holiday Health Clubs, Inc. 07-12427 U.S. Health, Inc. 07-12428 Bally Total Fitness of the Southeast, Inc. 07-12429 Bally Total Fitness of the Midwest, Inc. 07-12430 Bally Total Fitness of Toledo, Inc. 07-12431 Bally Total Fitness of Minnesota, Inc. 07-12432 Bally Total Fitness of Rhode Island, Inc. 07-12433 Bally Total Fitness of Upstate New York, Inc. 07-12434 Bally Total Fitness of Philadelphia, Inc. 07-12435 Bally Total Fitness of the Mid-Atlantic, Inc. 07-12436 Bally Total Fitness of Missouri, Inc. 07-12437 Type of business: The Debtors (Pink Sheets: BFTH.PK) operate fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China, the United Kingdom and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. The Debtors offer a unique platform for distribution of a wide range of products and services targeted to active, fitness-conscious adult consumers. See http://www.ballyfitness.com/ Chapter 11 Petition Date: July 31, 2007 Court: Southern District of New York (Manhattan) Debtors' Counsel: Joseph Furst, III, Esq. Latham & Watkins, L.L.P. 885 Third Avenue New York, NY 10022 Tel: (212) 906-1200 Fax: (212) 751-4864 Debtors' financial condition as of December 31, 2006: Total Assets: US$396.771 million Total Debts: US$761.347 million Debtors' Consolidated List of their 50 Largest Unsecured Creditors: Entity Amount Nature of Claim ------------- --------------- HSBC Bank USA, N.A. 9-7/8% Series B&D US$321,618,229 Corporate Trust and Loan Agency Senior Subordinated Indenture Trustee Notes Robert Conrad 452 Fifth Avenue New York, NY 10018-2706 U.S. Bank N.A. 10-1/2% Senior US$246,309,375 Indenture Trustee Unsubordinated Patricia J. Kapsch Notes Assistant Vice President 60 Livingston Avenue St. Paul, MN 55107 Tel: (651) 495-3960 Harry Schwartz Professional Fees US$2,096,649 10859 Emerald Coast Parkway West, Unit #4-404 Destin, FL 32550 El Segundo Plaza, L.P. Trade Debt US$1,179,318 11101 Lakewood Boulevard Downey, CA 90241 Grupo Gallegos Trade Debt US$846,312 Julie Beall 401 East Ocean Boulevard 6th Floor Long Beach, CA 90802 Tel: (562) 256-3600 Vornado Forest Plaza, LLC Trade Debt US$705,833 c/o Skyline Management Corp. 600 Old Country Road, Suite 425 Garden City, NY 11530 750 Sunrise Associates Trade Debt US$640,556 c/o Allan Kozich 1220 Northeast 4th Avenue Fort Lauderdale, FL 33304 The Morris Rochlin Trade Debt US$621,866 Trust UAD 3/3/94 613 Rue Du Lac West Bloomfield, MI 48323 Jenner & Block LLP Professional Fees US$618,377 Jody Lucey 330 North Wabash Avenue Chicago, IL 60611 Tel: (312) 222-9350 Rancon Realty Fund V Trade Debt US$600,087 Subsidiary LLC P.O. Box 6022 Hicksville, NY 11802-6022 David Mandelbaum Professional Fees US$500,000 80 Main Street West Orange, NJ 07052-5497 Cuyahoga County Real Estate Tax Trade Debt US$491,244 Real Estate Tax James Rokakis P.O. Box 94547 Cleveland, OH 44101-4547 California Personal Trade Debt US$421,984 Property Tax P.O. Box 54027 Los Angeles, CA 90054-0027 119 Sixty Street LLC Trade Debt US$393,005 3611 North Kedzie Avenue Chicago, IL 60618 TXU Energy Trade Debt US$380,429 P.O. Box 660161 Dallas, TX 75266-0161 S&T Investments - Clearwater Trade Debt US$376,144 Partnership c/o Boulder Venture 2226 State Road 580 Clearwater, FL 33763 Ozburn-Hessey Logistics Trade Debt US$367,707 Vivian Harris P.O. Box 692192 Cincinnati, OH 45269-2192 Tel: (615) 880-4865 AT&T Corporation Trade Debt US$363,525 Opus Billing Department P.O. Box 198401 Atlanta, GA 30384-8401 Tel: (800) 262-3589 H.E.C. Holding Company Trade Debt US$357,338 c/o Jay Stahler 50 Schrieffer P.O. Box 1526 South Hackensack, NJ 7606 Bluemound Office Company Trade Debt US$347,917 c/o Dennis Klein 16985 West Bluemound Road Brookfield, WI 53005 R.H. Construction and Trade Debt US$347,312 Dal-Tile 11720 Warfield San Antonio, TX 78216 Starcom Worldwide Inc. Trade Debt US$341,278 Division of Leo Burnett USA, Inc. 12076 Collecitons Center Drive Chicago, IL 60693 State of Texas Trade Debt US$325,000 Department of Licensing and Regulation P.O. Box 12157 Austin, TX 78711 Tel: (512) 463-5522 Standard Funding Corp. Trade Debt US$310,386 P.O. Box 9011 Syosset, NY 11791 Tel: (516) 364-0200 Conedison Solutions Trade Debt US$309,347 Jaf Station P.O. Box 1702 New York, NY 10116-1702 Commonwealth Edison Trade Debt US$283,295 Bill Payment Center Chicago, IL 60668 Woolbright Coral Trade Debt US$281,271 Springs II, LLC c/o American Realty Investors 598 Riverside Drive Coral Springs, FL 33071 BMS Realty Company Trade Debt US$276,722 100 Cedar Avenue Hewlett Bay Park, NY 11557 California SUI Tax Trade Debt US$276,344 Employment Development P.O. Box 82604 Sacramento, CA 94230-6204 Bowne of Chicago Trade Debt US$248,100 Cook County Real Estate Tax Trade Debt US$238,719 Michigan State Tax Trade Debt US$230,000 Florida Sales Tax Trade Debt US$219,497 Texas Sales Tax Trade Debt US$216,866 Ernst & Young LLP Trade Debt US$209,100 Federal Taxes - Trade Debt US$204,374 Internal Revenue Service Southern California Trade Debt US$203,442 Edison Co. Orlando Partnership Trade Debt US$198,376 California Workmans Comp. Trade Debt US$189,387 Qwest Trade Debt US$187,929 Ohio Workmans Compensation Trade Debt US$181,006 Sentry Insurance Trade Debt US$180,216 Washington Sales Tax Trade Debt US$179,308 W.W. Grainger Inc. Trade Debt US$177,982 Pacific Gas & Electric Co. Trade Debt US$157,317 The Analysis Group Trade Debt US$157,025 Verizon - Northwest Trade Debt US$153,965 DTE Energy Trade Debt US$152,820 Randolph Investment, LLC Trade Debt US$151,084 FPL Trade Debt US$144,552 BALLY TOTAL: Fails to Agree w/ Shareholders on Alternate Plan ------------------------------------------------------------- Bally Total Fitness Holding Corp. was unable to reach an agreement on an alternative restructuring plan proposed by a group of shareholders, Reuters reports. As reported in the Troubled Company Reporter on July 9, 2007, the company received a letter from current shareholders Liberation Investments, L.P., Liberation Investments, Ltd., Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund L.P., which proposes an alternate chapter 11 plan of reorganization for the company. The company further said that it was in discussions with these shareholders and, subject to the execution of confidentiality agreements, will provide due diligence access to these shareholders for the purposes of their proposal being further refined and proposed definitive documentation being provided to the Board for review and consideration. The shareholders agreed to complete their due diligence by July 20, 2007. The company has already received the required number of votes favoring its pre-packaged chapter 11 plan. About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (NYSE: BFT)(OTC BB: BFTH) -- http://www.ballyfitness.com/-- is a commercial operator of fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China, the United Kingdom, and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally offers a unique platform for distribution of a wide range of products and services targeted to active, fitness-conscious adult consumers. * * * As reported in the Troubled Company Reporter on June 4, 2007, Bally Total Fitness reached an agreement in principle on the proposed terms of a consensual restructuring with certain holders of over 80% in amount of its 9-7/8% Senior Subordinated Notes due 2007. The company plans to implement the proposed restructuring through a pre-packaged Chapter 11 bankruptcy filing of the parent company, Bally Total Fitness Holding Corporation, and certain of its subsidiaries. BRITISH AIRWAYS: OFT Imposes GBP121.5 Mln Fine Over Price Fixing ---------------------------------------------------------------- British Airways plc has admitted collusion over the price of "long-haul passenger fuel surcharges" and will pay a penalty of GBP121.5 million to be imposed by the U.K. Office of Fair Trading, thus