/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060524.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, May 24, 2006, Vol. 7, No. 102 Headlines A U S T R I A GO! AGENCY: Awaits Final Distribution & Closing Protocol OBJEKTSERVICE GBRIC: Awaits Final Payment & Closing Protocol F R A N C E ALSTOM SA: Heads EUR247 Million Hungarian Deal EUROTUNNEL SA: Shareholders Want Equity Interests Protected G E R M A N Y DUNKER ERDBAU: Registration of Claims Ends June 1 E & W FOOD: Claims Filing Period Ends June 6 FACT AUTOMATION: Creditors' Meeting Slated for July 26 H. HERRMANN: Claims Registration Ends May 26 HENDEL DACH: Claims Filing Period Ends May 30 KELLNER GMBH: Claims Registration Ends June 1 LATTEMANN BAU: Meeting of Creditors Set for July 5 LOHNSTEUERHILFEVEREIN KREIS: Claims Registration Ends June 6 PHILIPP AUG: Claims Filing Period Ends May 31 TITAN EUROPE: Fitch Affirms EUR7.9 Million Class F Notes at BB VERWALTUNGSSERVICE LIMITED: Meeting of Creditors Set for June 21 I R E L A N D HARVEST CLO: Fitch Rates EUR16 Million Class E Notes at BB I T A L Y FIAT SPA: Chief Executive & Chairman Hike Equity Stakes K A Z A K H S T A N AITAS: Mangistau Court Opens Bankruptcy Proceedings AMIR: Creditors Must File Claims by June 5 AVTOTRANSSERVICE: Creditors Must File Claims by June 5 AZIATRUBPLAST: Creditors Must File Claims by June 2 EVROAZIA: Claims Registration Ends June 5 INTERNATIONAL ENGINEERING: Claims Registration Ends June 2 KEREKU-TAU: Proof of Claim Deadline Slated for June 5 PE AI: Proof of Claim Deadline Slated for June 2 SHYGYS ASYL: Court Sets June 5 Claims Bar Date VOSTOKLESTORG: Creditors' Claims Due June 5 N E T H E R L A N D S E-MAC DE: Moody's Rates EUR2.5-Mln Sub. Class F Notes at Ba3 KONINKLIJKE AHOLD: Dutch Court Convicts Three Former Executives KONINKLIJKE AHOLD: ICA Venture to Sell Logistics Operations VNU NV: Moody's Keeps Ba1 Ratings Under Review & May Downgrade VNU NV: Valcon Takeover Prompts S&P to Lower Ratings to B+/B R U S S I A ARMAVIR-GLASS: Court Starts Bankruptcy Supervision ASTRAKHAN-POLYMER: Astrakhan Court Commences Bankruptcy Process DAGFOS: Court Names A. Magomedov as Interim Insolvency Manager ENERGY: Tula Court Opens Bankruptcy Proceedings KORDYSH-WOOD: Court Appoints O. Savin as Insolvency Manager MAGNAT: Court Sets Bankruptcy Hearing for June 5 OAO ROSNEFT: Recommends Board Re-Election to Shareholders SEL-KHOZ-KHIMIYA: Bankruptcy Hearing Slated for Sept. 6 SMAMO: Penza Court Taps V. Batrakov to Manage Insolvency Assets SPETS-STROY: Court Begins Bankruptcy Supervision YUKOS OIL: Stanislav Vinokurov Replaces A. Nazarov as Director S P A I N J.L. FRENCH: Parent Can Lend Up to US$1.2-Mln to Spanish Unit U K R A I N E AGROMEHKOMPLEKT: Court Begins Bankruptcy Supervision AQUARIUM: Court Names M. Kulga as Insolvency Manager BUDKOMPLEKT: Zaporizhya Court Launches Bankruptcy Process DELFI: Harkiv Court Commences Bankruptcy Proceedings MALOVISKIVSKIJ ALCOHOL: Court Starts Bankruptcy Supervision ROMANCHUKIVSKE: Sumi Court Opens Bankruptcy Proceedings ORCHID INTER: Kyiv Court Taps Yurij Ulyanchuk as Liquidator TEHSNAB PLUS: Court Names S. Kobilko to Liquidate Assets ZDOLBUNIV' BREAD: Court Taps Franko Oleg as Liquidator U N I T E D K I N G D O M ARVIN INT'L: Moody's Places Parent's Ratings Under Review ASHLAND GLASS: Claims Registration Ends June 17 AYNSLEY WINDOWS: Creditors Resolve to Liquidation CAMPFIELD LITHO: Joint Liquidators Take Over Operations EMI GROUP: March 31 Balance Sheet Upside Down By GBP726.6 Mln EUROTUNNEL: Shareholders Want Equity Interests Protected G BUILD: Creditors Resolve to Liquidate Assets GARLIC FARMS: Brings In Portland Business as Administrator GENERAL MOTORS: Sues Royal & Sun Over Asbestos Claims GGB ENGINEERING: Financial Woes Prompt Liquidation J.L. FRENCH: Parent Can Lend Up to US$1.2-Mln to Spanish Unit M.K. FASTENINGS: Taps F.A. Simms to Administer Assets MALIKSONS WAREHOUSING: Names Vincent Simmons as Administrator MBA COMPUTER: Creditors Confirm Voluntary Liquidation NASSERCHEM LIMITED: Hires Chantrey Vellacott as Administrator NORTHERN PACKAGING: Brings In Ian Kings to Administer Assets OMEGA ADVERTISING: Names Joint Administrators from Wilson Pitts R & V STRAUGHAN: Taps Ninos Koumettou to Liquidate Assets R.H. MEARS: Tony Mitchell Leads Winding Up Procedure RANK GROUP: Cancels Another 1,500,000 Shares in Buyback Program RUBBER & PLASTIC: Taps Joint Administrators from DTE Leonard ROYAL & SUNALLIANCE: GM Sues Insurer Over Asbestos Claims SANDFORD SPA: Taps Poppleton & Appleby to Administer Assets SOKKIA LIMITED: Claims Filing Period Ends June 30 STONES DELICATESSEN: Names Cooper Parry as Administrator STONES GROUP: Appoints Joint Administrators from Cooper Parry SYNERGY KITCHENS: Brings In Administrator from Walletts VANGUARD PLC: Brings In Joint Administrators from B & C XL PACKAGING: Names M.S.E. Solomons Liquidator ********* ============= A U S T R I A ============= GO! AGENCY: Awaits Final Distribution & Closing Protocol -------------------------------------------------------- The Court of Vienna will close the bankruptcy case of Go! Agency on Integrated Marketing (FN 242654w) after the Debtor's final distribution to creditors. Court-appointed property manager Georg Getreuer presented a draft allocation plan which gives an 8.89% recovery to creditors. Headquartered in Vienna, Austria, Go! Agency on Integrated Marketing declared bankruptcy on July 14, 2005 (Bankr. Case No. 4 S 75/05i). OBJEKTSERVICE GBRIC: Awaits Final Payment & Closing Protocol ------------------------------------------------------------ The Court of Vienna will close the bankruptcy case of Objektservice Gbric KEG (FN 203239g) after the Debtor's final distribution to creditors. Court-appointed property manager Wolfgang Pitzal presented a draft allocation plan which gives creditors a 22.48% claims recovery. Headquartered in Vienna, Austria, Objektservice Gbric KEG declared bankruptcy on Sept. 14, 2004 (Bankr. Case No. 6 S 96/04s). Hannelore Pitzal represented the property manager in the bankruptcy proceedings. =========== F R A N C E =========== ALSTOM SA: Heads EUR247 Million Hungarian Deal ---------------------------------------------- BKV, the Budapest public transport operator, has awarded the Alstom-led Budapest Metropolis Consortium a contract for the supply of 170 Metropolis metro cars. Alstom's share represents approximately 90% of the EUR247 million order. The agreement includes additional provision for the maintenance of these vehicles for a three-year period as well as an option for a further 28 cars. Alstom's local partner is GANZ Transelektro Traction Electrics. In 1896, Budapest was the first city in continental Europe to inaugurate an electrically powered metro. Since then, the network has been extended to three lines covering 31 km with 78 stations, it is being further extended with a fourth 7.3 km line linking the south-west of the city to a future central railway station, due to open in 2009. The construction of yet another 3.2 km extension towards the northeast of the city has been planned for the next three years. Fifteen four-car train sets from the Metropolis range, each with a 800 passenger capacity will run on this new line with an option for seven train sets for the future extension. Additionally, 22 five-car trainsets, with a capacity of 1020 passengers, will replace the existing fleet on line 2. The main advantages of this Metropolis rolling stock come from its: -- modular construction; -- two to nine car configuration; -- ability to run in automatic mode, -- reliability; and -- compatibility with Hungarian operating conditions. As Alstom's first major reference in Hungary, this project confirms the Company's leading position in metro solutions: -- six billion passengers travel on an Alstom metro every year; -- one metro out of every four metros in the world is made by Alstom; -- more than 40 towns worldwide have opted for an Alstom metro; -- Alstom has more than 70 years experience in metro design and construction. Headquartered in Paris, France, Alstom S.A. -- http://www.alstom.com/-- is a leading maker of power-generation systems and constructs power plants, rail equipment, luxury passenger ships, naval vessels, and natural gas tankers. It also produces electrical drives, motors, and generators. The group generates EUR13 billion in annual revenues and employs more than 70,000 people worldwide. The group posted EUR865 million in net loss and EUR1.4 billion in net debt for the financial year 2004/2005. EUROTUNNEL SA: Shareholders Want Equity Interests Protected ----------------------------------------------------------- Eurotunnel SA may need to present a restructuring plan that provides no more than half of any capital increase to creditors for the deal to get shareholders' acceptance, Alan Katz of Bloomberg News cited shareholder representative Nicolas Miguet. "The structure today that would be acceptable would be nothing more than half for you, half for me, at maximum," of any increase in the value of the company from a debt reduction, Mr. Miguet told Bloomberg. According to the report, the Company needs to slash up to EUR5 billion in debts to lower financing costs so the tunnel operator can grow and possibly pay a dividend in 2009. For shareholders to accept a convertible bond in a reorganization, it would have to be based on a valuation of EUR1.2 to EUR1.4 a share, he added. Mr. Miguet, which led a shareholder revolt in 2004 that toppled the company's management team, estimated capital increase to be between EUR4 billion and EUR6 billion, Bloomberg relates. Mr. Katz said a bondholders' committee, representing GBP1.2 billion of debt, is yet to receive a restructuring proposal from the company. The committee is represented by Close Brothers Group Plc. Debt Restructuring Agreement On Jan. 31, 2006, the Group signed an outline on a debt restructuring agreement with the ad hoc committee of creditors. The ad hoc committee, which holds more than 50% of the total debt, represents majority of the Company's junior creditors, namely European Investment Bank, Franklin Mutual Advisers LLC, MBIA and Oaktree Capital Management in April 2005. Eurotunnel needs to obtain approval from other creditors and shareholders for a final agreement. Absent a final agreement, the Group may default in January 2007. On April 26, Eurotunnel obtained a third extension of its credit waiver, which calls for creditor talks to continue through July 12. As reported in TCR-Europe on May 19, Eurotunnel requested the British and French market authorities to retain the suspension of the company's shares on the two exchanges to allow creditor talks to continue. Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faces uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. ============= G E R M A N Y ============= DUNKER ERDBAU: Registration of Claims Ends June 1 ------------------------------------------------- Creditors of Dunker Erdbau GmbH have until June 1 to register their claims with court-appointed provisional administrator Stephan Poppe. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on July 4, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dessau Hall 123 Willy-Lohmann-Str. 33 Dessau, 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 Dessau opened bankruptcy proceedings against Dunker Erdbau GmbH on April 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Dunker Erdbau GmbH Attn: Ilona Dunker, Manager Platz des Friedens 2 A 06420 Golbitz, Germany The administrator can be contacted at: Stephan Poppe Universitatsring 6 06108 Halle, Germany Tel: 0345/530490 Fax: 0345/5304926 E & W FOOD: Claims Filing Period Ends June 6 -------------------------------------------- Creditors of E & W Food Service GmbH & Co. KG have until June 6 to register their claims with court-appointed provisional administrator Ralph Buenning. Creditors and other interested parties are encouraged to attend the meeting at 10:35 a.m. on July 4, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 2 Upper Floor Hamburg Avenue 26 30161 Hanover, 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 Hannover opened bankruptcy proceedings against E & W Food Service GmbH & Co. KG on March 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: E & W Food Service GmbH & Co. KG Merkurstr. 4 30419 Hannover, Germany Attn: Bernd Weykopf, Manager Iltener Str. 50 31275 Lehrte, Germany Bernd Elsholz, Manager Beeken 9 38268 Lengede, Germany The administrator can be contacted at: Ralph Buenning Karl-Wiechert-Avenue 1c 30625 Hannover, Germany Tel: 0511/554706-0 Fax: 0511/554706-99 FACT AUTOMATION: Creditors' Meeting Slated for July 26 ------------------------------------------------------ The court-appointed provisional administrator for FACT Automation GmbH, Hans-Jorg Derra, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:00 a.m. on July 26. The meeting of creditors and other interested parties will be held at: The District Court of Goppingen Hall 0.24 Pfarrstr. 25 73033 Goppingen, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. Creditors have until June 6 to register their claims with the court-appointed provisional administrator. The District Court of Goppingen opened bankruptcy proceedings against FACT Automation GmbH on April 1. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: FACT Automation GmbH Attn: Juergen Stegmaier, Manager Buchenstr. 38 89558 Bohmenkirch, Germany The administrator can be reached at: Hans-Jorg Derra Frauenstr. 14 89073 Ulm, Germany Tel: 0731/922880 H. HERRMANN: Claims Registration Ends May 26 -------------------------------------------- Creditors of H. Herrmann GmbH have until May 26 to register their claims with court-appointed provisional administrator Karl-Heinz Blaha. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on June 8, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Celle Hall 014 Ground floor Muehlenstrasse 4 29221 Celle, 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 Celle opened bankruptcy proceedings against H. Herrmann GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: H. Herrmann GmbH Attn: Horst Herrmann, Manager Celler Str. 76 29308 Winsen/Aller, Germany The administrator can be contacted at: Karl-Heinz Blaha Bahnhofstr. 30A 29221 Celle, Germany Tel: 05141/28011 Fax: 05141/24722 E-mail: Rae_valentiner_blaha_buchholz@gmx.de HENDEL DACH: Claims Filing Period Ends May 30 --------------------------------------------- Creditors of Hendel Dach und Fassaden GmbH have until May 30 to register their claims with court-appointed provisional administrator Dr. Peter Naarmann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 11, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 24 Fuerstenstrasse 21 Chemnitz, Germany, 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 Hendel Dach und Fassaden GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Hendel Dach und Fassaden GmbH Attn: Alfons Geiss, Manager Sehma 5 09465 Sehmatal-Cranzahl, Germany The administrator can be contacted at: Dr. Peter Naarmann Dresdner Str. 86 09130 Chemnitz, Germany KELLNER GMBH: Claims Registration Ends June 1 --------------------------------------------- Creditors of Kellner GmbH have until June 1 to register their claims with court-appointed provisional administrator Karl-Heinz Blaha. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 15, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Celle Hall 014 Ground Floor Muehlenstrasse 4 29221 Celle, 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 Celle opened bankruptcy proceedings against Kellner GmbH on April 28. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kellner GmbH Attn: Rene Kellner, Manager Garden and Landscape gardening Heeseloh 6 29348 Eschede, Germany The administrator can be contacted at: Karl-Heinz Blaha Bahnhofstr. 30A 29221 Celle, Germany Tel: 05141/28011 Fax: 05141/24722 E-mail: Rae_valentiner_blaha_buchholz@gmx.de LATTEMANN BAU: Meeting of Creditors Set for July 5 -------------------------------------------------- The court-appointed provisional administrator for Lattemann Bau GmbH & Co. KG, Dr. Rainer Eckert, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:40 a.m. on July 5. The meeting of creditors and other interested parties will be held at: The District Court of Hanover Hall 226 2 Upper floor Hamburg Avenue 26 30161 Hanover, 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 6 to register their claims with the court-appointed provisional administrator. The District Court of Hanover opened bankruptcy proceedings against Lattemann Bau GmbH & Co. KG on April 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lattemann Bau GmbH & Co. KG Adenauer Avenue 8 30175 Hanover, Germany The administrator can be reached at: Dr. Rainer Eckert Arthur-Menge-Ufer 5 30169 Hanover, Germany Tel: 0511/626287-0 Fax: 0511/626287-10 LOHNSTEUERHILFEVEREIN KREIS: Claims Registration Ends June 6 ------------------------------------------------------------ Creditors of Lohnsteuerhilfeverein Kreis Borken e.V. have until June 6 to register their claims with court-appointed provisional administrator Volker Heynck. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on June 26, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Muenster Meeting Room 13 B Gerichtsstr. 2-6 48149 Muenster, 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 Muenster opened bankruptcy proceedings against Lohnsteuerhilfeverein Kreis Borken e.V. on April 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Lohnsteuerhilfeverein Kreis Borken e.V. Old Cross Way 8 46325 Borken, Germany Attn: Barbara Quellmelz, Manager Wulfkamp 52 46342 Velen, Germany The administrator can be contacted at: Volker Heynck Bocholter Str. 48 46325 Borken, Germany PHILIPP AUG: Claims Filing Period Ends May 31 --------------------------------------------- Creditors of Philipp Aug. Weinaug Grafik & Druckerei GmbH have until May 31 to register their claims with court-appointed provisional administrator Dr. Oliver Liersch. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on June 15, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hameln Hall 106 Zehnthof 1 31785 Hameln, 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 Hameln opened bankruptcy proceedings against Philipp Aug. Weinaug Grafik & Druckerei GmbH on April 28. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Philipp Aug. Weinaug Grafik & Druckerei GmbH Bahnhofstr. 5 30890 Barsinghausen, Germany Attn: Harald Friedrich, Manager Rotrehre 28 31542 Bad Nenndorf, Germany The administrator can be contacted at: Dr. Oliver Liersch Karl-Wiechert-Avenue 1c 30625 Hanover, Germany Tel: 0511/554706-0 Fax: 0511/554706-99 TITAN EUROPE: Fitch Affirms EUR7.9 Million Class F Notes at BB -------------------------------------------------------------- Fitch Ratings affirmed Titan Europe 2005-1 Plc's mortgage-backed floating rate notes due 2014 as: a) EUR188.8 million Class A at AAA; b) EUR5,000 Class X at AAA; c) EUR31.5 million Class B at AA; d) EUR22.1 million Class C at A; e) EUR22.1 million Class D at BBB+; f) EUR14.2 million Class E at BBB-; and g) EUR7.9 million Class F at BB. The affirmation follows the prepayment of two loans, JP Residential 1 and 2. These loans accounted for 16.4% of the original pool and were secured on two residential multi-family portfolios in Berlin. No other prepayments have occurred since closing in July 2005. The remaining four loans are performing in line with expectations. All loans are secured on properties located in Germany. The pool's current weighted average debt-service coverage ratio of 1.72x constitutes a small improvement from the closing figure of 1.67x. The weighted average loan-to-value of the pool improved to 69.5% from 75.8% due to the prepayments. All figures exclude the unsecuritized B-note of the largest loan, Deutsche Telekom. One loan, Best Western, reported a DSCR of 0.64x in April 2006. The EUR7.3 million loan is secured on the Best Western hotel near Munich Airport. The decline in DSCR is partly a seasonal effect commonly seen in the hotel business but also partly a result of the loss of a lucrative contract. However, the borrower has an annual budget to counter adverse effects like this. In addition, the overall DSCR of this loan since closing has been 1.53x to date. All obligations have been met, with no shortfall. The occupancy rates and therefore net operating income and DSCR are expected to improve strongly during the next two periods since the August and October interest payment dates fall into the high season. Also, the borrower hopes to further improve occupancy rates as a result of the recent expansion of Munich Airport. The largest loan, Deutsche Telekom, has an A/B-note structure. The EUR226 million A-note is securitized and accounts for 79% of the current pool. The EUR24.6 million B-note is subordinated. The loan is secured on seven office buildings across Germany, fully occupied by Deutsche Telekom. The A-note DSCR and LTV are 1.78x and 75%, respectively. The seven DT leases expire in 2019, well after loan maturity in 2011. DT's rental payments of EUR20 million p.a. account for approximately 77% of the pool's gross rental income. Despite a slightly increased concentration risk, the current pool is of similar quality as the original portfolio. The main tenant in the transaction is highly rated and has a long lease term. Overall DSCR and LTV show improvements. The good performance warrants the affirmations as listed above. VERWALTUNGSSERVICE LIMITED: Meeting of Creditors Set for June 21 ---------------------------------------------------------------- The court-appointed provisional administrator for Verwaltungsservice Limited, Dr. Sven-Holger Undritz, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 12:05 p.m. on June 21. The meeting of creditors and other interested parties will be held at: The District Court of Flensburg Hall A 220 Flensburg, 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 7 to register their claims with the court-appointed provisional administrator. The District Court of Flensburg opened bankruptcy proceedings against Verwaltungsservice Limited on April 26. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Verwaltungsservice Limited Attn: Heike Michel, Manager Holzmarkt 6 25712 Burg, Germany The administrator can be reached at: Dr. Sven-Holger Undritz c/o White & Case Insolvenz GbR Westerallee 12 24937 Flensburg, Germany ============= I R E L A N D ============= HARVEST CLO: Fitch Rates EUR16 Million Class E Notes at BB ---------------------------------------------------------- Fitch Ratings assigned Harvest CLO IV PLC's upcoming issue of EUR752 million notes due 2021 expected ratings. The arbitrage collateralized loan obligation is a securitization of primarily European senior secured loans. This transaction is the fourth European CLO managed by Mizuho Corporate Bank Limited. -- EUR456 million Class A-1A floating-rate notes: AAA; -- EUR74 million Class A-1B floating-rate notes: AAA; -- EUR50 million Class A-2 floating-rate notes: AAA; -- EUR54.6 million Class B-1 floating-rate notes: AA; -- EUR4.4 million Class B-2 fixed-rate notes: AA; -- EUR29 million Class C floating-rate notes: A; -- EUR20 million Class D floating-rate notes: BBB; -- EUR14.4 million Class E-1 floating-rate notes: BB; -- EUR1.6 million Class E-2 fixed-rate notes: BB; -- EUR47 million Class F subordinated notes: not rated; -- EUR20 million Class M combination notes: AAA; -- EUR6 million Class N combination notes: AA; and -- EUR20 million Class O combination notes: BBB. The final ratings are contingent on the receipt of final documents conforming to information already received. The expected ratings of the Class A-1A, A-1B and A-2 notes address ultimate repayment of principal at maturity and timely payment of interest according to the terms of the notes. For all other rated Classes of notes, the ratings address ultimate payment of principal and interest, including deferred interest, at maturity. The ratings on the Class N and O combination notes address the ultimate payment of principal from funds received on their respective components. The rating on the Class M combination note is credit-linked to the French Republic and addresses the ultimate return of principal from proceeds of the Class F component and the repayment of the French OAT strip component. The ratings are based on the quality and diversity of the portfolio of assets, which are selected by the collateral manager subject to the guidelines outlined in the collateral management agreement. The guidelines limit the collateral manager's portfolio allocations with respect to obligor, industry and asset type. Fitch assigned Mizuho Corporate Bank Limited a CDO Asset Manager Rating of 2 for leveraged loans on May 17, based on the company's long history and good market position in the European leveraged finance market, and its longstanding and experienced leveraged finance professionals. The expected ratings are also based on the credit enhancement provided to the various Classes of notes, which consists of the subordinated notes, structural protection covenants and excess spread. The issuer is a company with limited liability, incorporated under the laws of Ireland. The proceeds from the note issuance will be used to purchase a portfolio of primarily European senior secured loans. ========= I T A L Y ========= FIAT SPA: Chief Executive & Chairman Hike Equity Stakes ------------------------------------------------------- Fiat S.p.A Chairman Luca Cordero di Montezemolo and Chief Executive Officer Sergio Marchionne acquired 20,000 shares each in the company, Flavia Krause-Jackson writes for Bloomberg News. Mr. Montezemolo bought the shares at EUR9.45 each, while Mr. Marchionne bought the securities at EUR9.39 apiece. Fiat shares fell 5.4 percent to EUR9.39 on Monday, following the acquisition of the shares. According to the Associated Press, Mr. Marchionne blamed the price skid from unstable financial markets and not on the Juventus soccer scandal, which, like Fiat, is controlled by the Agnelli family. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * In August 2005, S&P revised its outlook on Fiat to stable from negative. At the same time, it affirmed its 'BB-' long-term and 'B' short-term corporate credit ratings on the group. As reported in the TCR-Europe on Feb. 10, Fitch Ratings has changed the Outlook on Fiat S.p.A.'s 'BB-' Senior Unsecured rating to Stable from Negative. The agency has at the same time affirmed the Senior Unsecured and Short-term 'B' ratings. EUR6 billion of debt is affected by this Rating action. The Outlook change is underpinned by early signs that the restructuring plan is on track, the stabilization of Fiat Auto's market shares in late 2005 and the successful resolution of a number of credit issues. =================== K A Z A K H S T A N =================== AITAS: Mangistau Court Opens Bankruptcy Proceedings --------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region commenced bankruptcy proceedings against JSC Aitas on March 20. AMIR: Creditors Must File Claims by June 5 ------------------------------------------ The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Amir insolvent on March 14. Bankruptcy proceedings were introduced at the company. Creditors have until June 5 to submit written proofs of claim to: Elgina Str. 100 Pavlodar, Kazakhstan Tel: 8 (3182) 50-11-47 AVTOTRANSSERVICE: Creditors Must File Claims by June 5 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Avtotransservice insolvent on March 6. Bankruptcy proceedings were introduced at the company. Creditors have until June 5 to submit written proofs of claim. The Specialized Inter-Regional Economic Court of Mangistau Region can be reached at 8(3292) 50-40-61. AZIATRUBPLAST: Creditors Must File Claims by June 2 --------------------------------------------------- LLP Aziatrubplast has declared insolvency. Creditors have until June 2 to submit written proofs of claim to: Almatinskaya Str. 50 Esik Enbekshikazahsky District Almaty, Kazakhstan Tel: 8 (32775) 4-25-75 EVROAZIA: Claims Registration Ends June 5 ----------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Firma Evroazia insolvent on March 10. Bankruptcy proceedings were introduced at the company. Creditors have until June 5 to submit written proofs of claim to: Elgina Str. 100 Pavlodar, Kazakhstan Tel: 8 (3182) 50-11-47 INTERNATIONAL ENGINEERING: Claims Registration Ends June 2 ---------------------------------------------------------- LLP International Engineering Services has declared insolvency. Creditors have until June 2 to submit written proofs of claim to: Abylai Han Ave. 58a Almaty, Kazakhstan KEREKU-TAU: Proof of Claim Deadline Slated for June 5 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Kereku-Tau insolvent on March 15. Bankruptcy proceedings were introduced at the company. Creditors have until June 5 to submit written proofs of claim to: Elgina Str. 100 Pavlodar, Kazakhstan Tel: 8 (3182) 50-11-47 PE AI: Proof of Claim Deadline Slated for June 2 ------------------------------------------------ Pe Ai Eitch Kazakhstan Limited has declared insolvency. Creditors have until June 2 to submit written proofs of claim to: Sadovnikova Str. 5 Almaty, Kazakhstan SHYGYS ASYL: Court Sets June 5 Claims Bar Date ---------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared Enterprise LLP Shygys Asyl Su insolvent on March 16. Bankruptcy proceedings were introduced at the company. Creditors have until June 5 to submit written proofs of claim to: Svetochnaya Str. 4 Shemonaeha, East Kazakhstan Region Kazakhstan Tel: 8 (232) 3-12-79 VOSTOKLESTORG: Creditors' Claims Due June 5 ------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared Enterprise LLP Vostoklestorg insolvent on March 13. Bankruptcy proceedings were introduced at the company. Creditors have until June 5 to submit written proofs of claim to: Svetochnaya Str. 4 Shemonaeha, East Kazakhstan Region Kazakhstan Tel: 8 (232) 3-12-79 ===================== N E T H E R L A N D S ===================== E-MAC DE: Moody's Rates EUR2.5-Mln Sub. Class F Notes at Ba3 ------------------------------------------------------------ Moody's Investors Service assigned provisional long-term credit ratings to the Notes to be issued by E-MAC DE 2006-I B.V.: -- (P)Aaa to the EUR437,000,000 Senior Class A Mortgage- Backed Notes due 2048; -- (P)Aa2 to the EUR27,000,000 Mezzanine Class B Mortgage- Backed Notes due 2057; -- (P)A1 to the EUR17,500,000 Junior Class C Mortgage- Backed Notes due 2057; -- (P)A3 to the EUR11,500,000 Subordinated Class D Mortgage-Backed Notes due 2057; -- (P)Baa2 to the EUR7,000,000 Subordinated Class E Mortgage-Backed Notes due 2057; and -- (P)Ba3 to the EUR2,500,000 Subordinated Class F Notes due 2057. Transaction Structure E-MAC DE 2006-I is the second transaction securitizing mortgage loans originated by GMAC RFC Bank GmbH and a structural copy of E-MAC DE 2005-I. GMAC Bank started its business in Germany in January 2004 and has since then originated residential mortgage loans granted to German individuals. Kreditwerk Hypotheken-Management GmbH will do the servicing of the loan portfolio while Rechtsanwaelte Paulus Westerwelle will conduct the special servicing of delinquent loans. Similar to Dutch E-MAC transactions, part of the proceeds, approximately EUR115 million, of the A, B, C, D and E Notes will be retained by the Issuer and will be used to purchase a further pool of mortgage loans in the first three months after closing. Any amounts that are retained for pre-funding will, to the extent not applied to the purchase of further loans, be applied to the redemption of the Notes in August 2006. Until May 2010, any repayments received under the mortgage loans will be used to redeem the Notes in sequential order starting with the Class A Notes. In and after May 2010, the target amortization criteria must be met in order to apply principal funds on a targeted amortization basis. The Class F Notes will fund the initial balance of the Reserve Fund and will be repaid by available excess spread on the interest payment date in May 2008 and thereafter. The issuer enters into an interest swap agreement in order to hedge its interest rate exposure due to the mismatch of the fixed interest received under the securitized loans and the floating interest payments due under the Notes. Strengths and Weaknesses The transaction benefits, among others, from several positive features: -- the protection against losses through the subordination of the junior tranches and the availability of excess spread to cover losses; -- the Reserve Account, which is funded at closing at EUR2.5 million (representing 0.5% of the balance of Class A, B, C, D and E issued at closing) and will be built up to EUR6 million (representing 1.2% of the balance of Class A, B, C, D and E issued at closing) by trapping of available excess spread; and -- the availability of a liquidity facility provided by Deutsche Bank AG for an amount equal to the higher of 3% of current outstanding balance of the Notes and 0.6% of initial balance of the Notes. Less favorable features and their mitigants are, inter alia, that: -- the pool has limited seasoning as the weighted average seasoning of the pool as of May 1 is 8 months; -- The pool consists of high LTV loans which might lead to an above market average default frequency of the borrowers, and in case of default, to an above average loss severity. Also only 65.2% of the properties in the pool are owner occupied and some regional concentrations in excess of the German benchmark exist in certain federal states. Due to the relatively small size of the pool, also a certain concentration on the single borrower level exists as the 20 largest borrowers represent 2.34% of the preliminary pool. These features have improved compared to E-MAC DE 2005-I and have also been captured by Moody's loan-by-loan analysis (Milan) and resulted in penalties; and -- About 23% of the pool amount is pre-funded, therefore the characteristics of the loans to be added could be different to the preliminary pool. The addition of pre- funded loans is subject to meeting the eligibility criteria. The provisional ratings address the expected loss posed to investors by the legal final maturity of the Notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date. Moody's issues provisional ratings in advance of the final sale of securities, but these ratings represent only Moody's preliminary credit opinions. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the Notes. A definitive rating may differ from a provisional rating. KONINKLIJKE AHOLD: Dutch Court Convicts Three Former Executives --------------------------------------------------------------- The Hon. Frans Bauduin of the Amsterdam Court of Justice convicted three former executives of Royal Ahold N.V., now Koninklijke Ahold N.V., for accounting fraud, three years after the grocery chain's near bankruptcy miss. Judge Bauduin gave nine-month sentences, suspended for two years, and ordered a EUR225,000 fine each to: * former Chief Executive Officer Cees van der Hoeven; and * ex-Chief Financial Officer Michiel Meurs. Judge Bauduin likewise gave a four-month suspended sentence and assigned a EUR120,000 fine to former Ahold board member Jan Andreae. The Court, however, acquitted former Ahold director Ronald Fahlin. Dutch shareholder activist group VEB called the verdict a "disappointment" saying that the sentences "are exceptionally mild," VEB director Peter Paul de Vries told Bloomberg. Prosecutors had accused Messrs. van der Hoeven and Meurs of improperly posting sales from four units in Scandinavia, Argentina and Brazil, the Wall Street Journal reports. The grocery chain had claimed it owned the units, when it only holds a 50% stake and control was in dispute. Prosecutors claimed the former executives knew of the situation, as evidenced by several secret "side letters." According to WSJ, Judge Bauduin ruled that the former executives' explanations were not credible. Mr. van der Hoeven denied knowledge of the letters while Mr. Meurs claimed the side letters were not significant enough to mention publicly. Judge Bauduin said both former executives falsified statements and intentionally gave inaccurate information to investors, hurting "the trust the public should be able to place in the accuracy of annual reports," Joost Akkermans writes for Bloomberg News. Ahold's problems rooted on a separate fraud case in the U.S. against its U.S. Foodservice unit. Judge Bauduin noted that since laws were different in the U.S. and the Netherlands, Ahold's case couldn't be compared to Enron's, where top honchos personally enriched themselves, WSJ relates. Mr. Van der Hoeven said he would appeal the verdict. Prosecutors, who had asked for 14-month prison terms, would also file appeals. Ahold, under new management, was not involved in Monday's suit and is on its way to recovery from the accounting scandal, the Associated Press says. It avoided U.S. prosecution after promising to reform and agreeing to cooperate with the U.S. Securities and Exchange Commission, AP relates. The company settled with Dutch prosecutors for US$9.6 million in response to a formal reprimand from the Dutch financial watchdog. In November 2005, Ahold agreed to pay a total of US$1.1 billion to settle all securities law claims asserted against Ahold and certain other defendants in the securities litigation pending in the United States District Court for the District of Maryland. About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- 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. KONINKLIJKE AHOLD: ICA Venture to Sell Logistics Operations ----------------------------------------------------------- ICA Ahold, a joint venture among Royal Ahold, ICA Fordbundet (Sweden) and Canica AS (Norway), is selling the property at Kolven 2, from which ICA will run its distribution operations in Helsingborg, for SEK946 million. The buyer is Kundvagnen Holding AB, a joint venture between GE Real Estate and London & Regional, with whom ICA has also signed a long-term lease agreement. The agreement was signed on May 22, with possession for the buyer to take place on Oct. 1. The sale will result in a capital gain of approximately SEK300 million, which will affect ICA's results for the fourth quarter in 2006. "We are selling this property to release capital that we are going to invest in new stores and hypermarkets," says Bo Liffner, CEO, ICA Fastigheter AB. ICA's distribution operations in Helsingborg will not be affected by the sale of the property; they will simply continue with ICA as a lessee. Kundvagnen already owns ICA's other warehouse properties in Sweden, for which ICA has corresponding lease agreements. ICA Ahold (Sweden) is owned 50% by Royal Ahold, 30% by ICA Fordbundet and 20% by Canica. About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- 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. VNU NV: Moody's Keeps Ba1 Ratings Under Review & May Downgrade -------------------------------------------------------------- Moody's Investors Service reveals that VNU N.V.'s Ba1 Corporate Family Rating and its Ba1 senior unsecured long-term debt ratings remain under review for possible downgrade following the announcement that the offer by Valcon Acquisitions B.V., a vehicle owned by a group of financial investors, to acquire VNU's equity for around EUR7.6 Billion has been declared unconditional. The offer was accepted by 78.7% of VNU's ordinary shareholders and Valcon has waived the revised offer condition that a level of 80% acceptances be achieved before the bid is declared unconditional. Moody's will comment further pending further clarification of VNU's post transaction capital structure. However, Moody's notes that material proportion of the purchase price is being funded by debt. This creates significant downward pressure for VNU's ratings and is likely to lead to a downgrade of VNU's CFR into the single B category. Moody's further notes that the ratings do not yet reflect the eventual structure of VNU's debt post completion of the transaction or the ranking of the rated bonds within that structure should they remain outstanding. Moody's will review the senior debt ratings of VNU with a focus on the various funding instruments the new owners choose to apply and their impact on VNU's current debt should it remain outstanding, and on the company's revised business and financial strategy. Given the lack of indenture protection there is a possibility that VNU nv's rated senior debt to the extent that it remains outstanding could be notched down from VNU's Corporate Family Rating. Nielsen Media Research's (NMR) bonds appear to have a stronger negative pledge position compared to VNU N.V.'s VNU N.V. is an international information and media company based in Haarlem, The Netherlands. VNU NV: Valcon Takeover Prompts S&P to Lower Ratings to B+/B ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its long- and short- term corporate credit ratings on Dutch media group VNU N.V. to 'B+/B' from 'BBB-/A-3'. This follows a declaration by Valcon Acquisition B.V., a holding company owned by a private equity consortium, that its takeover bid for VNU is now unconditional after receipt of 78.7% acceptance of its offer. All ratings remain on CreditWatch with negative implications, where they were placed on Oct. 12, 2005. The CreditWatch placement reflects the significant uncertainties surrounding VNU's future financial profile following the private equity takeover and expected capital restructuring. "The lowering of the long-term rating to 'B+' reflects our expectation that the magnitude of additional debt under the pending capital restructuring will preclude a higher rating," said Standard & Poor's credit analyst Paul Draffin. This assessment is based on the price paid for VNU, which represents an enterprise multiple of 2005 EBITDA, before one-off items, of about 15x, and the need for the new private-equity owners to implement a capital structure that delivers an acceptable investment return. Standard & Poor's will decide on the final ratings and resolution of the CreditWatch once details of the group's future capital structure are known. S&P notes that any unsecured debt outstanding at VNU following the capital restructuring would likely be rated up to two notches below the corporate credit rating, reflecting the expected level of subordination to any new secured acquisition debt. Notwithstanding the substantial expected increase in financial risk, VNU's credit quality will continue to be supported by the group's satisfactory business profile, based on its solid market positions in media measurement and retail marketing information and its relatively stable and predictable cash flow generation through the economic cycle. These business strengths are tempered by the competitive nature of some of the group's key markets, and by ongoing customer pressure on prices and service levels that underpins the need for an efficient and reducing cost base. S&P will resolve the CreditWatch once details of the group's proposed capital structure, liquidity position, minority influence, and any de- leveraging strategies are known. "Given the expectation of a very highly leveraged capital structure, S&P considers it likely that the long-term rating will be lowered by another notch as the result of our review," Mr. Draffin added. "VNU's satisfactory business positions should, however, limit rating downside, and we therefore consider a more pronounced downgrade to be unlikely." =========== R U S S I A =========== ARMAVIR-GLASS: Court Starts Bankruptcy Supervision -------------------------------------------------- The Arbitration Court of Krasnodar Region has commenced bankruptcy supervision procedure on CJSC Armavir-Glass (TIN 2302008810). The