/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060612.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, June 12, 2006, Vol. 7, No. 115 Headlines A U S T R I A ABSOLUT: Insufficient Funds Prompts Court to Close Case ELDO ELECTRIC: Court to Close Case After Claims Payment GABRIEL PETRICA: Korneuburg Court Closes Bankruptcy Proceedings GRENZLAND: Graz Court Will Close Case After Claims Payment HOLBFER & KOHLER: Leoben Court Closes Bankruptcy Proceedings G E R M A N Y CELLER HOF: Claims Registration Ends June 30 HERBORT MASCHINENFABRIK: Claims Registration Ends June 28 J + N METALLBAU: Claims Registration Ends June 26 MONDELO GMBH: Claims Filing Period Ends June 28 MRV MULTI: Claims Filing Period Ends June 27 N/B METALL: Claims Filing Period Ends June 28 OTTO WIBBING: Claims Filing Period Ends June 27 WILHELM GMBH: Creditors' Meeting Slated for June 29 WOHNWERT VERWALTUNGS: Creditors' Meeting Slated for June 26 XERUS MARKETING: Creditors' Meeting Slated for June 29 K A Z A K H S T A N AK-BULAK: Proof of Claim Deadline Slated for June 23 FIRMA INTERFORVARD: Proof of Claim Deadline Slated for June 23 JAPANESE NATIONAL: Claims Registration Ends June 23 KAZKEISITELEKOM: Claims Registration Ends June 23 KTK-HIMPROMSNAB: Creditors Must File Claims by June 23 NAR: Creditors Must File Claims by June 23 N E T H E R L A N D S FORD CAPITAL: Fitch Downgrades Issuer Default Rating to B+ R U S S I A BUILDING ASSEMBLY 21: Bankruptcy Hearing Slated for June 22 CHUVASHIA: Moody's Assigns Ba2 Rating to RUR1 Billion Bond ELANSK-AGRO-PROM-KHIMIYA: Y. Podgornov to Manage Assets INTERNATIONAL MOSCOW: Fitch Affirms Individual Rating at C/D KRASNOYARSKIY FACTORY: P. Protsenko to Manage Insolvency Assets MOKOVSKIY BRICKWORKS: Court Taps S. Bulgakov to Manage Assets NOVATEK: Shareholders Approve 2005 Dividend in AGM ONIX-GROUP: Court Begins Bankruptcy Supervision ROSBANK: S&P Places B/C and ruA- Ratings on CreditWatch Positive RUSSIAN MORTGAGE: Fitch Assigns BB- Rating on Class B Notes SIBEX: Kemerovo Court Starts Bankruptcy Supervision TNK-BP: Sergey Brezitsky Replaces Igor Dibtsev as EVP-Upstream VIMPELCOM: Earns US$150 Million in First Quarter 2006 YUKOS OIL: Arbitration Court Postpones First Creditors' Meeting ZAPADNOYE: Court Names Y. Shapovalov as Insolvency Manager S P A I N CONSUMO BANCAJA: Fitch Junks EUR13.5 Million Series D Notes ESPANOLA DEL ZINC: Heliopolis Invest Purchases 5% Equity Stake T U R K E Y TURK EXIMBANK: Moody's Assigns Issuer Rating at Ba1 U K R A I N E AGROFIRM MOLODIVSKA: Court Opens Bankruptcy Proceedings AKVARIUMIST: Court Commences Bankruptcy Supervision ARIOL: Court Names S. Vardikyan to Manage Insolvency Assets IRON TRADE: Dnipropetrovsk Court Opens Bankruptcy Proceedings LVIV' TABACCO: Court Taps Roman Ulyanik as Liquidator SHALFEJNE: AR Krym Court Starts Bankruptcy Process TROSTYANETS' BREAD: Court Commences Bankruptcy Supervision VOSHOD: Court Names Denis Matvijchuk to Liquidate Assets ZORYA: Court Names Viktoriya Cherepenko to Manage Assets U N I T E D K I N G D O M 24 STORE: Creditors Pass Winding Up Resolution A1 VALE: Brings In Joint Liquidators from Lines Henry ADVICE FOR LIFE: Creditors Confirm Voluntary Liquidation ALBA SALES: Financial Woes Trigger Liquidation BAA PLC: Accepts Ferrovial's GBP10.3 Billion Takeover Offer BENTLEY BROOK: Appoints E.J. Stonham as Administrator CABLE & WIRELESS: Employee Share Trustees Sell 140,924 Shares C.S. INTERIORS: Names Anthony Harry Hyams Liquidator CHEMI-COM SUPPLIES: Creditors Resolve to Liquidation CONSORT CONCRETE: Hires Liquidator from Benedict Mackenzie LLP D. A. MCKENNA: Hires Joint Administrators from DTE Leonard EAST CENTRAL: Taps UHY Hacker Young to Administer Assets ELSYM (BURTON): Joint Liquidators Take Over Operations ESSEX BATHROOMS: Winds Up Business & Appoints Joint Liquidators FABTECH ENGINEERING: Creditors' Meeting Slated for June 19 FCE BANK: Fitch Downgrades Issuer Default Rating to B+ LUCITE INTERNATIONAL: Moody's Places Ratings Under Review MALLINGSON INTERNATIONAL: Taps Hurst Morrison as Administrators OPTICAL NETWORKS: Appoints Administrators from Portland Business OVENDEN COLBERT: Creditors' Meeting Slated for June 14 PORTMAN RUBBER: Claims Filing Period Ends June 30 RANK GROUP: Cancels 1,750,000 Shares in Buy Back Program STORM UNIVERSAL: Appoints Rothman Pantall as Administrators TORFAEN COMMUNITY: Appoints Jones Giles as Administrators WINDSOR RACECOURSE: Names Administrators from Begbies Traynor ********* ============= A U S T R I A ============= ABSOLUT: Insufficient Funds Prompts Court to Close Case ------------------------------------------------------- The Land Court of Korneuburg dismissed the bankruptcy case of LLC Absolut (FN 155508p) on May 5 due to the Debtor's administrative insolvency. This means that the Debtor does not have enough cash to cover costs of the bankruptcy proceedings. As a result, creditors will not receive any distribution. Headquartered in Fritz Mitterhauserweg, Austria, the Debtor declared bankruptcy on May 27, 2002 (Bankr. Case No. 36 S 30/02g). Bruckner Ferdinand served as the court-appointed property manager for the bankrupt estate. ELDO ELECTRIC: Court to Close Case After Claims Payment ------------------------------------------------------- The Land Court of Klagenfurt will close the bankruptcy case of LLC Eldo Electric Systems (FN 195106x) after the Debtor's final distribution to creditors. Creditors will recover 20% on account of their claim to be paid in three installments: -- 10% within 14 days after the Debtor's bankruptcy case closing; -- after adoption of the project by compulsory compensation payment: * 5% until Aug. 31, 2006 and * 5% until Oct. 31, 2006. Headquartered in Karnten, Austria, the Debtor declared bankruptcy on Nov. 9, 2005 (Bankr. Case No. 41 S 100/05m). Werner Poms served as the court-appointed property manager for the bankrupt estate. GABRIEL PETRICA: Korneuburg Court Closes Bankruptcy Proceedings --------------------------------------------------------------- The Land Court of Korneuburg entered an order closing the bankruptcy case of KEG Gabriel Petrica Pancis (FN 192150z) on May 5. Creditors will recover 20% on account of their claim to be paid in four installments: -- 5% within 14 days after the Debtor's bankruptcy case closing; -- after adoption of the project by compulsory compensation payment: * 5% within 12 months * 5% within 18 months; and * 5% within 24 months. The last day for final claims distribution is set for Feb. 15, 2008. Headquartered in Schwechat, Austria, the Debtor declared bankruptcy on Oct. 24, 2005 (Bankr. Case No. 36 S 109/05d). Stefan Langer served as the court-appointed property manager for the bankrupt estate. GRENZLAND: Graz Court Will Close Case After Claims Payment ---------------------------------------------------------- The Land Court of Graz will close the bankruptcy case of LLC Grenzland (FN 239471p) after the Debtor's final distribution to creditors. Creditors owed money by the Debtor will receive 3.2% on account of their claim. Headquartered in Straden, Austria, the Debtor declared bankruptcy on June 1, 2005 (Bankr. Case No. 26 S 61/05y). Wilfried Stenitzer served as the court-appointed property manager for the bankrupt estate. HOLBFER & KOHLER: Leoben Court Closes Bankruptcy Proceedings ------------------------------------------------------------ The Land Court of Leoben entered an order closing the bankruptcy case of LLC Holbfer & Kohler (FN 75489p) on May 5. Creditors will recover 20% on account of their claim to be paid in four installments: -- 15% in cash within 14 days after bankruptcy case closing; -- after adoption of the project by compulsory compensation payment: * 5% within 12 months * 2.5% within 18 months; and * 2.5% within 24 months. The last day for final claims distribution is set for March 29, 2008. Headquartered in Muerzzuschlag, Austria, the Debtor declared bankruptcy on Dec. 12, 2005 (Bankr. Case No. 17 S 99/05k). Norbert Scherbaum served as the court-appointed property manager for the bankrupt estate. ============= G E R M A N Y ============= CELLER HOF: Claims Registration Ends June 30 -------------------------------------------- Creditors of Celler Hof Betriebsgesellschaft mbH have until June 30 to register their claims with court-appointed provisional administrator Thomas Westphal. Creditors and other interested parties are encouraged to attend the meeting at 11:15 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 Celle Hall 014 Ground Floor Mill Road 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 Celler Hof Betriebsgesellschaft mbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Celler Hof Betriebsgesellschaft mbH Attn: Axel Armbrecht, Manager Stechbahn 11 29221 Celle, Germany The administrator can be contacted at: Dr. Thomas Westphal Meteorstr. 1 29221 Celle, Germany Tel: 05141/99290-60 Fax: 05141/7648 E-mail: ThWestphal@t-online.de HERBORT MASCHINENFABRIK: Claims Registration Ends June 28 --------------------------------------------------------- Creditors of Herbort Maschinenfabrik GmbH have until June 28 to register their claims with court-appointed provisional administrator Dirk Stadler. Creditors and other interested parties are encouraged to attend the meeting at 11:25 a.m. on July 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 Hanover Hall 226 2nd 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 Hanover opened bankruptcy proceedings against Herbort Maschinenfabrik GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Herbort Maschinenfabrik GmbH Max-Mueller-Str. 22 30179 Hanover, Germany Attn: Max Mueller, Manager Tiergartenstr. 2 30559 Hanover, Germany The administrator can be contacted at: Dirk Stadler Callinstr. 43 30167 Hanover, Germany Tel: 0511/4739080 Fax: 0511/47390811 J + N METALLBAU: Claims Registration Ends June 26 ------------------------------------------------- Creditors of J + N Metallbau Verwaltungs GmbH have until June 26 to register their claims with court-appointed provisional administrator Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 11:25 a.m. on July 17, 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 J + N Metallbau Verwaltungs GmbH on May 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: J + N Metallbau Verwaltungs GmbH Dieselstrasse 16 48683 Ahaus, Germany Attn: Marcus Nonnast, Manager Hovesaat 11 48683 Ahaus, Germany The administrator can be contacted at: Andreas Sontopski Gnoiener Place 1 48493 Wettringen, Germany MONDELO GMBH: Claims Filing Period Ends June 28 ----------------------------------------------- Creditors of Mondelo GmbH have until June 28 to register their claims with court-appointed provisional administrator Dirk Stadler. Creditors and other interested parties are encouraged to attend the meeting at 11:40 a.m. on July 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 Hanover Hall 226 2nd 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 Hanover opened bankruptcy proceedings against Mondelo GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Mondelo GmbH Hainhauser Way 101 30855 Langenhagen, Germany Attn: Manfred Nimmerfroh, Manager Hasendamm 5 31275 Lehrte, Germany The administrator can be contacted at: Dirk Stadler Callinstr. 