enabling the OFT to close its civil investigation and resolve this case. The penalty will be the highest ever imposed by the OFT for infringements of competition law, and demonstrates the determination of the OFT to deal vigorously with anti-competitive behavior. British Airways has admitted that between August 2004 and January 2006, it colluded with Virgin Atlantic over the surcharges which were added to ticket prices in response to rising oil prices. Over that period, the surcharges rose from GBP5 to GBP60 per ticket for a typical BA or Virgin Atlantic long-haul return flight. Virgin Atlantic is not expected to pay any penalty as it qualifies in principle for full immunity under the OFT's leniency policy. Under this policy, a company which has been involved in cartel conduct and which is the first to give full details about it to the OFT will qualify for immunity from penalties in relation to that conduct. In addition, any company staff involved in the price fixing disclosed will qualify for immunity from criminal prosecution in relation to that conduct. The OFT's investigation was prompted after Virgin Atlantic came forward with information about price fixing with BA over the surcharges. British Airways has also provided full co-operation with the OFT's investigation under the leniency program and this is reflected in the penalty announced today. British Airways accepts the OFT's finding that on at least six occasions the two companies discussed and/or informed each other about proposed changes to the level of the surcharges, rather than setting levels independently as required under clear and well-established competition law principles. The OFT's investigation was conducted in parallel with a similar case brought by the United States Department of Justice. The investigations by the OFT and DoJ were separate but the two agencies have consulted each other closely throughout. In addition to the investigation into British Airways' corporate conduct under civil competition law, the OFT is also conducting a criminal investigation into whether any individuals dishonestly fixed the levels of the surcharges - an offence under the Enterprise Act. The corporate admission by British Airways that it infringed civil competition law does not imply that any individuals dishonestly fixed prices contrary to the Enterprise Act. The criminal investigation is ongoing and no conclusions have been reached as to whether criminal proceedings against individuals can or should be brought. The OFT's infringement decision against BA will be taken and published in due course. It will record the full findings in this case and the basis for the calculation of the penalty to be imposed on British Airways. "This case, and the substantial penalty imposed, will send an important message to corporate boards and business leaders about our intention to enforce the law, and serves to remind companies of the substantial risks involved if they are found to engage in such behavior," OFT Chairman Philip Collins said. "It also illustrates how the OFT's leniency program enables companies to eliminate or reduce their exposure to penalties by taking prompt and effective action. On a broader front, the OFT is committed to strong and effective competition law enforcement, especially in relation to price fixing and other hardcore infringements. Our commitment to enforcement emphasizes the importance of effective and comprehensive competition law compliance led by boards and senior management and supported by effective risk management systems and corporate governance." In a TCR-Europe report on May 22, 2007, British Airways said it has a long-standing, clear and comprehensive competition compliance policy. This policy requires all staff to comply with the law at all times. It has become apparent that there have been breaches of this policy in relation to discussions about these surcharges with competitors. As a result, it is appropriate for the company to make a provision, under IAS 37, of GBP350 million in its full year accounts. The provision represents the best estimate of the amount to settle all competition authority and civil claims at the Balance Sheet date. Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, Moody's Investors Service's confirmed its Ba1 Corporate Family Rating for British Airways Plc. Moody's also assigned a Ba1 Probability-of-Default Rating to the company. * Issuer: British Airways, Plc Projected Old New LGD Loss-iven Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- GBP100-million 10.875% Sr. Unsec. Regular Bond/Debenture Due 2008 Ba2 Ba2 LGD5 84% GBP250-million 7.25% Sr. Unsec. Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD5 84% BROOKLANDS 2001-1: Fitch Rates EUR22 Million Class E Notes at B+ ---------------------------------------------------------------- Fitch has affirmed Brooklands Euro Reference-Linked Notes 2001-1 following a satisfactory performance review: -- EUR50 million Class A notes (ISIN XS0132520098): 'AAA' -- EUR50 million Class B notes (ISIN XS0132520841): 'AA-' -- EUR32 million Class C notes (ISIN XS0132521575): 'BBB' -- EUR12.5 million Class D notes (ISIN XS0132521906): 'BBB-' -- EUR22 million Class E notes (ISIN XS0132525725): 'B+' The affirmation reflects the transaction's relatively stable performance and adequate credit enhancement levels. Although the Weighted Average Fitch Factor has improved slightly to the current 5.52 from 6.25 in October 2006, it has remained within the 'BBB'/'BBB-' rating category. Speculative-grade entities represent 18.7% of the portfolio, compared to 19.7% in October 2006. Exposure to U.S sub-prime RMBS reference entities accounts for 1.13% of the reference portfolio. All are 2004 vintage and have experienced no rating migration. As a part of this review, these entities were subjected to additional stress testing that included multiple-notch downgrades. Even under these conditions, there continues to be sufficient credit enhancement available to support the ratings. The ratings of the Class A to D notes address the full and timely payment of interest and ultimate payment of principal. The rating of the Class E notes addresses a total return of 13.5% p.a. The issuer, Brooklands, is a special purpose vehicle incorporated with limited liability under the laws of the Cayman Islands. Brooklands provides protection to UBS AG, London Branch (rated 'AA+'/Outlook Stable/'F1+') on a portfolio of reference credits with a notional value of EUR1 billion. Further to the WorldCom Inc credit event that led to a loss of EUR1.29 million, the amount of credit protection purchased has been reduced to EUR998.719 million. BROOKLANDS 2002-1: Fitch Rates Classes E1 and E2 Notes at BB ------------------------------------------------------------ Fitch has affirmed Brooklands Euro Reference-Linked Notes 2002-1 following a satisfactory performance review: -- EUR100 million Class A+ (ISIN XS0238513344): 'AAA' -- EUR75 million Class A (ISIN XS0148886913): 'AAA' -- EUR16.7 million Class B1 (ISIN XS0148887481): 'AA' -- EUR1.3 million Class B2 (XS0148887721): 'AA' -- EUR31 million Class C (ISIN XS0148887994): 'BBB' -- EUR10 million Class D (ISIN XS0148888372): 'BBB-' -- EUR11 million Class E1 (ISIN XS0148888703): 'BB' -- EUR1 million Class E2 (XS0148889180): 'BB' -- EUR2 million Class G1 (ISIN XS0148948291): 'AA' -- EUR3 million Class G2 (ISIN XS0148948705): 'BBB' The affirmation reflects the transaction's relatively stable performance and adequate credit enhancement levels. The Weighted Average Fitch Factor is currently at 4.64, little changed from 4.52 in November 2006 and has remained within the 'BBB'/'BBB-' (BBB minus) rating category. Speculative-grade entities represent 13.5% of the portfolio, compared to 13.2% in November 2006. Exposure to U.S sub-prime RMBS reference entities accounts for 5.3% of the reference