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/raid1/www/Hosts/bankrupt/TCREUR_Public/060118.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 Wednesday, January 18, 2006, Vol. 7, No. 13 Headlines F R A N C E EUROTUNNEL S.A.: Total Revenue Slightly Improves to GBP541 Mln FRANCE SOIR: Administrators Grant More Time to Hunt for Buyers G E R M A N Y ABANOS VERMOGENSVERWALTUNG: Kuebler Administrator Takes Over AGFAPHOTO GMBH: Group's Insolvency Hounds Former Parent AUTO-FRIESENEGGER: Creditors' Claims Due Feb. 13 EASTSIDE DORINGBAU: Court to Verify Claims on April 6 FARBE UND RAUM: Frankfurt Firm Succumbs to Bankruptcy GERLACH HYBRID: Creditors' Meeting Slated for Feb. 16 GRUNDSTUECKSGESELLSCHAFT FUERSTENWALDE: Calls in Administrator HG+S HAUSGERATE: Taps Handschumacher & Merbecks as Administrator INTERTAINMENT AG: Debt Repayment Failure Prompts Insolvency NOWICOM GMBH: Meeting of Creditors Slated for March 7 PERI-WERK: Moody's Ups Corp. Family Rating Outlook to Positive TEXTILE-CONCEPT: Taps Dr. Junker & Kollegen as Administrator ZIMO VERWALTUNGS: Creditors Has Until Jan. 24 to Register Claims H U N G A R Y NABI RT: Posts Decline in 2005 Bus Sales K A Z A K H S T A N BANK CENTERCREDIT: Fitch Assigns Upcoming Eurobond Issue at BB- KIRIKA-PLUS: Declared Insolvent KOSPROM: Almaty Court Opens Bankruptcy Proceedings SEIHAN: Creditors Have Until Feb. 10 to File Proofs of Claim USHKUL: Specialized Economic Court Declares Bankruptcy K Y R G Y Z S T A N ALLIANCE-ASIA: Claims Bar Date Set for March 6 IDF: Gives Creditors Until March 6 to File Claims KYRGYZ GER: Creditors Claim Due March N E T H E R L A N D S KONINKLIJKE AHOLD: Paying $1.1 B as Settlement for Class Action KONINKLIJKE AHOLD: Trading Statement Correction Issued Jan. 12 KONINKLIJKE AHOLD: Moody's Revises Ratings Outlook to Positive ROYAL SHELL: Cancels Another 550,000 'A' Shares R U S S I A AIR-ENGINES: Bankruptcy Supervision Procedure Begins DALNEGORSKAYA: Primorye Court Opens Bankruptcy Proceedings FOREST-INDUSTRY: Arbitration Court Begins Bankruptcy Proceeding GAGARIN-AGRO-TEKH-SERVICE: Succumbs to Bankruptcy INVESTMENT-BUILDING COMPANY: Under Bankruptcy Supervision MECHANICAL PLANT: Insolvency Manager Takes over Firm NEVELSKIY SHIPYARD: Sakhalin Court Brings-In Insolvency Manager NIZHNEOMSKAYA SEL-KHOZ-TEKHNIKA: Bankruptcy Hearing Set Feb. 28 OAO GAZPROM: Increased State Support Spurs S&P's BB+ Rating PINE-TREE: Khabarovsk Court Begins Bankruptcy Proceedings SIBERIAN OIL: S&P Affirms Long-term Corp. Credit Rating to BB TYUMENSKAYA COMPLEX: Under External Management Procedure S W E D E N CONCORDIA BUS: Improved Liquidity Prompts S&P's B- Rating ELECTROLUX AB: To Spin Off Outdoor Operation SKANDIA INSURANCE: Old Mutual Gets 68.6% Valid Acceptances U K R A I N E AGROMIR: Donetsk Economic Court Begins Bankruptcy Proceedings AVTOK: V. Rabushko Serves as Interim Insolvency Manager ENERGOSERVICE: Succumbs to Insolvency INTELMED: Under Bankruptcy Supervision KYIVSTAR GSM: Strong Market Performance Prompts S&P's BB- Rating MUNICIPAL TAXI: Declared Insolvent OJSC NAFTOGAZ: Fitch Revises Outlook to Negative PROGRES: Dnipropetrovsk Court Opens Bankruptcy Proceedings REPAIR-BUILDING 2: Goes Into Liquidation TEHNOPROMBUD: Court Names Roza Romashko Liquidator U N I T E D K I N G D O M A H SMITH: Taps Steven Law as Administrator BAGSHAWS OF MELTON: Winds Up Operations CANTERBURY FOODS: Hires PricewaterhouseCoopers as Administrator CARDOK LTD: Taps S. Girling & M. Roach as Joint Liquidators COSTAIN GROUP: Consortium Wins GBP400 Million BSF Contract EASYNET GROUP: Names Two New Executive Directors EMPIRE TEMPORARY: Names Milner Boardman & Partners Administrator ENERGY SOLUTIONS: Names David Hughes as Liquidator FOCUS DIY: S&P Cuts GBP285-Mil Long-Term Debt Rating to B GLENROSE PROPERTY: Creditors Meeting Set Next Week GUY KREMER: Paul Williams & Jason Godefroy to Administer Assets HEALTH CLUB: Administrators Enter Firm INEOS GROUP: S&P Rates Proposed EUR3.1 Bln Notes at B- KAYBE (CONVEYORS): Voluntarily Winds Up Operations LADIES HEALTH: Meeting of Creditors Set for Friday LEVACOM LIMITED: D L Evans Leads Liquidation Efforts LUCKY LIZARD: Creditors Approved S Franklin as Liquidator M L BUCKS: Claims Filing Period Ends Feb. 11 MOLYNEUX ENGINEERING: Creditors Confirm Liquidation Proceeding NATIONAL AUSTRALIA: Agrees to Transfer U.K. Management Business NEARTONE LIMITED: Winds Up Operations ONEGARDEN LIMITED: Appoints Houghton Stone as Administrator PES GROUP: Meeting of Creditors Set Next Week RANK GROUP: Shareholders Okay Deluxe Film Disposal SAMUEL BEN: In Administrative Receivership SKYEPHARMA PLC: UBS Unveils 4.05% Equity Stake SPECTRUM ARCHITECTURAL: Hires Administrator from Hazlewoods STADIUM SEATING: Names Administrator from Smith & Williamson THINKINGCAP TECHNOLOGY: Hires Liquidator from Tomlinsons YZMA 001: Taps Mitchell Charlesworth as Joint Administrator ********* =========== F R A N C E =========== EUROTUNNEL S.A.: Total Revenue Slightly Improves to GBP541 Mln -------------------------------------------------------------- Eurotunnel S.A. has reported its 2005 traffic and revenue figures. Highlights (a) slight improvement in total revenue (+1%); (b) first increase in Shuttle revenues since 2002 (+4%); and (c) in total, almost 16 million passengers traveled through the Channel Tunnel in 2005: (i) 8.2 million Eurotunnel Shuttle Passengers*; and (ii) 7.5 million Eurostar Passengers. The revenue for the year has gone up to GBP541 million, an increase of 1% compared to 2004. GBPmillion 2005 2004 2005/2004 unaudited published % change Exchange rate EUR/GBP 1.465 1.466 Shuttle Services 295 285 +4% Railways 235 234 0% Transport activities 530 519 +2% Non-transport activities 11 19 -41% Operating revenue 541 538 +1% As exchange rates for 2004 and 2005 are essentially the same, it was not judged useful to recalculate revenues in 2004 for comparison purposes. Shuttle Activity The revenue from shuttle activity (GBP295 million) is up by 4%. This is the first increase in revenue from Eurotunnel's principal activity since 2002. This result is all the more encouraging as the Group's new economic model favors increased operating margins and improved profitability rather than the pursuit of volumes and market share. Truck traffic has grown slightly (+2%), accompanied by a substantial increase in yield. Car traffic has seen a decrease of 3%, in a market with surplus capacity. This 3% decline should be viewed in the context of a voluntary reduction of about 20% in capacity during 2005, which has the effect of significantly increasing shuttle load factors. During the same period, coach traffic has increased by 22%. Railway Activity Railways revenues are stable at GBP235 million, and include payment of GBP72 million under the Minimum Usage Charge (MUC) of the Railway Usage Contract. Payments from the MUC continue until the end of November 2006. Although Eurostar traffic continues to increase (+2%), rail freight tonnage, transported by the railway operators EWS and SNCF Freight, shows a decline of 16% for the year linked to, among other causes, a reduction in inter-modal traffic. Eurotunnel, EWS and the SNCF have decided to set up a working group to explore, together, the means of increasing the volume of rail freight carried through the Tunnel. [*] These figures are calculated using an average of 2.52 passengers per car and 38.75 passengers per coach based on surveys. Non-transport Activities The revenue from these activities has declined, partly as a result of a reduction in 2005 of non-recurring revenues (land sales) compared to 2004. Eurotunnel Staff Finally, at 31 December 2005, Eurotunnel had 2,590 members of staff (compared to 3,205 in 2004). CONTACT: EUROTUNNEL S.A. Cheriton Park Cheriton High Street Folkestone Kent CT19 4QS United Kingdom Phone: +44-1303-288-750 Fax: +44-1303-850-360 Web site: http://www.eurotunnel.co.uk/ Press Office Phone: + 44 (0) 1303 288728 or + 44 (0) 1303 288737 E-mail: press.uk@eurotunnel.com Investor Inquiries Xavier Clement Phone: + 331 55 27 36 27 E-mail: xavier.clement@eurotunnel.com FRANCE SOIR: Administrators Grant More Time to Hunt for Buyers -------------------------------------------------------------- The administrators of ailing daily France Soir have extended the deadline for finding a new buyer, Le Figaro says. So far, five interested parties have lodged their bids: Managing Director Eric Fauveau, Vincent Lalu, Jean-Pierre Brunois, Georges Ghosn and ICM. France Soir reportedly has enough cash reserves to remain afloat until mid-February. The commercial court in Bobigny had extended the deadline for takeover offers from Dec. 30 to Jan. 12. This was after 70% owner Raymond Lakah questioned the court chairman's impartiality. Paris prosecutors have launched a preliminary inquiry into parent Presse Alliance. The probe will focus on the 12-month period after Mr. Raymond Lakah took over Press Alliance in October 2004. France Soir declared bankruptcy on Oct. 27, 2005, after failing to pay a EUR6 million debt. Prior to this, it asked the court to freeze debt payments, citing insufficient resources. At the time, the company's assets had dwindled to EUR350,000. A few days later, the court placed France Soir in compulsory administration and imposed a six-month observation period. Chief Executive Jacques Lefranc hopes to present a rehab plan before the end of the observation period. France Soir posted EUR4 million in losses in the first half and expected it to double by the end of 2005. It forecasted EUR20 million in turnover for 2005. CONTACT: PRESSE ALLIANCE 45 Avenue Victor Hugo 93300 Aubervilliers FRANCE-SOIR 45 Avenue Victor Hugo 93300 Aubervilliers Web site: http://www.francesoir.fr ============= G E R M A N Y ============= ABANOS VERMOGENSVERWALTUNG: Kuebler Administrator Takes Over ------------------------------------------------------------ The District Court of Chemnitz opened bankruptcy proceedings against Abanos Vermogensverwaltung GmbH on Dec. 23, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 10, 2006, to register their claims with court-appointed provisional administrator Christian Heintze. Creditors and other interested parties are encouraged to attend the meeting on March 7, 2006, 10:30 a.m., at the district court of Chemnitz, Saal 27, im Gerichtsgebaude, Fuerstenstrasse 21, in Chemnitz, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee or opt to appoint a new insolvency manager. CONTACT: ABANOS VERMOGENSVERWALTUNG GmbH Contact: Volker Griesch, Manager Albrechtstrasse 26, 09130 Chemnitz Christian Heintze, Administrator Kuebler Kassbergstrasse 24, 09112 Chemnitz Web site: http://www.kuebler-gbr.de/ AGFAPHOTO GMBH: Group's Insolvency Hounds Former Parent ------------------------------------------------------- AgfaPhoto GmbH's insolvency is still affecting former Belgian parent Agfa-Gevaert N.V., Die Welt reports. A court recently ruled in nine separate cases that Agfa-Gevaert must honor and fulfill payment commitment to early and partial retirement agreements. The court said the Agfa-Gevaert failed to sufficiently inform affected employees of the legal and economic consequences when it sold AgfaPhoto to the management and a group of financial investors for EUR112 million in November 2004. Agfa-Gevaert said it would appeal against the decision. In a span of six months after its sale, AgfaPhoto no longer had enough cash to pay employees. AgfaPhoto GmbH filed a petition for insolvency in May 2005. The insolvency proceedings in self- administration were opened in August 2005. The Cologne Local Court recently ended the insolvency proceedings in self-administration for AgfaPhoto and ordered statutory insolvency proceedings to be initiated. Despite efforts to stabilize and continue its operations, continuation talks with buyers failed in October 2005. The group halted production at its Munich and Leverkusen sites in November 2005. Headquartered in Leverkusen, AgfaPhoto manufactures photographic film, papers, chemicals and disposable cameras. It also offers online print service, on-site processing, kiosk systems and wholesale finishing. It has 32 subsidiaries outside Germany not affected by its insolvency. The company owes suppliers and pension security body Pensionssicherungsverein. CONTACT: AGFAPHOTO GERMANY GmbH Im Media park 5 D-50670 Cologne Phone: +49 221 98544-3723 Fax: +49 221 98544-3805 Web site: http://www.agfaphoto.com/ AUTO-FRIESENEGGER: Creditors' Claims Due Feb. 13 ------------------------------------------------ The District Court of Augsburg opened bankruptcy proceedings against Auto-Friesenegger GmbH on January 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until February 13, 2006, to register their claims with court-appointed provisional administrator Rainer U. Mueller. Creditors and other interested parties are encouraged to attend the meeting on March 7, 2006, 9:50 a.m. at the District Court of Augsburg, Justizgebaude, Sitzungssaal 162, 1. Stock, Am Alten Einlass 1, 86150 Augsburg, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: AUTO-FRIESENEGGER GmbH Oberlanderstr. 1, 86438 Kissing Contact: Rudolf Friesenegger, Manager Schlesienstr. 11 a, 82278 Althegnenberg Rainer U. Mueller, Administrator Schiessstattenstr. 15, 86159 Augsburg EASTSIDE DORINGBAU: Court to Verify Claims on April 6 ----------------------------------------------------- The District Court of Frankfurt opened bankruptcy proceedings against Eastside Doringbau GmbH on January 5. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 2, 2006 to register their claims with court-appointed provisional administrator Thomas Wulsten. Creditors and other interested parties are encouraged to attend the meeting on April 6, 2006, 11:00 a.m. at the district court of Frankfurt, Muellroser Chaussee 55, 15236 Frankfurt (Oder), Saal 401, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: EASTSIDE DORINGBAU GmbH Dorfstrasse 3 a, 15537 Gruendheide/OT Freienbrink Thomas Wulsten, Administrator Gross-Berliner Damm 73c, 12487 Berlin FARBE UND RAUM: Frankfurt Firm Succumbs to Bankruptcy ----------------------------------------------------- The District Court of Frankfurt opened bankruptcy proceedings against farbe und raum Strausberg eG on January 5. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until February 14, 2006 to register their claims with court-appointed provisional administrator Falk Eppert. Creditors and other interested parties are encouraged to attend the meeting on March 21, 2006, 10:35 a.m. at the District Court of Frankfurt, Muellroser Chaussee 55, 15236 Frankfurt (Oder), Saal 401, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: FARBE UND RAUM STRAUSBERG eG Kastanienallee 48, 15344 Strausberg Falk Eppert, Administrator Vietmannsdorfer Str. 23, 17268 Templin GERLACH HYBRID: Creditors' Meeting Slated for Feb. 16 ----------------------------------------------------- The District Court of Charlottenburg opened bankruptcy proceedings against Gerlach Hybrid Organ GmbH on January 3. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 20, 2006, to register their claims with court-appointed provisional administrator Dr. Christoph Schulte-Kaubruegger. Creditors and other interested parties are encouraged to attend the meeting on February 16, 2006, 9:20 a.m. at the district court of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report on April 20, 2006, 9:55 a.m. at the same venue. CONTACT: GERLACH HYBRID ORGAN GmbH Kopischstr. 10, 10965 Berlin Dr. Christoph Schulte-Kaubruegger, Administrator Genthiner Str. 48, 10785 Berlin GRUNDSTUECKSGESELLSCHAFT FUERSTENWALDE: Calls in Administrator -------------------------------------------------------------- The District Court of Aachen opened bankruptcy proceedings against Grundstuecksgesellschaft Fuerstenwalde Seelower Strasse 6 - 8 GmbH on January 2. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until February 10, 2006 to register their claims with court-appointed provisional administrator Jens Olinger. Creditors and other interested parties are encouraged to attend the meeting on March 27, 2006, 9:20 a.m. at the District Court of Aachen, Augustastrasse 78-80, 52070 Aachen, 1. Etage, Sitzungssaal 14, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: GRUNDSTUECKSGESELLSCHAFT FUERSTENWALDE SEELOWER STRASSE 6 - 8 GmbH Postfach 180164, 40568 Duesseldorf Contact: Christian Faber, Manager Auf dem Ufer 1, 40593 Duesseldorf Jens Olinger, Administrator Eupener Strasse 181, 52066 Aachen HG+S HAUSGERATE: Taps Handschumacher & Merbecks as Administrator ---------------------------------------------------------------- The District Court of Chemnitz opened bankruptcy proceedings against hg+s hausgerate und service sachsen GmbH on December 28. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until February 1, 2006 to register their claims with court-appointed provisional administrator Markus M. Merbecks. Creditors and other interested parties are encouraged to attend the meeting on March 1, 2006, 10:45 a.m. at the District Court of Chemnitz, Saal 28, im Gerichtsgebaude, Fuerstenstrasse 21, in Chemnitz, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: HG+S HAUSGERATE UND SERVICE SACHSEN GmbH Contact: Peter Schluttig and Jens Wolf, Managers Muellerstrasse 26, 09111 Chemnitz Markus M. Merbecks, Administrator Handschumacher & Merbecks Ludwigstrasse 58, 09113 Chemnitz Web site: http://www.handschumacher.de INTERTAINMENT AG: Debt Repayment Failure Prompts Insolvency ----------------------------------------------------------- Troubled film distributor Intertainment AG has declared insolvency after failing to repay a EUR10 million loan to local bank HypoVereinsbank (HVB). According to Borsen Zeitung, it had been apparent before Christmas that the film rights trader would succumb to insolvency after losing a EUR10 million-recovery suit filed by HVB. Intertainment had threatened to file for insolvency if it loses its lawsuit against the bank. Days later, a Munich court ordered affirmed the decision. In September, HVB filed a partial claim for payment of EUR10 million against the group and its unit, Intertainment Licensing GmbH. The partial claim relates to a loan amounting to around EUR14 million taken out by Intertainment Licensing from HVB. The loan is guaranteed by Intertainment AG. At the end of September, the group's liquidity fell EUR0.1 million from EUR1.7 million at the end of 2004. Nine-month turnover also dropped drastically from EUR17.4 million in 2004 to EUR1 million this year, mainly due to legal disputes in the U.S. For the third quarter of 2005, Intertainment posted EUR1 million in losses but had EUR66.7 million in receivables. Intertainment recently won a US$122 million case against U.S. film producer Franchise Pictures. Franchise Pictures, however, declared bankruptcy shortly afterwards, making it unclear how much money Intertainment could recover. About the Company Intertainment has specialized in acquiring theatrical, video and television film rights with large commercial potential, which it markets in Germany and in other European countries (including Eastern Europe). Among its customers are the most important media enterprises. At the same time Intertainment also acquired the rights to commercialize very viable films for the People's Republic of China, as this huge market (with about 1.3 billion people) is currently practically untapped but in the medium term will realize its big potential. Through its subsidiary Intertainment Animation & Merchandising GmbH, it markets interesting cartoons as well as commercially viable merchandising rights. CONTACT: INTERTAINMENT AG Investor Relations Frauenplatz 7, 80331 Munich Phone: +49 (0) 89 21699-0 Fax: +49 (0) 89 21699-11 E-mail: investor@intertainment.de Web site: http://www.intertainment.de/ NOWICOM GMBH: Meeting of Creditors Slated for March 7 ----------------------------------------------------- The District Court of Chemnitz opened bankruptcy proceedings against Nowicom GmbH on December 21. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until January 24, 2006 to register their claims with court-appointed provisional administrator Dr. Axel Fohrmann. Creditors and other interested parties are encouraged to attend the meeting on March 7, 2006, 1:00 p.m. at the District Court of Chemnitz, Saal 24, im Gerichtsgebaude, Fuerstenstrasse 21, in Chemnitz, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: NOWICOM GmbH Weststrasse 49, 09112 Chemnitz Contact: Sebastian Meyer, Manager Dr. Axel Fohrmann, Administrator Dresdner Str. 86, 09130 Chemnitz PERI-WERK: Moody's Ups Corp. Family Rating Outlook to Positive -------------------------------------------------------------- Moody's Investors Service changed the outlook on the ratings of Peri-Werk Artur Schwoerer GmbH & Co. KG (Peri or), the German- based formwork and scaffolding company, to positive from stable. Ratings affected: (a) Peri-Werk Artur Schwoerer GmbH & Co. KG: Long-term corporate family rating: Ba2 (b) Peri GmbH: EUR250 million of Senior Notes maturing in two tranches in 2009 and 2011: Ba3 The change in outlook reflects Peri's strengthened financial key metrics and Moody's expectation that these will continue to strengthen moderately going forward based on the combination of buoyant end markets and broad geographic diversity. Profitability margins and leverage improved during the first nine months of 2005, notwithstanding the strong growth in revenue over the same period, which, in Moody's view, suggests that Peri's management is remaining prudent in its control of working capital and capital spending. In the first nine months of 2005, Peri's sales increased by 22% year-on-year to EUR544 million while EBITDA rose 30% to EUR190 million and adjusted retained cash flow after changes of working capital (adj. RCF) improved by EUR32.3 million to EUR89.1 million. One of Moody's key ratios, adj. RCF to adjusted net debt, improved from 17.4% at the end of 2004 to 23.0% by end- September 2005. In this context, Moody's notes that, in the event that, contrary to current expectations, demand subsides Peri would have a degree of flexibility to adapt the capital expenditures for its rental assets. In such a scenario, Moody's would expect the company to generate free cash flow that could be applied to reduce debt. A rating upgrade would be considered if Peri succeeded in continuing to manage its sales growth without adversely impacting double-digit profitability margins and retained cash flows when adding additional production and rental capacities to provide for future expansion. In addition, a consistent level of adjusted retained cash flow to net adjusted debt above 20% at existing or higher debt levels would support Moody's assumption that cash flow is sustainable. Peri's liquidity profile is viewed as solid for the next twelve months, with limited debt maturities expected that should be sufficiently covered by gross cash flows. Peri's balanced debt maturity schedule -- with the syndicated loan maturing in 2008, the Senior Notes' two tranches not maturing until 2009 and with headroom under the respective covenants -- supports Moody's favourable liquidity assessment of the company. Peri is one of the world's leading developers, manufacturers and suppliers of formwork systems for cast-in-place concrete and providers of related engineering and technical services. A family-owned business based in Weissenhorn, Germany, Peri employs over 4,000 staff and engages in the direct sale and rental of formwork systems and scaffolding systems to the construction industry and also offers supporting services which complement its core businesses. With more than 70 sales-and- rental parks located around the world, Peri operates one of the largest rental stocks of formwork systems, enabling it to offer just-in-time delivery to its more than 25,000 customers. The company generated net sales of approximately EUR610 million in the fiscal year ended 31 December 2004 (EUR544 million in the 9 months to 30 September 2005). CONTACT: MOODY'S DEUTSCHLAND GmbH (FRANKFURT) Michael West, Managing Director Corporate Finance Group Phone: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 Matthias Hellstern, Vice President - Senior Analyst Corporate Finance Group Phone: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 TEXTILE-CONCEPT: Taps Dr. Junker & Kollegen as Administrator ------------------------------------------------------------ The District Court of Chemnitz opened bankruptcy proceedings against Textile-Concept GmbH on December 20. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until January 26, 2006 to register their claims with court-appointed provisional administrator Dr. Christoph Junker. Creditors and other interested parties are encouraged to attend the meeting on March 9, 2006, 9:45 a.m. at the District Court of Chemnitz, Saal 24, im Gerichtsgebaude, Fuerstenstrasse 21, in Chemnitz, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee or opt to appoint a new insolvency manager. CONTACT: TEXTILE-CONCEPT GmbH Contact: Werner Kordel, Manager Am Steigerwald 9, 09456 Annaberg-Buchholz Dr. Christoph Junker, Administrator Dr. Junker & Kollegen Karcherallee 25a, 01277 Dresden Web site: http://www.junker-kollegen.de ZIMO VERWALTUNGS: Creditors Has Until Jan. 24 to Register Claims ---------------------------------------------------------------- The district court of Chemnitz opened bankruptcy proceedings against ZIMO Verwaltungs-GmbH on December 20. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until January 24, 2006, to register their claims with court-appointed provisional administrator Steffen Klein. Creditors and other interested parties are encouraged to attend the meeting on March 7, 2006, 11:45 a.m. at the district court of Chemnitz, Saal 24, im Gerichtsgebaude, Fuerstenstrasse 21, in Chemnitz, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: ZIMO VERWALTUNGS-GmbH Contact: Rainer Vietze, Manager Norbert Gurn, Birkenweg 2, 08058 Zwickau Steffen Klein, Administrator Poetenweg 36, 08056 Zwickau Web site: http://www.RAKLEIN-ZWICKAU@T-ONLINE.DE/ ============= H U N G A R Y ============= NABI RT: Posts Decline in 2005 Bus Sales ---------------------------------------- In 2005, the NABI Group delivered 851 buses to its customers on the U.S., the U.K. and Hungarian markets. Number of Bus Deliveries According to Market and Type Market Bus Type 2005 2004 2003 12/31 12/31 12/31 U.S.A. 30-foot (medium duty) 0 1 70 35/40-foot (heavy duty) 305 468 483 60-foot (heavy duty) 138 133 76 40/45-foot CompoBus 46 84 57 Market Total: 489 685 686 Hungary Market Total Single deck over 7.5t 12 22 19 Grand Total (w/o Optare) 501 707 705 Discontinued Operation (Optare) 350* 520 444 Grand Total: 851 1,227 1,149 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - * From January to July 2005 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The U.S. market continued to be slow after a period of contraction that began in 2001. As the majority of transit bus procurements depend upon Federal funding assistance requiring local "match-funding," State and local economies continue to affect bus acquisitions. Although many states appear to be emerging from widespread budget shortages over the last years, widespread recovery is not yet being seen in spending on transportation projects. As more stringent emissions standards for urban buses will become effective in 2007, it appears likely that uncertainties over such matters, or decisions to defer bus purchases until new, "cleaner and greener" engines are available may be a part of such delayed reaction to improving local economies. Also for the U.S. market, new legislation was enacted in August of 2005 to guarantee federal funding for transportation projects over the next six years. The Safe, Accountable, Flexible, and Efficient Transportation Equity Act -- A Legacy for Users (SAFETEA-LU) will provide US$822 million in federal funds for bus and bus facilities in 2006. This assures transit authorities federal money for the acquisition of buses for fleet and service expansion and bus related facilities as local funding of public transportation projects resumes. SAFETEA-LU will give operators over US$52.6 billion for public transportation projects through FY 2009, suggesting a period of forthcoming expansion. Thirty NABI 60-BRT articulated buses began revenue service on Los Angeles' 14-mile Bus Rapid Transit corridor, a dedicated bus-way, at the end of October. Since that time Los Angeles Metro has experienced double the expected ridership; with 16,400 passenger boarding per day after two months of revenue service. An additional 170 60-BRT buses, supplied by NABI, are being deployed incrementally onto some of Los Angeles County's busiest rapid bus corridors. The unusually quiet, low-floor NABI buses are helping boost ridership in the heavily congested Los Angeles metropolitan area. Interest in high-capacity BRT operations continues to expand, with the Los Angeles experience serving as a model for other operators. Purchases in 2003 and 2004 in the Hungarian market were very low compared to previous years' figures. This unfortunate trend continued during 2005 as well. BKV was the only public transit company with significant vehicle purchases in 2005. A centralized tender invitation was anticipated for a long time. In November, the Volan companies received around HUF9 billion in