43 30167 Hanover, Germany Tel: 0511/4739080 Fax: 0511/47390811 MRV MULTI: Claims Filing Period Ends June 27 -------------------------------------------- Creditors of MRV Multi Reverse Vending GmbH have until June 27 to register their claims with court-appointed provisional administrator Norbert Kruse. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 18, 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 MRV Multi Reverse Vending GmbH on April 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: MRV Multi Reverse Vending GmbH Attn: Rudolph Klaus, Manager Industrial Road 27 49492 Westerkappeln, Germany The administrator can be contacted at: Norbert Kruse Bonhoefferstr. 10 48282 Emsdetten, Germany N/B METALL: Claims Filing Period Ends June 28 --------------------------------------------- Creditors of N/B Metall & Apparatebau GmbH have until June 28 to register their claims with court-appointed provisional administrator Dirk Stadler. Creditors and other interested parties are encouraged to attend the meeting at 11:50 a.m. on July 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 Hanover Hall 226 2nd 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 Hanover opened bankruptcy proceedings against N/B Metall & Apparatebau GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: N/B Metall & Apparatebau GmbH Hainhauser Way 101 30855 Langenhagen, Germany Attn: Manfred Nimmerfroh, Manager Hasendamm 5 31275 Lehrte, Germany The administrator can be contacted at: Dirk Stadler Callinstr. 43 30167 Hanover, Germany Tel: 0511/4739080 Fax: 0511/47390811 OTTO WIBBING: Claims Filing Period Ends June 27 ----------------------------------------------- Creditors of Otto Wibbing GmbH have until June 27 to register their claims with court-appointed provisional administrator Dr. Norbert Westhoff. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on July 18, 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 Bielefeld Hall 4065 4 Ebene Court Route 6 33602 Bielefeld, 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 Bielefeld opened bankruptcy proceedings against Otto Wibbing GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Otto Wibbing GmbH Breite Str. 28 33602 Bielefeld, Germany Attn: Hans-Otto Wibbing, Manager Jadeweg 54 c 33689 Bielefeld, Germany The administrator can be contacted at: Dr. Norbert Westhoff Adenauerplatz 4 33602 Bielefeld, Germany WILHELM GMBH: Creditors' Meeting Slated for June 29 --------------------------------------------------- The court-appointed provisional administrator for Wilhelm GmbH & Co. Ladenbau KG, Dr. Christoph Schulte-Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:50 a.m., on June 29. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:10 a.m., on Sept. 14 at the same venue. Creditors have until July 30 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Wilhelm GmbH & Co. Ladenbau KG on May 5. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Wilhelm GmbH & Co. Ladenbau KG Daimlerstrasse 9 67346 Speyer, Germany The administrator can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin, Germany WOHNWERT VERWALTUNGS: Creditors' Meeting Slated for June 26 ----------------------------------------------------------- The court-appointed provisional administrator for Wohnwert Verwaltungsgesellschaft mbH & Co. Asgard Hotelbetriebs KG, Wolfgang Mathass, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 2:30 p.m., on June 26. The meeting of creditors and other interested parties will be held at: The District Court of Worms Hall-Nr. 320 Hardtgasse 6 67547 Worms, Germany The Court will also verify the claims set out in the administrator's report at 2:30 p.m., on Sept. 4 at the same venue. Creditors have until Aug. 14 to register their claims with the court-appointed provisional administrator. The District Court of Worms opened bankruptcy proceedings against Wohnwert Verwaltungsgesellschaft mbH & Co. Asgard Hotelbetriebs KG on April 1. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Wohnwert Verwaltungsgesellschaft mbH & Co. Asgard Hotelbetriebs KG Gutleutstrasse 4 67547 Worms, Germany Attn: Stefan Pruss, Manager Untertrave 86 23552 Luebeck, Germany The administrator can be reached at: Wolfgang Mathass Kirschgartenweg 58 67549 Worms, Germany Tel: 06241/2061-0 Fax: 06241/2061-20 XERUS MARKETING: Creditors' Meeting Slated for June 29 ------------------------------------------------------ The court-appointed provisional administrator for Xerus Marketing GmbH, Dr. Petra Hilgers, will present her first report on the Company's insolvency proceedings at a creditors' meeting at 9:05 a.m., on June 29. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:25 a.m., on Sept. 14 at the same venue. Creditors have until July 30 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Xerus Marketing GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Xerus Marketing GmbH Magazinstr. 15 - 16 10179 Berlin, Germany The administrator can be reached at: Dr. Petra Hilgers Goethestr. 85 10623 Berlin, Germany =================== K A Z A K H S T A N =================== AK-BULAK: Proof of Claim Deadline Slated for June 23 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP AK-Bulak insolvent. Creditors have until June 23 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Maulenova Str. 92 Almaty, Kazakhstan Tel: 8 (3272) 67-63-59 FIRMA INTERFORVARD: Proof of Claim Deadline Slated for June 23 -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Firma Interforvard insolvent. Creditors have until June 23 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Maulenova Str. 92 Almaty, Kazakhstan Tel: 8 (3272) 67-63-59 JAPANESE NATIONAL: Claims Registration Ends June 23 --------------------------------------------------- Japanese National Corporation on Oil, Fluid and Metals has declared insolvency. Creditors have until June 23 to submit written proofs of claim to: Japanese National Corporation on Oil, Fluid and Metals Abai Ave. 153-37 Almaty, Kazakhstan Tel: 8 (3272) 40-25-59 KAZKEISITELEKOM: Claims Registration Ends June 23 ------------------------------------------------- CJSC Kazkeisitelekom (Kaz K & C Telekom) has declared insolvency. Creditors have until June 23 to submit written proofs of claim to: CJSC Kazkeisitelekom (Kaz K & C Telekom) Krivoguza Str. 5 Karaganda Karaganda Region Kazakhstan KTK-HIMPROMSNAB: Creditors Must File Claims by June 23 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty declared LLP KTK-Himpromsnab insolvent. Creditors have until June 23 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Maulenova Str. 92 Almaty, Kazakhstan Tel: 8 (3272) 67-63-59 NAR: Creditors Must File Claims by June 23 ------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty Region declared LLP NAR insolvent on March 30. Creditors have until June 23 to submit written proofs of claim to: LLP NAR Office 4 Kassina Str. 2/1 Mamyr 050052 Almaty, Kazakhstan Tel: 8 (3272) 93-19-22 8 (3335) 59-68-31 8 (3332) 58-50-41 ===================== N E T H E R L A N D S ===================== FORD CAPITAL: Fitch Downgrades Issuer Default Rating to B+ ---------------------------------------------------------- Fitch downgraded the following long-term ratings for both Ford Motor Company and Ford Motor Credit Company with Negative Rating Outlook, and assigned the following Recovery Ratings: Ford -- Issuer Default Rating to B+ from BB; and -- Senior unsecured to BB-/RR3 from BB. FMCC -- Issuer Default Rating to B+ from BB. Fitch also affirms FMCC's senior unsecured debt at BB/RR2. Ford's newly assigned RR3 rating indicates average recovery prospects of 50-70% in the event that further deterioration in operating results eventually results in a filing for bankruptcy. FMCC's new RR2 rating indicates superior recovery prospects of 70-90%. The downgrade and Negative Outlook reflect Fitch's expectation of persistent revenue deterioration through at least 2006 due to continued market share losses, deteriorating mix, price competition, a lack of key product introductions, coupled with lack of tangible progress in reducing its cost structure. Despite an aggressive spending plan in 2006 to reduce its fixed cost structure, persistently high commodity prices, and financial and operational stresses at Ford's supply base are likely to more than offset any progress in 2006, and Fitch expects that Ford will see little relief in either cost category over the near term. The unfavorable trend of revenues and key cost factors is expected to result in accelerated negative cash flows through 2006 and into 2007. Ford will be challenged to reverse negative cash flows given a relatively sparse product pipeline over the next several years. Ford has taken a number of steps to address its fixed cost structure through employee buyouts, the recent health care agreement with the UAW and certain plant closures, although cash savings are likely to be insufficient to reverse negative cash flows prior to the 2007 UAW contract re-opening. Ford's latest restructuring program extends through the 2012, with the bulk of facility closures not commencing until after 2007, limiting Ford's ability to achieve near-term cost reductions. The success of the restructuring program will, to a large degree, depend on the success of the OEM's ability to negotiate further benefit reductions and operational flexibility in the 2007 contract. Ford's U.S. supplier base remains fragile throughout the supply chain, which could result in higher direct costs, manufacturing inefficiencies or production interruptions at Ford. Although Ford has benefited from an improved passenger car portfolio and the strong market position of its core F-Series products, this has been insufficient to outpace the decline in midsize and large SUV sales, including