portfolio. All of these are 2004 or 2005 vintage and have experienced no rating migration. As a part of this review, these entities were subjected to additional stress testing that included multiple-notch downgrades. Even under these conditions, there continues to be sufficient credit enhancement available to support the ratings. Brooklands is a special purpose vehicle incorporated with limited liability under the laws of the Cayman Islands. Brooklands provides protection to UBS AG, London Branch (rated 'AA+'/Outlook Stable/'F1+') on a portfolio of reference credits with a notional value of EUR1 billion. The ratings of the Class A+ to E notes address the full and timely payment of interest and ultimate payment of principal. The ratings of the Class G notes address the ultimate payment of principal and a total return of 1% p.a. BROOKLANDS 2004-1: Fitch Affirms Class E Notes at BB ---------------------------------------------------- Fitch has affirmed Brooklands Euro Reference-Linked Notes 2004-1 following a satisfactory performance review: -- Class A1-a (ISIN XS0193140901): 'AAA'; -- Class A1-b (ISIN XS0193141388): 'AAA'; -- Class A2 (ISIN XS0193141891): 'AAA'; -- Class B (ISIN XS0193142436): 'AA'; -- Class C-E (ISIN XS0193142782): 'A'; -- Class C-Y (ISIN XS0193142865): 'A'; -- Class D (ISIN XS0193143590): 'BBB' and -- Class E (ISIN XS0193143913): 'BB'. The affirmation reflects the transaction's relatively stable performance and adequate credit enhancement levels. The Weighted Average Fitch Factor has deteriorated slightly to the current 4.18 from 4.00 in November 2006 but has remained within the 'BBB'/'BBB-' rating category. Speculative-grade securities represent 9.25% of the portfolio, down from 10.75% in November 2006. Exposure to U.S sub-prime RMBS reference entities accounts for 3% of the reference portfolio. All of these are 2004 or 2005 vintage, and one name has experienced rating migration to 'BBB-' from 'BBB'. As a part of this review, these entities were subjected to additional stress testing that included multiple-notch downgrades. Even under these conditions, there continues to be sufficient credit enhancement available to support the ratings. The transaction represents a synthetic securitisation of asset- backed securities and corporate debt. Brooklands has entered into a credit swap with UBS AG, London Branch (rated 'AA+'/Outlook Stable/'F1+') and issued the notes listed above. These are collateralized by 'AAA'-rated securities, which have been purchased pursuant to a repurchase agreement with UBS. Under the credit swap, Brooklands agreed to make payments to UBS of up to a maximum of EUR187.5 million plus the interest on the unrated Class F notes for losses on a substitutable portfolio of publicly and privately rated ABS reference securities and corporate reference entities with a notional amount of EUR750 million. The ratings of the Class A to E notes address the full and timely payment of interest and ultimate payment of principal by the final maturity. BROOKLANDS 2005-1: Fitch Affirms Class E Notes at BB ---------------------------------------------------- Fitch has affirmed Brooklands Euro Reference-Linked Notes 2005-1 following a satisfactory performance review: -- Class A1 (ISIN XS0226765807): 'AAA'; -- Class A2 (ISIN XS0226770559): 'AAA'; -- Class B (ISIN XS0226771102): 'AA'; -- Class C (ISIN XS0226776911): 'A'; -- Class D1 (ISIN XS0226777133): 'BBB'; -- Class D2 (ISIN XS0226777216): 'BBB' and -- Class E (ISIN XS0226777729): 'BB'. The affirmation reflects the transaction's relatively stable performance and adequate credit enhancement levels. The Weighted Average Fitch Factor has deteriorated slightly to the current 4.73 from 4.47 in November 2006 but has remained within the 'BBB'/'BBB-' rating category. Speculative-grade securities represent 12.25% of the portfolio, up from 11.5% in November 2006. The current portfolio does not reference U.S sub-prime RMBS. There have been no credit events to date. Brooklands is a special purpose vehicle incorporated under the laws of the Cayman Islands. Brooklands entered into a credit default swap with UBS AG, London Branch (rated 'AA+'/Outlook Stable/'F1+') and issued the notes listed above. These notes are collateralized by 'AAA'-rated securities purchased pursuant to a repurchase agreement with UBS. Under the credit default swap, Brooklands agreed to make payments to UBS (up to a maximum of EUR200 million plus the interest accrued on the unrated Class F notes) for losses on a substitutable portfolio of corporate reference entities and ABS reference securities with a notional amount of EUR1 billion. The ratings of the Class A to E notes address the full and timely payment of interest and ultimate payment of principal by the final maturity. ECLIPSE 2005-1: S&P Place Ratings on Watch on Initial Review ------------------------------------------------------------ Standard & Poor's Ratings Services placed on CreditWatch with positive implications its credit ratings on the class B, C, D, and E notes issued by AQUILA (ECLIPSE 2005-1) PLC. The CreditWatch placements follow an initial review of the most recent transaction information received by Standard & Poor's. This analysis showed that the likelihood of a positive rating action has increased due to the prepayment of the largest loan, HFO2 (26% of the Day 1 balance) at the July interest payment date. As a consequence of the loan prepayment, the transaction's LTV ratios and credit enhancement have improved. At the July 2007 IPD, there were seven loans remaining of the 10 that comprised the original portfolio, with an aggregate outstanding pool balance of GBP242.99 million. Standard & Poor's will now carry out a more detailed transactional analysis to investigate whether any or all of these notes can attain a higher rating. The results of this review and any rating changes are expected within a month of this media release. AQUILA (ECLIPSE 2005-1) closed in March 2005 and was the first transaction to be undertaken by Barclays Bank PLC in the ECLIPSE commercial mortgage program. The notes were originally backed by 10 loans originated by Barclays Bank. The loans were secured on 44 diverse properties located across the U.K. There are currently 18 properties remaining in the portfolio. Ratings List AQUILA (ECLIPSE 2005-1) PLC GBP440.65 Million Commercial Mortgage-Backed Floating-Rate Notes Class Rating To From Ratings Placed On CreditWatch With Positive Implications B AA/Watch Pos AA C A/Watch Pos A D BBB/Watch Pos BBB E BB/Watch Pos BB CABLE & WIRELESS: Loses Lawsuit Against Digicel ----------------------------------------------- Cay Compass News Online reports that Cable & Wireless has lost a lawsuit against Digicel. Cay Compass relates that Chief Justice Anthony Smellie of the Grand Court of the Cayman Islands rejected Cable & Wireless' attempts to challenge a December 2006 decision of the Information and Communications Technology Authority. The company was fined. According to Cay Compass, Cable & Wireless was seeking to challenge the Mobile Termination Rate agreement it has with Digicel. Cay Compass notes that the ICTA rejected Cable & Wireless' request for determination of various matters relating to the MTR. The company sought to judicially review this decision of ICTA and made an "ex-parte application to the Grand Court in February 2007. Leave was granted to Cable & Wireless at the ex- parte stage by the Justice Smellie." The leave allowed the company to challenge ICTA's decision through the courts. The report says that the ICTA and Digicel "issued summonses," asking the court to cancel the leave granted to Cable & Wireless. The ICTA and Digicel claimed that Cable & Wireless failed "to make full disclosure of material information to the court at the ex-parte stage." They also said that Cable & Wireless lacked a credible case to