/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060522.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 Monday, May 22, 2006, Vol. 7, No. 100 Headlines G E R M A N Y BEAUTY INSEL: Meeting of Creditors Set on June 19 BERGMANN GMBH: Creditors' Meeting Slated for June 1 GEBRUEDER BOHLER: Claims Registration Ends May 29 F & S: Creditors Must Register Claims Until May 29 LEICA CAMERA: Discloses Change of Control Over Convertible Bonds MALERBETRIEB JUERGEN: Claims Filing Period Ends June 2 PEGASOS QUANTE: Creditors' Meeting Slated for July 14 REMIX VIDEO: Claims Filing Period Ends June 1 RUPPRATH + THEIS: Claims Registration Ends June 1 I R E L A N D ELAN CORPORATION: Nancy Lurker Resigns from Board I T A L Y BANCA NAZIONALE: Fitch Affirms Individual Rating at C IMPREGILO SPA: Igli to Increase Equity Stake by 11.7% LOTTOMATICA SPA: Completes EUR750 Million Bond Issue K A Z A K H S T A N AIMAK OIL: Creditors Must File Claims by May 30 ANTARES: Creditors Must File Claims by May 30 ART: Proof of Claim Deadline Slated for May 27 DELTA SYSTEM: Proof of Claim Deadline Slated for May 20 KAZKOMMERTS INTERNATIONAL: Fitch Rates EUR300-Mln Notes at BB+ MERKATA OIL INK: Pavlodar Court Opens Bankruptcy Proceedings NEFTEPROMSTROIKOMPLEKS: Claims Registration Ends May 30 NERDJI: Claims Registration Ends May 27 ONIKS-OIL-PV: Pavlodar Court Starts Bankruptcy Proceedings RESIDENCE OF THE PRESIDENT: Creditors' Claims Due May 30 TEHNO MASH: Creditors' Claims Due May 27 L U X E M B O U R G EUROPEAN ENHANCED: Moody's Rates EUR15-Million Notes at Ba2 N E T H E R L A N D S KONINKLIJKE AHOLD: Shareholders Approve 2005 Figures N O R W A Y AKER KVAERNER: Bondholders Reject Amendments to Loan Agreement AKER KVAERNER: Inks US$90 Million West African Deal R U S S I A ABSOLUT CAPITAL: Fitch Places Long-Term B to US$50 Mln Notes AUTO-BRIDGE: Bankruptcy Hearing Slated for June 13 BOKSITOGORSKIY POLYMER: Court Sets June 5 Hearing Date ENGELSKIY FACTORY: Court Commences Bankruptcy Proceedings GMELINSKOYE: Court Names V. Yakushev as Insolvency Manager KANSKAYA CONFECTIONARY: S. Vasilyev to Manage Insolvency Assets PEARLS: Court Names A. Trubin to Manage Insolvency Assets PYASHINSKOYE: Court Taps A. Trubin as Insolvency Manager STROKROS: Court Appoints A. Kubasov as Insolvency Manager STROY-DETAIL: Court Opens Bankruptcy Proceedings S P A I N AYT GENOVA: Fitch Puts BB+ Rating on EUR21 Million Class D Notes RURAL HIPOTECARIO: Fitch Junks EUR11.7 Million Class E Notes RURAL HIPOTECARIO: Increased Risks Prompts Moody's Junk Rating U K R A I N E ATLANTIC: State Tax Inspection to Liquidate Bankruptcy Assets ASOCH: Court Appoints Andrij Vershinin as Liquidator BUDMONTAZH DELUX: Court Taps M. Avramchuk as Insolvency Manager EAST: Kyigv Court Names Andrij Vershinin as Liquidator KRANIMPEKS: Zaporizhya Court Commenced Bankruptcy Proceedings NOVOMET: Dnipropetrovsk Court Commences Bankruptcy Supervision STAROBESHIVSKIJ COMBI-FOOD: Court Starts Bankruptcy Supervision U N I T E D K I N G D O M ADL REALISATIONS: Creditors' Meeting Slated for May 31 ARCH CAPITAL: Parent Eyes US$125-Mln Public Equity Placement AYURDEVIC COMPANY: Winds Up Operations & Appoints Liquidator BRITISH AIRWAYS: Posts GBP2-Billion Pension Deficit at March 31 CACI INTERNATIONAL: Refutes BAE Systems Takeover Talks CLAVIS SECURITIES: Fitch Assigns Expected BB to GBP8.1 Mln Notes DEWHURST BUTCHERS: Sets Creditors' Meeting on May 25 EMERALD AIRWAYS: Administrators Offers Airline for Sale EQUIPMENT SERVICES: Appoints KPMG Administrator FARRINGDON MORTGAGES: Fitch Lowers GBP3.13-Mln Class Rating to B FLOE NETWORKS: Joint Administrators Take Over Operations GENERAL MOTORS: Resolves to Reduce British Workforce by 900 GENERAL MOTORS: Finance Chiefs to Leave Posts Within the Year HERDS OF BASINGSTOKE: Creditors' Meeting Slated for May 24 IRONMAN LIMITED: Names Zafar Igbal as Administrator JAMES PLAYDON: Meeting of Creditors Set on May 24 M.I.A. VIDEO: Creditors' Meeting Set for May 24 MISYS PLC: Transfers 5,000 Shares to Scheme Participants PROMOTIONAL CHOCOLATES: Creditors Pass Winding Up Resolution RENTOKIL INITIAL: HMV CEO Joins Board as Non-Executive Director RENTOKIL INITIAL: New Orders Prompt Asset Sale Reconsideration RENTOKIL INITIAL: Reports First Quarter 2006 Trading Update RYAN & MILLER: Begins Winding Up Proceedings S.B. MAINTENANCE: Financial Woes Prompt Liquidation SIRA GROUP: Creditors' Meeting Slated for May 26 SIRVA INC: S&P Downgrades Corporate Credit Rating to B from B+ SODO DESIGN: Meeting of Creditors Set for May 24 TOMORROWS WORLD: Names Ian William King Liquidator UNIFAB ENGINEERING: Claims Registration Ends May 31 WESTON STAFF: Creditors Resolve to Wind Up Operations WHINSTONE 2: Fitch Rates GBP168.5-Million Notes at BB WHINSTONE 2: Moody's Assigns (P)Ba2 Rating to GBP169-Mln Notes YOLDINGS MARINE: Daniel Platt Leads Winding Up Process ********* ============= G E R M A N Y ============= BEAUTY INSEL: Meeting of Creditors Set on June 19 ------------------------------------------------- The court-appointed provisional administrator for Beauty Insel GmbH, Ruediger Schmidt, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:45 a.m. on June 19. The meeting of creditors and other interested parties will be held at: The District Court of Goppingen Hall 0.24 Pfarrstr. 25 73033 Goeppingen, 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 June 2 to register their claims with the court-appointed provisional administrator. The District Court of Goppingen opened bankruptcy proceedings against Beauty Insel GmbH on April 13. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Beauty Insel GmbH Attn: Thomas Illner, Manager Stuttgarter Str. 9 73033 Goppingen, Germany The administrator can be reached at: Ruediger Schmidt Muehlesgassle 2 73054 Eislingen, Germany Tel: 07161/82018 Fax: 07161/817976 BERGMANN GMBH: Creditors' Meeting Slated for June 1 --------------------------------------------------- The court-appointed provisional administrator for Bergmann GmbH, Dr. Martin Gitzinger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:00 a.m. on June 1. The meeting of creditors and other interested parties will be held at: The District Court of Saarbruecken Branch office Sulzbach Hall 24 2nd Floor Vopeliusstrasse 2 66280 Sulzbach, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on July 6, at the same venue. Creditors have until June 8 to register their claims with the court-appointed provisional administrator. The District Court of Saarbruecken opened bankruptcy proceedings against Bergmann GmbH on April 25. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Bergmann GmbH Attn: Peter Bergmann, Manager Zum Sitters 34 66787 Wadgassen, Germany The administrator can be reached at: Dr. Martin Gitzinger Grosser Markt 8 66740 Saarlouis, Germany Tel: 06831-93090 Fax: 06831-930930 GEBRUEDER BOHLER: Claims Registration Ends May 29 ------------------------------------------------- Creditors of Gebrueder Bohler GmbH have until May 29 to register their claims with court-appointed provisional administrator Thomas Bueckmann. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on June 14, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Area C207 2. Floor Cardinal-Galen-Road 124-132 47058 Duisburg, 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 Delmenhorst opened bankruptcy proceedings against Gebrueder Bohler GmbH on April 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gebrueder Bohler GmbH Attn: Dennis Bohler, Manager Eylander Way 4 46487 Wesel, Germany The administrator can be contacted at: Thomas Bueckmann Kohlenkamp 39 45468 Muelheim an der Ruhr, Germany F & S: Creditors Must Register Claims Until May 29 -------------------------------------------------- Creditors of F & S Transport GbR have until May 29 to register their claims with court-appointed provisional administrator Markus M. Merbecks. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on June 21, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 28, Gerichtsgebaude Fuerstenstrasse 21 Chemnitz, 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 Chemnitz opened bankruptcy proceedings against F & S Transport GbR on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: F & S Transport GbR Attn: Tobias Friedrich and Rene Schubert, Partners Alfred-Brodauf-Road 20 08280 Aue, Germany The administrator can be contacted at: Markus M. Merbecks Lessingstrasse 25 08058 Zwickau, Germany Web site: http://www.merbecks.de/ LEICA CAMERA: Discloses Change of Control Over Convertible Bonds ---------------------------------------------------------------- As previously reported, Socrates Privatstiftung and its wholly owned subsidiary, ACM Projektentwicklung GmbH have acquired a majority interest in Leica Camera AG. The share of voting rights held by Socrates now amounts to approximately 50.04%. In respect of the EUR15 million 5.5% convertible bonds of Feb. 9, 2004, due March 3, 2014, the Borrower, Leica Camera AG disclosed a change of control as defined by the Terms and Conditions of the Convertible Bonds and has fixed July 3, as the Control Record Date. According to section 12 (2) of the Terms and Conditions, in case of the Borrower announcing a change of control as defined by the Terms and Conditions each Bondholder is eligible, at his or her option, to demand from the Borrower, within a period of not less than 20 days before the Control Record Date, the repayment of all or part of his or her Convertible Bonds not yet converted or called in at par plus interest accrued until, but not including, the day of repayment. Hermes International SCA, Paris, France, which, according to the information available to the Company, holds approximately 96.5% of all Convertible Bonds issued, has informed Leica Camera AG that it will not exercise its repayment right according to section 12 (2) of the Terms and Conditions. Headquartered in Solms, Germany, Leica Camera AG, -- http://www.leica-camera.com/-- its banks partially terminated their credit lines in February 2005 after the firm said it expects a loss of half of its registered share capital in March 2005. The group closed the first half of its fiscal year 2004/2005 (FY end March 31) with sales of EUR45 million, 15% below the figure in the first half last year. Leica Camera has closed the first half of fiscal year 2005/2006 with sales growing by 6.7% on the previous year period, to EUR48.0 million, as of Sept. 30, 2005. At -EUR1.9 million, operating result continues to be unsatisfactory, although reduced by EUR2.2 million compared to the previous year period. Extraordinary result comes to -EUR1.4 million, up from prior year's -EUR2.4 million. Net loss after tax was reduced by EUR2.8 million and amounts to -EUR4.6 million. MALERBETRIEB JUERGEN: Claims Filing Period Ends June 2 ------------------------------------------------------ Creditors of Malerbetrieb Juergen Mueller GmbH have until June 2 to register their claims with court-appointed provisional administrator Karl-Heinz Trebing. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 22, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hanau Area E09 Branch office Insolvency Court Engelhardstrasse 21 63450 Hanau, 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 Hanau opened bankruptcy proceedings against Malerbetrieb Juergen Mueller GmbH on April 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Malerbetrieb Juergen Mueller GmbH Attn: Juergen Mueller, Manager Limesstr. 8 63486 Bruchkobel, Germany The administrator can be contacted at: Karl-Heinz Trebing Hanauer Landstr. 287-289 60314 Frankfurt/M, Germany Tel: 069/15051530 Fax: 069/15051400 PEGASOS QUANTE: Creditors' Meeting Slated for July 14 ----------------------------------------------------- The court-appointed provisional administrator for Pegasos Quante GmbH, Dr. Wolfgang Kohler, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:30 a.m. on July 14. The meeting of creditors and other interested parties will be held at: The District Court of Arnsberg EG 328 Eichholzstrasse 4 59821 Arnsberg, 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 June 2 to register their claims with the court-appointed provisional administrator. The District Court of Arnsberg opened bankruptcy proceedings against Pegasos Quante GmbH on April 24. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Pegasos Quante GmbH Attn: Wilhelm Quante, Manager Schwarzenweg 10 59510 Lippetal, Germany The administrator can be reached at: Dr. Wolfgang Kohler Market Route 22 59555 Lippstadt, Germany Tel: 02941-979850 REMIX VIDEO: Claims Filing Period Ends June 1 --------------------------------------------- Creditors of remix Video Technologien GmbH have until June 1 to register their claims with court-appointed provisional administrator Martin Schoebe. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on June 22, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kempten Zi.Nr. 139/I 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 remix Video Technologien GmbH on April 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: remix Video Technologien GmbH Zwergstrasse 7 87600 Kaufbeuren, Germany The administrator can be contacted at: Martin Schoebe Ainmillerstr. 11 80801 Munich, Germany Tel: 089/1893770 Fax: 089/18937750 RUPPRATH + THEIS: Claims Registration Ends June 1 ------------------------------------------------- Creditors of Rupprath + Theis GmbH have until June 1 to register their claims with court-appointed provisional administrator Uwe Kuhmann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 22, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hagen Area 283, Floor 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 Rupprath + Theis GmbH on April 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Rupprath + Theis GmbH Attn: Michael Rupprath and Joachim Theis, Managers Robert-Frese-Str. 38 - 40 58332 Schwelm, Germany The administrator can be contacted at: Uwe Kuhmann Hochstr. 124 58095 Hagen, Germany ============= I R E L A N D ============= ELAN CORPORATION: Nancy Lurker Resigns from Board ------------------------------------------------- Elan Corporation Plc discloses that Nancy Lurker will resign as a non-executive director of the Company effective May 31. Ms. Lurker has been a director of Elan since May 2005. Ms. Lurker will be taking up as Chief Marketing Officer of Novartis Pharmaceuticals, U.S. To avoid the possibility of any conflict of interest in the future, both she and Elan agreed it was appropriate for her to step down from the board of Elan. "While we will miss Nancy on our board, we wish her well in her new challenging position," Chairman Kyran McLaughin, said. About the Company Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Elan shares trade on the New York, London and Dublin Stock Exchanges. * * * Moody's Investors Service rates Elan's long-term corporate family rating at Ba3. The company's long-term foreign issuer credit rating and long-term local issuer credit rating carry Standard & Poor's single-B rating. ========= I T A L Y ========= BANCA NAZIONALE: Fitch Affirms Individual Rating at C ----------------------------------------------------- Fitch ratings upgraded Italy-based Banca Nazionale del Lavoro's rating to Issuer Default AA- from A+. At the same time, the agency affirmed the bank's Short-term, Individual and Support ratings at F1, C and 1 respectively. Following the upgrade, the outlook is now stable. The rating action follows the successful conclusion of the obligatory takeover bid by BNP Paribas for BNL's shares, which has resulted in the French bank holding a 97% stake in BNL. BNPP plans to launch a new offer to obtain up to 100% ownership. The IDR, Short-term and Support ratings reflect what Fitch considers to be an extremely high probability of support for BNL, should it ever be required, from its new controlling shareholder. As further integration occurs and additional operational benefits accrue to BNL under new ownership, Fitch may equalize the bank's IDR with BNPP's IDR AA. BNPP regards Italy as its second "home market" and Fitch expects the bank to work speedily to integrate BNL, centralizing some functions and product lines. BNL should benefit from a wider range of more sophisticated products as well as cost and revenues synergies achieved by closer cooperation with BNPP and its subsidiaries already operating in Italy in asset management, private banking and consumer lending. In addition, as part of one of largest European groups, BNL should be able to promote itself more successfully. In April 2006, BNPP appointed a new Managing Director for BNL and, reflecting its controlling interest, a new board of directors. In the light of these changes, the Italian bank has started to prepare a new business plan. In 2005, BNL reported EUR533 million of net income, EUR5.029 billion of equity and a Tier 1 ratio of 6.7%. It was the sixth largest bank in Italy by loans at end-2005 and has around 800 branches. In 2005, BNPP reported EUR6.286 billion of net income and over EUR35 billion of common equity. It is the second largest French bank and the fifth largest in Europe by equity. Its market share of sight deposits in France is 9.6%. IMPREGILO SPA: Igli to Increase Equity Stake by 11.7% ----------------------------------------------------- Holding group Igli S.p.A. is eyeing to acquire the 11.7% stake held by Gemina S.p.A. in engineering group Impregilo S.p.A. for EUR150 million, Il Sole 24 Ore says. Igli gained a call option on Gemina shares in 2005 when it acquired a 12.5% stake in Impregilo. According to sources cited by Il Sole, Igli might exercise the call option. According to the report, Gemina, controlled by the Romiti family, reportedly wants to receive some Igli shares aside from cash in the buyout deal to remain an indirect shareholder of Impregilo. Gemina's representative to Impregilo's board would also have to step down if the buyout deal pushes through, Il Sore relates. Igli and Gemina currently hold 18.037% and 11.829% stakes in Impregilo. Other stakeholders include HBK Investments Limited Partnership (2.286%) and Assicurazioni Generali S.p.A. (2.136%). The remaining 65.712% of Impregilo's shares is floating capital controlled by minority shareholders. Headquartered in Milan, Italy Impregilo S.p.A. -- http://www.impregilo.it/-- is involved in the construction of dams and hydroelectric schemes since 1906. In 2005, Impregilo posted consolidated net sales of EUR2.4 billion, compared to EUR2.9 billion in 2004. It attributed the decrease to a general downturn in sales volumes, the de-consolidation of some operations and the absence of extraordinary items recognized in 2004. The Group posted a consolidated operating loss of EUR254.4 million. A significant factor in the result was the aggregate operating loss (EUR260 million) of the non-core businesses (Building & Services, Campania MSW Project, Imprepar in liquidation), which are being sold/retired or are in liquidation. Net debt at Dec. 31, 2005, was EUR739.18 million, including discontinued operations. Shareholders' equity at Dec. 31, 2005, amounted to EUR516.7 million, an increase of EUR305 million from Dec. 31, 2004. Impregilo is optimistic it could achieve its profit forecast and debt-to-equity ratio of 0.5 in 2007. Lazard Freres & Co. LLC is advising Impregilo. LOTTOMATICA SPA: Completes EUR750 Million Bond Issue ---------------------------------------------------- Lottomatica disclosed the closing of the offering and the full underwriting of the EUR750 million Subordinated Interest- Deferrable Capital Securities due 2066. The Securities are in registered form in the minimum denomination of EUR50,000 and subscribers for the 100% of the issued Securities have been procured by Credit Suisse Securities (Europe) Limited and by Goldman Sachs International, pursuant to a subscription agreement entered with Lottomatica on May 10 2006. The Securities are offered or sold only outside the United States to certain institutional investors or in or within the United States, or to or for the account or benefit of U.S. persons, to qualified institutional buyers (as defined in Rule 144A under the Securities Act of 1933, as amended. The proceeds of the offering will be used to partially finance the proposed acquisition of GTECH Holdings Corporation and the Securities coupon was set at 8.25% -- 10 years mid-swap plus 405 basis points -- for the first 10 years. After the tenth anniversary from the issue date, the Securities will accrue interest on a semi-annual basis and the interest rate shall be six-month Euribor plus a margin of 100 bps step up over the initial margin, in any case within the limits provided for by the applicable law. The Securities received BB ratings from Standard & Poor's and Ba3 ratings from Moody's Investors Service Limited. The Capital Securities have been admitted to the official list of the regulated market of the Luxembourg Stock Exchange. The Securities are subject to a mandatory redemption at 101% of the aggregate principal amount, together with accrued and unpaid interest if the GTECH acquisition is not consummated prior to October 10 or the merger agreement in respect thereof is earlier terminated. About Lottomatica Headquartered in Rome, Italy, Lottomatica S.p.A. -- http://www.lottomatica.it/-- operates the Italian national lottery, the largest exclusive concession for the single major on-line lottery in the world. Lottomatica's other games and betting operations include Gratta e Vinci, Tris, and Totocalcio and Totogol. De Agostini owns 58% of Lottomatica. * * * 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. 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. 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. =================== K A Z A K H S T A N =================== AIMAK OIL: Creditors Must File Claims by May 30 ----------------------------------------------- LLP Aimak Oil has declared insolvency. Creditors have until May 30 to submit written proofs of claim to: Office 202, 2nd Floor Dostyk Avenue 105 050051 Almaty, Kazakhstan ANTARES: Creditors Must File Claims by May 30 --------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Antares insolvent on March 15. Bankruptcy proceedings were introduced at the company. Creditors have until May 30 to submit written proofs of claim to: Sutusheva Str. 58, 3rd Floor Petropavlovsk, Kazakhstan ART: Proof of Claim Deadline Slated for May 27 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP ART insolvent on March 2. Bankruptcy proceedings were introduced at the company. Creditors have until May 27 to submit written proofs of claim will be accepted at: Aktau, Kazakhstan Tel: 8 (3292) 41-00-42 8 (3292) 41-58-26 DELTA SYSTEM: Proof of Claim Deadline Slated for May 20 ------------------------------------------------------- LLP Delta System has declared insolvency. Creditors have until May 20 to submit written proofs of claim to: Office 404 Panfilova Str. 103 Almaty, Kazakhstan Tel: 8 (3272) 93-32-67 8 (3272) 78-70-10 8 (3272) 99-81-35 KAZKOMMERTS INTERNATIONAL: Fitch Rates EUR300-Mln Notes at BB+ -------------------------------------------------------------- Fitch Ratings gave Kazkommerts International B.V.'s EUR300 million 5.125% notes due March 2011 a final Long-term BB+ rating. The issue was made under the USD1.5 billion guaranteed debt issuance program rated Long-term BB+ for foreign currency notes with maturities in excess of one year and Short-term B for foreign currency notes with maturities of less than one year. Kazakhstan's Kazkommertsbank unconditionally and irrevocably guaranteed the notes under the program KKB was the largest commercial bank in Kazakhstan by IFRS assets at end-2005 and has top three positions in all major market segments. One individual controls a majority stake in the bank. The European Bank for Reconstruction and Development is a minority shareholder and is actively involved in board-level decision-making. MERKATA OIL INK: Pavlodar Court Opens Bankruptcy Proceedings ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Pavlodar Region commenced bankruptcy proceedings against LLP Merkata Oil Ink on March 21. NEFTEPROMSTROIKOMPLEKS: Claims Registration Ends May 30 ------------------------------------------------------- LLP Neftepromstroikompleks has declared