the Explorer, which have historically been strong profit contributors. Ford also faces intensifying competition in the large pickup market from a refreshed GM lineup and the opening of a new Toyota plant later this year. Ford Credit, a strong provider of dividends over the past several years, is expected to demonstrate significantly reduced profitability and dividends going forward, resulting from a smaller portfolio, a reduced benefit from lower loss accruals, and higher interest rates. Fitch also recognizes that Ford has shown improvement and profitability in its operations outside the United States, including Europe, its Premium Automotive Group, Latin America, and in its Mazda holdings. Although Jaguar operations remain a significant drain on P.A.G., the turnaround in the consolidated group over the past several years has been a positive to this point. Ford's RR3 Recovery Rating is based on an analysis of a potentially restructured Ford. Fitch's restructuring analysis incorporates a Chapter 11 filing of North American operations and would result in significant claims from working capital liabilities in addition to unsecured debtholders. Fitch also factored in liabilities related to on and off-balance sheet liabilities that could augment claims. Fitch did not factor in claims related to potential termination or alteration of legacy OPEB and pension costs. In the event of a filing, Fitch anticipates that Ford would not attempt to terminate its pension plans. Changes to OPEB liabilities, as with the recent agreement between Ford and the UAW, would have to be negotiated as part of a new labor agreement in the event of a Chapter 11 filing, without resulting in claims against the estate. The restructured enterprise value includes reduced production volumes and sufficient cost reductions to achieve a 3% operating margin in North America, plus asset values associated with international operations and its 100% ownership of Ford Credit. Liquidity remains adequate to finance restructuring requirements and negative cash flows through the reopening of the UAW contract. Cash and short-term VEBA at March 31, 2006 totaled US$23.7 billion, supplemented by long-term VEBA that could be utilized to fund health care expenditures over the near term. Over the past several years, with the assistance of dividends from Ford Credit and the sale of Hertz, Ford has been able to maintain a strong level of liquidity, and has modestly reduced debt. Debt maturities remain very extended. Legacy liabilities are expected to decline in 2006 due to Ford's recent health care agreement with the UAW and a re-measurement of health care and pension liabilities due to higher interest rates. However, potential pension legislation could accelerate funding requirements. FMCC's IDR remains linked to those of Ford due to the close business relationship between them. Fitch expects FMCC's earnings and dividends to decline noticeably in 2006 primarily due to lower receivables outstanding and margins. FMCC has benefited from lower provision expense, as the quality of its receivables pool has increased, the pace of these improvements is expected to slow going forward. Fitch believes that FMCC maintains a good degree of liquidity relative to its rating. Supporting this is FMCC's ability to sell or securitize a broad spectrum of assets such as retail finance, lease, and wholesale loans. Moreover, FMCC continues to hold high cash balances and its assets mature faster than its debt. The RR2 Recovery Rating indicates superior recovery prospects on unsecured debt resulting from solid unencumbered asset protection, although discounted to account for stressed performance and/or disposition. Fitch downgraded these ratings with a Negative Rating Outlook: Ford Motor Co. -- Issuer Default Rating to B+ from BB; -- Senior debt to BB-/RR3 from BB. Ford Motor Credit Co. -- Issuer Default Rating to B+ from BB. FCE Bank Plc -- Issuer Default Rating to B+ from BB. Ford Capital B.V. -- Issuer Default Rating to B+ from BB. Ford Credit Canada Ltd. -- Issuer Default Rating to B+ from BB. Ford Motor Capital Trust II -- Preferred stock to B-/RR6 from B+. Ford Holdings, Inc. -- Issuer Default Rating to B+ from BB; -- Senior debt to BB-/RR3 from BB. Ford Motor Co. of Australia -- Issuer Default Rating to B+ from BB; -- Senior debt to BB-/RR3 from BB. Ford Credit Australia Ltd. -- Issuer Default Rating to B+ from BB. PRIMUS Financial Services (Japan) -- Issuer Default Rating to B+ from BB. Ford Credit de Mexico, S.A. de C.V. -- Issuer Default Rating to B+ from BB. Ford Motor Credit Co. of New Zealand -- Issuer Default Rating to B+ from BB. Ford Credit Co S.A. de CV -- Issuer Default Rating to B+ from BB. Fitch has also taken these rating actions: Ford Motor Co. -- Short-term Issuer Default Rating, rated B, is withdrawn. Ford Motor Credit Co. -- Short-term Issuer Default Rating affirmed at B; -- Commercial paper affirmed at B; -- Senior debt affirmed at BB/RR2. FCE Bank Plc -- Senior Unsecured affirmed at BB/RR2. -- Short-term Issuer Default Rating affirmed at B; -- Commercial Paper affirmed at B; and -- Short-term Deposits affirmed at B; Ford Capital B.V. -- Senior Unsecured affirmed at BB/RR2. Ford Credit Canada -- Short-term Issuer Default Rating affirmed at B; -- Commercial Paper affirmed at B; -- Senior Unsecured affirmed at BB/RR2. Ford Credit Australia Ltd. -- Senior Unsecured affirmed at BB/RR2; -- Short-Term IDR affirmed at B; -- Commercial Paper affirmed at B. PRIMUS Financial Services (Japan) -- Senior Unsecured affirmed at BB/RR2; -- Short-term IDR affirmed at B. Ford Motor Credit Co. of New Zealand -- Senior Unsecured affirmed at BB/RR2; -- Short-Term IDR affirmed at B; -- Commercial Paper affirmed at B. Ford Credit Co. S.A. de C.V. -- Senior Unsecured affirmed at BB/RR2. Fitch's Recovery Ratings, introduced in 2005, are a relative indicator of creditor recovery on a given obligation in the event of a default. =========== R U S S I A =========== BUILDING ASSEMBLY 21: Bankruptcy Hearing Slated for June 22 ----------------------------------------------------------- The Arbitration Court of Stavropol Region will convene on June 22 to hear the bankruptcy supervision procedure on CJSC Building Assembly Enterprise 21 (TIN/KPP 2630000589/263001001). The case is docketed under Case No. A63-1422/06-S5. The Temporary Insolvency Manager is: V. Kovalchuk Krasnoflotskaya Str. 46 355000, Stavropol Region, Russia The Debtor can be reached at: CJSC Building Assembly Enterprise 21 Novoselova Str. 9A Mineralnye Vody 357207, Stavropol Region, Russia CHUVASHIA: Moody's Assigns Ba2 Rating to RUR1 Billion Bond ---------------------------------------------------------- Moody's Investors Service assigned the definitive Global Scale Rating of Ba2 to the RUR1 billion Bond due 2011 issued by the Republic of Chuvashia and partially guaranteed by the International Finance Corporation. At the same time Moody's Interfax Rating Agency, which is majority owned by Moody's, assigned the definitive National Scale Rating of Aa2.ru to the Bond. According to Moody's and Moody's Interfax, the Ba2 Global Scale Rating reflects the transaction's global default and loss expectation, while the Aa2.ru National Scale Rating reflects the standing of its credit quality relative to its domestic peers. This transaction is partially guaranteed by the IFC, a member of the World Bank Group. The irrevocable and unconditional partial guarantee from the IFC enhances the credit of the Republic of Chuvashia on this five-year maturity bullet bond. Under the guarantee documentation, the IFC will, subject to the timely receipt of a notice from the Authorized Agent, cover any potential shortfall due to bondholders including the outstanding interest and principal amount due under the Bond, up to a maximum of 23% of the outstanding principal amount RUR230,000,000. The ratings address the expected loss on the Bonds during the life of the transaction. In Moody's opinion the structure allows for timely payment of interest during the life of the transaction, and ultimate payment of principal by the final legal maturity. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. ELANSK-AGRO-PROM-KHIMIYA: Y. Podgornov to Manage Assets ------------------------------------------------------- The Arbitration Court of Volgograd Region appointed Mr. Y. Podgornov as insolvency manager for Municipal Unitary Enterprise Elansk-Agro-Prom-Khimiya (Case No. A12-998/06-s58). He can be reached at: Y. Podgornov Khirosimy Str. 1194 400050, Volgograd Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: Municipal Unitary Enterprise Elansk-Agro-Prom-Khimiya V. Ponomareva Str. 1 Elan Volgograd Region, Russia INTERNATIONAL MOSCOW: Fitch Affirms Individual Rating at C/D ------------------------------------------------------------ Fitch Ratings affirmed International Moscow Bank's ratings at foreign currency Issuer Default BBB, Short-term foreign currency F3, local currency Issuer Default BBB+, Short-term local currency F2, Individual C/D, and Support 2. The Outlooks on the Issuer Default ratings are Stable. IMB's IDRs, Short-term and Support ratings are driven by the potential strong support from its indirect majority-owner, UniCredito Italiano. However, IMB's foreign currency IDR is constrained by the BBB Country Ceiling for Russia. The Individual rating reflects IMB's fairly high, albeit improved, concentration levels on both sides of the balance sheet. It also considers the risks associated with the bank's rapid loan growth in segments and regions where it has less experience. However, it also factors in IMB's experienced management, good risk-management framework, fairly limited market risk and the input of its foreign owners. Profitability is also robust and IMB's franchise is growing. A change in UCI's propensity and/or ability to support IMB could affect the IDRs. Movement in the Country Ceiling would also have implications for the foreign currency IDR. An upgrade of the Individual rating could result from a strengthening of IMB's capital base, a further fall in concentrations and/or an improvement in the operating environment. A downgrade could result from a failure to manage the risks associated with loan diversification, resulting in a sharp deterioration in asset quality, and/or if capital came under more pressure. IMB was established in October 1989 as Russia's first joint venture bank with foreign participation. IMB's core business is servicing large and medium-sized