seek to challenge the ICTA decision. They accused the company of delay in seeking judicial review on matters that date back to July 2004. Digicel Cayman Chief Executive Officer John D. Buckley said in a press release, "Digicel is very pleased that the Grand Court has ruled in favor of Digicel and the Authority and has rejected C&W's [Cable & Wireless] application which sought to challenge an agreement freely entered into between Digicel and C&W in July 2004 and one that C&W have relied on to their own ends on numerous occasions subsequently." Cay Compass says that the court ruled that Cable & Wireless failed in material disclosure and it had no "arguable case." The court also determined that Cable & Wireless was guilty of delay as maintained by ICTA and Digicel. Cable & Wireless said in a press release, "We are disappointed with the decision made by the court and believe it is not in the best interest of our landline and mobile customers who will continue to pay the high prices and interconnection rates advocated by Digicel. We believe in giving customers the best possible deal and we will continue to look for avenues to address this matter." Cable and Wireless will continue to seek ways to challenge an ICTA decision that was upheld in Grand Court, Cay Compass states. About Cable & Wireless Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% EMI GROUP: Terra Firma Concludes Offer with 90.27% Acceptance ------------------------------------------------------------- Terra Firma Capital Partners Ltd. concluded its GBP2.4 billion cash offer for EMI Group Plc on Aug. 1, 2007, after securing 90.27% backing from EMI's shareholders. As of Aug. 1, 2007, the proposed takeover by Maltby Limited, a private equity buyout vehicle set up by Terra Firma, had received valid acceptances totaling 732,158,295 EMI shares. Terra Firma's offer was extended five times through Aug. 1, 2007. EMI's board of directors accepted Maltby's offer in May 2007 and recommended shareholders to do the same. Shareholders, however, delayed acceptances hoping that Warner Music Group Inc. would make a counter offer for EMI. On July 17, 2007, Warner Music Group Corp. confirmed its decision not to make a counterbid for EMI, but reserved the right to make an offer or to participate in a takeover bid if another party, other than Terra Firma, will make an offer for the U.K.-based company. In a report by Lionel Laurent for Forbes, there had been press speculation that the deadline extensions for the offer's acceptance were worrying Citigroup, the investment bank that put up GBP2.5 billion to help Terra Firma deal with EMI's GBP800 million debt. "There were no talks on the structure, there were no worries about the financing," a Terra Firma spokesperson was quoted by Mr. Laurent as saying. "Terra Firma certainly has the access to capital to do it, whereas EMI on their own didn't," Patrick Yau, analyst with Bridgewell Securities told Forbes. "And taking the company off the public market means they have the freedom to push through with it." About Terra Firma Terra Firma is a leading European private equity firm, created in 2002 as the independent successor to the Principal Finance Group, a division of Nomura that was created in 1994. Terra Firma focuses on buyouts of large, asset-rich and complex businesses in need of operational and/or strategic change. Since its inception in 1994, Terra Firma has invested over EUR7 billion of equity and has completed transactions with an aggregate transaction value of over EUR30 billion. Terra Firma has offices in London and Frankfurt. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. * * * In February 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on U.K.-based music group EMI Group PLC to 'BB-' from 'BB'. The 'B' short-term rating was affirmed. At the same time, the long-term corporate credit rating and debt ratings were put on CreditWatch with negative implications. In January 2007, Moody's Investors Service downgraded EMI Group plc's Corporate Family and senior debt ratings to Ba3 from Ba2. All ratings remain under review for possible further downgrade. Downgrade and review follow the announcement that EMI: (i) will incur up to GBP150 million in incremental restructuring costs, (ii) has performed below its expectations during its financial year-to-date, (iii) has installed Eric Nicoli, hitherto chairman of the group as CEO of EMI Group and of EMI Recorded Music and is reviewing its balance sheet. EUROTECHNIX LTD: Brings In Administrators from Vantis Plc --------------------------------------------------------- Frank Wessely and Peter Hughes-Holland of Vantis Plc were appointed joint administrators of Eurotechnix Ltd. (Company Number 02885522) on July 18. Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. The company can be reached at: Eurotechnix Ltd. 5 Langley Business Court Worlds End Beedon Newbury RG20 8RY England Tel: 01635 247 100 Fax: 01635 247 142 EUROTUNNEL GROUP: General Meetings Approve Group Accounts --------------------------------------------------------- The general meetings of Eurotunnel P.L.C. and Eurotunnel SA, subsidiaries of Groupe Eurotunnel SA have on July 27, 2007: -- approved the 2005 and 2006 accounts; -- adopted the change of name of the Eurotunnel P.L.C. and Eurotunnel SA to TNU PLC and TNU SA respectively; and -- been informed of the de-listing in London of EPLC and ESA units effective July 30, 2007. The combined Ordinary and Extraordinary General Meeting of Eurotunnel SA and the Annual General Meeting of Eurotunnel P.L.C., which were held in Coquelles, France, brought together 2,516 shareholders, representing 93.15% of the capital, of whom 40 were present for the meeting. The resolutions presented by the Board were all approved by a majority of 99.9%. The ordinary general meeting of Eurotunnel SA approved the annual accounts, the combined accounts and the results for the 2005 and 2006 financial years, ratified the appointment as directors of Colette Neuville and Pierre Bilger and re-appointed as directors Jacques Gounon, Colette Neuville, the Association de Defense des Actionnaires Eurotunnel (ADACTE), Pierre Bilger, Robert Rochefort and Henri Rouanet, for a term of three years. The annual general meeting of Eurotunnel P.L.C. received the 2005 and 2006 reports and accounts, approved the Directors' remuneration report and re-elected as directors, Colette Neuville, Tim Yeo, Jacques Gounon and Robert Rochefort. The extraordinary general meeting of Eurotunnel SA and the annual general meeting of Eurotunnel P.L.C. adopted the name changes for Eurotunnel PLC and Eurotunnel SA which will now be called TNU PLC and TNU SA respectively to avoid any confusion with the new parent company Groupe Eurotunnel SA, of which they have become subsidiaries. The extraordinary general meeting of Eurotunnel SA also decided that the number of directors aged over 75 could not be greater than one third of the Directors at any given time. The company's constitutional documents have been modified accordingly. Delisting of Eurotunnel Units in London Following Eurotunnel's application to cancel the listing of the Units and their admission to trading on the London Stock Exchange, notice of which was duly given to shareholders, the U.K. Listing Authority has confirmed that delisting will be effective on July 30, 2007. "The accounts for 2005 and 2006 which have just been approved by the AGMs of TNU PLC and TNU SA reflect the past debt and show a heavy deficit. The recapitalization of these companies will lead to an almost total dilution of the shareholders who did not tender their shares to the ETO: from now on, the future of Eurotunnel is with Groupe Eurotunnel SA," Mr. Gounon, chairman and CEO of Groupe Eurotunnel disclosed. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group (aka Groupe Eurotunnel S.A.) -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel S.A. (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. FORD MOTOR: Anticipates Challenges Despite 2nd Qtr. Profits ----------------------------------------------------------- General Motors Corp. and Ford Motor Company, which posted combined quarterly net earnings of US$1.65 billion, have warned the UAW that a number of challenges still loom in the second half of the year, despite of the positive results, as labor talks continue, Dow Jones Newswires reports. GM CFO Fritz Henderson said the company needs to push for health care cost relief within the workforce so it can reach its goal of sustained earnings growth and positive cash flow in North America, Dow Jones notes. GM faces an estimated US$50 billion in long-term health care liabilities although Mr. Henderson claims that GM already has US$19 billion set aside in company- managed trusts that could potentially be used to lower the burden. GM reported net income of US$891 million for the second quarter of 2007, an improvement of US$4.3 billion compared with a reported net loss of US$3.4 billion in the same period last year. Concurrently, Ford CEO Alan Mulally said the second half will be "difficult" as Ford faces cash outflows and races to reduce capacity to match falling sales in the U.S., Dow Jones relates. Ford also sees a tough pricing environment in the second half in the U.S. Ford Motor Company reported a net profit of US$750 million for the second quarter of 2007, compared with a net loss of US$317 million in the second quarter of 2006. 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 and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. 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 Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * To date, Ford Motor Company still carries Standard & Poor's Ratings Services 'B' long-term foreign and local issuer credit ratings and negative ratings outlook. At the same time, the company carries Moody's Caa1 issuer and senior unsecured debt ratings and negative ratings outlook. FORD MOTOR: Unveils Amount of Shares Billed in Conversion Offer --------------------------------------------------------------- Ford Motor Company disclosed the number of shares of Ford common stock that will constitute the premium to be paid in connection with its conversion offer related to the outstanding 6.50% Cumulative Convertible Trust Preferred Securities of Ford's wholly owned subsidiary trust, Ford Motor Company Capital Trust II. The premium represents the amount of shares of Ford common stock determined by dividing (i) US$14.25 by (ii) US$8.1576, the volume-weighted average of the reported sales prices on the New York Stock Exchange of Ford common stock during the three trading-day period of July 25, July 26, and July 27, 2007. Accordingly, each trust preferred security validly tendered and accepted for conversion will be converted into an aggregate of 4.5717 shares of Ford's common stock, which includes the premium of 1.7468 shares and 2.8249 shares of Ford common stock issuable pursuant to the conversion terms of the trust preferred securities. On July 2, 2007, Ford commenced an offer to pay a premium to holders of any and all trust preferred securities who elect to convert their trust preferred securities to shares of Ford common stock subject to the terms of the offer. The offer is scheduled to expire at 5:00 p.m., New York City time, on July 31, 2007, unless extended or earlier terminated, and is expected to settle on August 3, 2007. If all trust preferred securities that were outstanding as of the commencement of the offer were validly tendered and accepted for conversion, Ford would issue an aggregate of 457,163,141 shares of Ford common stock, including approximately 282,485,762 shares pursuant to the conversion terms of the trust preferred securities, plus an aggregate premium of 174,677,379 shares of Ford common stock. The conversion offer is being made pursuant to an offering circular dated July 2, 2007, as amended on July 13, 2007, and related documents. The completion of the offer is subject to conditions described in the conversion offer documents. Subject to applicable law, Ford may waive the conditions applicable to the offer or extend, terminate or otherwise amend the offer. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * To date, Ford Motor Company still carries Standard & Poor's Ratings Services 'B' long-term foreign and local issuer credit ratings and negative ratings outlook. At the same time, the company carries Moody's Caa1 issuer and senior unsecured debt ratings and negative ratings outlook. GML LTD: Appoints Joint Administrators from BDO Stoy ---------------------------------------------------- Shay Bannon and David Harry Gilbert of BDO Stoy Hayward LLP were appointed joint administrators of GML (U.K.) Ltd.(Company Number 01544044) on July 18. BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. The company can be reached at: GML (U.K.) Ltd. 28 Purfield Drive Wargrave Reading RG10 8AR England Fax: 0118 940 4036 I FINDA: Brings In Liquidators from Vantis Redhead French --------------------------------------------------------- G. Mummery and P. Atkinson of Vantis Redhead French Ltd. were appointed joint liquidators of I Finda Services Europe Ltd. (formerly 118 Services Europe Ltd.) on July 24 for the creditors’ voluntary winding-up proceeding. The joint liquidators can be reached at: Vantis Redhead French Ltd. 43-45 Butts Green Road Hornchurch Essex RM11 2JX England IMPERIAL CHEMICAL: Rejects Akzo’s 650 Pence Per Share Proposal -------------------------------------------------------------- Imperial Chemical Industries plc confirmed that it received a further indicative proposal from Akzo Nobel NV under which it would acquire ICI for 650 pence per share in cash. The proposal was subject to a number of pre-conditions, including completion of due diligence. The Board of ICI considered this revised proposal and unanimously rejected it on the grounds that it failed to recognize the full strategic value of ICI. Subsequently, ICI met with Akzo to advise that the proposal was rejected and to explore whether it could be increased. This meeting did not result in an improved proposal. Discussions are continuing, however, ICI has not granted Akzo access to due diligence information. ICI's results for the six months ended June 30, 2007 will be released today, Aug. 2, 2007. The Board of ICI remains confident in the Group's strategy and growth prospects. Meanwhile, Akzo Nobel continues to believe that ICI would represent a highly attractive addition to its coatings business. Akzo Nobel's increased proposal would provide ICI shareholders with a 40% premium to ICI's share price of 464.25 pence on March 9, 2007, the last business day prior to Akzo Nobel's announcement in relation to the disposal of Organon BioSciences. Akzo Nobel is evaluating its options. While discussions continue, Akzo Nobel will remain financially disciplined. There can be no certainty that the approach by Akzo will lead to an offer being made for ICI or as to the terms on which any offer might be made. About ICI Headquartered in London, England, Imperial Chemical Industries Plc -- http://www.ici.com/-- is a major paints, adhesives and specialty products business with products and ingredients developed for a wide range of markets. The company has a number of Regional and Industrial businesses in Argentina, India and Pakistan. It has around 26,000 employees and had sales in 2006 of GBP4.8 billion. At Dec. 31, 2006, the company's balance showed GBP4.29 billion in total assets, GBP4.48 billion in total liabilities and GBP189 million in stockholders' deficit. IMPERIAL CHEMICAL: To Buy Dulux for GBP52 Million from AECI ----------------------------------------------------------- Imperial Chemical Industries