insolvency. Creditors have until May 30 to submit written proofs of claim to: Rabochaya Str. 43 Shuchinsk Shuchinsk District Akmola Region, Kazakhstan NERDJI: Claims Registration Ends May 27 --------------------------------------- LLP Nerdji has declared insolvency. Creditors have until May 27 to submit written proofs of claim to: Maresieva Str. 105 Aktobe, Kazakhstan Tel: 8 (3132) 54-77-67 ONIKS-OIL-PV: Pavlodar Court Starts Bankruptcy Proceedings ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region commenced bankruptcy proceedings against LLP Oniks-Oil-PV on March 17. RESIDENCE OF THE PRESIDENT: Creditors' Claims Due May 30 -------------------------------------------------------- Establishment Residence of the President of Republic of Kazakhstan has declared insolvency. Creditors have until May 30 to submit written proofs of claim to: Furmanova Str. 205 Almaty, Kazakhstan TEHNO MASH: Creditors' Claims Due May 27 ---------------------------------------- LLP Tehno Mash Ltd. has declared insolvency. Creditors have until May 27 to submit written proofs of claim to: Nurpeisova Str. 2 Almaty, Kazakhstan Tel: 8 (3272) 77-98-12 =================== L U X E M B O U R G =================== EUROPEAN ENHANCED: Moody's Rates EUR15-Million Notes at Ba2 ----------------------------------------------------------- Moody's has assigned the following ratings to the Notes issued by European Enhanced Loan Fund S.A., a Luxembourg-based special- purpose vehicle: Issuer: European Enhanced Loan Fund S.A. -- EUR149 million Class A-1 Secured Floating Rate Notes Notes, Assigned Aaa; -- EUR7 million Class A-2 Secured Fixed Rate Notes, Assigned Aaa; -- EUR5 million Class B-2 Secured Fixed Rate Notes, Assigned Aa2; -- EUR94.5 million Class A-3A Secured Floating Rate Notes Notes, Assigned Aaa; -- EUR10.5 million Class A-3B Secured Floating Rate Notes Notes, Assigned Aa1; -- EUR27 million Class B-1 Secured Floating Rate Notes, Assigned Aa2; -- EUR25 million Class C Deferrable Secured Floating Rate Notes, Assigned A1; -- EUR12.98 million Class D-1 Deferrable Mezzanine Secured Floating Rate Notes, Assigned Baa3; -- EUR3.25 million Class D-2 Deferrable Mezzanine Secured Floating Rate Notes, Assigned Baa3; -- EUR1.15 million Class D-3 Deferrable Mezzanine Secured Floating Rate Notes, Assigned Baa3; -- EUR1.62 million Class D-4 Deferrable Mezzanine Secured Floating Rate Notes, Assigned Baa3; -- EUR13.5 million Class E-1 Deferrable Mezzanine Secured Floating Rate Notes, Assigned Ba2; -- EUR900,000 Class E-2 Deferrable Mezzanine Secured Floating Rate Notes, Assigned Ba2; -- EUR600,000 million Class E-3 Deferrable Mezzanine Secured Floating Rate Notes, Assigned Ba2; -- EUR5 million Class M Combination Notes, Assigned Baa3; and -- EUR3 million Class O Combination Notes, Assigned Baa3. The ratings address the expected loss posed to investors by the legal final maturity in May 2022. The issuer also issues a total of EUR48,000,000 of Class F Notes and EUR5,000,000 of Class N Combination Notes not rated by Moody's. These ratings are primarily based upon: -- An assessment of the eligibility criteria and portfolio guidelines applicable to the future additions to the portfolio; -- The initial portfolio hedges that have been put in place to cover the foreign exchange rate risk on the GBP- denominated assets; -- The protection against losses through the subordination of the more junior classes of notes to the more senior classes of notes; -- The expertise of PIMCO as loan manager; and -- The legal and structural integrity of the issue. This transaction is a high yield collateralized loan obligation related to a portfolio of mostly European senior and mezzanine loans with a predominance of senior loans. The portfolio will be composed of both EUR-denominated and GBP-denominated assets and the Issuer will be advised by PIMCO in the selection and investments of these assets. The composition of the portfolio by currency is expected to be app. 70%. EUR-denominated loans and 30 per cent GBP-denominated loans, but may vary subject to certain constraints, including the obligation for the issuer to hedge any non-EURexposures that are not hedged under the initial portfolio hedges. The target par amount of the portfolio is EUR383,000,000. This portfolio is dynamically managed by PIMCO. It will be partially acquired at closing and partially during the ramp-up period. Thereafter, the portfolio of loans will be actively managed and the investment adviser will have the option to direct the issuer to buy or sell loans. Any addition or removal of loans will be subject to a number of portfolio criteria. Moody's analysis of the transaction includes the currency risk brought by the portfolio composition in two currencies and the initial portfolio hedges. The structure allows for: -- the timely payment of interest and ultimate payment of principal with respect to the Class A and Class B Notes by the legal final maturity date in May 2022 and for the ultimate payment of interest and principal by the legal final maturity date in May 2022 with respect to the Class C, D and E Notes; -- the ultimate repayment of the Rated Balance in respect of the Class M Combination Notes on or before the legal maturity date in May 2022, where the "Rated Balance" is equal, at any time, to the principal amount of Combination Notes on the Issue Date (EUR5,000,000) minus the aggregate of all payments made, from the issue date to such date, either through interest or principal payments. -- the ultimate repayment of the Rated Balance in respect of the Class O Combination Notes on or before the legal maturity date in May 2022, where the "Rated Balance" is equal, at any time, to the principal amount of such Combination Notes on the Issue Date (EUR3,000,000) minus the aggregate of all payments made from the issue date to such date, either through interest or principal payments. ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Shareholders Approve 2005 Figures ---------------------------------------------------- Ahold welcomed 305 shareholders representing approximately 921 million shares to its Annual General Meeting of Shareholders in Amsterdam. Shareholders adopted Ahold's 2005 financial statements and all other proposals on the agenda, including the appointments of John Rishton to the Corporate Executive Board and Judith Sprieser to the Supervisory Board. About Ahold Headquartered in Amsterdam, Koninklijke Ahold NV -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe and Asia. The company's chain stores includes Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * Moody's Investors Service and Standard and Poor's has assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. =========== N O R W A Y =========== AKER KVAERNER: Bondholders Reject Amendments to Loan Agreement -------------------------------------------------------------- Holders of Aker Kvaerner's subordinated loan voted against the company's request for certain amendments to the loan agreements on April 25. The Company had asked the bondholders to amend the agreements that would call for the Aker Kvaerner group to structure its debt in a more traditional way at parent company level and to clarify certain restrictions in the dividend covenant. "The refinancing strategy and dividend policy of the Aker Kvaerner group remains firm and the decision in the bondholders meeting will not effect ongoing processes in the company," says Bjorn Erik Naess, EVP and CFO. Kvaerner Subordinated Open Bond Issue 2002/2011 are: -- ISIN NO 001 012883.8 (AKVER56) - NOK -- ISIN NO 001 012884.6 (AKVER56) - USD -- ISIN NO 001 012885.3 (AKVER56) - EUR Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner Oil & Gas -- http://www.akerkvaerner.com/-- provides products and services for the offshore upstream oil and gas industry. The group has operations in Norway, the U.K. and the U.S. In 2005, the group booked revenues and EBITDA of NOK28.2 billion and NOK1.7 billion respectively. * * * Fitch Ratings upgraded Norway-based Aker Kvaerner Oil & Gas Group AS's Issuer Default Rating to BB+ from BB. The Outlook remains Positive. The rating of the EUR260 million second-lien bond issue guaranteed by AK O&G is also upgraded to BB+ from BB. Moody's Investors Service upgraded the ratings of Aker Kvaerner Oil & Gas Group and its subsidiary Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring-fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. The outlook on all ratings is stable. AKER KVAERNER: Inks US$90 Million West African Deal --------------------------------------------------- Aker Kvaerner has signed an agreement to deliver a deepwater subsea production system offshore West Africa. The value of the extension is approximately US$90 million. The subsea trees will be manufactured and assembled at Aker Kvaerner's Tranby facility in Norway and assembly of the controls components will be handled out of Aberdeen in the U.K. Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner Oil & Gas -- http://www.akerkvaerner.com/-- provides products and services for the offshore upstream oil and gas industry. The group has operations in Norway, the U.K. and the U.S. In 2005, the group booked revenues and EBITDA of NOK28.2 billion and NOK1.7 billion respectively. * * * Fitch Ratings upgraded Norway-based Aker Kvaerner Oil & Gas Group AS's Issuer Default Rating to BB+ from BB. The Outlook remains Positive. The rating of the EUR260 million second-lien bond issue guaranteed by AK O&G is also upgraded to BB+ from BB. Moody's Investors Service upgraded the ratings of Aker Kvaerner Oil & Gas Group and its subsidiary Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring-fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. The outlook on all ratings is stable. =========== R U S S I A =========== ABSOLUT CAPITAL: Fitch Places Long-Term B to US$50 Mln Notes ------------------------------------------------------------ Fitch Ratings placed Absolut Capital S.A.'s US$50 million issue of 8.75% limited recourse loan participation notes due April 2009 a Long-term B rating and a Recovery Rating RR4. The notes are to be used solely for financing a deposit with Russia's Absolut Bank, which is rated Issuer Default B, Short- term B, Individual D, Support 5 and National Long-term BBB. The Outlooks on both the IDR and the National Long-term ratings are Stable. The notes will be consolidated and form a single series with Absolut Capital S.A.'s US$150 million issue of 8.75% notes, due April 2009, whose final Long-term and Recovery ratings were assigned at B and RR4 respectively. Absolut is a medium-sized Russian bank founded in 1993 and 92%- owned by five Moscow entrepreneurs and 7.5% by International Financial Corporation. At end-2005, Absolut ranked 39th among domestic banks by assets. Lending to customers in Moscow constitutes its core business, but the bank is also building up its SME and retail banking operations and expanding into new regions. AUTO-BRIDGE: Bankruptcy Hearing Slated for June 13 -------------------------------------------------- The Arbitration Court of Moscow will convene on June 13 at 10:00 a.m. to hear the bankruptcy supervision procedure on CJSC Auto- Bridge (TIN 7732120732). The case is docketed under Case No. A40-2643/06-74-6. Mr. P. Goldin has been appointed temporary insolvency manager and can be reached at: Post User Box 142 192007, St. Petersburg, Russia Tel: 8(812) 764-39-27 The Debtor can be reached at: Post User Box 142 192007, St. Petersburg, Russia Tel: 8(812) 764-39-27 BOKSITOGORSKIY POLYMER: Court Sets June 5 Hearing Date ------------------------------------------------------ The Arbitration Court of St. Petersburg and the Leningrad Region will convene on June 5 to hear the bankruptcy supervision procedure on LLC Boksitogorskiy Factory Polymer (A56- 52475/2005). Mr. A. Karpenko has been appointed temporary insolvency manager and can be reached at: Office 203 Angliyskiy Pr. 3 190121, St. Petersburg, Russia The Debtor can be reached at: LLC Boksitogorskiy Factory Polymer Zavodskaya Str. 1 Boksitogorsk 187650, Leningrad Region, Russia ENGELSKIY FACTORY: Court Commences Bankruptcy Proceedings --------------------------------------------------------- The Arbitration Court of Kalmykiya Republic has commenced bankruptcy proceedings against LLC Agro Company Kesovogorskaya (Case No. A22/1940-05/5-229) after finding it insolvent. Mr. A. Sandzhiev has been appointed insolvency manager and can be reached at: Gertsena Str. 1a Elista 358003, Kalmykiya Republic, Russia The Debtor can be reached at: Gertsena Str. 1a Elista 358003, Kalmykiya Republic, Russia GMELINSKOYE: Court Names V. Yakushev as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Volgograd Region appointed Mr. V. Yakushev as insolvency manager for OJSC Gmelinskoye (TIN 3429004777). He can be reached at: Post User Box 2151 400062, Volgograd Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-18820/05-S58. The Debtor can be reached at: OJSC Gmelinskoye Gmelinka Staropoltavskiy Region 404200, Volgograd Region, Russia KANSKAYA CONFECTIONARY: S. Vasilyev to Manage Insolvency Assets --------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. S. Vasilyev as insolvency manager for OJSC Kanskaya Confectionary (Case no. A33-13557/2005). He can be reached at: Post User Box 20647 660017, Krasnoyarsk Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: OJSC Kanskaya Confectionary Fabrichnaya Str. 10. Kansk 663601, Krasnoyarsk Region, Russia PEARLS: Court Names A. Trubin to Manage Insolvency Assets --------------------------------------------------------- The Arbitration Court of Krasnodar Region appointed appointed Mr. A. Trubin as insolvency manager for CJSC Pearls (TIN 2323002231). The case is docketed under Case No. 32-66430/2005- 2/733-B. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: CJSC Pearls Druzhby Str. 10 Akhtyrskiy Abinskiy Region Krasnodar Region, Russia PYASHINSKOYE: Court Taps A. Trubin as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Penza Region appointed Mr. A. Trubin as insolvency manager for CJSC Pyashinskoye (Case No. A49- 6858/2005-122b/26). He can be reached at: Moslozavodskaya Str. 13 Bekovo 442940, Penza Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: CJSC Pyashinskoye Pyasha Bekovskiy Region Penza Region, Russia STROKROS: Court Appoints A. Kubasov as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Moscow Region appointed Mr. A. Kubasov as insolvency manager for CJSC Trading Company Strokros (Case No. A40-68906/05-86-192B). He can be reached at: Krasnokazarmennaya Str. 111250, Moscow, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: CJSC Trading Company Strokros Grina Str. 13. 113216, Moscow, Russia STROY-DETAIL: Court Opens Bankruptcy Proceedings ------------------------------------------------ The Arbitration Court of Chuvashiya Republic has commenced external management bankruptcy procedure on OJSC Factory Stroy- Detail (Case No. A79-6696/2005). Mr. A. Nikitin has been appointed external insolvency manager and can be reached at: 1st Yuzhnaya Str. 50 Cheboksary Chuvashiya Republic, Russia The Debtor can be reached at: OJSC Factory Stroy-Detail Promyshlennaya Str. 93 Novocheboksarsk Chuvashiya Republic, Russia ========= S P A I N ========= AYT GENOVA: Fitch Puts BB+ Rating on EUR21 Million Class D Notes ---------------------------------------------------------------- Fitch Ratings placed expected ratings to AyT Genova Hipotecario VIII, Fondo de Titulizacion Hipotecaria's residential mortgage- backed floating-rate notes totaling EUR2.1 billion due in May 2039 as: -- EUR462 million Class A1: AAA; -- EUR1.575 billion Class A2: AAA; -- EUR21 million Class B: AA; -- EUR21 million Class C: BBB+; and -- EUR21 million Class D: BB+. The final ratings are contingent upon receipt of final documents conforming to information already received. This transaction is a cash flow securitization of a EUR2.1 billion static pool of first-ranking residential mortgage loans originated by Barclays Bank S.A., an entity that is 99.63%-owned by Barclays Bank PLC. This is the eighth residential mortgage securitization conducted by BBSA out of the "Genova" program and the sixth rated by Fitch. As in previous Genova transactions, BBSA originated the securitized mortgages and will continue to service the portfolio. The expected ratings are based on the quality of the underlying collateral, the underwriting and servicing of the mortgage loans, available credit enhancement and the sound legal and financial structure of the transaction. The expected ratings assigned to each of the notes address the fund's capacity for timely payment of interest on each payment date and for repayment of the principal during the life of the operation and, in all events, prior to the legal maturity date, according to the terms and conditions of the documentation, which envisage interest deferral triggers on the Class B, C and D notes. The fund will be regulated by Spanish Securitization Law 19/1992 and Royal Decree 926/1998. Its sole purpose will be to transform into securities the mortgage participations it will acquire from BBSA and from two outstanding securitization funds, AyT Genova Hipotecario I and AyT Genova Hipotecario V, as part of their liquidation process. PHs for these transactions was issued in December 2002 and November 2004, respectively. The PHs will be subscribed by Ahorro y Titulizacion, S.G.F.T., S.A., whose sole function is to manage asset-backed notes on behalf of the fund. The securitized pool comprises Hipoteca Remunerada loans, an amortizing mortgage product bearing a margin of 45bp over 12- month Euribor. All loans are paid via direct debit since the Hipoteca Remunerada product is marketed along with an interest- bearing bank account. The weighted-average seasoning of the portfolio is over 24 months, compared with 13 months in the previous Genova VI and VII transactions. Since Hipoteca Remunerada is primarily offered to high net worth Spanish clients, the average value of the properties backing the mortgages is over EUR277,000 and many of them fall into the high end of the Spanish property market, where demand may slow in times of economic crisis. This risk was addressed in Fitch's recovery rate calculations by applying a jumbo stress of 15% to these loans. RURAL HIPOTECARIO: Fitch Junks EUR11.7 Million Class E Notes ------------------------------------------------------------ Fitch Ratings assigned expected ratings to Rural Hipotecario VIII, Fondo de Titulizacion de Activos' residential mortgage- backed floating-rate notes totaling EUR1.312 billion due in January 2044 as: -- EUR97.5 million Class A1: AAA; -- EUR802.4 million Class A2a: AAA; -- EUR350 million Class A2b: AAA; -- EUR27.3 million Class B: A+; -- EUR15.6 million Class C: BBB; -- EUR7.2 million Class D: BB+; and -- EUR11.7 million Class E: CC. The final ratings are contingent upon receipt of final documents conforming to information already received. This transaction is a cash flow securitization of a EUR1.3 billion static pool of first-ranking residential mortgage loans originated by 19 rural credit cooperatives who will continue to service the mortgages. The expected ratings are based on the quality of the underlying collateral, the underwriting and servicing of the mortgage loans, available credit enhancement and the sound legal and financial structure of the transaction. The expected ratings on the Class A to D notes address payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B, C and D notes, as well as the repayment of principal by the legal final maturity for each note. The Class E notes will be issued to finance the cash reserve fund. The Class E notes are ultimately likely to default, and their ratings are supported by the expected recovery rate for noteholders, that is, the amounts investors are likely to receive during the life of the transaction. The fund will be regulated by Spanish Securitization Law 19/1992 and Royal Decree 926/1998. Its sole purpose will be to transform the mortgage transmission certificates acquired from the sellers into securities. The certificates will be subscribed by Europea de Titulizacion S.A. S.G.F.T., whose sole function is to manage asset-backed notes on behalf of the fund. This is the eighth residential mortgage securitization conducted by cajas rurales and the third rated by Fitch. The cajas rurales belong to the Asociacion Espanola de Cajas Rurales, which offers its members a wide range of wholesale and retail banking services through Banco Cooperativo Espanol. Cooperativo will be the paying agent servicing the notes, the swap counterparty and the treasury account provider. Two of the 19 sellers are rated by Fitch: -- Caja Rural De Navarra, S.C.C., and -- Caja Rural Del Mediterraneo, Ruralcaja S.C.C. RURAL HIPOTECARIO: Increased Risks Prompts Moody's Junk Rating -------------------------------------------------------------- Moody's Investors Service assigned these provisional ratings to seven series of Bonos de Titulizacion de Activos to be issued by RURAL HIPOTECARIO VIII Fondo de Titulizacion de Activos, a Spanish asset securitisation fund that has been created by Europea de Titulizacion, S.G.F.T, S.A.: -- (P)Aaa to the EUR97.5 million Series A1 notes; -- (P)Aaa to the EUR802.4 million Series A2a notes; -- (P)Aaa to the EUR350 million Series A2b notes; -- (P)A1 to the EUR27.3 million Series B notes; -- (P)Baa2 to the EUR15.6 million Series C notes; -- (P)Ba2 to the EUR7.2 million Series D notes; and -- (P)Caa3 to the EUR11.7 million Series E notes; Moody's provisional ratings address the expected loss posed to investors by the legal final maturity. The rating agency believes that the structure of the RURAL HIPOTECARIO VIII notes allows for timely payment of interest and ultimate payment of principal at par, on or before the final legal maturity date and not at any other expected maturity date, on Series A/B/C/D and for ultimate payment of interest and principal at par on or before the final legal maturity date on Series E. The ratings do not address the full redemption of the notes on the expected maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. According to Moody's, this deal benefits from strong features, including: -- basis swap by which the different index reference rates on the assets are exchanged against the index reference rate on the notes; -- a reserve fund that is fully funded upfront to cover a potential shortfall in interest and principal; -- an 18-month artificial write-off mechanism; -- the securing of 100% of loans by residential mortgages; and -- the regional diversification. However, Moody's notes that the deal also has weaknesses, including: -- the deferral of interest payments on each of Series B, C and D increases the expected loss on these subordinated series; -- pro-rata amortization of the B, C and D Series of notes leads to reduced credit enhancement of the senior series in absolute terms. These increased risks were reflected in Moody's Credit Enhancement calculation. The products being securitized are first-lien mortgage loans granted to individuals, all of whom will use these loans to acquire or refurbish properties located in Spain, originated by 19 Spanish rural saving banks, which will continue to service them. Originally, the Rural group's main activity focused on covering the needs of the agricultural sector. However, the development and the expansion of the financial sector due to the growth of the Spanish economy and low interest rates have allowed the group to grow beyond its initial client base. As of April 25, 2006, the provisional portfolio comprised 19,119 loans for a total amount of EUR1,490,935,658.25. The original weighted average LTV (WALTV) is 66.10%. The current WALTV is 60.99%. The average loan size is EUR77,981. The loans were originated between 1994 and 2005, with a weighted average seasoning of 24.41 months. The pool is concentrated in: -- Andalusia (35%), -- Valencia (17%), and -- Castilla Leon (8%). All the properties on which the mortgage security has been granted are covered by property damage insurance and fire insurance. To hedge the potential mismatch risk derived from the different index reference rates on the assets side and the notes side, the Fondo will enter into a swap agreement