domestic corporates. However, its strategy is to develop its retail banking operations further, including in the regions, as well as lending to smaller companies. Bayerische Hypo- und Vereinsbank has approximately 53% of the voting rights in IMB, Nordea 26%, BCEN-Eurobank 16% and the European Bank for Reconstruction and Development 5%. IMB ranks among the top 10 Russian banks by total assets. KRASNOYARSKIY FACTORY: P. Protsenko to Manage Insolvency Assets --------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. P. Protsenko as insolvency manager for CJSC Krasnoyarskiy Factory Of Heavy Engineering (Case No. A33-11202/2005). He can be reached at: P. Protsenko Post User Box 12016 660028, Krasnoyarsk Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. MOKOVSKIY BRICKWORKS: Court Taps S. Bulgakov to Manage Assets ------------------------------------------------------------- The Arbitration Court of Kursk Region appointed Mr. S. Bulgakov as insolvency manager for LLC Mokovskiy Brickworks. He can be reached at: S. Bulgakov Litovskaya Str. 12A 305023, Kursk Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent (Case No. A35-8875/05g). NOVATEK: Shareholders Approve 2005 Dividend in AGM -------------------------------------------------- Shareholders OAO Novatek approved the Company's profit distribution for 2005 during their Annual General Meeting. Based on NOVATEK's 2005 annual results, net profit in accordance with Russian Accounting Standards amounted to RUR15.18 billion. The AGM resolved to pay dividends on the Company's shares in the amount of RUR523 per one ordinary share (excluding interim dividends paid for nine months of 2005 in the amount of RUB377 per one ordinary share). The total dividend distribution amounting to RUB2.7 billion (including interim dividends paid for nine months of 2005) equals 18% of the Company's net profit for 2005 (according to RSA), or RUB900 per ordinary share. The date of record for the list of persons entitled to receive dividends was compiled on April 21, which also coincided with the date for making a list of those entitled to attend the Company's AGM. Headquartered in Moscow, OAO Novatek is Russia's second largest gas company after state-controlled Gazprom, and the largest of the country's independent gas producers. * * * As reported in TCR-Europe on March 21, Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to OAO Novatek, Russia's largest independent gas producer. S&P said the outlook is stable. ONIX-GROUP: Court Begins Bankruptcy Supervision ----------------------------------------------- The Arbitration Court of Kareliya Republic has commenced bankruptcy supervision procedure on CJSC Onix-Group (Case No. A26-10827/2006-18). The Temporary Insolvency Manager is: G. Spirin Kirova Str. 6-4 Sortavala 186790, Kareliya Republic, Russia ROSBANK: S&P Places B/C and ruA- Ratings on CreditWatch Positive --------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' long-term and 'C' short-term counterparty credit ratings and 'ruA-' Russia national scale rating on Russia-based Rosbank OJSC on CreditWatch with positive implications following news that French bank Soci,t, G,n,rale (SocGen) is acquiring a 10% stake and aiming to increase its holding in Rosbank to 20% in the coming months. Standard & Poor's is likely to resolve the CreditWatch placement in the coming months and upgrade Rosbank, depending on the extent of SocGen's future operational support, commitment to and strategic involvement in the Russian bank, following the possible increase of the French bank's stake to 20%. "With SocGen and Rosbank, we will aim to determine the expected benefits of their cooperation," said Standard & Poor's credit analyst Ekaterina Trofimova. "The investment fits well with SocGen's strategy to expand in the Commonwealth of Independent States with a focus on retail banking, and stands to strengthen the French bank's position in the fast-growing Russian market." The development of Rosbank's commercial and financial profile will also be an important rating driver. The ratings on Rosbank reflect its low operating efficiency; challenges in managing an extensive distribution network; limited capitalization; the untested quality of a fast-growing retail portfolio; substantial, albeit declining, loan and funding concentrations; and Russia's high operating risks. These factors are mitigated by Rosbank's strengthening commercial and financial profile, benefiting from a growing business base, namely in retail banking; good commercial dynamism; and expectations of higher sustained core profitability in the medium term. With total assets of RUR213 billion (about EUR7.4 billion) at Dec. 31, 2005, Rosbank ranked among the top three private sector banks in Russia. The bank is owned by Russia's largest nonenergy financial industrial group, Interros; its largest asset is OJSC MMC Norilsk Nickel, specialized in metals and mining. Due to Interros' uneven support track record, we have not given Rosbank any rating uplift for its current ownership above the stand-alone ratings. RUSSIAN MORTGAGE: Fitch Assigns BB- Rating on Class B Notes ----------------------------------------------------------- Fitch Ratings assigned Russian Mortgage Backed Securities 2006-1 S.A's Class A notes an expected BBB+ rating. The Class B notes are assigned an expected BBB and the Class C notes BB-. This is the first cross-border RMBS transaction to emanate from the Russian Federation. The originator and seller of the mortgage portfolio is JSC Vneshtorgbank, the second largest bank in Russia and is 99.9% owned by the Russian state. Head of Fitch's Emerging Markets Structured Finance Nick Eisinger disclosed, "The transaction represents an important milestone for the nascent Russian securitization market and the evolution of mortgage funding in the Federation." "The securitization market is, nonetheless, at an early stage of development in Russia and obstacles to its broader growth remain. In particular the evolving legal environment remains untested as far as existing asset securitization is concerned," he added. Despite these general shortcomings, there are various factors associated with this transaction, including the capital structure and systemic importance of the originating bank that mitigate Fitch's concerns over legal issues. This transaction is a securitization of first ranking US dollar- denominated residential mortgage loans secured on property located in the Russian Federation. The ratings address the timely payment of interest and ultimate payment of principal in accordance with the terms of the notes. The expected ratings are based on the quality of the collateral, available credit enhancement, the underwriting and servicing capabilities of the originator and the legal structure of the transaction. VTB ownership dynamics and its importance for the Russian financial system also played a vital part in the rating analysis. Initial credit enhancement of 18.5% for the Class A notes will be provided by the subordination of the Class B notes and the Class C notes. Further credit enhancement is available in the form of a non-amortizing cash reserve in the amount of 2.5% of the issuance amount fully funded at closing by a subordinated loan extended by VTB. A liquidity facility will also be made available for covering interest and senior fee shortfalls up to a limit of 6% of the issuance, which will be allowed to amortize to 2% of the outstanding balance of the notes subject to certain conditions. The transaction also benefits from a sovereign risk facility that provides liquidity for the senior notes in the event of the Russian government restricting the ability to convert and transfer US dollars out of the country. SIBEX: Kemerovo Court Starts Bankruptcy Supervision --------------------------------------------------- The Arbitration Court of Kemerovo Region has commenced bankruptcy supervision procedure on CJSC Sibex (Case No. A27- 41867/2005-4). The Temporary Insolvency Manager is: A. Markov Post User Box 830 Main Post Office 650099, Kemerovo Region, Russia The Debtor can be reached at: CJSC Sibex Oktyabrskiy Pr. 53/2 Kemerovo Region, Russia TNK-BP: Sergey Brezitsky Replaces Igor Dibtsev as EVP-Upstream -------------------------------------------------------------- TNK-BP has appointed Sergey Brezitsky as Executive Vice President, Upstream effective immediately. He replaces Igor Dibtsev, who had previously decided to leave the company to pursue other career opportunities. Mr. Brezitsky joined the TNK group in 1999, and was appointed Samotlor Business Unit Leader at the time of the TNK-BP merger. For the last 18 months, he has had the post of EVP of Oil Field Services at TNK-BP, and has led the development and implementation of its restructuring strategy for services provision. Mikhail Osipov is appointed Executive Vice President, Oil Field Services, replacing Mr. Brezitsky. Mr. Osipov joined the TNK group in 1998. Since the TNK-BP merger in late 2003, he has successfully led Upstream Business Units in Tyumen and Orenburg. With his experience in leading diverse businesses with important field services connections, Mr. Osipov will take the Oil Field Services Stream forward in its strategic direction. This appointment is effective immediately. James Dupree will be leaving TNK-BP this summer, having been Executive Vice President for Technology since the formation of TNK-BP. Mr. Dupree led the application of world class technology and working closely with Upstream, helped create TNK- BP's brownfield renaissance, and initiated programs for resource and people development that will sustain the company's future growth. Richard Herbert is appointed Executive Vice President, Technology, replacing James Dupree. Mr. Herbert joined the BP group in 1980, and came to TNK-BP as Vice President Exploration after serving in increasingly responsible international operations and technical leadership roles. Since the formation of TNK-BP, he has led the creation of an Exploration team delivering world-class results and building a portfolio of growth projects. This appointment is effective from July 10th, 2006. All three appointments will report to TNK-BP's Chief Operating Officer, Tim Summers. "I am particularly pleased that the strength and experience of our management team has allowed us to promote internal candidates to these important roles and create continuing growth opportunities within the company," TNK-BP President and CEO, Robert Dudley