Plc has reached an agreement to buy the Dulux business from South African corporation AECI for GBP52 million in cash. In addition to buying the Dulux assets in South Africa, ICI is acquiring AECI's shares in the Dulux subsidiaries in Botswana, Zambia, Swaziland, Malawi and Namibia. Completion is expected in the second half of 2007, subject to approval by the regulatory authorities. Dulux is one of the leading decorative paints brands in the growing South African market, where an expanding economy and a rapidly growing construction market have contributed to Dulux Pty.'s continuing sales growth. In the year ended 2006, Dulux Pty. sales grew 19% to GBP55.3 million, trading profits were GBP5.0 million, net assets were GBP17.8 million and the business employed 650 people, including 400 in South Africa. Accelerating profitable growth is one of ICI’s strategic objectives, announced in February 2007. As part of this, a key performance indicator for the Group is to grow its revenues in developing markets, which already account for around a third of ICI’s sales, at an average of three times the rate of growth of global GDP. "Dulux gives ICI a strong presence in southern Africa. We are delighted with this acquisition as it is absolutely consistent with our focus on fast growing developing markets," said ICI CEO John McAdam. About ICI Headquartered in London, England, Imperial Chemical Industries Plc -- http://www.ici.com/-- is a major paints, adhesives and specialty products business with products and ingredients developed for a wide range of markets. The company has a number of Regional and Industrial businesses in Argentina, India and Pakistan. It has around 26,000 employees and had sales in 2006 of GBP4.8 billion. At Dec. 31, 2006, the company's balance showed GBP4.29 billion in total assets, GBP4.48 billion in total liabilities and GBP189 million in stockholders' deficit. ISLE OF CAPRI: Calls for Buyback of US$200 Mln 9% Sr. Sub. Notes ---------------------------------------------------------------- Isle of Capri Casinos Inc. has called for mandatory redemption of all US$200 million principal amount of its 9% Senior Subordinated Notes due 2012, at a redemption price of 104.50% plus accrued and unpaid interest to the redemption date. The redemption date is Aug. 29, 2007. The redemption price will be drawn from the company's new senior secured credit facility, entered into on July 26, 2007. Based in Biloxi, Missippi and founded in 1992, Isle of Capri Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport and Marquette, Iowa; Kansas City and Boonville, Missouri and a casino and harness track in Pompano Beach, Florida. The company also operates and has a 57 percent ownership interest in two casinos in Black Hawk, Colorado. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. * * * As reported in the Troubled Company Reporter on June 21, 2007, Standard & Poor's Ratings Services revised its rating outlook on Isle of Capri Casinos Inc. to negative from stable. Ratings on the company, including the 'BB-' corporate credit rating, were affirmed. MILL FIELD: Taps Michael C. Kienlen to Liquidate Assets ------------------------------------------------------- Michael C. Kienlen of Armstrong Watson was appointed liquidator of Mill Field (U.K.) Ltd. on July 23 for the creditors’ voluntary winding-up procedure. The liquidator can be reached at: Armstrong Watson Central House 47 St. Paul’s Street Leeds LS1 2TE England ORIENT SOURCING: Taps Joint Administrators from BDO Stoy -------------------------------------------------------- Dermot Justin Power and David Harry Gilbert of BDO Stoy Hayward LLP were appointed joint administrators of Orient Sourcing Services Ltd. (Company Number 03093932) on July 18. BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. The company can be reached at: Orient Sourcing Services Ltd. Crossley Park Crossley Road Heaton Chapel Stockport SK4 5BF England Tel: 0161 431 9111 Fax: 0161 431 9222 REMY INT'L: Extends Supply Deal in New Pact with General Motors --------------------------------------------------------------- Remy International, Inc. has reached agreements with General Motors Corp. with respect to the extension and enhancement of Remy's existing supply relationship with GM. The new GM arrangement is an important development in the furtherance of Remy's financial restructuring. While certain aspects of the arrangement will be implemented immediately, the agreement will become fully effective upon the consummation of Remy's financial restructuring. "We are extremely pleased to have reached agreement with GM on a comprehensive restructuring of our commercial arrangement. We look forward to a long and mutually beneficial relationship with GM," said John Weber, Remy's chief executive officer. Remy also obtained a binding commitment from Barclays Capital, the investment banking division of Barclays Bank PLC, to provide debtor-in-possession financing of up to US$225 million and US$330 million of long-term exit financing, subject to certain closing conditions and documentation. As a result of finalizing these two critical aspects of its financial restructuring, Remy will commence a solicitation of votes on its prepackaged chapter 11 by mid-August. As previously announced, the terms of its consensual financial restructuring with its noteholders contemplates that all trade creditors, employees and suppliers will continue to be paid in the ordinary course of business. 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, including the United Kingdom, Germany, France, Russia, Brazil and India. 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 Remy International Headquartered in Anderson, Indiana, Remy International Inc. -- http://www.remyinc.com/-- manufactures, remanufactures and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications. Remy has operations in the United Kingdom, Brazil and Korea. * * * The TCR-Europe reported on June 25, 2007, that Standard & Poor's lowered its rating on Remy's US$145 million senior unsecured notes to 'D' from 'CC' because Remy elected to not make the June 15, 2007, interest payment. At the same time, S&P lowered the rating on Remy's US$165 million senior subordinated notes to 'D' from 'CC' because these notes are expected to be converted into 100% of common equity of the reorganized company. SALISBURY INT'L: Moody's May Lift Ba1 Ratings After Review ---------------------------------------------------------- Moody's Investors Service places under review for possible upgrade five classes of notes issued by Salisbury International Investments Limited (Sphaera II): -- Series 2006-03 US$9,000,000 Floating Rate Portfolio Credit Linked Notes due 2011, currently rated Ba1; -- Series 2006-04 EUR1,000,000 Floating Rate Portfolio Credit Linked Notes due 2011, currently rated Ba1; -- Series 2006-05 US$3,000,000 Floating Rate Portfolio Credit Linked Notes due 2011, currently rated Baa1; -- Series 2006-13 EUR2,500,000 Floating Rate Portfolio Credit Linked Notes due 2011, currently rated Baa1; -- Series 2006-15 EUR10,000,000 Floating Rate Portfolio Credit Linked Notes due 2011, currently rated A1. This review for upgrade is the result of credit migration in the underlying pools and reduced time to maturity. T C & CO: Creditors' Meeting Slated for Aug. 8 ---------------------------------------------- Creditors of T C & CO. (Electrical Wholesalers) Ltd. (Company Number 04392592) will meet at 10:00 a.m. on Aug. 8 at: Begbies Traynor 65 St Edmunds Church Street Salisbury Wiltshire SP1 1EF England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Aug. 7 at: Julie Anne Palmer Joint Administrator Begbies Traynor 65 St Edmunds Church Street Salisbury Wiltshire SP1 1EF England Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. TOMEI & MACKLEY: Brings In Administrators from Begbies Traynor -------------------------------------------------------------- Colin David Wilson and Timothy John Edward Dolder of Begbies Traynor (South) LLP were appointed joint administrators of Tomei & Mackley Architects Ltd. (Company Number 03340779) on July 18. 