/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070807.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, August 7, 2007, Vol. 8, No. 155 Headlines A U S T R I A CROSSMEDIA PRINT: Claims Registration Period Ends Sept. 5 DRUGOWITSCH BAU: Claims Registration Period Ends Sept. 17 FRANZ RATHWALLNER: Wels Court Orders Business Shutdown HASAG MOEBEL: Claims Registration Ends Sept. 17 ITH SYSTEMS: Claims Registration Period Ends Sept. 4 LEUPRECHT RECHTSANWALT: Stefan Offer Represents Administrator STEFAN LLC: Claims Registration Period Ends Sept. 13 B E L G I U M CHIQUITA BRANDS: Earns US$8.6 Million in 2007 Second Quarter CHIQUITA BRANDS: Weak Operating Results Cue S&P to Lower Rating C Z E C H R E P U B L I C ANDREW CORP: Inks Third Amendment to Credit Agreement D E N M A R K EASTMAN KODAK: Earns US$592 Mln in Quarter Ended June 30, 2007 F R A N C E ALCATEL-LUCENT: Costa Rica Sues Former President on Corruption BOSTON SCIENTIFIC: Fitch Lowers Senior Notes Rating to BB+ BOSTON SCIENTIFIC: S&P Downgrades Corp. Credit Rating to BB+ CHEMTURA CORP: Incurs US$2 Million Net Loss in 2007 Second Qtr. PERNOD RICARD: Posts EUR6.44 Billion Annual Sales for 2007 SOLECTRON CORP: Special Stockholders' Meeting Set for Sept. 27 G E O R G I A CANARGO ENERGY: Divests Entire 17.7% Stake in Tethys Petroleum METROMEDIA INT'L: Rejects Takeover Offer from Fursa Alternative G E R M A N Y AL-BAN IMMOBILIENFONDS: Creditors' Meeting Slated for Sept. 19 ARGUS GASTSTATTENBETREIBER: Claims Registration Ends Sept. 18 ASAT HOLDINGS: Interest Payment Delay Cues S&P's Junk Rating ASAT HOLDINGS: Moody's Downgrades Corporate Family Rating to Ca DAIMLERCHRYSLER AG: Closes Chrysler Sale to Cerberus DAIMLERCHRYSLER: Chrysler's July Sales Outside N. America Up 24% LAZARD LTD: Paying US$0.09 Per Share Qtrly Dividend on Aug. 31 PRIME 2006-1: Fitch Rates EUR13 Million Class E Notes at BB PROSIEBENSAT.1 MEDIA: Fitch Affirms and Withdraws BB- Ratings G R E E C E WIND HELLAS: Tellas Sale Cues Fitch to Monitor Ownership H U N G A R Y HUTSCHENTEUTHER HUNGARIA: Sells Assets in Liquidation VALEANT PHARMACEUTICALS: Earns US$16.8 Million in Second Quarter I R E L A N D ADVANCED MEDICAL: Posts US$166 Mln Net Loss in Second Quarter W.R. GRACE: Completes Washcoat Biz Sale to Rhodia Silcea I T A L Y ALITALIA SPA: Italian Magistrate Probes Alitalia Insider Trading FIAT SPA: Requests Delisting from New York Stock Exchange HUNTSMAN CORP: Holders Linked with MatlinPatterson Sell Shares TEKSID ALUMINUM: Soliciting Consents to Amend 11-3/8% Notes K A Z A K H S T A N BAREGIT-KAZAKHSTAN: Claims Filing Period Ends Sept. 14 BT FOOD-2: Creditors Must File Claims Sept. 12 GARANT+ LLP: Claims Filing Period Ends Sept. 12 KULAGER JSC: Creditors' Claims Due on Sept. 18 MONTAGE-CENTRE LLP: Claims Registration Ends Sept. 12 SERVICE-KAZAKHSTAN TRACTOR: Creditors Must File Claims Sept. 12 SEYNUR LLP: Claims Filing Period Ends Sept. 6 TEMIR BOLAT: Creditors' Claims Due on Sept. 12 XXX AKTOBE: Claims Registration Ends Sept. 12 K Y R G Y Z S T A N MEDICAMENTY ROSSIYI: Claims Filing Period Ends September 11 OZKENT LLC: Creditors' Meeting Slated for August 17 N O R W A Y DRESSER-RAND: Earns US$26.2 Million in Second Quarter of 2007 DRESSER-RAND: Supplying NatGas Compression Unit to P-18 Oil Rig P O R T U G A L QUANTUM CORP: Posts US$22.6 Mln Net Loss in Qtr. Ended June 30 R U S S I A A. RADISHEV: Creditors Must File Claims by Sept. 14 BELGOK CJSC: Court Starts Bankruptcy Supervision Procedure BUCYRUS INT'L: Earns US$27.8 Million in Second Quarter 2007 BRISTOW GROUP: First Quarter Net Earnings Increase by 31.6% DEB-IMPORT CJSC: Creditors Must File Claims by Aug. 14 DMITROVSK-CERAMICS: Creditors Must File Claims by Sept. 14 IRKUTSKIY WOOD: Creditors Must File Claims by Sept. 14 MALACHITE LLC: Bankruptcy Hearing Slated for Nov. 27 MUGREEVSKOE PEAT: Ivanovo Bankruptcy Hearing Slated for Oct. 17 NORTH-WEST TELECOM: To Issue RUR3 Bln Bonds to Fund Investments OAO NOVATEK: Buys Stakes in Companies with Yamal-Nenets Licenses PRODZERNO LLC: Creditors Must File Claims by Aug. 14 RASSVET CJSC: Creditors Must File Claims by Sept. 14 ROSBANK: Better Performance Cues Fitch to Upgrade Ratings to BB- ROSNEFT OIL: In Talks to Sell Non-Core Units to SoyuzNefteGaz SP-KHOLOD CJSC: Creditors Must File Claims by Aug. 14 SADOVOD CJSC: Creditors Must File Claims by Sept. 14 TANTAL-D CJSC: Creditors Must File Claims by Sept. 14 UNIKOM CJSC: Creditors Must File Claims by Sept. 14 USEC INC: Posts US$13.4 Mln Net Loss in Quarter Ended June 30 VALDAY LLC: Court Names A. Boravchenkov as Insolvency Manager VORKUTINSKIY BREWERY: Asset Sale Slated for August 21 S W I T Z E R L A N D PETROPLUS HOLDINGS: Acquisition News Cues S&P to Hold BB Ratings PETROPLUS FINANCE: S&P Rates US$1.2 Bln. High-Yield Notes at BB- T U R K E Y YAPI VE KREDI: Fitch Rates IDR at BB with Stable Outlook U K R A I N E AIST AND FA: Creditors Must File Claims by Aug. 8 DIONA LLC: Creditors Must File Claims by Aug. 8 FRUTIS LAND: Creditors Must File Claims by Aug. 8 GERMES-TRUST LLC: Creditors Must File Claims by Aug. 8 IRINA AND K: Creditors Must File Claims by Aug. 8 KHADZHYBEYEVSKOE OJSC: Creditors Must File Claims by Aug. 8 ODESSABUILDING OJSC: Proofs of Claim Filing Deadline Set Aug. 8 ORYSCHI LLC: Creditors Must File Claims by Aug. 8 TRADE-ZAPOROZHJE: Creditors Must File Claims by Aug. 8 UKRAINE LLC: Creditors Must File Claims by Aug. 8 VELSOFT LLC: Creditors Must File Claims by Aug. 8 VYSHNIVCHIK AGRICULTURAL: Creditors Must File Claims by Aug. 8 U N I T E D K I N G D O M ALLIANCE BOOTS: Banks Defers Sale of Second-Lien Loans BAA LTD: Ferrovial to Complete Refinancing by Year-End BALLY TOTAL: Moody's Withdraws Ratings After Bankruptcy Filing BAXALL LTD: Brings In Joint Administrators from KPMG BOMFORDS LTD: Administrators Complete Business & Assets Sale BRITISH AIRWAYS: Earns GBP269 Mln in Three Months Ended June 30 BRITISH AIRWAYS: Named Worst Performing Major Airline by AEA CHANGE UK: Creditors' Meeting Slated for August 10 DD HOME: Appoints KPMG LLP as Joint Administrators DECO 2005-UK: Interest Shortfall Cues S&P to Cut Rating to D DEDICATE TRADING: C. B. Barrett Leads Liquidation Procedure DEVON CIDER: Appoints Administrators from Smith & Williamson DIGITAL POS: Joint Liquidators Take Over Operations FREESCALE SEMICONDUCTOR: Taps Collier to Sell East Kilbride Site GETTY IMAGES: Earns US$33.7 Million in Quarter Ended June 30 HILTON HOTELS: Reports US$165 Mil. Net Income in Second Quarter HOTHOUSE TRADING: Taps J. M. Titley to Liquidate Assets INCO LTD: Sales Up 232% to US$859 Million in 2nd Qtr. FY 2007 ISLE OF CAPRI: Posts US$4.6 Million Net Loss in 2007 KRISPY KREME: S&P Puts B- Rating on Corp. Credit Rating MEDAL ENTERTAINMENT: Taps Joint Administrators from KPMG NORTEL NETWORKS: Posts US$37 Mln Net Loss in Qtr. Ended June 30 NOVAGEN LTD: Brings In Liquidators from Tenon Recovery ODYSSEY RE: Earns US$145.5 Million in Second Qtr. 2007 SADLER UTILITIES: Calls In Liquidators from Vantis SERVICEMASTER: Amended Credit Pact Cues S&P to Watch B+ Ratings TECUMSEH PRODUCTS: Names Edwin L. Buker as Chief Exec. Officer THERMOMAX LTD: Names Joint Administrators from PwC * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= CROSSMEDIA PRINT: Claims Registration Period Ends Sept. 5 --------------------------------------------------------- Creditors owed money by LLC Crossmedia Print (FN 206165i) have until Sept. 5 to file written proofs of claim to court-appointed estate administrator Ferdinand Bruckner at: Dr. Ferdinand Bruckner c/o Dr. Elisabeth Zonsics-Kral Schubertstrasse 10/3/5/9 2100 Korneuburg Austria Tel: 02262/72 9 39 Fax: 02262/729 39 15 E-mail: bruckner@raedrb-drz.at widhalm@raedrb-drz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:30 p.m. on Sept. 19 for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Wolkersdorf im Weinviertel, Austria, the Debtor declared bankruptcy on June 29 (Bankr. Case No. 36 S 90/07p). Elisabeth Zonsics-Kral represents Dr. Bruckner in the bankruptcy proceedings. DRUGOWITSCH BAU: Claims Registration Period Ends Sept. 17 --------------------------------------------------------- Creditors owed money by LLC Drugowitsch Bau (FN 198202z) have until Sept. 17 to file written proofs of claim to court- appointed estate administrator Peter Posch at: Dr. Peter Posch Eisenhowerstrasse 40 4600 Wels Austria Tel: 07242/61212 Fax: 07242/47167 E-mail: peter.posch@kapo.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on Sept. 27 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Strasse 12 Wels Austria Headquartered in Wels, Austria, the Debtor declared bankruptcy on July 3 (Bankr. Case No. 20 S 85/07m). FRANZ RATHWALLNER: Wels Court Orders Business Shutdown ------------------------------------------------------ The Land Court of Wels entered July 3 an order shutting down the business of LLC Franz Rathwallner Metall und Technik & Co KG (FN 132500d). Court-appointed estate administrator Berthold Martin Breitwieser 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. Berthold Martin Breitwieser Johann Strauss Strasse 1 4701 Bad Schallerbach Austria Tel: 07249/48286-0 Fax: 07249/48286-4 E-mail: kanzlei@ra-breitwieser.at Headquartered in Pollham, Austria, the Debtor declared bankruptcy on June 29 (Bankr. Case No 20 S 81/07y). HASAG MOEBEL: Claims Registration Ends Sept. 17 ----------------------------------------------- Creditors owed money by LLC HASAG Moebel (FN 146470y) have until Sept. 17 to file written proofs of claim to court-appointed estate administrator Christian Rumplmayr at: Dr. Christian Rumplmayr Stadtplatz 36 Third Floor 4840 Voecklabruck Austria Tel: 07672/75931 Fax: 07672/75953 E-mail: rumplmayr@jusonline.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Sept. 27 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Strasse 12 Wels Austria Headquartered in Attnang - Puchheim, Austria, the Debtor declared bankruptcy on July 2 (Bankr. Case No. 20 S 82/07w). ITH SYSTEMS: Claims Registration Period Ends Sept. 4 ---------------------------------------------------- Creditors owed money by LLC ITH systems (FN 276157p) have until Sept. 4 to file written proofs of claim to court-appointed estate administrator Georg Schober at: Dr. Georg Schober Hauptplatz 11 2700 Wiener Neustadt Austria Tel: 02622/23228 Fax: 02622/23228-26 E-mail: g.schober@schober.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Sept. 18 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Wiener Neustadt, Austria, the Debtor declared bankruptcy on July 2 (Bankr. Case No. 11 S 78/07t). LEUPRECHT RECHTSANWALT: Stefan Offer Represents Administrator ------------------------------------------------------------- In the bankruptcy proceedings of LLC Leuprecht Rechtsanwalt (FN 227092i), the Land Court of Innsbruck approved July 5, the appointment of Stefan Offer as representative of the Debtor's estate administrator Dr. Wolfgang Offer. The representative of the estate administrator can be reached at: Dr. Stefan Offer Museumstrasse 16 6020 Innsbruck Austria Tel: 0512/582833 Fax: 0512/570484 E-mail: office@kanzlei-offer.at Headquartered in Innsbruck, Austria, the Debtor declared bankruptcy on June 25 (Bankr. Case No. 9 S 13/07x). STEFAN LLC: Claims Registration Period Ends Sept. 13 ---------------------------------------------------- Creditors owed money by LLC Stefan (FN 62960p) have until Sept. 13 to file written proofs of claim to court-appointed estate administrator Herwig Ernst at: Dr. Herwig Ernst c/o Dr. Robert Zauchinger Hauptplatz 32 2100 Korneuburg Austria Tel: 02262/723 17 Fax: 02262/756 57 E-mail: lawoffice@mack-ernst.at zauchinger@mack-ernst.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Sept. 27 for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Hall 2 Room 104 First Floor Korneuburg Austria Headquartered in Korneuburg, Austria, the Debtor declared bankruptcy on July 5 (Bankr. Case No. 32 S 7/07b). Robert Zauchinger represents Dr. Ernst in the bankruptcy proceedings. ============= B E L G I U M ============= CHIQUITA BRANDS: Earns US$8.6 Million in 2007 Second Quarter ------------------------------------------------------------ Chiquita Brands International Inc. released financial and operating results for the second quarter 2007. Second quarter net sales increased by 2 percent year-over-year to US$1.3 billion, and the company reported net income of US$8.6 million, or US$0.20 per diluted share, including a charge of US$3 million, or US$0.07 per share, related to a settlement of U.S. antitrust litigation. The company reported net income of US$23 million, or US$0.54 per diluted share, in the year-ago period. "We were not satisfied with our second quarter results," said Fernando Aguirre, chairman and chief executive officer. "We are taking aggressive actions to address continuing challenging market conditions and expect to reverse the recent trend and begin delivering modest year-over-year improvements in operating results starting in the third quarter." Mr. Aguirre continued, "We remain confident in our strategy to generate sustainable, profitable growth by delivering innovative higher-margin products and building a high-performance organization. We were pleased to complete the previously announced strategic shipping agreement, during the quarter and use a significant portion of the proceeds from that transaction to pay down debt. We will continue to take actions to strengthen our balance sheet, improve our risk profile, focus our efforts on market activities, and diversify our company by product, channel and geography." Chiquita repaid more than US$200 million of debt during the second quarter, primarily from proceeds from the sale of its 12 refrigerated cargo vessels. As a result, the company's total debt at June 30, 2007, was US$857 million, compared to US$1.061 billion at March 31, 2007. The company expects to continue paying down debt until it reaches its target debt-to-capital ratio of 40 percent, compared to 49 percent at June 30, 2007. About Chiquita Brands Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide including Panama, Philippines, Australia, Belgium, Germany, among others. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. * * * As reported in the Troubled Company Reporter on May 16, 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) USUS$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) USUS$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about USUS$1.3 billion as of March 31, 2007. CHIQUITA BRANDS: Weak Operating Results Cue S&P to Lower Rating --------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its corporate credit rating on Cincinnati, Ohio-based Chiquita Brands International Inc., to 'B-' from 'B', and removed the rating from CreditWatch with negative implications where it was placed on May 2, 2007, following weak first-quarter operating results due to high purchased fruit and other industry costs and lower local banana prices in Europe. "The downgrade follows Chiquita's recent second-quarter earnings release and reflects continued deterioration in operating performance and credit measures, and weak covenant cushion," said Standard & Poor's credit analyst Alison Sullivan. At the same time, Standard & Poor's raised the ratings on Chiquita's US$200 million revolving credit facility to 'B+', two notches above the corporate credit rating, removed the ratings from CreditWatch negative, and revised the recovery rating to '1', indicating expectations of very high (90%-100%) recovery in the event of a payment default, from '2'. The improved recovery on the revolver reflects repayment of the term loan B (US$24 million outstanding as of March 31, 2007), and US$90 million of mortgage debt related to shipping assets that were recently sold. Also, Standard & Poor's lowered the ratings on Chiquita's US$368 million term loan C to B, one notch above the corporate credit rating, removed the ratings from CreditWatch negative, and revised the recovery rating to 2, indicating expectations of substantial (70%-90%) recovery in the event of a payment default, from 1. In addition, Standard & Poor's lowered the ratings on the senior unsecured notes to CCC, two notches below the corporate credit rating, and removed those ratings from CreditWatch negative. The outlook is negative. Total debt outstanding at the company was about US$857 million as of June 30, 2007. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide including Panama, Philippines, Australia, Belgium, Germany, among others. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. =========================== C Z E C H R E P U B L I C =========================== ANDREW CORP: Inks Third Amendment to Credit Agreement ----------------------------------------------------- Andrew Corporation entered into a third amendment to its credit agreement, effective as of June 30, 2007, with certain financial institutions named in the third amendment and Bank of America, National Association, as Administrative Agent, for the Lenders and as l/c issuer. The Third Amendment amends in certain respects Andrew's Credit Agreement dated as of Sept. 29, 2005, which was filed as Exhibit 99.2 to Andrew's Form 8-K filed on Oct. 5, 2005, as amended by a First Amendment to Credit Agreement dated as of June 16, 2006, which was filed as Exhibit 10.1 to Andrew's Form 8-K filed on June 20, 2006, and a Second Amendment to Credit Agreement dated as of July 13, 2007, which was filed as Exhibit 10.1 to Andrew's Form 8-K filed on July 18, 2007. The Third Amendment amended the Credit Agreement in order to revise the definition of "Consolidated EBITDA" solely for purposes of calculating compliance with the financial covenants set forth in Section 6.2.2 of the Credit Agreement. In addition, the Administrative Agent and Lenders also waived any event of default under the credit facility occurring due to a change of control of Andrew resulting from any agreement entered into between Andrew and CommScope in furtherance of the CommScope Merger Transaction until the earlier to occur of the date of the consummation of the CommScope Merger Transaction and March 31, 2008. 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. ============= D E N M A R K ============= EASTMAN KODAK: Earns US$592 Mln in Quarter Ended June 30, 2007 -------------------------------------------------------------- Eastman Kodak Company reported on Thursday its financial results for the second quarter ended June 30, 2007. Eastman Kodak reported net income of US$592 million for the quarter ended June 30, 2007, compared with a net loss of US$282 million for the same period last year. Results for the quarters ended June 30, 2007, and 2006, included total company earnings from the discontinued operations of the company's Health Group segment to Onex Healthcare Holdings Inc. on April 30, 2007, of US$727 million (including a pre-tax gain on sale of US$980 million) and US$73 million, respectively. The company reported a US$121 million year-over-year improvement in pre-tax results from continuing operations, reflecting gross profit margin improvements across all of its major business units. The company achieved a US$97 million improvement in digital earnings and a US$31 million improvement in traditional earnings, as expenses declined. In addition, the company reported a US$135 million after-tax loss from continuing operations, an improvement of US$220 million, as compared to the prior year. Kodak also reaffirmed its plan to achieve its full-year financial goals for net cash generation, digital revenue growth and digital earnings. "Our second-quarter results reinforce our confidence in our full-year performance," said Antonio M. Perez, chairman and chief executive officer, Eastman Kodak Company. "Revenues during the second quarter were in line with our expectations. Earnings improved across all of our major business units, reflecting our strong focus on cost reduction and operational efficiencies. We continue to expect a strong second half, with double-digit sales growth in both of our major digital businesses, driven by a stronger-than-ever portfolio of digital products, including our revolutionary consumer inkjet printing system, new image sensors, workflow software, and an expanded line of NEXPRESS digital color printing presses. I'm pleased with our first-half results, and I remain confident in our ability to achieve our 2007 key strategic objectives." On the basis of generally accepted accounting principles in the U.S. (GAAP), the company reported a second-quarter loss from continuing operations of US$173 million pre-tax, US$135 million after tax, compared with a loss of US$294 million pre-tax, US$355 million after tax in the year-ago period. Items of expense impacting comparability in the second quarter of 2007 totaled US$266 million after tax. The most significant item was restructuring costs of US$316 million before tax and US$248 million after tax. In the second quarter of 2006, items that impacted comparability totaled US$206 million after tax primarily reflecting restructuring costs. For the second quarter of 2007: -- Sales totaled US$2.510 billion, a decrease of 7% from US$2.688 billion in the second quarter of 2006. Digital revenue totaled US$1.460 billion, a 3% increase from US$1.417 billion. Traditional revenue totaled US$1.044 billion, a 17% decline from US$1.262 billion in the year- ago quarter. -- The company's second-quarter loss from continuing operations, before interest, other income (charges), net, and income taxes was US$163 million, compared with a loss of US$257 million in the year-ago quarter. Other financial details: -- Gross Profit margin was 26.2% for the quarter, up from 21.4%in the prior year, primarily attributable to lower costs, driven by manufacturing footprint reductions and the favorable impact of foreign exchange, offset by adverse silver and aluminum costs. -- Selling, General and Administrative expenses decreased US$87 million from the year-ago quarter, reflecting the company's cost reduction activities. SG&A as a percentage of revenue was 17%, down from 19% in the year-ago quarter. -- Net Cash Generation for the second quarter was negative US$251 million, compared with negative US$74 million in the year-ago quarter. Net Cash Generation for the first half of 2007 was negative US$704 million, compared with negative US$691 million in the year-ago period. This corresponds to net cash used in operating activities from continuing operations of US$298 million for the second quarter, compared with US$17 million in the year-ago quarter, driven primarily by changes in working capital. For the first half of 2007, net cash used in operating activities from continuing operations was US$695 million, compared with US$554 million in the year-ago period. -- On April 30, 2007, the company completed the sale of its Health Group to an affiliate of Onex Corporation for US$2.350 billion. As previously announced, the company used a portion of the cash proceeds from that transaction to fully repay US$1.145 billion of outstanding secured term debt. As of June 30, 2007, the company's debt level was US$1.624 billion, a US$1.154 billion reduction from the 2006 year-end debt level of US$2.778 billion. -- Kodak held US$1.925 billion in cash and cash equivalents as of June 30, 2007. 2007 Outlook Reaffirmed Kodak remains focused on three financial metrics as it continues to transform its business: net cash generation, digital earnings from operations and digital revenue growth. The company's goal for net cash generation this year is in excess of US$100 million after restructuring disbursements of approximately US$600 million. This outlook corresponds to expected net cash provided by continuing operations from operating activities, on a GAAP basis, in the range of US$200 million to US$450 million. Additionally, the company's goal for 2007 full-year digital earnings from operations is US$150 million to US$250 million, which corresponds to a GAAP loss from continuing operations before interest, other income (charges), net, and income taxes for the full year of US$550 million to US$650 million. Finally, the company continues to forecast 2007 digital revenue growth of 3% to 5%, with total 2007 revenue expected to be down between 4% and 7%. At June 30, 2007, the company's consolidated balance sheet showed US$13.074 billion in total assets, US$10.582 billion in total liabilities, and US$2.492 billion in total stockholders' equity. Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK) -- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. * * * As reported in the Troubled Company Reporter on May 18, 2007, Fitch Ratings upgraded Eastman Kodak Company's senior unsecured debt to 'B/RR4' from 'B-/RR5' due to improved recovery prospects following the company's redemption on May 3, 2007, of a US$1.15 billion secured term loan funded with a portion of the proceeds from the sale of its Health Group to Onex Healthcare Holdings, Inc., for US$2.35 billion on April 30, 2007. In addition, Fitch has affirmed these Kodak ratings: -- Issuer Default Rating 'B'; -- Secured credit facility 'BB/RR1'. =========== F R A N C E =========== ALCATEL-LUCENT: Costa Rica Sues Former President on Corruption -------------------------------------------------------------- Costa Rican prosecutors have filed corruption charges against the country's former President Miguel Angel Rodriguez, almost three years after he resigned as head of the Organization of American States to face allegations on being bribed by French telecom Alcatel, which has now become Alcatel-Lucent, the Associated Press reports. The AP notes that Alcatel merged with Lucent in 2006 to create Alcatel-Lucent SA. Mr. Rodriguez was Costa Rica's president from 1998 to 2002. He became the head of OAS after leaving the office. After less than a month, he resigned from his post in the organization in 2004. Judicial spokesperson Fabian Barrantes confirmed to the AP that charges were filed. Mr. Barrantes commented, "The only thing I can say is that investigators have placed the case in the hands of civil prosecutors." News daily La Nacion relates that Mr. Rodriguez is accused of accepting US$230,000 from Alcatel's Latin American branch in exchange for granting it a US$149 million cell-phone contract in 2001. Jose Antonio Lobo, former director of Costa Rica's Electricity Institute, alleged that Mr. Rodriguez also received US$590,000 from the company. Eduardo Araya, Mr. Rodriguez's legal representative, told the AP that his client hadn't been notified of the charges. Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported on April 13, 2007, Fitch Ratings affirmed Alcatel- Lucent's ratings at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn them. As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. BOSTON SCIENTIFIC: Fitch Lowers Senior Notes Rating to BB+ ---------------------------------------------------------- Fitch Ratings has downgraded the ratings on Boston Scientific Corp: -- Issuer Default Rating (IDR) to 'BB+' from 'BBB-'; -- Senior unsecured notes to 'BB+' from 'BBB-'; -- Unsecured bank credit facility to 'BB+' from 'BBB-'. Fitch has also withdrawn BSX's Commercial Paper rating of 'F2'. This rating action affects approximately US$8 billion of debt. The Rating Outlook is Negative. The rating downgrade reflects the company's decision not to carve out a portion of its Endosurgery business. Fitch's prior rating for BSX was highly dependent on the timely paydown of debt with cash proceeds from the potential divestiture. More pressure has now been placed on BSX's operations, which are currently challenged, to reduce debt and leverage. The performance of the company's Drug-Eluting Stent and Cardiac Rhythm Management businesses has been a key source of operating weakness, and Fitch believes a turnaround in these businesses will take time. EBITDA growth has also been hindered by the company's decision to operate at a higher cost structure, reflecting its anticipation for higher growth beyond 2007. While the company intends to address its cost structure, the timing of improvement is uncertain. The Negative Outlook reflects the challenges in BSX's DES and CRM businesses. Resolution of the Outlook would likely occur when BSX generates recurring consolidated growth in revenues and profitability. In addition reduction in leverage and debt would also help to resolve the Negative Outlook. Free cash flow (net cash flow from operations less capital expenditures) during the first six months ended June 30, 2007 was negative at approximately US$34 million. This includes the approximately US$400 million tax payment in the first quarter from the divestiture of Guidant's vascular intervention and endovascular solutions businesses to Abbott Labs. Interest coverage (EBITDA/Interest) was 3.5 times and leverage (total debt/EBITDA) was 4.7 times for the last 12 months, ended March 31, 2007. The firm has approximately US$1.9 billion in cash/short-term investments and US$8.9 billion in debt. At March 31, 2006, BSX had full availability on its US$2 billion revolver, maturing on April 21, 2011. Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. BOSTON SCIENTIFIC: S&P Downgrades Corp. Credit Rating to BB+ ------------------------------------------------------------ Standard & Poor's Ratings Services has lowered its corporate credit rating on Boston Scientific Corp. to 'BB+' from 'BBB-' and placed the ratings on the company on CreditWatch with negative implications. "The downgrade reflects the company's decision to retain full ownership of its endosurgery group," explained Standard & Poor's credit analyst Cheryl Richer. Although Boston Scientific still plans to sell nonstrategic assets, divest elements of its investment portfolio, and reduce expenses and headcount, debt reduction will proceed at a slower pace than previously anticipated. The rating will remain on CreditWatch while we review the implications of Boston Scientific's revised strategy on its business and financial risk. Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. CHEMTURA CORP: Incurs US$2 Million Net Loss in 2007 Second Qtr. --------------------------------------------------------------- Chemtura Corporation posted a net loss of US$2 million, or US$0.01 per share, for the second quarter of 2007 and net earnings on a non-GAAP basis of US$43 million, or US$0.18 per share. The net loss for the quarter includes: * a loss from continuing operations of US$30 million, or US$0.12 per share; * income from discontinued operations of US$3 million, or US$0.01 per share; and * gain on the sale of a discontinued operations of US$25 million, or US$0.10 per share. On a non-GAAP basis, net earnings include income from continuing operations of US$40 million, or US$0.17 per share and income from discontinued operations of US$3 million, or US$0.01 per share. "Our second quarter results reflect numerous positives: record earnings for Consumer Products despite a slowdown at the end of the quarter; outstanding performance for Crop Protection despite legacy bad debt issues in Latin America related to prior growing seasons; continued sequential improvement in Polymer Additives; and excellent performance from our Kaufman Holdings businesses in the first full quarter since we acquired them at the end of January," said Robert Wood, Chairman and CEO. "The impact of the bad debt provision, the transitional impacts from the carve-out and sale of the EPDM business, and the higher than normal non-GAAP tax provision rate served to reduce our non-GAAP earnings in the quarter by more than US$0.02 per share." "As we indicated in the first quarter conference call, we expected to begin to see the benefits of our efforts over the last three years. This quarter's results are the first evidence of this impact. Our focus remains on managing those elements of our business we can control. The corporate restructuring initiatives in the quarter are reducing our cost base and realigning our organization to improve execution. We have started the process of realigning our manufacturing footprint. Our portfolio reshaping continues with the important step of divesting the EPDM business completed in June. These actions are critical steps towards our goal of becoming a leaner, more focused enterprise." "The focus on cost and effectiveness will remain our highest priority in the coming quarters. Despite raw material cost pressures, the third and fourth quarters are expected to provide us with the first consecutive year-on-year positive comparisons in many quarters." About Chemtura Corp. Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:CEM) -- http://www.chemtura.com/-- is a global manufacturer and marketer of specialty chemicals, crop protection, and pool, spa and home care products. The company has approximately 6,400 employees around the world and sells its products in more than 100 countries. The company has facilities in Singapore, Australia, China, Hong Kong, India, Japan, South Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany, Mexico, and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on May 18, 2007, Moody's Investors Service lowered Chemtura Corporation's ratings: -- Corporate Family Rating: Ba2 from Ba1 -- Senior notes, USUS$500 million due 2016: Ba2 from Ba1; LGD4 (53%) -- Senior Unsecured Notes, USUS$150 million due 2026: Ba2 from Ba1; LGD4 (53%) -- Senior Unsecured Notes, USUS$400 million due 2009: Ba2 from Ba1; LGD4 (53%) PERNOD RICARD: Posts EUR6.44 Billion Annual Sales for 2007 ---------------------------------------------------------- Pernod Ricard S.A. realized sales of EUR6.44 billion for financial year ended June 30, 2007, compared with EUR6.07 billion group sales for the year ended June 30, 2006. According to the company the performance comprised a strong 9.1% organic growth, a -2.8% foreign exchange effect, and a +0.2% group structure effect. The group's 15 strategic brands registered organic growth: +9% in volume and +13% in value, in line with the Group's premiumization strategy. All of these 15 strategic brands progressed and the following eight posted double-digit volume growth: -- Stolichnaya (+18%); -- Martell (+17%); -- Montana (+17%); -- Havana Club (+15%); -- The Glenlivet (+15%); -- Perrier Jouet (+15%); -- Ballantine's (+11%); and -- Jameson (+11%). Over the full financial year, the spirits business and the wine business increased by +11.0% and +1.3%, respectively. Spirits continued to grow strongly in the second half-year with a 9.4% sales increase while wine stepped up its growth to +4.5%. Overall, the strong 8.6% second half growth confirmed the 9.7% performance achieved in first half, which included a favorable comparison effect related to the reduction in inventory that followed the Allied Domecq acquisition. Consolidated sales for the fourth quarter increased by 3.2% to EUR1.54 billion, a +5.5% organic growth, thereby reflecting continuing strong growth following a particularly buoyant third quarter. The level of selling and advertising expenditure in the second half-year was high due to the launch of new advertising campaigns. In Patrick Ricard's opinion, Chairman and CEO of the Group, "2006/2007 was a further year of very strong growth for Pernod Ricard which witnessed progress by all strategic brands. The great success of our premium brands and our rapid growth in emerging countries were the two principal drivers of this performance and should ensure continued vigorous growth for the year in progress." The business environment throughout the second half-year and the favorable evolution of profit margins enabled a significant increase in selling and advertising expenditure over the second half of the financial year and leads to the expectation of growth in net profit from ordinary activities to be slightly in excess of initial guidance of 20%, on a constant foreign exchange basis. The company will release 2006/2007 full-year results on Sept. 20, 2007. The company will then have a combined general meeting on Nov. 7, 2007. About Pernod Ricard Headquartered in Paris, France, Pernod Ricard -- http://www.pernod-ricard.com/-- produces and distributes spirits and wines. The Company operates in Europe, North America, Central and South America, and the Asia-Pacific region. * * * As reported in the TCR-Europe on Nov. 21, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on French spirits manufacturer and marketer Pernod Ricard S.A. to 'BB+' from 'BB' following quicker-than-expected integration of acquired businesses and improved profitability prospects. At the same time, the 'B' short-term corporate credit rating was affirmed. S&P said the outlook is stable. SOLECTRON CORP: Special Stockholders' Meeting Set for Sept. 27 -------------------------------------------------------------- Solectron Corporation has set, on Sept. 27, 2007, a special meeting of stockholders, to consider and vote upon the proposed merger with Flextronics International Ltd. The meeting will be held at Solectron's principal executive offices at 847 Gibraltar Drive, Building 5, Milpitas, California, 95035 and will begin at 8:00 a.m. Pacific time. The record date for the meeting is Aug. 6, 2007. A definitive joint proxy statement/prospectus relating to the special meeting will be mailed to stockholders beginning on or about Aug. 13, 2007. About Solectron Headquartered in Milpitas, California, Solectron Corp. (NYSE: SLR) -- http://www.solectron.com/-- provides a full range of worldwide manufacturing and integrated supply chain services to the world's premier high-tech electronics companies. Solectron's offerings include new-product design and introduction services, materials management, product manufacturing, and product warranty and end-of-life support. The company operates in more than 20 countries on five continents including France, Malaysia, and Brazil, among others. It had sales from continuing operations of US$10.6 billion in fiscal 2006. * * * As reported in the Troubled Company Reporter on Dec. 14, 2006, Standard & Poor's Ratings Services raised its corporate credit and senior unsecured ratings on Milpitas, California-based Solectron Corp. to 'BB-' from 'B+', and its subordinated debt rating to 'B' from 'B-'. S&P said the outlook is stable. On May 9, 2007, Fitch Ratings affirmed Solectron Corporation's ratings as: -- Issuer Default Rating at 'BB-'; -- Senior secured bank facility at 'BB+'; -- Senior unsecured debt at 'BB-'; and -- Subordinated debt at 'B+'. ============= G E O R G I A ============= CANARGO ENERGY: Divests Entire 17.7% Stake in Tethys Petroleum -------------------------------------------------------------- CanArgo Energy Corporation sold its entire shareholding of 8,000,000 shares in Tethys Petroleum Limited. The shares of Tethys Petroleum were sold in brokered transactions beginning July 31, 2007. The shares represent 17.7% of the shares of Tethys Petroleum outstanding shares. The shares will be offered for sale at prices not less than CDN$2.95. The gross proceeds of the sale, before commission and expenses, amounts to CDN$23.6 million. The settlement date is Aug. 3, 2007. Net proceeds received from the sale of these shares will be used by CanArgo to repay a portion of its existing debt under its outstanding senior secured notes due July 25, 2009, and to the extent of any excess net proceeds, its outstanding senior subordinated convertible guaranteed notes due Sept. 1, 2009. Jennings Capital Inc. act as the sole placing agent or sole participating organization for the sale. About Tethys Petroleum Tethys Petroleum Limited (TSX: TPL) - http://www.tethyspetroleum.com/-- is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republic of Kazakhstan and more recently the Republic of Tajikistan. About CanArgo Energy CanArgo Energy Corp. -- http://www.canargo.com/-- (AMEX: CNR) (OSLO: CNR) is an oil and gas exploration and production company operating in the oil and gas provinces of the former Soviet Union. CanArgo is currently focused primarily on Georgia in the Caucasus, and more recently has become involved in the major hydrocarbon producing country of Kazakhstan. In Georgia, the company has been actively exploring for new deposits of oil and gas, and is currently appraising what could be a substantial new discovery of oil. Going Concern Doubt As reported in the Troubled Company Reporter on March 26, 2007, LJ Soldinger Associates LLC raised substantial doubt about the ability of CanArgo Energy Corp. to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm stated that the company may not have sufficient funds to execute its business plan. METROMEDIA INT'L: Rejects Takeover Offer from Fursa Alternative --------------------------------------------------------------- Metromedia International Group Inc.'s board of directors determined that Fursa Alternative Strategies LLC's proposal cannot, at this time, be reasonably expected to lead to a superior proposal. As reported in the TCR-Europe on Aug. 6, 2007, Metromedia received an unsolicited letter from Fursa to acquire all issued and outstanding shares of Metromedia common stock, other than the shares already owned by Fursa, at a purchase price of US$2.05 per share in cash. About Metromedia Based in Charlotte, North Carolina, Metromedia International Group (PINK SHEETS: MTRM-Common Stock and MTRMP-Preferred Stock) -- http://www.metromedia-group.com/-- through its subsidiary, Metromedia International Telecommunications, owns interests in telecom and cable TV operations in Russia, Georgia, and elsewhere in Eastern Europe. The Company's core businesses includes Magticom, Ltd., the leading mobile telephony operator in Tbilisi, Georgia, and Telecom Georgia, a well-positioned Georgian long distance telephone operator. * * * In October 2006, Metromedia said it is filing a Chapter 11 Plan in the U.S. after receiving a binding offer to acquire all of the Company's business interests in Georgia for a cash price of US$480 million from an investment group comprised of: -- Istithmar, an alternative investment house based in Dubai, United Arab Emirates; -- Salford Georgia, the Georgian office of Salford Capital Partners Inc., a private equity and investment management company which manages investments in the CIS and Central & Eastern Europe; and -- Emergent Telecom Ventures, a communications merchant bank focused on pursuing telecommunications opportunities in the Emerging Markets. Upon the approval of the plan, all of the preferred and common equity interests in the Company will be converted into the right to receive the cash remaining after payment of all allowed claims and the costs and expenses associated with the sale and the Wind-Up. Moody's Investors Service has placed Metromedia's subordinated debt rating at B3 and junior subordinated debt rating at B2. ============= G E R M A N Y ============= AL-BAN IMMOBILIENFONDS: Creditors' Meeting Slated for Sept. 19 -------------------------------------------------------------- The court-appointed insolvency manager for Al-Ban Immobilienfonds-Verwaltungsgesellschaft mbH & Co. Sonnengarten Glienicke Eichenallee 6 und 8 KG, Christian Koehler-Ma will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:35 a.m. on Sept. 19. 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 11:30 a.m. on Jan. 9, 2008, at the same venue. Creditors have until Nov. 2 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Christian Koehler-Ma Kurfuerstendamm 26 a 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Al-Ban Immobilienfonds- Verwaltungsgesellschaft mbH & Co. Sonnengarten Glienicke Eichenallee 6 und 8 KG on July 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Al-Ban Immobilienfonds-Verwaltungsgesellschaft mbH & Co. Sonnengarten Glienicke Eichenallee 6 und 8 KG Berliner Strasse 27 13597 Berlin Germany ARGUS GASTSTATTENBETREIBER: Claims Registration Ends Sept. 18 ------------------------------------------------------------- Creditors of ARGUS Gaststattenbetreibergesellschaft mbH have until Sept. 18 to register their claims with court-appointed insolvency manager Tatjana Gotsch. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Oct. 30, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 24 Fuerstenstrasse 21-23 09130 Chemnitz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Tatjana Gotsch Buettenstr. 4 08058 Zwickau Germany Tel: (0375) 818920 Fax: (0375) 8189214 E-mail: gotsch@zwickau-net.de The District Court of Chemnitz opened bankruptcy proceedings against ARGUS Gaststattenbetreibergesellschaft mbH on Aug. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ARGUS Gaststattenbetreibergesellschaft mbH Attn: Birgit Berthold, Manager Annaberger Str. 80 08352 Markersbach Germany ASAT HOLDINGS: Interest Payment Delay Cues S&P's Junk Rating ------------------------------------------------------------ On Aug. 3, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on ASAT Holdings Ltd. to 'D' from 'CCC'. At the same time, it lowered the issue rating on US$150 million 9.25% senior notes due 2011 to 'D' from 'CCC'. The notes were issued by New Asat (Finance) Ltd. and guaranteed by ASAT. The downgrades are based on ASAT's announcement on Aug. 1, 2007 that it did not make the semi-annual interest payment on its 9.25% senior notes. "Given its extremely tight liquidity, we believe there is a low likelihood that ASAT will make the interest payment within the 30-day grace period that starts from the Aug. 1, 2007 due date," said Standard & Poor's credit analyst Michael Petit. Standard & Poor's has very limited access to the company's management and financial information. The rating is based on publicly available information. Although ASAT has indicated that it has available funds to make the interest payment, doing so would make it difficult to support its ongoing business requirements over the near term. ASAT has asked the bond holders to amend or waive certain conditions that constitute defaults and events of defaults that may have occurred or may occur. Based on the company's fiscal 2007 results, announced on Aug. 1, 2007, ASAT had a shareholders' deficit of US$88.3 million at the end of April 2007. The company had about US$7.3 million in unrestricted cash, inadequate to cover its semi-annual interest due Aug. 1, 2007 of US$6.9 million for the bond and short-term debt due within one year of US$3.8 million. Standard & Poor's assigns a 'D' rating when payments on an obligation are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. ASAT is a small operator in the highly fragmented and competitive semiconductor sector. ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- is a global provider of semiconductor package design, assembly and test services. With more than 17 years of experience, the Company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The Company has operations in the United States, Asia and Europe including Hong Kong, China, and Germany. ASAT HOLDINGS: Moody's Downgrades Corporate Family Rating to Ca --------------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of ASAT Holdings Ltd to Ca from Caa1. At the same time, Moody's also downgraded to Ca from Caa1 the senior unsecured rating for New ASAT (Finance) Limited's US$150 million in senior notes, maturing in 2011, which are guaranteed by ASAT. The outlook for both ratings is negative. "The rating action follows ASAT's failure to make the semi- annual interest payment on its 9.25% senior notes," say Wonnie Chu, lead analyst for ASAT, adding, "The Ca rating reflects the low expected recovery rate for debt holders." Although ASAT has a 30-day grace period to service the interest payment, and is in the process of obtaining approval from its bond holders to relax financial covenants, the company's ability to service its debt obligations in the near-to-medium term is questionable, given its extremely tight balance sheet liquidity and continued loss-making status. ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- is a global provider of semiconductor package design, assembly and test services. With more than 17 years of experience, the Company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The Company has operations in the United States, Asia and Europe including Hong Kong, China, and Germany. DAIMLERCHRYSLER AG: Closes Chrysler Sale to Cerberus ---------------------------------------------------- DaimlerChrysler has completed the closing for the transfer of a majority interest in Chrysler Group and for the related financial services business in NAFTA to a subsidiary of Cerberus Capital Management, L.P., a private-equity company based in New York. A subsidiary of Cerberus takes over 80.1% in the Chrysler Holding LLC, while DaimlerChrysler retains a 19.9% interest, as announced in May 2007. The effects on the financial statements of DaimlerChrysler will be explained on August 29, 2007. Basically, the conditions of the transaction and the economic effects have not changed since the agreement was signed on May 14, 2007. Furthermore, DaimlerChrysler and Cerberus have agreed to support the financing of the majority takeover of Chrysler by Cerberus in light of highly volatile US loan markets. Both companies will subscribe US$2 billion of second lien debt for Chrysler's automotive business, to be drawn within 12 months. DaimlerChrysler's portion will be US$1.5 billion. The debt will be priced at market conditions. One year after the closing, DaimlerChrysler has the right to sell this loan in the credit market. The maturity of this loan is seven years. DaimlerChrysler's financing support is a strong sign of its overall determination to make sure that, under the majority of Cerberus, Chrysler has a good start as a successful stand-alone car company. As of today, the Board of Management of DaimlerChrysler AG is reduced to six members. Tom LaSorda, Eric Ridenour and Tom Sidlik are no longer members. Within the Board of Management, Bodo Uebber additionally assumes responsibility for procurement. Due to the new corporate structure, DaimlerChrysler AG is to be renamed as Daimler AG. The shareholders are to decide on this change at an Extraordinary Shareholders' Meeting in Berlin on October 4, 2007. Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler AG and Head of the Mercedes Car Group: "Today marks a new chapter in the history of our company. Based on the clearly defined strategies in our Mercedes Car Group, Truck Group, Financial Services business divisions and for vans and buses, and our company's healthy balance sheet, we have every reason to move confidently into the future." 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. DAIMLERCHRYSLER: Chrysler's July Sales Outside N. America Up 24% ---------------------------------------------------------------- In July 2007, Chrysler Group sales outside North America grew by 24 percent (20,944 units), the best July in 10 years. Much of the additional sales volume was fueled by increases in fast- growing regions such as Latin America, where sales were up 48 percent. The significant July sales contributed to the Company's year-to-date sales growth, currently 18 percent (135,257 units), and marked an unprecedented 26 consecutive months of year-over-year sales increases. "With 26 consecutive months of sales growth, it is clear that our international strategy is a success," Michael Manley, executive vice president of international sales, marketing and business development, said. "We now we have three global brands, a product portfolio that stands out from the crowd, and a business model that provides our dealers with one of the highest return on sales in the industry. We have also improved our product quality and the overall customer satisfaction rate to ensure that our global buyers continue to come back for more." For the month, all three of Chrysler Group's brands saw increased demand compared with last year. Chrysler brand sales were up eight percent (7,480 units), led by Chrysler 300C sales. Jeep brand sales jumped 27 percent (8,461 units), supported by new vehicle availability such as Jeep Wrangler/Wrangler Unlimited and Compass. Dodge brand sales continued to grow as the Dodge Avenger and Nitro made their way into dealerships, contributing to a 54 percent increase (5,003 units). Dodge Caliber continued to lead the Chrysler Group lineup as the top- selling vehicle year-to-date in 2007, with 18,616 units sold. "Venezuela is a successful example of our localization strategy in South America," said Thomas Hausch, vice president of international sales. "With more than 2000 units sold, Venezuela was amongst the highest volume markets in the month of July, mainly due to the popularity of the locally produced Dodge Caliber, Jeep Cherokee and Jeep Grand Cherokee." 