/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060504.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, May 04, 2006, Vol. 7, No. 88 Headlines A U S T R I A BAWAG PSK: Settles with Refco Creditors & Obtains Fresh Capital F R A N C E BELLON SA: S&P Withdraws BB Corporate Credit Rating G E R M A N Y ALBRECHT BAU: Creditors' Meeting Slated for June 6 ALU-BILLETS: Claims Registration Ends May 5 AUTOHAUS SCHATTLING: Creditors' Meeting Slated for June 1 B & B IMMOBILIEN: Claims Registration Ends May 5 BAUSTIL GMBH: Claims Registration Ends May 6 ELBE-TEAM: Claims Registration Ends May 9 MEINZER GMBH: Claims Registration Ends May 9 NOVA WAVE: Creditors' Meeting Slated for May 8 PEKA-THERM: Creditors' Meeting Slated for May 22 THOMAS TACKMANN: Claims Registration Ends May 5 H U N G A R Y BORSODCHEM RT: Earns HUF14.4 Billion in 2005 BORSODCHEM RT: Eyes EUR500 Mln European Expansion I R E L A N D EUROFOOD: Irish Court Gets Jurisdiction on Insolvency Case I T A L Y ALITALIA SPA: Air One Files Appeal Over Volare Merger LOTTOMATICA SPA: Moody's Rates New EUR750 Mln Notes at (P)Ba3 LOTTOMATICA SPA: S&P Rates 60-Year Deferrable Bond at BB+ PARMALAT: Ireland Gets Jurisdiction on Eurofood Insolvency Case VOLARE SPA: Air One Files Appeal Over Alitalia Takeover K A Z A K H S T A N ABN TRADE: Court Sets May 12 Claims Bar Date AVIEK: Creditors Must File Claims by June 13 ENERGOPROM: Creditors' Claims Due May 12 JAS: Creditors Must File Claims by May 12 KENDIK: Proofs of Claims Deadline Slated for May 12 NOTTENGEM: Claims Registration Ends May 12 REM: Court Sets May 12 Claims Bar Date SNABSERVICE-T: Court Sets May 12 Claims Bar Date STROILUKSSERVICE: Creditors Must File Claims by May 12 TRANZIT-LIMITED: Proofs of Claims Deadline Slated for May 12 N E T H E R L A N D S AURELIA ENERGY: S&P Lowers US$335 Million Debt Rating to B- GETRONICS N.V.: Reveals ICT Security Study in the U.S. R U S S I A ALEUSSKOYE: Bankruptcy Hearing Slated for July 26 AMURSKIY TRANSPORT: Appoints Interim Insolvency Manager CENTERTELECOM: Annual Shareholders' Meeting Slated for June 28 EASTERN GEOPHYSICAL: Bankruptcy Supervision Procedure Begins KEMEROVO-MOSCOW: Deadline for Proofs of Claim Slated for May 11 KULUNDINSKOYE: Creditors Have Until May 11 to File Claims NEW WORLD: Claims Filing Period Ends May 11 OAO GAZPROM: Management Panel Approves 2006 Budget Changes RAPSOD TRADE: S&P Assigns B- Rating on Proposed $150-Mln Notes REGION-CONTRACT: Moscow Court Commences Bankruptcy Proceedings STROY-COM: Deadline for Proofs of Claim Set May 11 URAL-CHER-MET: Perm Court Begins Bankruptcy Proceedings ZNAMENSKIY MARGARINE: Undergoes Bankruptcy Supervision Procedure T U R K E Y COCA-COLA ICECEK: Fitch Keeps Foreign Currency Ratings at BB- ULKER GIDA: Moody's Assigns B1 Corporate Family Rating U K R A I N E DNIPRO-SPORT-EXPRESS: Court Names V. Oksana Insolvency Manager ELEGANT-FARM: Kyiv Court Starts Bankruptcy Supervision IMPERANT: Kyiv Court Opens Bankruptcy Proceedings KOLOS SOF: Court Names Dmitro Selevko Interim Insolvency Manager RADUN: Kyiv Court Names Mr. E. Kondra Liquidator SEK-TE: Court Names Volodimir Glyadchenko as Insolvency Manager SHUMSKIJ AGROBUD: Court Names Vasil Taras Liquidator UKRTRANSMASH: Kyiv Court Opens Bankruptcy Proceedings U N I T E D K I N G D O M ALCHEMY ANIMEDIC: Hires Administrator from Houghton Stone ATLANTIC DISTRIBUTIONS: Appoints Armstrong Watson Administrator CARD CRAZY: Taps Cowgill Holloway to Administer Assets DALES QUALITY: Appoints Kroll Limited Administrator GLOBAL AVIATION: Creditors Resolve to Liquidate Company's Assets HMV GROUP: Founder Drops GBP280-Mln Bid to Buy Back Waterstone's INHURST LIMITED: Hires Joint Administrators from S. F. Plant INMARSAT FINANCE: S&P Raises US$760 Million Debt Ratings to B+ INMARSAT VENTURES: S&P Raises Corporate Credit Ratings to BB J. & P. ATCHISON: Hires David Rubin & Partners Administrator JAMES ELEY: Hires Antony Batty to Administer Assets K J SOLUTIONS: Appoints P&A Partnership Administrator KENNEDY'S KARDS: Taps Administrator from Cowgill Holloway LLOYD DAVIES: Taps Begbies Traynor to Administer Assets LUCITE INTERNATIONAL: S&P Affirms BB Corp. Credit Rating M & P ASPHALT: Creditors Pass Winding Up Resolution MISYS PLC: Transfers 6,666 Shares to Scheme Participants NATUREDOWN LIMITED: Appoints Elizabeth Arakapiotis as Liquidator NORVALLS LIMITED: Hires Rothman Pantall Administrator P.M.A STEELS: Creditors Confirm Voluntary Liquidation PC IQ: Appoints Portland Business & Financial Administrator PRESTON PRINTERS: Begins Winding Up Operations PRO ACTIVE: Creditors Agree to Liquidate Company's Assets R.F. FIELDING: Hires Joint Administrators from Milner Boardman RANK GROUP: Buys Back 1 Million Shares for Cancellation RANMAC EMPLOYMENT: Taps Jeffrey Mark Brenner to Liquidate Assets REFCO INC: BAWAG Settles US$1.3 Billion Suit with Creditors REFCO INC: 3 Creditors File Reclamation Demand to Recover Assets REGAL ENGINEERS: Brings In Administrators from Bond Partners LLP REGENERATE LIMITED: Creditors Affirm Voluntary Liquidation ROWCROFT LIMITED: Financial Woes Trigger Liquidation ROYAL & SUNALLIANCE: Sets 1.87% Fixed Spread to New Tier 1 Bonds SABRE LIMITED: Joint Liquidators Take Over Operations WITHAM FURNITURE: Appoints Tenon Recovery Administrator ********* ============= A U S T R I A ============= BAWAG PSK: Settles with Refco Creditors & Obtains Fresh Capital --------------------------------------------------------------- As widely reported, BAWAG P.S.K. (Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse Aktiengesellschaft) reached a settlement agreement over a US$1.3 billion suit filed by the Official Committee of Unsecured Creditors of Refco, Inc. Terms of the agreement were not disclosed. "All potential claims from the U.S. are off the table with this solution," BAWAG's Chief Executive Officer Ewald Nowotny said at a news conference on May 1, in Vienna, Austria. When asked whether the bank settled for US$675 million, Mr. Nowotny said, "I won't deny that." As previously reported, the creditors accused BAWAG of aiding a five-year multi-million dollar fraud orchestrated by former Refco Chief Executive Phillip Bennett that drove the group into bankruptcy. Judge Drain Freezes BAWAG Assets At the Creditors Committee's request, Judge Drain issued an interim order on April 25, restraining and enjoining BAWAG and any financial institution or custodian with assets belonging to or in the name of BAWAG from transferring or taking any other action with respect to BAWAG's assets in the United States. However, parties may make transfers in the ordinary course of business in connection with BAWAG's role as gateway operator in Austria for the FedACH International Transatlantic Service, so long as, with respect to any transfer, BAWAG has no right to retain, encumber or otherwise possess the transferred amount. Judge Drain directed the United States Marshal for the Southern District of New York, or any person appointed by him to act in his place, to levy within the jurisdiction immediately on the property in which BAWAG has an interest, including but not limited to, any debt owed to BAWAG as will satisfy the US$1.3 billion. Judge Drain also required BAWAG to promptly produce to the Committee the documents to identify all accounts or banks established by BAWAG as well as the amount and location of BAWAG's assets within the U.S. BAWAG is also required to produce a witness with knowledge of the assets. Modified TRO Reuters reports that the Bankruptcy Court issued a modified TRO on Monday, authorizing BAWAG to resume its transfers out of the U.S. The Court, however, named four specific accounts that are required to keep a minimum of $1.16 billion of BAWAG assets. BAWAG and Refco agreed to the modified order, contingent on another agreement that was filed under seal, Reuters says. BAWAG also produced specified documents and presented witness to the Committee. Austria's Last-Minute Bailout Minutes after BAWAG announced a settlement agreement with Refco's creditors, Austrian Chancellor Wolfgang Schuessel revealed that local banks would provide BAWAG with up to EUR450 million in fresh capital, while the government would guarantee EUR900 million in capital. The announcement came following reports that the Austrian chancellor, with Finance Minister Karl-Heinz Grasser and other top officials, had considered placing BAWAG under temporary supervision. The parties deliberated Monday whether to place the financial group under the care of other local banks. The parties agreed that BAWAG and parent Oesterreichischer Gewerkschaftsbund (OeGB) would have to transfer their 20% stake in the Austrian National Bank to the government in return for the state guarantee, Eric Frey writes for the Financial Times. The Austrian Trade Union Federation also needs to disclose all its assets to the central bank as part of the deal. BAWAG Chief Executive Ewald Nowotny noted up to EUR100 million a day in withdrawals. The fresh capital and the state guarantee, which will remain in force until July 1, 2007, allows the sale of BAWAG's assets by OeGB. Morgan Stanley acts as advisor for the sale. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. (Refco Bankruptcy News, Issue No. 29; Bankruptcy Creditors' Service, Inc., 215/945-7000). =========== F R A N C E =========== BELLON SA: S&P Withdraws BB Corporate Credit Rating --------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB' long-term corporate credit rating on France-based Bellon S.A. The company has no rated public debt outstanding. Bellon owns 36.8% of global food and management services company Sodexho Alliance S.A. (BBB+/Stable/A-2). Bellon's market asset value coverage of total debt hit an acceptable 3.0x in February 2006, and it still benefits from adequate financial flexibility. Standard & Poor's will continue to closely monitor the impact of Bellon's ownership on Sodexho's financial and governance risk profiles. ============= G E R M A N Y ============= ALBRECHT BAU: Creditors' Meeting Slated for June 6 -------------------------------------------------- Court-appointed provisional administrator for ALBRECHT BAU GmbH, Herbert Feigl, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:15 a.m., on June 6. The meeting of creditors and other interested parties will be held at: The District Court of Halle-Saalkreis Saal 1043 Justizzentrum Thueringer Str. 16 06112 Halle, Germany 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. Creditors have until May 9, to register their claims with the court-appointed provisional administrator. The District Court of Halle-Saalkreis opened bankruptcy proceedings against ALBRECHT BAU GmbH on March 8. Consequently, all pending proceedings against the company have been automatically stayed. The administrator can be reached at: Herbert Feigl Hansering 1 D-06108 Halle, Germany Tel: 0345/212220 Fax: 0345/2122222 The Debtor can be reached at: ALBRECHT BAU GmbH Ethel-Rosenberg-Str. 4 06188 Plossnitz, Germany ALU-BILLETS: Claims Registration Ends May 5 ------------------------------------------- Creditors of Alu-Billets Produktions GmbH have until May 5, to register their claims with court-appointed provisional administrator Michael Pluta. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on May 29, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kempten SS 240/II. Residenzplatz 4-6 87435 Kempten, Germany 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. The District Court of Kempten opened bankruptcy proceedings against Alu-Billets Produktions GmbH on March 31. Consequently, all pending proceedings against the company have been automatically stayed. The administrator can be contacted at: Michael Pluta Karlstr. 31-33 89073 Ulm, Germany Tel: 0731/96880-0 Fax: 0731/96880-50 The Debtor can be contacted at: Alu-Billets Produktions GmbH Daimlerstrasse 21 87437 Kempten, Germany AUTOHAUS SCHATTLING: Creditors' Meeting Slated for June 1 --------------------------------------------------------- Court-appointed provisional administrator for Autohaus Schattling GmbH, Andreas Kienast, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:20 a.m., on June 1. The meeting of creditors and other interested parties will be held at: The District Court of Magdeburg Saal E Insolvenzabteilung Liebknechtstrasse 65-91 39110 Magdeburg, Germany 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. Creditors have until May 8, to register their claims with the court-appointed provisional administrator. The District Court of Magdeburg opened bankruptcy proceedings against Autohaus Schattling GmbH on March 1. Consequently, all pending proceedings against the company have been automatically stayed The administrator can be reached at: Andreas Kienast Lennestr. 10 39112 Magdeburg, Germany Tel: 0391/5973322 Fax: 0391/5973333 The Debtor can be reached at: Autohaus Schattling GmbH Attn: Klaus and Birgit Schattling, Managers Steinbruch 7 39418 Stassfurt, Germany B & B IMMOBILIEN: Claims Registration Ends May 5 ------------------------------------------------ Creditors of B & B Immobilien- und Bautrager-GmbH have until May 5, to register their claims with court-appointed provisional administrator Christian Plail. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on June 2, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Augsburg Sitzungssaal 162 Justizgebaude Alten Einlass 1 86150 Augsburg, Germany 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. The District Court of Augsburg opened bankruptcy proceedings against B & B Immobilien- und Bautrager-GmbH on March 28. Consequently, all pending proceedings against the company have been automatically stayed. The administrator can be contacted at: Christian Plail c/o SKP Partnerschaftsgesellschaft Eserwallstr. 1-3 86150 Augsburg, Germany The Debtor can be contacted at: B & B Immobilien- und Bautrager-GmbH Attn: Uenal Bakir, Manager Schaezlerstr. 8 86150 Augsburg, Germany BAUSTIL GMBH: Claims Registration Ends May 6 -------------------------------------------- Creditors of Baustil GmbH have until May 6, to register their claims with court-appointed provisional administrator Udo Mueller. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on June 6, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Saal E Insolvenzabteilung Liebknechtstrasse 65-91 39110 Magdeburg, Germany 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. The District Court of Magdeburg opened bankruptcy proceedings against Baustil GmbH on April 3. Consequently, all pending proceedings against the company have been automatically stayed. The administrator can be contacted at: Udo Mueller Editharing 31 39108 Magdeburg, Germany Tel: 0391/5066030 Fax: 0391/5066033 The Debtor can be contacted at: Baustil GmbH Attn: Olaf Stolzheise, Manager Karl-Marx-Str. 10 38871 Ilsenburg, Germany ELBE-TEAM: Claims Registration Ends May 9 ----------------------------------------- Creditors of Elbe-Team Warenhandels- und Dienstleistungs-GmbH have until May 9, to register their claims with court-appointed provisional administrator Albert Wolff. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 20, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Saal D131 Olbrichtplatz 1 01099 Dresden, Germany 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. The District Court of Dresden opened bankruptcy proceedings against Elbe-Team Warenhandels- und Dienstleistungs-GmbH on March 31. Consequently, all pending proceedings against the company have been automatically stayed. The administrator can be contacted at: Albert Wolff Weisseritzstrasse 3 01067 Dresden, Germany Web: http://www.WORAKO.de/ The Debtor can be contacted at: Elbe-Team Warenhandels- und Dienstleistungs-GmbH Attn: Anita Tygielska and Peter Werner Wolki, Managers Spenerstr. 35 01309 Dresden, Germany MEINZER GMBH: Claims Registration Ends May 9 -------------------------------------------- Creditors of Meinzer GmbH have until May 9, to register their claims with court-appointed provisional administrator Frank Bassermann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 20, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Karlsruhe Saal IV/1 OG Schlossplatz 23 76131 Karlsruhe, Germany 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. The District Court of Karlsruhe opened bankruptcy proceedings against Meinzer GmbH on March 2. Consequently, all pending proceedings against the company have been automatically stayed. The administrator can be contacted at: Frank Bassermann Lorenzstr. 29 76135 Karlsruhe, Germany Tel: (0721) 160080 The Debtor can be contacted at: Meinzer GmbH Attn: Detlev Meinzer, Manager Bergstr. 42 76327 Pfinztal, Germany NOVA WAVE: Creditors' Meeting Slated for May 8 ---------------------------------------------- Court-appointed provisional administrator for Nova Wave Light 01 GmbH, Martin Schoebe, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:10 a.m., on May 8. The meeting of creditors and other interested parties will be held at: The District Court of Muenchen Infanteriestr. 5 Sitzungssaal 102 Muenchen, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m., on June 20, at the same venue. Creditors have until May 19, to register their claims with the court-appointed provisional administrator. The District Court of Muenchen opened bankruptcy proceedings against Nova Wave Light 01 GmbH on April 1. Consequently, all pending proceedings against the company have been automatically stayed The administrator can be reached at: Martin Schoebe Ainmillerstr. 11 80801 Muenchen, Germany Tel: 089/1893770 Fax: 089/18937750 The Debtor can be reached at: Nova Wave Light 01 GmbH Fraunhoferstr. 11b 82152 Martinsried, Germany PEKA-THERM: Creditors' Meeting Slated for May 22 ------------------------------------------------ Court-appointed provisional administrator for PEKA-THERM Rohrisolierungen+Befestigungen GmbH, Ruediger Schmidt, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:45 a.m., on May 22. The meeting of creditors and other interested parties will be held at: The District Court of Goppingen Saal 024 Pfarrstr. 25 73033 Goppingen, Germany 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. Creditors have until May 5, to register their claims with the court-appointed provisional administrator. The District Court of Goppingen opened bankruptcy proceedings against PEKA-THERM Rohrisolierungen+Befestigungen GmbH on April 1. Consequently, all pending proceedings against the company have been automatically stayed The administrator can be reached at: Ruediger Schmidt Muehlesgassle 2 73054 Eislingen, Germany Tel: 07161/82018 The Debtor can be reached at: PEKA-THERM Rohrisolierungen+Befestigungen GmbH Attn: Wolfgang Hagele, Manager Rechbergstr. 10 73113 Ottenbach, Germany THOMAS TACKMANN: Claims Registration Ends May 5 ----------------------------------------------- Creditors of Thomas Tackmann GmbH have until May 5, to register their claims with court-appointed provisional administrator Thomas Neumann. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on May 26, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hagen Raum 283 Etage 2 Heinitzstrasse 42 58097 Hagen, Germany 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. The District Court of Hagen opened bankruptcy proceedings against Thomas Tackmann GmbH on April 6. Consequently, all pending proceedings against the company have been automatically stayed. The administrator can be contacted at: Thomas Neumann Altenaer Str. 2 58507 Luedenscheid, Germany Tel: 02351/3265 Fax: +49235132670 The Debtor can be contacted at: Thomas Tackmann GmbH Winkhauserstr. 23 58509 Luedenscheid, Germany Attn: Thomas Tackmann, Manager Losenbacher Landstr. 150 58515 Luedenscheid, Germany ============= H U N G A R Y ============= BORSODCHEM RT: Earns HUF14.4 Billion in 2005 -------------------------------------------- BorsodChem Rt. released its audited consolidated results for the financial year 2005. BorsodChem's net sales for 2005 increased by 17% year-on-year and totaled HUF173 billion. The group attributed the increase to capacity growth and hike in sale prices. The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7% higher than HUF20.5 billion in 2004. BorsodChem attributed the increase to: -- spectacular improvement of MDI and caustic soda products margin; -- the influence of surplus sales due to capacity expansion on PVC, TDI and aniline products; -- non-closure of production plants for general maintenance. BorsodChem's net profit was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year ago. The approved effective dividend of HUF51 per share provides an EPS payout ratio of 27.1%, up from 19.9% in 2004. At Dec. 31, 2005, BorsodChem's balance sheet showed HUF237.9 billion in total assets, HUF98.9 billion in total liabilities and HUF139.02 billion in total equity. A full-text copy of BorsodChem Rt.'s 2005 Annual Report is available free-of-charge at http://researcharchives.com/t/s?88b Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. BORSODCHEM RT: Eyes EUR500 Mln European Expansion ------------------------------------------------- The annual general meeting of BorsodChem Rt. on April 26, CEO Kay Gugler presented BorsodChem's new Strategy 2012, which maintains logical continuity with and relies significantly on BorsodChem's globally unique business model and key products. Along these lines in the past 15 years BorsodChem has transformed from a single product line local company into a Central Eastern European player with some very successful products such as TDI, MDI and PVC. Implementation of the new long-term strategy will elevate the company on to a leading European level with strong focus on isocyanates in its product portfolio. Increasing global demand for TDI and uneven geographical spread of capacities allow BorsodChem to exploit a unique opportunity to become the number one European producer of TDI. With regards to the continued increasing demand for MDI and to harness the potential inherent in economies of scale BorsodChem will continue investing in MDI production and double its current capacity. To achieve this, a world-scale 160 ktpa TDI plant and a state-of-the-art 200 ktpa MDI plant will be built by mid-2009 and 2010-2011 respectively. The new facilities will be integral parts of the site in Kazincbarcika. In addition to volume expansion, BorsodChem will concentrate on differentiating a considerable part of its downstream MDI and TDI in order to add extra value and provide for sufficient sustainable competitive advantage. This move forward from commodity products towards further processed specialty products, polyurethane systems and solutions will enable the company to be a price setter rather than price taker. To foster the related technological innovation and R&D BorsodChem will invest heavily in its people simultaneously with further capacity expansion projects. As regards PVC BorsodChem will maintain its PVC business for synergies within the integrated product portfolio while maximizing cash generation. The capacity development program, which will require capital expenditure of around EUR500 million, will elevate BorsodChem into Europe's second largest isocyanates player by 2012. Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. ============= I R E L A N D ============= EUROFOOD: Irish Court Gets Jurisdiction on Insolvency Case ---------------------------------------------------------- The European Court of Justice gave the High Court of Ireland jurisdiction over the liquidation proceedings of Eurofood IFSC Ltd. on May 2. Eurofood, incorporated and registered in Ireland, is a subsidiary of Parmalat Spa that provides financing facilities for companies in the Parmalat group. As previously reported, Bank of America asked the Irish Court in January 2004 for the winding up of Eurofood. BofA also sought and obtained the appointment of a provisional liquidator, Pearse Farrell. In February 2004, however, a court in Parma, Italy, started insolvency proceedings for Parmalat and appointed Dr. Enrico Bondi as administrator. BofA contested the Italian court's declaration of insolvency of Eurofood. Dr. Bondi argued that BoFA's claims against the company should be heard in Italy. A full-text copy of the European Court ruling is available for free at http://ResearchArchives.com/t/s?895 European Court's Statement * Mutual trust requires that the courts of other Member States recognize the decision to open proceedings, without reviewing that jurisdiction unless it infringes fundamental rights. On Dec. 24, 2003, with a view to its industrial restructuring, Parmalat was placed under extraordinary administration in Italy with Mr. Bondi as administrator. At the request of the Bank of America NA of Jan. 27, 2004, seeking the liquidation of Eurofood on account of its debts, the High Court (Ireland) appointed Mr. Farrell as the provisional liquidator, granting him powers to take possession of Eurofood's assets, manage its affairs, open a bank account in its name, and instruct lawyers on its behalf. On Feb. 9, 2004, Eurofood was placed under the extraordinary administration in Italy of Mr. Bondi. On Feb. 10, 2004, the Tribunale Civile e Penale di Parma (District Court, Parma) scheduled a hearing for Feb. 17, 2004, on an application for a declaration of Eurofood's insolvency. Mr. Farrell was informed on Feb. 13. On Feb. 20, 2004, the Parma court, taking the view that Eurofood's centre of main interests was in Italy, held that it had international jurisdiction to determine whether that company was insolvent. On March 23, 2004, the High Court held that the insolvency proceedings against Eurofood had been opened in Ireland on the date of the application by the Bank of America NA, and that those proceedings were the "main" proceedings because the center of Eurofood's interests was in Ireland. It also held that the conduct of the proceedings before the Italian court in Parma justified the refusal of the Irish courts to recognize the decision of that court. Finding Eurofood insolvent, the High Court ordered its liquidation and appointed Mr. Farrell as liquidator. Mr. Bondi challenged that judgment. In those circumstances, the Supreme Court of Ireland referred several questions to the Court of Justice of the European Communities for a preliminary ruling on the interpretation of the Community regulation on insolvency procedures, with a view to determining, in particular, which court had jurisdiction to liquidate Eurofood. * The court with jurisdiction to open the "main" insolvency proceedings According to the Community regulation, the court with jurisdiction to open the "main" insolvency proceedings, applying to the debtor's assets situated in all Member States, is the court of the Member State where the center of the debtor's main interests is situated. The center of the main interests of a debtor company is presumed to be the place of the registered office where the debtor regularly administers its interests. The Court of Justice has held that that presumption can be rebutted only if factors which are both objective and ascertainable by third parties enable it to be established that an actual situation exists which is different from that which locating it at that registered office is deemed to reflect (as in the case of a company not carrying on any business in the territory of the Member State where its registered office is situated). Where a company carries on its business in the territory of the Member State where its registered office is situated, the mere fact that its economic choices are or can be controlled by a parent company in another Member State is not enough to rebut the presumption linked to the place of the registered office. * Recognition of the decision to open main insolvency proceedings by the courts of other Member States The regulation provides that insolvency proceedings opened in one Member State are to be recognized in all the Member States from the time that they produce their effects in the State of opening (the rule of priority). The principle of mutual trust requires that the courts of the other Member States recognize the decision opening the main insolvency proceedings, without being able to review the jurisdiction of the court of the State where proceedings were opened. * Meaning of "decision opening insolvency proceedings" The mechanism providing that only one main set of proceedings may be opened could be seriously disrupted if the courts of Member States, hearing applications based on a debtor's insolvency at the same time, could claim concurrent jurisdiction over an extended period. In order to ensure the effectiveness of the system, the Court of Justice has held that a decision handed down by a court of a Member State, based on the debtor's insolvency and seeking the opening of one of the procedures laid down by the Community regulation involving divestment of the debtor and the appointment of a liquidator constitutes a decision opening insolvency proceedings. Such divestment involves the debtor losing the powers of management which he has over his assets. * Grounds for non-recognition of insolvency proceedings A Member State may refuse to recognize insolvency proceedings opened in another Member State where such recognition would produce effects clearly contrary to its public policy, its fundamental principles or the constitutional rights and liberties of the individual. In the context of insolvency proceedings, the right of creditors or their representatives to participate in accordance with the equality of arms principle is of particular importance. Therefore, a Member State may refuse to recognize insolvency proceedings opened in another Member State where the decision to open the proceedings was taken in flagrant breach of the fundamental right to be heard, which a person concerned by such proceedings enjoys. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on December 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Headquartered in Milan, Italy, Eurofood -- http://www.eurofood.it/-- imports and distributes food specialties from 50 countries and five continents. It is a wholly owned subsidiary of Parmalat SpA. ========= I T A L Y ========= ALITALIA SPA: Air One Files Appeal Over Volare Merger ----------------------------------------------------- Air One filed Friday an appeal against the acquisition of Volare S.p.A. by Alitalia S.p.A. with a local administrative court, Radiocor says. Air One, which made the second highest bid for Volare, is appealing a March 17 government decree approving Alitalia's EUR38 million takeover offer of Volare Group. As previously reported, the Italian government approved Alitalia's proposed takeover bid for Volare, following a favorable ruling from a Roman court. The Hon. Antonio Lamorgese and Stefano Olivieri had ruled that Alitalia's bid for Volare does not violate the European Commission's regulations on state aid. As reported in TCR-Europe on April 26, Alitalia S.p.A. and Volare S.p.A. signed a final takeover agreement, subject to regulatory approval. About Volare Headquartered in Milan, Italy, Volare Group S.p.A. -- http://www.volare-group.it/-- is an operative holding company that controls Volare Airlines S.p.A. and Air Europe since 2001. The company declared insolvency on Nov. 22, 2004, citing huge debt and heavy losses. The group then filed for extraordinary administration, which allowed it to be protected from creditors while resuming daily operations. Volare emerged from administration in spring, after beating its EUR7 million revenue forecast by around EUR3.8 million. Volare needs fresh capital to expand its fleet. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- generates more than EUR4 billion in annual revenue and employs more than 20,000 people. As of December 2004, its net debt stood at EUR1.76 billion in 2004. Alitalia flies to about 80 destinations in more than 60 countries from hubs in Rome and Milan and operates a fleet of about 185 aircraft. Despite a EUR1.4 billion state-backed restructuring in 1997 and a EUR1.4 billion capital injection two years ago, it remains financially troubled. It has posted a profit four times in the past 16 years. LOTTOMATICA SPA: Moody's Rates New EUR750 Mln Notes at (P)Ba3 ------------------------------------------------------------- Moody's Investors Service assigned a provisional (P)Ba3 rating to the proposed issuance of EUR750 million deeply subordinated notes due 2066 by Lottomatica, i.e. two notches below the company's (P)Ba1 issuer rating assigned with a stable outlook on Jan. 10. The assigned rating and the basket designation assume there will be no material variations to the draft legal documentation and the (P) provisional feature of the rating will be removed upon closing of the transaction, subject to implementation of the contemplated capital structure. Moody's said that the (P)Ba3 rating for the deeply subordinated notes reflects the level of subordination of this security relative to other debt obligations of Lottomatica. In particular, the securities will be the most junior debt instruments of the issuer, subordinated to and ranking behind the claims of all other unsubordinated and subordinated creditors of the company. The instrument will, in Moody's view, have sufficient equity- like features to allow it to receive basket D treatment, i.e. 75% equity and 25% debt for financial leverage purposes at the closing date of the GTECH acquisition by Lottomatica. As the time to maturity drops below 50 years, the basket will shift in a more debt-like direction. The basket allocation is based on these rankings for the three dimensions of equity: -- No maturity: Moderate -- The instrument will have a maturity of 60 years with a first call option by the issuer after 10 years. Potential redemption on a call date will be covered by satisfactory replacement language where the issuer expresses its intention that the instrument can only be replaced by one with the same or more equity-like characteristics. After the time to maturity drops below 50 years, the ranking will shift from moderate to weak. -- No ongoing payments: Strong -- Deferral of interest can be optional/cash-cumulative or mandatory/non-cash cumulative. The mandatory interest deferral is triggered upon the breach of a meaningful ratio of free cash flow before dividend and debt service to net interest below 1.35x. In this event, the company would only be able to fund the mandatory deferred interest from equity proceeds, and not from internal cash flow. -- Loss absorption: Moderate -- In the event of liquidation, the claim for principal would rank junior to all other creditors' claims but ahead of ordinary, preference and savings shares. Any accumulated coupons that are not able to be common share settled will have a claim in bankruptcy that ranks junior to savings and preference shares as well as equity interests other than nominal par value amounts. Moody's notes that the instrument includes a change of control clause according to which the securities could be redeemed in such case; however on the occurrence of this event, Lottomatica would be first committed to launch a tender offer for its outstanding EUR360 million senior bond due 2008, which is currently the only senior debt instrument in the company's capital structure that does not benefit from a change of control clause. After 2008, Moody's would expect all of the company's senior debt to enjoy the clause in order to retain the basket D designation. Lottomatica S.p.A is the concessionaire of the Lotto game in Italy, and reported net revenues of EUR583 million in FYE December 2005. GTECH Holdings Corporation is the worldwide leader in online lottery systems and had net revenues of approximately USD1.3 billion for the 12 months ended Dec. 31, 2005. LOTTOMATICA SPA: S&P Rates 60-Year Deferrable Bond at BB+ --------------------------------------------------------- Standard & Poor's Ratings Services assigned a 'BB+' long-term rating to the proposed 60-year, optionally and mandatorily interest-deferrable, subordinated hybrid securities to be issued by Lottomatica SpA (BBB/Watch Neg/A-2). At the same time, the rating was put on CreditWatch with negative implications, mirroring the status of the corporate credit rating on Lottomatica. The two-notch differential between the 'BB+' issue rating on the proposed securities and our 'BBB' long-term corporate credit rating on Lottomatica reflects our notching criteria, which call for: -- a one-notch differential for subordination, as the corporate credit rating is in the investment-grade category; and -- an additional one-notch differential for optional interest deferability. There is no notching for mandatory deferability both because of the immediately required settlement (funded by equity issuance), and because of the ability to pre-empt mandatory deferral through an equity issue occurring within the prior six months for this explicit purpose. This includes the possibility of an advanced capital contribution from Lottomatica's majority shareholder, De Agostini S.p.A. The CreditWatch reflects our expectation that all ratings on Lottomatica and related entities will be lowered to 'BBB-/A-3' (with the exception of the hybrid securities), with a stable outlook, if Lottomatica's acquisition of U.S.-based lottery systems operator GTECH Holdings Corp. (BBB/Watch Neg/--) is completed as proposed. This is expected to occur once the necessary regulatory approvals have been received and the proposed rights issue and hybrid placement have been completed. Upon resolution of the CreditWatch, the rating on the proposed hybrid securities will be lowered by one notch, to 'BB', in line with the action on the corporate credit rating, and because the latter will remain in the investment-grade category. The capital securities are non-callable for ten years, optionally and mandatorily deferrable, deeply subordinated, and tax-deductible. Standard & Poor's considers the notes to have an intermediate equity content, based notably on their: -- long maturity of 60 years; -- optional cumulative non-compounding deferability of interest; -- mandatory cumulative non-compounding deferability, triggered by a liquidity-service ratio (the first such trigger among European corporate hybrids); -- deep subordination; and -- callability upon step-up date at year ten, combined with a tight, though not legally binding, replacement language. The completion and size of the deal remain subject to market conditions. The issue is expected not to exceed 15% of Lottomatica's year-end-2005 book capitalization and, therefore, according to our criteria, would retain all the intermediate equity content otherwise warranted by the instrument's features. Regarding permanence, the combination of the issue's 1% margin step-up and an issuer cash call at its tenth anniversary would strongly reduce equity content if not for the replacement condition, which provides that, if at anytime during the life of the instrument the company calls the current issue for any reason (including tax changes), it commits to do so using proceeds from common equity or securities (ranking pari passu with or junior to the hybrid) with specifically described terms and conditions in line with those of the current instrument (especially regarding subordination, step-up, replacement, maturity, and deferability), issued no more than six months before redemption in an amount at least equivalent to the hybrid's outstanding amount. The step-up's negative impact on permanence and equity content is, therefore, substantially mitigated. The exercise of the coupon deferral option can happen at any point in time, consistent with Standard & Poor's equity-credit criteria for optional deferability. Of the corporate hybrids rated by Standard & Poor's, only those of DONG A/S (BBB+/Stable/A-2) and Magyar Olaj- es Gazipari Rt. (BBB-/Watch Neg/--) share this favorable feature. Optionally deferred interest is cumulative but noncompounding and payable at the earlier of resumption of shareholder distributions or ten years, which meets our deferral criteria. A mandatory deferral is triggered when the ratio of free cash flow (after capital expenditures and tax payments but before debt-servicing and employee stock-option expenses) to interest expense (including the hybrid's) is 1.35x or less. The trigger's correlation with overall creditworthiness is satisfactory, although the level is remote at this stage. Mandatory deferred interest remains owing, non-compounding. Like interest deferred optionally for over five years, mandatory deferred interest can only be settled through the proceeds from common share issuance, which Lottomatica will immediately seek and continue to seek until full settlement. Lottomatica's board has committed, throughout the life of the instrument, to ask shareholders for an authorization to issue common shares, exclusively to fund settlement of at least two years' worth of hybrid coupons. Also, the deferral is not mandatory if equity, including advance capital contributions, for example from Lottomatica's current majority owner, has been raised up to six months before payment date for this explicit purpose. Thus, the mandatory deferral entails no additional notching of the hybrid rating relative to the corporate credit rating. After settling in stock, Lottomatica commits to no share repurchases for one year. Hence, the immediacy of the settlement does not reduce equity content. Overall, the mandatory deferral enhances equity credit somewhat relative to only-optionally deferrable instruments. There is no negative pledge. Assuming a notice has been properly served, deferring is not an event of default. The change-of- control clause present in the documentation is neutral to our rating and equity-credit analysis. The features of this issue enhance Lottomatica's financial flexibility at the rating level. If Lottomatica's proposed acquisition with GTECH Holdings is successful, the combined entity will be highly leveraged, with an expected ratio of lease-adjusted total debt to EBITDA of about 3.5x at year-end 2006, including 50% of the nominal amount of the hybrid securities to reflect their intermediate equity content. Interest on the hybrid instrument will, however, be fully treated as a financial fixed charge, including for funds from operations calculation purposes, which is consistent with our treatment of all corporate hybrid transactions. S&P said it does not expect Lottomatica to return to credit ratios more appropriate for a 'BBB-' rating until year-end 2007, which include a ratio of lease-adjusted total debt to EBITDA of comfortably less than 3.5x. In addition, cash flow available for debt reduction will be affected by significant ongoing dividend payments. PARMALAT: Ireland Gets Jurisdiction on Eurofood Insolvency Case --------------------------------------------------------------- The European Court of Justice gave the High Court of Ireland jurisdiction over the liquidation proceedings of Eurofood IFSC Ltd. on May 2. Eurofood, incorporated and registered in Ireland, is a subsidiary of Parmalat Spa that provides financing facilities for companies in the Parmalat group. s As previously reported, Bank of America asked the Irish Court in January 2004 for the winding up of Eurofood. BofA also sought and obtained the appointment of a provisional liquidator, Pearse Farrell. In February 2004, however, a court in Parma, Italy, started insolvency proceedings for Parmalat and appointed Dr. Enrico Bondi as administrator. BofA contested the Italian court's declaration of insolvency of Eurofood. Dr. Bondi argued that BoFA's claims against the company should be heard in Italy. A full-text copy of the European Court ruling is available for free at http://ResearchArchives.com/t/s?895 European Court's Statement * Mutual trust requires that the courts of other Member States recognize the decision to open proceedings, without reviewing that jurisdiction unless it infringes fundamental rights. On Dec. 24, 2003, with a view to its industrial restructuring, Parmalat was placed under extraordinary administration in Italy with Mr. Bondi as administrator. At the request of the Bank of America NA of Jan. 27, 2004, seeking the liquidation of Eurofood on account of its debts, the High Court (Ireland) appointed Mr. Farrell as the provisional liquidator, granting him powers to take possession of Eurofood's assets, manage its affairs, open a bank account in its name, and instruct lawyers on its behalf. On Feb. 9, 2004, Eurofood was placed under the extraordinary administration in Italy of Mr. Bondi. On Feb. 10, 2004, the Tribunale Civile e Penale di Parma (District Court, Parma) scheduled a hearing for Feb. 17, 2004, on an application for a declaration of Eurofood's insolvency. Mr. Farrell was informed on Feb. 13. On Feb. 20, 2004, the Parma court, taking the view that Eurofood's centre of main interests was in Italy, held that it had international jurisdiction to determine whether that company was insolvent. On March 23, 2004, the High Court held that the insolvency proceedings against Eurofood had been opened in Ireland on the date of the application by the Bank of America NA, and that those proceedings were the "main" proceedings because the center of Eurofood's interests was in Ireland. It also held that the conduct of the proceedings before the Italian court in Parma justified the refusal of the Irish courts to recognize the decision of that court. Finding Eurofood insolvent, the High Court ordered its