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: Tomei & Mackley Architects Ltd. Ivy Mill House Ivy Mill Lane Godstone RH9 8NR England Tel: 01883 740 011 Fax: 01883 744 119 TRINITY INSURANCE: Raises Creditor Recovery to 76.75% ----------------------------------------------------- Paul Evans and Nigel Rackham of PricewaterhouseCoopers LLP, scheme administrators of Trinity Insurance Co. Ltd. stated that the payment percentage for the company has been raised to 76.75%, after consulting with the company's creditors' committee. This final payment percentage, which follows a review by PwC, will see creditors benefiting from a further 6.75% of their established liabilities above the current payment level of 70%. This payment will be the last for the Trinity scheme of arrangement and sees the scheme successfully bought to a close. In addition, the U.S.-based policyholders who are beneficiaries of the U.S. Trust Fund set up for them by Trinity will receive payment on their established liabilities up to 93%. "I am very pleased with the progress in bringing the Trinity estate towards closure. This final percentage payment increase sees creditors benefiting from a total of 76.75% of their established liabilities and is a result which has been achieved much quicker through a cut-off scheme of arrangement than it might have been through continuing a traditional run-off," Mr. Evans disclosed. "PricewaterhouseCoopers has led the way in developing schemes of arrangement for books of business of both solvent and insolvent insurance companies and we are committed to working with policyholders, cedants and shareholders so that transparently fair schemes of arrangement continue to be proposed where appropriate," Mr. Evans added. Whittington Insurance Services Limited, the run-off management company for Trinity, will be processing the additional payments to scheme creditors very shortly. Any queries surrounding payment should be directed to WIS on +44 (0)1452 428 000. Trinity Insurance Co. Ltd.’s -- http://www.trinityinsurance.co.uk/-- original Scheme of Arrangement became effective on March 18, 1993, after receiving High Court sanction. Trinity's amending scheme of arrangement, which introduced as a mechanism to allow claims from scheme creditors to be finalized and valued, bringing the affairs of Trinity to a close quicker than would be the case under the original scheme (a run-off scheme), became effective on Dec. 16, 2003. The initial payment percentage was set at 10% in January 1994 and had been increased in various stages to 70% by August 2005. Trinity had paid Scheme creditors a total of US$184.3 million by May 2007. VIRGIN MEDIA: Liberty Global May Join GBP11.3 Bln Bidding Race -------------------------------------------------------------- Liberty Global Inc. is contemplating a bid for Virgin Media Inc. (fka NTL Inc.), published reports say. John Malone, chairman of Liberty Global, told the Financial Times that his interest was at an exploratory stage and that the group was "doing our homework" on a bid. According to The Times, the recent turmoil in the leveraged finance markets could force the US$23 billion (GBP11.3 billion) Virgin Media auction to be put on hold as the prospect of a private equity-style leveraged takeover has receded. However, the situation would make Liberty Global an attractive partner for a private equity bidder, FT says, citing analysts. US private equity group TPG earlier pulled out of the bidding race because of concerns over the British cable operator’s business model, Elizabeth Judge and Siobhan Kennedy write for The Times. As previously reported in the TCR-Europe, Virgin Media Inc., which has an enterprise value of GBP11 billion, is expected to be auctioned off this month. According to The Sunday Times, indicative bids will have to be filed within the first week. There have been 11 expressions of interest for Virgin Media, The Sunday Times relates. The Sunday Times says the company’s cashflow, which can service debts of GBP6 billion, makes it attractive to private equity firms. Last month, Virgin Media confirmed it has received a takeover proposal but declined to divulge the identity of the offeror. Prior to the receipt of the proposal, Virgin Media's Board of Directors had initiated a review of strategic alternatives with Goldman Sachs, including a process for a possible sale of the company. The proposal will be considered as part of the review. Published reports have cited Carlyle Group to have made a preliminary offer of between US$33 and US$$35 per share for the telecoms company. Virgin Media, however, declined to comment on the matter. Other bidders include Providence Equity Partners, Blackstone, Kohlberg Kravis Roberts and Apax, Nic Fildes writes for The Sunday Times. The bidders could break down into three or four consortia. About Virgin Media Headquartered in London, England, Virgin Media Inc. (fka NTL Inc.) (NASDAQ: VMED) -- http://virginmedia.com/-- provides broadband, digital television, telephony, content and communications services, reaching over 50% of the U.K. homes and 85% of the U.K. businesses. Virgin Media posted GBP120.3 million in net losses against GBP1 million in revenues for the first quarter ended March 31, 2007, compared with GBP119.9 million in net losses against GBP611.4 million in revenues for the same period in 2006. At March 31, 2007, Virgin Media's balance sheet showed GBP11 billion in total assets, GBP7.9 billion in total liabilities and GBP3.1 billion in total shareholders' equity. The Company's balance sheet at March 31, 2007, showed strained liquidity with GBP988.9 million in total current assets available to pay GBP1.4 billion in total liabilities coming due within the next 12 months. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Virgin Media Inc. Moody's also assigned a Ba3 Probability-of-Default Rating to the company. As reported in the TCR-Europe on March 23, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' senior secured debt rating and '1' recovery rating on Virgin Media Investment Holdings Ltd.'s GBP4.98 billion senior secured facilities. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Aug. 2, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA-SA Board Meeting Deloitte Place, Sandton, South Africa Contact: http://www.turnaround.org/ Aug. 3, 2007 TURNAROUND MANAGEMENT ASSOCIATION Women's Spa Event Short Hills Hilton, Livingston, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 9, 2007 BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Today's Legal Processes Contact: 240-629-3300; http://www.beardaudioconferences.com/ Aug. 9-11, 2007 AMERICAN BANKRUPTCY INSTITUTE 3rd Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 9, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Brown Bag Lunch Blum Shapiro & Co., West Hartford, Connecticut Contact: http://www.iwirc.org/ Aug. 10, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Olympics Sportsman's Lunch Sofitel, Brisbane, Queensland, Australia Contact: 1300 303 863 or http://www.turnaround.org/ Aug. 10, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Aug. 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION Colorado Chapter Annual Brew Pub & Pool Social Wynkoop Brewing Company, Denver, Colorado Contact: 303-847-5026 or http://www.turnaround.org/ Aug. 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION Young Professionals Networking Event TBA, Philadelphia, Pennsylvania Contact: 215-657-5551 or http://www.turnaround.org/ Aug. 