said. Headquartered in the British Virgin Islands, TNK-BP is one of the largest oil companies in Russia, jointly owned by BP Plc and Alfa Access/Renova. At year-end 2004, the group had just above 8 billion barrels of proved SEC (to economic life of fields) reserves and in the first 9 months of 2005 produced close to 1.56 million barrels of oil per day. TNK-BP generated revenues of US$14.3 billion in 2004. * * * As reported in TCR-Europe on Feb. 15, Fitch Ratings assessed TNK-BP International Ltd's Senior Unsecured rating at BB+ with Outlook Positive and Short-term B. Its US$700 million eurobond is affirmed at BB+. TNK-BP holds a strategic position as the second largest liquids producer in the Russian intergraded operating environment, accounting for approximately 18% of Russia's total crude oil production. VIMPELCOM: Earns US$150 Million in First Quarter 2006 ----------------------------------------------------- Vimpel-Communications reveals its unaudited first quarter financial results for the three months ended March 31, 2006. The Company reported a US$150,223,000 net income on US$936,466,000 net revenues for the three months ended March 31, 2006, compared with the US$109,664,000 net income on US$640,636,000 net revenues for the same period in 2005. At March 31, 2006, the VimpelCom's consolidated balance sheet showed US$6.52 billion in total assets, US$3.61 billion in total liabilities and US$2.91 billion in shareholders' equity. "Our business continued its successful development in the first quarter of 2006," VimpelCom Chief Executive Officer Alexander Izosimov said. "This was the 26th consecutive quarter of revenue growth. In the first quarter of 2006, we achieved the highest quarterly OIBDA and OIBDA margin in our history. These results came on the back of strong performance both in Russia and Kazakhstan." About VimpelCom Headquartered in Moscow, Russia, VimpelCom -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. * * * As reported in TCR-Europe on Feb. 16, Standard & Poor's Ratings Services said that its ratings and outlook on Russian mobile telecommunications operator Vimpel-Communications (VimpelCom; BB/Positive/--) are unaffected by the company's announcement that it has launched a bid for Ukraine-based mobile telecommunications operator CJSC Kyivstar GSM (BB-/Watch Positive/--) for a consideration of US$5 billion in VimpelCom common registered shares plus assumed debt. YUKOS OIL: Arbitration Court Postpones First Creditors' Meeting --------------------------------------------------------------- The Arbitration Court of Moxcow entered an order postponing the first meeting of creditors of Yukos Oil Company slated for Friday, June 16, RIA Novosti relates. According to the report, the Court said it needs more time to decide whether to include Yukos creditors into a register of creditors suing the company, which included: * Rosneft -- US$482 million * Yuganskneftegaz -- RUB75 billion or about US$3 billion * Tomskneft-VNK -- RUB12.3 billion or US$457.6 million * Samaraneftegaz -- RUB1.85 billion or US$69 million The paper said the court also postponed until June 14 a ruling on a similar request from the Russian tax authorities and Siberian Internet Company with their RUB353.8 billion and RUB74.4 million claims, respectively. Other pending hearings will now have to be moved because of the delayed creditors' session, RIA Novosti reports. 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, a 14-bank consortium led by Societe Generale filed 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. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (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. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. ZAPADNOYE: Court Names Y. Shapovalov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Stavropol Region appointed Mr. Y. Shapovalov as insolvency manager for CJSC Zapadnoye. He can be reached at: Y. Shapovalov Pyatigorsk, Ermolova Str. 38 Stavropol Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent (Case No. A63-2563/06-S5). The Debtor can be reached at: CJSC Zapadnoye Vin Sady Stavropol Region, Russia ========= S P A I N ========= CONSUMO BANCAJA: Fitch Junks EUR13.5 Million Series D Notes ----------------------------------------------------------- Fitch Ratings assigned expected ratings to Consumo Bancaja 1 Fondo de Titulizacion de Activos' asset-backed securities notes due in May 2020 as: -- EUR566.1 million Series A: AAA; -- EUR14.7 million Series B: AA; -- EUR19.2 million Series C: A-; and -- EUR12.8 million - EUR13.5 million Series D: CCC. The final ratings are contingent upon receipt of final documents conforming to information already received. The expected ratings are based on the quality of the collateral, the available credit enhancement, Bancaja's underwriting and servicing capabilities, the integrity of the transaction's legal and financial structures, and Europea de Titulizacion SGFT, SA's administrative capabilities. This is the first consumer and auto loan securitization originated by the seller. The transaction has a two-year revolving period after which the notes will amortize sequentially. Caja de Ahorros de Valencia, Castellon y Alicante is an active player in the Spanish securitization arena, bringing to the market a total of 12 single seller RMBS and MBS transactions and five SME CDOs to date. Initial credit enhancement for the Series A notes will be provided by the subordination of the Series B and C notes, plus a reserve fund. Initial credit enhancement for the Series B notes will be provided by the subordination of the Series C notes plus the reserve fund, and initial credit enhancement for the Series C notes will be formed only by the reserve fund. The expected ratings address payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on Series B and C notes, as well as the repayment of principal by legal maturity. The issuer will be legally represented and managed by Europea de Titulizacion SGFT, SA, a limited liability, special-purpose management company incorporated under the laws of Spain. ESPANOLA DEL ZINC: Heliopolis Invest Purchases 5% Equity Stake -------------------------------------------------------------- Heliopolis Invest SA has acquired a 5% stake in Espanola del Zinc SA for EUR2.4 per share, 30% more than Espanola's last trade before the stock was suspended in January 2005 due to a financial reorganization, Bloomberg News reports. Espanola Chairman Juan Martinez disclosed that stockholders can choose between a management-backed plan and an alternative plan proposed by Metainversion SA, which has a 10.5% holding in the company, at a stockholders' meeting slated for June 23, Bloomberg relates. Bloomberg said the management-supported plan calls for the sale of approximately EUR46.8 million in stock while the rival plan calls for the sale of fewer shares and charging more for them. According to the report, the Company has expressed the need to bolster its finances, repay debt and move its facilities to better locations. Headquartered in Madrid, Spain, Espanola del Zinc manufactures zinc ingots and sulfuric acid. =========== T U R K E Y =========== TURK EXIMBANK: Moody's Assigns Issuer Rating at Ba1 --------------------------------------------------- Moody's Investors Service assigned a Ba1 foreign currency issuer rating to Export Credit Bank of Turkey (Turk Eximbank). This rating was assigned in line with Moody's methodology on rating Government-Related Issuers (GRIs), and has a stable outlook. The Ba1 rating is two notches higher than the Republic of Turkey's Ba3 foreign currency debt rating and remains constrained by the revised ceiling for foreign currency debt in the country. The GRI methodology, which applies Joint-Default Analysis, formally disaggregates the ratings of GRIs into four components: -- an assessment of the GRI's baseline credit risk, -- the default risk of the supporting government, -- the default dependence between the GRI and the government, and -- the expected level of support from the government. According to Moody's, Turk Eximbank's baseline credit assessment (BCA) of 4 (on a scale of 1-to-6, with 1 indicating highest credit quality), which reflects the bank's standalone financial strength, would on its own have been higher than the current Ba1 in an unconstrained environment. It remains capped at this level despite further reinforcement by a high likelihood of support from the Turkish Government and by moderate default dependence. Turk Eximbank's BCA takes into account the bank's very strong profitability and capitalization and moderate exposure to credit risk. It also factors in the bank's solid export finance and credit insurance franchise, notwithstanding growing competition from private commercial banks. Turk Eximbank was set up by the Turkish Government in 1987 and finances or insures about 10% of the country's exports. Moody's view on the high likelihood of support from the Turkish Government is based on 100% ownership by the Turkish Treasury, on Turk Eximbank's important role in promoting the country's exports and on the government's track record of reimbursing the institution for any losses it incurs in its foreign activities due to political risk. Export Credit Bank of Turkey is headquartered in Ankara and at the end of 2005 had total assets of YTL3.42 billion (US$2.53 billion). ============= U K R A I N E ============= AGROFIRM MOLODIVSKA: Court Opens Bankruptcy Proceedings ------------------------------------------------------- The Economic Court of Harkiv Region commenced bankruptcy proceedings against LLC Agrofirm Molodivska (code EDRPOU 30773180) after finding it insolvent on April 3. The case is docketed under Case No. B-50/166-05. The Liquidator/Insolvency Manager is: Anatolij Rovnij Miru Str. 5/8 Komunist Harkiv District Harkiv Region, Ukraine The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022, Harkiv Region, Ukraine The Debtor can be reached at: LLC Agrofirm Molodivska Molodova Volchanskij District 62653, Harkiv Region, Ukraine AKVARIUMIST: Court Commences Bankruptcy Supervision --------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC Akvariumist on March 2. The case is docketed under Case No. 43/163. Mr. S. Dyachenko has been appointed temporary insolvency manager. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine The Debtor can be reached at: LLC Akvariumist G. Skovoroda Str. 17-v 01380 Kyiv Region, Ukraine ARIOL: Court Names S. Vardikyan to Manage Insolvency Assets ----------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Mr. S. Vardikyan has been appointed Liquidator/Insolvency Manager for LLC Ariol (code EDRPOU 31473893). He can be reached at: Lenin Avenue 84/15 69002 Zaporizhya Region, Ukraine Tel: (061) 270-01-79 The Court commenced bankruptcy proceedings at the company after finding it insolvent on April 4. The case is docketed under Case No. 21/97/06. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region, Ukraine The Debtor can be reached at: LLC Ariol Zhukovskij Str. 77 69002 Zaporizhya Region, Ukraine IRON TRADE: Dnipropetrovsk Court Opens Bankruptcy Proceedings ------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region commenced bankruptcy proceedings against LLC Iron Trade (code EDRPOU 30011357) after finding it insolvent on April 6. The case is docketed under Case No. B 24/247/05. The Liquidator/Insolvency Manager is: Kostyantin Romanov a/b 3740 49064, Dnipropetrovsk Region, Ukraine The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600, Dnipropetrovsk Region, Ukraine The Debtor can be reached at: LLC Iron Trade Ovrazhna Str. 39 49094, Dnipropetrovsk Region, Ukraine LVIV' TABACCO: Court Taps Roman Ulyanik as Liquidator ----------------------------------------------------- The Economic Court of Lviv Region appointed Roman Ulyanik as Liquidator/Insolvency Manager for OJSC Lviv' Tabacco Factory (code EDRPOU 30477389). He can be reached at: Roman Ulyanik Shiroka Str. 90/16 79052 Lviv Region, Ukraine The Court commenced bankruptcy proceedings at the company after finding it insolvent on March 13. The case is docketed under Case No. 6/210-29/241. The Economic Court of Lviv Region is located at: Lichakivska Str. 81 79010 Lviv Region, Ukraine The Debtor can be reached at: OJSC Lviv' Tabacco Factory Shevchenko Str. 1 79000 Lviv Region, Ukraine SHALFEJNE: AR Krym Court Starts Bankruptcy Process -------------------------------------------------- The Economic Court of AR Krym Region commenced bankruptcy supervision procedure on OJSC Shalfejne (code EDRPOU 00388116) on Feb. 16. The case is docketed under Case No. 2-20/6654-2006. The Temporary Insolvency Manager is: Vasil Kuht Ruskij Lane, 94 Simferopol AR Krym Region, Ukraine The Economic Court of Ar Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region, Ukraine The Debtor can be reached at: OJSC Shalfejne Shkilna Str. 3 Rozdolne Sovetskij District 97215 AR Krym Region, Ukraine TROSTYANETS' BREAD: Court Commences Bankruptcy Supervision ---------------------------------------------------------- The Economic Court of Vinnitsya Region commenced bankruptcy supervision procedure on OJSC Trostyanets' Bread Receiving Enterprise (code EDRPOU 00953289). The case is docketed under Case No. 10/34-06. The Temporary Insolvency Manager is: Sergij Severin Hmelnitske Shoes Str. 2-A/710 Vinnitsya Region, Ukraine Ukraine The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036, Vinnitsya Region, Ukraine The Debtor can be reached at: OJSC Trostyanets' Bread Receiving Enterprise Pershogo Travnya Str. 26 Trostyanets 24300, Vinnitsya Region, Ukraine VOSHOD: Court Names Denis Matvijchuk to Liquidate Assets -------------------------------------------------------- The Economic Court of Donetsk Region appointed Denis Matvijchuk has been appointed Liquidator/Insolvency Manager for LLC VOSHOD (code EDRPOU 31933687). He can be reached at: Denis Matvijchuk Mariupol, a/b 189 87557 Donetsk Region, Ukraine The Court commenced bankruptcy proceedings at the company after finding it insolvent on March 28. The case is docketed under Case No. 15/170 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region, Ukraine The Debtor can be reached at: LLC Voshod Kujbishev Str. 107 83048 Donetsk Region, Ukraine ZORYA: Court Names Viktoriya Cherepenko to Manage Assets -------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Viktoriya Cherepenko as Liquidator/Insolvency Manager for LLC Zorya (code EDRPOU 03765482). She can be reached at: Moskovska Str. 54-a 54017 Mikolaiv Region, Ukraine Tel: 8 (0512) 47-34-64 The Court commenced bankruptcy proceedings at the company after finding it insolvent on April 6. The case is docketed under Case No. 2/178/05. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region, Ukraine The Debtor can be reached at: LLC Zorya District Illichivka Bratskij Mikolaiv Region, Ukraine =========================== U N I T E D K I N G D O M =========================== 24 STORE: Creditors Pass Winding Up Resolution ---------------------------------------------- Creditors of 24 Store Limited passed a resolution to wind up the company's operations during an extraordinary general meeting on March 10. Robert James Thompson, of Rendell Thompson, was appointed Liquidator. The company can be reached at: 24 Store Ltd Cyberia House Church Street Basingstoke Hampshire RG21 7QG United Kingdom Tel: 01256 867900 A1 VALE: Brings In Joint Liquidators from Lines Henry ----------------------------------------------------- Neil Henry and Michael Simister, of Lines Henry, were appointed Joint Liquidators of A1 Vale Skips Limited after creditors agreed to liquidate the company's assets during an extraordinary general meeting on March 29. The company can be reached at A1 Vale Skips Limited 10 Flaxendale Cotgrave Nottingham Nottinghamshire NG123NR United Kingdom Tel: 0115 989 0192 Fax: 0115 989 0192 ADVICE FOR LIFE: Creditors Confirm Voluntary Liquidation -------------------------------------------------------- Creditors of Advice for Life Limited confirmed the company's voluntary liquidation during an extraordinary general meeting on March 29. Creditors also ratified the appointment of Geoffrey Stuart Kinlan and Anthony Sanderson, of BDO Stoy Hayward LLP, as Joint Liquidators. The company can be reached at: Advice for Life Limited 1 Park Terr Manor Road Luton LU1 3HN United Kingdom Tel: 01582 616 000 ALBA SALES: Financial Woes Trigger Liquidation ---------------------------------------------- Alba Sales Limited is winding up its operations after creditors established the company could no longer continue its business due to mounting debts. Clive Robert Hammond, of PB Recovery Limited, was appointed Liquidator. The company can be reached at: Alba Sales Limited Ongar Road Trading Estate Onger Road Dunmow Essex CM6 1EU United Kingdom Tel: 01371 875 557 Fax: 01371 875 937 BAA PLC: Accepts Ferrovial's GBP10.3 Billion Takeover Offer ----------------------------------------------------------- BAA plc has agreed to a revised definitive proposal from Spain's Grupo Ferrovial SA, rejecting a rival offer from Goldman Sachs and its bidding partners. The Company said Ferrovial's business proposal had better strategic rationale than Goldman Sachs, Christopher Bjork writes for the Wall Street Journal. Ferrovial's offer values the company at GBP950.25 per share, or approximately GBP10.3 billion. "As part of this consideration, shareholders will be entitled to receive the proposed final dividend of GBP15.25 per share. The Board believes that an offer at this level represents an attractive price for BAA," BAA said in a statement. Goldman Sachs disclosed that it has abandoned talks to takeover Britain's largest airport operator. "Ferrovial has the backing of BAA, owns shares and is further along in the process so the offer has a very good chance of success now," Frank Skodzik, an analyst with WestLB in Dusseldorf, Germany, told Bloomberg News. Michael Harrison and Andy McSmith of The Independent said Ferrovial is expected to sell off some of BAA's foreign assets to reduce the company's debts, which will rise to GBP12 billion once the takeover is complete. Ferrovial has until June 26 to complete the deal. According to The Independent, BAA Chief Executive Mike Clasper would likely leave BAA after the takeover. Headquartered in London, England, BAA plc owns and operates seven airports in the United Kingdom, including Healthrow, the world's busiest international airport, and Budapest Airport, serving 700 destination by around 300 airlines. Its UK airports handled over 117 million international passenger during the 12 months up to October 2005. International passengers make up 81% of its total UK airport traffic. BAA had total assets of GBP15.2 billion and pre-tax profits of GBP757 million for the year ended March 31, 2006. * * * As reported in TCR-Europe on June 9, Moody's Investors Service downgraded to Ba1 from Baa3 the issuer rating of BAA Plc as well as the ratings for: -- GBP425 million convertible bonds due August 2009; -- GBP424 million convertible bonds due April 2008; and -- GBP200 million 7.875% bonds due February 2007. BAA's short-term rating was also downgraded to Not Prime from Prime-3. All other long-term debt ratings remain at Baa2. All long-term ratings remain on review for further downgrade. BENTLEY BROOK: Appoints E.J. Stonham as Administrator ----------------------------------------------------- E. J. Stonham of Stonham & Co. was appointed administrator of Bentley Brook Ltd. (Company Number 4270926) on May 16. The administrator can be contacted at: Stonham & Co. 13 Southgate Chichester West Sussex PO19 1ES United Kingdom Tel: 01243 839000 Headquartered in London, Bentley Brook Ltd retails household furniture. CABLE & WIRELESS: Employee Share Trustees Sell 140,924 Shares ------------------------------------------------------------- The Trustees of Cable and Wireless PLC Employee Share Ownership Trust disposed of 135,366 Ordinary Shares at a price of GBP1.0275 per share on June 6. On the same day, the Trust disposed of 5,558 Ordinary Shares at a price of GBP1.0425 per share. Following the disposals, 50,503,290 Ordinary Shares are held under the Trust. Rob Rowley, George Battersby, Tony Rice, John Pluthero and Harris Jones (all being directors of Cable and Wireless plc), in their capacity as members of the class of beneficiaries under the Trust, and Towers Perrin Share Plan Services (GSY) Limited, in their capacity as Trustees of the Trust, are deemed to have a non-beneficial interest in these Ordinary Shares. No Directors are disposing of any beneficial interests in the Company. Headquartered in London, Cable & Wireless PLC -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. Its principal operations are in the United Kingdom, continental Europe, Asia, the Caribbean, Panama and the Middle East. Fitch Ratings has affirmed Cable & Wireless' ratings at Long- term 'BB+' with Stable Outlook and Short-term 'B'. * * * As reported in the Troubled Company Reporter-Europe on March 3, Standard & Poor's Ratings Services said that the ratings and outlook on U.K.