liquidation and appointed Mr. Farrell as liquidator. Mr. Bondi challenged that judgment. In those circumstances, the Supreme Court of Ireland referred several questions to the Court of Justice of the European Communities for a preliminary ruling on the interpretation of the Community regulation on insolvency procedures, with a view to determining, in particular, which court had jurisdiction to liquidate Eurofood. * The court with jurisdiction to open the "main" insolvency proceedings According to the Community regulation, the court with jurisdiction to open the "main" insolvency proceedings, applying to the debtor's assets situated in all Member States, is the court of the Member State where the center of the debtor's main interests is situated. The center of the main interests of a debtor company is presumed to be the place of the registered office where the debtor regularly administers its interests. The Court of Justice has held that that presumption can be rebutted only if factors which are both objective and ascertainable by third parties enable it to be established that an actual situation exists which is different from that which locating it at that registered office is deemed to reflect (as in the case of a company not carrying on any business in the territory of the Member State where its registered office is situated). Where a company carries on its business in the territory of the Member State where its registered office is situated, the mere fact that its economic choices are or can be controlled by a parent company in another Member State is not enough to rebut the presumption linked to the place of the registered office. * Recognition of the decision to open main insolvency proceedings by the courts of other Member States The regulation provides that insolvency proceedings opened in one Member State are to be recognized in all the Member States from the time that they produce their effects in the State of opening (the rule of priority). The principle of mutual trust requires that the courts of the other Member States recognize the decision opening the main insolvency proceedings, without being able to review the jurisdiction of the court of the State where proceedings were opened. * Meaning of "decision opening insolvency proceedings" The mechanism providing that only one main set of proceedings may be opened could be seriously disrupted if the courts of Member States, hearing applications based on a debtor's insolvency at the same time, could claim concurrent jurisdiction over an extended period. In order to ensure the effectiveness of the system, the Court of Justice has held that a decision handed down by a court of a Member State, based on the debtor's insolvency and seeking the opening of one of the procedures laid down by the Community regulation involving divestment of the debtor and the appointment of a liquidator constitutes a decision opening insolvency proceedings. Such divestment involves the debtor losing the powers of management which he has over his assets. * Grounds for non-recognition of insolvency proceedings A Member State may refuse to recognize insolvency proceedings opened in another Member State where such recognition would produce effects clearly contrary to its public policy, its fundamental principles or the constitutional rights and liberties of the individual. In the context of insolvency proceedings, the right of creditors or their representatives to participate in accordance with the equality of arms principle is of particular importance. Therefore, a Member State may refuse to recognize insolvency proceedings opened in another Member State where the decision to open the proceedings was taken in flagrant breach of the fundamental right to be heard, which a person concerned by such proceedings enjoys. Headquartered in Milan, Italy, Eurofood -- http://www.eurofood.it/-- imports and distributes food specialties from 50 countries and five continents. It is a wholly owned subsidiary of Parmalat SpA. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on December 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. VOLARE SPA: Air One Files Appeal Over Alitalia Takeover ------------------------------------------------------- Air One filed Friday an appeal against the acquisition of Volare S.p.A. by Alitalia S.p.A. with a local administrative court, Radiocor says. Air One, which made the second highest bid for Volare, is appealing a March 17 government decree approving Alitalia's EUR38 million takeover offer of Volare Group. As previously reported, the Italian government approved Alitalia's proposed takeover bid for Volare, following a favorable ruling from a Roman court. The Hon. Antonio Lamorgese and Stefano Olivieri had ruled that Alitalia's bid for Volare does not violate the European Commission's regulations on state aid. As reported in TCR-Europe on April 26, Alitalia S.p.A. and Volare S.p.A. signed a final takeover agreement, subject to regulatory approval. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- generates more than EUR4 billion in annual revenue and employs more than 20,000 people. As of December 2004, its net debt stood at EUR1.76 billion in 2004. Alitalia flies to about 80 destinations in more than 60 countries from hubs in Rome and Milan and operates a fleet of about 185 aircraft. Despite a EUR1.4 billion state-backed restructuring in 1997 and a EUR1.4 billion capital injection two years ago, it remains financially troubled. It has posted a profit four times in the past 16 years. About Volare Headquartered in Milan, Italy, Volare Group S.p.A. -- http://www.volare-group.it/-- is an operative holding company that controls Volare Airlines S.p.A. and Air Europe since 2001. The company declared insolvency on Nov. 22, 2004, citing huge debt and heavy losses. The group then filed for extraordinary administration, which allowed it to be protected from creditors while resuming daily operations. Volare emerged from administration in spring, after beating its EUR7 million revenue forecast by around EUR3.8 million. Volare needs fresh capital to expand its fleet. =================== K A Z A K H S T A N =================== ABN TRADE: Court Sets May 12 Claims Bar Date -------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP ABN Trade insolvent on Dec. 12, 2005. Creditors have until May 12, to submit written proofs of claim to: Kunayeva Str. 99a, Office 204 Almaty, Kazakhstan Tel: 8 (3272) 72-99-63 AVIEK: Creditors Must File Claims by June 13 -------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Aviek insolvent on Oct. 5, 2005. Creditors have until June 13, to submit written proofs of claim to: Makatayeva Str. 117 Almaty, Kazakhstan Tel: 8 (3272) 34-39-74 ENERGOPROM: Creditors' Claims Due May 12 ---------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl Region declared LLP Energoprom insolvent on Feb. 2. Creditors have until May 12, to submit written proofs of claim to: Suleimanova Str. 17 (11a) Taraz, Kazakhstan Tel: 8 (326(222) 43-25-52 JAS: Creditors Must File Claims by May 12 ----------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP JAS insolvent on Nov. 17, 2005. Creditors have until May 12, to submit written proofs of claim to: Kunayeva Str. 99a, Office 204 Almaty, Kazakhstan Tel: 8 (3272) 72-99-63 KENDIK: Proofs of Claims Deadline Slated for May 12 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared CJSC Kendik insolvent on Dec. 26, 2005. Creditors have until May 12, to submit written proofs of claim to: Kunayeva Str. 99a, Office 204 Almaty, Kazakhstan Tel: 8 (3272) 72-99-63 NOTTENGEM: Claims Registration Ends May 12 ------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty declared LLP Nottengem insolvent on Dec. 26, 2005. Creditors have until May 12, to submit written proofs of claim to: Kunayeva Str. 99a, Office 204 Almaty, Kazakhstan Tel: 8 (3272) 72-99-63 REM: Court Sets May 12 Claims Bar Date -------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared Nov. 24, 2005, LLP Rem insolvent. Creditors have until May 12, to submit written proofs of claim to: Kunayeva Str. 99a, Office 204 Almaty, Kazakhstan Tel: 8 (3272) 72-99-63 SNABSERVICE-T: Court Sets May 12 Claims Bar Date ------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty declared LLP SNABSERVICE-T insolvent on Dec. 28, 2005. Creditors have until May 12, to submit written proofs of claim to: Kunayeva Str. 99a, Office 204 Almaty, Kazakhstan Tel: 8 (3272) 72-99-63 STROILUKSSERVICE: Creditors Must File Claims by May 12 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty declared LLP Stroiluksservice insolvent. Creditors have until May 12, to submit written proofs of claim to: Kunayeva Str. 99a, Office 204 Almaty, Kazakhstan Tel: 8 (3272) 72-99-63 TRANZIT-LIMITED: Proofs of Claims Deadline Slated for May 12 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty declared LLP Tranzit-Limited insolvent on Nov. 24, 2005. Creditors have until May 12, to submit written proofs of claim to: Kunayeva Str. 99a, Office 204 Almaty, Kazakhstan Tel: 8 (3272) 72-99-63 ===================== N E T H E R L A N D S ===================== AURELIA ENERGY: S&P Lowers US$335 Million Debt Rating to B- ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Netherlands Antilles-based oil services company Aurelia Energy N.V., together with its subsidiaries referred to as Bluewater, to 'B+' from 'BB-'. In addition, the unsecured debt rating on Bluewater Finance Ltd.'s US$335 million notes was lowered to 'B-' from 'B' and the rating on Bluewater Holding B.V.'s US$600 million bank loan was cut to 'BB-' from 'BB'. At the same time, all ratings were removed from CreditWatch where they had been placed with negative implications on Feb. 13, 2006. The outlook is stable. "The rating action reflects Bluewater's plans to increase capital expenditure and its aggressive financial policies," said Standard & Poor's credit analyst Per Karlsson. As a result of investments, Aurelia's free-operating cash flow is not expected to turn positive until 2008. Bluewater's financial policy is viewed as highly leveraged. Bluewater was recently awarded a contract with Nexen Petroleum U.K. that requires it to convert the Aoka Mizu hull into a floating production storage and offloading (FPSO) unit. The conversion is expected to take two years and require US$435 million in capital expenditure. Standard & Poor's expects this to be financed by a mixture of internally generated funds and debt. The contract period is for a minimum of five years, with a two times one-year extension option. This follows Bluewater's US$210 million acquisition last year of a 55% share in an FPSO and the acquisition of a shuttle tanker for US$129.5 million (to be finalized in June 2006). "We expect that Bluewater will be able to keep key credit protection measures at levels consistent with the current rating during the conversion of the Aoka Mizu hull into a full FPSO," added Mr. Karlsson. The rating may come under pressure if Aurelia does not successfully extend contract maturities for the Munin, Glas Dowr, and Uisge Gorm FPSOs, which are working on fields will be abandoned in 2008. Any setback in the company's aggressive tax scheme, governance issues, or additional unexpected major capital expenditure could also put pressure on the ratings. The rating is not likely to be reviewed for a potential upgrade before the Aiko Mizu has been successfully taken into production. GETRONICS N.V.: Reveals ICT Security Study in the U.S. ------------------------------------------------------ Getronics N.V. disclosed the results of its annual ICT security study in the US. Data from the new study reveals that security professionals across a broad cross-section of industries believe that regulation is strongly impacting their organizations: -- more than 50 percent of respondents reported that time spent on compliance is a leading threat to ICT security; but -- an overwhelming 89 percent of respondents indicated that enterprises are maturing their approach to security by funding initiatives across several departments, ensuring that ICT security is integrated throughout the entire organization. "While many security surveys appear throughout the year from a variety of sources, Getronics has historically sought to look beyond the metrics and expose the motives and catalysts behind projected activities and behaviors of its current and future clients," said Doug Goodall, Vice President of Global Security Services, Getronics. Further analysis of the study shows that: -- ICT security spending among enterprises will increase for 50 percent of respondents, while 41 percent of respondents expect to maintain current budgets through 2006; -- 40 percent of respondents reported that their security budget had increased by at least 20 percent since 2004. -- of those reporting the distribution of ICT security expense, departments most commonly sharing the bill include legal, finance, operations, and risk management; -- although more than 50 percent of ICT departments are performing annual compliance testing, the majority of departments are not conducting annual security-related compliance activities. "The diverse sources of company security funds illustrate the emergence of security as organizationally pervasive and no longer the sole responsibility of IT," added Mr. Goodall. "With multiple stakeholders within an organization, security has become more complex and more strategic." Getronics' study indicates a need for balance between compliance and warns that organizations not let their operational guard down by sacrificing annual security-related compliance activities in the face of compliance testing. When nearly half of those surveyed mention compliance along with viruses, worms and network intrusions as one of the top four threats to their ICT security, there is cause for concern. The 2006 ICT Security Compliance Survey received responses from information technology and security professionals working in a variety of industries. The annual security study was previously conducted by RedSiren, which Getronics acquired in 2005. As a result of the RedSiren acquisition, Getronics owns and operates the International Information Integrity Institute (I-4), the world's leading information security consortium. About the Company Headquartered in Amsterdam, Netherlands, Getronics N.V. -- http://www.getronics.com/-- designs, integrates and manages ICT infrastructures and business solutions for many of the world's largest global and local companies and organizations, helping them maximize the value of their information technology investments. Getronics has some 27,000 employees in over 30 countries and approximate revenues of EUR3 billion. The company has regional offices in Boston, Madrid and Singapore. Its shares are traded on Euronext Amsterdam. * * * As reported in the Troubled Company Reporter-Europe on March 9, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Dutch IT services group Getronics N.V. to 'B' from 'B+'. At the same time, Standard & Poor's lowered its ratings on Getronics' senior unsecured notes to 'CCC+' from 'B-', still two notches below the corporate credit rating. Standard & Poor's