equity increase to be spent on rolling stock purchase. The tender invitation was published on the European Union's web site on the last day of the year. Three separate categories were specified, the total quantity being 219 (add/subtract 30%) units. As announced earlier, on July 28, 2005, the NABI Group sold its UK subsidiary-Optare Holdings, Ltd. The above table contains Optare bus sales performance figures for the period of January to July 2005 as a separate item. As of December 31 2005, NABI's order book contained 281 firm orders in the U.S.A. Approximately 640 buses can be ordered under options. * * * Debt Restructuring Nabi Rt. in May 2005 agreed in principle with financiers to restructure approximately US$103 million short-term debt and other banking facilities. Under the agreement, the financiers agreed to reduce their debt to US$60 million, with a portion of such reduction converted to 90% equity in NABI Inc. (NABI Rt.'s main operating subsidiary) and up to 33% equity interest in NABI Rt. The reduced debt will be classified as long term and will have maturities of 5 to 8 years. All warrants formerly issued by NABI Rt. to the financiers will also be cancelled. On completion of the restructuring, NABI Inc. will be the sole borrower of US$60 million reduced debt. NABI Rt. will be free of debt, but will guarantee repayment of up to US$6.5 million of NABI Inc.'s debt, secured by a first lien on all of NABI Rt.'s real estate assets. Nabi will ensure the continued supply of steel shells, chassis, parts and service from Hungary to the U.S. business. It will sell assets and businesses, with the proceeds to be used to reduce debt. CONTACT: NABI RT. 45 Ujszasz u. Budapest 1165 Phone: +36-1-401-7399 Fax: +36-1-407-2931 E-mail: nabihq@nabi.hu Web site: http://www.nabi.hu/ Andras Bodor Corporate Affairs Director Phone: +36-1-401-7100 E-mail: andras.bodor@nabi.hu =================== K A Z A K H S T A N =================== BANK CENTERCREDIT: Fitch Assigns Upcoming Eurobond Issue at BB- --------------------------------------------------------------- Fitch Ratings has assigned CenterCredit International B.V.'s upcoming issue of a Eurobond an expected Long-term 'BB-' rating. The notes are to be used solely for financing a deposit with Kazakhstan's Bank CenterCredit (BCC, rated Long-term 'BB-') with Stable Outlook, Short-term 'B', Individual 'D', and Support '3'). CenterCredit International B.V., a Netherlands-domiciled special purpose vehicle (SPV), will only pay noteholders principal and interest received from BCC. In addition, BCC unconditionally and irrevocably guarantees the timely and full repayment of the notes in the trust deed between the bank and the trustee, Deutsche Trustee Company Limited. The final rating is contingent upon receipt of final documentation conforming materially to information already received. The terms and conditions of the notes specify that they will rank at least pari passu with the claims of other unsecured creditors of the issuer and that the obligations of BCC under the guarantee will rank at least pari passu with claims of other unsecured creditors of BCC, save those preferred by relevant (bankruptcy, liquidation etc.) laws. Under Kazakh law, the claims of retail depositors rank above those of other senior unsecured creditors. At end-9M05, retail deposits accounted for 25% of BCC's total liabilities, according to the bank's unaudited IFRS financial statements. Covenants prevent BCC from entering into transactions of US$7 million or more on other than market terms, restrict dividend payments to 50% of net income, and oblige the bank to maintain a total capital ratio of at least 10%, as calculated in accordance with the Basel Committee's recommendations. The terms and conditions of the notes also contain a cross default clause and a negative pledge clause, the latter of which allows for a degree of securitization by BCC. Should any securitization be undertaken, Fitch comments that the nature and extent of any overcollateralization would be assessed by the agency for any potential impact on unsecured creditors. Additionally, noteholders can put the bonds if BCC's rating is withdrawn or downgraded by more than one notch as a result of either a merger or the sale by BCC of all, or a substantial part of, its assets to another entity. BCC is one of the six largest banks in Kazakhstan with assets of KZT258 billion (USD1,926 million) as of 30 September 2005, focusing primarily on business with SMEs and retail customers. CONTACT: BANK CENTERCREDIT 100, Shevchenko Str. 050022 Almaty, Republic of Kazakhstan Phone: +7(3272) 58-41-58 Fax: +7(3272) 58-45-10 E-mail: info@centercredit.kz Web site: http://www.centercredit.kz/ FITCH RATINGS Alexei Kechko James Watson, Moscow Phone: +7 095 956 9901 Media Relations Jon Laycock, London Phone: +44 20 7417 4327 Web site: http://www.fitchratings.com/ KIRIKA-PLUS: Declared Insolvent ------------------------------- LLC Kirika-Plus has declared bankruptcy. Creditors may submit their proofs of claim to Almaty region, Karasaisk district, Kaskelen, Jangozina Str. 8. Call 8 (3272) 30-99-15 for more information. KOSPROM: Almaty Court Opens Bankruptcy Proceedings -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has commenced bankruptcy proceedings against LLC Kosprom. CONTACT: KOSPROM Almaty, Auezova Str. 67 SEIHAN: Creditors Have Until Feb. 10 to File Proofs of Claim ------------------------------------------------------------ LLC Seihan has declared insolvency. Creditors may submit their proofs of claim to Almaty, Kunayeva Str. 64 on or before February 10, 2006. Call 8 (3272) 30-25-14 for more information. USHKUL: Specialized Economic Court Declares Bankruptcy ------------------------------------------------------ The Specialized Inter-Regional Economic Court on North Kazakhstan Region has declared LLC Ushkul bankrupt. The proofs of claim will be accepted at Petropavlovsk, Jumabayeva Str. 109- 506 on or before Feb. 13, 2006. CONTACT: USHKUL Petropavlovsk, Jumabayeva Str. 109-506 =================== K Y R G Y Z S T A N =================== ALLIANCE-ASIA: Claims Bar Date Set for March 6 ---------------------------------------------- Alliance-Asia West, which recently became insolvent, will accept proofs of claim on or before March 6, 2006. Call (+996 312) 62-46-86 for more information. IDF: Gives Creditors Until March 6 to File Claims ------------------------------------------------- IDF, which recently became insolvent, will accept proofs of claim on or before March 6, 2006. Call (+996 312) 62-46-09 for more information. KYRGYZ GER: Creditors Claim Due March ------------------------------------- Joint Stock Commercial Bank Kyrgyz Ger, which recently became insolvent, will accept proofs of claim by March 6, 2006. CONTACT: KYRGYZ GER Bishkek, Chui ave., 114 Phone: (+996 312) 62-70-09 ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Paying $1.1 B as Settlement for Class Action --------------------------------------------------------------- The U.S. District Court for the District of Maryland ordered Koninklijke Ahold to begin a multi-national notification program to alert investors, brokers, financial institutions and other nominees who bought or received as a dividend Royal Ahold N.V. common stock and/or American Depository Receipts (ADRs) from July 30, 1999 through February 23, 2003 about a $1.1 billion settlement of a class action lawsuit against Royal Ahold and numerous co-defendants. On February 24, 2003, Royal Ahold had allegedly inflated earnings by at least $500 million based on conduct of U.S. Foodservice, Inc., Ahold's wholly owned subsidiary. On Feb. 24, 2003, Ahold also informed investors that Ahold would restate previously announced revenues that it improperly consolidated from certain joint ventures. Following Ahold's Feb. 24, 2003, announcement, the value of Ahold common stock and ADRs declined in value by more than 60%. According to the class action lawsuit, Ahold eventually announced restatements exceeding $24 billion in revenues and $1.1 billion in income. The lawsuit alleged that the defendants' conduct presented a misleading financial picture of Ahold to investors, and artificially inflated the price of Ahold's common stock and ADRs during the period from July 30, 1999 through February 23, 2003. The Court defined "Class Members" in the Settlement to include all people and entities who bought or received as a dividend Royal Ahold N.V. common stock and/or ADRs from July 30, 1999 through February 23, 2003, regardless of where such people live or purchased their shares of Royal Ahold. Notices informing Class Members about their legal rights will be mailed, and are scheduled to appear in publications in approximately 24 countries and 14 languages, leading up to a hearing on June 16, 2006, when the Court will consider whether to approve the Settlement. In November 2003, the Court appointed the law firm of Entwistle & Cappucci LLP, of New York, NY to represent the Class. That firm has been litigating this case known as In re Royal Ahold Securities and "ERISA" Litigation, MDL 1539 since that time, and they negotiated the Settlement. Those affected by this Settlement can send in a claim form to ask for a payment, or they can ask to be excluded from, or object to, the Settlement and its terms. The deadline for exclusions and objections is May 12, 2006. Payment amounts will depend on the number of valid claim forms that Class Members send in, how many shares of Ahold stock they bought or received as a dividend, and when they bought and sold them. The deadline to file claims is Aug. 18, 2006. Notices, claim form, the Plan of Allocation and the Settlement Agreement is available at http://www.AholdSettlement.com/ Those affected may also write to Ahold Claims Administrator, PO Box 9000 #6378, Merrick, NY 11566-9000, USA. Country Toll Free Number ------- ---------------- Australia 0011 800 1020 4060 Austria 00 800 1020 4060 Belgium 00 800 1020 4060 Canada 1 888 410 0027 Denmark 00 800 1020 4060 England 00 800 1020 4060 Finland 00 800 1020 4060 France 00 800 1020 4060 (France Telecom) 40 800 1020 4060 (TELE 2) 50 800 1020 4060 (Omnicom) 70 800 1020 4060 (Le 7 Cegetel) 90 800 1020 4060 (9 Telecom) Germany 00 800 1020 4060 Hong Kong 00 800 1020 4060 Ireland 00 800 1020 4060 Italy 00 800 1020 4060 Japan 00 800 1020 4060 Liechtenstein 809 2288, then when prompted enter 800 467 8208 Luxembourg 00 800 1020 4060 Netherlands 00 800 1020 4060 Norway 00 800 1020 4060 Portugal 00 800 1020 4060 Scotland 00 800 1020 4060 Singapore 001 800 1020 4060 (Singtel IDD) 002 800 1020 4060 (MobileONE IDD) 008 800 1020 4060 (Starhub IDD) 013 800 1020 4060 (Singtel Budget Call) 018 800 1020 4060 (Starhub I-Call) 019 800 1020 4060 (Singtel V019) Spain 00 800 1020 4060 Sweden 00 800 1020 4060 Switzerland 00 800 1020 4060 United States 1 888 410 0027 From any other country, Class Members may place a toll call to the Claims Administrator in the U.S. by calling +1-941-906-4864. Press contact: Class Counsel, Andrew J. Entwistle, Entwistle & Cappucci LLP, +1-212-894-7200 KONINKLIJKE AHOLD: Trading Statement Correction Issued Jan. 12 -------------------------------------------------------------- Koninklijke Ahold disclosed that its Trading Statement for the 2005 fourth quarter issued on Jan. 12 reported incorrect figures for comparable sales growth for Stop & Shop and Giant-Landover for Q4 2005 and Full Year 2005. Comparable sales for Stop & Shop for Q4 2005 increased by 1.3%, not 1.8% as reported. Comparable sales for Giant-Landover for Q4 2005 decreased by 0.7%, not 0.4% as reported. Comparable sales for Stop & Shop for FY 2005 increased by 0.7%, not 0.8% as reported. Comparable sales for Giant-Landover for FY 2005 were correctly reported at a decrease of 2.4%. The discrepancies occurred as a result of a manual calculation error. The identical sales percentages are as reported. Ahold apologizes for the incorrect figures reported. The net sales figures presented in the Trading Statement are preliminary and unaudited. About the Company Ahold got in trouble in 2003 when it admitted a US$500 million overstated EBITA at its U.S. foodservice distribution arm, requiring restatement of financial accounts for 2002 and previous years. In November that year, it announced a 3-year 'Road to Recovery' program that includes a EUR2.5 billion rights issue, EUR300 million and US$1.45 billion backup credit facilities, and at least EUR2.5 billion in asset sales. The program is aimed at returning the company to investment grade by end of 2005. Status to Date In August, Standard & Poor's Ratings Services raised its long- term corporate credit ratings on Ahold to 'BB+' from 'BB' with a stable outlook to reflect substantial improvement of the group's financial profile in the past 18 months. This follows the completion of a significant disposal program, to date exceeding the stated EUR2.5 billion (US$3.1 billion) target. Standard & Poor's said it would consider an upgrade to investment grade level only if: (a) The challenging environment currently prevailing in the group's core U.S. and Dutch retail markets improves; and (b) The ratio of FFO to fully adjusted net debt and the EBITDAR coverage of net fixed charges improve beyond 25% and 2.5x, respectively. Despite the group's deleveraging target and the completion of remaining disposals in 2005, S&P said these conditions might not be achieved in the near term, given the very challenging trading conditions that are prevailing in the group's core markets. CONTACT: ROYAL AHOLD Albert Heijnweg 1 1507 EH Zaandam, The Netherlands Phone: +31 (0) 75 659 9111 Web site: http://www.ahold.com/ Investor Relations E-mail: investor.relations@ahold.com Phone: +31 (0) 75 659 58 28 KONINKLIJKE AHOLD: Moody's Revises Ratings Outlook to Positive -------------------------------------------------------------- Moody's Investors Service has upgraded the Corporate Family Rating and the Senior Unsecured Long-Term Rating of Koninklijke Ahold N.V. (Ahold). The outlook is positive. The upgrade reflects Moody's expectation that Ahold's credit metrics will continue to improve significantly over the short term on the back of the completion of the divestment program, the proceeds of which were allocated to debt reduction and which will enable management to refocus its attention on the company's core businesses. The Ba1 Corporate Family Rating additionally recognizes the scale of Ahold's key U.S. food retail segment and the earnings generated by this business segment. It also reflects Ahold's scale in food retail in the Netherlands and its position as the second largest operator in the Foodservice segment in the U.S. The rating additionally takes account