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. LAZARD LTD: Paying US$0.09 Per Share Qtrly Dividend on Aug. 31 -------------------------------------------------------------- Lazard Ltd.'s Board of Directors has declared a quarterly dividend of US$0.09 per share on its outstanding Class A common stock, payable on Aug. 31, 2007, to stockholders of record on Aug. 10, 2007. Lazard Ltd. -- http://www.lazard.com/-- one of the world's preeminent financial advisory and asset management firms, operates from 29 cities across 16 countries in North America, Europe, Asia, Australia and South America. With origins dating back to 1848, the firm provides services including mergers and acquisitions advice, asset management, and restructuring advice to corporations, partnerships, institutions, governments, and individuals. The company has locations in Australia, China, France, Germany, India, Japan, Korea and Singapore. The company reported total assets of US$2.6 billion, total liabilities of US$2.8 billion, and minority interest at US$55.7 million, resulting in a total stockholders' deficit of US$206.8 million as of March 31, 2007. PRIME 2006-1: Fitch Rates EUR13 Million Class E Notes at BB ----------------------------------------------------------- Fitch Ratings has assigned final ratings to PRIME 2006-1 Funding Limited Partnership issue of EUR181.5 million of collateralized loan obligation floating- and fixed-rate notes: -- EUR119.6 million Class A (ISIN:XS0278567994): 'AAA' -- EUR15 million Class B (ISIN:XS0278569776): 'AA' -- EUR20 million Class C (ISIN:XS0278570519): 'A' -- EUR13.9 million Class D (ISIN:XS0278571756): 'BBB' -- EUR13 million Class E (ISIN:XS0278572135): 'BB' The Class F notes, totaling EUR5 million are not rated. The final ratings of the Class A notes address the timely payment of interest and the ultimate repayment of principal. The final ratings of the Class B to Class E notes address the ultimate payment of interest and principal according to the terms of the notes. The final ratings are based on the quality of the collateral, the available credit enhancement, the priority of payments (which incorporate an excess cash trapping mechanism), and the sound legal and financial structure of the transaction. Credit enhancement for the Class A to E notes is provided by subordination and available excess spread. This transaction is a cash securitization of two different types of profit participation agreements to German small and medium- sized enterprises. The issuer is incorporated as a special- purpose vehicle in Jersey and has issued EUR186.5 million of notes (Class A to F). Together with the proceeds from the limited partner loan of EUR9.99 million and the limited partners' capital contribution of EUR0.01 million, the note proceeds have been used to enter into a portfolio of SME participation agreements, which remains static after closing. The portfolio companies were selected by the originating banks: HSH Nordbank AG (rated 'A'/'F1'/Outlook Stable), Landesbank Baden-Wurttemberg (rated 'A+'/'F1+'/Outlook Stable) and Haspa Beteilungsgesellschaft fur den Mittelstand mbH. The scheduled maturity of all Classes of notes is August 2013, and the legal maturity is August 2015. The portfolio quality was assessed by a mapping approach. Based on the mapping, the weighted average portfolio quality is deemed to be equal to a Fitch rating of 'BBB-'/'BB+'. Repayment of the notes is contingent on the cash flows generated by the SME loan portfolio and the priority of payments, as determined in the transaction documents. Compared with other German mezzanine CLOs rated by Fitch, this transaction shows the lowest number of assets (29) and the largest single obligor concentrations. Each of the six largest assets accounts for 7.6% of the portfolio amount. Fitch has therefore applied a combination of its standard CDO methodology and a concentration approach to capture the risks resulting from the lumpiness of the portfolio. PROSIEBENSAT.1 MEDIA: Fitch Affirms and Withdraws BB- Ratings ------------------------------------------------------------- Fitch Ratings has affirmed Germany-based broadcaster ProSiebenSat.1 Media AG's ratings at Long-term Issuer Default 'BB-' with a Stable Outlook and senior unsecured 'BB-' and simultaneously withdrawn them. Fitch will no longer provide ratings or analytical coverage on the company. =========== G R E E C E =========== WIND HELLAS: Tellas Sale Cues Fitch to Monitor Ownership -------------------------------------------------------- Fitch Ratings will continue to monitor developments in the ownership of Greek fixed-line operator Tellas SA, in particular for any impact on the credit profile of Greek mobile operator WIND Hellas Telecommunications S.A. (rated 'B'/Stable). It was recently reported that Naguib Sawiris, majority shareholder of Weather Investments SpA and indirect ultimate shareholder of WIND Hellas, has agreed to purchase the 50% of Tellas owned by Public Power Corporation SA, a Greek state- controlled utility company, for EUR175 million. The remaining 50% (plus one share) of Tellas is currently owned by Italy's Wind Telecomunicazioni SpA (rated 'BB-'/Watch Negative), also ultimately owned by Weather Investments. Fitch considers it likely that Tellas will at some point become part of the WIND Hellas group. However, no rating action is expected to be taken until an announcement is made regarding any acquisition by WIND Hellas: current reports state the acquisition is to be made by Mr Sawiris, and not by WIND Hellas at this stage. In Fitch's view, a combination of, or cooperation between, WIND Hellas's mobile operations and Tellas's fixed-line operations may be positive in terms of a defensive strategy, but there is limited evidence to support a significant increase in subscribers as a result of cross-selling opportunities between a mobile subscriber base and a fixed-line business. Nevertheless, Greek broadband penetration is still low by western European standards so there is opportunity for alternative providers, and the experience of WIND Hellas's Italian sister company Wind Telecomunicazioni may prove useful in developing a dual-play business further and extracting any synergies that may be available. In general however, Fitch would expect a fixed-line business to contribute lower margins than a mobile business, and a combination would therefore be margin-dilutive even if revenue and EBITDA-accretive. In Fitch's view, the future success and further growth of Tellas's fixed-line business in Greece will depend on the depth of its fixed network, wholesale line rental and local loop unbundling rates, and the ability to access the incumbent OTE's exchanges. Under the terms of WIND Hellas's senior secured notes, the group may incur acquisition debt up to 6.5x pro forma consolidated group leverage or 3.75x pro forma consolidated WIND Hellas leverage. During the first quarter of 2007 the group reported trailing 12 months adjusted (for one-off costs and Vodafone roaming) pro forma EBITDA of EUR414 million, and net cash-pay group leverage on this basis was 6.4x. WIND Hellas is the third-largest mobile operator in Greece and also owns the number-four operator Q-Telecom, with a combined 4.2 million customers at first quarter of 2007. The group reported revenues of EUR1.151 billion and unadjusted EBITDA of EUR361 million for the 12 months to March 2007. Results for second quarter of 2007 are due within the next two weeks. Tellas is a Greek fixed-line operator with over 800,000 connections at end of 2006. Current ratings on WIND Hellas: -- WIND Hellas Telecommunications S.A. Long-term Issuer Default Rating: 'B'; Outlook Stable; -- WIND Hellas Telecommunications S.A. Short-term Issuer Default Rating: 'B'; -- Hellas Telecommunications (Luxembourg) V senior revolving credit facility: 'B+'/'RR3'; -- Hellas Telecommunications (Luxembourg) V senior secured floating rate notes due 2012: 'B+' /'RR3'; -- Hellas Telecommunications (Luxembourg) III senior notes due 2013: 'B+'/'RR3'; and -- Hellas Telecommunications (Luxembourg) II subordinated floating-rate notes due 2015: 'CCC+'/'RR6'. ============= H U N G A R Y ============= HUTSCHENTEUTHER HUNGARIA: Sells Assets in Liquidation ----------------------------------------------------- The assets of Hutschenteuther Hungaria were sold in liquidation to a Hungarian investor for an undisclosed amount, The Financial Times reports, citing Hungarian News Agency (MTI) as its source. In an interview with MTI, bailiff Pal David declined to name the buyer or the amount it paid for Hutschenteuther. According to FT, business daily Napi Gazdasag reported that the buyer was Royal Martin. The newspaper also disclosed that the new owner will continue the plant's operations as a porcelain maker. MTI was informed that Hutschenteuther's price was below the HUF116 million asking price. Headquartered in Hungary, Hutschenteuther Hungaria makes porcelain. It was set up on 1996 by German company Winterling Porzellan, which held a 90% stake on the company, and Hungary's Hollohaz Porcelain Factory, which held 10%. Hutschenteuther was declared bankrupt in 2000. VALEANT PHARMACEUTICALS: Earns US$16.8 Million in Second Quarter ---------------------------------------------------------------- Valeant Pharmaceuticals International reported revenues totaling US$231 million for the three months ended June 30, 2007, compared to US$230.4 million for the three months ended June 30, 2006. Product sales for the second quarter 2007 increased 2% to US$212.1 million, compared to US$208.8 million for the second quarter 2006. Second quarter 2007 net income was US$16.8 million, compared to a loss of US$42.3 million for the second quarter 2006. As of June 30, 2007, the company posted total cash and marketable securities of US$386.7 million, as compared with total cash and marketable securities of US$335.7 million at Dec. 31, 2006. The company had Long-term debt of US$776.5 million at the end of the second quarter 2007. For the six months ended June 30, 2007, the company reported revenues totaling US$444.4 million, as compared with total revenues of US$429.9 million for the six months ended June 30, 2006. The company had net income of US$25 million for the first half of 2007, as compared with net loss of US$48.5 million for the first half of 2006. Timothy C. Tyson, president and chief executive officer, said, "We are encouraged that product sales improved in the second quarter, led by growth in many promoted products in North America and EMEA. Although it still had a negative impact on the quarter as a whole, we resolved the wholesaler distribution issue in Mexico toward the end of the quarter and sales in that market are returning to normal. We continue to believe that we will achieve our goal of industry-average growth for the full year. We remained disciplined in our spending, controlling overhead costs while investing in promoted products and advancing our development pipeline." Regional Sales Performance North America product sales increased 8% in the 2007 second quarter, primarily due to increased sales of Efudex, Cesamet and Migranal(R). Sales in the International region decreased 12% in the 2007 second quarter, essentially due to the issues in the Mexican distribution chain that began earlier in the year. Sales in the Europe, Middle East and Africa region increased 7% in the 2007 second quarter, primarily due to the effects of foreign currency. Share Repurchase Update On June 11, 2007, the company announced that its board of directors had approved a share repurchase program that authorized the company to repurchase up to US$200 million of its outstanding common stock over a two-year period. In connection with this program, the company has repurchased 3.7 million shares of its common stock through July 31, 2007, at an aggregate amount of US$63 million. Of the cumulative total, 1.6 million shares were repurchased in the 2007 second quarter at an aggregate amount of US$28 million. Restructuring Update The company completed the sale of its manufacturing facilities in Switzerland and Puerto Rico in June 2007, which concludes the restructuring plan announced in April 2006. Restructuring charges in the 2007 second quarter totaled US$6.3 million, bringing the overall total restructuring charges to US$152 million, of which US$34 million is cash related. The restructuring will result in cost savings of more than US$50 million annually. About Valeant Pharmaceuticals Headquartered in Costa Mesa, California, Valeant Pharmaceuticals International -- http://www.valeant.com/-- is a global specialty pharmaceutical company with USUS$823 million of 2005 revenues. It has offices in Argentina, Hungary, Poland, Singapore, Taiwan, and the United Kingdom. * * * In January 2007, Moody's Investors Service confirmed the ratings of Valeant, including the B2 Corporate Family Rating, and concluded the rating review for possible downgrade, which was first initiated on Oct. 23, 2006. Valeant's rating outlook is stable. ============= I R E L A N D ============= ADVANCED MEDICAL: Posts US$166 Mln Net Loss in Second Quarter ------------------------------------------------------------- Advanced Medical Optics Inc. reported financial results for the second quarter of 2007. AMO reported a second-quarter net loss under Generally Accepted Accounting Principles of US$166.8 million, which included the impact of the recall. These results also included: * US$85.4 million pre-tax, non-cash in-process research and development charge and a US$7.7 million pre-tax, non-cash inventory step-up to fair value charge related to the IntraLase acquisition. * approximately US$14.5 million in pre-tax transaction- related charges. * US$1.2 million in a pre-tax, non-cash deferred financing cost write-off related to the IntraLase acquisition financing and a gain on derivative instruments. * US$9.8 million unfavorable tax impact associated primarily with acquisition-related items. In the same period last year, AMO reported a GAAP net loss of US$2.7 million. The company's second-quarter 2007 net sales rose 1.7% to US$261.4 million. The sales increases related to the April 2007 acquisition of IntraLase Corp. and organic growth were offset by lost sales and product returns related to the May 2007 MoisturePlus recall. Foreign currency impacts increased net sales by 1.7%. "In the second quarter, we moved aggressively to integrate IntraLase," Jim Mazzo, AMO chairman, president and chief executive officer, said. "Our Advanced CustomVue(R) technology and IntraLase(R) FS laser drove laser vision correction sales to new highs, demonstrating the strategic value of this combination. In addition, our portfolio of refractive implants delivered double-digit growth on a sequential and year-over-year basis and helped fuel an 8 percent rise in intraocular lens sales. Furthermore, our eye care business moved quickly and responsibly to execute a global recall, and developed a comprehensive plan to re-enter the multipurpose contact lens care market ahead of schedule." AMO estimated that the recall reduced eye care sales by approximately US$54 million, including approximately US$31 million in returns and an estimated US$23 million in lost sales. As a result of the sales returns, the company reported negative multipurpose sales of US$7.8 million. The company incurred recall-related costs of approximately US$27 million, which were recognized in cost of sales and SG&A expense. Gross profit decreased 22.3% to US$127.9 million, including a US$7.7 million non-cash inventory step-up to fair value charge related to the IntraLase acquisition. Gross profit was also impacted by approximately US$50.9 million in returns and costs and an estimated US$15.9 million related to lost sales associated with the recall. R&D expense rose 24.8% to US$20.7 million, or approximately 7.9% of sales, compared to 6.4 percent in the second quarter of 2006. The increase was due primarily to the addition of IntraLase and WaveFront Sciences Inc. Six-Month Financial Results Net sales for the first six months of 2007 rose 3.6% to US$513.1 million, including a 2.1% increase related to foreign currency fluctuations. The rise reflects the addition of the IntraLase and WaveFront Sciences acquisitions and organic growth, which were largely offset by estimated recall-related lost sales and returns. The company reported a GAAP net loss for the first six months of 2007 of US$154.7 million. The per-share loss was increased by US$2.02 due to an US$87 million charge for in-process R&D, approximately US$22.2 million in transaction-related charges, a US$1.3 million deferred financing cost write-off, a US$300,000 loss on derivative instruments and a US$9.7 million unfavorable tax impact associated primarily with acquisition-related items. About Advanced Medical Optics Headquartered in Santa Ana, California, Advanced Medical Optics -- http://www.amo-inc.com/-- (NYSE: EYE) develops, manufactures and markets ophthalmic surgical and contact lens care products. The company has operations in Germany, Japan, Ireland, Puerto Rico, and Brazil. * * * As reported in the Troubled Company Reporter on July 9, 2007, Moody's Investors Service maintains Advanced Medical Optics, Inc. ratings on review for possible downgrade following AMO's announcement of its offer for Bausch & Lomb, Inc. for US$75 per common share in a combination of US$45 in cash and US$30 in AMO common stock. These ratings remain on review for possible downgrade: B1 Corporate Family Rating; B1 Probability of Default Rating; Ba1 (LGD2/14%) rating on US$300 million senior secured revolver due 2013; Ba1 (LGD2/14%) rating on US$450 million senior secured term loan B due 2014; B1 (LGD4/50%) rating on US$250 million senior subordinated notes due 2017; and B3 (LGD5/81%) rating on US$251 million convertible senior subordinated notes due 2024. W.R. GRACE: Completes Washcoat Biz Sale to Rhodia Silcea -------------------------------------------------------- W.R. Grace & Co. has completed the sale of its washcoat product line and Cincinnati, Ohio site assets to Rhodia Silcea. Grace's washcoat products are used primarily in the manufacture of automotive control catalysts, an integral component of catalytic converters for engines. The silica production based at the Cincinnati facility has been transferred to Grace's Curtis Bay, Maryland site. "Since the decision to evaluate our washcoat product line, we are investing in the necessary processes and capital to establish Good Manufacturing Practices-compliant operations at Curtis Bay, one of our largest manufacturing facilities," said Gregory E. Poling, President, Grace Davison. About 700 employees are based at Curtis Bay, which includes integrated manufacturing operations across most of Davison's product lines, as well as a world-class technical center. "We are building upon the site's foundation of silica expertise, extensive functional support, and employee engagement to design a world- class operation that delivers premier quality products for our pharmaceutical, dentifrice, and consumer products customers. We are committed to meeting the needs of our global customers who depend on the quality that Grace Davison products are known for." 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. ========= I T A L Y ========= ALITALIA SPA: Italian Magistrate Probes Alitalia Insider Trading ---------------------------------------------------------------- A magistrate in Rome has commenced a probe into possible insider trading in Alitalia S.p.A.'s shares, Giselda Vagnoni of Reuters reports, citing judicial sources. Alitalia's share price, Reuters reports, have swung sharply before after a failed bid to sell the Italian government's 39.9% stake in the carrier. Lawmakers called for an immediate investigation on the swings and trading suspension after the shares lost more than 7% on Aug. 1, erasing sharp gains a week earlier. The Rome magistrate has asked for a report on Alitalia's stock movements from Italian stock market regulator CONSOB. Meanwhile, Alitalia's new chairman, Maurizio Prato, told the company's trade unions that the government will try to sell its stake without imposing conditions outlined in the failed auction. He also suggested that any potential buyer may not have to launch a full bid for the airline, according to Claudio Genovesi, the secretary-general of the FIT-CISL union, Reuters notes. 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. FIAT SPA: Requests Delisting from New York Stock Exchange --------------------------------------------------------- Fiat S.p.A. has filed a request to delist its American Depositary Shares from the New York Stock Exchange effective Aug. 13, 2007, various reports say. The company also filed for deregistration from the U.S. Securities and Exchange Commission, which becomes effective 90 days after the filing, Thomson Financial reports. Fiat submitted both requests to the SEC on Aug. 3, 2007, after its U.S. shares suffered from low trading, Reuters relates. Fiat CEO Sergio Marchionne said it is costly for the company to remain listed on the SEC. The company maintains, however, that the delisting and deregistration would not affect its business strategy. The company's shares continue to trade in Milan, Italy. 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. HUNTSMAN CORP: Holders Linked with MatlinPatterson Sell Shares -------------------------------------------------------------- Huntsman Corporation disclosed that certain existing stockholders affiliated with MatlinPatterson Global Advisers LLC have entered into an underwriting agreement providing for a registered public secondary sale of 56,979,062 shares of Huntsman common stock. This sale is pursuant to the shelf registration statement filed with the Securities and Exchange Commission on July 31, 2007. The sale is expected to close on Aug. 6, 2007, subject to customary closing conditions. Huntsman will not receive any of the proceeds from this offering. Credit Suisse Securities (USA) LLC is the underwriter for the offering. A copy of the prospectus and, when available, a copy of the prospectus supplement may be obtained from: Credit Suisse Prospectus Department One Madison Avenue New York, NY 10010 Tel 1-800-221-1037 Headquartered in Salt Lake City, Utah, Huntsman Corp. (NYSE: HUN) -- http://www.huntsman.com/-- manufactures and markets differentiated and commodity chemicals. Its operating companies manufacture products for a variety of global industries including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. The company has operations in Indonesia, Italy, and Guatemala. * * * As reported in the Troubled Company Reporter on June 28, 2007, Moody's Investors Service placed the debt ratings and the corporate family ratings (CFR -- Ba3) for Huntsman Corporation and Huntsman International LLC, a subsidiary of Huntsman under review for possible downgrade. TEKSID ALUMINUM: Soliciting Consents to Amend 11-3/8% Notes ----------------------------------------------------------- Teksid Aluminum Luxembourg S.a r.l., S.C.A., has commenced a solicitation of consents, on Aug. 2, 2007, from each holder of its outstanding 11-3/8% Senior Notes due 2011 pursuant to a consent solicitation statement dated Aug. 2, 2007, to implement proposed amendments to the indenture governing the Senior Notes. The consent solicitation will expire at 10:00 a.m., New York City time (3:00 p.m., London time), on Aug. 8, 2007, unless extended or earlier terminated. Adoption of the proposed amendments and execution of a supplemental indenture giving effect to the proposed amendments (the Supplemental Indenture) requires the receipt of consents of at least a majority of the then aggregate outstanding principal amount of Senior Notes (the Requisite Consents) on or prior to the Expiration Date. Noteholders who consent at or prior to the execution of the Supplemental Indenture may revoke their consents at any time prior to the execution of the Supplemental Indenture, but not thereafter. By delivering their consents, Noteholders are consenting to: (i) allow the sale of Teksid Aluminum S.r.l. and, indirectly, its subsidiary Teksid Aluminum Getti Speciali S.r.l., (the Fiat Sold Companies) to Fiat Powertrain Technologies S.p.A. pursuant to an agreement dated July 25, 2007 (as such agreement may be amended in accordance with the terms of the Statement); (ii) allow the repayment or settlement of certain intercompany obligations, including the obligations owed by the Company and TK Aluminum-Luxembourg Finance S.a r.l. to the Fiat Sold Companies and the obligations owed by the Fiat Sold Companies to certain of the company's indirect subsidiaries organized under the laws of France; (iii) permit the transfer of the quotas held by the Company in Teksid Aluminum Getti Speciali S.r.l. to Teksid Aluminum S.r.l.; (iv) extend the time by which an offer to purchase Senior Notes with the proceeds of the sales of each of Teksid Aluminum Poland Sp. z o.o., the company's indirectly held minority equity interest in Nanjing Teksid Aluminum Foundry and the Company's equity interest in Cevher Dokum Sanayi A.S. is to be made to no later than Oct. 15, 2007; and (v) extend the time by which an offer to purchase Senior Notes with the proceeds of each of the Fiat Payment and the Escrow Amount is to be made to no later than ten business days after receipt of such payments, but in no event prior to Oct. 15, 2007. As soon as the Requisite Consents are obtained, the company intends to execute the Supplemental Indenture. There will not be any consent fee offered to holders of Senior Notes in conjunction with the consent solicitation. The completion of the consent solicitation is subject to, among other things, the following conditions: the valid receipt, prior to the Expiration Date, of the Requisite Consents, the due execution of the Supplemental Indenture, and certain other general conditions described in the Statement. These conditions are for the company's sole benefit and the company may waive them in whole or in part at any or at various times prior to the expiration of the consent solicitation in its sole discretion. In addition, subject to the terms set forth in the Statement, the company expressly reserves the right, but will not be obligated, at any time or from time to time, on or prior to the Expiration Date, to extend or amend the consent solicitation in any respect, subject to applicable law. About Teksid Aluminum Teksid Aluminum Luxembourg S.a r.l. -- http://www.teksidaluminum.com/-- manufactures aluminum engine castings for the automotive industry. Principal products include cylinder heads, engine blocks, transmission housings, and suspension components. The company operates 15 manufacturing facilities in Europe, North America, South America, and Asia. The company maintains operations in Italy, Brazil, and China. * * * As reported on May 9, 2007, Moody's Investors Service confirmed the Caa3 Corporate Family Rating of Teksid Aluminum Ltd as well as the Ca rating of the company's senior notes at Teksid Aluminum Luxembourg Sarl SCA with a stable outlook. It also lowered its long-term debt rating on the EUR240 million senior unsecured notes issued by Teksid Aluminum Luxembourg S.a.r.l., S.C.A. and guaranteed by TKA to 'D' from 'C'. =================== K A Z A K H S T A N =================== BAREGIT-KAZAKHSTAN: Claims Filing Period Ends Sept. 14 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai has declared CJSC Baregit-Kazakhstan insolvent. Creditors have until Sept. 14 to submit written proofs of claims to: CJSC Baregit-Kazakhstan Gogol Str. 177a Kostanai Kazakhstan BT FOOD-2: Creditors Must File Claims Sept. 12 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has ruled a compulsory liquidation of LLP BT Food-2. Creditors have until Sept. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan GARANT+ LLP: Claims Filing Period Ends Sept. 12 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Firm Garant+ insolvent. Creditors have until Sept. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 95-316 Kostanai Kazakhstan KULAGER JSC: Creditors' Claims Due on Sept. 18 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda region has declared JSC Kulager insolvent. Creditors have until Sept. 18 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kyzylorda Jakayev Str. 71 Kyzylorda Kazakhstan MONTAGE-CENTRE LLP: Claims Registration Ends Sept. 12 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has ruled a compulsory liquidation of LLP Montage-Centre on May 28. Creditors have until Sept. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan SERVICE-KAZAKHSTAN TRACTOR: Creditors Must File Claims Sept. 12 --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Service-Kazakhstan Tractor insolvent. Creditors have until Sept. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 95-316 Kostanai Kazakhstan SEYNUR LLP: Claims Filing Period Ends Sept. 6 --------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Seynur insolvent on June 19. Creditors have until Sept. 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Micro District 4, 1-89 Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 25-55-25 TEMIR BOLAT: Creditors' Claims Due on Sept. 12 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Temir Bolat insolvent. Creditors have until Sept. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 XXX AKTOBE: Claims Registration Ends Sept. 12 --------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP XXX Aktobe insolvent. Creditors have until Sept. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 =================== K Y R G Y Z S T A N =================== MEDICAMENTY ROSSIYI: Claims Filing Period Ends September 11 ----------------------------------------------------------- Joint Kyrghyz-Russian LLC Russian Medicaments Medicamenty Rossiyi has declared insolvency. Creditors have until Sept. 11 to submit written proofs of claim to: LLC Medicamenty Rossiyi Toktogul Str. 208/1 Bishkek Kyrgyzstan Tel/Fax: (+996 312) 21-44-48 (+996 312) 21-86-26 OZKENT LLC: Creditors' Meeting Slated for August 17 --------------------------------------------------- Creditors of LLC Ozkent will convene at 11:00 a.m. on Aug. 17 at: Room 106 Moskovskaya Str. 151 Bishkek Kyrgyzstan The Inter-District Court of Bishkek for Economic Issues declared LLC Ozkent (Case No. ED-322/07mbs8) insolvent on June 11, 2007. Subsequently, bankruptcy proceedings were introduced at the company. Kerez Ilimkaziyeva has been appointed temporary insolvency manager. Creditors must submit their proofs of claim and be registered within sevens days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. The temporary insolvency can be reached at: Kerez Ilimkaziyeva (+996 312) 21-67-26 (+996 312) 60-93-32 =========== N O R W A Y =========== DRESSER-RAND: Earns US$26.2 Million in Second Quarter of 2007 ------------------------------------------------------------- Dresser-Rand Group Inc. reported net income of US$26.2 million for the second quarter 2007. This compares to a net income of US$10.7 million for the second quarter 2006. Second quarter 2007 income included a provision for litigation and related interest of US$4.2 million (US$2.6 million after-tax or US$0.03 per diluted share) and a charge of US$ 2.3 million (US$1.5 million after-tax or US$0.02 per diluted share) related to a change in an accounting estimate for workers' compensation. "The improvements in our second quarter 2007 results over last year were somewhat tempered by the litigation provision and a change in accounting estimate," Vincent R. Volpe, Jr., President and Chief Executive Officer of Dresser- Rand, said. "The impact of these two items was approximately US$0.05 per diluted share. Additionally, changes in procurement processes and a delay in the budget appropriations by certain of our national oil company clients resulted in lower than expected aftermarket bookings and revenues for the period. Total revenues increased 4%, operating income increased 14%, and our backlog grew 59% over the year ago period. New unit bookings were strong as the upstream, midstream and downstream markets remain very active, with the most notable order coming for a floating, production, storage and offloading project for British Petroleum for approximately US$154 million. Total revenues for the second quarter 2007 of US$441.2 million increased US$17.2 million or 4% compared to US$424 million for the second quarter 2006. Total revenues for the six months ended June 30, 2007 of US$755.6 million increased US$40.1 million or 6% compared to US$715.5 million for the corresponding period in 2006. Operating income for the second quarter 2007 was US$50.1 million. This compares to operating income of US$27.2 million for the second quarter 2006 which included US$16.8 million for stock-based compensation expense for exit units. Second quarter 2007 operating income increased from the year ago quarter due to higher pricing and productivity improvements. Operating income for the six months ended June 30, 2007 was US$83 million. This compares to operating income of US$57.4 million for the corresponding period in 2006, which included a net charge of US$5 million comprised of the US$16.8 million for stock-based compensation expense for exit units partially offset by a US$12 million curtailment gain. Operating income increased from the year ago six-month period primarily due to higher pricing. As of June 30, 2007, cash and cash equivalents totaled US$160.8 million and borrowing availability under the US$350 million revolving credit portion of the company's senior credit facility was US$147.5 million, as US$202.5 million was used for outstanding letters of credit. In first six months of 2007, cash provided by operating activities was US$136.2 million, which compared to US$6.9 million for the corresponding period in 2006. The increase of US$129.3 million in net cash provided by operating activities was principally from changes in working capital. In the first six months of 2007, capital expenditures totaled US$8.6 million and the company prepaid US$110.1 million of its outstanding indebtedness under its senior secured credit facility. As of June 30, 2007, total debt was US$396.9 million and total debt net of cash and cash equivalents was approximately US$236.1 million. In July 2007, the company prepaid the remaining US$26.8 million of outstanding indebtedness under its senior secured credit facility. About Dresser-Rand Headquartered in Houston, Texas, Dresser-Rand Group Inc. (NYSE: DRC) is a supplier of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * Standard & Poor's Ratings Services raised on Sept. 13, 2006, its corporate credit rating on rotating equipment maker Dresser-Rand Group Inc. to 'BB-' from 'B+' and revised the outlook on the rating to stable from positive. DRESSER-RAND: Supplying NatGas Compression Unit to P-18 Oil Rig --------------------------------------------------------------- Dresser-Rand said in a statement that it will supply the natural gas compression unit to Brazil's state-run oil firm Petroleo Brasileiro SA's P-18 oil rig in the Campos basin's Marlin field. Business News Americas relates that the agreement is estimated at over US$11 million. It would be signed in August. Dresser-Rand told BNamericas that it "developed a separation and centrifugal compression technology that allows a reduction in the size and weight of the required compression equipment." Dresser-Rand also supplied compression systems to the P-53 floating production, storage and offloading vessel in the Marlim field, BNamericas states. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. About Dresser-Rand Dresser-Rand Group Inc. (NYSE: DRC) is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * Standard & Poor's Ratings Services raised on Sept. 13, 2006, its corporate credit rating on rotating equipment maker Dresser-Rand Group Inc. to 'BB-' from 'B+' and revised the outlook on the rating to stable from positive. =============== P O R T U G A L =============== QUANTUM CORP: Posts US$22.6 Mln Net Loss in Qtr. Ended June 30 -------------------------------------------------------------- Quantum Corp. announced on Wednesday its results for the fiscal first quarter ended June 30, 2007. The company reported a GAAP net loss of US$22.6 million for the first quarter of fiscal 2008, compared to a net loss of US$3.6 million in the first quarter of fiscal 2007. The US$22.6 million net loss in the first quarter of fiscal 2008 reflected a number of major expense items totaling US$28 million, much of which was also driven by the ADIC acquisition: US$13 million in amortization of intangibles, US$12 million in restructuring and other transition expenses related to the acquisition, and US$3 million in stock-based compensation charges. Revenue for the first quarter of fiscal 2008 was US$246 million. This represented a 32% increase over the same quarter last year, largely resulting from Quantum's acquisition of Advanced Digital Information Corp. (ADIC) in August 2006. One of the highlights of the June quarter was Quantum's gross margin results. The company's GAAP gross margin rate was 31.8%, a significant increase over the 27.9% rate in the same quarter last year and its best performance in three years. Operating expenses were US$92 million, up from US$55 million in the first quarter of fiscal 2007 primarily as a result of the ADIC acquisition. "It has been just under a year since we completed the ADIC acquisition, and we are very pleased with what we have been able to achieve as a combined company in this relatively short time," said Rick Belluzzo, chairman and chief executive officer of Quantum. "As in previous years, the June quarter was challenging from a revenue standpoint, but our operating income as a percentage of revenue over the last three quarters has been the best we've achieved in more than five years, when amortization, stock-based compensation and acquisition-related expenses are excluded. In addition, we've completed the vast majority of the integration and strategic actions that will now allow us to focus on growing the business by taking advantage of our expanded opportunities." Quantum's product revenue, which includes sales of the company's hardware and software products and services, totaled US$222 million in the first quarter of fiscal 2008. This represented a net increase of US$63 million over the first quarter of fiscal 2007, with greater revenue contributions from tape automation, disk systems and software, and services offsetting a decline in royalties and device revenues. Quantum continued to increase the percentage of its product revenue coming from branded sales, which rose to 58% in the June quarter. Quantum had US$24 million in royalty revenue for the first quarter of fiscal 2008, down approximately US$3.5 million from the same quarter last year. Disk Systems and Software Momentum In announcing its June quarter results, Quantum also highlighted the momentum in its disk systems and software business. The company began shipping its DXi3500 and DXi5500 disk backup appliances with data de-duplication and remote replication capabilities less than six months ago, and in the last two months alone has sold nearly twice as many units as it did in the previous four months. These DXi-Series products have attracted a broad range of customers around the world -- from smaller organizations to leading brand name companies to major governmental agencies -- with representation across a wide array of industries, including telecommunications, financial services, health care, education, technology, and consumer products. Quantum also pointed to several competitive advantages that position it to capitalize on the opportunities in disk-based data protection moving forward. Along with Quantum's global scale and strong sales and service infrastructure, these advantages include a large installed base of tape automation customers it can help in transitioning to disk backup and an industry-leading tape library portfolio the company can leverage in bundled disk-tape offerings. Quantum is already seeing the benefits of this combination, as roughly 20% to 25% of customers that purchase a DXi-Series unit also buy tape at the same time. In addition to building momentum in its disk-based backup business over the last several months, Quantum has strengthened its StorNext data management software portfolio. In April, the company introduced StorNext 3.0, which extends high performance, resilient data sharing to local area network clients and offers data de-duplication for archiving. Quantum has also enhanced its StorNext market position with HP as a global reseller and continued to gain new enterprise customers such as Microsoft, Fox News and the U.S. Bureau of Land Management. At June 30, 2007, the company's consolidated balance sheet showed US$1.1 billion in total assets, US$872.0 million in total liabilities, and US$238.4 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free at http://researcharchives.com/t/s?2209 About Quantum Corp. Headquatered in San Jose, California, Quantum Corp. (NYSE: QTM) -- http://www.quantum.com/-- is a global storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. The company works closely with a broad network of resellers, OEMs and other suppliers to meet customers' evolving data protection needs. In Latin America, the company has distributors in Argentina, Brazil, Chile, Mexico and Puerto Rico. In Europe, the company maintains operations in Denmark, Czech Republic, Romania, Portugal, France, Germany, and the United Kingdom. Quantum reported revenue of slightly more than USUS$1 billion for the fiscal year ending March 31, 2007. * * * As reported in the Troubled Company Reporter on June 20, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on San Jose, California-based Quantum Corp. At the same time, Standard & Poor's revised its outlook on Quantum to positive from stable. =========== R U S S I A =========== A. RADISHEV: Creditors Must File Claims by Sept. 14 --------------------------------------------------- Creditors of OJSC Tannery Named After A. Radishev have until Sept. 14 to submit proofs of claim to: M. Moskvin Insolvency Manager Premise 10n Letter A Bolshoj Pr. P.S. 79 197022 St. Petersburg Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-36146/2006. The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: OJSC Tannery Named After A. Radishev Kozhevennaya Liniya 27 199106 St. Petersburg Russia BELGOK CJSC: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------- The Arbitration Court of Belgorod commenced bankruptcy supervision procedure on CJSC Belgok. The case is docketed under Case No. A08-2216/07-11. The Temporary Insolvency Manager is: A. Ovchinnikov Rzhevskoe Shosse 11 Shebekino 309290 Belgorod Russia The Court is located at: The Arbitration Court of Belgorod Narodnyj Avenue 135 308600 Belgorod Russia The Debtor can be reached at: CJSC Belgok Lenina Str. 16 Stroitel Yakovlevskiy 309070 Belgorod Russia BUCYRUS INT'L: Earns US$27.8 Million in Second Quarter 2007 ----------------------------------------------------------- Bucyrus International Inc. disclosed its summary unaudited results for the three and six months ended June 30, 2007. Bucyrus acquired DBT on May 4, 2007, for US$710 million in cash, subject to certain post-closing adjustments, and 471,476 shares of Bucyrus' common stock with a market value of US$21.8 million. Net earnings for the second quarter of 2007 were US$27.8 million, or US$.81 per share, compared with US$21.6 million, or US$0.69 per share, for the second quarter of 2006. Net earnings for the six months ended June 30, 2007, were US$45.6 million, or US$1.39 per share, compared with US$36.1 million, or US$1.15 per share, for the six months ended June 30, 2006. Second Quarter Operating Results The net assets acquired and results of operations of DBT since the date of acquisition are included in Bucyrus' financial information presented below which, as a result of the shortened reporting period, may not be indicative of future results. Sales for the second quarter of 2007 were US$374.8 million, an increase of US$193.0 million, or 106.2%, from US$181.8 million for the second quarter of 2006. Original equipment sales were US$189.0 million, an increase of US$135.2 million, or 251.6%, from US$53.8 million for the second quarter of 2006. aftermarket parts and service sales were US$185.8 million, an increase of US$57.8 million, or 45.1%, from US$128.0 million for the second quarter of 2006. Sales for the six months ended June 30, 2007 were US$565.2 million, an increase of US$217.7 million, or 62.7% from US$347.5 million for the six months ended June 30, 2006. Original equipment sales were US$267.4 million, an increase of US$160.2 million, or 149.4%, from US$107.2 million for the six months ended June 30, 2006. Aftermarket parts and service sales were US$297.8 million, an increase of US$57.5 million, or 23.9%, from US$240.3 million for the six months ended June 30, 2006. Surface mining sales for second quarter of 2007 were US$213.6 million, an increase of US$31.8 million, or 17.5%, from US$181.8 for the second quarter of 2006. Surface mining original equipment sales were US$85.7 million, an increase of US$31.9 million, or 59.5%, from US$53.8 million for the second quarter of 2006, and aftermarket parts and service sales were US$127.9 million, a decrease of US$.1 million, or 0.1%, from US$128.0 million for the second quarter of 2006. Surface mining sales for the six months ended June 30, 2007 were US$404.0 million, an increase of US$56.5 million, or 16.3%, from US$347.5 million for the six months ended June 30, 2006. Surface mining original equipment sales were US$164.1 million, an increase of US$56.9 million, or 53.1%, from US$107.2 million for the six months ended June 30, 2006, and aftermarket parts and service sales were US$239.9 million, a decrease of US$.4 million, or .2%, from US$240.3 million for the six months ended June 30, 2006. The overall increase in surface mining sales is the result of sustained demand and increased prices of commodities that are surface mined by Bucyrus machines. Capacity constraints continue to have an impact on surface mining sales. The ongoing expansion of Bucyrus' South Milwaukee facilities is expected to be completed by the first quarter of 2008. Underground mining sales for the second quarter and first six months of 2007 were US$161.2 million and consisted of US$103.3 million and US$57.9 million of original equipment and aftermarket parts and service sales, respectively. Underground mining sales were at the level expected when DBT was acquired. Gross profit for the second quarter of 2007 was US$96.3 million, or 25.7% of sales, compared with US$46.9 million, or 25.8% of sales, for the second quarter of 2006. Gross profit for the six months ended June 30, 2007 was US$148.4 million, or 26.3% of sales, compared with US$87.8 million, or 25.3% of sales, for the six months ended June 30, 2006. Gross profit for the second quarter and first six months of 2007 was reduced by US$6.2 million of amortization of purchase accounting adjustments as a result of the acquisition of DBT. Excluding this amortization, the gross profit percentage for the second quarter and first six months of 2007 in each case would have been 27.3%. The increases in gross profit were primarily due to the acquisition of DBT and increased surface mining original equipment sales, as well as improved gross margins on both surface mining original equipment and aftermarket parts and services. Selling, general and administrative expenses for the second quarter of 2007 were US$42.9 million, or 11.5% of sales, compared with US$18.1 million, or 9.9% of sales, for the second quarter of 2006. Selling, general and administrative expenses for the six months ended June 30, 2007 were US$64.1 million, or 11.3% of sales, compared with US$33.5 million, or 9.7% of sales, for the six months ended June 30, 2006. The increase in selling, general and administrative expenses was primarily due to the acquisition of DBT. Excluding the impact of the acquisition of DBT, the dollar amount of selling, general and administrative expenses in the second quarter of 2007 approximated the dollar amount of selling, general and administrative expenses recognized in recent quarters. Operating earnings were US$44.3 million for the second quarter of 2007, an increase of 74.7% from US$25.4 million for the second quarter of 2006. Operating earnings for the six months ended June 30, 2007 were US$72.2 million, an increase of 49.2% from US$48.4 million for the six months ended June 30, 2006. Included in second quarter and first six months operating earnings for 2007 was US$11.5 million related to the operations of DBT, which is net of US$10.5 million of purchase accounting adjustments. In addition to operating earnings related to DBT operations, operating earnings for the quarter and six months ended June 30, 2007, increased primarily due to increased gross profit resulting from increased sales volume. Interest expense was US$7.0 million for the second quarter of 2007 compared with US$.6 million for the second quarter of 2006. Interest expense for the six months ended June 30, 2007 was US$8.4 million compared with US$1.2 million for the six months ended June 30, 2006. The increase in interest expense in 2007 was due to increased debt levels related to the financing of the acquisition of DBT. Income tax expense for the second quarter 2007 was US$11.0 million compared with US$3.2 million for the second quarter 2006. Income tax expense for the six months ended June 30, 2007, was US$19.6 million compared with US$11.0 million for the six months ended June 30, 2006. The effective rate for the second quarter of 2007 was 28.3%, which is lower than the statutory rate as a result of the implementation of the financing structure and certain one-time adjustments related to the acquisition of DBT. Income tax expense for the second quarter of 2006 was reduced by a net income tax benefit of approximately US$3.7 million related to foreign tax credits. The foreign tax credits resulted from the completion of Bucyrus' evaluation of its potential to claim additional foreign tax credits generated in previous tax periods. EBITDA for the second quarter of 2007 was US$57.7 million, an increase of 98.4% from US$29.1 million for the second quarter of 2006. As a percent of sales, EBITDA for the second quarter of 2007 was 15.4% compared to 16.0% for the second quarter of 2006. EBITDA for the six months ended June 30, 2007 was US$89.8 million, an increase of 61.3% from US$55.7 million for the six months ended June 30, 2006. As a percent of sales, EBITDA for the six months ended June 30, 2007, was 15.9% compared to 16.0% for the six months ended June 30, 2006. Included in second quarter and first six months EBITDA for 2007 was US$20.3 million related to the operations of DBT. EBITDA is defined as net earnings before interest income, interest expense, income taxes, depreciation and amortization. EBITDA includes the impact of non-cash stock compensation expense, severance expenses, loss on sales of fixed assets and the inventory fair value purchase accounting adjustment charged to cost of products sold. EBITDA is a measurement not recognized in accordance with accounting principles generally accepted in the United States of America and should not be viewed as an alternative to GAAP measures of performance. For a reconciliation of net earnings as shown in the Unaudited Consolidated Statements of Earnings to EBITDA and a reconciliation of net cash provided by operating activities as shown in the Unaudited Consolidated Statements of Cash Flows to EBITDA. Capital expenditures for the first six months of 2007 were US$35.6 million, which included US$16.8 million related to Bucyrus' previously announced ongoing expansion of its South Milwaukee facilities. The remaining capital expenditures consisted primarily of production machinery at its main manufacturing facility. As of June 30, 2007, total backlog was US$1.46 billion, US$1.13 billion of which was expected to be recognized within the subsequent 12 months. This represents a 63.6% and 90.8% increase from the December 31, 2006 total backlog of US$894.7 million and 12-month backlog of US$593.8 million, respectively. Included in backlog at June 30, 2007 was US$994.6 million related to surface mining operations, US$667.4 million of which was expected to be recognized within the subsequent 12 months, and US$469.1 million related to underground mining operations, US$465.5 million of which was expected to be recognized within the subsequent 12 months. New orders related to surface mining operations for the first six months of 2007 were US$298.5 million and US$205.3 million for original equipment and aftermarket parts and service sales, respectively. New orders related to underground mining operations for the first six months of 2007 were US$127.3 million and US$62.2 million for original equipment and aftermarket parts and service sales, respectively. Included in surface mining original equipment orders for the second quarter of 2007 was the sale of a dragline and related equipment with a price in excess of US$100.0 million to be delivered by 2010. Since Bucyrus recognizes revenue on a percentage of completion basis, the impact of this order will be recognized over a period of several years. About Bucyrus International Bucyrus International Inc.-- http://www.bucyrus.com/-- is a leading manufacturer of electric mining shovels, walking draglines and rotary blasthole drills and provides aftermarket replacement parts and services for these machines. For the 12 months ended Sept. 30, 2006, Bucyrus had sales of USUS$705 million. Bucyrus is headquartered in South Milwaukee, Wisconsin. DBT has eight facilities around the world and approximately 3,200 employees. The company has operations in Brazil, Chile, China and Russia. * * * As reported in the Troubled Company Reporter-LAtin America on June 7, 2007, Standard & Poor's Ratings Services revised its recovery rating on Bucyrus's credit facilities. The bank loan rating remains 'BB-', however the recovery rating was revised to '3' from '4', indicating S&P's expectation that these lenders would receive meaningful recovery (50%-80%) in a payment default. The paydown of more than USUS$300 million in the term loan -- to US$500 million from USUS$825 million from proceeds of a recent equity offering -- was the primary reason for the rating change. The corporate credit rating on Bucyrus is BB-/Positive/-- BRISTOW GROUP: First Quarter Net Earnings Increase by 31.6% ----------------------------------------------------------- Bristow Group Inc. disclosed its financial results for its fiscal 2008 first quarter ended June 30, 2007. The company posted revenue of US$245.0 million, which increased by 10.8 percent over the first quarter of fiscal year 2007. Revenue gains occurred in most of the company's business units, driven by improved pricing and the addition of new aircraft. Operating income of US$29.9 million decreased by 3.8 percent over the first quarter of fiscal year 2007, primarily due to higher compensation and maintenance costs within our West Africa and Eastern Hemisphere (EH) Centralized Operations business units, partially offset by increased revenue; The company earned US$22.7 million, an increased of 31.6 percent versus net income for the first quarter of fiscal year 2007. Increases in earnings from unconsolidated affiliates, interest income and other income contributed to the improvement in the latest quarter's net income. Capital and Liquidity The June 30, 2007 consolidated balance sheet reflected US$902.9 million in stockholders' investment and US$561.3 million of indebtedness. The company had US$339.5 million in cash and an undrawn US$100 million revolving credit facility. The company used US$2.3 million of cash for operating activities, which included a US$29.9 million increase in receivables, primarily from operations in Nigeria. It has received payment for a majority of these Nigeria receivables in July. It also used US$121.8 million for capital expenditures, primarily for aircraft, and US$12.9 million for the acquisition (net of cash acquired) of Bristow Academy during the first quarter of fiscal year 2008. Aircraft purchase commitments totaled US$255.0 million, with options totaling US$732.9 million as of June 30, 2007. William E. Chiles, President and Chief Executive Officer of Bristow Group Inc., said, "We saw strong financial performance and good execution against our strategic plan during the latest quarter, and we remain on target with our plan to expand our fleet and improve overall margins and operating efficiencies. The industry fundamentals continue to be very strong, and our customers remain committed to field development plans, which is the primary driver of our growth. The company continues to believe demand for aircraft will exceed supply over the next several years, which should create good opportunities to enhance revenue and margin growth going forward." Headquartered in Houston, Texas, Bristow Group, Inc. -- http://www.bristowgroup.com/ -- (NYSE:BRS), fka Offshore Logistics, Inc., provides helicopter transportation services to the worldwide offshore oil and gas industry with operations in the United States Gulf of Mexico and the North Sea. The Company also has operations, both directly and indirectly, in offshore oil and gas producing regions of the world, including Australia, Brazil, China, India, Mexico, Nigeria, Russia and Trinidad. The Company also provides production management services for oil and gas production facilities in the United States Gulf of Mexico. * * * As reported in the Troubled Company Reporter on June 6, 2007, Standard & Poor's Ratings Services assigned its 'BB' rating to helicopter service company Bristow Group Inc.'s US$250 million senior notes due 2017. At the same time, Standard & Poor's affirmed the 'BB' corporate credit rating and all other ratings on the company. S&P said the outlook is negative. DEB-IMPORT CJSC: Creditors Must File Claims by Aug. 14 ------------------------------------------------------ Creditors of CJSC Deb-Import have until Aug. 14 to submit proofs of claim to: N. Fomin Insolvency Manager Post User Box 131 664025 Irkutsk Russia The Arbitration Court of Khabarovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A73-4085/2007-9. The Debtor can be reached