also lowered its ratings on Getronics' EUR300 million senior secured bank loan to 'B' from 'B+', the same as the corporate credit rating. The loan has a '3' recovery rating, indicating our expectation of meaningful (50%-80%) recovery of principal in the event of a payment default. All ratings remain on CreditWatch with negative implications where they were placed on Jan. 19, 2006, following a profit warning. On Sept. 30, 2005, Getronics had gross debt of EUR518 million, including EUR135 million in cumulative preference shares. =========== R U S S I A =========== ALEUSSKOYE: Bankruptcy Hearing Slated for July 26 ------------------------------------------------- The Arbitration Court of Novosibirsk Region will convene at 9:30 a.m., on July 26, to hear the bankruptcy supervision procedure on open joint stock company Aleusskoye (Case No. A45-8/06-29/1). Ms. Z. Orlova has been appointed temporary insolvency manager and can be reached at: Z. Orlova Krasnoobsk, Post User Box 854 630501, Novosibirsk Region, Russia The Debtor can be reached at: Aleusskoye Ordynskiy Region, Ustyuzhanino, Nizhnyaya Str. 2 632295, Novosibirsk Region, Russia AMURSKIY TRANSPORT: Appoints Interim Insolvency Manager ------------------------------------------------------- The Arbitration Court of Amur Region appointed Mr. M. Miroshnichenko temporary insolvency manager of limited liability company Amurskiy Transport (TIN 28001087335). The case is docketed as A04-968/06-6/44 B. The Debtor can be reached at: Amurskiy Transport Blagoveshensk, Koltsevaya Str. 59 Amur Region, Russia The insolvency manager can be reached at: M. Miroshnichenko Blagoveshensk, Lenina Str. 191 675011, Amur Region, Russia CENTERTELECOM: Annual Shareholders' Meeting Slated for June 28 -------------------------------------------------------------- OJSC CenterTelecom established June 28, at 11:00 a.m., as its Annual General Shareholders' Meeting. The meeting will be held at: President - Hotel 24 Bolshaya Yakimanka Street Moscow 119134 Russia The registration of participants will begin at 9:00 a.m. on June 28. The agenda of the meeting include: -- approval of the Annual Report, Annual Financial Statements, including Profit and Loss Report, profit distribution, including dividends payment, and the Company's losses according to the results of the reporting (2005) financial year. -- election of members of the Company's Board of Directors. -- election of members of the Company's Audit Commission. -- approval of the Company's auditor for 2006. -- approval of a new edition of the Company's Charter. -- approval of a new edition of the Regulations on the Company's Board of Directors. -- approval of a new edition of the Regulations on the General Meeting of the Company's Shareholders. -- approval of a new edition of the Regulations on the Company's Audit Commission. -- assessment of annual remuneration to be paid to the members of the Company's Board of Directors. -- discussion on the termination of the Company's participation in the association of payphone operators, equipment manufacturers, research and development, project and design organizations in the field of telecommunications. The list of participants in the Company's Annual General Meeting of Shareholders, will be compiled at 6:00 p.m. on May 12. The completed ballots for voting at the Company's Annual General Meeting must be sent to: 6/2 Degtyarny Side-Street Moscow 125993 Russia The issues of the dividends amount, preliminary approval of annual report, and others, will be discussed at the annual session of the Board of Directors, which will be held May 30. OJSC CenterTelecom -- http://www.centertelecom.ru/eng-- provides fixed-line and mobile communications in the Russian Central Federal District. * * * As reported in TCR-Europe on Feb. 9, Fitch Ratings assigned Issuer Default ratings to companies in the European Telecommunications, Media and Technology sectors. Revised Senior Unsecured ratings now apply to the senior unsecured bond issues of these entities. Centertelecom now carries Fitch's B- rating with a negative outlook. EASTERN GEOPHYSICAL: Bankruptcy Supervision Procedure Begins ------------------------------------------------------------ The Arbitration Court of Tomsk Region has commenced bankruptcy supervision procedure on LLC Eastern Geophysical Company (Case No. A67-16598/05). Mr. S. Lizunov has been appointed temporary insolvency manager and can be reached at: S. Lizunov Govorova Str. 1a 634057, Tomsk Region, Russia The Debtor can be reached at: Eastern Geophysical Company Zaozernyj Per. 16/3 634009, Tomsk Region, Russia KEMEROVO-MOSCOW: Deadline for Proofs of Claim Slated for May 11 --------------------------------------------------------------- Creditors of ore mining company Kemerovo-Moscow have until May 11, to submit their proofs of claims to court-appointed insolvency manager Mr. T. Frank at: Post Office, Post User Box 981 650000, Kemerovo Region, Russia The Arbitration Court of Kemerovo Region commenced bankruptcy proceedings against the open joint stock company with the case docketed as A27-26114/2005-4. The Debtor can be reached at: Kemerovo-Moscow Sovetskiy Pr. 58 650064, Kemerovo Region, Russia KULUNDINSKOYE: Creditors Have Until May 11 to File Claims --------------------------------------------------------- Creditors of Kulundinskoye have until May 11, to file their proofs of claim to court-appointed insolvency manager Mr. Ya. Gomerov at: Krasnoobsk, Post User Box 325 630501, Novosibirsk Region, Russia Tel: 348-60-77 The Arbitration Court of Novosibirsk Region commenced bankruptcy proceedings against the close joint stock company (Case No. A45- 20010/05-29/279). The Debtor can be reached at: Kulundinskoye Kupinskiy Region, Blagoveshenka Novosibirsk Region, Russia NEW WORLD: Claims Filing Period Ends May 11 ------------------------------------------- Creditors of New World Sea-Food have until May 11, to file their proofs of claim to court-appointed insolvency manager Mr. S. Roshin at: Post User Box 45 690105, Vladivostok-105, Russia The Arbitration Court of Primorye Region commenced bankruptcy proceedings against the close joint stock company (Case No. A51- 10466/2005 9-156). The Debtor can be reached at: New World Sea-Food Pologaya Str. 63 Vladivostok Region, Russia OAO GAZPROM: Management Panel Approves 2006 Budget Changes ---------------------------------------------------------- The Management Committee has approved the updated draft budget and investment program of OAO Gazprom for 2006, taking into account information on the consolidated Gazprom and Sibneft budget for 2006. The updated draft budget and investment program are pending endorsement by the Board of Directors. Under the draft budget, overall income & revenues (taking into consideration the account balance as of the start of the reporting period) will stand at RUR2.16 trillion (US$79.4 billion), RUR270.6 billion (US$9.9 billion) up on the budget version endorsed in February 2006. Total expenditures will account for RUR2.2 trillion (US$82.8 billion). Financial borrowings will remain unchanged totaling RUR90 billion, while budgetary surplus at the end of 2006 is projected at RUR850 million (US$31.2 million). The need of making amendments in the budget has been driven by macroeconomic changes (i.e. U.S. dollar rate), conjunctural changes (i.e. growth of hydrocarbon prices) and a number of production & financial forecasts made by the Company. Under the draft investment program, capital investments will grow RUR29.5 billion to RUR307.9 billion with long-term financial investments shrinking RUR27.1 billion to RUR337.2 billion. Boosting capital investments mainly stems from the need of commissioning major production and transmission facilities, under a Plan of synchronized priority infrastructure commissioning inclusive. 2006 Investment Program When drafting its investment program for 2006, Gazprom has taken into account four key development targets: -- 548 bcm of gas production; -- 200 bcm of gas exports including 151 and 286.3 bcm to foreign and domestic consumers, respectively; -- providing the reliability and technological safety of the core businesses; -- maintaining the required level of gas reserves. The top business priorities of Gazprom are: -- building up gas, condensate and oil reserves as scheduled; -- commissioning prominent facilities incorporated in the capital construction projections for 2006; -- initiating construction of key facilities to be brought into operation in 2007; -- de-bottlenecking the United Gas Transmission System; -- upgrading core gas extraction capacities; -- performing design and survey works for prospective investment projects. The Gazprom 2006 investment program encompasses the most crucial investment projects including those aimed at: -- extracting gas (developing the Bovanenkovskoye, Kharasaveyskoye, Yety-Purovskoye, Vyngayakhinskoye, Yen- Yakhinskoye, Urengoyskoye, Zapolyarnoye, Yamburgskoye and other fields); -- constructing and upgrading gas transmission capacities including the North European, Northern Tyumen Region - Torzhok and Yamal-Europe gas pipelines, expanding the Urengoy gas transmission hub, etc.; -- creating underground gas storage capacities; -- creating gas processing capacities. Capital investments are mainly intended for gas production & transmission projects with transmission projects to be funded with 60% of the total investment. About the Company Headquartered in Moscow, Russia, OAO Gazprom -- http://www.gazprom.ru/eng-- produces 94% of the country's natural gas, controls 25% of the world's reserves, and is also the world's largest gas producer. It focuses on gas exploration, processing, transport, and marketing. * * * As reported in the Troubled Company Reporter-Europe on Jan. 18, Standard & Poor's Ratings Services raised its long-term corporate credit rating on OAO Gazprom to 'BB+' from 'BB', in view of an increase in state support, and following the US$7 billion purchase of the company's treasury stock by the Russian state-owned special-purpose vehicle Rosneftegas. 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 US$23 billion (closer to US$28-US$30 billion including subsidiary debt). In particular, this helped the company to prepay US$8 billion of the US$13 billion loan raised to finance the acquisition of Sibneft by the end of 2005. The agency also noted that Gazprom remains subject to general political and emerging market risks related to Russia. The unpredictable nature of Russian government policy, potential investment mandates and still very low regulated domestic gas prices (averaging US$36/mcm in 2005), together with substantial financial debt levels, remain key constraints on the rating on Gazprom. At June 30, 2005, Gazprom had US$22.7 billion of consolidated on-balance-sheet debt, US$2.7 billion in guarantees, and about US$1 billion of postretirement liabilities. RAPSOD TRADE: S&P Assigns B- Rating on Proposed $150-Mln Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-' long-term corporate credit rating to the owner of Russia's second-largest outdoor advertising company, Rapsod Trade Ltd. The outlook is positive. At the same time, Standard & Poor's also assigned its 'B-' rating to the proposed US$150 million senior secured notes issue by Gallery Capital, which is a financing subsidiary of Gallery Group. Gallery Group, through its operating subsidiary Gallery Services LLC, is the owner of Russia's second-largest outdoor advertising company, with a network of more than 6,300 advertising faces across Russia. "The ratings on Gallery Group are constrained by the company's aggressive growth appetite, with an increasing need for capital, and rising financial risk; increasing regulation, requiring adjustments to its business model; intensifying competition in a very fragmented and evolving market; and uncertainties regarding Russia's complex and nontransparent administrative environment," said Standard & Poor's credit analyst Lorenzo Sliusarev. "These risks are somewhat moderated by the company's relatively strong market position with nationwide coverage and notable growth potential; continuing sound revenue, profitability, and cash flow growth; and established relationships with local administrative authorities." There is potential for Gallery Group to materially increase its economies of scale and strengthen its market position and competitiveness in a dynamic and growing market. Nevertheless, the potential improvement of the company's business profile through anticipated acquisitions is subject to execution, integration, and financing risks exacerbated by their significant combined scale. Gallery Group's ability to manage its aggressively increasing exposure to financial risk, marked by a considerable debt increase and constrained financial flexibility, will remain one of the key ratings considerations. "The ratings could be raised if the company is successful in continuing its business expansion, improves its economies of scale, and increases its cash flow generation to provide meaningful compensation for increased financial risks," added Mr. Sliusarev. "Conversely, Gallery Group's aggressive acquisitiveness paired with a deterioration of its financial policy, leading to heightened liquidity risk and deteriorated financial flexibility, would put pressure on the ratings in the absence of any notable improvement of its operating performance." REGION-CONTRACT: Moscow Court Commences Bankruptcy Proceedings -------------------------------------------------------------- The Arbitration Court of Moscow Region commenced bankruptcy proceedings against Region-Contract after finding the close joint stock company insolvent (Case No. A40-79346/05-73-247B). Mr. B. Gusev has been appointed insolvency manager and can be reached at: Kovrov, Partizanskaya Str. 1 601914, Vladimir Region, Russia Tel: (49232) 3-20-17 The Debtor can be reached at: Region-Contract Room 3, Vernadskogo Pr. 93 119526, Moscow Region, Russia STROY-COM: Deadline for Proofs of Claim Set May 11 -------------------------------------------------- Creditors of building company Stroy-Com have until May 11, to submit their proofs of claim to court-appointed insolvency manager Ms. M. Zazertskaya at: Post User Box 5601 443081, Samara Region, Russia The Arbitration Court of Samara Region commenced bankruptcy proceedings against the limited liability company (Case No. A55- 28361/2005-46). The Debtor can be reached at: Stroy-Com Samara Region, Russia URAL-CHER-MET: Perm Court Begins Bankruptcy Proceedings ------------------------------------------------------- The Arbitration Court of Perm Region commenced bankruptcy proceedings against Ural-Cher-Met (OGRN 1025901219410) after finding the close joint stock company insolvent (Case No. A50- 37330/2005-B). Ms. O. Zhalneryunas has been appointed insolvency manager and can be reached at: O. Zhalneryunas Office 17, Kombaynerov Str. 34 614036, Perm Region, Russia The Debtor can be reached at: Ural-Cher-Met Osentsy, Promyshlennaya Str. 145 614000, Perm Region, Russia ZNAMENSKIY MARGARINE: Undergoes Bankruptcy Supervision Procedure ---------------------------------------------------------------- The