of: (a) Ahold's achievements in exceeding the EUR2.5 billion target of its planned disposals program (having achieved EUR3.1 billion in gross proceeds); (b) Moody's expectation that Ahold's group operating margins will recover towards 2002 levels due to the disposal of non-core operations (most of which are low-margin or loss- making); and (c) The agency's view that recent management initiatives at US Foodservice have established a platform that should support a gradual turnaround in the operating performance of this business. The Ba1 rating anticipates that Ahold's financial profile should continue to improve over the intermediate term. In Moody's view, the disposals strategy should not only facilitate an improvement in the company's financial profile but should also result in a group with greater earnings predictability as Ahold exits its emerging markets. At the same time, the disposal of the weaker businesses in its mature markets should allow management to spend more time focusing on its more profitable businesses and driving improvements in those businesses that have the potential for growth. Nonetheless, Moody's expects that improvements in group operating margins will be constrained by the following factors: (a) Increased competition facing its key U.S. food retail segment; (b) The continuing price war in the Netherlands, coupled with weak economic conditions and discount sector growth across Europe; (c) The increase in energy prices, pension and insurance costs in the U.S. that can no always be passed on to customers. Moreover, Moody's believes that the company still has to complete the integration of the large number of companies that were acquired over time in order to extract synergies and further improve infrastructure costs (including IT and real estate). Moody's expects Ahold's credit metrics to improve significantly over the intermediate term, with adjusted Retained Cash Flow pre working capital/Net lease and pension adjusted debt to be in the high teens percent (17%-19%), net lease and pension adjusted debt to EBITDAR falling to around 4 and total coverage migrating to 2.5. Although there is no notching between the Corporate Family Rating and the Senior Unsecured Rating, Moody's notes that the debt located at the operating subsidiaries amounts to roughly EUR3 billion, i.e. more than 30% of the group's gross debt. Given the de-leveraging at the parent company level, Moody's does not anticipate a decrease in the level of structural subordination over the medium term. Ahold's liquidity profile is very strong, and is underpinned by a EUR2 billion-syndicated loan (undrawn with the exception of less than EUR700 million letters of credit outstanding), moderately freely available cash balances, and debt repayments limited to EUR227 million in 2006. Uncertainty over the outcome of the ongoing investigations was eliminated with the November 2005 settlement of the class action lawsuit. While Moody's recognizes that the cost of this settlement (EUR945 million) is significant, it views the definitive resolution of the pending investigations against the firm as a positive development, given that they had been a material drain on management's time. Based in Amsterdam, the Netherlands, Koninklijke Ahold N.V. is a leading international food provider, with operations in Europe and the United States. In 2004, the company reported revenues of EUR52 billion. CONTACT: MOODY'S FRANCE S.A. (PARIS) Eric de Bodard, Managing Director European Corporates Group Phone: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 Myriam Durand, Vice President - Senior Analyst European Corporates Group Phone: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 ROYAL SHELL: Cancels Another 550,000 'A' Shares ----------------------------------------------- Royal Dutch Shell plc purchased for cancellation 400,000 'A' Shares at a price of EUR26.98 per share, on Jan. 16, 2006. It further purchased for cancellation 150,000 'A' Shares at a price of 1,851.25 pence per share. Following the cancellation of these shares, the remaining number of 'A' Shares of Royal Dutch Shell plc will be 3,934,177,974. As of that date, 2,759,360,000 'B' Shares of Royal Dutch Shell plc were in issue. * * * In 2005, Shell returned US$5 billion to shareholders in 2005 via market purchases of shares. This target included shares purchased for cancellation by The Shell Transport and Trading Company plc and Royal Dutch Petroleum Company prior to the Group unification of US$0.5 billion. The Company expects to continue its buyback program in 2006 and will provide an update on the 2006 buy back program with the full year results announcement on February 2, 2006. Shell's buyback scheme is aimed at reviving shareholders' and investors' confidence. The buyback program follows a damaging reserves overestimation scandal last year. About the Company Royal Dutch Shell plc, incorporated in England and Wales, is headquartered in The Hague and listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 145 countries with businesses including oil and gas exploration and production; production and marketing of Liquefied Natural Gas and Gas to Liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects including wind and solar power. The Trouble Shell admitted overstating proved reserves by almost 6 billion barrels between January 2004 and February last year. This led to the ouster of three top executives, including former Chairman Philip Watts. The company was fined EUR150 million in total after investigations launched by U.S. and British regulators. Shell has since revised the method by which it calculates reserves to comply with U.S. regulations. Shell's proved reserves stood at 10.2 billion barrels at the end of 2004. CONTACT: ROYAL DUTCH/SHELL GROUP OF COMPANIES Carel van Bylandtlaan 30 2596 HR The Hague The Netherlands Phone: +31 70 377 9111 Fax: +31 70 377 3115 Web site: http://www.shell.com/ =========== R U S S I A =========== AIR-ENGINES: Bankruptcy Supervision Procedure Begins ---------------------------------------------------- The Arbitration Court of Altay region has commenced bankruptcy supervision procedure on close joint stock company Air-Engines. The case is docketed as A02-3486/05. Mr. A. Yakovlev has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 656056, Russia, Barnaul, Post User Box 102. A hearing will take place on January 17, 2006. CONTACT: AIR-ENGINES 649000, Russia, Gorno-Altaysk, Kommunisticheskiy Pr. 53 A. YAKOVLEV Temporary Insolvency Manager 656056, Russia, Barnaul, Post User Box 102 DALNEGORSKAYA: Primorye Court Opens Bankruptcy Proceedings ---------------------------------------------------------- The Arbitration Court of Primorye region commenced bankruptcy proceedings against Dalnegorskaya after finding the open joint stock company insolvent. The case is docketed as A51-14918/05 26-218 B. A. Krasovskiy has been appointed insolvency manager. CONTACT: A. KRASOVSKIY Insolvency Manager 692443, Russia, Primorye region, Dalnegorsk, 8th Marta Str. 2, Apartment 32 FOREST-INDUSTRY: Arbitration Court Begins Bankruptcy Proceeding --------------------------------------------------------------- The Arbitration Court of Amur region commenced bankruptcy proceedings against Forest-Industry after finding the close joint stock company insolvent. The case is docketed as A04- 420/04-6/26 "B". Mr. Y. Babinets has been appointed insolvency manager. A hearing will take place on April 27, 2006. CONTACT: FOREST-INDUSTRY 676080, Russia, Amur region, Tynda, Sovetskaya Str. 53 Y. BABINETS Insolvency Manager 675000, Russia, Amur region, Blagoveshensk, Post User Box 233 GAGARIN-AGRO-TEKH-SERVICE: Succumbs to Bankruptcy ------------------------------------------------- The Arbitration Court of Smolensk region commenced bankruptcy proceedings against Gagarin-Agro-Tekh-Service after finding the open joint stock company insolvent. The case is docketed as A- 62-1175/2005 (627-N/05). Mr. P. Protsenko has been appointed insolvency manager. CONTACT: GAGARIN-AGRO-TEKH-SERVICE Russia, Smolensk region, Gagarin, Selkhoztekhniki Proezd, 5 P. PROTSENKO Insolvency Manager 215010, Russia, Smolensk region, Gagarin, Selkhoztekhniki Proezd, 5 INVESTMENT-BUILDING COMPANY: Under Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Novosibirsk region has commenced bankruptcy supervision procedure on close joint stock company Investment-Building Company. The case is docketed as A45- 21533/05-27/289. Mr. A. Demidov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 630060, Russia, Novosibirsk, Post User Box 132. A hearing will take place on April 3, 2006, 2 p.m. at Russia, Novosibirsk region, Kirova Str. 3, Room 915. CONTACT: INVESTMENT-BUILDING COMPANY Russia, Novosibirsk region, Dimitrova Str. 17-61 A. DEMIDOV Temporary Insolvency Manager 630060, Russia, Novosibirsk region, Post User Box 132 MECHANICAL PLANT: Insolvency Manager Takes over Firm ---------------------------------------------------- The Arbitration Court of Krasnoyarsk region commenced bankruptcy proceedings against Mechanical Plant after finding the open joint stock company insolvent. The case is docketed as #A33- 15918/2005. Mr. E. Katser has been appointed insolvency manager. CONTACT: MECHANICAL PLANT 662100, Russia, Krasnoyarsk region, Achinsk, Pionerskaya Str. 2 E. KATSER Insolvency Manager 660041, Russia, Krasnoyarsk region, Post User Box 12161 ARBITRATION COURT OF KRASNOYARSK REGION 660021, Russia, Krasnoyarsk region, Lenina Str. 143 NEVELSKIY SHIPYARD: Sakhalin Court Brings-In Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Sakhalin region commenced bankruptcy proceedings against Nevelskiy Shipyard (TIN 6505000476) after finding the open joint stock company insolvent. The case is docketed as A59-1235/05-S12. G. Dolin has been appointed insolvency manager. CONTACT: NEVELSKIY SHIPYARD 694740, Russia, Sakhalin region, Nevelsk, Sovetskaya Str. 28 G. DOLIN Insolvency Manager 693013, Russia, Yuzhno-Sakhalinsk, Komsomolskaya Str. 280 NIZHNEOMSKAYA SEL-KHOZ-TEKHNIKA: Bankruptcy Hearing Set Feb. 28 --------------------------------------------------------------- The Arbitration Court of Omsk region has commenced bankruptcy supervision procedure on open joint stock company Nizhneomskaya Sel-Khoz-Tekhnika. The case is docketed as K/E-154/05. Mr. A. Shipitsyn has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 644043, Russia, Omsk region, Post User Box 5222. A hearing will take place on February 28, 2006. CONTACT: NIZHNEOMSKAYA SEL-KHOZ-TEKHNIKA Russia, Omsk region, Nizhnyaya Omka, Transportnaya Str. 57 A. SHIPITSYN Temporary Insolvency Manager 644043, Russia, Omsk region, Post User Box 5222 OAO GAZPROM: Increased State Support Spurs S&P's BB+ Rating ----------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based gas company OAO Gazprom to 'BB+' from 'BB', in view of an increase in state support, and following the $7 billion purchase of the company's treasury stock by the Russian state-owned special-purpose vehicle Rosneftegas. The outlook is positive. The rating upgrade reflects the cash payment from Rosneftegas, which, together with higher export prices, has allowed Gazprom to limit increases in year-end parent debt to about $23 billion (closer to $28-$30 billion including subsidiary debt). In particular, this helped the company to prepay $8 billion of the $13 billion loan raised to finance the acquisition of Sibneft by the end of 2005. "We also expect Gazprom to benefit from a greater degree of state support as its links with the government become stronger, and in view of recent improvement in the sovereign credit quality," said Standard & Poor's credit analyst Elena Anankina. The foreign currency ratings on the Russian Federation were raised to 'BBB/Stable/A-2' on Dec. 15, 2005. As the key government-related entity in Russia's strategic oil and gas sector, Gazprom enjoys a strong hold on new hydrocarbon projects in the country; and substantial bargaining power in structuring consortiums for oil and gas projects with international partners, as well as negotiating gas supply and transit contracts. The Russian government has demonstrated a policy of increasing its presence in the country's key oil and gas sector through state-owned entities--a position illustrated by the increase of its holding in Gazprom to 50% from 39%, in 2005. The situation with regard to the recent dispute on gas transit and supply terms with Ukraine (foreign currency BB- /Stable/B; local currency BB/Stable/B) also evidences the close links with, and support from, the Russian government. Accordingly, our corporate credit rating on Gazprom currently includes one notch of state support. Gazprom remains subject to general political and emerging market risks related to Russia, however. The unpredictable nature of Russian government policy, potential investment mandates and still very low regulated domestic gas prices (averaging $36/mcm in 2005), together with substantial financial debt levels, remain key constraints on the rating on Gazprom. At June 30, 2005, Gazprom had $22.7 billion of consolidated on-balance-sheet debt, $2.7 billion in guarantees, and about $1 billion of postretirement liabilities. "A one-notch upgrade of the long-term corporate credit rating on Gazprom is possible, based on continued evidence of state support, or on likely further improvement of its stand-alone credit quality," said Ms. Anankina. Gazprom's debt maturity profile should benefit from the expected refinancing of the short-term Sibneft acquisition debt, and higher free cash flow generation in light of an increase in gas prices for 2006. Increases in debt, ambitious further acquisitions, or a higher share of short-term debt or annual debt maturities, could limit upside potential for the ratings. CONTACT: OAO GAZPROM 16 Nametkina 117997 Moscow, V-420, Russia Phone: +7-95-719-3001 Fax: +7-95-719-8333 Web site: http://www.gazprom.ru/ PINE-TREE: Khabarovsk Court Begins Bankruptcy Proceedings --------------------------------------------------------- The Arbitration Court of Khabarovsk region commenced bankruptcy proceedings against Pine-Tree after finding the open joint stock company insolvent. The case is docketed as A73-8798/2005-38. K. Podskrebyshev has been appointed insolvency manager. CONTACT: PINE-TREE Russia, Khabarovsk region, Krasnyj Luch, Zarechnaya Str. 29 K. PODSKREBYSHEV Insolvency Manager 680013, Russia, Khabarovsk region, Lenina Str. 75-331 SIBERIAN OIL: S&P Affirms Long-term Corp. Credit Rating to BB ------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based OAO Siberian Oil Co. to 'BB' from 'BB-', following the upgrade of its 76% parent, OAO Gazprom, to 'BB+' from 'BB'. The outlook is positive. At the same