at: CJSC Deb-Import 15p/partizan 42-1 Sovetskaya Gavan 682800 Khabarovsk Russia DMITROVSK-CERAMICS: Creditors Must File Claims by Sept. 14 ---------------------------------------------------------- Creditors of CJSC Dmitrovsk-Ceramics have until Sept. 14 to submit proofs of claim to: O. Malygina Insolvency Manager 60 Let Oktyabrya Str. 13-32 302040 Russia The Arbitration Court of Orel commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A48-2104/07-16B. The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Russia The Debtor can be reached at: CJSC Dmitrovsk-Ceramics Orel Russia IRKUTSKIY WOOD: Creditors Must File Claims by Sept. 14 ------------------------------------------------------ Creditors of LLC Irkutskiy Wood have until Sept. 14 to submit proofs of claim to: N. Fomin Insolvency Manager Post User Box 131 664025 Irkutsk Russia The Arbitration Court of Irkutsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A19-27191/06-37. The Court is located at: The Arbitration Court of Irkutsk Room 303 Gagarina Avenue 70 664025 Irkutsk Russia The Debtor can be reached at: LLC Irkutskiy Wood Zarechnaya Str. 31 Bolshoj Lug Shelekhovskiy Irkutsk Russia MALACHITE LLC: Bankruptcy Hearing Slated for Nov. 27 ---------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad will convene on Nov. 27 to hear the bankruptcy supervision procedure on LLC Malachite. The case is docketed under Case No. A56-11201/2007. The Temporary Insolvency Manager is: V. Fedichev Premise 10N Letter A Bolshoj Pr. P.S. 79 197022 St. Petersburg Russia The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: LLC Malachite Letter Ya Apartment 1 Dybenko Str. 13 193230 St. Petersburg Russia MUGREEVSKOE PEAT: Ivanovo Bankruptcy Hearing Slated for Oct. 17 --------------------------------------------------------------- The Arbitration Court of Ivanovo will convene at 1:00 p.m. on Oct. 17 to hear the bankruptcy supervision procedure on OJSC Mugreevskoe Peat Enterprise. The case is docketed under Case No. A17-1924/07-1-B. The Temporary Insolvency Manager is: S. Akimov Temporary Insolvency Manager Dekabristov Str. 17, 16 Kineshma Ivanovo Russia The Court is located at: The Arbitration Court of Ivanovo B. Khmelnitskogo Str. 59B Ivanovo Russia The Debtor can be reached at: OJSC Mugreevskoe Peat Enterprise Sovetskaya Str. 9 Mugreevskiy Yuzhskiy Ivanovo Russia NORTH-WEST TELECOM: To Issue RUR3 Bln Bonds to Fund Investments --------------------------------------------------------------- North-West Telecom JSC's board of directors approved the issuance and the offering circular of the interest-bearing documentary bonds payable to the bearer series 05. Parameters of the fifth bonds issue: -- total volume of the issue will be RUR3 billion; -- circulation period of the bonds will be five years. -- flotation price of one bond is equal to the face value (RUR1,000). The interest rate for the first coupon will be determined as the sum of two parts: -- MosPrime Rate for three months, established on the last working day before the date of issue flotation start; and -- premium to the MosPrime Rate for three months; -- the rate for the second to 12th coupons will be MosPrime Rate plus Premium, however, no higher than the Limit Rate that will be set by the Company immediately before the date of flotation start; -- the bonds will be floated through public subscription at the MICEX Stock Exchange. The starting date of flotation will be fixed by the Company after the state registration of the bond issue depending on the market situation; and -- a stage-by-stage retirement of the issue is provided for. The bonds will be retired consecutively, in parts, on the these dates: -- on the 1,456th day from the starting date of flotation each bond will be retired partially to the amount of 25% of the face value; -- on the 1,638th day from the starting date of flotation each bond will be retired partially to the amount of 25% of the face value; and -- on the 1,820th day from the starting date of flotation each bond will be retired partially to the amount of 50% of the face value. Early retirement of the bonds is possible, if the Company wishes so, on any of the dates of coupon yield payment in the period from the 728th until the 1,729th day from the starting date of bonds flotation. The amount of the premium to be paid in case of early retirement will be RUR2.50 per bond. Funds received from the flotation of the issue are expected to be allocated for refinancing existing debt and for funding the Company's investment program. LLC NWT-Finance, a 100% subsidiary of North-West Telecom, acts as the surety. AKB Svyaz-Bank JSC is the organizer and Bank St. Petersburg JSC is acting as financial counselor. About North-West Telecom Headquartered in St. Petersburg, Russia, OAO North-West Telecom -- http://www.nwtelecom.ru/-- provides a wide range of telecommunication services on the territory of the North-Western federal district. * * * As of Aug. 6, 2007, North-West Telecom carries BB- Long-Term Local and Foreign Issuer Credit ratings from Standard & Poor's. S&P said the outlook is stable. The company also carries a B+ Long-term Issuer Default rating from Fitch Ratings. Fitch said the rating is on Watch Positive. OAO NOVATEK: Buys Stakes in Companies with Yamal-Nenets Licenses ---------------------------------------------------------------- OAO Novatek has acquired a 25% participation interest in each of these companies: -- OOO Oiltechprodukt-Invest, -- OOO Petra Invest-M, and -- OOO Tailiksneftegas. The acquired companies hold exploration licenses to certain license areas located in the Yamal-Nenets Autonomous Region, which are in close proximity to Novatek's existing fields. About Novatek Headquartered in Tarko-Sale, Russia, OAO Novatek -- http://www.novatek.ru/-- engages in the exploration, production and processing of natural gas and liquid hydrocarbons. The company's upstream activities are concentrated in the prolific Yamal-Nenets Region in Western Siberia. * * * As of July 28, 2007, OA Novatek carries BB- long-term foreign and local issuer credit ratings with a stable outlook from Standard & Poor's. PRODZERNO LLC: Creditors Must File Claims by Aug. 14 ---------------------------------------------------- Creditors of LLC Prodzerno have until Aug. 14 to submit proofs of claim to: I. Alushkin Temporary Insolvency Manager Chakino Rzhakskiy 393500 Tambov Russia The Arbitration Court of Tambov will convene at 9:50 a.m. on Oct. 3 to hear the company's bankruptcy supervision procedure on LLC Prodzerno. The case is docketed under Case No. A64-1761/ 07-21. The Debtor can be reached at: LLC Prodzerno Inzhavino Tambov Russia RASSVET CJSC: Creditors Must File Claims by Sept. 14 ---------------------------------------------------- Creditors of CJSC Rassvet have until Sept. 14 to submit proofs of claim to: O. Fominykh Insolvency Manager Post User Box 154 Irkutsk-50 Russia The Arbitration Court of Irkutsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A19-22760/06-38. The Court is located at: The Arbitration Court of Irkutsk Room 303 Gagarina Avenue 70 664025 Irkutsk Russia The Debtor can be reached at: CJSC Rassvet Tabarsuk Alarskiy 669469 Irkutsk Russia ROSBANK: Better Performance Cues Fitch to Upgrade Ratings to BB- ---------------------------------------------------------------- Fitch Ratings has upgraded the ratings of Russia's Rosbank to Long-term Issuer Default 'BB-' from 'B+', National Long-term 'A+(rus)' from 'A-(rus)' and Individual 'C/D' from 'D'. The bank's other ratings are affirmed at Short-term IDR 'B' and Support Rating Floor 'B'. The Support '4' rating, together with the Long- and Short-term IDRs and National Long-term rating, remain on Rating Watch Positive. The rating action reflects improvements in Rosbank's efficiency and therefore performance, as well as continued strengthening of the bank's retail franchise and improvements in credit risk management. It also takes into account Fitch's view of the improving, albeit still challenging, Russian operating environment and hence better prospects for the country's leading privately-owned banks. Rosbank has sound management and a focused strategy that should help retain and develop its strong market positions. At the same time, the ratings also consider the deterioration in retail loan quality during 2006 (which the bank has sought to address by adjusting its product focus and strengthening credit procedures), the high proportion of unsecured corporate lending and the still large portion of related-party funding. The Positive Watch on Rosbank's ratings reflects the fact that Societe Generale ('AA' /Outlook Stable) has a call option until end-2008 to purchase a further stake in the bank from its current majority shareholder, Interros. Fitch views an exercise of the option as likely, which would enable Societe Generale to increase its stake to 50% plus 1 share from the current 20% minus 1 share. If Societe Generale becomes the majority owner of Rosbank, there will be a greater probability of support being forthcoming for Rosbank in case of need. Pending the call option exercise by Societe Generale, further upside pressure on Rosbank's ratings could result from an improved asset quality track record, further improvements in performance and a strengthening of capitalization. Downward pressure is viewed as unlikely in the near term, but could be triggered by any significant deterioration in asset quality that could compromise capital and liquidity levels. Rosbank was founded in 1992, ranks among the top 10 banks in Russia by total assets and at end-H107 was the third-largest retail lender. About 70% of its shares are currently controlled by Interros, one of Russia's largest financial industrial groups, with interests in the metals, power-machine building, agricultural and insurance sectors. ROSNEFT OIL: In Talks to Sell Non-Core Units to SoyuzNefteGaz ------------------------------------------------------------- OAO Rosneft Oil Co. is currently in negotiations with OAO SoyuzNefteGaz Oil Co. to sell stakes in the service firms acquired from OAO Yukos Oil Co., RosBusinessConsulting reports. SoyuzNefteGaz is particularly eyeing Rosneft's Neftepromstroyservis unit and may have to spend RUR1 billion to acquire it from the state-owned oil company, RBC relates. The parties could have signed a deal earlier, but disagreed on the purchase price, a source privy to the matter told RBC. 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. SP-KHOLOD CJSC: Creditors Must File Claims by Aug. 14 ----------------------------------------------------- Creditors of CJSC SP-Kholod (TIN 7704176684) have until Aug. 14 to submit proofs of claim to: D. Zubanov Temporary Insolvency Manager Office 1 Frunze Str. 7 300041 Tula Russia The Arbitration Court of Moscow will convene at 11:00 a.m. on Oct. 25 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A40-26984/07-103-102 B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC SP-Kholod Office 3 Malaya Polyanka Str. 5 119180 Moscow Russia SADOVOD CJSC: Creditors Must File Claims by Sept. 14 ---------------------------------------------------- Creditors of CJSC Sadovod (TIN 34190203213) have until Sept. 14 to submit proofs of claim to: A. Titov Insolvency Manager Post User Box 244 400005 Volgograd Russia The Arbitration Court of Volgograd commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-6762/07-s50. The Debtor can be reached at: CJSC Sadovod Panfilovo Novoanninskiy 403990 Volgograd Russia TANTAL-D CJSC: Creditors Must File Claims by Sept. 14 ----------------------------------------------------- Creditors of CJSC Tantal-D have until Sept. 14 to submit proofs of claim to: G. Bogdanova Insolvency Manager Chkalova Str. 21 390029 Ryazan Russia The Arbitration Court of Saratov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A57-565/06-23. The Court is located at: The Arbitration Court of Saratov Babushkin Vvoz 1 Saratov Russia The Debtor can be reached at: CJSC Tantal-D 50 Let Oktyabrya Pr. 110a Saratov Russia UNIKOM CJSC: Creditors Must File Claims by Sept. 14 --------------------------------------------------- Creditors of CJSC Unikom have until Sept. 14 to submit proofs of claim to: A. Baranov Insolvency Manager Office 205 Anglijskij Pr. 3 190121 St. Petersburg Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-20601/06. The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Unikom Lermontovskiy Pr. 7/12 St. Petersburg Russia USEC INC: Posts US$13.4 Mln Net Loss in Quarter Ended June 30 ------------------------------------------------------------- USEC Inc. reported on Wednesday its results of operations for the second quarter ended June 30, 2007. USEC Inc. reported a net loss of US$13.4 million for its second quarter ended June 30, 2007, compared to net income of US$21.6 million in the same quarter of 2006. Pro forma net income before American Centrifuge expenses was US$9.5 million in the second quarter of 2007 compared to US$39.0 million in the same quarter last year. USEC reported net income of US$25.9 million in the six-month period ended June 30, 2007, compared to US$56.2 million in the same period of 2006. Pro forma net income before American Centrifuge expenses was US$70.5 million in the first six months of 2007, compared to US$86.2 million in the same period last year. The financial results in both periods reflect the impact of higher electric power costs and higher purchase costs from Russia. These costs are increasing more rapidly than the average price billed to customers under long-term contracts, thereby reducing gross profit. The gross profit margin for the first half of 2007 was 14.9% compared to 19.4% in the same period of 2006. Most of the spending on the American Centrifuge project to-date has been expensed, which directly reduces net income. Advanced technology costs for the six-month period totaled US$69.3 million in 2007 compared to US$47.1 million in 2006. "We continue to seek ways to optimize our Paducah operations and improve our financial results in the near term, which will generate additional cash flow from operations that can help reduce external financing requirements for the American Centrifuge project," said John K. Welch, USEC president and chief executive officer. "In fact, our efforts have allowed us to fully fund the technology demonstration so far this year from internally generated cash." "Our new five-year power contract with TVA will provide additional flexibility for our Paducah operations to produce more SWU and obtain additional uranium from underfeeding the enrichment process," Welch added. USEC currently expenses most of its spending related to the American Centrifuge, which directly reduces net income. Revenue Revenue for the six-month period was US$676.1 million, a decrease of US$210.5 million over the same period of 2006. Revenue from the sale of separative work units (SWU) was US$550.9 million compared to US$638.3 million in the same period last year, a 14% decline. Revenue from the sale of uranium was US$32.0 million compared to US$146.8 million in the same period of 2006, a 78% decline. Revenue from the company's U.S. government contracts segment was US$93.2 million compared to US$101.5 million in the prior year, reflecting reduced Department of Energy contract work. Revenue for the second quarter was US$211.1 million compared to US$525.3 million in the same quarter last year, a decline of 60%. Revenue from the sales of SWU was US$145.9 million, compared to US$404.3 million in the second quarter of 2006. The US$258.4 million decline reflects a 65% decrease in volume of SWU sold and a 3% increase in average prices billed to customers. Uranium revenue was US$16.2 million compared to US$71.0 million last year, reflecting a limited number of deliveries this year. Revenue from the U.S. government contracts segment was US$49.0 million, nearly unchanged from the prior year. Cost of Sales, Gross Profit Margin and Expenses Cost of sales for the six-month period for SWU and uranium was US$496.0 million, a decrease of US$134.2 million or 21% that reflects lower SWU sales volume and higher SWU and uranium unit costs. The gross profit for the first six months of 2007 was US$100.9 million, a decline of US$70.7 million or 41% over the same period in 2006. For the second quarter, the gross profit was US$27.7 million compared to US$79.6 million in the same quarter last year. The gross profit margin for the six-month period and quarter were 14.9% and 13.1%, respectively, compared to 19.4% and 15.2% in the same periods last year. Selling, general and administrative (SG&A) expenses totaled US$24.0 million in the six-month period, a decrease of US$1.8 million over the same period of 2006. The decrease was due to a reversal of an accrued tax penalty and reduced consulting expense, partially offset by higher compensation expenses resulting from the impact of increases in the company's stock price on incentive compensation plans. Advanced technology expenses, primarily related to the demonstration of the American Centrifuge technology, were US$69.3 million in the first half of 2007, an increase of US$22.2 million compared to the same period of 2006. The higher spending reflects work to prepare for Lead Cascade operations this summer. Spending by NAC on its spent fuel storage technology is included in the total and was less than US$1 million in both periods. In addition, US$31.5 million in spending related to the commercial American Centrifuge Plant was capitalized in the six-month period, compared to US$11.7 million capitalized in the first half of 2006. Cash Flow At June 30, 2007, USEC had a cash balance of US$48.3 million, compared to US$171.4 million at Dec. 31, 2006, and US$238.6 million at March 31, 2007. Cash used by operations in the first six months of 2007 was US$82.8 million, compared to cash flow from operations of US$39.7 million in the corresponding period in 2006. The US$122.5 million difference was primarily due to a net inventory increase of US$190.9 million in the six months ended June 30, 2007, that was a result of higher production and lower sales. The increased inventory level was planned to meet delivery obligations to customers in the second half of 2007. Capital expenditures totaled US$37.4 million for the six-month period, compared to US$16.1 million for the corresponding period of 2006. The majority of capital expenditures were related to the American Centrifuge project. TVA Electric Power Contract During the second quarter, USEC reached a new five-year pricing agreement with the Tennessee Valley Authority (TVA), which supplies most of the power for the Paducah plant. Although the new contract provides USEC with a predictable and reliable source of power for the production plant, it maintains the roughly 50% increase in the company's power costs that took effect in June 2006. Cost of sales increased during the first half of the year and will continue to increase during 2007 as a result of higher electricity prices since June 2006 to power the Paducah plant. The impact of this increase is being realized over time due to the monthly moving average inventory methodology and higher power prices will put significant pressure on gross profit margin this year and beyond. At June 30, 2007, the company's consolidated balance sheet showed US$1.85 billion in total assets, US$861.3 million in total liabilities, and US$989.4 million in total stockholders' equity. About USEC Inc. Headquartered in Bethesda, Maryland, USEC, Inc. (NYSE: USU) -- http://www.usec.com/-- is a global supplier of low enriched uranium to nuclear power plants and is the exclusive executive agent for the U.S. Government under the Megatons to Megawatts program with Russia. * * * As reported in the Troubled Company Reporter on April 13, 2007, Moody's Investors Service downgraded USEC Inc.'s corporate family rating to B3 from B1 and downgraded the rating on the company's senior unsecured debt to Caa2 from B3. The rating outlook is negative. This concludes Moody's review of USEC, which was placed under review for possible downgrade on Feb. 15, 2007. VALDAY LLC: Court Names A. Boravchenkov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Novgorod appointed A. Boravchenkov as Insolvency Manager for LLC Valday. He can be reached at: A. Boravchenkov Post User Box 131 191119 St. Petersburg Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A44-842/2006-4k. The Debtor can be reached at: LLC Valday Kirpichnaya Str. 20 Novyj Poselok Moshenskiy Novgorod Russia VORKUTINSKIY BREWERY: Asset Sale Slated for August 21 ----------------------------------------------------- CJSC Birzha Sankt-Peterburg, the bidding organizer for OJSC Vorkutinskiy Brewery, will open a public auction for the company's properties at 11:00 a.m. on Aut. 21 at: CJSC Birzha Sankt-Peterburg 26th Liniya 15 V. O. St. Petersburg Russia Interested participants have until Aug. 20 to deposit an amount to: CJSC Birzha Sankt-Peterburg Settlement Account 40702810948000001909 Correspondent Account 30101810900000000790 BIK 044030790 Gavanskoe Department OJSC Bank Sankt-Pereburg Branch Ivestrbank Russia Bidding documents must be submitted to: OJSC Vorkutinskiy Brewery Promeshlennoj Industrii Str. 3-A 169900 Vorkuta Russia The Debtor can be reached at: OJSC Vorkutinskiy Brewery Promeshlennoj Industrii Str. 3-A 169900 Vorkuta Russia ===================== S W I T Z E R L A N D ===================== PETROPLUS HOLDINGS: Acquisition News Cues S&P to Hold BB Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit ratings on Switzerland-based crude oil refiner Petroplus Holdings AG. At the same time, the 'BB-' debt ratings on the US$1.2 billion senior unsecured high-yield notes issued by Petroplus Finance Ltd. (Bermuda) and guaranteed by Petroplus were also affirmed. S&P said the outlook is stable. "The affirmation follows the company's announcement that it intends to acquire two French refineries from Shell Petroleum Co. Ltd. (AA/Stable/A-1+) for US$875 million, mainly debt financed," said Standard & Poor's credit analyst Per Karlsson. S&P's affirmation reflects the fact that initial debt leverage is in line with the group policy of approximately 40% debt leverage (defined as net debt to net debt plus equity); S&P also factored in that financial headroom will be restored from free cash flow generation during 2007 and 2008. "We expect the refining environment will remain favorable in the near term, which should allow adequate free cash flow generation to the extent that headroom can be restored below management's debt leverage target of 40%," added Mr. Karlsson. Under the current favorable refining margin conditions, this should result in funds from operations-to-debt ratios of about 40%, which could drop to roughly 25% when using Standard & Poor's 2001-2005 margin assumptions. No rating upside is expected in light of the company's limited track record, acquisitive strategies, and high sensitivity in case of a lower refining margin environment. Downward pressure on the ratings could arise in case of further near-term debt- financed acquisitions or absence of adequate free cash flow generation. An unexpected material weakening of the refining- margin outlook -- currently not expected -- could also result in rating pressure. PETROPLUS FINANCE: S&P Rates US$1.2 Bln. High-Yield Notes at BB- ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit ratings on Switzerland-based crude oil refiner Petroplus Holdings AG. At the same time, the 'BB-' debt ratings on the US$1.2 billion senior unsecured high-yield notes issued by Petroplus Finance Ltd. (Bermuda) and guaranteed by Petroplus were also affirmed. The outlook is stable. "The affirmation follows the company's announcement that it intends to acquire two French refineries from Shell Petroleum Co. Ltd. (AA/Stable/A-1+) for US$875 million, mainly debt financed," said Standard & Poor's credit analyst Per Karlsson. S&P's affirmation reflects the fact that initial debt leverage is in line with the group policy of approximately 40% debt leverage (defined as net debt to net debt plus equity); S&P also factored in that financial headroom will be restored from free cash flow generation during 2007 and 2008. "We expect the refining environment will remain favorable in the near term, which should allow adequate free cash flow generation to the extent that headroom can be restored below management's debt leverage target of 40%," added Mr. Karlsson. Under the current favorable refining margin conditions, this should result in funds from operations-to-debt ratios of about 40%, which could drop to roughly 25% when using Standard & Poor's 2001-2005 margin assumptions. No rating upside is expected in light of the company's limited track record, acquisitive strategies, and high sensitivity in case of a lower refining margin environment. Downward pressure on the ratings could arise in case of further near-term debt- financed acquisitions or absence of adequate free cash flow generation. An unexpected material weakening of the refining- margin outlook -- currently not expected -- could also result in rating pressure. =========== T U R K E Y =========== YAPI VE KREDI: Fitch Rates IDR at BB with Stable Outlook -------------------------------------------------------- Fitch Ratings has affirmed the ratings for Yapi ve Kredi Bankasi at Long-term foreign currency Issuer Default Rating 'BB', Short- term IDR 'B', LT local currency IDR 'BB+', ST local currency IDR 'B', National LT 'AA+(tur)', Individual 'D' and Support '3'. The Outlook on the LT IDRs and National Ratings is Stable. The LT foreign currency IDR is constrained by Turkey's 'BB' Country Ceiling and the LT local currency IDR is rated two notches higher than the Sovereign Rating due to potential shareholder support. The LT IDRs, National LT and Support ratings of YKB reflect its 80.3%-ownership by Koc Financial Services, a 50-50 joint venture between Bank Austria Creditanstalt AG (rated 'A'/'F1'), a subsidiary of UniCredito Italiano (rated 'A+'/'F1') and Koc Holding. The Individual rating indicates its strong credit card franchise, improved profitability and better risk management. These are balanced by weak capitalization and asset quality and a structural maturity mismatch. Since gaining control of YKB in September 2005 and merging it with Kocbank in October 2006, KFS implemented UniCredito's risk management systems and continued to sell non-core assets. Significant pre-merger impairment charges were taken at YKB in fiscal year 2005 but not included in the restated financials, which include YKB for only fourth quarter of 2005. Fiscal year 2006 was the first year that included 12 months of operations for both banks. Operating profits strengthened in 2006 and first quarter of 2007 due to robust fees and commissions, as well as a net interest margin that was better than the peer average. These offset high impairment charges and a growing cost base. Credit growth was slower than its peers' in 2006 at 21.2% and the portfolio diminished slightly in first quarter of 2007. Asset quality is weak with impaired loans (including watch list credits) rising by 18% to 9.92% of outstandings at end-2006 (2005: 10.23%) with reserve coverage of only 74% (based on IFRS financials). Although improved from the pre-merger financial stress period, YKB's Tier 1 and Eligible Capital Ratios were thin at 7.5% and 8.5%, respectively, at end-2006. Management anticipates that the bank's Tier 1 capital ratio will improve in 2007 through retained earnings, non-core asset sales and the transfer of financial subsidiaries from KFS. The US$480 million prepayment on the Cukurova exposure should provide capital relief. The implementation of Basel II was recently postponed until January 2009 but will have a negative impact on regulatory capital. YKB has actively issued subordinated debt (with a UniCredito guarantee) to build total capital and offset the Basel II impact. ============= U K R A I N E ============= AIST AND FA: Creditors Must File Claims by Aug. 8 ------------------------------------------------- Creditors of LLC Aist and Fa (code EDRPOU 24913219) have until Aug. 8 to submit written proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 25/146/07. The Debtor can be reached at: LLC Aist and Fa Ruban Str. 27 69124 Zaporozhje Ukraine DIONA LLC: Creditors Must File Claims by Aug. 8 ----------------------------------------------- Creditors of LLC Diona (code EDRPOU 30619430) have until Aug. 8 to submit written proofs of claim to: Vladlen Gvozdetsky Liquidator Frunze Str. 8 49038 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 15/40/82-07. The Court is located at: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: LLC Diona Stoliarov Str. 10 49000 Dnipropetrovsk Ukraine FRUTIS LAND: Creditors Must File Claims by Aug. 8 ------------------------------------------------- Creditors of LLC Frutis Land (code EDRPOU 34412660) have until Aug. 8 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. 