with Banco Cooperativo Espanol (A2/P1). Moody's bases its ratings on: -- an evaluation of the underlying portfolio of mortgage loans securing the structure; and on -- the transaction's structural protections, which include the subordination, the strength of the cash flows, including the reserve, fund and any excess spread available to cover losses. ============= U K R A I N E ============= ATLANTIC: State Tax Inspection to Liquidate Bankruptcy Assets ------------------------------------------------------------- The Economic Court of Kyiv Region appointed State Tax Inspection of Golosiyivskij District as Liquidator for LLC Advertising Agency Atlantic (code EDRPOU 32422279). The Court commenced bankruptcy proceedings against the company on March 13 after finding it insolvent. The case is docketed under Case No. 23/18-b. The Economic Court of Kyiv Region is located in: B. Hmelnitskij Boulevard 44-B 01030, Kyiv Region, Ukraine The Debtor can be reached at: LLC Advertising Agency Atlantic 40-Richya Zhovtnya Avenue 100/2 03127, Kyiv Region, Ukraine ASOCH: Court Appoints Andrij Vershinin as Liquidator ---------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. Andrij Vershinin as Liquidator/Insolvency Manager for LLC Production Firm Asoch (code EDRPOU 32796498). He can be reached at: a/b 151 03110, Kyiv Region, Ukraine The Court commenced bankruptcy proceedings against the company on March 16 after finding it insolvent. The case is docketed under Case No. 76/14 b-06. The Economic Court of Kyiv Region is located in: Komintern Str. 165 01032, Kyiv Region, Ukraine The Debtor can be reached at: LLC Production Firm Asoch 50 Rokiv Zhovtnya Str. 66 Pishana Bila Tserkva District Kyiv Region, Ukraine BUDMONTAZH DELUX: Court Taps M. Avramchuk as Insolvency Manager --------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. M. Avramchuk as Liquidator/Insolvency Manager for LLC Budmontazh Delux (code EDRPOU 33235201). The Court commenced bankruptcy proceedings against the company on March 29 after finding it insolvent. The case is docketed under Case No. 43/214. The Economic Court of Kyiv Region is located in: B. Hmelnitskij Boulevard 44-B 01030, Kyiv Region, Ukraine The Debtor can be reached at: LLC Budmontazh Delux Kikvidze Str. 13 Kyiv Region, Ukraine EAST: Kyigv Court Names Andrij Vershinin as Liquidator ------------------------------------------------------ The Economic Court of Kyiv Region appointed Andrij Vershinin as Liquidator/Insolvency Manager for LLC Trade Company East (code EDRPOU 33154827). He can be reached at: a/b 151 03110, Kyiv Region, Ukraine The Court commenced bankruptcy proceedings against the company on March 24 after finding it insolvent. The case is docketed under Case No. 23/60-b. The Economic Court of Kyiv Region is located in: B. Hmelnitskij Boulevard 44-B 01030, Kyiv Region, Ukraine The Debtor can be reached at: LLC Trade Company East Koltsova Boulevard 5 Kyiv Region, Ukraine KRANIMPEKS: Zaporizhya Court Commenced Bankruptcy Proceedings ------------------------------------------------------------- The Economic Court of Zaporizhya Region commenced bankruptcy proceedings against Trade-Industrial Company Kranimpeks (code EDRPOU 31260702; account ? 26008304476001 with CB Privatbank, Zaporizhya Regional branch) after finding it insolvent. Feb. 10. The case is docketed under Case No. 25/31/06. Mr. Zinchenko Yurij (license AA 779213) has been appointed Liquidator/Insolvency Manager and can be reached at: Creditors have until May 4 to submit their proofs of claim to 70200, Zaporizhya Region, Ukraine Gulyajpole, Spartakivska Str. 8 The Economic Court of Zaporizhya Region is located in: Shaumyana Str. 4 69001, Zaporizhya Region, Ukraine The Debtor can be reached at: Trade-Industrial Company Kranimpeks Kiyashko Str. 16A 69015, Zaporizhya Region, Ukraine NOVOMET: Dnipropetrovsk Court Commences Bankruptcy Supervision -------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region commenced bankruptcy supervision procedure on Joint Ukrainian-British LLC Novomet (code EDRPOU 30324927) on Feb. 14. The case is docketed under Case No. B 15/25/06. Mr. Oleksandr Vozdvizhenskij has been appointed temporary insolvency manager and can be reached at: Internatsionalistiv Str. 2/53 Dniprodzerzhinsk, Dnipropetrovsk Region, Ukraine The Economic Court of Dnipropetrovsk Region is located in: Kujbishev Str. 1a 49600, Dnipropetrovsk Region, Ukraine The Debtor can be reached at: Joint Ukrainian-British LLC Novomet Plehanov Str. 7-a 49000, Dnipropetrovsk Region, Ukraine STAROBESHIVSKIJ COMBI-FOOD: Court Starts Bankruptcy Supervision --------------------------------------------------------------- The Economic Court of Donetsk Region commenced bankruptcy supervision procedure on OJSC Starobeshivskij Combi-Food Plant (code EDRPOU 00688002) on March 1. The case is docketed under Case No. 5/186 B. Igor Mironov has been appointed temporary insolvency manager and can be reached at: Illich Avenue 89/809 83003, Donetsk Region, Ukraine The Economic Court of Donetsk Region is located in: Artema Str. 157 83048, Donetsk Region, Ukraine The Debtor can be reached at: OJSC Starobeshivskij Combi-Food Plant Glinka Str. 35, Leninske Starobeshivskij District Donetsk Region, Ukraine =========================== U N I T E D K I N G D O M =========================== ADL REALISATIONS: Creditors' Meeting Slated for May 31 ------------------------------------------------------ Creditors of ADL Realisations Limited (formerly Alsop Design Limited) will meet at 10:00 a.m. on May 31 at: The Hendon Hall Hotel Ashley Lane, Hendon London NW4 1HF United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon, on May 30 at: S.T. Bennett Joint Administrator Berg Kaprow Lewis LLP 35 Ballards Lane London N3 1XW United Kingdom Tel: 020 8922 9222 Fax: 020 8922 9223 Enquiry Line: 020 8922 9121 ARCH CAPITAL: Parent Eyes US$125-Mln Public Equity Placement ------------------------------------------------------------ Arch Capital Group Ltd. (NASDAQ:ACGL), the parent company of Arch Insurance Company (Europe) Ltd., agreed to sell in an underwritten public offering US$125 million aggregate liquidation preference of its 7.875% Non-Cumulative Preferred Shares, Series B, with a liquidation preference of US$25 per share. The Company intends to use the net proceeds of the offering for general corporate purposes, including contributions to the capital of its wholly owned insurance and reinsurance subsidiaries to support their underwriting activities. The Company may redeem all or a portion of the preferred shares at a redemption price of US$25 per share on or after May 15, 2011. The preferred shares have been rated: -- Baa3 by Moody's Investors Service; -- BB+ by Standard & Poor's; and -- BBB- by Fitch Ratings. The Company intends to apply to have the preferred shares listed on the NYSE under the symbol "ARHPRB." The offering is being led by Merrill Lynch & Co., Citigroup, JPMorgan and Wachovia Securities, as joint book-running managers. Credit Suisse and UBS Investment Bank are senior co- managers for the offering. When available, copies of the prospectus supplement and base prospectus relating to the offering may be obtained from: Merrill Lynch & Co. 4 World Financial Center New York, NY 10080 U.S.A. or Citigroup Global Markets Inc. Brooklyn Army Terminal 140 58th Street, 8th Floor Brooklyn, NY 11220 United States of America U.S.A. or J. P. Morgan Securities Inc. 270 Park Avenue New York, NY 10017 U.S.A. Arch Capital Group Ltd. is a Bermuda public limited liability company with approximately US$3.05 billion in capital at March 31, 2006, and through operations in Bermuda, the United States, Europe and Canada, writes insurance and reinsurance on a worldwide basis. Its European operation is headquartered in London, England. AYURDEVIC COMPANY: Winds Up Operations & Appoints Liquidator ------------------------------------------------------------ The Ayurvedic Company of Great Britain Limited is liquidating its assets after creditors passed a resolution to wind up the company's operations on March 20. Subsequently, T. Papanicola was appointed Liquidator. The company can be contacted at: The Ayurvedic Company of Great Britain Limited 81 Wimpole Street London W1G 9RF United Kingdom Tel: 020 7224 6070 Fax: 020 7224 6080 BRITISH AIRWAYS: Posts GBP2-Billion Pension Deficit at March 31 --------------------------------------------------------------- British Airways' accounting valuation of its main pension scheme, the New Airways Pension Scheme, showed a deficit of GBP2.07 billion at March 31, 2006, up GBP101 million from the previous year. "The accounting deficit reflects low long-term interest rates and has gone up despite the company's increased contributions and strong equity markets," Keith Williams, the airline's chief financial officer, said. British Airways adopted International Financial Reporting Standards on April 1, 2005. The deficit is now accounted for under IAS19, rather than FRS17. In the company's accounts, of the GBP2.070 billion, GBP1.58 billion is recognized on the balance sheet and GBP483 million is unrecognized. The unrecognized amount occurs as a result of a smoothing mechanism allowed under IAS19 in respect of changes in estimates in both scheme assets and liability benefits earned. The variations in estimates for asset returns and discount rates are the principal factors impacting the deficit. The company's pre-tax pension liability for all schemes in deficit increased from GBP2.19 billion to GBP2.29 billion. Of the GBP2.29 billion, GBP1.79 billion is recognized on the balance sheet (GBP1.58 million for NAPS and GBP204 million for other schemes in deficit) and GBP499 million is unrecognized (GBP483 million for NAPS and GBP16 million for other schemes in deficit). At March 31, 2005, the total NAPS IAS19 pre-tax deficit (recognized and unrecognized) was GBP1.96 billion. The NAPS actuarial deficit at March 2003 was GBP928 million. The airline's cash contribution to NAPS in 2005/6 was GBP246 million. Pension Proposal The airline's proposal on pensions announced on March 23, includes: -- keeping a final salary pension scheme with no changes to past service pension benefits, no increase in staff contribution rates but changes to members' future benefits; and -- changes including: * raising the normal retirement age; * a slower accrual rate; * pensionable pay increases capped at no more than inflation; and * pension increases on retirement capped at 2.5 percent each year, with the company and staff to share impact of changes in life expectancy; In return, the airline will make a payment of GBP500 million into NAPS after the changes are accepted. About the Company Headquartered in West Drayton, England, British Airways Plc -- http://www.ba.com/-- is the U.K.'s largest international scheduled airline, flying to over 550 destinations. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. CACI INTERNATIONAL: Refutes BAE Systems Takeover Talks ------------------------------------------------------ CACI International Inc. reported that recent reports in the financial press regarding alleged "takeover talks" between CACI and BAE Systems have unexpectedly caused a number of CACI's federal government clients to raise concerns about potential conflicts of interest with the work CACI is currently performing for those clients in the event there were a BAE acquisition of CACI. In order to address the concerns of its federal government clients, CACI disclosed that it is not and has not been in discussions with BAE Systems regarding a possible business combination, and has not authorized anyone to engage in such discussions on its behalf. CACI International Inc. (NYSE: CAI) -- http://www.caci.com/-- provides the IT and network solutions for defense, intelligence, and e-government. CACI, a member of the Russell 1000 and S&P SmallCap 600 indices, provides dynamic careers for approximately 9,500 employees working in over 100 offices in the U.S. and Europe. In Europe, CACI Limited is headquartered in London, United Kingdom. * * * Moody's Investors Service assigned CACI a Ba2 Long-term Corporate Family Rating and a Ba2 Bank Loan Debt Rating on April 1, 2004. Standard & Poor's assigned a BB Long-term Foreign Issuer Credit Rating and a BB Long-term Local Issuer Credit Rating to CACI on March 30, 2004. CLAVIS SECURITIES: Fitch Assigns Expected BB to GBP8.1 Mln Notes ---------------------------------------------------------------- Fitch Ratings assigned expected ratings to Clavis Securities Series Plc's 2006-1 Series GBP600.3 million-equivalent mortgage- backed floating-rate notes as: -- GBP-equivalent 161.5 million Class A1 notes due 2031: AAA; -- GBP-equivalent 100 million Class A2 notes due 2031: AAA; -- GBP-equivalent 250 million Class A2 notes due 2031: AAA; -- GBP-equivalent 43.2 million Class M1 notes due 2039: AA; -- GBP-equivalent 24 million Class M2 notes due 2039: A; -- GBP-equivalent 13.6 million Class B1 notes due 2039: BBB; and -- GBP-equivalent 8.1 million Class B2 notes due 2039: BB. The final ratings are contingent upon receipt of final documents conforming to information already received. The collateral underlying the notes in this transaction consists solely of GMAC-RFC originations. The expected ratings are based on the quality of the collateral, available credit enhancement, the underwriting criteria of GMAC- RFC, the primary servicing capabilities of Specialist Mortgage Services Limited and the special servicing capabilities of Basinghall Limited and the sound legal structure of the transaction. Credit enhancement for the Class A1, A2 and A3 notes totals 15.45% and will be provided by the subordination of the Class M1, Class M2, Class B1, Class B2 and an initial reserve fund of 0.65% of the initial issue size. The reserve fund is expected to increase to a target amount of 0.85% To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its U.K. Residential Mortgage Default Model III. The agency also modeled cash flows using the results of the default model with structural stresses including various prepayment and interest rate scenarios. The cash flow tests showed that each Class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall and can retire principal by legal final maturity. DEWHURST BUTCHERS: Sets Creditors' Meeting on May 25 ---------------------------------------------------- Creditors of Dewhurst Butchers Limited (Company Number 03073264) will meet at 11:00 a.m. on May 25 at: The Sherlock Holmes Hotel Room Doyle 3 108 Baker Street London W1U 6LJ United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon, on May 24 at: Shay Bannon Joint Administrator Bdo Stoy Hayward LLP Fourth Floor One Victoria Street Bristol BS1 6AA United Kingdom Tel: 0117 934 2800 Fax: 0117 922 5191 BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the U.K. member firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries. EMERALD AIRWAYS: Administrators Offers Airline for Sale ------------------------------------------------------- The Joint Administrators, Richard Fleming and Brian Green, is selling the business and assets of Emerald Airways Limited and Emerald Airways Engineering Limited. The Company posted annual turnover of approximately GBP325 million. The airline, which employs 200 skilled workers, operates primarily from leasehold premises at Liverpool and Blackpool airports. Inquiries can be addressed to: Nadeem Sweiss KPMG LLP St James Square Manchester M2 6DS United Kingdom Tel: 0161 246 4722 Fax: 0161 838 4089 E-mail: nadeem.sweiss@kpmg.co.uk KPMG -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the U.K. providing audit, tax and advisory services. Headquartered in Liverpool, United Kingdom, Emerald Airways Limited operates over 30 freight and passenger aircraft on scheduled and ad-hoc services throughout U.K. and Europe. EQUIPMENT SERVICES: Appoints KPMG Administrator ----------------------------------------------- Richard Dixon Fleming of KPMG LLP was appointed administrator of Equipment Services U.K. Plc (Company Number 04730238) on May 2. KPMG -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the U.K. providing audit, tax and advisory services. Equipment Services U.K. plc wholesales automotive parts to the car industry. FARRINGDON MORTGAGES: Fitch Lowers GBP3.13-Mln Class Rating to B ---------------------------------------------------------------- Fitch Ratings lowered three tranches of Farringdon Mortgages No. 1 Plc and removed them from Rating Watch Negative following a full loan-by-loan and cash flow analysis. The remaining two tranches are affirmed and removed from RWN. The rating actions are: -- GBP32.04 million Class A1a and A1a DAC affirmed at AAA; off RWN; -- GBP50 million Class A2a and A2a DAC affirmed at AAA; off RWN; -- GBP17.5 million Class M2a downgraded to A- from A; off RWN; -- GBP4.38 million Class B1a downgraded to BBB- from BBB; off RWN; and -- GBP3.13 million Class B2a downgraded to B from B; off RWN. The downgrade of the mezzanine and subordinated tranches follows high levels of arrears and expenses, which culminated in a drawing on the reserve fund for FM1 on April 18. The drawing, a total of GBP216,187, represented 15.76% of available first loss and took the reserve fund below the level at closing. Fitch's analysis factored in revised assumptions on delinquency and expenses. In the revised analysis, there is insufficient credit enhancement and liquidity support available for the mezzanine and subordinated tranches to survive Fitch's stress scenarios at the rating levels originally assigned. The re-modeling of the transaction included a revision of assumptions taking into account current delinquency levels and payment rates on delinquent mortgages and stressing these further at the relevant rating scenarios. Fitch's original analysis for the transaction-incorporated adjustments for additional risks associated with the sub-prime characteristics of the portfolio; however, the portfolio has performed worse than originally expected. While only 67.35% of the portfolio is current, the collection rate is almost 90%, according to figures provided by RML, implying that a portion of interest is collected on loans in arrears. Fitch understands that the Crown Mortgage Management has hired additional staff, increased training, extended call-center coverage and is trying new technology to chase arrears and improve its loss mitigation tactics. Third-party insolvency practitioners have also been engaged to offer debt counseling to borrowers in difficulty. Fitch will continue to monitor arrears closely to assess whether these initiatives will lead to sustained stabilization of arrears levels and collection rates. The fee and expense assumptions have also been adjusted to more accurately reflect expense levels experienced in recent periods. A number of one-off and irregular payments were made in the April 2006 payment period. More smoothed future accruals of expenses are expected to stabilize expense levels and the ongoing levels will continue to be monitored closely by the agency. In the April interest period GBP91,453 of losses were realized on six repossession cases and one deceased borrower shortfall on redemption where the property was subsequently realized, contributing to the reserve fund draw. While the average loss severity on shortfall cases remains relatively low at approximately 11.96%, a number of other loans are currently in repossession, while arrears over 90 days remain at 19.91%. Cumulative crystallized losses can therefore be expected to continue to rise. Given the improvements implemented by the servicer to mitigate arrears and losses, the position will be watched to assess the impact of these changes in minimizing the loss position. Fitch will continue to monitor the transaction closely and conduct further analysis on the next interest payment date in July. FLOE NETWORKS: Joint Administrators Take Over Operations -------------------------------------------------------- Brian Johnson of Fisher Partners and Jeremy Frost of Frost Business Recovery Limited were appointed joint administrators of Floe Networks Limited (Company Number 04248188) and Floe Telecom Limited (Company Number 03518281) on May 1. The joint administrators can be reached at: Frost Business Recovery Limited Square Root Business Centre 102 Windmill Road Croydon, Surrey CR0 2XQ United Kingdom Tel: 020 8665 4284 Fax: 020 8665 4201 E-mail: JeremyF@frostbr.co.uk Fisher Partners Acre House 11/15 William Road London NW1 3ER United Kingdom Tel: 020 7388 7000 Fax: 020 7380 4900 E-mail: skatz@hwfisher.co.uk GENERAL MOTORS: Resolves to Reduce British Workforce by 900 ----------------------------------------------------------- General Motors Corp. eyes to reduce a quarter of its workforce at its Vauxhall car plant in the United Kingdom after the plant's temporary closure in August, Bloomberg News reports. The automaker said it would lay off 900 workers due to a diminishing demand for its Astra compact cars. Bloomberg said that the car plant in Ellesmere Port will slash its production by having two shifts instead of three. "This is essential to compensate the higher cost base in Western Europe and to secure the future given today's competitive environment," GM Europe President Carl-Peter Forster disclosed. The involuntary job cuts, GM said, will be made through buyout packages, early retirement and attrition, Steve McGrath and Stephen Power writes for The Wall Street Journal. According to the company's European Employee Forum, GM previously rejected a plan that calls for "pain-sharing" across other plants in Europe that produce the Astra marque, WSJ relates. General Motors Corp. -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries including Mexico. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 9, 2006, Moody's Investors Service placed the B3 senior unsecured rating of General Motors Corporation under review for possible downgrade, and affirmed the company's Corporate Family Rating at B3. The rating actions are in response to the company's disclosure that it is pursuing various options to replace or amend its existing $5.6 billion bank credit facility, and that these options could result in providing its bank lenders with a security interest in certain GM assets. GM anticipates that any credit facility replacement or amendment will be completed by the end of the second quarter or early in the third quarter GENERAL MOTORS: Finance Chiefs to Leave Posts Within the Year ------------------------------------------------------------- General Motors Corp. planned to restructure its Corporate Controller's Office in light of the planned retirement of its current controller, Paul W. Schmidt. Mr. Schmidt, 61, elected to retire from GM later this year, capping a 37-year career at the automaker. Following Mr. Schmidt's retirement, GM will combine the positions of controller and chief accounting officer. The company began an external search for a candidate using executive recruiter Crist Associates. Mr. Schmidt will continue in his current position until a successor is named. "Paul has made tremendous contributions to General Motors over 37 years in the finance organization," Chief Financial Officer Frederick "Fritz" Henderson said. "Having worked in a number of different positions and operations throughout GM, he has been a tremendous resource to the company on a global scale. And, I'm grateful that he will continue to help GM over the next several months through this transition to a new controller and chief accounting officer." The company's current chief accounting officer, Peter Bible, also elected to resign from the company to pursue other career options, effective June 1, but at the company's request, agreed to continue to support GM during the transition period in a consulting role. "I know the entire GM family joins me in thanking Pete for his service to GM and wishing him the best as he pursues new opportunities," disclosed Mr. Henderson. In addition, GM retained an outside financial advisory firm, AlixPartners, to assist the corporation with a broad range of accounting, financial reporting and related matters. AlixPartners will provide personnel to support the corporation during the transition to a new controller and chief accounting officer, including assisting with assessments of the corporation's internal, financial reporting and disclosure controls and implementing steps to improve them on an ongoing basis. "One of our key objectives in finance is to minimize risk," Mr. Henderson commented. "To that end, we are moving quickly to make sure that we have a robust level of internal controls and systems in place -- and AlixPartners has tremendous expertise to support this initiative." General Motors Corp. -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries including Mexico. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 9, 2006, Moody's Investors Service placed the B3 senior unsecured rating of General Motors Corporation under review for possible downgrade, and affirmed the company's Corporate Family Rating at B3. The rating actions are in response to the company's disclosure that it is pursuing various options to replace or amend its existing $5.6 billion bank credit facility, and that these options could result in providing its bank lenders with a security interest in certain GM assets. GM anticipates that any credit facility replacement or amendment will be completed by the end of the second quarter or early in the third quarter. HERDS OF BASINGSTOKE: Creditors' Meeting Slated for May 24 ---------------------------------------------------------- Creditors of Herds Of Basingstoke Limited (Company Number 881374) will meet at 11:00 a.m. on May 24 at: Grant Thornton U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon, on May 23 at: N. Ruddock Joint Administrative Receiver Grant Thornton U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP United Kingdom Tel: 020 7383 5100 Fax: 020 7383 4715 Headquartered in London, Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- is the U.K. member of Grant Thornton International, one of the world's leading international organizations of independently owned and managed accounting and consulting firms. IRONMAN LIMITED: Names Zafar Igbal as Administrator --------------------------------------------------- Zafar Iqbal was appointed administrator of Ironman Limited (Company Number 05089433) on April 19. The administrator can be contacted at: Kirkdale House Kirkdale Road London E11 1HP United Kingdom Based in Kirkdale, London, Ironman Limited designs and manufactures clothing. JAMES PLAYDON: Meeting of Creditors Set on May 24 ------------------------------------------------- Creditors of James Playdon Limited (Company Number 1558811) will meet at 12:00 noon on May 24 at: Grant Thornton U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on May 23 at: N. Ruddock Joint Administrative Receiver Grant Thornton U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP United Kingdom Tel: 020 7383 5100 Fax: 020 7383 4715 Headquartered in London, Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- is the U.K. member of Grant Thornton International, one of the world's leading international organizations of independently owned and managed accounting and consulting firms. M.I.A. VIDEO: Creditors' Meeting Set for May 24 ----------------------------------------------- Creditors of M.I.A. Video Entertainment Limited will meet at 10:30 a.m. on May 24 at: 4 Shakespeare Road London N3 1XE United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon, on May 23 at: S.T. Bennett Joint Administrator Berg Kaprow Lewis LLP 35 Ballards Lane London N3 1XW United Kingdom Tel: 020 8922 9222 Fax: 020 8922 9223 Enquiry Line: 020 8922 9121 MISYS PLC: Transfers 5,000 Shares to Scheme Participants -------------------------------------------------------- Misys plc transferred 5,000 ordinary shares on May 18 to participants in its employee share schemes at a price of 178 pence per share. The shares were all formerly held as treasury shares. Following the transfer of shares out of Treasury, Misys plc olds a total of 52,393,436 ordinary shares in Treasury. The total number of ordinary shares in issue, excluding Treasury shares, is 499,333,600. Headquartered in the United Kingdom, Misys PLC -- http://www.misys.com/-- provides industry-specific software serving the international banking and healthcare industries and the U.K. general insurance industry. At Nov. 30, 2005, the company reported GBP155.6 million in total stockholders' deficit. PROMOTIONAL CHOCOLATES: Creditors Pass Winding Up Resolution ------------------------------------------------------------ Creditors of Promotional Chocolates Limited passed a resolution to wind up the company during an extraordinary general meeting on March 15. Gary Steven Pettit and Peter John Windatt, both of BRI Business Recovery and Insolvency, were appointed Joint Liquidators. The company can be reached at: Promotional Chocolates Limited 84 Tenter Road Moulton Park Ind Est Northampton NN3 6AX United Kingdom Tel: 01604 493 020 Fax: 01604 492 228 RENTOKIL INITIAL: HMV CEO Joins Board as Non-Executive Director --------------------------------------------------------------- Rentokil Initial plc disclosed that as at the conclusion of its annual general meeting on May 18, these changes have taken effect: (a) Ron Spinney and Paul Mason will resign as non-executive directors; (b) Alan Giles, the chief executive of HMV Group plc, will join the board as a non-executive director and a member of the audit and remuneration committees. (c) Peter Long, who joined the board in 2002, will succeed Mr. Spinney as the senior independent non-executive director and as chairman of the remuneration committee. At the same time, Mr. Long will relinquish his membership of the audit committee. (d) Duncan Tatton-Brown, who joined the company as a non- executive director in 2005, will become a member of the remuneration committee as well as a member of the audit committee. Headquartered in West Sussex, England, Rentokil Initial PLC -- http://www.rentokil-initial.com/-- is one of the largest business services companies in the world, operating in all the major economies of Europe, North America, Asia Pacific and Africa. The company has some 90,000 employees providing a range of support services in over 40 countries. At Dec. 31, 2005, Rentokil's balance sheet showed GBP659.6 million in stockholders' deficit, compared to a GBP784 million deficit at Dec. 31, 2004. The Company's balance sheet also showed strained liquidity with GBP745 million in assets available to pay GBP789.5 million in the next 12 months. RENTOKIL INITIAL: New Orders Prompt Asset Sale Reconsideration -------------------------------------------------------------- Rentokil Initial plc is reconsidering the sale of its U.S. manned guarding unit, Bloomberg News reports. Talks with potential buyers may be called off following an increase in customer orders, Bloomberg said citing Chief Executive Officer Doug Flynn. "I've thought about ending talks but haven't yet. It's a good business and we don't sell businesses for the sake of it," Mr. Flynn told Bloomberg. As previously reported in the Troubled Company Reporter-Europe, Rentokil completed the sale of its U.K. manned guarding business, Initial Security Limited, to MITIE Group PLC for GBP74.8 million. The Company also recently sold the shares of its Canadian manned guarding business, Rentokil Initial Canada Limited, to Garda World Security Corporation for GBP30.3 million. Headquartered in West Sussex, England, Rentokil Initial PLC -- http://www.rentokil-initial.com/-- is one of the largest business services companies in the world, operating in all the major economies of Europe, North America, Asia Pacific and Africa. The company has some 90,000 employees providing a range of support services in over 40 countries. At Dec. 31, 2005, Rentokil's balance sheet showed GBP659.6 million in stockholders' deficit, compared to a GBP784 million deficit at Dec. 31, 2004. The Company's balance sheet also showed strained liquidity with GBP745 million in assets available to pay GBP789.5 million in the next 12 months. RENTOKIL INITIAL: Reports First Quarter 2006 Trading Update ----------------------------------------------------------- Rentokil Initial plc released its unaudited first quarter trading update for the three months ended March 31, 2006. First Quarter Highlights: -- Group revenue up by 9.5%; organic growth 4.3% -- Group portfolio up by 3.5% (including acquisitions) -- Operating profit and profit before tax in line with expectations, impacted by one-off costs and planned organic investment outlined at preliminary results -- Performance improvement initiatives progressing -- Outlook for 2006 unchanged "In the first quarter we continued to make progress in the performance improvement initiatives which are underway across the group," Rentokil CEO Doug Flynn said. "There was evidence in the quarter that these initiatives are working, with revenues increasing both organically and through acquisitions. Nevertheless there remains much more to do. The profit performance of the group, although down on last year, was in line with our own expectations for the quarter and statements made at the time of the preliminary results in February. "The economic environment in some of our major markets remains unhelpful but we must deal with the markets as they are, not as we would wish them to be. We continue to expect that we will not achieve growth in full year adjusted profit before tax before 2007 but that we will exit 2006 with a rising second half trend." First Quarter Overview Since the interim results in August 2005, the Company has reported on developments in three areas of attention: strategy; people and structure; and operations. Strategy Work continued in the first quarter towards Rentokil's goals to achieve clearer strategic focus and to build stronger strategic positions in our businesses. The acquisition of J.C. Ehrlich Co. Inc. was completed on March 1 for a gross consideration of US$141.8 million (GBP80.1 million). Ehrlich was the largest independently owned pest control company in the USA and the fourth largest overall. Its operations are focused on the eastern seaboard and are complementary to our existing US pest control operations. "This key acquisition gives us a solid platform for growth in the USA, which is considered to be one of the fastest growing of the western pest control markets," the Company said. "Following the acquisition, the USA is now our second largest pest control operation." The intention to divest the manned guarding business was announced in February. The activities in the U.K. and Canada were sold on March 7 and 10 respectively and the Belgian activities on April 21. The group continues to explore the possible disposal of the remaining manned guarding business in the USA. The buy-in of City Link franchises continued in the first quarter. Two businesses with a combined annual turnover of some GBP31 million were acquired for GBP10.5 million. Five bolt-on acquisitions were made during the quarter for a total consideration of GBP2.2 million. These were predominantly in the pest control and tropical plants divisions. The group launched a GBP300 million issue of notes under its EMTN program on March 21. The notes carry a coupon of 5.75% per annum and will mature on March 31, 2016. The issue was aimed at progressively lengthening the group's debt maturity profile and the proceeds were used to pay down bank debt. People and Structure Further senior management appointments were made in the quarter, most notably in the pest control, tropical plants and Asia Pacific businesses. The corporate head offices at Felcourt and East Grinstead have relocated to new offices in London and Gatwick. Operations "Our priorities in the first quarter were to continue the implementation of the detailed turnaround and performance improvement programs," the company said. Progress is being made in the projects across a broad front. In January, the group announced that it would close the loss- making U.K. linen and workwear operations on April 30. Detailed arrangements to assist customers in finding alternative suppliers were mobilised and a consultation and support programme was put in place for the 1,800 affected employees. The U.K. washroom business was finally separated from linen and workwear during December and this quarter was its first as a standalone business. Implementation of the new Oracle ERP and CRM system - which will ultimately run across the group - commenced during the quarter and will be completed in this business during the third quarter of 2006. Sales and marketing efforts have been boosted in the pest control division with the launch of http://www.rentokil.com/on March 1. This global landing page enhances the online content of some of Rentokil's major pest control businesses and provides an e-presence for the first time for others. Early indications are that a significant number of new business leads are being generated through this medium. "We have recently acquired http://www.initial.com/which will be used to develop the online presence of our Initial branded businesses in a similar fashion," the company added. 