time, the Russia national scale rating on Sibneft was raised to 'ruAA' from 'ruAA-'. "Sibneft is Gazprom's strategic asset in the oil sector," said Standard & Poor's credit analyst Elena Anankina. "The company would also likely be considered a material subsidiary under the terms of Gazprom's medium-term notes program, and hence would be subject to cross default, thereby increasing Gazprom's economic incentive to support it." With a 76% stake, Gazprom has full control over Sibneft's management and strategy (the blocking stake under Russian law is 25%). The shareholding by Gazprom (in turn, majority government-owned), with strong bargaining power, will likely help reduce Sibneft's exposure to the risk of sovereign interference once the state effectively controls Sibneft through Gazprom. The difference between the corporate credit rating on Sibneft and that on its parent reflects the fact that Gazprom's strategy regarding Sibneft has yet to be been finalized, and that the integration process has not yet been completed. Sibneft currently operates quite autonomously from other Gazprom assets, its debt is not guaranteed by the parent, and it has substantial minority shareholders. Distressed Russian oil company OAO NK Yukos (D) owns a 20% stake in Sibneft, the status of which remains unclear, as it has been frozen by the Russian courts against claims on Yukos. "The rating on Sibneft could be further raised in the event of a minority buyout, or if Gazprom's strategy results in closer integration within the Gazprom group and stronger parental support," said Ms. Anankina. Standard & Poor's will consider the relative status of Sibneft's creditors compared with those of Gazprom, and the future strategic importance of Sibneft's oil business to the Gazprom group and its integration within the group, before it considers equalizing the ratings on the two companies. CONTACT: OAO SIBERIAN OIL CO. Sadovnicheskaya St. 4 115035 Moscow, Russia Phone: +7-095-777-3152 Fax: +7-095-777-3151 TYUMENSKAYA COMPLEX: Under External Management Procedure -------------------------------------------------------- The Arbitration Court of Tyumen region has commenced external management bankruptcy procedure on close joint stock company Tyumenskaya Complex Geological Exploration Expedition (TIN 7202054072). The case is docketed as A-70-4114/3-2005. Mr. V. Korchemkin has been appointed external insolvency manager. CONTACT: TYUMENSKAYA COMPLEX GEOLOGICAL EXPLORATION EXPEDITION 625031, Russia, Tyumen region, Druzhby Str. 128 V. KORCHEMKIN External Insolvency Manager 625000, Russia, Tyumen region, Post User Box 3569 ARBITRATION COURT OF TYUMEN REGION 625000, Russia, Tyumen region Khokhryakova Str. 77 =========== S W E D E N =========== CONCORDIA BUS: Improved Liquidity Prompts S&P's B- Rating --------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Swedish bus-services provider Concordia Bus AB to 'B-' from 'CC' and removed the rating from CreditWatch, where it was placed with positive implications on Oct. 7, 2005, following the agreed annulment of the group's EUR160 million senior subordinated notes. The outlook is negative. At the same time, Standard & Poor's raised its senior secured debt rating on the EUR130 million secured notes issued by Concordia's wholly owned indirect subsidiary Concordia Bus Nordic AB, to 'CCC+' from 'C' and also removed the rating from CreditWatch. Concordia provides a guarantee in favor of the notes. The notes are rated one notch below the long-term corporate credit rating of Concordia to reflect structural subordination to operating lease providers. At Nov. 30, 2005, the group reported total debt unadjusted for operating leases of EUR178 million. "The upgrade reflects Concordia's improvement of its distressed liquidity position and moderate strengthening of a weak capital structure, following the conclusion of the group's financial restructuring," said Standard & Poor's credit analyst Leigh Bailey. "The negative outlook, however, reflects that Concordia's operating track record is poor and financial flexibility is limited. Leverage remains high and liquidity could be threatened if the group is unable to improve its operating performance and cash flows over the next 12 months." Concordia's restructuring has improved its liquidity position through the utilization of a new EUR45 million mezzanine facility that had strengthened the group's unrestricted cash balances to Swedish krona (Skr) 302 million at Nov. 30, 2005. This level of cash resources should be sufficient for the group's operating requirements over the next 12 months and is the principal factor behind the raising of the ratings. The group's financial profile has also improved, following the conversion of EUR160 million subordinated notes to equity. The reduced debt burden and significant decrease in debt service costs should allow the group to strengthen weakened coverage ratios. Concordia's poor operating track record and highly leveraged financial structure could compromise the group's liquidity position if financial performance does not improve over the next 12 months. The ratings could be pressured in the event that the group fails to reverse operating losses and/or liquidity becomes stretched. "There is scope for the revision of the outlook to stable if the performance of the group's contract portfolio can be improved sufficiently to strengthen financial ratios and stabilize current liquidity levels," said Mr. Bailey. CONTACT: CONCORDIA BUS NORDIC AB Ragnar Norback, CEO Phone: + 46 701 87 10 40 Per Skargard, CFO Phone: + 46 701 87 10 52 ELECTROLUX AB: To Spin Off Outdoor Operation -------------------------------------------- Peter Nyquist has replaced Asa Stenqvist as Investor Relations vice president for Electrolux AB. Ms. Stenqvist has been appointed as head of Communications for the company's outdoor operation, which will be spun off as a separate entity. Mr. Nyquist reports to Lars Goran Johansson, head of Communications and Branding. Asa Stenqvist will be responsible for Communications and Investor Relations for the new Outdoor company and be part of the management team. She reports to Bengt Andersson, head of Outdoor Products. Ms. Stenqvist has been with Electrolux since 1982. Mr. Nyquist has for the past 10 years been with SCA, an international paper company. His most recent position there was Head of Communications and Investor Relations. * * * After a six-month long investigation, Electrolux AB on Dec. 12 decided to close its appliances factory in Nuremberg, Germany. Production will gradually be moved to Italy and Poland. Closure of the factory is expected to be completed by the end of 2007. "This was one of the most difficult decisions I ever experienced during my time at Electrolux. I am aware that this decision will affect, in a very negative way, many individuals, their families and relatives. However we finally had to conclude that there is no way to bridge the large cost gap that would make production in Nuremberg competitive," says Johan Bygge, head of Electrolux Major Appliances Europe and Asia Pacific. The factory in Nuremberg has approximately 1,750 employees. The closure of the factory will incur a total cost of approximately SEK2.3 billion, which will be taken as a charge against operating income in the fourth quarter of 2005. Electrolux also decided to initiate an investigation about a potential closure of the compact appliances factory in Torsvik, Sweden, which has 190 employees. The restructuring cost for a potential factory closure will be communicated when the investigation is completed. The Electrolux Group is the world's largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chainsaws, lawn mowers, and garden tractors. Every year, customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use sold under famous brands such as AEG, Electrolux, Zanussi, Frigidaire, Eureka and Husqvarna. In 2004, Electrolux had sales of SEK121 billion and 72,000 employees. CONTACT: ELECTROLUX AB Goransgatan Stockholm SE- 105 45 Sweden Phone: +46 8 738 6494 Fax: +46 8 738 7090 E-mail: ir@electrolux.se Web site: http://www.electrolux.com/ Peter Nyquist Phone: +46 70 575 2906 Asa Stenqvist Phone: +46 70 540 3343 SKANDIA INSURANCE: Old Mutual Gets 68.6% Valid Acceptances ---------------------------------------------------------- Old Mutual plc disclosed that acceptances of its Offer have now been validated. The acceptances represent 68.6% of the total number of shares and votes in Skandia Insurance Co. Ltd. on a fully diluted basis. The offer for Skandia has also been extended until Jan. 23 pending receipt of the remaining clearances and approvals. Other acceptances are in the process of calculation and validation and a further announcement shall have been made on Tuesday, Jan. 17. The process of obtaining regulatory approval from financial regulators continues to advance. Approvals have now been received from financial regulators in Sweden and most other jurisdictions. Currently, approval from the U.K. and a small number of other jurisdictions remain outstanding. These approvals are expected to be received shortly and settlement is anticipated to begin by the end of January. Old Mutual has received all relevant anti-trust clearances. All the outstanding terms and conditions of the Offer, including those terms and conditions mentioned in Old Mutual's press release of 20 December 2005, are unchanged and continue to apply during the extended acceptance period. Old Mutual reserves the right, at the end of the extended acceptance period, not to extend the acceptance period any further and to close the Offer for acceptance, notwithstanding the fact that all outstanding clearances and approvals may not have been received at that time. The Offer would then be subject only to the satisfaction of such clearances and approvals. Once the Offer is closed for acceptance, shareholders will no longer be able to tender or withdraw any Skandia shares. Old Mutual reserves the right to extend the Offer beyond Jan. 23, 2006 and/or to defer the date for settlement pending receipt of the remaining clearances and approvals and subject to compliance with applicable laws and regulations. In another statement, Skandia Insurance revealed that under the condition that Old Mutual receives approval in the outstanding regulatory matters, Old Mutual will be Skandia's principal shareholder. Skandia continues to be a listed company that is subject to the rules of the Stockholm Stock Exchange. As previously announced, Skandia shareholders will continue to have the right to withdraw tendered shares during the extension period. Skandia's customer relations will remain unchanged with Old Mutual as the principal owner. CONTACT: SKANDIA INSURANCE COMPANY LTD. Sveavagen 44 S-103 50 Stockholm, Sweden Phone: +46-8-788-1000 Fax: +46-8-788-3080 Web site: http://www.skandia.com/ Bjorn Bjornsson Vice Chairman Phone: +46-8-788 25 00 Jan-Mikael Bexhed General Counsel Phone: +46-8-788 25 00 OLD MUTUAL PLC Investor Relations Andrew Parkins Phone: +44 (0) 20 7002 7264 Media Relations Miranda Bellord Phone: +44 (0) 20 7002 7133 Web site: http://www.oldmutual.com/ ============= U K R A I N E ============= AGROMIR: Donetsk Economic Court Begins Bankruptcy Proceedings ------------------------------------------------------------- The Economic Court of Donetsk region commenced bankruptcy proceedings against Agromir (code EDRPOU 31660150) on Nov. 28, 2005, after finding the private enterprise insolvent. The case is docketed as 27/136 B. Mr. Tkachenko P. (License Number AB 216865) has been appointed liquidator/insolvency manager. CONTACT: AGROMIR Ukraine, Donetsk region, Livoberezhna Str. 62 Mr. Tkachenko P. Liquidator/Insolvency Manager Ukraine, Donetsk region, Livoberezhna Str. 62 ECONOMIC COURT OF DONETSK REGION 83048, Ukraine, Donetsk region, Artema Str. 157 AVTOK: V. Rabushko Serves as Interim Insolvency Manager ------------------------------------------------------- The Economic Court of Zaporizhya region commenced bankruptcy supervision procedure on LLC Avtok (code EDRPOU 24519250). The case is docketed as 25/237. Mr. V. Rabushko has been appointed temporary insolvency manager. The company holds account number 26005130601 or 26061130601 at JSB AvtoZAZbank, Melitopol branch. CONTACT: AVTOK 72319, Ukraine, Zaporizhya region, Melitopol, Kirov Str. 40 Mr. V. Rabushko Temporary Insolvency Manager 72315, Ukraine, Zaporizhya region, Melitopol, Fuchik Str. 11 ECONOMIC COURT OF ZAPORIZHYA REGION 69001, Ukraine, Zaporizhya region, Shaumyana Str. 4 ENERGOSERVICE: Succumbs to Insolvency ------------------------------------- The Economic Court of Odessa region commenced bankruptcy proceedings against Energoservice (code EDRPOU 32217160) on December 1, 2005 after finding the limited liability company insolvent. The case is docketed as 21/254-05-10414. Sergij Gusakov has been appointed liquidator/insolvency manager. (a) ENERGOSERVICE 65013, Ukraine, Odessa region, Chornomorskogo Kozatstva Str. 141 (b) ECONOMIC COURT OF ODESSA REGION 65032, Ukraine, Odessa region, Shevchenko Avenue 4 INTELMED: Under Bankruptcy Supervision -------------------------------------- The Economic Court of Kyiv region has commenced bankruptcy supervision procedure on Intelmed (code EDRPOU 22974300). The case is docketed as 43/873. Svitlana Gritsaj (License Number AA 719865) has been appointed temporary insolvency manager. The company holds account number 2600102000076 at JSCB Pravex-Bank, Kyiv branch, MFO 300487. CONTACT: INTELMED 01000, Ukraine, Kyiv region, Pecherskij Str. Institutska Str. 25 Ms. Svitlana Gritsaj Temporary Insolvency Manager 01030, Ukraine, Kyiv region, a/b 38 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard 44-B KYIVSTAR GSM: Strong Market Performance Prompts S&P's BB- Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit ratings on Ukraine-based mobile telecommunications operator CJSC Kyivstar GSM to 'BB-' from 'B+'. The outlook is stable. At the same time, the long-term senior unsecured debt rating on the company's loan-participation notes issued by Dresdner Bank AG (A/Stable/A-1) was raised to 'BB-' from 'B+'. "The rating action reflects Kyivstar's continued strong market performance," said Standard & Poor's credit analyst Michael O'Brien. "It also reflects growth in subscribers, EBITDA, and operating cash flow generation in excess of earlier expectations." Faster-than-anticipated growth has primarily been driven by accelerated mobile penetration growth in Ukraine, which has been triggered by increased competition. Kyivstar has successfully defended its strong market position, with 13.9 million subscribers at year-end 2005, and maintained solid EBITDA profitability margins of 55.8% for the nine months to Sept. 30, 2005. Significant growth potential in the 52% penetrated Ukrainian market (at Oct. 31, 2005) remains, indicating further cash flow growth potential for mobile operators. Furthermore, although Kyivstar's credit quality is primarily analyzed on a standalone basis, the one-notch upgrade also takes into account the company's 56.52% ownership by Telenor ASA (A- /Negative/A-2). Although there is no financial support from Telenor formally embedded into Kyivstar's current financing, we nevertheless expect Telenor to provide a reasonable degree of support to Kyivstar. We would expect Telenor to take action, if necessary, to maintain the value of its stake in Kyivstar, whose financial performance now represents a material part of Telenor group profits. We also note that some of Telenor's outstanding debt and future potential outstanding debt under its U.S. dollar program includes a cross-default clause related to principal subsidiaries such as Kyivstar. This implies that a default on Kyivstar's obligations could represent a direct risk for Telenor. Overall, these factors imply an important financial support for Kyivstar from its parent company, if required. "Kyivstar is well placed to sustain its current credit quality, due to its solid business position, controlled business strategy, and manageable financial policy with regard to investments and dividend payments to shareholders," added Mr. O'Brien. "The outlook assumes that the political environment and related economic situation in Ukraine will remain relatively stable." We do not expect dividend payments to put a strain on the company's liquidity and debt repayment capacity. Kyivstar will be free cash flow negative in the near term due to the size and pace of its network capacity investments. The financial discipline of the company's management and shareholders, with which Standard & Poor's has been satisfied to date, therefore remains a key rating factor. Any significant and durable deviation from Standard & Poor's expectations in terms of cash flow generation could lead to the outlook being revised to negative, as could any negative financial effects resulting from shareholder disputes or regulatory intervention. Conversely, sustainable positive free cash flow generation over time and an end to shareholder disputes could have a positive effect on the outlook or ratings. CONTACT: CJSC KYIVSTAR GSM Phone: (044) 466 0 466 Web site: http://www.kyivstar.net/ MUNICIPAL TAXI: Declared Insolvent ---------------------------------- The Economic Court of Odessa region commenced bankruptcy proceedings against Municipal Taxi (code EDRPOU 25029559) on December 1, 2005, after finding the limited liability company insolvent. The case is docketed as 21/252-05-10129. Valentina Yegorova has been appointed liquidator/insolvency manager. (a) MUNICIPAL TAXI Ukraine, Odessa region, Bunin Str. 10 (b) ECONOMIC COURT OF ODESSA REGION 65032, Ukraine, Odessa region, Shevchenko Avenue 4 OJSC NAFTOGAZ: Fitch Revises Outlook to Negative ------------------------------------------------ Fitch Ratings has revised the Outlook on OJSC Naftogaz of Ukraine's Long-term local and foreign currency 'BB-' ratings to Negative from Stable. This is to reflect the medium- to-long- term negative credit implications for the company and its US$500 million Eurobond from the recent significant increase in the pricing of natural gas imports from Central Asia, specifically Turkmenistan. Although the recent price increase will be partly mitigated by higher transportation tariffs Naftogaz earns to transport Russian gas across the territory of Ukraine, Fitch did not envisage that the negotiated price increase would affect imports from Turkmenistan. Naftogaz is now to pay US$95 per 1,000 cubic meters (cm) of gas, up from US$50/1,000 cm paid to Gazprom and US$44/1000 cm paid to Turkmenistan in return for US$1.60/1,000cm/100km transportation tariff from Gazprom. At these prices, total cost increases to Naftogaz for Russian gas are approximately US$200 million-250 million, which in Fitch's view are not enough to warrant a change in the company's ratings. Jeffery Woodruff, director in Fitch's Energy team, said, "The problem is, however, that the increased pricing to US$95 per 1,000 cm does not only affect the approximately 25 billion cm of gas Ukraine imports from Russia, but also applies to the approximately 35 billion cm the country imports from Turkmenistan." At the new price of US$95/1,000 cm, Naftogaz's net gas bill (total gas costs less earnings for transportation) for 2006 is expected to rise by nearly US$1.8 billion-2.0 billion. This amount could vary slightly, depending on the degree to which Naftogaz varies the mix between Russian and Central Asia gas, but Fitch bases its analysis using the average price of US$95/1,000 cm on the Russian-Ukrainian border to import 60 billion cubic meters of gas. The Negative Outlook is also affected by the new agreement reached with Gazprom over the terms and conditions of the contract. Under this agreement, Gazprom's transportation tariff through Ukraine is fixed for five years, whereas gas prices for Ukraine could be reviewed every six months. This effectively puts a cap on Naftogaz's ability to recover any additional cost increases from Gazprom and could place downward pressure on the company's ratings. Of additional concern to Fitch is the inability of Naftogaz to pass on these cost increases to industry and utilities in Ukraine's fixed domestic price environment. Politics are also expected to play a significant role in protecting industrial users from sharp price increases that may cause financial problems leading to layoffs and social unrest in an election year. A rating downgrade would likely result from an inability to adequately offset rising costs, resulting in a deterioration of the company's key cash flow and credit metrics. The Outlook could return to Stable if Naftogaz were able to demonstrate an ability to offset rising natural gas costs either through a renegotiation in prices, an increase in transportation tariffs, or an ability to pass on these costs to domestic end users. Additionally, Fitch factors in a degree of state support, as Naftogaz is 100% state-owned and is a vital part of the country's gas transportation infrastructure. Fitch anticipates that some kind of sovereign support could be forthcoming to help offset some of these negative cost implications. CONTACT: OJSC NAFTOGAZ 6-B, Khmelnytski Str. Kyiv 01001 Ukraine Phone: (+ 380 44) 4612333 Fax: (+380 44) 2294579 E-mail: ngu@naftogaz.net Web site: http://www.naftogaz.com/ FITCH RATINGS Jeffrey Woodruff, Moscow Phone: +7-095-956-9986 Andrew Steel, London Phone: +44-207-862-4086 Media Relations Alex Clelland, London Phone: +44 20 7862 4084 Web site: http://www.fitchratings.com/ PROGRES: Dnipropetrovsk Court Opens Bankruptcy Proceedings ---------------------------------------------------------- The Economic Court of Dnipropetrovsk region commenced bankruptcy proceedings against Progres (code EDRPOU 31585979) on Nov. 28, 2005 after finding the private scientific-production enterprise insolvent. The case is docketed as B 29/228/05. Ms. Roza Romashko has been appointed liquidator/insolvency manager. CONTACT: PROGRES 49000, Ukraine, Dnipropetrovsk region, Komsomolska Str. 52/108 Ms. Roza Romashko Liquidator/Insolvency Manager 49000, Ukraine, Dnipropetrovsk region, Moskovska Str. 6/301, 305 Phone: 8 (056) 778-12-49 778-12-46 ECONOMIC COURT OF DNIPROPETROVSK REGION 49600, Ukraine, Dnipropetrovsk region, Kujbishev Str. 1a REPAIR-BUILDING 2: Goes Into Liquidation ---------------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against OJSC Repair-Building Department 2 (code EDRPOU 05456650) after finding the limited liability company insolvent. The case is docketed as 24/442-B. Mr. D. Maltsev (License Number AB 176269 of October 17, 2005) has been appointed liquidator/insolvency manager. The company holds account number 260003911 at JSPPB Aval, MFO 300335. CONTACT: REPAIR-BUILDING DEPARTMENT 2 Ukraine, Kyiv region, Alishera Navoyi Str. 1-a Mr. D. Maltsev Liquidator/Insolvency Manager Ukraine, Kyiv region, Mikilsko-Slobidska Str. 6-a/19 Phone/Fax: (044) 253-55-61 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard 44-B TEHNOPROMBUD: Court Names Roza Romashko Liquidator -------------------------------------------------- The Economic Court of Dnipropetrovsk region commenced bankruptcy proceedings against Private Enterprise Tehnoprombud (code EDRPOU 32410970) on November 29, 2005, after finding the limited liability company insolvent. The case is docketed as B 29/235/05. Ms. Roza Romashko has been appointed liquidator/insolvency manager. (a) TEHNOPROMBUD 50053, Ukraine, Dnipropetrovsk region, Krivij Rig, Pyatihatska Str. 19 (b) Ms. Roza Romashko Liquidator/Insolvency Manager 49000, Ukraine, Dnipropetrovsk region, Moskovska Str. 6/301, 305 Phone: 8 (056) 778-12-49 778-12-46 (c) ECONOMIC COURT OF DNIPROPETROVSK REGION 49600, Ukraine, Dnipropetrovsk region, Kujbishev Str. 1a =========================== U N I T E D K I N G D O M =========================== A H SMITH: Taps Steven Law as Administrator ------------------------------------------- Steven Law (IP No 008727) of Ensors was appointed administrator of A H Smith & Sons Limited (Company No 03943603) on Jan. 6. CONTACT: AH SMITH AND SONS LTD. Unit 10, Hainault Road The Sidings London E11 1HD Phone: 020 8539 0545 ENSORS Cardinal House 46 St Nicholas Street Ipswich, Suffolk IP1 1TT Phone: 01473 220022 Fax: 01473 220033 Web site: http://www.ensors.co.uk/ BAGSHAWS OF MELTON: Winds Up Operations --------------------------------------- Bagshaws of Melton Limited informs that a resolution to wind up the company was passed at an EGM held on Dec. 8, 2005, at Insol House, 39 Station Road, Lutterworth, Leicestershire LE17 4AP. Richard Frank Simms and Martin Richard Buttriss of Insol House were appointed Joint Liquidators. CONTACT: BAGSHAWS OF MELTON LIMITED Gas Showroom Dixons Yard Leicester Road MELTON MOWBRAY Leicestershire, LE13 0DA Phone: 01455 558 052 Web site: http://www.insheds.co.uk/ CANTERBURY FOODS: Hires PricewaterhouseCoopers as Administrator --------------------------------------------------------------- Ian David Green and Stephen Andrew Ellis (IP Nos 1328, 1264) of PricewaterhouseCoopers LLP were appointed joint administrators of Canterbury Foods Group Plc and Canterbury Realisations Limited on Jan. 3. Canterbury Foods Group Plc -- http://www.canterburyfoodsgroup- plc.com/ -- imports, exports and sells meat and meat products, food processing. It also manufactures and markets specialist food products, offers port services, stevedoring, storage and distribution and mechanical handling. Canterbury Realisations Limited registered is engaged in processing and selling quality meat-based products. CONTACT: CANTERBURY FOODS GROUP PLC Liverpool Street Hull HU3 4HW Phone: 01482 326234 Fax: 01482 210375 PRICEWATERHOUSECOOPERS LLP Benson House 33 Wellington Street Leeds LS1 4JP Phone: [44] (113) 289 4000 Fax: [44] (113) 289 4460 Web site: http://www.pwcglobal.com/ CARDOK LTD: Taps S. Girling & M. Roach as Joint Liquidators ----------------------------------------------------------- K. Webb, chairman of CARDOK LTD, informs that resolutions to wind up the company were passed at an EGM held on Dec. 15, 2005, at BDO Stoy Hayward LLP, in One Victoria Street, Bristol BS1 6AA. Simon Girling and Mark Roach, of BDO Stoy Hayward LLP, were appointed Joint Liquidators. CONTACT: CARDOK LTD 2 All Saints Court Bristol, Avon BS1 1JN Phone: 0117-925 0088 COSTAIN GROUP: Consortium Wins GBP400 Million BSF Contract ---------------------------------------------------------- Costain Group plc, as part of the Integrated Bradford consortium, has been selected by Bradford Council to deliver its Building Schools for the Future (BSF) program. The partnership with Bradford Council calls for the delivery of 21st-century learning environments to the city of Bradford. The partnership is worth approximately GBP400 million to the consortium over a 30-year period. The first phase of the project will deliver three fully operational new schools by 2008, with a second phase creating further new schools that integrate special needs facilities with mainstream secondary education. The construction services will be delivered by Costain in joint venture with Ferrovial Agroman. Following the construction phases of the contract, the consortium will take responsibility for the facilities management of the schools, incorporating services from caretaking through to cleaning, ground maintenance and security. Once negotiations are complete, the Council, together with the Integrated Bradford consortium and Partnerships for Schools, the Government's Non-Departmental Public Body established to deliver the BSF program, will form and jointly own a Local Education Partnership, which will plan and implement the Council's education transformation program. "This program will generate significant improvements in the opportunities for young people in Bradford as well as providing modern education facilities that will benefit the wider community," Alistair Handford, Costain PFI director, said. Andrew Wyllie, Costain chief executive, said, "We are delighted to be Preferred Bidder on this prestigious contract. Bradford is only the second Local Authority in the UK to appoint a BSF private sector partner, and following our contract wins towards the end of last year in Ealing and Kent is a testament to our growing presence in both the education and PFI sectors." BSF is the Government's biggest investment in education for half a century, intended to promote a new approach to the design, construction and operation of secondary schools. During the next 10-15 years, the program will renew and rebuild all the secondary schools in England, creating learning facilities that exploit information and communications technology, supported by operational services that allow teachers to focus on teaching. About the Company Costain collapsed under heavy debt in the mid-1990s after venturing into U.S. mining. It is still trying to recover with its first dividend in years expected this year or next. Its core U.K. business reported a GBP10.5 million profit last year after plunging into a EUR5 million loss in 2000. The company has moved into asset management of water utilities from civil engineering. In May, the special resolution approving the reduction of share capital and cancellation of share premium account in the company was approved by the Companies Court and registered at Companies House. CONTACT: COSTAIN GROUP PLC Costain House, Nicholsons Walk Maidenhead SL6 1LN, United Kingdom Phone: +44-1628-842-444 Fax: +44-1628-674-477 Web site: http://www.costain.com/ Stuart Doughty, Chief Executive Charles McCole, Finance Director Graham Read, Public Relations Phone: 01628 842 444 EASYNET GROUP: Names Two New Executive Directors ------------------------------------------------ The Board of Directors for Easynet Group plc disclosed the resignation of Thomas Keith Todd, Anthony Lindsay Caplin, David John Fletcher and Philip Roy Mullan as directors, effective Jan. 13, 2006. Easynet has appointed James Murdoch and Jeremy Darroch as executive directors, effective Jan. 13, 2006. In connection with those appointments, there are no details that are required to be disclosed by paragraphs 9.6.11 or 9.6.13 of the Listing Rules of the U.K. Listing Authority, save that James Murdoch and Jeremy Darroch are currently directors of British Sky Broadcasting Group plc and, in addition, within the last five years Jeremy Darroch has been, but is no longer, a director of DSG International plc (formerly Dixons Group plc). The Board changes are made as a result of the recent takeover bid by Sky Broadband Services Limited, a wholly owned subsidiary of British Sky Broadcasting Group plc, for Easynet. The Offer was declared unconditional in all respects on Jan. 6, 2006. * * * Sky Takeover Bid Following the announcement on 6 January 2006 that the Offer had been declared unconditional in all respects, Sky Broadband Services Limited (Offeror), a unit of British Sky Broadcasting Group plc, has acquired or received valid acceptances under the Offer in respect of a total of 115,582,867 Easynet Group plc Shares. The shares represent approximately 96% of the existing issued share capital of Easynet. On 21 October 2005, Lazard & Co., Limited and Morgan Stanley & Co. Limited made a recommended cash offer on behalf of Sky Broadband Services Limited entire issued and to be issued share capital of Easynet. On 19 December 2005, the Offer was declared unconditional as to acceptances. On 30 December 2005, the Office of Fair Trading announced its decision not to refer the Offer to the Competition Commission. CONTACT: EASYNET GROUP PLC 44-46 Whitfield St. London W1P 5RF, United Kingdom Phone: +44-20-7900-4700 Fax: +44-20-7900-4701 Web site: http://www.easynet.com/ BRITISH SKY BROADCASTING GROUP PLC Grant Way, Isleworth London TW7 5QD United Kingdom Phone: +44-20-7705-3000 Fax: +44-20-7705-3453 Web site: http://www.sky.com/ LAZARD & CO., LIMITED Joint Financial Adviser to BSkyB Trevor Nash Peter Warner Sarah Carter Phone: +44 (0) 20 7187 2000 MORGAN STANLEY & CO. LIMITED Joint Financial Adviser to BSkyB Scott Matlock Daniel Bailey Hugo Baring Phone: +44 (0) 20 7425 5000 DEUTSCHE BANK AG LONDON Joint Corporate Broker to BSkyB Charlie Foreman Bill Frith Phone: +44 (0) 20 7545 8000 GOLDMAN SACHS INTERNATIONAL Joint Corporate Broker to BSkyB Matthew Westerman Neil Chugani Phone: +44 (0) 20 7774 1000 ABN AMRO CORPORATE FINANCE LIMITED Financial Adviser to Easynet Tom Willett Phone: +44 (0) 20 7678 8000 HOARE GOVETT LIMITED Corporate Broker to Easynet Ranald McGregor Smith Lee Morton Phone: +44 (0) 20 7678 8000 Hudson Sandler Andrew Hayes Sandrine Gallien Wendy Baker Phone: +44 (0) 20 7796 4133 EMPIRE TEMPORARY: Names Milner Boardman & Partners Administrator ---------------------------------------------------------------- Colin Burke and Gary J. Corbett (IP Nos 8803, 9018) of Milner Boardman & Partners were appointed joint administrators of Empire Temporary Staff Limited (Company No 03798710) on Jan. 6. Its registered office is at Minerva House, 5 Chorley New Road, Bolton BL1 1BN. Empire Temporary Staff Ltd -- http://www.empiretemps.com/10.html -- specializes in the recruitment of permanent and temporary staff. They supply industrial and engineering staff to companies in the North West for well over 10 years. CONTACT: EMPIRE TEMPORARY STAFF LIMITED 601 Bury Road Breightmet Bolton BL2 6HZ Phone: 01204 525263 Fax: 01204 373563 MILNER BOARDMAN & PARTNERS Century House, Ashley Road, Hale, Cheshire WA15 9TG Phone: 0161 927 7788 Fax: 0161 927 7733 E-mail: info@milnerb.co.uk Web site: http://www.milnerboardman.co.uk/ ENERGY SOLUTIONS: Names David Hughes as Liquidator -------------------------------------------------- R. Clark, chairman of Energy Solutions (Lighting) Ltd disclosed that a resolution to wind up the company was passed at an EGM held on Dec. 16, 2005, at Owen House, in Trinity Lane, Cheltenham, Gloucestershire GL52 2NT. David Hughes is appointed as Liquidator to wind up the company's business. CONTACT: ENERGY SOLUTIONS LIGHTING LTD The Old Off Licence Pershore, Worcestershire WR10 2EE Phone: 01905 841978 Fax: 01905 841672 E-mail: marketing@universallighting.co.uk Web site: http://www.universallighting.co.uk/ FOCUS DIY: S&P Cuts GBP285-Mil Long-Term Debt Rating to B --------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on Focus DIY (Finance) PLC and Focus DIY (Investments) Ltd., the parent companies of U.K.-based home- improvement retailer Focus, to 'B-' from 'B'. The outlook is negative. Standard & Poor's also lowered its long-term debt rating on Focus DIY (Investments) Ltd.'s GBP285 million ($504 million) senior secured bank loan to 'B' from 'B+'-- which is one notch above the corporate credit rating -- with a recovery rating of '1', indicating our expectation of full recovery of principal for senior lenders in the event of a payment default. Both the recovery rating and secured debt rating remain under pressure, however--a situation that would be exacerbated by further weak trading performance. In addition, the long-term debt rating on Focus DIY (Finance) PLC's GBP100 million second-lien mezzanine senior subordinated notes was lowered to 'CCC' from 'CCC+'. At the same time, all ratings were removed from CreditWatch with negative implications, where they had been placed on Sept. 16, 2005, in anticipation of significant operating underperformance, and in view of concerns over compliance with financial covenants under the senior secured facilities. All ratings remain subject to the successful finalization of financial covenant changes with senior lenders, and the satisfactory review, by Standard & Poor's, of any revised documentation. "We expect Focus' leverage to remain significant over the medium term, owing to a substantial decline in sales and earnings in financial 2005, and the likelihood of a difficult U.K. home- improvement market over the next 12 months," said Standard & Poor's credit analyst Sunita Kara. Net debt (adjusted for operating leases) to EBITDAR is likely to continuously exceed 6.0x over the medium term, owing to reduced profits from home-improvement trading. Furthermore, intense competition, driven by significant promotional activity by the larger home-improvement retailers--which are substantially better financially resourced than Focus--is likely to continue, placing further pressure on the group's profitability. Focus' financial profile and liquidity position remain vulnerable to any negative industry developments. The ratings on Focus continue to reflect the group's very high leverage, and its reliance on the decorative segment of the DIY market, which is more competitive and exposed to retail consumption trends than the building trade segment. These factors are partly offset by the positive long-term fundamentals of the U.K. home-improvement market. "In view of the group's reduced earnings base and high operational gearing, a moderately adverse swing in trading could impair its liquidity position, putting pressure on the ratings," said Ms. Kara. "An outlook revision to stable is highly unlikely in the short term." CONTACT: FOCUS DIY Gawsworth House, Westmere Drive, Crewe, Cheshire, CW1 6XB Phone: 01270 501555 GLENROSE PROPERTY: Creditors Meeting Set Next Week -------------------------------------------------- Creditors of Glenrose Property Services Limited will meet on January 23, 2006, 12 noon at The Old Town Hall, 29 The Broadway, Stratford, London E15 4BQ. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to J. P. Bradney, joint administrator of Berg Kaprow Lewis LLP, 35 Ballards Lane, London N3 1XW not later than 12 noon, Jan. 20, 2006. CONTACT: BERG KAPROW LEWIS LLP 35 Ballards Lane, London N3 1XW Phone: 020 8922 9222 Fax: 020 8922 9223 Enquiry Line: 020 8922 9121 GUY KREMER: Paul Williams & Jason Godefroy to Administer Assets --------------------------------------------------------------- Paul Williams and Jason Godefroy (IP Nos 9294, 9097) of Menzies Corporate Restructuring were appointed administrators of Guy Kremer Haircare Products Ltd (Company No 05098693) on Jan. 4. Guy Kremer Haircare Products Ltd -- http://www.guykremer.com/-- sells perfume and cosmetics. CONTACT: GUY KREMER SALON Stonemasons Court 67 Parchment St. Winchester, Hampshire SO23 8AT Phone: +44 (0) 1962 863 827 Fax: +44 (0) 1962 854 835 MENZIES CORPORATE RESTRUCTURING 43/45 Portman Square London W1H 6LY Phone: 020 7487 7240 HEALTH CLUB: Administrators Enter Firm -------------------------------------- Richard Frank Simms and Martin Richard Buttriss (IP Nos 9252, 9291) of F A Simms & Partners Plc were appointed joint administrators of The Health Club (Walthamstow) Limited (Company No 5020503) on Dec. 23. Its registered office is at 135 Wadham Road, Walthamstow, London E17 4HR. CONTACT: F A SIMMS & PARTNERS PLC Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP Phone: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com INEOS GROUP: S&P Rates Proposed EUR3.1 Bln Notes at B- ------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B-' long-term debt rating and '5' recovery rating to the proposed equivalent EUR3.1 billion fixed- and floating-rate subordinated notes issued by Ineos Group Holdings PLC (B+/Stable/--), the parent of Ineos Holdings Ltd. (B+/Stable/--), the U.K.-based chemicals group. The '5' recovery rating on the proposed notes indicates our expectation of negligible recovery of principal (0%-20%) for noteholders in the event of a payment default. The notes are rated 'B-', two notches below the 'B+' corporate credit rating on Ineos, because noteholders benefit from a second-priority security package that is significantly weaker than that of the senior secured debtholders. The facilities are being arranged to refinance a high-yield bridge loan put in place as part of Ineos' acquisition of Innovene from BP PLC (AA+/Stable/A-1+). The ratings on the Ineos group reflect its aggressive financial policy, marked by substantial debt-funded external growth and resulting weak cash flow coverage; cyclical markets; and free operating cash flow that is vulnerable to potentially higher capital expenditures, higher restructuring costs, or lower savings than anticipated in the business plan for Innovene. These factors are partially offset by fair diversification, the group's management's track record in acquiring and boosting assets, and positive cycle prospects for the next few years. Recovery Analysis With the proposed note issues, Ineos' debt facilities are expected to comprise: * Senior secured loans including: (a) Tranche A (EUR1.57 billion, amortizing and maturing in seven years); (b) Tranche B (EUR1.60 billion, bullet maturing in eight years); (c) Tranche C (EUR1.60 billion, bullet maturing in nine years); (d) Borrowing base facility (EUR1.3 billion, bullet maturing in seven years); and (e) Revolving credit facility (EUR0.7 billion, bullet maturing in seven years). * Subordinated debt including: -- EUR3.1 billion equivalent fixed- and floating-rate notes ranking pari passu with each other. When estimating recoveries, Standard & Poor's simulates a default scenario. "We used an enterprise valuation approach as we believe the group, with its fair business profile, would most likely default as a result of its high leverage, and lenders would achieve greater value through reorganization than through a liquidation of assets. Standard & Poor's simulated default scenario assumed a potential combination of these factors: (a) Increased stress on the length and depth of the various down-cycles and recovery period forecast by management, particularly in the petrochemicals businesses, a key profit driver for the group; (b) Incremental raw-material cost increases; (c) Reductions in the amount and timeliness of the business plan cost savings, although some credit has been given for Ineos' track record in cost cutting. The cost savings are key to offsetting expected falls in profitability as the pricing cycle turns; and (d) Increases in interest margins and cost of funding (taking into account expected hedging of 50% of the senior secured debt) needed to secure waivers or amendments. In addition, S&P made the following assumptions: (a) The revolving facility is assumed to be fully drawn at the point of default; (b) The borrowing base facility is assumed to have been prepaid and converted into an accounts receivable securitization; and (c) Outstanding senior pari passu liabilities are expected to be at the maximum level permitted under the financing documentation. Under its simulated scenario and using primarily a discounted cash flow valuation analysis, a payment default is unlikely to occur before 2009. For the senior secured debtholders, taking into account other material pari passu senior obligations and prior-ranking liabilities, Standard & Poor's anticipates recovery in the 80%- 100% range, indicating substantial recovery of principal and resulting in a recovery rating of '2'. Using the same valuation approach, this leaves negligible coverage available for noteholders. Additionally, with a security package that is significantly more limited in scope than that available to the senior debtholders and limited to second-priority ranking, Standard & Poor's expects marginal prospects for recovery for noteholders in the 0%-20% range leading to a recovery rating of '5'. Both recovery ranges take into consideration the potential for cross-jurisdictional issues that may affect ultimate recoveries and the inherent volatility in some of the group's operations. The full report, titled "Recovery Analysis: Ineos Holdings Ltd. EUR6.77 billion Senior Secured Bank Financing And Ineos Group Holdings PLC Proposed EUR3.1 billion Fixed- And Floating- Rate Notes," will be available on Jan. 17, 2006, on RatingsDirect, Standard & Poor's Web-based credit analysis system. This is a new style of report that examines the recovery prospects of the transaction. We will be publishing "Recovery Analysis" reports in the future for other prominent transactions. CONTACT: INEOS GROUP Richard Longden Phone: 0238 0287081 Web site: http://www.ineos.com/ KAYBE (CONVEYORS): Voluntarily Winds Up Operations -------------------------------------------------- D Cockayne, director of Kaybe (Conveyors) Limited, disclosed that resolutions to wind up the company were passed at an EGM held on Nov. 30, 2005, at 43 Amber Close, Tamworth Business Park, Tamworth, Staffordshire. C H I Moore is appointed as Liquidator to wind up the company's operations. CONTACT: KAYBE (CONVEYORS) LTD Amber Close Unit 46 Amber Close Tamworth B77 4RP UNITED KINGDOM Phone: +44 1827-76-15-82 Fax: +44 1827-31-06-39 LADIES HEALTH: Meeting of Creditors Set for Friday -------------------------------------------------- Creditors of Ladies Health & Fitness Club Limited will meet on Friday, Jan. 20, 2006, 11 a.m. at Smith & Williamson Limited, 25 Moorgate, London EC2R 6AY. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to I. J. Allan and H. A. Shinners, joint administrative receivers of Smith & Williamson Limited, 25 Moorgate, London EC2R 6AY not later than 12:00 noon, January 19, 2006. CONTACT: SMITH & WILLIAMSON 25 Moorgate London EC2R 6AY Inner London Phone: 020 7637 5377 Fax: 020 7631 0741 E-mail: henry.shinners@smith.williamson.co.uk LEVACOM LIMITED: D L Evans Leads Liquidation Efforts ---------------------------------------------------- Members of Levacom Limited passed a resolution to wind up the company during an EGM on Dec. 14, 2005, at Risborough House, 38- 40 Sycamore Road, Amersham, Buckinghamshire HP6 5DZ. D L Evans, Levacom's chairman, disclosed that the company cannot continue its business due to its liabilities. Stephen Paul Grant, of Wilkins Kennedy, is appointed Liquidator. Levacom Limited makes standard and customized monopoles, lattice towers, camouflage/stealth solutions and other site infrastructure products for telecommunications, cellular, microwave, military, radar and broadcast use. CONTACT: LEVACOM LIMITED Old Bank House 39 High Street High Wycombe Buckinghamshire HP11 2AG Tel: 01494 513 999 Fax: 01494 440 600 info@levacom.com http://www.levacom.com/ LUCKY LIZARD: Creditors Approved S Franklin as Liquidator --------------------------------------------------------- A. McMillan, chairman of Lucky Lizard Limited, disclosed that a resolution to wind up the company was passed at an EGM held on Dec. 13, 2005, at Albany House in 18 Theydon Road, London E5 9NZ. S Franklin, of Panos Eliades, Franklin & Co., is appointed Liquidator. Creditors confirmed the appointment at a meeting held on the same day. Lucky Lizard Limited offers project management and budget reports for playgrounds. CONTACT: Lucky Lizard Limited Attn: Allesandro Mc Millan Broadley House 48 Broadley terrace London NW1 6LG Tel: 020 7258 0324 Fax: 020 7724 2361 E-mail: al@luckylizard.co.uk Web site: http://www.luckylizard.co.uk/ M L BUCKS: Claims Filing Period Ends Feb. 11 -------------------------------------------- M. E. D. Sheppard, chairman of M L Bucks Limited, informs that the special resolution to wind up the company was passed at an EGM held on Jan. 3 at Gossoms End, Berkhamsted, Hertfordshire HP4 1HU. Anthony David Kent of Maidment Judd, 60-62 High Street, Harpenden, Hertfordshire AL5 2SP was appointed liquidator. Creditors are required on or before February 11, 2006, to send in their full forenames and surnames, addresses and descriptions, full particulars of debts or claims, and the names and addresses of Solicitors (if any), to Anthony David Kent. CONTACT: MAIDMENT JUDD 60/62 High Street Harpenden Hertfordshire AL5 2SP Phone: 01582 469700 Fax: 01582 460674 E-mail: akent@maidmentjudd.co.uk MOLYNEUX ENGINEERING: Creditors Confirm Liquidation Proceeding -------------------------------------------------------------- R J Molyneux, chairman of Molyneux Engineering Limited, disclosed that a resolution to wind up the company was passed at an EGM held on Dec. 13, 2005, at 93 Queen Street, Sheffield S1 1WF. Allan Cooper and John Russell, of The P&A Partnership, were appointed Liquidators. Creditors confirmed the liquidation and appointment during the meeting of creditors held subsequently. CONTACT: MOLYNEUX ENGINEERING LTD Darley Dale Molyneux Business Park Whitworth Road, Matlock DE4 2HJ UNITED KINGDOM Tel: +44 (1629) 73-48-23 Fax: +44 (1629) 73-48-22 NATIONAL AUSTRALIA: Agrees to Transfer U.K. Management Business --------------------------------------------------------------- National Australia Bank reached an agreement to transfer the management of its U.K. Clydesdale and Yorkshire Bank Discretionary Investment Management portfolios to Tilney Investment Management. The Clydesdale and Yorkshire Bank Discretionary Investment Management operation has over 1500 customer portfolios with an approximate value of funds under management of GBP300 million. Tilney is one of the largest independent wealth managers in the U.K., with over 12,000 clients and assets under management in excess of GBP5 billion. The sale is expected to be completed prior to June 2006. Terms of transaction are commercial in confidence but are not material to NAB. CONTACT: NATIONAL AUSTRALIA BANK LTD. Level 24, 500 Bourke Street, Melbourne, Victoria, Australia, 3000 Phone (head office): (03) 8641-4160 Fax (head office): (03) 8641-4927 Web site: http://www.national.com/ NEARTONE LIMITED: Winds Up Operations ------------------------------------- A. Baguley, chairman of Neartone Limited, disclosed that a resolution to wind up the company was passed at an EGM held on Dec. 16, 2005, at Gateway Hotel in Nottingham NG8 6AZ. S Franklin, of Panos Eliades, Franklin & Co., is appointed Liquidator. Creditors confirmed the appointment at a meeting held on the same day. CONTACT: NEARTONE LTD Arnold 16 Catton Rd. Nottingham NG5 7JD UNITED KINGDOM Tel: +44 (115) 967-03-17 Fax: +44 (115) 967-03-79 ONEGARDEN LIMITED: Appoints Houghton Stone as Administrator ----------------------------------------------------------- Simon Thornton (IP No 9031) of Houghton Stone Business Recovery was appointed joint administrators of Onegarden Limited (Company No 04314384) on Jan. 4. The company operates a garden center. CONTACT: HOUGHTON STONE BUSINESS RECOVERY The Conifers, Filton Road, Hambrook, Bristol BS16 1QG Phone: 0117 957 9009 PES GROUP: Meeting of Creditors Set Next Week --------------------------------------------- Creditors of Pes Group Limited (Company No 002692496) will meet on January 25, 2006, 11:30 a.m. at Bourne Hall, Spring Street, Ewell, Surrey KT17 1UF. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to G P Petersen and J P Vahey, joint administrators of Benedict Mackenzie LLP, 5-6 The Courtyard, East Park, Crawley, West Sussex RH10 6AG not later than 12:00 noon, on Jan. 24, 2006. Park Electrical Services -- http://www.pes-group.co.uk/-- specializes in industrial electrical components. CONTACT: PARK ELECTRICAL SERVICES 3 Hertford House, Farm Close, Shenley, Herts, WD7 9AB Phone: (01923) 853434 Fax: (01923) 289888 E-mail: kevin.mcdermot@pes-group.co.uk BENEDICT MACKENZIE 5-6 The Courtyard East Park Crawley West Sussex RH10 6AG Phone: 01293 410333 Fax: 01293 428530 E-mail: m.fillmore@benemack.com RANK GROUP: Shareholders Okay Deluxe Film Disposal -------------------------------------------------- Rank Group plc has revealed that the resolution to approve the proposed disposal of Deluxe Film to DX III Holdings Corporation, a wholly owned indirect subsidiary of MacAndrews & Forbes Holdings Inc., and the associated increase in the permitted borrowing powers was passed by the Company's shareholders at the EGM held Monday. The Disposal is still conditional, among other things, upon obtaining clearance from Spanish anti-trust authorities and is expected to complete on 27 January 2006. A copy of the resolution passed at the Company's EGM has been submitted to the U.K. Listing Authority and will shortly be available for inspection at the U.K. Listing Authority's Document Viewing Facility, which is situated at the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS (Phone: 020 7676 1000), during normal business hours on any weekday (public holidays excepted). The resolution proposed at the Company's EGM was carried on a show of hands. The proxy figures for the resolutions will shortly be displayed on the Company's corporate Web site at http://www.rank.com/ * * * S&P placed in October its 'BBB-' long-term and 'A-3' short-term corporate credit ratings on Rank Group PLC on CreditWatch with negative implications. It cited the planned sale of Deluxe Film, a decision made after Rank reported weak first-half 2005 results. The sale, according to S&P, increases the probability of a more aggressive financial profile for Rank. "Rank needs to show stable profitability to maintain its current ratings. The company would also be expected to apply a large proportion of sale proceeds from Deluxe to debt reduction, in order to meet the financial targets and thereby retain its current investment-grade status," S&P's Olli Rouhiainen said. He hinted of a downgrade, which will likely be more than one notch. CONTACT: THE RANK GROUP PLC Investor Relations 6 Connaught Place London W2 2EZ Phone: +44 (0) 20 7706 1111 Fax: +44 (0) 20 7706 1092 Web site: http://www.rank.com SAMUEL BEN: In Administrative Receivership ------------------------------------------ Regency Factors Plc appointed Gary Corbett and Colin Burke (Office Holder Nos 9018 and 8803) of Milner Boardman & Partners joint administrative receivers of Samuel Ben David Limited (Reg No 02715151) on Jan. 3. The company was formerly named Vitalpost Limited. CONTACT: SAMUEL BEN DAVID LTD. 13 Broughton Lane, Manchester, Lancashire M8 9TY Phone: 01618347940 MILNER BOARDMAN & PARTNERS Century House, Ashley Road, Hale, Cheshire WA15 9TG Phone: 0161 927 7788 Fax: 0161 927 7733 E-mail: info@milnerb.co.uk Web site: http://www.milnerboardman.co.uk/ SKYEPHARMA PLC: UBS Unveils 4.05% Equity Stake ---------------------------------------------- In accordance with the Companies Act 1985 (as amended) the Company was informed on 13 January 2006 that UBS AG and its subsidiaries (UBS) held a notifiable interest in 30,544,717 ordinary shares of 10 pence each, representing 4.05% of the issued share capital of the Company. * * * On 17 November 2005 the Board of SkyePharma disclosed that following an unsolicited approach from a third party the Board had decided to review all of its strategic options, including, inter alia, offers for the Company as a whole. On Dec. 8, SkyePharma also disclosed that the Company had received a number of expressions of interest, both with respect to individual assets owned by the Company as well as potential cash offers for the Company as a whole. In the light of such interest, the Board decided to allow a number of parties access to a data room to commence due diligence on the Company. The Board of SkyePharma continues to seek potential offers for the Company as a whole, but it is not clear at this stage that an offer for the Company, whether in cash or otherwise, which is capable of recommendation, will be forthcoming. In addition, a number of parties remain interested in potentially acquiring individual assets owned by the Company. About the Company SkyePharma plc, headquartered in London, develops pharmaceutical products benefiting from world leading drug delivery technologies that provide easier-to-use and more effective drug formulations. In May, it reported net loss of GBP24.3 million for 2004, a decrease of 44% compared with GBP43.2 million in 2003. In September, the Board of SkyePharma proposed to raise approximately GBP35 million (net of expenses) by means of a 1 for 5 Rights Issue of 125,627,357 New Ordinary Shares at 30 pence per share to Qualifying Shareholders. CONTACT: SKYEPHARMA PLC 105 Piccadilly London United Kingdom W1J 7NJ Phone: +44 20 7491 1777 Fax: +44 20 7491 3338 Web site: http://www.skyepharma.com/ UBS AG Bahnhofstrasse 45 CH-8098 Zurich Switzerland Phone: +41-44-234-4111 Fax: +41-44-234-3415 Web site: http://www.ubs.com/ SPECTRUM ARCHITECTURAL: Hires Administrator from Hazlewoods ----------------------------------------------------------- Philip John Gorman (IP No 8069) of Hazlewoods LLP was appointed administrator of Spectrum Architectural Coatings Ltd (Company No 03138470) on Jan. 4. Its registered office is at Qualtronyc Business Park, High Street, Princes End, Tipton, West Midlands DY4 9HG. CONTACT: HAZLEWOODS Windsor House, Barnett Way, Barnwood, Gloucester GL4 3RT Phone: +44 (0) 1452 634800 Fax: +44 (0) 1452 371900 Web site: http://www.hazlewoods.co.uk/ STADIUM SEATING: Names Administrator from Smith & Williamson ------------------------------------------------------------ Neil Francis Hickling (IP No 5449) of Smith & Williamson Limited was appointed administrator of Stadium Seating Limited (Company No 03472990) on Jan. 6. The company supplies stadium seats. CONTACT: SMITH & WILLIAMSON 1 St Swithin Street Worcester Worcestershire WR1 2PY Phone: 01905 730100 Fax: 01905 723502 E-mail: nfh@smith.williamson.co.uk THINKINGCAP TECHNOLOGY: Hires Liquidator from Tomlinsons -------------------------------------------------------- C. Cussons, chairman of Thinkingcap Technology Limited, informs that the special and ordinary resolution to wind up the company were passed at an EGM held on Dec. 20 at 100 The London Fruit & Wool Exchange, Third Floor, Brushfield Street, London E1 6EX. Alan H. Tomlinson of Tomlinsons, St John's Court, 72 Gartside Street, Manchester M3 3EL was appointed liquidator. Creditors are required on or before February 28, 2006, to send in their full forenames and surnames, addresses and descriptions, full particulars of debts or claims, and the names and addresses of Solicitors (if any) to Alan H. Tomlinson. CONTACT: TOMLINSONS St John's Court, 72 Gartside Street, Manchester M3 3EL Phone: 0870 60 70 170 Fax: 0870 60 70 180 E-mail: advice@tomlinsons.co.uk Web site: http://www.tomlinsons.co.uk YZMA 001: Taps Mitchell Charlesworth as Joint Administrator ----------------------------------------------------------- Jeremy Paul Oddie and Geoffrey Michael Weisgard (IP Nos 008918, 002781) of Mitchell Charlesworth were appointed joint administrators of YZMA 001 Limited (Company No 03304602) on Dec. 23. Its trading address is at McDonald House, Cobden Street, Salford M6 6NA. The company is previously named McDonald's Doors Limited. CONTACT: MITCHELL CHARLESWORTH 6th Floor Brazennose House West Brazennose Street Manchester M2 5FE Phone: 0161 817 6100 Fax: 0161 817 6102 E-mails: Jeremy.Oddie@mitchellcharlesworth.co.uk geoff.weisgard@mitchellcharlesworth.co.uk ********* 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 Laureno, Liv Arcipe, Julybien Atadero and Jay Malaga, Editors. Copyright 2006. 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. 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