case was docketed under Case No. A32- 67682/2005-46/722-B. Mr. A. Sasin has been appointed temporary insolvency manager and can be reached at: Entrance 1, Floor 6 Lenina Str. 219 355017, Stavropol Region, Russia The Debtor can be reached at: CJSC Armavir-Glass P. Osipenko Str. 172. Armavir 352909, Krasnodar Region, Russia ASTRAKHAN-POLYMER: Astrakhan Court Commences Bankruptcy Process --------------------------------------------------------------- The Arbitration Court of Astrakhan Region has commenced bankruptcy supervision procedure on OJSC Astrakhan-Polymer (TIN 3015002983). The case is docketed under Case No. A06- 233B/3-11/06. Mr. P. Alekseev has been appointed temporary insolvency manager and can be reached at: Office 400 400005, Volgograd Region, Russia 7th Gvardeyskaya Str. 2A The Debtor can be reached at: OJSC Astrakhan-Polymer Kommunisticheskaya Str. 10/7 414000, Astrakhan Region, Russia DAGFOS: Court Names A. Magomedov as Interim Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Dagestan Republic appointed Mr. A. Magomedov as temporary insolvency manager for OJSC Dagfos (Case No. A15-787/2005). He can be reached at: Ukhamnova Str. 12 Makhachkala Dagestan Republic, Russia Tel: (8722) 68-32-69 The Court has commenced bankruptcy supervision procedure on the company. The Debtor can be reached at: OJSC Dagfos I. Shamilya Str. 1 Kizilyurt Dagestan Republic, Russia ENERGY: Tula Court Opens Bankruptcy Proceedings ----------------------------------------------- The Arbitration Court of Tula Region commenced bankruptcy proceedings against CJSC Energy (Case No. A68-200/B-05) after finding it insolvent. Ms. Z. Danilova has been appointed insolvency manager and can be reached at: Room 61 Potapovskiy Per. 9/11 101000, Moscow, Russia The Debtor can be reached at: CJSC Energy 9th Maya Str. 1 Tula Region, Russia KORDYSH-WOOD: Court Appoints O. Savin as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Arkhangelsk Region appointed Mr. O. Savin as insolvency manager for LLC Kordysh-Wood (Case No. A05- 891/2006-8). He can be reached at: Office 20 Morskoy Pr. 50A Severodvinsk 164523, Arkhangelsk Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: LLC Kordysh-Wood Seltso Kholmogorskiy Region 164541, Arkhangelsk Region, Russia MAGNAT: Court Sets Bankruptcy Hearing for June 5 ------------------------------------------------ The Arbitration Court of Buryatiya Republic will convene on June 5 to hear the commenced bankruptcy supervision procedure on LLC Magnat (Case No. A10-1060/06). Mr. D. Puchkov has been appointed temporary insolvency manager and can be reached at: Post User Box 4049 Ulan-Ude 670017, Buryatiya Republic, Russia Tel/Fax: 8(3012)21-12-01 The Debtor can be reached at: LLC Magnat Novgorodskaya Str. 17 Ulan-Ude 670004, Buryatiya Republic, Russia OAO ROSNEFT: Recommends Board Re-Election to Shareholders --------------------------------------------------------- The Board of Directors for OAO Rosneft Oil Co. proposed that shareholders re-elect 12 members of the current Board at an extraordinary general meeting of shareholders scheduled for June 7. The Board recommended the re-election of: -- Alexander Nekipelov, Russia Academy of Sciences Vice- President; -- Andrey Kostin, Vneshtorgbank President; -- Andrey Reus, Deputy Minister of Industry and Energy; -- Gleb Nikitin, Head of Division of the Federal Property Management Agency; -- Hans Jorg Rudloff, Head of Executive Committee of Barclays Capital; -- Igor Sechin, Deputy Head of Russian Federation Presidential Administration; -- Kirill Androsov, Deputy Minister of Economic Development and Trade; -- Oleg Gordeev, OJSC OC Russneft Vice-President; -- Sergei Oganesyan, Head of the Federal Agency for Energy; -- Sergei Bogdanchikov, OJSC OC Rosneft President; -- Sergei Naryshkin, Head of the Office of Russian Federation Government, Minister of Russian Federation; -- Yuri Medvedev, Deputy Head of the Federal Property Management Agency. Capital Increase It was also decided, within the context of Rosneft's consolidation, to increase the company's charter capital by issuing additional common registered non-documentary shares in Rosneft through the conversion of common and preferred shares in: -- Rosneft-Krasnodarneftegaz, -- Rosneft-Purneftegaz, -- Rosneft-Sakhalinmorneftegaz, -- Rosneft-Stavropolneftegaz, -- Yuganskneftegaz, -- Rosneft-Komsomolsk Refinery, -- Rosneft-Tuapse Refinery, -- Rosneft-Arkhangelsknefteprodukt, -- Rosneft-Nakhodkanefteprodukt, and -- Rosneft-Tuapsenefteprodukt, and of common shares in: -- Severnaya Neft, and -- Selkupneftegaz. The Board proposed that 7,438,514,449 shares with a par value of RUB0.01 be issued. The Board also proposed that the meeting of shareholders add to the agenda the issue of the increase in the company's charter capital through the issue of 400 million additional shares with a par value of RUB0.01 by closed subscription. The Board also approved a number of internal documents, stated to comply with practices of public companies, namely: -- Regulations on the Formation and Operation of the Committees of Rosneft's Board of Directors; -- Regulations on the Audit Committee of Rosneft's Board of Directors; -- Regulations on the HR and Remuneration Committee of Rosneft's Board of Directors; -- Regulations on the Strategic Planning Committee of Rosneft's Board of Directors; -- Regulations on Rosneft's Dividend Policy; -- Regulations on Internal Control over Rosneft's Financial and Economic Activities; -- Regulations on Rosneft's Counting Commission; -- Regulations on Rosneft's Corporate Secretary; -- Regulations on Rosneft's Information Policy; -- Regulations on Rosneft Insider Information; -- Rosneft Code of Corporate Behavior. Rosneft's Board of Directors also approved the results of the company's production and commercial operations in the first quarter of 2006. Headquartered in Moscow, OAO Rosneft -- http://www.rosneft.com/english-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * Standard & Poor's assigned B+ ratings to Rosneft's long-term and local foreign issuer credit, while Fitch assigned BB+ ratings to the Company's foreign currency and local currency long-term debt in 2005. SEL-KHOZ-KHIMIYA: Bankruptcy Hearing Slated for Sept. 6 ------------------------------------------------------- The Arbitration Court of Bashkortostan Republic will convene on Sept. 6 at 10:00 a.m. to hear the bankruptcy supervision procedure on Municipal Unitary Enterprise Sel-Khoz-Khimiya (TIN 0238003706) at: Room 117 Oktyabrskoy Revolyutsii Str. 63A Ufa 450057, Bashkortostan Republic, Russia The case is docketed under Case No. A07-56449/05-G-KhRM. Mr. M. Hannanov has been appointed temporary insolvency manager and can be reached at: Apartment 40 Internatsionalnaya Str. 153/1 Ufa 450068, Bashkortostan Republic, Russia The Debtor can be reached at: Municipal Unitary Enterprise Sel-Khoz-Khimiya Rodnikova Miyakinskiy Region 452084, Bashkortostan Republic, Russia SMAMO: Penza Court Taps V. Batrakov to Manage Insolvency Assets --------------------------------------------------------------- The Arbitration Court of Penza Region appointed Mr. V. Batrakov as insolvency manager for OJSC Agro Company Smamo (TIN 5837002919). He can be reached at: Pushkina, 2 -707 Penza Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A49-847/2006-62B/26. The Arbitration Court of Penza Region is located in: Belinskogo Str. 2 Penza Region, Russia The Debtor can be reached at: OJSC Agro Company Smamo Ternovskogo Str. 220 Penza Region, Russia SPETS-STROY: Court Begins Bankruptcy Supervision ------------------------------------------------ The Arbitration Court of Orel Region has commenced bankruptcy supervision procedure on OJSC Spets-Stroy (Case No. A48-7381/05- 16B). Mr. V. Stavtsev has been appointed temporary insolvency manager and can be reached at: Office 32 Gorkogo Str. 45 302040, Orel Region, Russia The Debtor can be reached at: OJSC Spets-Stroy Zheleznodorozhnyj Per. 10A Livny 303800, Orel Region, Russia YUKOS OIL: Stanislav Vinokurov Replaces A. Nazarov as Director -------------------------------------------------------------- Yukos RM, a main production unit of Yukos Oil Company, appointed Stanislav Vinokurov, 31, as its new director on May 22. According to Itar-Taas, an irregular shareholders' meeting held on May 19 unanimously voted Mr. Vinokurov to replace Anatoly Nazarov, who recently resigned from his post. "The last top manager who was associated with the group MENATEP has left the leadership of the company," an unidentified source told Itar-Taas. According to the Russian news agency, experts believe that the appointment can be related with the actual beginning of a Yukos bankruptcy procedure. Headquartered in Moscow, Russia, Yukos Oil -- http://yukos.com/ -- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days after, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. Court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York on April 13 (Bankr. S.D.N.Y. Case No. 06- 10775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. Published reports suggest that the Company's stake may have a value at around US$1.2 billion to US$1.4 billion. ========= S P A I N ========= J.L. FRENCH: Parent Can Lend Up to US$1.2-Mln to Spanish Unit ------------------------------------------------------------- The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware gave J.L. French Automotive Castings, Inc., and its debtor-affiliates permission to lend funds to their non-debtor affiliate J.L. French Ansola, S.R.L. Judge Walrath clarified that the loan should not exceed US$1.2 million and the total loan extended to all of the Debtors' foreign subsidiaries and J.L. French Automotive Castings China Holdings LLC should not exceed US$3 million. As reported in the Troubled Company Reporter on April 13, the Court allowed the Debtors to advance funds to J.L. French Automotive Castings China Holdings LLC, a non-debtor affiliate. The Debtors told the Court that the funds would be used to capitalize China Holdings' foreign-equity joint venture with Chonqing Yujiang Die Casting Co., Ltd., and Chongqing Liangjiang Machine Manufacture Co., Ltd. Yujiang and Lianjiang, a die- casting and machining companies respectively, both currently do the bulk of their business supplying China's motorcycle original equipment manufacturers. Headquartered in Sheboygan, Wisconsin, J.L. French Automotive Castings, Inc. -- http://www.jlfrench.com/-- is one of the world's leading global suppliers of die cast aluminum components and assemblies. There are currently nine manufacturing locations around the world including plants in the United States, United Kingdom, Spain, and Mexico. The company has fourteen engineering/customer service offices to globally support our customers near their regional engineering and manufacturing locations. The Company and its debtor-affiliates filed for chapter 11 protection on Feb. 10, 2006 (Bankr. D. Del. Case No. 06-10119 to 06-06-10127). James E. O'Neill, Esq., Laura Davis Jones, Esq., and Sandra G.M. Selzer, Esq., at Pachulski Stang Ziehl Young & Jones, and Marc Kiesolstein, P.C., at Kirkland & Ellis LLP, represent the Debtors in their restructuring efforts. Ricardo Palacio, Esq., and William Pierce Bowden, Esq., at Ashby & Geddes, PA, represents the Official Committee Of Unsecured Creditors. When the Debtor filed for chapter 11 protection, it estimated assets and debts of more than US$100 million. ============= U K R A I N E ============= AGROMEHKOMPLEKT: Court Begins Bankruptcy Supervision ---------------------------------------------------- The Economic Court of Zaporizhya Region commenced bankruptcy supervision procedure on Private Enterprise Agromehkomplekt (code EDRPOU 32680347). The case is docketed under Case No. 21/51/06. Mr. S. Bagmet has been appointed temporary insolvency manager and can be reached at: Pivnichnokiltseva Str. 25/77 69001, Zaporizhya Region, Ukraine The Economic Court of Zaporizhya Region is located in: Shaumyana Str. 4 69001, Zaporizhya Region, Ukraine The Debtor can be reached at: Private Enterprise Agromehkomplekt Peremogi Str. 63 69037, Zaporizhya Region, Ukraine AQUARIUM: Court Names M. Kulga as Insolvency Manager ---------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. M. Kulga as Liquidator/Insolvency Manager for LLC Aquarium (code EDRPOU 30518503). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/91-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 Aquarium Chervonoarmijska Str. 65 30304, Kyiv Region, Ukraine BUDKOMPLEKT: Zaporizhya Court Launches Bankruptcy Process --------------------------------------------------------- The Economic Court of Zaporizhya Region commenced bankruptcy proceedings against Budkomplekt (code EDRPOU 32643549) after finding it insolvent on Feb. 13. The case is docketed under Case No. 25/40/06. Mr. A. Tsibulevskij has been appointed Liquidator/Insolvency Manager and can be reached at: Ukraini Str. 82-a 40 Rokiv Radyanskoyi 69035, Zaporizhya Region, Ukraine The Debtor can be reached at: Budkomplekt Vilnyansk, Zachinyaev Str. 25/24 70000, Zaporizhya Region, Ukraine DELFI: Harkiv Court Commences Bankruptcy Proceedings ---------------------------------------------------- The Economic Court of Harkiv Region commenced bankruptcy proceedings against LLC Delfi (code EDRPOU 30592503) after finding it insolvent on March 20. The case is docketed under Case No. B-31/103-05. Volodimir Parkulab has been appointed Liquidator/Insolvency Manager and can be reached at: Universitetska Str. 9 61003, Harkiv Region, Ukraine The Economic Court of Harkiv Region is located in: Derzhprom, 8th Entrance 61022, Harkiv Region, Ukraine Svobodi Square 5 The Debtor can be reached at: LLC Delfi Plastichnij Str. 9 61177, Harkiv Region, Ukraine MALOVISKIVSKIJ ALCOHOL: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Economic Court of Kirovograd Region commenced bankruptcy supervision procedure on State Enterprise Maloviskivskij Alcohol Plant (code EDRPOU 00374982) on April 8. The case is docketed under Case No. 9/70. Tetyana Kolyada has been appointed temporary insolvency manager and can be reached at: Gogol Str. 109/7 Kirovograd Region, Ukraine The Economic Court of Kirovograd Region is located in: Lunacharski Str. 29 25022, Kirovograd Region, Ukraine The Debtor can be reached at: State Enterprise Maloviskivskij Alcohol Plant Promislova Str. 1 Mala Viska 6200, Kirovograd Region, Ukraine ROMANCHUKIVSKE: Sumi Court Opens Bankruptcy Proceedings ------------------------------------------------------- The Economic Court of Sumi Region commenced bankruptcy proceedings against LLC Romanchukivske (code EDRPOU 30880514) on March 2 after finding it insolvent. The case is docketed under Case No. 12/99-05. Grigorij Ponomarenko has been appointed Liquidator/Insolvency Manager and can be reached at: Office 5 Privokzalna Square 9 40011, Sumi Region, Ukraine The Economic Court of Sumi Region is located in: Shevchenko Avenue 18/1 40030, Sumi Region, Ukraine The Debtor can be reached at: LLC Romanchukivske Zhovtneva Str. 26 Romanchuki Burinskij District Sumi Region, Russia ORCHID INTER: Kyiv Court Taps Yurij Ulyanchuk as Liquidator ----------------------------------------------------------- The Economic Court of Kyiv Region commenced appointed Yurij Ulyanchuk has been appointed Liquidator/Insolvency Manager for LLC Orchid Inter (code EDRPOU 33401583). He can be reached at: Povstannya Str. 11-a/54 Kyiv Region, Ukraine Sichnevogo The Court commenced bankruptcy proceedings against after finding it insolvent on March 23. The case is docketed under Case No. 15/225-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 Orchid Inter Lihachov Boulevard 1/27 01113, Kyiv Region, Ukraine TEHSNAB PLUS: Court Names S. Kobilko to Liquidate Assets -------------------------------------------------------- The Economic Court of Odessa Region commenced bankruptcy proceedings against LLC Tehsnab Plus (code EDRPOU 33657730) after finding it insolvent on March 23. The case is docketed under Case No. 2/82-06-2810. Mr. S. Kobilko has been appointed Liquidator/Insolvency Manager. The Economic Court of Odessa Region is located in: Shevchenko Avenue 4 65032, Odessa Region, Ukraine The Debtor can be reached at: LLC Tehsnab Plus Academic Korolyov 71/1-17 Odessa Region, Ukraine ZDOLBUNIV' BREAD: Court Taps Franko Oleg as Liquidator ------------------------------------------------------ The Economic Court of Rivne Region appointed Franko Oleg has been appointed Liquidator/Insolvency Manager for OJSC Zdolbuniv' Bread Receiving Enterprise (code 00955809). He can be reached at: Guryeva Str. 13 33028, Rivne Region, Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Feb. 13. The case is docketed under Case No. 4/33. The Economic Court of Rivne Region is located in: Yavornitski Str. 59 33001, Rivne Region, Ukraine The Debtor can be reached at: OJSC Zdolbuniv' Bread Receiving Enterprise Zdolbuniv, Nezalezhnosti Str. 49 35700, Rivne Region, Ukraine =========================== U N I T E D K I N G D O M =========================== ARVIN INT'L: Moody's Places Parent's Ratings Under Review --------------------------------------------------------- Moody's Investors Service has placed the ratings of ArvinMeritor, Inc.'s senior unsecured notes and unsecured shelf filings under review for possible downgrade. The action follows the company's announcement that it is arranging senior secured bank credit facilities to replace its existing unsecured US$900 million revolving credit facility. At the same time, the rating agency affirmed the company's Corporate Family rating of Ba2 and Speculative Grade Liquidity rating of SGL-2. To the extent that liens are established for the benefit of the new bank credit facilities, existing unsecured creditors may become effectively subordinate to the more senior claims of the bank group. The outlook remains negative. Ratings placed under review: ArvinMeritor, Inc.: -- Senior Unsecured notes, Ba2; and -- Senior Unsecured Shelf, (P)Ba2 Arvin Capital: -- Backed Preferred Stock, Ba3 Ratings affirmed: -- Corporate Family, Ba2 -- Speculative Grade Liquidity rating, SGL-2 The last rating action was on April 4 at which time the company's Corporate Family and Senior unsecured note ratings of Ba2, and Speculative Grade Liquidity rating of SGL-2 were affirmed, but the outlook was changed to negative. The assumptions behind those announcements remain unchanged. ArvinMeritor said on May 22 that it would seek new senior secured credit facilities that will consist of a new revolving credit facility and a term loan B. The company's existing revolving credit facility is for US$900 million and is scheduled to expire in 2008. Early renegotiation of the facility should provide further stability for the company's liquidity profile, and is viewed favorably in the context of the continuing difficult environment in the auto parts sector. As details on the new facilities become available, Moody's review will focus on the extent and value of assets that will be pledged to the banks and the resulting impact to expected recovery rates for unsecured note holders. The granting of security interests to the bank lenders could adversely affect the relative claims of existing unsecured debt, resulting in a downward rating action. Also, when the amounts and other terms, including financial covenants and maturities, are known, the extent of any changes to the firm's leverage, related coverage ratios and liquidity will be assessed. However, as any amounts raised under the new term loan would likely be used to reduce existing indebtedness, the company's debt burden is unlikely to change materially, and the Corporate Family rating is expected to be unaffected. ArvinMeritor, Inc., based in Troy, Michigan, is a global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicles, commercial truck, trailer and specialty original equipment manufacturers and certain after markets. The company had fiscal 2005 revenues of US$8.8 billion, and employs 29,000 people at more than 120 manufacturing facilities in 25 countries. ASHLAND GLASS: Claims Registration Ends June 17 ----------------------------------------------- Creditors of Ashland Glass Limited passed a resolution to wind up the company during an extraordinary general meeting on March 17. Appointed Joint Liquidators, Peter A. Blair and Richard A.B. Saville, of Begbies Traynor, require creditors to send in their full names, addresses and descriptions, full particulars of debts or claims, and the names and addresses of Solicitors (if any) on or before June 17. The company can be reached at: Ashland Glass Limited Unit 6-8, Nunn Brook Rise Huthwaite Sutton-in-Ashfield Nottinghamshire NG17 2PD United Kingdom Tel: 01623 515 101 Fax: 01623 515 121 AYNSLEY WINDOWS: Creditors Resolve to Liquidation ------------------------------------------------- Creditors of Aynsley Windows Limited resolved to liquidate the company's assets during an extraordinary general meeting on March 21. Mr. A. Turpin, of Poppleton & Appleby, was appointed Liquidator. The company can be reached at: Aynsley Windows Limited Unit 10a Lichfield Road Gatehouse Trading Estate Brownhills Walsall West Midlands WS8 6JZ United Kingdom Tel: 01543 454 647 Fax: 01543 361 800 CAMPFIELD LITHO: Joint Liquidators Take Over Operations ------------------------------------------------------- Stewart Trevor Bennett and James Preston Bradney, of Berg Kaprow Lewis LLP, were appointed Joint Liquidators of Campfield Litho Limited after creditors passed a resolution to wind up the company on March 17. Chairman D. Wing revealed the company could no longer continue its operations due to mounting debts. The company can be reached at: Campfield Litho Limited 68A London Road St. Albans Hertfordshire AL1 1NG United Kingdom Tel: 01727 840 361 EMI GROUP: March 31 Balance Sheet Upside Down By GBP726.6 Mln ------------------------------------------------------------- EMI Group PLC released its preliminary results for the year ended March 31, 2006. First-quarter net profit amounted to GBP90 million, compared to GBP74.9 million in 2005. Revenues for the first three months of 2006 totaled GBP2.08 billion, compared to GBP2 billion in 2005. EMI's first-quarter operating profit amounted to GBP250.5 million, compared to GBP225.1 million in the same period in 2005. "EMI Group has delivered an excellent performance across all areas for the financial year ended March 31, 2006," Chairman Eric Nicoli said. Mr. Nicoli added, "Looking to the current financial year, EMI is in a very strong position to capitalize on the market's evolution led by the growing demand for digital music. We have exciting release schedules planned for both divisions with new music expected from a diverse range of artists. "From EMI Music we expect releases from Tiziano Ferro, Janet Jackson, Norah Jones, Joss Stone, The Beatles, KT Tunstall, Keith Urban, Hikaru Utada and Robbie Williams among others. From EMI Music Publishing we expect to benefit from a range of releases, including those from Audioslave, Diddy, Embrace, Goo Goo Dolls, Jewel, Pharrell Williams, Scissor Sisters and The Zutons. "Moreover, our recently announced restructuring plans are aimed at further optimizing our business structures and ensuring that we remain flexible and innovative, best positioning us for the many opportunities that lie ahead," Mr. Nicoli concluded. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 in total liabilities and GBP726.6 million in shareholders' deficit. Headquartered in London, EMI Group PLC -- http://www.emigroup.com//-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. * * * EMI Group's 8-1/4 percent notes due on May 20, 2008, carry Moody's Ba1 rating since 2003. The same notes carry Standard & Poors' BB+ ratings since 2005. EUROTUNNEL: Shareholders Want Equity Interests Protected -------------------------------------------------------- Eurotunnel may need to present a restructuring plan that provides no more than half of any capital increase to creditors for the deal to get shareholders' acceptance, Alan Katz of Bloomberg News cited shareholder representative Nicolas Miguet. "The structure today that would be acceptable would be nothing more than half for you, half for me, at maximum," of any increase in the value of the company from a debt reduction, Mr. Miguet told Bloomberg. According to the report, the Company needs to slash up to EUR5 billion in debts to lower financing costs so the tunnel operator can grow and possibly pay a dividend in 2009. For shareholders to accept a convertible bond in a reorganization, it would have to be based on a valuation of EUR1.2 to EUR1.4 a share, he added. Mr. Miguet, which led a shareholder revolt in 2004 that toppled the company's management team, estimated capital increase to be between EUR4 billion and EUR6 billion, Bloomberg relates. Mr. Katz said a bondholders' committee, representing GBP1.2 billion of debt, is yet to receive a restructuring proposal from the company. The committee is represented by Close Brothers Group Plc. Debt Restructuring Agreement On Jan. 31, 2006, the Group signed an outline on a debt restructuring agreement with the ad hoc committee of creditors. The ad hoc committee, which holds more than 50% of the total debt, represents majority of the Company's junior creditors, namely European Investment Bank, Franklin Mutual Advisers LLC, MBIA and Oaktree Capital Management in April 2005. Eurotunnel needs to obtain approval from other creditors and shareholders for a final agreement. Absent a final agreement, the Group may default in January 2007. On April 26, Eurotunnel obtained a third extension of its credit waiver, which calls for creditor talks to continue through July 12. As reported in TCR-Europe on May 19, Eurotunnel requested the British and French market authorities to retain the suspension of the company's shares on the two exchanges to allow creditor talks to continue. Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faces uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. G BUILD: Creditors Resolve to Liquidate Assets ---------------------------------------------- G Build (East Anglia) Limited is winding up its operations after creditors decided to liquidate the company's assets during an extraordinary general meeting on March 15. Stephen Mark Law, of Ensors, was appointed Liquidator. The company can be reached at: G Build (East Anglia) Limited Moat Farm Otley Ipswich IP6 9PE United Kingdom Tel: 01473 737 287 Fax: 01473 737 287 GARLIC FARMS: Brings In Portland Business as Administrator ---------------------------------------------------------- Peter Robin Bacon and Carl Derek Faulds of Portland Business & Financial Solutions Ltd. were named joint administrators of Garlic Farms (U.K.) Limited (Company Number 4022757) on May 4. The administrators can be contacted at: Portland Business & Financial Solutions Ltd. 1640 Parkway Solent Business Park Whiteley Fareham Hampshire PO15 7AH United Kingdom Tel: 01489 550 440 E-mails: carl.faulds@portland-solutions.co.uk Headquartered in Holmbury, England, Garlic Farms (U.K.) Limited supplies agricultural products. GENERAL MOTORS: Sues Royal & Sun Over Asbestos Claims ----------------------------------------------------- General Motors Corporation sued U.K.-based Royal & Sun Alliance Insurance Group Plc in Britain over a dispute regarding asbestos-related personal injury policies between 1954 and 1974, Reuters cited the Daily Telegraph. According to the Telegraph, GM filed the suit in London's High Court because it fears that the insurer does not have enough U.S. reserves to pay if the automaker wins. The suit asserts that Royal & Sun is liable for insurance policies sold by General Motors' U.S. subsidiaries and that it wrongfully caused its U.S. subsidiaries to breach their contracts. Media reports in the United Kingdom suggest that claims could reach approximately US$1 billion, the Gulf Times said. In January 2005, GM sued Royal & Sun in a Michigan Court, seeking to recover payment from asbestos-related claims and additional damages. The suit claimed Royal & Sun breached its contract with GM and failed to pay legal liabilities from personal injuries and property damage from asbestos claims. The U.S. trial is scheduled to start in September. Headquartered in London, Royal & SunAlliance Insurance Group Plc -- http://www.royalsunalliance.com/-- is a FTSE 100 company, listed on the London Stock Exchange and in New York. The group consists of three regions -- U.K., Scandinavia and International -- with operations in 30 countries, providing general insurance products to over 20 million customers worldwide. 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 US$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. GGB ENGINEERING: Financial Woes Prompt Liquidation -------------------------------------------------- GGB (Engineering Spares) Limited is liquidating its assets after creditors found out that the company could no longer continue its business due to mounting debts. Elizabeth Arakapiotis, of Kallis & Co., was appointed Liquidator. The company can be reached at: GGB (Engineering Spares) Limited Unit 4 Blueprint Commercial Centre Imperial Way Watford Hertfordshire WD24 4JP United Kingdom Tel: 01923 639082 J.L. FRENCH: Parent Can Lend Up to US$1.2-Mln to Spanish Unit ------------------------------------------------------------- The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware gave J.L. French Automotive Castings, Inc., and its debtor-affiliates permission to lend funds to their non-debtor affiliate J.L. French Ansola, S.R.L. Judge Walrath clarified that the loan should not exceed US$1.2 million and the total loan extended to all of the Debtors' foreign subsidiaries and J.L. French Automotive Castings China Holdings LLC should not exceed US$3 million. As reported in the Troubled Company Reporter on April 13, the Court allowed the Debtors to advance funds to J.L. French Automotive Castings China Holdings LLC, a non-debtor affiliate. The Debtors told the Court that the funds would be used to capitalize China Holdings' foreign-equity joint venture with Chonqing Yujiang Die Casting Co., Ltd., and Chongqing Liangjiang Machine Manufacture Co., Ltd. Yujiang and Lianjiang, a die- casting and machining companies respectively, both currently do the bulk of their business supplying China's motorcycle original equipment manufacturers. Headquartered in Sheboygan, Wisconsin, J.L. French Automotive Castings, Inc. -- http://www.jlfrench.com/-- is one of the world's leading global suppliers of die cast aluminum components and assemblies. There are currently nine manufacturing locations around the world including plants in the United States, United Kingdom, Spain, and Mexico. The company has fourteen engineering/customer service offices to globally support our customers near their regional engineering and manufacturing locations. The Company and its debtor-affiliates filed for chapter 11 protection on Feb. 10, 2006 (Bankr. D. Del. Case No. 06-10119 to 06-06-10127). James E. O'Neill, Esq., Laura Davis Jones, Esq., and Sandra G.M. Selzer, Esq., at Pachulski Stang Ziehl Young & Jones, and Marc Kiesolstein, P.C., at Kirkland & Ellis LLP, represent the Debtors in their restructuring efforts. Ricardo Palacio, Esq., and William Pierce Bowden, Esq., at Ashby & Geddes, PA, represents the Official Committee Of Unsecured Creditors. When the Debtor filed for chapter 11 protection, it estimated assets and debts of more than US$100 million. Immediately following the U.S. Debtors' pre-packaged chapter 11 filing, the Company's British unit went into administration. Shagun Sunil Dubey, Geoffrey Stuart Kinlan and Christopher Kim Rayment of BDO Stoy Hayward were appointed joint administrators. M.K. FASTENINGS: Taps F.A. Simms to Administer Assets ----------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss of F. A. Simms & Partners Plc were appointed joint administrators of M.K. Fastenings & Industrial Supplies Limited (Company Number 4565195) on April 20. The administrators can be contacted at: F A Simms & Partners PLC Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP United Kingdom Tel: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com Headquartered in Kenilworth, England, M.K. Fastenings & Industrial Supplies Limited supplies industrial fasteners. MALIKSONS WAREHOUSING: Names Vincent Simmons as Administrator ------------------------------------------------------------- Vincent A. Simmons of Bennet Verby is named administrator of Maliksons Warehousing Ltd. (Company Number 5268794) on May 8. The administrator can be contacted at: Bennett Verby 7 St Petersgate Stockport Cheshire SK1 1EB United Kingdom Tel: 0161 477 9345 Fax: 0161 429 7224 E-mail: v.simmons@bennettverby.co.uk Maliksons Warehousing Ltd. can be reached at: Unit B South Rd Trafford Park Manchester United Kingdom Lancashire M17 1PY Tel: 0161 872 6565 MBA COMPUTER: Creditors Confirm Voluntary Liquidation ----------------------------------------------------- Creditors of MBA Computer Solutions Limited confirmed the company's voluntary liquidation after a resolution to wind up the company was passed during an extraordinary general meeting on March 22. Creditors also ratified the appointment of Freddy Khalastchi as Liquidator. The company can be reached at: MBA Computer Solutions Limited Kingshouse 14 Orchard Street Bristol BS1 5EH United Kingdom Tel: 0845 070 0847 Fax: 020 7697 0756 NASSERCHEM LIMITED: Hires Chantrey Vellacott as Administrator ------------------------------------------------------------- Kenneth William Touhey and David John Oprey of Chantrey Vellacott DFK LLP were appointed joint administrators of Nasserchem Limited (Company Number 05289580) on May 5. Headquartered in Hove, East Sussex, Chantrey Vellacott DFK -- http://www.cvdfk.com/-- is one of the oldest firms of chartered accountants in the United Kingdom. It provides accounting, taxation and related advisory services. Nasserchem Limited is a retail pharmacy. NORTHERN PACKAGING: Brings In Ian Kings to Administer Assets ------------------------------------------------------------ Ian W. Kings of Tenon Recovery was appointed administrator of Northern Packaging Distributors Limited (Company Number 02132725) on May 3. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Headquartered in Durham, England, Northern Packaging Distributors Limited sells, converts and rewinds plastic flexible films. OMEGA ADVERTISING: Names Joint Administrators from Wilson Pitts --------------------------------------------------------------- D.F. Wilson and J.N.R. Pitts of Wilson Pitts were appointed joint administrators of Omega Advertising Limited (Company Number 02635538) on May 3. The administrators can be reached at: Wilson Pitts Glendevon House Hawthorn Park Coal Road Leeds West Yorkshire LS14 1PQ ited Kingdom Tel: 0113 237 5560 Fax: 0113 237 5561 Omega Advertising Limited can be reached at: 21 Market Place Wetherby LS22 6LQ United Kingdom Tel: 01937 588 208 Fax: 01937 588 203 R & V STRAUGHAN: Taps Ninos Koumettou to Liquidate Assets --------------------------------------------------------- R & V Straughan (Groundworks) Limited is liquidating its assets after creditors resolved to wind up the company's operations on March 23. Ninos Koumettou, of Alexander Lawson & Co., was appointed Liquidator. The company can be reached at: R & V Straughan (Groundworks) Limited 9 St. Andrews Road Enfield Middlesex EN1 3UA United Kingdom Tel: 020 8366 8416 R.H. MEARS: Tony Mitchell Leads Winding Up Procedure ---------------------------------------------------- Tony Mitchell, of Cranfield Recovery Limited, was appointed Liquidator of R.H. Mears Limited after creditors decided to wind up the company's operations during an extraordinary general meeting on March 20. The company can be reached at: R.H. Mears Limited 10 Harrison Street Walsall WS3 3HP United Kingdom Tel: 01922 476 930 Fax: 01922 710 519 RANK GROUP: Cancels Another 1,500,000 Shares in Buyback Program --------------------------------------------------------------- The Rank Group Plc bought back 1,500,000 ordinary shares of 10 pence in the Company on May 22 for cancellation at an average price of 205.586667 pence per share. Headquartered in London, Rank Group PLC -- http://www.rank.com/ -- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * As reported in the TCR-Europe on March 8 Moody's Investors Service assigned a Ba2 corporate family rating to The Rank Group Plc and concurrently downgraded the senior unsecured long-term debt ratings of Rank Group Finance Plc (guaranteed by The Rank Group Plc) to Ba2 (from Baa3). At the same time, Fitch Ratings downgraded The Rank Group PLC's Long-term Issuer Default rating and Senior Unsecured ratings to BB- from BB+ and removed them from Rating Watch Negative. A Negative Outlook is assigned. The Short-term rating is affirmed at B. The downgrade follows the disposal of its film processing business, Deluxe Film, and confirmation of a return of capital to shareholders announced in conjunction with its 2005 preliminary results. In addition, Standard & Poor's Ratings Services lowered its long- and short-term corporate credit ratings on U.K.-based diversified leisure and entertainment company The Rank Group PLC to 'BB-/B' from 'BBB-/A-3'. S&P said the outlook is stable. RUBBER & PLASTIC: Taps Joint Administrators from DTE Leonard ------------------------------------------------------------ A. Clifton and A. Poxon of DTE Leonard Curtis were appointed joint administrators of Rubber & Plastic Converters Limited (Company Number 02693769) on May 2. DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. Rubber & Plastic Converters Limited can be reached at: Unit E Moor Street Brierley Hill West Midlands DY5 3TG United Kingdom Tel: 01384 832 288 Fax: 01384 834 433 ROYAL & SUNALLIANCE: GM Sues Insurer Over Asbestos Claims --------------------------------------------------------- General Motors Corporation sued UK-based Royal & Sun Alliance Insurance Group plc in Britain over a dispute regarding asbestos-related personal injury policies between 1954 and 1974, Reuters cited the Daily Telegraph. According to the Telegraph, GM filed the suit in London's High Court because it fears that the insurer does not have enough reserves in its U.S. operations to pay if the automaker wins. The suit asserts that Royal & Sun is liable for insurance policies sold by General Motors' U.S. subsidiaries and that it wrongfully caused its U.S. subsidiaries to breach their contracts. Media reports in the United Kingdom suggest that claims could reach approximately US$1 billion, the Gulf Times said. In January 2005, GM sued Royal & Sun in a Michigan Court, seeking to recover payment from asbestos-related claims and additional damages. The suit claimed Royal & Sun breached its contract with GM and failed to pay legal liabilities from personal injuries and property damage from asbestos claims. The US trial is scheduled to start in September. 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. Headquartered in London, Royal & SunAlliance Insurance Group PLC -- http://www.royalsunalliance.com/-- is a FTSE 100 company, listed on the London Stock Exchange and in New York. The group consists of three regions -- U.K., Scandinavia and International -- with operations in 30 countries, providing general insurance products to over 20 million customers worldwide. * * * As reported in the Troubled Company Reporter on March 27, Standard & Poor's Ratings Services lowered its counterparty credit and insurer financial strength ratings on Royal & Sun Alliance Insurance Group PLC's U.S. insurance operations (RSA USA) to 'BB' from 'BB+'. The outlook remains negative. At the same time, the ratings were withdrawn at the request of the companies' management. "The downgrade reflects the reduced appetite of RSA USA's parent to provide the U.S. operations with additional capital should the need arise," said Standard & Poor's credit analyst Tom E. Thun. SANDFORD SPA: Taps Poppleton & Appleby to Administer Assets ----------------------------------------------------------- M.D. Hardy and M.T. Coyne of Poppleton & Appleby were appointed joint administrators of Sandford Spa Limited (Company Number 04654344) on April 28. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- is a member firm of the Insolvency Practitioners Association and the Association of Business Recovery Professionals (R3) and act for all clearing banks and a growing number of factors and asset lenders. Sandford Spa Limited can be reached at: 58 Bedford Street Leamington Spa Warwickshire CV32 5DT Tel: 01926 888 180 Fax: 01926 888 190 SOKKIA LIMITED: Claims Filing Period Ends June 30 ------------------------------------------------- Creditors of Sokkia Limited have until June 30 to send in their full names, addresses and descriptions, full particulars of debts or claims, and the names and addresses of Solicitors, if any, on or before June 30 to appointed Liquidator, Gerald M. Krasner, of Bartfields (U.K.) Limited. The company can be reached at: Sokkia Limited Pixmore Centre Pixmore Avenue Letchworth Garden CI Hertfordshire SG6 1JG United Kingdom Tel: 01462 680 688 STONES DELICATESSEN: Names Cooper Parry as Administrator -------------------------------------------------------- Tyrone Shaun Courtman and Jeremy Philip William Meadows of Cooper Parry LLP were named joint administrators of Stones Delicatessen Limited (Company Number 04430052) on May 3. The administrators can be reached at: Cooper Parry LLP 14 Park Row Nottingham NG1 6GR United Kingdom Tel: +44 (0) 1332 295544 Fax: +44 (0) 1332 295600 Web site: http://www.cooperparry.com Headquartered in Leicester, England, Stones Delicatessen Limited retails food and beverage. STONES GROUP: Appoints Joint Administrators from Cooper Parry ------------------------------------------------------------- Tyrone Shaun Courtman and Jeremy Philip William Meadows of Cooper Parry LLP were appointed joint administrators of Stones Group Limited (Company Number 04803537) on May 3. The administrators can be contacted at: Cooper Parry LLP 14 Park Row Nottingham NG1 6GR United Kingdom Tel: +44 (0) 1332 295544 Fax: +44 (0) 1332 295600 Web site: http://www.cooperparry.com/ SYNERGY KITCHENS: Brings In Administrator from Walletts ------------------------------------------------------- Michael F. McCarthy of Walletts Insolvency Services was named administrator of Synergy Kitchens Limited (Company Number 5433899) on April 27. The administrator can be reached at: Walletts Insolvency Services Adventure Place Hanley Stoke on Trent Staffordshire ST1 3AF United Kingdom Tel: (01782) 212326 Fax: (01782) 212326 Synergy Kitchens Limited wholesales kitchen furniture and equipment. VANGUARD PLC: Brings In Joint Administrators from B & C ------------------------------------------------------- Jeffrey Mark Brenner and Filippa Connor of B & C Associates were appointed joint administrators of Vanguard PLC (Company Number 02724392) on May 5. The administrators can be contacted at: B & C Associates Trafalgar House Grenville Place Mill Hill London NW7 3SA United Kingdom Tel: 0208 906 7730 Fax: 0208 906 7731 E-mail: filippa@bcassociates.uk.com Headquartered in Rhyl, England, Vanguard PLC retails and repairs mobile telephones. XL PACKAGING: Names M.S.E. Solomons Liquidator ---------------------------------------------- XL Packaging Limited is liquidating its assets after creditors decided to wind up the company's operations during an extraordinary general meeting on March 10. M.S.E. Solomons, of SPW Poppleton & Appleby, was appointed Liquidator. The company can be reached at: XL Packaging Limited 6-8 Eldon Way Biggleswade Bedfordshire SG188NH United Kingdom Tel: 01767 600 723 Fax: 01767 600 679 ********* 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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