-based telecommunications operator Cable & Wireless PLC (C&W; BB-/Negative/B) were unchanged following the group's presentation of plans for further restructuring and refocusing of its U.K. business. C&W is replicating the broadly successful business model of Energis, the U.K. telecoms services company that it acquired in November 2005. It has announced a withdrawal from the low- margin U.K. small-to-midsized business market and a focus on large U.K. corporate customers. Given this streamlining of the customer and product base, employee numbers could reduce by up to 3,000, resulting in additional headcount reduction and lease exit costs. The group is to continue investing in Bulldog, its early stage, and largely residential, local-loop-access operation. C.S. INTERIORS: Names Anthony Harry Hyams Liquidator ---------------------------------------------------- Anthony Harry Hyams, of Marriotts LLP, was appointed Liquidator of C.S. Interiors Limited after creditors decided to wind up the company on March 23. The company can be reached at: C.S. Interiors Limited The Coach House High Street Hoddesdon Hertfordshire EN118ET United Kingdom Tel: 01992 445 787 CHEMI-COM SUPPLIES: Creditors Resolve to Liquidation ---------------------------------------------------- Creditors of Chemi-Com Supplies Limited resolved to liquidate the company's assets during an extraordinary general meeting on March 29. Subsequently, Gagen Dulari Sharma was appointed Liquidator. The company can be reached at: Chemi-Com Supplies Limited Unit 10B Audley Enterprise Park Audley Avenue Newport Shropshire TF107DP United Kingdom Tel: 01902 443 206 CONSORT CONCRETE: Hires Liquidator from Benedict Mackenzie LLP -------------------------------------------------------------- Consort Concrete Limited is liquidating its assets after creditors passed a resolution to wind up the company on March 29. Anthony Peter McQueen Benedict, of Benedict Mackenzie LLP, was appointed Liquidator. The company can be reached at: Consort Concrete Repair Limited Railway App Consort Road London SE152PR United Kingdom Tel: 020 7639 5300 Fax: 020 7635 6571 D. A. MCKENNA: Hires Joint Administrators from DTE Leonard ---------------------------------------------------------- A. Poxon and J. M. Titley of DTE Leonard Curtis were appointed joint administrators of D.A. McKenna Insurance Brokers Limited (Company Number 04881185) on May 19. 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. D. A. Mckenna Insurance Brokers Limited can be reached at: Lancaster House 70-76 Blackburn Street Radcliffe Manchester M26 2JW United Kingdom EAST CENTRAL: Taps UHY Hacker Young to Administer Assets -------------------------------------------------------- Andrew Andronikou and Ladislav Hornan of UHY Hacker Young were appointed joint administrators of East Central (U.K.) Limited (Company Number 05609956) on May 15. The administrators can be reached at: UHY Hacker Young St Alphage House, 2 Fore Street London EC2Y 5DH United Kingdom Tel: 020 7216 4600 Fax: 020 7638 2159 Headquartered in Brentwood, United Kingdom, East Central (U.K.) Limited distributes computer consumables. ELSYM (BURTON): Joint Liquidators Take Over Operations ------------------------------------------------------ Richard James Philpott and Mark Jeremy Orton of KPMG LLP, were appointed Joint Liquidators of Elsym (Burtion) Limited after creditors resolved to liquidate the company's assets during an extraordinary general meeting on March 24. The company can be reached at: Elsym (Burton) Limited Unit 6 Falcon Close Burton-on-Trent Staffordshire DE141SG United Kingdom Tel: 01283 510 717 Fax: 01283 510 873 ESSEX BATHROOMS: Winds Up Business & Appoints Joint Liquidators --------------------------------------------------------------- Essex Bathrooms Limited is winding up its operations after creditors moved to liquidate the company's assets during an extraordinary general meeting on March 29. Richard Andrew Segal and Paul Michael Davis of Begbies Traynor (South) LLP, were appointed Joint Liquidators. The company can be reached at: Essex Bathrooms Limited 8 Bernard Road Romford Essex RM7 0HX United Kingdom Tel: 01708 752 909 FABTECH ENGINEERING: Creditors' Meeting Slated for June 19 ---------------------------------------------------------- Creditors of Fabtech Engineering (U.K.) Limited (Company Number 03814522) will meet at 10:00 noon, on June 19 at: The Chasley Hotel Queen Street Wakefield WF1 1LX United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon, on June 16 at: Matthew Colin Bowker and David Anthony Willis Joint Administrators Jackson Jolliffe Cork 33 George Street, Wakefield WF1 1LX United Kingdom Tel: 01904 652100 Fax: 01904 635349 Jackson Jolliffe Cork -- http://www.jjcork.co.uk/-- was established in 1998. It has offices in Doncaster, Harrogate, Hull, Middlesbrough, Wakefield and York. The firm is engaged exclusively in business recovery and insolvency work and comprises certified and chartered accountants, licensed insolvency practitioners and business turnaround consultants, many having joined us from senior positions within National firms. FCE BANK: Fitch Downgrades Issuer Default Rating to B+ ------------------------------------------------------ Fitch downgraded the following long-term ratings for both Ford Motor Company and Ford Motor Credit Company with Negative Rating Outlook, and assigned the following Recovery Ratings: Ford -- Issuer Default Rating to B+ from BB; and -- Senior unsecured to BB-/RR3 from BB. FMCC -- Issuer Default Rating to B+ from BB. Fitch also affirms FMCC's senior unsecured debt at BB/RR2. Ford's newly assigned RR3 rating indicates average recovery prospects of 50-70% in the event that further deterioration in operating results eventually results in a filing for bankruptcy. FMCC's new RR2 rating indicates superior recovery prospects of 70-90%. The downgrade and Negative Outlook reflect Fitch's expectation of persistent revenue deterioration through at least 2006 due to continued market share losses, deteriorating mix, price competition, a lack of key product introductions, coupled with lack of tangible progress in reducing its cost structure. Despite an aggressive spending plan in 2006 to reduce its fixed cost structure, persistently high commodity prices, and financial and operational stresses at Ford's supply base are likely to more than offset any progress in 2006, and Fitch expects that Ford will see little relief in either cost category over the near term. The unfavorable trend of revenues and key cost factors is expected to result in accelerated negative cash flows through 2006 and into 2007. Ford will be challenged to reverse negative cash flows given a relatively sparse product pipeline over the next several years. Ford has taken a number of steps to address its fixed cost structure through employee buyouts, the recent health care agreement with the UAW and certain plant closures, although cash savings are likely to be insufficient to reverse negative cash flows prior to the 2007 UAW contract re-opening. Ford's latest restructuring program extends through the 2012, with the bulk of facility closures not commencing until after 2007, limiting Ford's ability to achieve near-term cost reductions. The success of the restructuring program will, to a large degree, depend on the success of the OEM's ability to negotiate further benefit reductions and operational flexibility in the 2007 contract. Ford's U.S. supplier base remains fragile throughout the supply chain, which could result in higher direct costs, manufacturing inefficiencies or production interruptions at Ford. Although Ford has benefited from an improved passenger car portfolio and the strong market position of its core F-Series products, this has been insufficient to outpace the decline in midsize and large SUV sales, including the Explorer, which have historically been strong profit contributors. Ford also faces intensifying competition in the large pickup market from a refreshed GM lineup and the opening of a new Toyota plant later this year. Ford Credit, a strong provider of dividends over the past several years, is expected to demonstrate significantly reduced profitability and dividends going forward, resulting from a smaller portfolio, a reduced benefit from lower loss accruals, and higher interest rates. Fitch also recognizes that Ford has shown improvement and profitability in its operations outside the United States, including Europe, its Premium Automotive Group, Latin America, and in its Mazda holdings. Although Jaguar operations remain a significant drain on P.A.G., the turnaround in the consolidated group over the past several years has been a positive to this point. Ford's RR3 Recovery Rating is based on an analysis of a potentially restructured Ford. Fitch's restructuring analysis incorporates a Chapter 11 filing of North American operations and would result in significant claims from working capital liabilities in addition to unsecured debtholders. Fitch also factored in liabilities related to on and off-balance sheet liabilities that could augment claims. Fitch did not factor in claims related to potential termination or alteration of legacy OPEB and pension costs. In the event of a filing, Fitch anticipates that Ford would not attempt to terminate its pension plans. Changes to OPEB liabilities, as with the recent agreement between Ford and the UAW, would have to be negotiated as part of a new labor agreement in the event of a Chapter 11 filing, without resulting in claims against the estate. The restructured enterprise value includes reduced production volumes and sufficient cost reductions to achieve a 3% operating margin in North America, plus asset values associated with international operations and its 100% ownership of Ford Credit. Liquidity remains adequate to finance restructuring requirements and negative cash flows through the reopening of the UAW contract. Cash and short-term VEBA at March 31, 2006 totaled US$23.7 billion, supplemented by long-term VEBA that could be utilized to fund health care expenditures over the near term. Over the past several years, with the assistance of dividends from Ford Credit and the sale of Hertz, Ford has been able to maintain a strong level of liquidity, and has modestly reduced debt. Debt maturities remain very extended. Legacy liabilities are expected