Arbitration Court of Kaliningrad Region has commenced bankruptcy supervision procedure on open joint stock company Znamenskiy Margarine Producing Factory (Case No. A21- 11086/2005). Creditors are requested to submit their proofs of claim to court-appointed insolvency manager Ms. R. Lapidus at: Gogolya Str. 12-5 236008, Kaliningrad Region, Russia The Debtor can be reached at: Znamenskiy Margarine Producing Factory Shosseynaya Str. 25 Gvardeyskiy Region, Znamensk 238200, Kaliningrad Region, Russia =========== T U R K E Y =========== COCA-COLA ICECEK: Fitch Keeps Foreign Currency Ratings at BB- ------------------------------------------------------------- Fitch Ratings expected no rating impact to result from Turkey- based Coca-cola Icecek's initial public offering, which will be completed in May 2006. CCI's ratings are: a) Foreign Currency Issuer Default rating: BB-; Outlook Positive; b) Foreign Currency Senior Unsecured rating: BB-; c) Local Currency Issuer Default rating: BBB; Outlook Negative; and d) Local Currency Senior Unsecured rating: BBB. Only existing shares will be re-distributed in the IPO and no new shares will be issued by CCI. However, in the IPO, Coca Cola Satis Dagitim, a wholly owned subsidiary of CCI will sell the 5.02% of its share in CCI that was purchased in FY05 from the Ozgorkoy family for approximately US$42 million. Based on the pricing band published today, CCI could expect to receive between YTL75 million and YTL94 million. Including shares sold by CCI, up to 23.18% of the company's share capital is will be placed with retail and institutional investors. The Coca Cola Export Corporation, a subsidiary of the global leader of the carbonated soft drinks industry The Coca Cola Company Inc, would reduce its 35.87% stake in CCI to no less than 20.16% and the Ozgorkey family would further reduce its stake to 5.12%. Anadolu Efes will not modify its 51.22% controlling stake, thus it will continue to fully consolidate CCI in its accounts. The reduced ownership by TCCC is not expected to lead to a change in its involvement in CCI. This involvement supports the current ratings of CCI. The support from TCCC is provided by the presence of well-seasoned TCCC system executives in the management of CCI and the provision of know-how to produce and distribute TCCC brands in Turkey and the other countries of operation of CCI. Furthermore, Fitch is assured by TCCC's established history of supporting its key bottlers via the terms of payment for concentrate product supplied, foregoing dividends when appropriate, and, in extreme need, recapitalization. Fitch notes that CCI's CEO referred in yesterday's press conference to a significant increase of capital expenditure in FY06 to YTL183 million. The agency will meet with CCI's management by the end of H106 in order to obtain more details about the progression of capital expenditure after FYE06. ULKER GIDA: Moody's Assigns B1 Corporate Family Rating ------------------------------------------------------ Moody's assigned a B1 corporate family rating to Ulker Gida San. Tic. A.S. The outlook is stable. The B1 corporate family rating reflects: -- the company's very strong leadership in the Turkish market for biscuits and related products where the company's market shares appear steady on the whole, as foreign competition in the market remains minimal; -- the company's existing and expected leverage which remain quite conservative for the rating; -- its fairly conservative growth targets; iv) the company's improving margins; and -- the generally positive outlook for the Turkish economy. The main constraints to the rating are: -- Ulker's ownership and organizational structure, which Moody's views as complex and characterized by significant related party transactions; -- the company's sales concentration in Turkey, albeit the environment is currently favorable; and -- the company's limited track record of comparable results, in light of recent acquisitions of production facilities, deconsolidation of certain business and the recent adoption of IFRS. To date, the company's borrowings have been predominantly short- term and predominantly in US$, due to the higher carrying cost of YTL debt. Moody's expects that going forward the company will seek to lengthen the maturity profile of its borrowings. Moody's notes, however, that transactions with related parties have resulted in significant volatility in cash flows in 2005, notably with Yildiz Holding, the company's largest shareholder. This implies that liquidity could going forward be impacted by the policies of its main shareholder. The outlook is stable, reflecting Moody's expectation that there will be no imminent change to the company's financial strategy or operating performance. The Ulker Group is currently undergoing a significant structural realignment, with the end result being that Ulker Gida, one of its operating subsidiaries, has a limited track record of comparable operations and accounts. Therefore, a longer track record of comparable operating and financial results, supported by a trend of creditor friendly financial policies, could be positive for the ratings. A change in financial strategy to accelerate geographical expansion, or a sharp downturn in domestic demand, could be among the factors that would negatively impact the ratings. Headquartered in Istanbul, Turkey, Ulker Gida is the market leader in the manufacturing of biscuits, chocolate and crackers. It is a sub-division of the broader Ulker Group, whose activities span food production, packaging, and domestic and foreign marketing. In 2005, the company reported net sales of YTL1.4 billion (US$1 billion) and EBITDA of YTL143 million (US$106 million). ============= U K R A I N E ============= DNIPRO-SPORT-EXPRESS: Court Names V. Oksana Insolvency Manager -------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Venska Oksana Liquidator/Insolvency Manager for LLC Dnipro-Sport- Express (code EDRPOU 19098036). The Court commenced bankruptcy proceedings against the company (Case No. B 29/6/06) on Feb. 13, after finding it insolvent. Ms. Oksana can be reached at: Rilskij Str. 137 Dnipropetrovsk Region 49016 Ukraine The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a Dnipropetrovsk Region 49600 Ukraine The Debtor is headquartered in: Zhurnalistiv Str. 7, Room 308 Dnipropetrovsk Region 49051 Ukraine ELEGANT-FARM: Kyiv Court Starts Bankruptcy Supervision ------------------------------------------------------ The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC Elegant-Farm (code EDRPOU 32048022) on March 17. The case is docketed as 43/184. Zaharchuk Vitalij has been appointed Temporary Insolvency Manager. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B Kyiv Region 01030 Ukraine The Debtor is headquartered in: Vernadskij Str. 79 Kyiv Region 03142 Ukraine IMPERANT: Kyiv Court Opens Bankruptcy Proceedings ------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy proceedings against LLC Imperant (code EDRPOU 32111921) on March 16, after finding the company insolvent. The case is docketed as 43/157. Mr. P. Bokarev has been appointed Liquidator/Insolvency Manager. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B Kyiv Region 01030 Ukraine The Debtor is headquartered in: Strokach Str. 1 Kyiv Region Ukraine KOLOS SOF: Court Names Dmitro Selevko Interim Insolvency Manager ---------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Dmitro Selevko as Temporary Insolvency Manager for LLC Kolos Sof (code EDRPOU 31648766). He can be reached at: Krivij Rig, a/b 1221 Dnipropetrovsk Region 50027 Ukraine The Court commenced bankruptcy supervision procedure on the company (Case No. B 15/16/06). The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a Dnipropetrovsk Region 49600 Ukraine The Debtor is headquartered in: Novooleksiyivka, Lermontov Str. Sofiyivskij District Dnipropetrovsk Region 53100 Ukraine RADUN: Kyiv Court Names Mr. E. Kondra Liquidator ------------------------------------------------ The Economic Court of Kyiv Region appointed Mr. E. Kondra as Liquidator/Insolvency Manager for LLC Building Company Radun (code EDRPOU 32981368). Mr. Kondra can be reached at: Kyiv Region, a/b 43 01032 Ukraine The Court commenced bankruptcy proceedings against the company on March 16 (Case No. 43/880), after finding the company insolvent. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B Kyiv Region 01030 Ukraine The Debtor is headquartered in: Mihajlo Grushevskij Str. 28/2-A Kyiv Region Ukraine SEK-TE: Court Names Volodimir Glyadchenko as Insolvency Manager --------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Volodimir Glyadchenko as Liquidator/Insolvency Manager for LLC Sek-Te (code EDRPOU 33063083). He can be reached at: Kirov Avenue 96/13 Dnipropetrovsk Region 49055 Ukraine The Court commenced bankruptcy proceedings against the company on March 6 (Case No. B 40/21/06), after finding it insolvent. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a Dnipropetrovsk Region 49600 Ukraine The Debtor is headquartered in: Pidgorodne, Naberezhna Str. 50 Dnipropetrovsk District Dnipropetrovsk Region 52001 Ukraine SHUMSKIJ AGROBUD: Court Names Vasil Taras Liquidator ---------------------------------------------------- The Economic Court of Ternopil Region appointed Taras Vasil as Temporary Insolvency Manager for JSCCT Shumskij Agrobud (code EDRPOU 03586733). He can be reached at: Rodini Barvinskih Str. 7 Ternopil Region 46001 Ukraine The Court has commenced bankruptcy supervision procedure on the company (Case No. 17/B-720). The Economic Court of Ternopil Region is located at: Ostrozski Str. 14a Ternopil Region 46000 Ukraine The Debtor is headquartered in: Shumsk, Vilijska Str. 1 Ternopil Region Ukraine UKRTRANSMASH: Kyiv Court Opens Bankruptcy Proceedings ----------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy proceedings against LLC Ukrtransmash (code EDRPOU 32111921) on March 16, after finding the company insolvent. The case is docketed as 43/158. Mr. K. Tsikaluk has been appointed Liquidator/Insolvency Manager. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B Kyiv Region 01030 Ukraine The Debtor is headquartered in: Yakutska Str. 9 Kyiv Region Ukraine =========================== U N I T E D K I N G D O M =========================== ALCHEMY ANIMEDIC: Hires Administrator from Houghton Stone --------------------------------------------------------- Simon Thornton of Houghton Stone Business Recovery was appointed administrator of Alchemy Animedic Limited (Company Number 03719038) on April 19. Houghton Stone Business Recovery -- http://houghtonstone.co.uk/ -- offers accountancy and business development services to small and medium sized owner managed businesses. Headquartered in Langport, England, Alchemy Animedic Limited -- http://www.animedic.co.uk/-- designs and builds animal transportation vehicles including veterinary ambulances and mobile surgeries. ATLANTIC DISTRIBUTIONS: Appoints Armstrong Watson Administrator --------------------------------------------------------------- M. C. Kienlen of Armstrong Watson was appointed administrator of Atlantic Distributions Limited (Company Number 04596725) on April 13. The administrator can be reached at: Armstrong Watson Central House 47 St Paul's Street Leeds LS1 2TE United Kingdom Tel: 0113 384 3840 Fax: 0113 384 3841 E-mail: mike.lienlen@armstrongwatson.co.uk Atlantic Distributions Ltd. can be reached at: Unit 10 Penraevon ST Leeds LS7 2AW United Kingdom Tel: 087-0011-6914 CARD CRAZY: Taps Cowgill Holloway to Administer Assets ------------------------------------------------------ Gary Bell of Cowgill Holloway Business Recovery LLP was appointed administrator of Card Crazy (2000) Limited (Company Number 3807814) on April 12. Cowgill Holloway Business Recovery -- http://www.cowgills.co.uk/ -- specializes in business rescue and insolvency matters. Card Crazy (2000) Limited is a distributor of greetings cards and gift items. It can be reached at: Girt Tree 42 The Idlewells Sutton-In-Ashfield Nottinghamshire NG17 1BP United Kingdom Tel: 01623559799 DALES QUALITY: Appoints Kroll Limited Administrator --------------------------------------------------- C. P. Holder and S. C. E. Mackellar of Kroll Limited were appointed joint administrators of The Dales Quality Meat Company Limited (Company Number 04585917) on April 18. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The Dales Quality Meat Company Limited -- http://www.dalesqualitymeat.co.uk/-- sells meat and meat products. It can be reached at: The Mart Office Burtersett Road Hawes DL8 3NP United Kingdom GLOBAL AVIATION: Creditors Resolve to Liquidate Company's Assets ---------------------------------------------------------------- Creditors of Global Aviation Support Limited resolved to liquidate the company's assets after proving that the company could no longer continue its operations due to mounting debts. Subsequently, they appointed Jeremiah Anthony O'Sullivan, of Bishop Fleming, as Liquidator. Bishop Fleming -- http://www.bishopfleming.co.uk/-- is one of the biggest firms of Chartered Accountants for South West U.K. businesses that demand expert accounting and financial accounts management. The company can be reached at: 110 High Street Nailsea Bristol BS48 1AH United Kingdom Tel: 01275 850 990 Fax: 01275 791 112 Web: http://www.globalaviation.biz/ HMV GROUP: Founder Drops GBP280-Mln Bid to Buy Back Waterstone's ---------------------------------------------------------------- Tim Waterstone dropped his bid to buy back Waterstone's from HMV Group PLC a week after submitting his GBP280 million offer. Mr. Waterstone, who founded the book chain in 1982, argued that the pre-conditions set down by HMV Group, which included a 14- day due diligence, is unacceptable, the Associated Press reports. The bidding consortium is comprised of Mr. Waterstone, former Penguin Group CEO Anthony Forbes Watson and Lazard Private Equity Partners. Mr. Waterstone indicated, however, that he could renew his offer if the preconditions were abandoned. Sarah Butler of The Times Online reports that Mr. Waterstone has lined up a new management team with himself as chairman and Mr. Watson as CEO in the takeover. Lazard notified HMV's Board of Directors that it withdrew its support for Mr. Waterstone's attempt to acquire the book chain. Mr. Waterstone indicated his interest in Waterstone's to the Board in February 2006. His proposal was conditional upon HMV not pressing ahead with its planned purchase of rival book chain Ottakar's, Karl West writes for The Herald. "I don't like what's happening to Waterstone's in its decline of market share and I don't like the Ottakar's merger," Mr. Waterstone said. On March 30, the Competition Commission gave provisional clearance for a potential combination between Waterstone's and Ottakar's which the Board continues to believe provides a potentially value enhancing opportunity for shareholders. The Board is awaiting the formal Competition Commission decision then it will consider its position. About the Company Headquartered in the U.K., HMV Group PLC -- http://www.hmvgroup.com/-- operates 580 stores in 8 different countries under two powerful retail brands (HMV and Waterstone's). On March 31, 2005, the Group completed a refinancing of its senior bank facilities, creating a more efficient capital structure. A five-year GBP260 million revolving credit facility was arranged, replacing an existing GBP150 million revolving credit facility, together with outstanding term debt of GBP160 million which was repaid in full. Consequent to the refinancing, GBP2.7 million of unamortized deferred financing fees were written-off in the financial year to April 30, 2005, as a non-cash exceptional interest charge. At Oct. 29, 2005, the company's balance sheet showed GBP49.7 million in stockholders' deficit, compared with a GBP14.4 million stockholders' deficit at Apr. 30, 2005. INHURST LIMITED: Hires Joint Administrators from S. F. Plant ------------------------------------------------------------ Simon Franklin Plant and Daniel Plant of S. F. Plant were appointed joint administrators of Inhurst Limited (Company Number 03839152) on April 19. The joint administrators can be reached at: S. F. Plant 9 Ensign House Admirals Way, Marsh Wall London E14 9XQ Tel: 01275 850 990 Inhurst Limited offers general mechanical engineering service and employs 30 people. It can be reached at: Romany Wks Wareham Road Holton Heath Poole Dorset BH16 6JL United Kingdom Tel: 01202 623822 Fax: 01202 632354 INMARSAT FINANCE: S&P Raises US$760 Million Debt Ratings to B+ -------------------------------------------------------------- Standard & Poor's Ratings Services raised Inmarsat Finance PLC's US$310 million senior unsecured notes and the US$450 million senior subordinated discount notes issued by Inmarsat Finance II PLC were raised to B+ from B. The rating on Inmarsat Investments Ltd.'s senior secured $550 million bank loan was raised to BB+ from BB, and the 1 recovery rating on the bank loan was affirmed. At the same time, S&P raised its long-term corporate credit ratings on U.K.