15/398-b. The Debtor can be reached at: LLC Frutis Land P. Lumumba Str. 15-A Kiev Ukraine GERMES-TRUST LLC: Creditors Must File Claims by Aug. 8 ------------------------------------------------------ Creditors of LLC Germes-Trust (code EDRPOU 32288320) have until Aug. 8 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. 15/400-b. The Debtor can be reached at: LLC Germes-Trust Predslavinskaya Str. 34-b Kiev Ukraine IRINA AND K: Creditors Must File Claims by Aug. 8 ------------------------------------------------- Creditors of LLC Joint Ukrainian-Belorussian Enterprise Irina and K have until Aug. 8 to submit written proofs of claim to: Oleg Stupak Liquidator Apartment 82 Shevchenko Str. 102 10024 Zhytomir Ukraine The Economic Court of Zhytomir commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 4/232-b. The Court is located at: The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Debtor can be reached at: LLC Joint Ukrainian-Belorussian Enterprise Irina and K Balzakovskaya Str. 12 Apartment 65 Zhytomir Ukraine KHADZHYBEYEVSKOE OJSC: Creditors Must File Claims by Aug. 8 ----------------------------------------------------------- Creditors of OJSC Khadzhybeyevskoe (code EDRPOU 00855270) have until Aug. 8 to submit written proofs of claim to: The Economic Court of Odessa Shevchenko Avenue 4 65032 Odessa Ukraine The Economic Court of Odessa commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 32/127-07-4376. The Debtor can be reached at: OJSC Khadzhybeyevskoe Burdovka Rozdolniansky District Odessa Ukraine ODESSABUILDING OJSC: Proofs of Claim Filing Deadline Set Aug. 8 --------------------------------------------------------------- Creditors of OJSC Odessabuilding (code EDRPOU 01271988) have until Aug. 8 to submit written proofs of claim to: The Economic Court of Odessa Shevchenko Avenue 4 65032 Odessa Ukraine The Economic Court of Odessa commenced bankruptcy supervision procedure on the company on June 18. The case is docketed under Case No. 24/140-05-5498. The Debtor can be reached at: OJSC Odessabuilding Tserkovnaya Str. 29 Odessa Ukraine ORYSCHI LLC: Creditors Must File Claims by Aug. 8 ------------------------------------------------- Creditors of LLC Oryschi (code EDRPOU 20131017) have until Aug. 8 to submit written proofs of claim to: The Economic Court of Volin Volia Avenue 54-a 43010 Lutsk Volin Ukraine The Economic Court of Volin commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 4/86-B. The Debtor can be reached at: LLC Oryschi Oryschi Ivanichevsky District Volin Ukraine TRADE-ZAPOROZHJE: Creditors Must File Claims by Aug. 8 ------------------------------------------------------ The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 25/147/07. Creditors of LLC Industrial Trade-Zaporozhje have until Aug. 8 to submit written proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Industrial Trade-Zaporozhje Istomin Str. 15 69089 Zaporozhje Ukraine UKRAINE LLC: Creditors Must File Claims by Aug. 8 ------------------------------------------------- Creditors of Agricultural LLC Ukraine (code EDRPOU 31883144) have until Aug. 8 to submit written proofs of claim to: Stalina Ratinskaya Sadovaya Str. 1-a 54001 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 2/439/07. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: Agricultural LLC Ukraine Nikolaevka Bratsky District Nikolaev Ukraine VELSOFT LLC: Creditors Must File Claims by Aug. 8 ------------------------------------------------- Creditors of LLC Velsoft (code EDRPOU 34440991) have until Aug. 8 to submit written proofs of claim to: Vitaly Mishchenko Liquidator Apartment 62 40 Years of Soviet Ukraine Str. 45-B 69037 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 21/132/07. The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Velsoft Apartment 93 Mikhaylov Str. 13 69015 Zaporozhje Ukraine VYSHNIVCHIK AGRICULTURAL: Creditors Must File Claims by Aug. 8 -------------------------------------------------------------- Creditors of Vyshnivchik Agricultural LLC have until Aug. 8 to submit written proofs of claim to: Irina Gerasimenko Liquidator Apartment 63 Mir Str. 8 Kamianets-Podolsky 32300 Hmelnitsky Ukraine The Economic Court of Hmelnitskij commenced bankruptcy proceedings against the company after finding it insolvent. The Court is located at: The Economic Court of Hmelnitskiy Nezalezhnosti Square 1 29000 Hmelnitskiy Ukraine The Debtor can be reached at: Vyshnivchik Agricultural LLC Vyshnivchik Tchemerovetsky District Hmelnitskiy Ukraine =========================== U N I T E D K I N G D O M =========================== ALLIANCE BOOTS: Banks Defers Sale of Second-Lien Loans ------------------------------------------------------ Banks financing Kohlberg Kravis Roberts & Co.'s GBP11 billion leveraged buyout of Alliance Boots Plc have postponed the sale of a GBP1 billion second-lien loan, various reports say. "The second lien is on hold. We have a bunch of orders but it is not fair to allocate it until market conditions stabilize," a banker familiar with the deal told Reuters. As reported in the TCR-Europe on July 30, 2007, the banks -- Deutsche Bank AG, JPMorgan Chase & Co., UniCredit S.p.A. and three other financial institutions -- deferred the sale of a GBP5.05 billion senior loan tranche because of market turbulence caused by problems in the U.S. sub-prime mortgage market. According to the Wall Street Journal, the banks had pitched investors a number of sweeteners, including higher interest payments, but failed to secure a deal. Following the cancellation, the banks will continue to try selling the third tranche -- a GBP750 million in mezzanine debt at 95% of face value with 650 basis points interest margin. "The mezzanine tranche has lots of orders and we will continue to work it. It is almost done and we will finish it off through August although we have no set deadline," a banker close to the deal said. A spokesman for Alliance Boots told WSJ that the postponement of the second-lien loans doesn't affect its financial situation position. Reuters notes that the postponement does not affect KKR's takeover or Alliance Boots directly, since the U.K. firm has been delisted and the initial funding had already been raised. 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. BAA LTD: Ferrovial to Complete Refinancing by Year-End ------------------------------------------------------ Grupo Ferrovial SA, the owner of BAA Ltd. (fka BAA plc), is unlikely to refinance its GBP9 billion debt used to acquire the British airports operator in June 2006 after yields on the bonds have widened as credit markets crashed, Josephine Moulds writes for The Telegraph, citing traders. According to the report, the situation has been worsened by relentless negative publicity about Heathrow airport. Ferrovial failed to refinance the existing GBP4.5 billion debt "shortly after the acquisition" as it promised during the takeover process despite the benign credit markets at that time, The Telegraph relates. "They've waited so long now that there is some doubt in the market that the refinancing will get done," a bondholder told The Telegraph. However, Nicolas Villen, Ferrovial's finance director, said the refinancing is "making progress, slowly but surely." Mr. Villen expects to close the refinancing before the end of the year, Reuters says. As previously reported in the TCR-Europe on Aug. 2, 2007, Ferrovial is considering selling BAA's World Duty Free franchise to help pay down the debt. Financial Performance 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. About 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: Moody's Withdraws Ratings After Bankruptcy Filing -------------------------------------------------------------- Moody's Investors Service withdrew all the credit ratings of Bally Total Fitness Holding Corporation after the announcement that Bally commenced voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code. The proceedings seek to confirm a "prepackaged" plan of reorganization the company's bondholders have voted to support. Moody's withdrew these ratings: -- US$235 million 10.5% senior unsecured notes (guaranteed) due 2011, Ca (LGD4, 51%) -- US$300 million 9.875% senior subordinated notes due 2007, C (LGD5, 88%) -- Corporate family rating, Ca -- Probability of default rating, D Bally is among the largest commercial operators of fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Korea, China, the United Kingdom, and the Caribbean under the Bally Total Fitness and Bally Sports Clubs brands. BAXALL LTD: Brings In Joint Administrators from KPMG ---------------------------------------------------- Paul Andrew Flint and Brian Green of KPMG LLP were appointed joint administrators of Baxall Ltd. (Company Number 2733875) on July 19. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. The company can be reached at: Baxall Ltd. Unit 1 Castlehill Horsfield Way Bredbury Stockport SK6 2SU England Tel: 0161 406 6611 Fax: 0161 406 8828 BOMFORDS LTD: Administrators Complete Business & Assets Sale ------------------------------------------------------------ The joint administrators of Bomfords Ltd., Dominic Wong, Andrew Peters and David Langton of Deloitte, disclosed that the sale of the business and assets was completed on July 31, 2007. The farming business, including the pack house at Salford Priors, was sold as a going concern to Sandfields Farms Limited, and the pack house at Atherstone was sold as a going concern to The Veg Table Limited, part of the Wealmoor Group, for an undisclosed amount. The joint administrators were appointed over MBN Bomford Limited, Bomfords Limited and W Bailey Limited on June 22, 2007. Since then, Deloitte's Reorganization Services team has continued to trade the business while negotiations for a sale were conducted. "We are pleased to announce that these transactions will safeguard at least 1350 jobs. Customers, suppliers and employees of the companies have been extremely supportive during the period of administration trading. This successful outcome is a testament to the hard work of the workforce and our team under very difficult circumstances," said Mr. Wong, who is also a partner in Deloitte's Birmingham office. "Unfortunately, a purchaser could not be found for the business of W Bailey Limited despite extensive marketing. As a result, this business is in the process of being wound down," Mr. Wong added. "This was one of the most complex and demanding insolvency assignments we have dealt with in recent years, which involved balancing the interests of several stakeholders and maintaining the confidence of the company's major supermarket customers and its U.K. and overseas supply chain. I am delighted that after 6 weeks, we have managed to find a solution that safeguards the majority of the business and preserves most of the jobs," Joint Administrator Andrew Peters commented Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting, and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. BRITISH AIRWAYS: Earns GBP269 Mln in Three Months Ended June 30 --------------------------------------------------------------- British Airways plc released unaudited financial results for the three months ended June 30, 2007. BA reported net profit of GBP269 million for the three months ended June 30, 2007, compared with net profit of GBP154 million for the three months ended June 30, 2006. For the three months ended June 30, 2007, BA recorded operating profit of GBP263 million, compared with GBP206 million for the same period last year. The operating margin for the quarter was 12%, compared with 9.2% in the prior year. Revenue of the company for the three months ended June 30, 2007 was GBP2.19 billion, compared with revenue of GBP2.24 billion for the same quarter in 2006. Revenue excluding exchange was flat. Passenger revenue fell to GBP1.9 billion on a flying program 0.3 percent bigger measured in available-seat-kilometers. Traffic measured in revenue-passenger-kilometers fell by 1.9 percent delivering seat factors down to 76.8 percent. Yields were flat year on year with price and mix benefits offset by exchange. Demand for First and Club World remains strong and traffic was up 0.1 percent despite a very strong performance in the same period last year and the impact of the baggage and security restrictions on premium transfer traffic. However, traffic in non-premium cabins fell in the quarter by 2.3 percent driven by the North Atlantic and domestic routes where the increase in air passenger duty tax has dampened demand most significantly. The weakness of the dollar has also affected our US business. Cargo revenue fell to GBP146 million due to exchange, reductions in capacity of 5.2 percent and operational disruptions. Cost performance of BA was strong and benefited from the weak US dollar. Employee costs fell by 8.3% to GBP542 million largely because of the changes to the NAPS pension scheme and severance costs, which together were some GBP50 million lower than last year. Fuel fell 5.2 percent to GBP473 million mainly because of favorable exchange. Selling costs were down GBP15 million in the quarter due to lower agency commissions and passenger numbers. Unit costs in the period were down 3.9 percent on an ATK reduction of 1.6 per cent. The profit before tax of GBP289 million benefited from financing income from pensions following the company's one-off contribution to the pension scheme and a reduction in provisions for aircraft end of lease guarantees. The financial position of the company remains strong. This is reflected by the Standard and Poors upgrade of the company's credit rating to investment grade that will support its investment program At June 30, 2007, BA had net assets of GBP2.7 billion and net debt of GBP1.2 billion. "These are very good results despite operational difficulties at Heathrow," British Airways CEO Willie Walsh said. "Profits are up as a result of the steps we took last year to control costs and strengthen our business." "Revenue is flat before exchange and reflects the continued impact of security and baggage restrictions on short-haul and premium transfer traffic, which Heathrow has been struggling to cope with. We appreciate how frustrating this has been for our customers and I am pleased the Government has also recognized this and set up a working group to see how quickly the restrictions on hand baggage can be eased. In order for the Government to remove the restrictions, the BAA must recruit additional personnel and invest in the right equipment so we can get back to offering good customer service," Mr. Walsh continued. "In the meantime we have taken all available steps to minimize inconvenience to our customers and have increased manpower levels in the terminals at Heathrow to an all time high. The opening of Terminal 5 is now just 236 days away and on Sept. 17 BAA hands over the terminal to us. Trials with staff and 2,000 members of the public on all aspects of the new facility start in November," Mr. Walsh added. "I am delighted that ahead of our move we have agreed working practice changes with all our Heathrow customer service and operational staff and a two year pay deal with all our trade union groups which takes us through to 2009," Mr. Walsh concluded. Trading Outlook As the Heathrow terminals continue to operate above capacity this will affect the ability of BA to recover quickly from any unexpected events. Combined with the continued weakness of the US dollar, the company's revenue guidance is reduced by 1 percent to around 4 percent to reflect these risks. The company's revised cost guidance year-on-year is flat, excluding fuel, reflecting both expected exchange benefits from the weaker dollar and strong performance in the first quarter. Fuel costs are now expected to be up GBP120 million on last year, GBP20 million worse than its previous guidance. 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-Given 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% BRITISH AIRWAYS: Named Worst Performing Major Airline by AEA ------------------------------------------------------------ British Airways plc is the worst performing major European operator with passengers more likely to experience flight delays, BBC News says, citing a report by the Association of European Airlines. According to the report, in the three months between April and June 2007, 35.7% of BA's short or medium haul flights did not arrive on time and 32.7% departed later than scheduled, while 44% of its long haul flights did not arrive on time and 36.6% departed later than scheduled. In terms of baggage handling performance, the report revealed that for every 1000 travelers, 28 bags were held up by the carrier within the period, BBC relates. Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates international and domestic scheduled and charter air services for the conveyance of passengers, freight and mail, and provides 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% CHANGE UK: Creditors' Meeting Slated for August 10 -------------------------------------------------- Creditors of Change U.K. Ltd. (Company Number 05021797) will meet at 11:00 a.m. on Aug. 10 at: MWB Business Exchange 60 Cannon Street London EC4N 6JP 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. 9 at: S. R. Thomas Joint Administrator Begbies Traynor (South) LLP 32 Cornhill London EC3V 3BT England Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. DD HOME: Appoints KPMG LLP as Joint Administrators -------------------------------------------------- Chris Laverty and Myles Halley of KPMG LLP were appointed joint administrators of DD Home Entertainment Ltd. (Company Number 04423880) on July 26. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. Headquartered in London, England, DD Home Entertainment Ltd. -- http://www.ddhe.co.uk/-- is engaged in motion picture and video distribution services. DECO 2005-UK: Interest Shortfall Cues S&P to Cut Rating to D ------------------------------------------------------------ Standard & Poor's Ratings Services has lowered its rating on the class E notes issued by DECO Series 2005-UK Conduit 1 PLC to 'D' from 'CCC'. The class D notes in this transaction remain on CreditWatch with negative implications. At the same time, the ratings on the class A, B, and C notes were affirmed. The rating action follows an interest shortfall to the class E notes at the July interest payment date. This shortfall occurred because of the reduction in liquidity drawings available to cover interest on the Kashani loan, thus directly reducing the interest available to pay the class E noteholders. The amount available was reduced due to the triggering of the appraisal reduction mechanism associated with the decrease in value of the Kashani assets. The Kashani loan (which represented 1.4% of the outstanding pool balance at the April 2007 IPD) was transferred to special servicing on Dec. 5, 2006, following the nonpayment of interest and principal at the October 2006 IPD. The CreditWatch negative placement on the class D notes reflects Standard & Poor's overall concern with possible interest shortfalls in this transaction, and the class D notes' increased exposure to possible adverse developments associated with the Kashani loan, following the triggering of the appraisal reduction mechanism. Ratings List DECO Series 2005-UK Conduit 1 PLC GBP236.057 Million Commercial Mortgage-Backed Floating-Rate Notes Class Ratings To From Rating Lowered E D CCC Rating Remaining On CreditWatch With Negative Implications D BBB/Watch Neg Ratings Affirmed A AAA B AA C A DEDICATE TRADING: C. B. Barrett Leads Liquidation Procedure ----------------------------------------------------------- C. B. Barrett of Tenon Recovery was appointed liquidator of Dedicate Trading Ltd. on July 25 for the creditors' voluntary winding-up procedure. The liquidator can be reached at: Tenon Recovery Clive House Clive Street Bolton BL1 1ET England DEVON CIDER: Appoints Administrators from Smith & Williamson ------------------------------------------------------------ Anthony Murphy and Robert Horton of Smith & Williamson Ltd. were appointed joint administrators of The Devon Cider Co. Ltd. (Company Number 03694018) on July 23. 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. The company can be reached at: The Devon Cider Co. Ltd. North Park North Tawton EX20 2EB England Fax: 01837 828 40 DIGITAL POS: Joint Liquidators Take Over Operations --------------------------------------------------- Stephen Robert Cork of Smith & Williamson Ltd. and Malcolm Cohen of BDO Stoy Hayward LLP were appointed joint liquidators of Digital Pos Ltd. (formerly Watford Electronics Ltd.) on July 25 for the creditors' voluntary winding-up proceeding. Mr. Cork can be reached at: Smith & Williamson Ltd. Prospect House 2 Athenaeum Road London N20 9YU England Mr. Cohen can be reached at: BDO Stoy Hayward LLP 8 Baker Street London W1U 3LL England FREESCALE SEMICONDUCTOR: Taps Collier to Sell East Kilbride Site ---------------------------------------------------------------- Freescale Semiconductor Inc. has acquired the service of real estate adviser Collier International to help sell its East Kilbride manufacturing site, The Scotsman reports. As reported in the TCR-Europe on July 18, 2007, Freescale is looking for a buyer for its East Kilbride factory in the United Kingdom and has already informed the site's around 900 employees of the sale plan. The Scotsman notes that many electronics firms are transferring to countries with lower overheads, which makes the hunt for East Kilbride site's buyer more difficult. Freescale is reportedly shifting its production to Texas, U.S.A., but could retain a research and development operation at East Kilbride, The Scotsman adds. About Freescale Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL) (NYSE:FSL.B) -- http://www.freescale.com/-- designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. The company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries, including the Czech Republic, France, Germany, Ireland, Italy, Romania, Turkey and the United Kingdom. * * * As reported in the TCR-Europe on May 28, 2007, Moody's Investors Service affirmed these ratings of Freescale Semiconductor Inc. and changed the outlook to negative: Ba3 corporate family rating; Ba3 probability of default rating; B1 rating of US$2.85 billion senior unsecured notes due 2014; B1 rating of US$1.50 billion senior unsecured toggle notes due 2014; and B2 rating of US$1.60 billion senior subordinated unsecured notes due 2016. GETTY IMAGES: Earns US$33.7 Million in Quarter Ended June 30 ------------------------------------------------------------ Getty Images Inc. reported net income of US$33.7 million for the second quarter ended June 30, 2007, compared to net income of US$23.2 million for the same period in 2006. Results for the second quarter of 2006 included a total of US$14.1 million after taxes for a restructuring charge and a loss on the sale of short-term investments. Excluding these items, net income for the second quarter of 2006 was US$37.3 million or US$0.59 per diluted share. "Soon after we founded Getty Images in 1995, we recognized that the breadth of creators and users of digital imagery would expand. This trend continues and we remain the leader in all areas and categories of the visual content industry from traditional stock photography to microstock. Furthermore, we are extending our leadership position in editorial imagery, footage and our imagery-related products and services, all of which have excellent growth potential," said Jonathan Klein, co- founder and chief executive officer. "We are making wonderful strides with some of our newer businesses, including commercial music licensing and the opportunity for growth in the consumer market while remaining focused on stabilizing our traditional creative stills business." The company disclosed that revenue increased 6.5 percent to US$218.0 million from US$204.6 million in the second quarter of 2006. Excluding the effects of changes in currency exchange rates, revenue grew 2.4 percent. Growth in almost all areas of the business was partly offset by a decline in traditional creative stills imagery revenue. As a percentage of revenue, cost of revenue was 26.7 percent, compared to 24.8 percent in the prior year due primarily to revenue growth in certain of the company's product lines with average royalties that are higher than traditional creative stills imagery, in particular in editorial and microstock imagery. Selling, general and administrative expenses (SG&A) totaled US$84.1 million or 38.6 percent of revenue for the second quarter of 2007, compared to US$77.9 million or 38.1 percent of revenue in the second quarter of 2006. Excluding US$1.3 million of non-recurring professional fees, the effects of changes in currency exchange rates, and SG&A associated with acquired companies, SG&A declined on a year over year basis. Income from operations was US$53.1 million or 24.4 percent of revenue in the second quarter of 2007 compared to US$41.2 million in the second quarter of 2006. Results for the second quarter of 2006 included a restructuring charge of approximately US$16.5 million. Excluding this charge, income from operations for the second quarter of 2006 was US$57.7 million, or 28.2 percent of revenue. Cash balances were US$288.6 million at June 30, 2007. Net cash provided by operating activities during the second quarter of 2007 was US$48.8 million. During the quarter, the company spent a total of US$248 million for acquired businesses, of which US$120 million was financed through the company's senior credit facility and the remaining US$128 million paid from existing cash balances. Business Outlook The following forward-looking statements reflect Getty Images' expectations as of Aug. 1, 2007. The company currently does not intend to update these forward-looking statements until the next quarterly results announcement. The company has announced a restructuring and related reduction in workforce of about 100 employees that will result in a charge of approximately US$4.0 million in the third quarter of 2007 and is expected to result in annualized savings of approximately US$20 million in staff and staff related costs. The company continues to focus on managing costs effectively while investing in the areas of the business that provide the best opportunities for growth. For the third quarter of 2007, the company expects revenue of approximately US$210 million and diluted earnings per share of US$0.43. Excluding approximately US$0.04 for restructuring costs, diluted earnings per share