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Fishing Trip Point Pleasant, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 23-26, 2007 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Drake Hotel, Chicago, Illinois Contact: http://www.nabt.com/ Aug. 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Fishing Trip Point Pleasant, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Healthcare Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Aug. 29-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 3rd Annual Northeast Regional Conference Gideon Putnam Resort and Spa, Saratoga Springs, New York Contact: http://www.turnaround.org/ Sept. 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Sept. 6-7, 2007 TURNAROUND MANAGEMENT ASSOCIATION Complex Financial Restructuring Program Four Seasons, Las Vegas, Nevada Contact: http://www.turnaround.org/ Sept. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Southwest Bankruptcy Conference Four Seasons, Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Networking at the Yards Oriole Park at Camden Yards, Baltimore, Maryland Contact: 215-657-5551 or http://www.turnaround.org/ Sept. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Sept. 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 14th Annual Connecticut Children's Medical Center Fundraiser Golf Outing Woodbridge Country Club, Woodbridge, Connecticut Contact: 203-265-2048 or http://www.turnaround.org/ Sept. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Buying and Selling Troubled Companies Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ Sept. 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lean Transformation at Current and Other Case Studies Denver Athletic Club, Denver, Colorado Contact: http://www.turnaround.org/ Sept. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Retail Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Sept. 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Educational & Networking Reception TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Sept. 26-27, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Florida Annual Golf Tournament Tampa, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Sept. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting TBA, Arizona Contact: http://www.turnaround.org/ Sept. 27-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 8th Annual Cross Border Business Restructuring & Turnaround Conference Contact: http://www.turnaround.org/ Oct. 2, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Oct. 4, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Oct. 5, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI/GULC "Views from the Bench" Georgetown University Law Center Washington, District of Columbia Oct. 9-10, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC Annual Fall Conference Orlando, Florida Contact: http://http://www.iwirc.org/ Oct. 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES 81st Annual National Conference of Bankruptcy Judges Contact: http://www.ncbj.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Winn Dixie Bankruptcy University Club, Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 12, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Presentation by George F. Will: The Political Argument Today Orlando, Florida Contact: http://www.ardent-services.com/ Oct. 12, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Educational Program at NCBJ Orlando World Marriott, Orlando, Florida Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place Boston, Massachussets Contact: 312-578-6900; http://www.turnaround.org/ Oct. 23, 2007 BEARD AUDIO CONFERENCES Partnerships in Bankruptcy Contact: 240-629-3300; http://www.beardaudioconferences.com/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Capital Markets Case Study Seattle, Washington Contact: http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Oct. 26, 2007 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Hotel Adlon Kempinski, Berlin, Germany Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, Florida Contact: 561-882-1331; http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Crisis Communications With Employees, Vendors and Media Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Nov. 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Nov. 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Hackensack, New Jersey Contact: 908-575-7333; http://www.turnaround.org/ Nov. 12, 2007 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference Marriott, Troy, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Holiday Mixer McCormick & Schmick's, Las Vegas, Nevada Contact: 702-952-2480 or http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Aloha Airlines Story Bankers Club, Miami, Florida Contact: http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia 4th Annual Conference and Gala Dinner Hilton, Sydney, Australia Contact: http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Nov. 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Portland Holiday Party University Club, Portland, Oregon Contact: 206-223-5495; http://www.turnaround.org/ Nov. 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Mixer TBA, Vancouver, British Columbia Contact: 206-223-5495; http://www.turnaround.org/ Nov. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Real Estate Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Nov. 29, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Holiday Gala Yale Club, New York, New York Contact: http://www.iwirc.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker TBD, New Jersey Contact: 908-575-7333; http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker Hilton, Sydney, Australia Contact: http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Dec. 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Seattle Holiday Party Athletic Club, Seattle, Washington Contact: 206-223-5495; http://www.turnaround.org/ Dec. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA & CFA Georgia Aquarium, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ Dec. 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA & CFA Georgia Aquarium, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ Dec. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331; http://www.turnaround.org/ Jan. 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida Feb. 7, 2008 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Mar. 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Apr. 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, District of Columbia Contact: http://www.abiworld.org/ Apr. 25-27, 2008 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Spring Seminar Eldorado Hotel & Spa, Santa Fe, New Mexico Contact: http://www.nabt.com/ May 1-2, 2008 AMERICAN BANKRUPTCY INSTITUTE Debt Symposium Hilton Garden Inn, Champagne/Urbana, Illinois Contact: 1-703-739-0800; http://www.abiworld.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference J.W. Marriott Spa and Resort, Las Vegas, Nevada Contact: http://www.airacira.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: http://www.abiworld.org/ July 10-13, 2008 TURNAROUND MANAGEMENT ASSOCIATION 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, Massachussets Contact: http://www.turnaround.org/ July 31 - Aug. 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Contact: http://www.abiworld.org/ Aug. 20-24, 2008 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Captain Cook, Anchorage, Alaska Contact: http://www.nabt.com/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com; http://researcharchives.com/t/s?20fa BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES [UTF-8?] Deepening Insolvency â€“ Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES [UTF-8?] Reverse Mergersâ€”the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Today's Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* 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 * * *