-based mobile satellite services provider Inmarsat Ventures Ltd. and related entities to 'BB' from 'BB-', due to its expectation that the group will generate sufficient free operating cash flow to cover dividend payments from 2006 and will grow revenues and EBITDA as commercial use of its high- speed broadband global area network services increases over time. The outlook is stable. "The upgrade primarily reflects the improved visibility regarding Inmarsat's near-term cash flow generation given the successful launch of the second of its two Inmarsat-4 satellites," said Standard & Poor's credit analyst Michael O'Brien. Growth in cash flow generation in line with the group's core business plan is predicated on growth, primarily from 2007 onward, of revenues from its BGAN services and a substantial lowering of capital expenditures after 2006. This is because the group's I-4 satellites have all been built and only the third I-4 satellite needs to be launched over the next five years, at a cost of about $140 million. In addition, S&P expects that Inmarsat will be able to cover dividend payments in line with its dividend policy, which is based on normalized capital expenditures -- currently estimated at about $110 million per year -- paid for with FOCF. S&P expects Inmarsat will be able to cover dividend payments from FOCF generation and will maintain adequate liquidity via its undrawn revolving credit facility to cover any temporary weaknesses in revenues due to higher competition, particularly in the land segment. Standard & Poor's also expects substantial improvements in FOCF generation through 2006 and 2007 not to be overly impaired by cash outgoings related to the eventual launch of the third I-4 satellite or capital expenditures related to other revenue growth possibilities, such as handheld telephony or ancillary terrestrial component revenues. Significant operational underperformance due to higher-than- expected competition, satellite failure, or the introduction of a more aggressive financial policy or change in capital structure -- given that the senior notes are callable from 2008 -- could lead to negative rating actions. There is, at present, no further near-term ratings upside, given the company's business risk profile considerations. INMARSAT VENTURES: S&P Raises Corporate Credit Ratings to BB ------------------------------------------------------------ Standard & Poor's Ratings Services raised its long-term corporate credit ratings on U.K.-based mobile satellite services provider Inmarsat Ventures Ltd. and related entities to 'BB' from 'BB-', due to its expectation that the group will generate sufficient free operating cash flow to cover dividend payments from 2006 and will grow revenues and EBITDA as commercial use of its high-speed broadband global area network services increases over time. The outlook is stable. At the same time, the ratings on related entity Inmarsat Finance PLC's US$310 million senior unsecured notes and the US$450 million senior subordinated discount notes issued by Inmarsat Finance II PLC were raised to B+ from B. The rating on Inmarsat Investments Ltd.'s senior secured $550 million bank loan was raised to BB+ from BB, and the 1 recovery rating on the bank loan was affirmed. "The upgrade primarily reflects the improved visibility regarding Inmarsat's near-term cash flow generation given the successful launch of the second of its two Inmarsat-4 satellites," said Standard & Poor's credit analyst Michael O'Brien. Growth in cash flow generation in line with the group's core business plan is predicated on growth, primarily from 2007 onward, of revenues from its BGAN services and a substantial lowering of capital expenditures after 2006. This is because the group's I-4 satellites have all been built and only the third I-4 satellite needs to be launched over the next five years, at a cost of about $140 million. In addition, S&P expects that Inmarsat will be able to cover dividend payments in line with its dividend policy, which is based on normalized capital expenditures -- currently estimated at about $110 million per year -- paid for with FOCF. S&P expects Inmarsat will be able to cover dividend payments from FOCF generation and will maintain adequate liquidity via its undrawn revolving credit facility to cover any temporary weaknesses in revenues due to higher competition, particularly in the land segment. Standard & Poor's also expects substantial improvements in FOCF generation through 2006 and 2007 not to be overly impaired by cash outgoings related to the eventual launch of the third I-4 satellite or capital expenditures related to other revenue growth possibilities, such as handheld telephony or ancillary terrestrial component revenues. Significant operational underperformance due to higher-than- expected competition, satellite failure, or the introduction of a more aggressive financial policy or change in capital structure -- given that the senior notes are callable from 2008 -- could lead to negative rating actions. There is, at present, no further near-term ratings upside, given the company's business risk profile considerations. J. & P. ATCHISON: Hires David Rubin & Partners Administrator ------------------------------------------------------------ Asher Miller and David Rubin of David Rubin & Partners were appointed joint administrators of J. & P. Atchison Limited (Company Number 00803351) on April 10. David Rubin & Partners -- http://www.drpartners.com/-- specializes in corporate and personal insolvency, recovery, forensic accounting and litigation support. Headquartered in London, J. & P. Atchison Limited offers printing services. It can be contacted at 020 8523 3191. JAMES ELEY: Hires Antony Batty to Administer Assets --------------------------------------------------- W. A. Batty of Antony Batty & Company was appointed administrator of James Eley & Son Limited (Company Number 03998653) on April 13. Its registered office is at 23 Edgefield, Weston, Spalding, Lincolnshire PE12 6RQ. The administrator can be reached at: Antony Batty & Company 3 Field Court Grays Inn London WC1R 5EF United Kingdom Tel: 020 7831 1234 Fax: 020 7430 2727 E-mail: antonybatty@hotmail.com James Eley & Son Ltd. operates a real estate agency. It can be reached at: 26 Wide Bargate Boston Lincolnshire PE21 6RX United Kingdom Tel: 01205 361687 K J SOLUTIONS: Appoints P&A Partnership Administrator ----------------------------------------------------- Christopher Michael White and Allan Cooper of The P&A Partnership were appointed joint administrators of K J Solutions Limited (Company Number 04968122) on April 5. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- acts for all clearing banks and a growing number of factors and asset lenders. Its clients include multinational PLCs, SMEs, financial institutions, accountants, solicitors and business advisors K J Solutions Ltd. manufactures plastic packaging and can be reached at: 19-21 Weaver House Chapel Road London SE27 0TP Tel: 02087610607 KENNEDY'S KARDS: Taps Administrator from Cowgill Holloway --------------------------------------------------------- Gary Bell of Cowgill Holloway Business Recovery LLP was appointed administrator of Kennedy's Kards Limited (Company Number 01708665) on April 12. Cowgill Holloway Business Recovery -- http://www.cowgills.co.uk/ -- specializes in business rescue and insolvency matters. The company sells greeting cards and gift items. It can be reached at: 59A Derby Street Cheetham Hill Manchester M8 8HB United Kingdom LLOYD DAVIES: Taps Begbies Traynor to Administer Assets ------------------------------------------------------- S. L. Conn and P. Stanley of Begbies Traynor were appointed joint administrators of Lloyd Davies Contracts Limited (Company Number 04301287) on April 6. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Lloyd Davies Contracts Limited offers computer system service. LUCITE INTERNATIONAL: S&P Affirms BB Corp. Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on U.K.-based Lucite International Group Holdings Ltd. and removed it from CreditWatch, where it was originally placed on Jan. 31. The outlook is negative. This is owing to the likelihood that Lucite's private equity owner, Charterhouse, will not continue the sale process of the company. "The removal from CreditWatch and the assignment of a negative outlook reflects our expectation that Charterhouse's strategic alternatives for its investment in Lucite could result in an increased leverage, which could negatively influence the company's credit profile," said Standard & Poor's credit analyst Khaled Zitouni. Lucite, with sales of GBP780 million in 2005, produces, markets and distributes methacrylate monomers (MMAs), the principal building block of acrylics, and derived acrylic-based polymers, resins, sheets, and composites. Products are sold worldwide, including through several own brands. Lucite has 17 facilities located in the Americas, Europe, Africa, and Asia. The ratings continue to reflect Lucite's satisfactory business risk profile. With about a 38% share of the merchant market -- products sold externally, in contrast with products used internally -- and a 25% share of world production, Lucite is by far the global leader for methacrylate monomers. The MMA business contributed about 60% of the group's 2005 sales and 88% of EBITDA. Lucite is also a strong player in the downstream- acrylics market (40% of revenues), in which it benefits from a diverse end-user base. The ratings remain constrained primarily by Lucite's financial profile, notably by its leveraged capital structure and limited free operating cash flow (FOCF) base, about EUR22 million both in 2005 and 2004. In 2005, Lucite's debt ratios were in line with the current rating: at year-end, funds from operations-to- net debt was stable at 20%, and FOCF-to-net debt was also stable at 6%. Total debt was not diminished in 2005, remaining at about GBP330 million at year-end. M & P ASPHALT: Creditors Pass Winding Up Resolution --------------------------------------------------- M & P Asphalt Limited is liquidating its assets after creditors passed a resolution to wind up the company's operations during members' extraordinary general meeting on March 8. Peter Anthony Jackson was appointed Liquidator. The company can be reached at: M & P Asphalt Limited Unit 3 Rainford Industrial Estate Jethro St Bolton Lancashire BL2 2PT United Kingdom Tel: 01204 403336 MISYS PLC: Transfers 6,666 Shares to Scheme Participants -------------------------------------------------------- Misys plc transferred 6,666 ordinary shares on May 2, to participants in its employee share schemes at a price of 175 pence per share. The shares were all formerly held as treasury shares. In addition, the Company also cancelled 2,000,000 shares held in Treasury, on the same date. Following the transfer and cancellation of shares out of Treasury, Misys plc holds a total of 52,416,977 ordinary shares in Treasury. The total number of ordinary shares in issue, excluding Treasury shares, is 499,310,059. Headquartered in the United Kingdom, Misys PLC -- http://www.misys.com/-- provides industry-specific software serving the international banking and healthcare industries and the UK general insurance industry. At Nov. 30, 2005, the company reported GBP155.6 million in total stockholders' deficit. NATUREDOWN LIMITED: Appoints Elizabeth Arakapiotis as Liquidator ---------------------------------------------------------------- Elizabeth Arakapiotis, of Kallis & Co, was appointed Liquidator of Naturedown Limited after creditors agreed to wind up the company on March 9. Director D. Shall disclosed that the company could no longer continue its business due to mounting debts. Kallis & Company -- http://www.kallis.co.uk/ -- provides insolvency advice to companies in financial difficulties. The company can be reached at: Naturedown Limited 28 Leafield Rise Two Mile Ash Milton Keynes MK8 8BU United Kingdom Tel: 01908 561 543 Fax: 01908 261 643 NORVALLS LIMITED: Hires Rothman Pantall Administrator ----------------------------------------------------- R. D. Smailes and S. B. Ryman of Rothman Pantall & Co were appointed joint administrators of Norvalls Limited (Company Number 00554924) on April 3. Its registered office is at 266 York Way, London N7 9PQ. Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was established in 1955 as a general accountancy practice, and has grown to its present 18 offices across the South of England. Norvalls Ltd. offers printing service and can be reached at: 266 York Way London N7 9PQ United Kingdom Tel: 02076098585 P.M.A STEELS: Creditors Confirm Voluntary Liquidation ----------------------------------------------------- Creditors of P.M.A. Steels Limited confirmed the company's voluntary liquidation after creditors passed a winding up resolution on March 14. Creditors also ratified the appointment of Jonathan Elman Avery- Gee as Liquidator. The company can be reached at: P.M.A. Steels Limited 3 Booton Court Kidderminster Worcestershire DY10 2YZ United Kingdom Tel: 01562 609 42 PC IQ: Appoints Portland Business & Financial Administrator ----------------------------------------------------------- James Richard Tickell and Carl Derek Faulds of Portland Business & Financial Solutions Ltd. were appointed joint administrators of PC IQ Limited (Company Number 05084458) on April 18. The joint administrators can be reached at: Portland Business & Financial Solutions Ltd. 1640 Parkway Solent Business Park Whiteley Fareham Hampshire PO15 7AH Tel: 01489 550 440 E-mails: carl.faulds@portland-solutions.co.uk james.tickell@portland-solutions.co.uk PC IQ Limited -- http://www.pciq.biz/-- is U.K.'s national network of local computer experts. Its services include home and business support, networks & data cabling, wireless networks, internet and broadband installation, website design & hosting, leasing & rental, software solutions, training, Apple Mac support, consumables, printer repair & maintenance, data security and virus repair. PRESTON PRINTERS: Begins Winding Up Operations ---------------------------------------------- Preston Printers Limited is winding up its operations after creditors decided to liquidate the company's assets on March 8. Peter John Windatt and Gary Steven Petit, both of BRI Business Recovery and Insolvency, were appointed Joint Liquidators. BRI Business Recovery and Insolvency -- http://www.briuk.co.uk/ -- is an independent company of insolvency practitioners. The company can be reached at: Preston Printers Limited Preston House Petworth Road Haslemere Surrey GU27 2HR United Kingdom Tel: 01428 654 941 Fax: 01428 654 769 Web: http://www.prestonprinters.com/ PRO ACTIVE: Creditors Agree to Liquidate Company's Assets --------------------------------------------------------- Creditors of Pro Active Claims Limited agreed to liquidate the company's assets during members' extraordinary general meeting on March 10. They appointed Alan H. Tomlinson as Liquidator. The company can be reached at: Pro Active Claims Limited 14 Milkstone Road Rochdale Lancashire OL11 1ED United Kingdom Tel: 01706 640 313 R.F. FIELDING: Hires Joint Administrators from Milner Boardman --------------------------------------------------------------- Colin Burke and Gary Corbett of Milner Boardman & Partners were appointed joint administrators of R.F. Fielding Cheshire Limited (Company Number 02021767) on April 20. Milner Boardman -- http://www.milnerboardman.co.uk/-- is an independent firm of chartered accountants and business advisers. R.F. Fielding Cheshire Limited offers freight transport by road service. It can be reached at: Dean Farm King Street Woodford Cheshire SK7 1RL United Kingdom RANK GROUP: Buys Back 1 Million Shares for Cancellation ------------------------------------------------------- The Rank Group PLC bought back 1 million ordinary shares of 10 pence in the Company on May 2, for cancellation at an average price of 227.176 pence per share. Headquartered in London, Rank Group PLC -- http://www.rank.com/ -- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * As reported in the Troubled Company-Europe on March 8, Moody's Investors Service assigned a Ba2 corporate family rating to The Rank Group Plc and concurrently downgraded the senior unsecured long-term debt ratings of Rank Group Finance Plc (guaranteed by The Rank Group Plc) to Ba2 (from Baa3). At the same time, Fitch Ratings downgraded The Rank Group PLC's Long-term Issuer Default rating and Senior Unsecured ratings to BB- from BB+ and removed them from Rating Watch Negative. A Negative Outlook is assigned. The Short-term rating is affirmed at B. The downgrade follows the disposal of its film processing business, Deluxe Film, and confirmation of a return of capital to shareholders announced in conjunction with its 2005 preliminary results. In addition, Standard & Poor's Ratings Services lowered its long- and short-term corporate credit ratings on U.K.-based diversified leisure and entertainment company The Rank Group PLC to 'BB-/B' from 'BBB-/A-3'. S&P said the outlook is stable. RANMAC EMPLOYMENT: Taps Jeffrey Mark Brenner to Liquidate Assets ---------------------------------------------------------------- Jeffrey Mark Brenner, of B & C Associates, was appointed Liquidator of Ranmac Employment Agency and Secure Services Limited after creditors passed a resolution to wind up the company on March 9. The voluntary liquidation came as a result of the Debtor's inability to continue its business due to its liabilities. The company can be reached at: Ranmac Employment Agency And Secure Services Limited 801 Old Kent Rd London SE15 1NX United Kingdom Tel: 020 7639 3900 REFCO INC: BAWAG Settles US$1.3 Billion Suit with Creditors ----------------------------------------------------------- As widely reported, BAWAG P.S.K. (Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse Aktiengesellschaft) reached a settlement agreement over a US$1.3 billion suit filed by the Official Committee of Unsecured Creditors of Refco, Inc. Terms of the agreement were not disclosed. "All potential claims from the U.S. are off the table with this solution," BAWAG's Chief Executive Officer Ewald Nowotny said at a news conference on May 1, in Vienna, Austria. When asked whether the bank settled for $675 million, Mr. Nowotny said, "I won't deny that." Refco Committee's Claims As previously reported, BAWAG commenced in November 2005 an adversary proceeding against Phillip Bennett, certain of the Debtors, including Refco Group Limited, LLC, and other unnamed corporations, alleging that BAWAG was fraudulently induced to loan approximately US$420,000,000 to one or more of the defendants in October 2005. The Creditors Committee sought and obtained the Court's authority to intervene in the Adversary Proceeding to ensure that the estate's resources are not diverted from innocent creditors. The Creditors Committee intends to recover from BAWAG funds transferred in fraud of RGL's creditors and damages. The Creditors Committee, on RGL's behalf, asserted counterclaims against BAWAG for: (1) recovery of fraudulent transfers subsequently distributed by Refco Group Holdings, Inc., to BAWAG totaling US$1.3 billion (2) unjust enrichment; and (3) aiding and abetting of Mr. Bennett's breach of his fiduciary duties to RGL in connection with the consummation of a leveraged capitalization. According to Scott A. Edelman, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, the Committee's counsel, BAWAG assisted Mr. Bennett in consummating the leveraged capitalization of RGL, through which both Mr. Bennett and BAWAG cashed out, while at the same time, increasing RGL's debt obligations to $1.4 billion. The Creditors Committee said the Fraudulent Transfers (i) were made by RGL while insolvent, (ii) rendered RGL insolvent, or (iii) left RGL with unreasonably small capital. Mr. Edelman argued that BAWAG was fully aware of the harm that Mr. Bennett was inflicting on RGL and actively assisted Mr. Bennett in consummating the transactions as a means of accomplishing BAWAG's own payday. The Committee asked the Court to: (a) dismiss the Adversary Proceeding and deny all relief requested by BAWAG; (b) equitably subordinate BAWAG's claim pursuant to Section 510(c) of the Bankruptcy Code; (c) declare that the fraudulent transfers are avoidable; (d) award RGL judgment against BAWAG in an amount not less than $1.3 billion as recovery of the Subsequent Transfers; (e) preserve RGL's transfers for its estate; and (f) award RGL interest commencing on the date of transfers, as well as damages in an amount to be determined at trial. Judge Drain Freezes BAWAG Assets At the Creditors Committee's request, Judge Drain issued an interim order on April 25, restraining and enjoining BAWAG and any financial institution or custodian with assets belonging to or in the name of BAWAG from transferring or taking any other action with respect to BAWAG's assets in the United States. However, parties may make transfers in the ordinary course of business in connection with BAWAG's role as gateway operator in Austria for the FedACH International Transatlantic Service, so long as, with respect to any transfer, BAWAG has no right to retain, encumber or otherwise possess the transferred amount. Judge Drain directed the United States Marshal for the Southern District of New York, or any person appointed by him to act in his place, to levy within the jurisdiction immediately on the property in which BAWAG has an interest, including but not limited to, any debt owed to BAWAG as will satisfy the $1.3 billion. Judge Drain also required BAWAG to promptly produce to the Committee the documents to identify all accounts or banks established by BAWAG as well as the amount and location of BAWAG's assets within the U.S. BAWAG is also required to produce a witness with knowledge of the assets. Modified TRO Reuters reports that the Bankruptcy Court issued a modified TRO on Monday, authorizing BAWAG to resume its transfers out of the U.S. The Court, however, named four specific accounts that are required to keep a minimum of US$1.16 billion of BAWAG assets. BAWAG and Refco agreed to the modified order, contingent on another agreement that was filed under seal, Reuters says. BAWAG also produced specified documents and presented witness to the Committee. Headquartered in Vienna, Austria, BAWAG P.S.K., formally known as Bank Fuer Arbeit und Wirtschaft AG, had total assets of EUR56.3 billion as of Dec. 31, 2004. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. (Refco Bankruptcy News, Issue No. 29; Bankruptcy Creditors' Service, Inc., 215/945-7000). REFCO INC: 3 Creditors File Reclamation Demand to Recover Assets ---------------------------------------------------------------- ICIS Trading, Inc., Global Partners Emerging Markets S.A., and Inverunion S.A. Casa de Bolsa each filed with the U.S. Bankruptcy Court for the Southern District of New York a notice of delivery of a written demand made on Refco Inc. and its debtor-affiliates to recover assets that are subject to reclamation under Section 546(c) of the Bankruptcy Code. On behalf of the Claimants, David LeMay, Esq., at Chadbourne & Parke LLP, in New York, relates that the assets were sold in the ordinary course of the creditors' businesses and delivered on credit terms to, and received by, the Debtors during the 45-day period before the Petition Date. The creditors believe that the Debtors were insolvent at the time they received delivery of those assets. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. (Refco Bankruptcy News, Issue No. 29; Bankruptcy Creditors' Service, Inc., 215/945-7000). REGAL ENGINEERS: Brings In Administrators from Bond Partners LLP ---------------------------------------------------------------- T. Papanicola of Bond Partners LLP was appointed administrators of Regal Engineers & Contractors Limited (Company Number 03822989) on April 6. Its registered office is at Unit 3, Renwick Court, Gateshead, Tyne and Wear NE8 2SY. The administrator can be reached at: Bond Partners LLP The Grange 100 High Street London N14 6TG Tel: 020 8444 2000 Fax: 020 8444 3400 Regal Engineers installs electrical wiring service and can be reached at: Unit 3, Renwick Court Victoria Road Gateshead Tyne And Wear NE8 2SY United Kingdom Tel: 01914605151 REGENERATE LIMITED: Creditors Affirm Voluntary Liquidation ---------------------------------------------------------- Creditors of Regenerate Limited affirmed the company's voluntary liquidation after a winding up resolution was passed during member's extraordinary general meeting on March 7. Subsequently, Michael R. Ellingworth was appointed Liquidator. The company can be reached at: Regenerate Limited Settie, Kippen Stirling FK8 3HN United Kingdom Tel: 01786 870 070 ROWCROFT LIMITED: Financial Woes Trigger Liquidation ---------------------------------------------------- Rowcroft (U.K.) Limited is winding up its operations after creditors found out that the company could no longer continue its operations due to mounting debts. Gagen Dulari Sharma was appointed Liquidator. The company can be reached at: Rowcroft (U.K.) Limited Unit Z Austin Way Birmingham B42 1DF United Kingdom Tel: 0121 358 7111 ROYAL & SUNALLIANCE: Sets 1.87% Fixed Spread to New Tier 1 Bonds ---------------------------------------------------------------- Royal & SunAlliance Insurance Group PLC has set a fixed spread of 1.87% over the bid-side yield of the U.K. Treasury 4.75% due Sep 7 2015, to determine the coupon of the new sterling perpetual guaranteed bonds which was issued in exchange for any or all of its U.S. dollar-subordinated bonds. The key dates for the transaction are: -- May 5: Pricing and Expiration of the exchange offer; -- May 12: Settlement R&SA may issue additional sterling perpetual guaranteed bonds on the settlement date and any such new proceeds would be used to support the Group's general insurance activities. On April 20, Royal & SunAlliance Insurance Group PLC offered to exchange any or all of its US$500 million 8.95% subordinated guaranteed bonds for sterling perpetual guaranteed bonds to improve its balance sheet and strengthen further the regulatory capital position of the Group. About the Company Based in London, Royal & SunAlliance Insurance Group PLC -- http://www.royalsunalliance.com/-- is a FTSE 100 company, listed on the London Stock Exchange and in New York. The group consists of three regions -- U.K., Scandinavia and International -- with operations in 30 countries, providing general insurance products to over 20 million customers worldwide. * * * As reported in the Troubled Company Reporter-Europe on March 27, Standard & Poor's Ratings Services lowered its counterparty credit and insurer financial strength ratings on Royal & Sun Alliance Insurance Group PLC's U.S. insurance operations (RSA USA) to 'BB' from 'BB+'. S&P said the outlook remains negative. At the same time, the ratings were withdrawn at the request of the companies' management. SABRE LIMITED: Joint Liquidators Take Over Operations ----------------------------------------------------- Peter James Hughes-Holland and Frank Wessely, of Vantis, were appointed Joint Liquidators of Sabre Limited after creditors passed a resolution to wind up the company's operations on March 8. Chairman E.J. Webster disclosed the company could no longer continue its business due to mounting debts. Vantis Numerica (nka Vantis plc) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. The company can be contacted at: Sabre (S R C) Limited Fulmere Dukes Kiln Drive Gerrards Cross Buckinghamshire SL9 7HD United Kingdom Tel: 01753 883 225 Fax: 01753 883 225 WITHAM FURNITURE: Appoints Tenon Recovery Administrator ------------------------------------------------------- Dilip K. Dattani and Patrick B. Ellward of Tenon Recovery were appointed joint administrators of Witham Furniture Limited (Company Number 02814991) on April 13. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Witham Furniture Ltd. is a furniture distributor. It can be reached at: Swingbridge Rd. Grantham NG31 7XT United Kingdom Tel: 01476 577760 Fax: 01476 575199 ********* 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 Carmel Paderog, 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. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. 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