2006 Outlook Market conditions in the company's textiles and washroom businesses remain difficult in some of the main European markets, particularly France, the Netherlands, Belgium and Germany. Across the group as a whole, revenue growth and contract retention are both expected to improve in 2006 and there was some evidence of this in the first quarter. "We continue to expect that we will not achieve growth in full- year adjusted profit before tax before 2007 but that we will exit 2006 with a rising second half trend," the company disclosed. Headquartered in West Sussex, England, Rentokil Initial PLC -- http://www.rentokil-initial.com/-- is one of the largest business services companies in the world, operating in all the major economies of Europe, North America, Asia Pacific and Africa. The company has some 90,000 employees providing a range of support services in over 40 countries. At Dec. 31, 2005, Rentokil's balance sheet showed GBP659.6 million in stockholders' deficit, compared to a GBP784 million deficit at Dec. 31, 2004. The Company's balance sheet also showed strained liquidity with GBP745 million in assets available to pay GBP789.5 million in the next 12 months. RYAN & MILLER: Begins Winding Up Proceedings -------------------------------------------- Ryan & Miller Developments Limited is winding up its operations after creditors decided to liquidate the company's assets on March 20. Jane Walker, of Errington Walker Limited, will lead the winding up proceedings. The company can be reached at: Ryan & Miller Developments Limited Unit 2 Crown Road Birmingham B9 4TT United Kingdom Tel: 0121 773 7711 S.B. MAINTENANCE: Financial Woes Prompt Liquidation --------------------------------------------------- S.B. Maintenance Limited is voluntarily winding up its operations after creditors established the company could no longer continue its business due to mounting debts. Michael Robert Fortune and Carl Derek Faulds, of Portland Business & Financial Solutions Ltd., were appointed Joint Liquidators. The company can be reached at: S.B. Maintenance Limited 9A Manor Road Verwood Dorset BH316DS United Kingdom Tel: 01202 827 260 SIRA GROUP: Creditors' Meeting Slated for May 26 ------------------------------------------------ Creditors of Sira Limited, Sira Technology Limited, Sec Realisations Limited, Image Automation Limited, Sira Group Limited (All in Administration (The Group)) will meet at 10:00 a.m. on May 26 at: The Aurora International Hotel Southgate Avenue Crawley RH10 6LW United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon, on May 25 at: Martin Ellis and Andrew Hosking Joint Administrators Grant Thornton U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP United Kingdom Tel: 020 7383 5100 Fax: 020 7383 4715 Headquartered in London, Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- is the U.K. member of Grant Thornton International, one of the world's leading international organizations of independently owned and managed accounting and consulting firms. SIRVA INC: S&P Downgrades Corporate Credit Rating to B from B+ -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on SIRVA Inc. and its primary operating subsidiary, SIRVA Worldwide Inc., including its corporate credit ratings to 'B' from 'B+'. All ratings on the Westmont, Illinois-based relocation services provider remain on CreditWatch with negative implications, where they were placed on March 15, 2005. The downgrade follows the company's announcement of preliminary operating results for the nine months ended Sept. 30, 2005, which were well below both the prior-year period's results and management's expectations, due to: -- continued difficult market fundamentals in Europe; -- a higher-than-expected cost structure; and -- margin compression. In addition, the continued CreditWatch listing reflects the absence of current financial statements and the need to seek amendments from lenders to its credit facility for financial covenants to provide adequate flexibility for 2006, despite lenders providing ongoing support since early 2005. SODO DESIGN: Meeting of Creditors Set for May 24 ------------------------------------------------ Creditors of SODO Design Limited (Company Number 05320622) will meet at 11:00 a.m. on May 24 at: Kensington Marriott 147 Cromwell Road London SW5 0TH United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on May 23 at: Allan David Kelly Joint Administrator Tait Walker Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS United Kingdom Tel: 0191 285 0321 Fax: 0191 284 9117 Tait Walker -- http://www.taitwalker.co.uk/-- have established core service lines to meet the ever growing complexity of our clients needs in a timely and efficient manner. TOMORROWS WORLD: Names Ian William King Liquidator -------------------------------------------------- Creditors of Tomorrows World Centre Limited decided to wind up the company's operations during an extraordinary general meeting on March 14. Ian William King, of Tenon Recovery, was appointed Liquidator. The company can be reached at: Tomorrows World Centre Limited 173-175, Coast Road Newcastle Upon Tyne Tyne and Wear NE7 7RR United Kingdom Tel: 0191 240 0555 UNIFAB ENGINEERING: Claims Registration Ends May 31 --------------------------------------------------- Creditors of Unifab Engineering Ltd. have until May 31 to send in their full names, addresses and descriptions, full particulars of debts or claims, and the names and addresses of Solicitors to appointed Joint Liquidators Peter A. Blair and Richard A.B. Saville, of Begbies Traynor. The company can be reached at: Unifab Engineering Ltd. Pelham Road Cleethorpes South Humberside DN357JT United Kingdom Tel: 01472 314 444 Fax: 01472 230 149 WESTON STAFF: Creditors Resolve to Wind Up Operations ----------------------------------------------------- Weston Staff Limited is liquidating its assets after creditors resolved to wind up the company's operations on March 8. Nigel Price and Mark Elijah Thomas Bowen, both of Moore Stephens LLP, were appointed Joint Liquidators. The company can be reached at: Weston Staff Limited 63 Orchard Street Weston-Super-Mare Avon BS231RJ United Kingdom Tel: 01934 626 211 Fax: 01934 622 249 WHINSTONE 2: Fitch Rates GBP168.5-Million Notes at BB ----------------------------------------------------- Fitch Ratings gave Whinstone 2 Capital Management Limited's GBP equivalent 168.5 million Class C1, C2 and C3 notes expected ratings of BB. The notes reference the performance of the Granite Master Issuer plc reserve fund and the Granite Finance Funding 2 Limited reserve fund, which act as credit enhancement for six mortgage- backed securitization transactions launched by Northern Rock plc. The final ratings are contingent on receipt of final documents conforming to information already received. The expected ratings address the ultimate payment of interest and ultimate repayment of principal and are based on the quality of the collateral of the master trust property, the underwriting and servicing capabilities of NR as well as the sound financial and legal structure. Credit enhancement for the Class C1, C2 and C3 notes is provided by a threshold amount at closing of GBP101m to be retained by NR. At closing, NR will buy credit protection via a credit default swap from Whinstone 2 against a portion of the target balance of the GMI program reserve funds equivalent to 1.65% of the outstanding notes of GMI series 05-1 to 06-1 - together the "GMI notes" as at closing of Whinstone 2. The issuer will in turn pass on its assumed risk to the capital markets through the issuance of a series of Class C1, C2 and C3 credit-linked notes. The note proceeds will be deposited in the principal collections account held by NR in the issuer's name. Interest will be paid on the notes from interest on the bank account and a premium payable by NR in respect of the CDS. WHINSTONE 2: Moody's Assigns (P)Ba2 Rating to GBP169-Mln Notes -------------------------------------------------------------- Moody's Investors Service has assigned provisional long term credit ratings to this Class of Notes issued by Whinstone 2 Capital Management Limited: -- (P)Ba2 to the GBP/US$/EUR Class C Notes due 2055 The Class C will likely be split in USD, EUR and GBP with a total equivalent of GBP168,500,000. The ratings assigned take into account the credit risk associated with the Credit Default Swap and the legal and structural integrity of the transaction. This is a synthetic transaction, where investors take a certain portion of the credit risk of the Granite Master Issuer Reserve Fund and the Funding 2 Reserve Fund, both part of the Granite Master Trust. Concurrently with the issuance of the Notes the Issuer will, on the Closing Date, enter into the CDS with Northern Rock in its role as Credit Swap Counterparty. In return for periodic payments of Swap Premium by the Credit Swap Counterparty, the Issuer will be liable to make Credit Protection Payments to the Credit Swap Counterparty upon the occurrence of a Credit Event. A Credit Event will occur if on the Swap Termination Date the allocated Reserve Fund Shortfall exceeds the Threshold Amount. Besides available excess spread in the underlying Granite Master Trust, the transaction benefits from the Threshold Amount, which equals GBP101 million. Only in case the allocated Reserve Fund Shortfalls exceed the Threshold Amount, Credit Protection Payments will be payable by the Issuer on the Swap Termination Date. The transaction will be exposed to potential Granite Master Issuer Reserve Fund Shortfalls as long as any note issued as part of Granite Master Issuer Series 05-1 to 06-1 remains outstanding. In case of further issuance by the Granite Master Issuer the required Reserve Funds might increase. In order to keep the credit exposure of the transaction at the initial level, the Allocated Percentage of the Reserve Funds will decrease in such case. The ratings assigned to the Whinstone 2 Notes may experience greater volatility than other U.K. Prime RMBS as the assets backing the Whinstone 2 transaction are first loss pieces of the Granite Master Trust; the underlying Reserve Funds and thus the Whinstone 2 Notes are exposed to potential deterioration of the credit quality or the characteristics of the Granite Master Trust pool. The pool is currently performing in line with expectations and remains of high credit quality with moderate LTV's and significant amounts of seasoning. Northern Rock, the originator and servicer of the underlying mortgage assets is currently rated A1/Prime-1. YOLDINGS MARINE: Daniel Platt Leads Winding Up Process ------------------------------------------------------ Daniel Platt, of SPW, was appointed Liquidator of Yoldings Marine Limited after creditors decided to wind up the company's operations on March 13. Director E. Bohloulzadeh revealed the company could no longer continue its operations due to mounting debts. The company can be reached at: Yoldings Marine Limited 2 The Waterfront Eastbourne East Sussex BN235UZ United Kingdom Tel: 01323 470 882 ********* 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, Carmel Paderog, and Joy Agravante, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. 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