would be US$0.47. For full year 2007, the company expects revenue of approximately US$855 million and earnings per share of approximately US$2.18. Excluding approximately US$0.04 for restructuring costs in the third quarter of 2007, diluted earnings per share would be US$2.22. Guidance for 2007 assumes just over 60 million fully diluted shares for both the third quarter and for the full year. Headquartered in Seattle, Washington, Getty Images, Inc. -- http://corporate.gettyimages.com/-- creates and distributes visual content. The company has corporate offices in Australia, the United Kingdom, and Argentina. * * * As reported in the Troubled Company Reporter-Latin America on June 18, 2007, Standard & Poor's Ratings Services said revised its CreditWatch implications on Getty Images Inc. to positive from developing, following the company's filing of its SEC 10-Q forms for its first and third quarters, and its 2006 Form 10-K. The corporate credit rating on the company remains at 'B+'. As reported in the Troubled Company Reporter-Latin America on March 30, 2007, Moody's Investors Service affirmed the Ba1 Corporate Family Rating and Ba2 rating on the USUS$265-million of convertible subordinated debentures of Getty Images, Inc. The rating outlook remains stable. Moody's affirmed these ratings: -- US$265-million series B convertible subordinated notes due 2023, Ba2 (LGD 5, 77% from LGD 5, 71%); -- Corporate family rating, Ba1; and -- Probability of default rating, Ba1. HILTON HOTELS: Reports US$165 Mil. Net Income in Second Quarter --------------------------------------------------------------- Hilton Hotels Corporation Hilton has recorded second quarter 2007 net income of US$165 million compared with US$144 million in the 2006 quarter. Diluted net income per share was US$0.40 in the 2007 second quarter, versus US$0.35 in the 2006 quarter. Excluding non-recurring items in both periods, diluted EPS totaled US$0.38 per share in the 2007 quarter, a 19 percent increase from US$0.32 per share in the 2006 quarter. Net income from the Scandic hotel system, the sale of which was disclosed on March 2, 2007, and completed on April 26, 2007, is reflected as discontinued operations. The company reported second quarter 2007 total operating income of US$345 million (a 1 percent decrease from the 2006 quarter), on total revenue of US$2.085 billion (a 4 percent increase from US$2.005 billion in the 2006 quarter). Total company earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) were US$468 million, a decrease of 4 percent from US$489 million in the 2006 quarter. Revenue, operating income and Adjusted EBITDA growth in the quarter were impacted by asset sales completed within the last twelve months. Owned Hotel Results Continued strong demand trends resulted in high single digit or double digit ADR increases at many of the company's gateway hotels around the world. Business transient, group and leisure segments all showed solid ADR gains. Across all brands, revenue from the company's owned hotels (majority owned and controlled hotels) was US$636 million in the second quarter 2007, a 6 percent decrease from US$678 million in the 2006 quarter. Total owned hotel expenses declined 8 percent in the quarter to US$435 million. The decreases reflect the sale of owned assets over the last year. Comparable North America (N.A.) owned revenue and expenses increased 8.5 percent and 4.3 percent, respectively. RevPAR from comparable N.A. owned hotels increased 9.8 percent. Comparable owned N.A. hotel occupancy increased 2.0 points to 82.0 percent, while ADR increased 7.1 percent to US$211.29. Particularly strong RevPAR growth was reported at the company's owned hotels in New York and San Francisco, while the Hawaii market was soft during the quarter. Comparable N.A. owned hotel margins in the second quarter increased 270 basis points to 32.9 percent. Comparatively lower renovation disruption activity at the Hilton New York, the Waldorf=Astoria, and the Hilton Hawaiian Village in the 2007 second quarter benefited comparable N.A. owned hotel RevPAR and margin growth. Comparable international owned revenue and expenses increased 9.3 percent and 7.7 percent, respectively. RevPAR from international comparable owned hotels increased 9.4 percent. Occupancy decreased 1.3 points to 73.0 percent, while ADR increased 11.3 percent to US$162.35. Particularly strong results were reported in Barcelona, Zurich, Sydney and Sao Paulo. Adjusting for the impact of foreign exchange, RevPAR from international comparable owned hotels increased 3.2 percent. Comparable international owned margins improved 110 basis points to 26.8 percent. On a worldwide basis, comparable owned RevPAR increased 9.7 percent, with margins improving 230 basis points to 31.3 percent. Excluding the impact of foreign exchange, worldwide comparable owned RevPAR increased 8.2 percent. Leased Hotels Revenue from leased hotels was US$530 million in the second quarter 2007 compared to US$476 million in the 2006 quarter, while leased expenses (including rents) were US$459 million in the current quarter versus US$415 million last year. The EBITDAR-to-rent coverage ratio was 1.6 times in the quarter. Leased results exclude hotels that have been classified as discontinued operations in connection with the Scandic sale. Comparable leased revenue increased 12.0 percent, leased expenses increased 10.7 percent and margins increased 100 basis points to 13.6 percent. RevPAR from comparable leased properties increased 14.6 percent. Adjusting for the impact of foreign exchange, RevPAR from comparable leased hotels increased 9.3 percent, reflective of business strength in the U.K. (primarily London) and continental Europe. Hilton Grand Vacations Hilton Grand Vacations Company (HGVC), the company's vacation ownership business, reported a 21 percent decline in profitability in the second quarter, due to percentage-of- completion accounting associated with new projects. Revenue and expenses associated with projects in development are deferred to correspond with the pace of construction. Unit sales declined 9 percent, however average unit sales prices increased 35 percent over last year, with the increase driven by new projects in Hawaii. HGVC had second quarter revenue of US$159 million, an 8 percent decrease from US$173 million in the 2006 quarter. Expenses were US$121 million in the second quarter, compared with US$125 million in the 2006 period. Brand Development/Unit Growth In the second quarter, the company added 71 properties and 9,436 rooms to its system as follows: Hampton Inn, 32 hotels and 2,919 rooms; Hilton Garden Inn, 18 hotels and 2,359 rooms; Hilton, 8 hotels and 1,918 rooms; Doubletree, 7 hotels and 1,591 rooms; Homewood Suites by Hilton, 5 hotels and 493 rooms; Embassy Suites, 1 hotel and 156 rooms. Thirteen hotels and 2,088 rooms were removed from the system during the quarter. During the second quarter, the company added new Hilton hotels in Dallas; New Orleans; Limerick, Ireland; Venice, Italy and Valencia, Spain. The company added new Doubletree hotels in Milwaukee, Columbus, Boston, and Richmond. Additionally, during the quarter, the company signed over 15 management agreements, including the Conrad Buenos Aires, Argentina scheduled to open in 2010, the Hilton Forbidden City, Beijing, China scheduled to open in 2008, and the Hilton Mina Al Arab, U.A.E., scheduled to open in 2010. During the second quarter, the company announced four new agreements as: -- A strategic alliance with the Caribbean Property Development Group to develop approximately 15 franchised hotels in Central America and the Caribbean under the Hilton Garden Inn, Hampton by Hilton and Homewood Suites by Hilton brands over the next five years. -- A strategic development alliance with London and Regional Properties to develop approximately 25 franchised or managed hotels in Russia under the Conrad, Hilton, Doubletree by Hilton, Hilton Garden Inn and Hampton by Hilton brands over the next five years. -- A strategic development alliance with Shiva Hotels Limited to develop approximately 15 franchised or managed hotels in the U.K. and Ireland under the Hilton, Doubletree by Hilton, Hilton Garden Inn and Hampton by Hilton brands over the next five years. -- A letter of understanding for a development alliance with Somerston Hotels U.K. Limited to develop approximately 25 franchised hotels in the U.K. under the Hampton by Hilton brand over the next five years. At June 30, 2007, the Hilton worldwide system consisted of 2,896 properties and 490,438 rooms. In July, the company received three highest-ranking awards in the J.D. Power and Associates 2007 North American Hotel Guest Satisfaction Index Study, outperforming all other hospitality companies within their respective segments. Hilton Garden Inn received the highest ranking (for the sixth consecutive year) in the mid-scale full service segment. Embassy Suites received the highest ranking (for the sixth time) in the upscale segment. Homewood Suites by Hilton received the highest ranking (for the fifth time) in the extended-stay segment. Matthew J. Hart, Hilton President & COO, said: "Our operations continue to be very strong across the board. Our brand management and development businesses are experiencing strong RevPAR gains and unit growth both domestically and internationally. We are seeing significant RevPAR increases and improvement in margins across owned hotels, and our timeshare business continues to perform in-line with our expectations. Our development pipeline is larger than it has ever been and our four new strategic agreements add further momentum to our growth." Asset Dispositions During the second quarter, the company completed the sale of the Scandic chain for EUR833 million or approximately US$1.1 billion as of the transaction date. Additionally, during the second quarter the company sold the Hilton Washington for approximately US$290 million. The company also entered into an agreement to sell up to 10 hotels in Continental Europe for EUR566 million or approximately US$770 million. Early in the third quarter, the company announced that it has completed the sale of eight of the ten hotels and expects to complete the sale of the remaining two by the end of the third quarter 2007. The company will retain management agreements on nine of the ten hotels. Corporate Finance At June 30, 2007, Hilton had total debt of approximately US$5.68 billion (net of approximately US$499 million of debt and capital lease obligations resulting from the consolidation of certain joint venture entities and a managed hotel, which are non- recourse to Hilton), a reduction of nearly US$1.4 billion during the quarter. Of the US$5.68 billion, approximately 42 percent is floating rate debt. Total cash and equivalents (including restricted cash of approximately US$376 million) were approximately US$546 million at June 30, 2007. The company's average basic and diluted share counts for the second quarter were 390 million and 424 million, respectively. Hilton's effective tax rate for continuing operations in the second quarter 2007 was approximately 35 percent. Total capital expenditures in the second quarter were approximately US$194 million, including approximately US$76 million expended for timeshare development. 2007 Outlook The company's prior guidance regarding the outlook for 2007 has been withdrawn and no new guidance is being issued due to the pending transaction. Update on Blackstone Deal It is anticipated that the proposed acquisition of the company by BH Hotels LLC, an entity controlled by investment funds affiliated with the Blackstone Group L.P., will close during the fourth quarter 2007; completion is subject to the approval of Hilton's shareholders, as well as other customary closing conditions. Further details regarding the transaction can be found in the preliminary proxy statement that was filed with the Securities and Exchange Commission last week. Stephen F. Bollenbach, Hilton co-chairman and chief executive officer, said: "The proposed sale of our company is proceeding on track with an anticipated closing in the fourth quarter of this year. As we stated when we announced the deal, this transaction brings tremendous value to our shareholders and we look forward to bringing it to completion in the next several months." About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad, and Tobago, Philippines and Vietnam. * * * As reported 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. HOTHOUSE TRADING: Taps J. M. Titley to Liquidate Assets ------------------------------------------------------- J. M. Titley of DTE Leonard Curtis was appointed liquidator of Hothouse Trading Co. Ltd. on July 27 for the creditors' voluntary winding-up procedure. The liquidator can be reached at: DTE Leonard Curtis DTE House Hollins Mount Hollins Lane Bury BL9 8AT England INCO LTD: Sales Up 232% to US$859 Million in 2nd Qtr. FY 2007 ------------------------------------------------------------- PT International Nickel Indonesia Tbk, Canada Inco Ltd.'s Indonesian unit reported second quarter 2007 unaudited sales of US$859.0 million, a 232% increase from US$258.6 million in the same quarter last year. Net earnings in the quarter ended June 30, 2007 were US$479.2 million, or US$0.48 per share, up 501% from net earnings of US$79.7 million, or US$0.08 per share, in the same quarter of 2006. Sales rose 196% to US$1,305.7 million in the first six months of 2007 from US$440.5 million in the same period in 2006. Net earnings in the first half of 2007 increased 473% to US$707.0 million, or US$0.71 per share, from US$123.3 million, or US$0.12 per share, in the first half of 2006. "PT Inco's balance sheet improved further during the second quarter 2007. Despite increased dividend payments of US$497.1 million in the first quarter of 2007, our cash balance at the end of the second quarter 2007 stood at US$683.2 million compared with US$170.4 million at the end of the second quarter of 2006," said Arif Siregar, Presiden and Chief Executive Officer. The Company's realized price for nickel in matte averaged US$38,926 per tonne in the second quarter of 2007, compared with US$14,326 per tonne in the corresponding 2006 period and US$29,149 per tonne in the first quarter of 2007. Under PT Inco's long-term, must-take US dollar-denominated sales contracts, the selling price of our nickel in matte is determined by a formula based on the London Metal Exchange cash price for nickel, and CVRD Inco Limited's net average realized price for nickel. Production of nickel in matte for the second quarter of 2007 was 21,100 tonnes, an increase of 33% from 15,900 tonnes in the corresponding 2006 period. Production of nickel in matte in the first half of 2007 increased 18% to 39,100 tonnes from 33,200 tonnes in the first six months of 2006. During the 2007 second quarter, PT Inco also provided approximately 225,000 tonnes of ore from its Pomalaa operation to PT Antam Tbk. "Above average levels of rainfall since the end of February 2007 have raised the level of our water reservoirs slightly, permitting the Company to operate its hydroelectric generators at normal levels. The improved water situation and strong production during the first half of 2007 positions the Company well to meet our previously announced 2007 production target of 160-to-165 million pounds of nickel in matte. Furthermore, new diesel generators have been installed providing the Company with additional power. These diesel generators allowed us to maintain production when the steam boiler was shut down for inspection in the second quarter. This extra power supply will also help when the steam boiler is refurbished later this year," Mr. Siregar said. "We believe that we are making progress toward obtaining a final forestry permit from the Indonesian Government in relation to the construction of a new dam and generating facility at Karebbe on the Larona River. Obtaining final forestry permit on acceptable terms is necessary for the Company to recommence construction on this important facility. As well, during the quarter, the Company launched an important initiative to increase the capacity of local contractors to participate in business opportunities associated with our Sorowako operations", continued Mr. Siregar. Unit cash cost of production in the second quarter of 2007 increased 6% to US$3.30 per pound from US$3.11 per pound in the same period last year. The increase in unit cast costs resulted from rising employment costs, increased consumption of high sulphur fuel oil, and the use of greater amounts of more expensive diesel. The diesel price climbed to an average of US$0.56 per liter in the second quarter of 2007 from US$0.53 per liter in the prior year period. The Company's operations consumed 33.5 million liters of diesel in the second quarter of 2007, compared to 29.0 million liters in the first quarter of 2007. High LME prices for nickel increases royalties and water levies paid to the Indonesian Government in the second quarter of 2007 compared to the first quarter of 2007. Notwithstanding the increased diesel use and increased payments to the Indonesian Government, unit cash cost of production in the second quarter fell slightly when compared with the first quarter 2007, mainly due to increased production. In order to maximize the production in the current high nickel price environment, the Company will continue to use expensive fuel- fired power in order to supplement its low-cost hydroelectric power. In the first half of 2007, cash provided by operating activities, but before capital expenditures, increased to US$763.1 million from US$103.8 million for the same period last year, primarily due to increased receipts from customers of US$1,220,6 million, partly offset by higher tax payments of US$212.8 million and higher payments to employees of US$44.2 million. Cash used in relation to capital expenditures in the first six months of 2007 rose to US$55.5 million from US$50.8 million in the corresponding 2006 period. Cash used for dividend payments in the first half of 2007 increased to US$497.1 million from US$85.4 million in the first half of 2006. As a result there was a net cash inflow of US$205.3 million in the first half of 2007 compared with an outflow of US$78.7 million for the corresponding period in 2006. At June 30, 2007, the Company's inventories of nickel in matte were 2,902 tonnes, compared with 3,544 tonnes at March 31, 2007 and 128 tonnes, at June 30, 2006. Variations in inventories and deliveries are largerly due to shipment scheduling. About Inco Limited Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. ISLE OF CAPRI: Posts US$4.6 Million Net Loss in 2007 ---------------------------------------------------- Isle of Capri Casinos Inc. provided Thursday its financial results for the fourth fiscal quarter and fiscal year ended April 29, 2007. The company reported a net loss of US$14.6 million for the fourth quarter ended April 29, 2007, compared with net income of US$16.5 million for the fourth quarter ended April 30, 2006. For the fiscal year ended April 29, 2007, the company reported a net loss of US$4.6 million, compared with net income of US$18.9 million for the fiscal year ended April 30, 2006. The company reported a 17.3% decrease in net revenues from continuing operations to US$255.6 million for the fourth quarter compared to net revenues from continuing operations of US$309.1 million for the same quarter in fiscal 2006. Loss from continuing operations was US$13.1 million during the fourth quarter of fiscal 2007 compared to income of US$10.5 million for the fourth quarter of fiscal 2006. Adjusted EBITDA from continuing operations for the fourth quarter of fiscal 2007 decreased 22.9% to US$57.3 million compared to Adjusted EBITDA from continuing operations of US$74.3 million for the same quarter in fiscal 2006. The fourth quarter ended April 29, 2007, included thirteen weeks of operating results compared to the fourth quarter ended April 30, 2006, which included fourteen weeks of operating results. This accounts for approximately 7.5% of the year over year decrease in revenues and Adjusted EBITDA. Other factors contributing to the year over year declines include increased competition in several of the company's markets, most significantly Biloxi, Mississippi and severe weather in several markets in the first period of the fourth quarter of fiscal 2007. For the twelve months ended April 29, 2007, the company reported a 1.4% increase in net revenues from continuing operations to US$1.0 billion, compared to US$987.4 million for the comparable period in the prior year. For the twelve months of fiscal 2007, the company reported a loss from continuing operations of US$21.3 million, compared to income of US$8.6 million for the same period in fiscal 2006. Adjusted EBITDA from continuing operations in the twelve-month period reported a 4.5% decrease to US$194.6 million, compared to US$203.7 million for the comparable twelve-month period in fiscal 2006. During the twelve months ended April 29, 2007, the company recognized a pretax gain of US$23.2 million related to the sale of its Isle-Bossier City and Isle-Vicksburg properties. This gain on sale is included in income from discontinued operations. Isle-Bossier City, Isle-Vicksburg and Colorado Grande-Cripple Creek are reflected as discontinued operations for all periods presented. Accordingly, the operating results for these properties are not included in the net revenue, income from continuing operations and Adjusted EBITDA results. The sale of Isle-Bossier City and Isle-Vicksburg closed on July 31, 2006. "Fiscal 2007 was a transitional year for the company, as we prepared for the opening of three properties under our new brand 'the isle(R),' in addition to opening a new hotel and acquiring a new property. The response from our guests has been very positive, and we look forward to growing our database and elevating the gaming experience for our customers. In addition, we implemented new technology initiatives that will help us operate and market more efficiently, and introduced additional programs across the Company to improve margins," said Bernard Goldstein, president and chief executive officer. "Our search for a new president and chief operating officer has come to a close and we are pleased to welcome Virginia McDowell to the Isle of Capri family. We believe that we have selected the ideal candidate as Virginia brings just the right mix of gaming expertise and leadership capabilities to her new role. Everyone has eagerly welcomed Virginia to the Isle of Capri family," Mr. Goldstein noted. Operational Review for the Fourth Quarter The operating results for the fourth quarter of fiscal 2007 include some significant additional expenses, as compared to the fourth quarter of fiscal 2006. These include an increase of approximately US$4.5 million in property insurance expense over the prior year's fourth quarter, for a twelve-month total increase of approximately US$18.0 million over the prior fiscal year, which was allocated across all operating properties. The company also recorded approximately US$1.6 million of stock compensation expense in the fourth quarter of fiscal 2007, for a twelve-month total increase of approximately US$7.2 million over the prior fiscal year. Pre-opening costs increased US$10.4 million compared to the fourth quarter of fiscal 2006 primarily due to costs related to the company's casino developments in Pompano Beach, Florida; Waterloo, Iowa and Coventry, England. In Mississippi, the company's three continuing operations contributed 24.3% of net revenues. Isle-Biloxi's net revenues and Adjusted EBITDA decreased significantly from abnormally high prior year operating results due to increased competition in the market as competitors have re-opened after closures caused by Hurricane Katrina and while the Isle-Biloxi remains negatively impacted by the destruction of the Biloxi/Ocean Springs bridge, which is the primary thoroughfare for travelers from Florida to east Biloxi where Isle-Biloxi is located. Two lanes of the Biloxi/Ocean Springs bridge are scheduled to re-open in November and the complete new bridge with six lanes is scheduled to re- open in June 2008. Isle-Natchez continues to experience decreases in both net revenues and Adjusted EBITDA primarily resulting from the re-opening of casinos along the Gulf Coast. Isle-Lula's net revenues and Adjusted EBITDA decreased slightly due to increased competition impacting certain of the property's outlying feeder markets and disruption due to renovations of the casino floor. In Louisiana, Isle-Lake Charles contributed 16.8% of net revenues. Isle-Lake Charles experienced a decrease in net revenues and Adjusted EBITDA due to increased competition in the market as competitors have fully re-opened following closures caused by Hurricane Rita and post hurricane normalization of population levels in the property's feeder markets. In Missouri, the company's two properties contributed 17.2% of net revenues. The company's Missouri operations were impacted by severe winter weather in the first period of the fourth quarter. Isle-Kansas City's net revenues and Adjusted EBITDA were down due to increased competition related to the completion of competitors' expansion projects in the market. Isle- Boonville's net revenues and Adjusted EBITDA increased due to the opening of the company's new hotel and an increase in marketing efforts. In Iowa, the company's three casinos contributed 17.7% of net revenues. Combined, the company's three Iowa properties, the Isle-Bettendorf, Rhythm City-Davenport, and Isle-Marquette showed a decrease in both net revenues and Adjusted EBITDA due to increased competition in certain of the company's feeder markets in which it operates, including new and expanded gaming product by several of its competitors, as well as severe winter weather in the first period of the fourth quarter. In Colorado, the company's two Black Hawk casino operations contributed 15.7% of net revenues. The Black Hawk properties experienced a decrease in net revenues and Adjusted EBITDA as compared to the prior year period primarily due to severe weather in the first period of the quarter and disruption at the Colorado Central Station gaming floor as it was redesigned for wider aisles and the implementation of 100% ticketing capabilities on slots. In International operations, Isle-Our Lucaya recorded a reversal of approximately US$9.4 million in certain prior year expenses related to the company's agreement with the Bahamian government and the company's landlord to keep the casino open. Additionally, the company reversed its US$2.2 million lease termination fee paid in the first quarter of fiscal 2007, which has now been recorded as pre-paid rent. Corporate and other includes the company's corporate office operations, new development costs and the operating results of Pompano Park. The decrease in corporate and other compared to the fourth quarter of fiscal 2006 is primarily due to a US$6.2 million decrease in new development costs primarily due to costs incurred in the prior year fiscal quarter related to the pursuit of gaming licenses in Pittsburgh, Pennsylvania and Singapore. In December 2006, the company was notified that it was not awarded either gaming license. The operating results of Pompano Park reflected a US$3.6 million decrease in Adjusted EBITDA, which relates primarily to construction disruption, increased property insurance premiums and increased repairs and maintenance costs incurred on the existing track facility prior to the opening of the Isle-Pompano casino facility. The Isle Pompano was only opened for the last two weeks of the fourth quarter of fiscal 2007. Also, the increase in corporate and other expenses includes approximately US$2.0 million in costs incurred related to the completion of the restatement of the company's historical financial statements. These increased costs are partially offset by lower bonus, franchise taxes and other legal costs. The company recorded a US$7.8 million valuation charge during the fourth quarter of fiscal 2007 related to the Isle-Lula, based on lower projected cash flows going forward. Comparatively, the company recorded a US$13.4 million valuation charge in the fourth quarter of fiscal 2006 related to its Blue Chip, plc operations in the United Kingdom and the Isle-Our Lucaya. At April 29, 2007, the company's consolidated balance sheet showed US$2.08 billion in total assets, US$1.77 billion in total liabilities, US$27.8 million in minority interest, and US$281.8 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the year ended April 29, 2007, are available for free at http://researcharchives.com/t/s?2210 About Isle of Capri Casinos 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, Marquette and Waterloo, Iowa; Boonville, Caruthersville and Kansas City, 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, a casino in Coventry, England, and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. There are four Isle of Capri Casinos brands including "the isle," Isle of Capri, Colorado Central Station and Rhythm City, providing over 16,000 slot machines, 550 table games and 3000 hotel rooms for our guests' enjoyment. * * * 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. KRISPY KREME: S&P Puts B- Rating on Corp. Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services has assigned its ratings, including its corporate credit rating of 'B-', to Winston Salem, N.C.-based Krispy Kreme Doughnuts Inc. The outlook is negative. At the same time, Standard & Poor's assigned its bank loan and recovery ratings to the US$160 million senior secured credit facility borrowed by Krispy Kreme Doughnut Corp., a subsidiary of Krispy Kreme. The facility is rated 'B', one notch above the corporate credit rating on Krispy Kreme, and assigned a '2' recovery rating, indicating the expectation for substantial (70%-90%) recovery of principal in the event of default. The facility consists of a US$50 million revolving credit facility and a $110 million first-lien term loan, of which US$101 million was outstanding as of April 29, 2007. Krispy Kreme guarantees the debt of its subsidiary. "The negative outlook reflects the company's material weaknesses over reporting controls, which may cause errors or delays in the company's filing of its financial statements," explained Standard & Poor's credit analyst Charles Pinson-Rose. Furthermore, we believe that the company's U.S. operations are vulnerable to competitive inroads. "If the company cannot file its financial statements in a timely fashion," added Mr. Pinson- Rose, "the rating will likely be downgraded." Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme (NYSE: KKD) -- http://www.krispykreme.com/-- is a branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. There are currently approximately 320 Krispy Kreme stores and 80 satellites operating system wide in 43 U.S. states, Australia, Canada, Mexico, the Republic of South Korea and the United Kingdom. The U.S. District Court for the Middle District of North Carolina has set Feb. 7, 2007, as the hearing date for the final approval of the terms of the settlement of the shareholder derivative action entitled Wright v. Krispy Kreme Doughnuts Inc., et al. MEDAL ENTERTAINMENT: Taps Joint Administrators from KPMG -------------------------------------------------------- Chris Laverty and Myles Halley of KPMG LLP were appointed joint administrators of Medal Entertainment & Media Plc (Company Number 04174013) on July 26. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. Headquartered in Wembley, England, Medal Entertainment & Media Plc -- http://www.mem-plc.co.uk/-- is a group of companies engaged in the production and distribution of programs for television and home entertainment, as well as the specialist publishing of factual programs and classic entertainment for the worldwide DVD and video market. NORTEL NETWORKS: Posts US$37 Mln Net Loss in Qtr. Ended June 30 --------------------------------------------------------------- Nortel Networks Corp. reported on Thursday its results for the second quarter ended June 30, 2007. The company reported a net loss of US$37 million in the second quarter of 2007, compared with net income of US$342 million for the same period last a year ago. The net loss of US$37 million in the quarter ended June 30, 2007, included special charges of US$36 million for restructuring, a US$35 million provision related to ongoing discussions with the SEC, a gain of US$69 million due to favourable effects of changes in foreign exchange rates and a gain of US$10 million on the sale of assets. The net earnings in the second quarter of 2006 of US$342 million included a shareholder litigation recovery of US$510 million reflecting a mark-to-market adjustment of the share portion of the global class action settlement, special charges of US$49 million for restructuring and a loss of US$12 million on the sale of assets. "Good progress is being made in our effort to reshape Nortel to deliver sustained value to shareholders. On balance, the key indicators of our financial health moved in a positive direction in the quarter," said Nortel President and CEO Mike Zafirovski. "Gross margin of 41.1% was the highest in eight quarters and the operating margin expanded significantly on a year-over-year basis for the fourth consecutive quarter. Revenues were down 8% this quarter, principally as a result of the UMTS divestiture and the timing of contract completion. Revenues were up 3% sequentially and we are confident that the traction we are seeing with customers will translate into much higher sequential growth for the remainder of the year." Revenues were US$2.56 billion for the second quarter of 2007 compared to US$2.78 billion for the second quarter of 2006. Deferred revenues decreased sequentially by US$29 million from the first quarter of 2007. Order input for the quarter was US$2.68 billion, down from US$2.81 billion in the second quarter of 2006 (note that second quarter of 2006 UMTS Access orders associated with the assets sold were approximately US$184 million), and up from US$2.59 billion in the first quarter of 2007. Carrier Networks revenues in the second quarter of 2007 were US$1.06 billion, a decrease of 16% compared with the year-ago quarter and an increase of 5% sequentially. In the second quarter, CN revenues were impacted by the UMTS Access divestiture and decreases in legacy products, partially offset by growth in VoIP and GSM compared with the year-ago quarter. Excluding the impact of the UMTS Access divestiture, CN revenues decreased by 5% in the second quarter of 2007 compared with the year-ago quarter. Enterprise Solutions revenues in the second quarter of 2007 were US$590 million, an increase of 23% compared with the year-ago quarter and a decrease of 1% sequentially. ES recorded the fourth consecutive quarter of year over year growth, driven by strong increases in the voice, data and applications businesses, which was positively impacted by the timing of contract completions. Global Services revenues in the second quarter of 2007 were US$494 million, a decrease of 9% compared with the year-ago quarter, and an increase of 10% sequentially. The year over year decrease was largely due to a decrease in network implementation services primarily due to the UMTS Access divestiture and lower GSM services revenues, partially offset by growth in network management and support services. Excluding the impact of the UMTS Access divestiture, GS revenues decreased by 3% in the second quarter of 2007 compared with the year-ago quarter. Metro Ethernet Networks revenues in the second quarter of 2007 were US$363 million, a decrease of 16% compared with the year- ago quarter and a decrease of 3% sequentially. The year over year decrease in revenues was primarily due to decreases in long-haul optical revenues not repeated in the second quarter of 2007 (due to the completion of large optical contracts in the second quarter of 2006) and in legacy data, partially offset by increases in metro optical and carrier ethernet revenues. Cash balance at the end of the second quarter of 2007 was US$4.47 billion, down slightly from US$4.56 billion at the end of the first quarter of 2007. This decrease was primarily driven by a cash outflow from operations of US$120 million. The cash balance includes net proceeds from the US$1.15 billion convertible notes offering in March 2007. In September 2007, Nortel will redeem, at par, US$1.125 billion principal amount of 4.25% convertible notes plus accrued and unpaid interest. Regulatory Investigations As previously announced, in May 2007 the Ontario Securities Commission approved a Settlement Agreement reached by the Staff of the OSC and Nortel, which settlement fully resolved all issues between Nortel and the OSC. The decision recognized the extensive efforts made by Nortel's senior management and Board of Directors to be forthcoming and transparent in reporting significant accounting and internal control issues, and then solving them. Nortel has been under investigation by the SEC since April 2004 in connection with previous restatements of its financial statements. As a result of discussions with the Enforcement Staff of the SEC for purposes of resolving the investigation, Nortel concluded that a reserve should be provided. Accordingly, an accrual was recorded in the second quarter of 2007 in the amount of US$35 million, which Nortel believes represents its current best estimate for the liability associated with this matter. However, this matter is ongoing and the ultimate outcome is still uncertain. Outlook Commenting on the company's financial expectations, David Drinkwater, interim chief financial officer, Nortel said, "For the full year 2007, we continue to expect revenues to be flat to down slightly compared to 2006, reflecting a decrease in revenues as a result of the UMTS Access disposition (note that 2006 UMTS Access revenues associated with the assets sold were approximately US$660 million). We continue to expect full year 2007 gross margin to be in the low 40's, as a percentage of revenues, and we now expect operating margin to be around 5 percent, of revenues). For the third quarter of 2007, we expect revenues to be down in the mid single digits compared to the year ago quarter (note that third quarter 2006 UMTS Access revenues associated with the assets sold were approximately US$156 million). We expect third quarter 2007 gross margin to be around 40, as a percentage of revenue, and operating expenses (SG&A and R&D) to be down slightly, compared to the year ago quarter." At June 30, 2007, the company's consolidated balance sheet showed US$18.95 billion in total assets, US$15.35 billion in total liabilities, US$788 million in minority interests in subsidiary companies, and US$2.81 billion in total stockholders' equity. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. Nortel does business in more than 150 countries around the world including the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. * * * On March 27, 2007, Moody's Investors Service affirmed Nortel Networks' existing ratings, including its B3 corporate family rating, and assigned a B3 rating to the proposed USUS$1 billion convertible senior unsecured notes offering. Moody's said the outlook remains stable. NOVAGEN LTD: Brings In Liquidators from Tenon Recovery ------------------------------------------------------ Steven Philip Ross and Ian William Kings of Tenon Recovery were appointed joint liquidators of Novagen Ltd. on July 25 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Tenon House Ferryboat Lane Sunderland Tyne and Wear SR5 3JN England ODYSSEY RE: Earns US$145.5 Million in Second Qtr. 2007 ------------------------------------------------------ Odyssey Re Holdings Corp. reported net income available to common shareholders of US$145.5 million, or US$2.02 per diluted share, for the quarter ended June 30, 2007, compared to US$207.6 million, or US$2.87 per diluted share, for the quarter ended June 30, 2006. Operating income after tax was US$66.8 million, or US$0.93 per diluted share, for the second quarter of 2007, compared to US$88.2 million, or US$1.22 per diluted share, for the second quarter of 2006; results for the second quarter of 2006 include a one-time tax benefit of US$16.5 million, or US$0.23 per diluted share. Included in second quarter 2007 net income available to common shareholders were after tax net realized capital gains of US$78.7 million, or US$1.09 per diluted share, compared to after tax net realized capital gains of US$119.6 million, or US$1.65 per diluted share, for the second quarter of 2006, which included capital gains of an equity investee that were included in net investment income for that quarter. For the six months ended June 30, 2007, net income available to common shareholders was US$232.1 million, or US$3.22 per diluted share, compared to US$358.0 million, or US$4.95 per diluted share, for the comparable period of 2006. Book value per common share was US$30.27 at June 30, 2007, an increase of US$2.35 per share, or 8.4%, compared to US$27.92 at Dec. 31, 2006. Total shareholders' equity was US$2.28 billion at June 30, 2007, an increase of US$200.5 million compared to total shareholders' equity of US$2.08 billion at Dec. 31, 2006. Gross premiums written for the quarter ended June 30, 2007 were US$553.3 million, a decrease of 5.3% compared to US$584.1 million for the quarter ended June 30, 2006. The change was attributable to a 12.4% decrease in the Company's worldwide reinsurance business, reflecting increased competitive market conditions, which was partially offset by a 14.4% increase in the Company's insurance business, primarily related to new business opportunities within U.S. specialty insurance. Net premiums written for the second quarter of 2007 were US$505.1 million, a decrease of 7.0% compared to second quarter 2006 net premiums written of US$542.8 million. The combined ratio for the second quarter of 2007 was 93.9%, compared to 95.3% for the second quarter of 2006. Results for the three months ended June 30, 2007 reflect net catastrophe losses, including net catastrophe losses from prior periods, of US$13.0 million, after tax, or US$0.18 per diluted share, compared to US$19.8 million, or US$0.27 per diluted share, for the second quarter of 2006. For the six months ended June 30, 2007 and 2006, the combined ratio was 95.1% and 93.6%, respectively. Net investment income, which for 2006 excludes realized capital gains of an equity investee included in net investment income, amounted to US$84.5 million for the second quarter of 2007, compared to US$92.3 million for the second quarter of 2006. Net pre-tax realized capital gains were US$121.1 million for the second quarter of 2007, compared to US$184.1 million for the second quarter of 2006. Included in net pre-tax realized capital gains for the second quarter of 2007 is US$119.2 million related to the sale of the Company's 13.2% ownership of Hub International Limited. The second quarter of 2006 includes realized capital gains of an equity investee included in net investment income of US$103.3 million. For the three months ended June 30, 2007, net cash flow from operations was US$28.6 million, an increase of 6.3% from US$26.9 million for the three months ended June 30, 2006. At June 30, 2007, total investments and cash were US$7.3 billion, an increase of US$220.1 million, or 3.1%, over Dec. 31, 2006. Net unrealized losses, after tax, were US$37.4 million at June 30, 2007, compared to net unrealized gains, after tax, of US$23.4 million at Dec. 31, 2006. In the second quarter of 2007, OdysseyRe paid a cash dividend of US$0.0625 per common share on June 29, 2007, to common shareholders of record as of June 15, 2007. Odyssey Re Holdings Corp. (NYSE: ORH) is an underwriter of property and casualty treaty and facultative reinsurance, as well as specialty insurance. Odyssey Re operates through its subsidiaries, Odyssey America Reinsurance Corp., Hudson Insurance Co., Hudson Specialty Insurance Co. Clearwater Insurance Co., Newline Underwriting Management Limited and Newline Insurance Co. Ltd. The Company underwrites through offices in the United States, London, Paris, Singapore, Toronto and Mexico City. Odyssey Re Holdings Corp. is listed on the New York Stock Exchange under the symbol ORH. * * * As reported in the Troubled Company Reporter on Nov. 15, 2006, Standard & Poor's affirmed its 'BBB-' counterparty credit and 'BB' preferred stock ratings on Odyssey Re Holdings Corp. and removed them from CreditWatch negative. SADLER UTILITIES: Calls In Liquidators from Vantis -------------------------------------------------- Alpa Raja and G. Mummery of Vantis Business Recovery Services were appointed joint liquidators of Sadler Utilities Ltd. on July 25 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Vantis Business Recovery Services 43-45 Butts Green Road Hornchurch Essex RM11 2JX England SERVICEMASTER: Amended Credit Pact Cues S&P to Watch B+ Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services has placed its 'B+' bank loan rating on Memphis, Tenn.-based The ServiceMaster Co. on CreditWatch with developing implications. ServiceMaster's other ratings, including its 'B' corporate credit rating, have been affirmed. The outlook remains negative. "The CreditWatch listing follows the company's execution of an amendment to its new senior secured credit agreement," said Standard & Poor's credit analyst Jean Stout. The amendment provides the holders of the bank loan the right to parcel the existing US$2.65 billion term loan into two tranches, Tranche B-1 Term Loan and Tranche B-2 Term Loan, up to 90 days from the closing date. These loans shall have the same terms and be pari passu in all respects, except that proceeds from collateral in connection with the exercise of secured creditor remedies shall be allocated to repay Tranche B-1 Term Loan in full prior to any allocation of such proceeds to repay Tranche B-2 Term Loan. Tranche B-1 Term loan holders would enjoy added protection provided by their enhanced position in the recovery process relative to the holders of the Tranche B-2 Term Loan. The corporate credit rating is unaffected by this amendment as overall leverage will not change following a potential split of the term loan into two tranches. To resolve the CreditWatch listing for the bank loan rating, Standard & Poor's will monitor developments, including the ultimate allocation between the term loan tranches, and assess the recovery prospects of each loan tranche. If the existing term loan is split into two tranches, it is possible that both the bank loan and recovery ratings would differ for each tranche. ServiceMaster Co. -- http://www.servicemaster.com/-- (NYSE:SVM) currently serves residential and commercial customers through a network of over 5,500 company-owned locations and franchised licenses. The company's brands include TruGreen, TruGreen LandCare, Terminix, American Home Shield, InStar Services Group, ServiceMaster Clean, Merry Maids, Furniture Medic, and AmeriSpec. The core services of the company include lawn care and landscape maintenance, termite and pest control, home warranties, disaster response and reconstruction, cleaning and disaster restoration, house cleaning, furniture repair, and home inspection. The company has operations in Australia, Chile, China, Dominican Republic, Hong Kong, Indonesia, Japan, and the United Kingdom, among others. TECUMSEH PRODUCTS: Names Edwin L. Buker as Chief Exec. Officer -------------------------------------------------------------- Tecumseh Products Company has appointed Edwin "Ed" L. Buker as its chief executive officer. Mr. Buker, whose appointment is effective Aug. 13, 2007, joins Tecumseh from Citation Corporation, a supplier of metal components based in Birmingham, Alabama, where he had served as president and chief executive officer since March 2002. Prior to joining Citation, Mr. Buker, 54, served as vice president and general manager of the Chassis Systems Division at Visteon Automotive; as president, Electrical Systems-The Americas, for United Technologies Automotive; and as vice president of new model development for BMW Manufacturing Corporation in Munich, Germany. He also held leadership positions at BMW's Spartanburg, South Carolina, facility and at Honda's East Liberty, Ohio, manufacturing plant. Among other accomplishments, Mr. Buker was co-leader of the design, building and operations management of Honda's East Liberty facility and of BMW's Spartanburg plant. Mr. Buker holds a bachelor's degree in mechanical engineering from Tri-State University in Angola, Indiana, and an MBA from Ohio University in Athens, Ohio. "The appointment of Ed Buker as chief executive officer adds a seasoned, proven, highly successful executive to Tecumseh," David M. Risley, chairman of Tecumseh, said. ''His manufacturing expertise, customer orientation and overall management and strategic acumen make him an ideal choice to lead Tecumseh's continuing efforts to improve its operational and financial performance." Mr. Buker will become a member of Tecumseh's board of directors when he joins the company this month, and will eventually succeed Mr. Risley as chairman. Since January 2007, the company has been functioning under the leadership of interim president and chief operating officer James J. Bonsall, who will provide transition services to Mr. Buker before returning to his ongoing role as a managing director of AlixPartners LLP. "Jim Bonsall provided capable leadership at a challenging time for the company," Mr. Risley said. I want to thank Jim for his outstanding work at Tecumseh in our continuing efforts to place the company on a solid strategic, operational and financial footing. Tecumseh has a long and proud history of serving customers around the world. We look forward to Ed's role as a team builder and team leader as Tecumseh continues to serve its customers and drive for improved performance and market position." About Tecumseh Products Company Headquartered in Tecumseh, Mich., Tecumseh Products Company (Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/-- manufactures hermetic compressors for air conditioning and refrigeration products, gasoline engines and power train components for lawn and garden applications, submersible pumps, and small electric motors. The company has offices in Italy, United Kingdom, Brazil, France, and India. At March 31, 2007, the company's balance sheet showed total assets of US$97.3 million, total liabilities of US$101.4 million, resulting to a shareholders' deficit of US$4.1 million. THERMOMAX LTD: Names Joint Administrators from PwC -------------------------------------------------- Garth Calow and Robert Lewis of PricewaterhouseCoopers LLP were appointed joint administrators of Thermomax Ltd. (Company Number 01537121) and Thermomax (Great Britain) Ltd. (Company Number 02664234) on July 19. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. The company can be reached at: Thermomax Ltd. Balloo Indstl Est Balloo Crescent Bangor BT19 7UP Northern Ireland Tel: 028 9127 0411 Fax: 028 9127 0572 * Large Companies with Insolvent Balance Sheet ---------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (182) Rhi AG (85) 1,573 210 BELGIUM ------- City Hotels CITY.BR (7) 210 (15) Sabena S.A. (86) 2,215 (297) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Arbel PA.ARB (116) 194 (94) Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Charbo De France (3,872) 4,738 (2,868) Dollfus Mieg & Cie S.A. DS (16) 143 (45) Euro Computer System (110) 682 377 Genesys S.A. GNS.PA (10) 120 (5) Grande Paroisse S.A. (927) 629 330 Groupe Eurotunnel GET (2935) 9958 (9345) Immob Hoteliere (65) 259 10 Matussiere et Forest S.A. MTF (78) 294 (28) Outremer Telecom OMT (33) 229 (88) Pagesjaunes GRP PAJ (2718) 1,121 (291) Pneumatiques Kleber S.A. (34) 480 139 Rhodia S.A. RHA (828) 6,796 531 SDR Centrest (132) 252 N.A. SDR Picardie (135) 413 N.A. Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 Selcodis S.A. SPVX (18) 128 22 Trouvay Cauvin (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Cognis Deutschland GmbH & Co. KG (174) 3,003 606 Dortmunder Actien-Brauerei DABG (13) 118 (29) EM.TV AG EV4G.BE (22) 849 15 F.A. Guenther & Son AG GUSG (10) 111 N.A. Kaufring AG KAUG (19) 151 (51) Maternus Kliniken AG MAK.F (4) 201 (20) Nordsee AG (8) 195 (31) Schaltbau Hold SLTG (20) 162 (4) SinnLeffers AG WHGG (4) 454 (145) Spar Handels- AG SPAG (442) 1,433 (234) Vivanco Gruppe (33) 132 (45) GREECE ------ Empedos S.A. EMPED (34) 175 (48) Radio A.Korassidis KORA (101) 181 (139) Commercial HUNGARY ------- IPK Osijek DD OS IPKORA (18) 190 (320) ICELAND ------- Decode Genetics Inc. DCGN (55) 216 146 IRELAND ------- Waterford Wed Ut WTFU (145) 897 209 ITALY ----- Binda S.p.A. BND (11) 129 (20) Cirio Finanziaria S.p.A. (422) 1,583 (396) Gruppo Coin S.p.A. GC (154) 801 (50) Compagnia Italia ICT (138) 527 (235) Credito Fondiario e Industriale S.p.A. (200) 4,218 N.A. Finpart S.p.A. (152) 732 (322) I Viaggi del Ventaglio S.p.A. VVE.MI (61) 487 (57) Olcese S.p.A. OLCI.MI (13) 180 (64) Parmalat Finanziaria S.p.A. (18,419) 4,121 (12,481) Snia S.p.A. SN (39) 275 36 Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (24) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Vista Alegre Atlantis SGPS S.A. VAAAE (18) 193 (83) ROMANIA ------- Rafo Onesti RAF (395) 359 (1695) RUSSIA ------ East Siberia Brd VSNK (40) 106 (70) Gukovugol Pfd GUUGP (58) 144 (4094) OAO Samaraneftegas (332) 892 (16,942) Vimpel Ship SOVP (77) 188 (927) Zil Auto ZILLP (178) 425 (10,597) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 TURKEY ------ Nergis Holding (24) 125 26 Yasarbank (948) 623 N.A. UKRAINE ------- Dniprooblenergo DNON (40) 477 (807) Donetskoblenergo DOON (286) 587 (1991) UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) Alldays Plc (120) 252 (202) Amey Plc (49) 932 (47) Atkins (WS) Plc ATK (150) 1,390 62 BCH Group Plc BCH (6) 188 (44) Blenheim Group BEH (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) British Energy Ltd 523362Q (5,823) 4,921 290 British Energy Plc BGY (5,823) 4,921 434 British Nuclear Fuels Plc (4,248) 40,326 977 Britvic Plc BVIC (108) 874 (20) Cineworld Groug CINE (115) 748 7 Compass Group CPG (668) 2,972 (298) Costain Group COST (108) 595 (61) Danka Bus System DNK.L (108) 540 34 Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (2266) 2,950 (296) Euromoney Institutional Investor Plc ERM.L (50) 448 (67) Galiform Plc GFRM (152) 889 35 Global Green Tech Group (156) 408 (18) Heath Lambert Fenchurch Group Plc (10) 4,109 (10) HMV Group Plc HMV (26) 1273 (269) Imperial Chemical Industries Plc ICI (370) 8,393 2 Invensys PLC (276) 3,914 357 IPC Media Ltd. (685) 254 16 Jarvis Plc JRVS.L (28) 370 (22) Ladbrokes Plc LAD (1,227) 1,669 (267) Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) London Stock Exchange LSE (689) 526 (195) M 2003 Plc (2,204) 7,205 (756) Misys Plc MSY (7) 1,123 (131) Mytravel Group MT.L (380) 1,818 (488) Orange Plc ORNGF (594) 2,902 7 Regus Plc RGU.L (46) 367 (60) Rentokil Initial Plc RTO (1,044) 3,507 (457) Saatchi & Saatchi SSI (119) 705 (41) SFI Group (108) 178 (162) Skyepharma PLC SKP (95) 211 (15) Smiths News PLC NWS (119) 225 (57) Telewest Communications Plc TLWT (3,702) 7,581 (5,631) Wincanton Plc WIN (27) 1,451 (78) ********* 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 * * *