to decline in 2006 due to Ford's recent health care agreement with the UAW and a re-measurement of health care and pension liabilities due to higher interest rates. However, potential pension legislation could accelerate funding requirements. FMCC's IDR remains linked to those of Ford due to the close business relationship between them. Fitch expects FMCC's earnings and dividends to decline noticeably in 2006 primarily due to lower receivables outstanding and margins. FMCC has benefited from lower provision expense, as the quality of its receivables pool has increased, the pace of these improvements is expected to slow going forward. Fitch believes that FMCC maintains a good degree of liquidity relative to its rating. Supporting this is FMCC's ability to sell or securitize a broad spectrum of assets such as retail finance, lease, and wholesale loans. Moreover, FMCC continues to hold high cash balances and its assets mature faster than its debt. The RR2 Recovery Rating indicates superior recovery prospects on unsecured debt resulting from solid unencumbered asset protection, although discounted to account for stressed performance and/or disposition. Fitch downgraded these ratings with a Negative Rating Outlook: Ford Motor Co. -- Issuer Default Rating to B+ from BB; -- Senior debt to BB-/RR3 from BB. Ford Motor Credit Co. -- Issuer Default Rating to B+ from BB. FCE Bank Plc -- Issuer Default Rating to B+ from BB. Ford Capital B.V. -- Issuer Default Rating to B+ from BB. Ford Credit Canada Ltd. -- Issuer Default Rating to B+ from BB. Ford Motor Capital Trust II -- Preferred stock to B-/RR6 from B+. Ford Holdings, Inc. -- Issuer Default Rating to B+ from BB; -- Senior debt to BB-/RR3 from BB. Ford Motor Co. of Australia -- Issuer Default Rating to B+ from BB; -- Senior debt to BB-/RR3 from BB. Ford Credit Australia Ltd. -- Issuer Default Rating to B+ from BB. PRIMUS Financial Services (Japan) -- Issuer Default Rating to B+ from BB. Ford Credit de Mexico, S.A. de C.V. -- Issuer Default Rating to B+ from BB. Ford Motor Credit Co. of New Zealand -- Issuer Default Rating to B+ from BB. Ford Credit Co S.A. de CV -- Issuer Default Rating to B+ from BB. Fitch has also taken these rating actions: Ford Motor Co. -- Short-term Issuer Default Rating, rated B, is withdrawn. Ford Motor Credit Co. -- Short-term Issuer Default Rating affirmed at B; -- Commercial paper affirmed at B; -- Senior debt affirmed at BB/RR2. FCE Bank Plc -- Senior Unsecured affirmed at BB/RR2. -- Short-term Issuer Default Rating affirmed at B; -- Commercial Paper affirmed at B; and -- Short-term Deposits affirmed at B; Ford Capital B.V. -- Senior Unsecured affirmed at BB/RR2. Ford Credit Canada -- Short-term Issuer Default Rating affirmed at B; -- Commercial Paper affirmed at B; -- Senior Unsecured affirmed at BB/RR2. Ford Credit Australia Ltd. -- Senior Unsecured affirmed at BB/RR2; -- Short-Term IDR affirmed at B; -- Commercial Paper affirmed at B. PRIMUS Financial Services (Japan) -- Senior Unsecured affirmed at BB/RR2; -- Short-term IDR affirmed at B. Ford Motor Credit Co. of New Zealand -- Senior Unsecured affirmed at BB/RR2; -- Short-Term IDR affirmed at B; -- Commercial Paper affirmed at B. Ford Credit Co. S.A. de C.V. -- Senior Unsecured affirmed at BB/RR2. Fitch's Recovery Ratings, introduced in 2005, are a relative indicator of creditor recovery on a given obligation in the event of a default. LUCITE INTERNATIONAL: Moody's Places Ratings Under Review --------------------------------------------------------- Moody's Investors Service placed all ratings of Lucite International Group Holdings Ltd. and its subsidiaries under review for possible downgrade following the group's announcement of a possible refinancing. The recent financial performance of Lucite International has been robust which has facilitated the Company to strengthen its balance sheet and de-leverage from the peak level of approximately x6.2 on a Total Debt / EBITDA basis in 2001 to approximately x3.2 at the end of 2005. The performance of the company has provided some additional financial flexibility to accommodate a possible refinancing of the balance sheet. At this juncture the full details of any potential refinancing need to be assessed and the review is prompted by the likelihood that Lucite's leverage may increase as a result. Moody's review will consider the current operating performance of Lucite in the context of any proposed changes to the capital structure and debt metrics post refinancing. Moody's will also review terms and conditions of any proposed facilities and debt securities. The rating agency will also consider the likelihood and potential timing of any cash outflow related to the recently announced EUR25 million EU competition related fine. Moody's review will focus on: -- the debt level of the group post refinancing and its capital structure; -- the shareholders' plans and business strategy for the group after the refinancing; -- the group's operating and financial outlook for the medium term; and -- the relative ranking of any proposed new facilities and securities. Ratings affected: -- the Ba3 corporate family rating at Lucite International Group Holdings Ltd.; and -- the B2 rating on senior notes at Lucite International Finance plc. Should any rated securities be fully redeemed Moody's would withdraw the relevant rating on the securities. Lucite is the leading global producer of methyl methacrylate and downstream products with over 1000 kte of total production capacity. Lucite reported 2005 Net Revenues of GBP780 million and EBITDA of GBP112 million (GBP203 million and EBITDA of GBP21 million for the 1st quarter of 2006). MALLINGSON INTERNATIONAL: Taps Hurst Morrison as Administrators --------------------------------------------------------------- Paul W. Ellison and Gareth W. Roberts of Hurst Morrison Thomson CR LLP were appointed joint administrators of Mallingson International Limited (Company Number 02465231) on May 19. The administrators can be reached at: Hurst Morrison Thomson Corporate Recovery LLP 5 Fairmile Henley on Thames Oxfordshire RG9 2JR United Kingdom Tel: +44 (0) 1491 579866 Fax: +44 (0) 1491 573397 E-mail: hmt@hmtgroup.co.uk Headquartered in Ware, United Kingdom, Mallingson International Limited, formerly known as Hadham Water Limited produces mineral water and soft drinks. OPTICAL NETWORKS: Appoints Administrators from Portland Business ---------------------------------------------------------------- James Richard Tickell and Carl Derek Faulds of Portland Business & Financial Solutions Ltd. were appointed joint administrators of Optical Networks Limited (Company Number 3189467) on May 19. The administrators can be reached 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 james.tickell@portland-solutions.co.uk Optical Networks Limited can be reached at: 16 East Links Tollgate Chandler's Ford Eastleigh Hampshire SO53 3TG United Kingdom Tel: 023 8065 0555 OVENDEN COLBERT: Creditors' Meeting Slated for June 14 ------------------------------------------------------ Creditors of Ovenden Colbert Printers Limited (Company Number 02437185) will meet at 11:00 a.m., on June 14 at: Thistle Hotel Euston 43 Cardington Street London NW1 2LP United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon, on June 13 at: Andrew Lawrence Hosking and Anthony Norman Flynn Joint Administrators Grant Thornton U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP United Kingdom Tel: 020 7383 5100 Fax: 020 7383 4715 Headquartered in London, Grant Thornton UK LLP -- http://www.grant-thornton.co.uk/-- is the UK member of Grant Thornton International, one of the world's leading international organizations of independently owned and managed accounting and consulting firms. PORTMAN RUBBER: Claims Filing Period Ends June 30 ------------------------------------------------- Creditors of Portman Rubber Limited passed a resolution to wind up the company on Mach 30. Appointed Liquidator, Philip John Gorman, of Hazlewoods LLP, requires 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 30. The company can be reached at: Portman Rubber Limited Bulwark Chepstow Gwent NP165QZ United Kingdom Tel: 01291 623 786 Fax: 01291 621 905 RANK GROUP: Cancels 1,750,000 Shares in Buy Back Program -------------------------------------------------------- The Rank Group Plc bought back 1,750,000 ordinary shares of 10 pence in the Company on June 6 for cancellation at an average price of 200.807143 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. STORM UNIVERSAL: Appoints Rothman Pantall as Administrators ----------------------------------------------------------- R. D. Smailes and S. B. Ryman of Rothman Pantall & Co were appointed joint administrators of Storm Universal Printing Limited (Company Number 04148355) on May 17. Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was established in 1955 as a general accountancy practice, and has grown to its present 18 offices across the South of England. It is one of the largest independent firms of Chartered Accountants in the region, and rank in the top 40 in the United Kingdom. Storm Universal Printing Limited can be contacted at: 1423B London Road London SW16 4AH United Kingdom TORFAEN COMMUNITY: Appoints Jones Giles as Administrators --------------------------------------------------------- Richard I. B. Jones and Melanie R. Giles of Jones Giles were appointed joint administrators of Torfaen Community Recycling (Company Number 4409619) on May 18. The administrators can be contacted at: Jones Giles Unit 8 Williams Court Trade Street Cardiff South Glamorgan CF10 5DQ United Kingdom Tel: 029 2034 6530 Torfaen Community Recycling can be reached at: Unit 10 Ty Coch Distribution Center Ty Coch Way Cwmbran, Gwent NP44 7HF United Kingdom Tel: 01633 860086 WINDSOR RACECOURSE: Names Administrators from Begbies Traynor ------------------------------------------------------------- Timothy John Edward Dolder and Paul Michael Davis of Begbies Traynor (South) LLP were appointed joint administrators of Windsor Racecourse Park Homes Limited (Company Number 2693976) on May 16. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Windsor Racecourse Park Homes Limited can be reached at: Racecourse Yatch Basin Maidenhead Road Windsor Berkshire SL4 5HT United Kingdom Tel: 01753 496960 ********* 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, Julybien Atadero, Carmel Paderog, and Joy Agravante, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *