/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060613.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 Tuesday, June 13, 2006, Vol. 7, No. 116 Headlines A U S T R I A HYPO ALPE: Moody's Cuts Financial Strength Rating to D- OSWALD SPIEHS: Awaits Final Distribution & Closing Protocol PONTONI POST: Court to Close Bankruptcy Case After Final Payment RECYCLING-TRANS: ??rneuburg Court Closes Bankruptcy Proceedings TALHA: Court to Close Bankruptcy Case Following Distribution TEAM: Court Closes Bankruptcy Case After Claims Payment F I N L A N D SEA FORT: Standard & Poor's Rates EUR15-Mln Class E Notes at BB F R A N C E ALSTOM SA: Wins EUR92.5-Mln Supply Pact From Dominican Republic G E R M A N Y ABS ABDICHTUNGSTECHNIK: Claims Filing Period Ends June 15 AFFLERBACH U. NASSAUER: Claims Filing Period Ends June 30 ART CONSULT: Claims Registration Ends June 14 BAVERO GMBH: Claims Registration Ends June 30 BRENNTAG AG: Names Bill Fidler President of North America Unit CAMMAROTA GMBH: Claims Registration Ends June 20 DIADEM IMMOBILIEN: Claims Filing Period Ends June 29 DUERR & FEIL: Claims Registration Ends June 30 FRESENIUS AG: Fitch Rates Senior Unsecured Debt at BB GOLF KOMPAKT: Claims Filing Period Ends June 15 MASSIVHAUSBAU HERMANN: Claims Filing Period Ends June 26 PROSIEBENSAT.1 MEDIA: Moody's Changes Rating Outlook to Stable SEN KUAFOR: Claims Registration Ends June 23 I R E L A N D ELAN CORP: Hikes Tysabri Price After Drug Reintroduction I T A L Y BANCA NAZIONALE: BNP Paribas Offers to Buy Remaining BNL Shares K A Z A K H S T A N ALTYN ARKA: Almaty Court Opens Bankruptcy Proceedings GAZIZ SU: Kyzylorda Court Opens Bankruptcy Proceedings JASULAN M.D.: Kyzylorda Court Begins Bankruptcy Proceedings KAMKOR: East Kazakhstan Court Begins Bankruptcy Proceedings KAZTORGSOUZ: East Kazakhstan Court Starts Bankruptcy Process NEW FAST: Creditors Must File Claims by June 23 TUTAS: Almaty Court Commences Bankruptcy Proceedings UNITED LEATHER: Proof of Claim Deadline Slated for June 23 VITAL: Kyzylorda Court Begins Bankruptcy Process L A T V I A MAZEIKIU NAFTA: Competition Council Ends Probe on Latvian Unit L I T H U A N I A MAZEIKIU NAFTA: Competition Council Ends Probe on Latvian Unit L U X E M B O U R G ARES FINANCE: S&P Assigns BB Rating to Class E Notes R U S S I A FINCOR-AUDIT: Court Starts Bankruptcy Supervision ISKRA: Court Names A. Vampilov as Insolvency Manager KRASNOARMEYSKIY: Court Names M. Musaelyan as Insolvency Manager MONCHEGORSKAYA FURNITURE: Names A. Arendachuk to Manage Assets OAO ROSNEFT: Shareholders Approve 2005 Annual Report & Dividend OAO ROSNEFT: Hikes Charter Capital with 7.4-Bln Equity Placement PROKOPYEVSKIY METAL: Court Starts Bankruptcy Supervision SEVERSTAL: Arcelor Recommends Severstal Bid Over Mittal's SORT-SEM-OVOSH: Bankruptcy Hearing Slated for July 27 VOLOSHSKAYA TIMBER: Arkhangelsk Court Taps Insolvency Manager U N I T E D K I N G D O M APW ENCLOSURE: Creditors' Meeting Slated for June 20 CABLE & WIRELESS: Terminates US SEC Registration CABLE & WIRELESS: Revises Strategy on Local Loop Capability JETCREST LIMITED: Meeting of Creditors Set for June 19 MISYS PLC: Explores Possibility of Offer PHOENIX 2002-1: Fitch Affirms US$86.6-Mln Class C Notes at BB- PITCHMASTIC PMB: Lloyds TSB Appoints Ernst & Young Receivers PROSPECT NUMBER: Creditors' Meeting Slated for June 14 REGAL ENGINEERS: Meeting of Creditors Set for June 15 RETRO HOUSE: Creditors' Meeting Slated for June 16 SEA CONTAINERS: Further Delays 10-K Filing & Remains on Default SEA CONTAINERS: Agrees to Pay US$16.3 Million to GE SeaCo SEA CONTAINERS: Selling Silja Oy to Tallink Group for US$594 Mln SOUTHPORT 2000: Hires Joint Administrators from Begbies Traynor SPECIAL THOUGHTS: Brings In Administrators from F A Simms STANLEY PROPERTY: Northern Rock Taps Deloitte & Touche Receivers STAPEMILL LIMITED: Taps Administrators from Jacksons Jolliffe TITAN EUROPE: S& P Assigns Ratings to EUR943.751 Million Notes * Large Companies with Insolvent Balance Sheets ********* ============= A U S T R I A ============= HYPO ALPE: Moody's Cuts Financial Strength Rating to D- ------------------------------------------------------- Moody's Investors Service downgraded the bank financial strength rating (FSR) of Hypo Alpe-Adria-Bank International AG to D- from C+ and the bank's preferred stock to Baa2 from A3. oth these ratings were maintained on review for possible further downgrade. All other ratings, including HAA's senior ratings of Aa2/P-1, were affirmed and continue to carry a stable outlook. Moody's said the rating actions were prompted by HAA's admission that its treasury activities in 2004 resulted in substantial losses. In an unusual move, HAA's auditor has revoked its certification of the bank's 2004 financial statements and, at the initiative of the Austrian regulator, HAA is shortly expected to publish restated 2004 figures, along with its 2005 results. Moody's understands that the revised audited 2004 financial statements will show a substantial net loss for the year and as a result the bank's capital levels will have fallen below minimum capital requirements in Austria. HAA will be required to pay a penalty for this breach in capital adequacy ratios, although Moody's understands that this amount will not be significant and that provisions for it have been made in the financial statement for 2005. Moody's commented that in its opinion, these events have revealed not only weaknesses in the bank's risk management systems and risk culture at the time the bank entered into the high-risk treasury transactions but also a lack of transparency and rigour in the bank's handling of developments once the details of the transactions became known. The rating agency added that, given HAA's strong expansion into countries with less developed legal and risk infrastructures than Austria (primarily in former Yugoslavia but also in Bulgaria and Romania), it is of paramount importance to have a risk culture and risk management systems in place that are fully equipped to handle challenges that might arise from lending activities in these markets. Commenting on the affirmation of HAA's long-and short term debt and deposit ratings, Moody's said that these obligations benefit from ongoing support by the State of Carinthia, as evidenced through an explicit deficiency guarantee. With reference to the bank's preference shares, which qualify as Tier 1 capital, Moody's said that these do not benefit from this explicit support and therefore their ratings have been downgraded today to Baa2 from A3. The rating are driven by the bank's FSR as well as external support elements -- particularly the strong implicit support by its majority shareholder, the State of Carinthia, and assumed system support due to HAA's significance for the banking market in its core geographic area. Moody's ongoing review of the bank's FSR and hybrid instrument debt ratings will focus on the repercussions that the losses in 2004 and the surrounding circumstances will have on the bank's franchise and standing in the financial markets, as well as risk management-related issues and corporate governance practices that HAA needs to address appropriately to exclude any future critical events. Moody's added that further negative control and/or governance issues would likely to lead to further downgrade in the bank's FSR and the rating on the preference shares. Ratings downgraded and remain on review for possible further downgrade: -- Hypo Alpe-Adria-Bank International Bank AG bank C+ financial strength rating to D-; -- Hypo Alpe-Adria (Jersey) II Limited A3 debt rating to Baa2; and -- Hypo Alpe-Adria (Jersey) Limited A3 debt rating to Baa2. Ratings affirmed with a stable outlook: -- Hypo Alpe-Adria-Bank International Bank AG long-term and short-term deposit ratings at Aa2 and Prime 1, respectively; -- senior long- and short-term debt at Aa2 and subordinated debt at Aa3; and -- its public sector Pfandbriefe at Aaa. Headquartered in Klagenfurt, Austria, Hypo Alpe-Adria-Bank International AG reported total consolidated assets of EUR18 billion as of Dec. 31, 2004. OSWALD SPIEHS: Awaits Final Distribution & Closing Protocol ----------------------------------------------------------- The Court of Vienna will close the bankruptcy proceedings of LLC Oswald Spiehs (FN 125735f) following the final distribution to creditors. Creditors will receive partial payment on account of their claims once the final allocation document filed by the court- appointed property manager, Walter Kainz, will be approved. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 28, 2004 (Bankr. Case No6 S 83/04d). Eva Wexberg represented Mr. Kainz in the bankruptcy proceedings. PONTONI POST: Court to Close Bankruptcy Case After Final Payment ---------------------------------------------------------------- The Court of Vienna will close the bankruptcy case of KEG Pontoni Post- und Paketservice (FN 219043y) after the Debtor's final distribution to creditors. Creditors will receive partial payment on account of their claims. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 25, 2005 (Bankr. Case No. 6 S 131/05i). Andrea Prochaska served as the court-appointed property manager for the bankrupt estate. RECYCLING-TRANS: ??rneuburg Court Closes Bankruptcy Proceedings --------------------------------------------------------------- Land Court of ??rneuburg entered an order closing the bankruptcy case of KEG Recycling-Trans Peter Bauch (FN 142290 a) on May 5. Creditors will recover a total of 22.21% on account of their claims in installments: -- 12.21% approved quota on Nov. 30, 2005; -- 10% additional quota that they will receive by installment; * 2% in cash within 14 days after closing the case; * 2% until June 1, 2006; * 2% until Oct. 1, 2006; * 2% until Dec. 1, 2006; and * 2% until March 1, 2007. The last day for final claims distribution is set for March 1, 2007. Headquartered in Gotzendorf, Austria, the Debtor declared bankruptcy on Sept. 9, 2002 (Bankr. Case No. 36 S 63/02k). Viktor Igali-Igallffy served as the court-appointed property manager for the bankrupt estate. TALHA: Court to Close Bankruptcy Case Following Distribution ------------------------------------------------------------ The Trade Court of Vienna will close the bankruptcy case of Trade LLC Talha (FN 207631s) following the Debtor's final distribution to its creditors. Creditors will recover 4.651757% of their claim under the approved final allocation document filed by court-appointed property manager Andrea Eisner. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 28, 2005 (Bankr. Case No. 28 S 67/05i). TEAM: Court Closes Bankruptcy Case After Claims Payment ------------------------------------------------------- The Land Court of Korneuburg entered an order closing the bankruptcy case of LLC Team (FN 214418x) on May 5 after the Debtor's final distribution to creditors. Creditors owed money by the Debtor recovered 7.91% on account of their claim. Headquartered in Gerasdorf bei Vienna, Austria, the Debtor declared bankruptcy on Nov. 23, 2004 (Bankr. Case No. 36 S 102/04y). Georg Freimueller served as the court-appointed property manager for the bankrupt estate. ============= F I N L A N D ============= SEA FORT: Standard & Poor's Rates EUR15-Mln Class E Notes at BB --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR145 million secured floating-rate credit-linked notes to be issued by SEA FORT Securities PLC. The transaction is a partially funded synthetic balance sheet CLO, referencing a EUR1 billion portfolio of loans granted by Sampo Bank PLC (Sampo) to Finnish small, medium, and large corporates. The transaction aims to provide regulatory and economic capital relief to Sampo. At closing, the issuer will enter into a portfolio CDS with Sampo. Under the CDS, the issuer will sell credit protection to Sampo on a portfolio of euro-denominated corporate loans to borrowers in Finland. SEA FORT Securities will issue secured floating-rate notes. Ultimate payment of principal to the noteholders will be linked to the reference portfolio's inherent credit risk, and so will depend on the borrowers' performance under their respective loan agreements. The issuer's obligations toward the noteholders will be secured primarily by investing note issuance proceeds in a 'AAA' rated covered bond issued by Dexia Municipal Agency under its European MTN program. At closing, the issuer and Sampo will enter into a put option agreement, under which Sampo will grant to the issuer the right to sell the covered bonds at par. Credit support for each class of notes will be provided by subordination and an excess spread of 10 bps on the reference portfolio nominal amount. "This is the first CLO of small, medium, and large corporates from Sampo," said Standard & Poor's credit analyst Antonio Farina. "Standard & Poor's conducted an actuarial analysis on historical data provided by the originator to assess the credit risk of the pool," Mr. Farina continued. "With the historical data provided by the originator, Standard & Poor's is able to determine a default probability and a recovery rate at each rating level. The product of these two variables gives an estimate of the required loss protection during the term of the CDS agreement." Standard & Poor's gave credit only to the credit enhancement provided by the subordination of the junior notes to the senior notes. Ratings List SEA FORT Securities PLC EUR145 Million Secured Floating-Rate Credit-Linked Notes Class Prelim. Prelim. ----- rating amount (Mil. EUR) ------ ------ A AAA 41.5 B AA 22.0 C A 14.5 D BBB 14.5 E BB 15.0 F NR 37.5 NR-Not rated. N/A-Not applicable. =========== F R A N C E =========== ALSTOM SA: Wins EUR92.5-Mln Supply Pact From Dominican Republic --------------------------------------------------------------- OPRET, the governmental authority in charge of the reorganization of public transport in the Dominican Republic, has chosen Alstom S.A. for the delivery of 19 Metropolis trainsets worth EUR92.5 million for the city of Santo Domingo. This order is part of the government's development programme to meet the increasing demand for public transport and reduce road traffic congestion in Santo Domingo. The trainsets will run on the first line of the capital's new metro system, which is currently under construction, and will connect Villa Mella (north of the city) with La Feria (south of the city). Alstom will supply a total of 19 trainsets, comprising of three cars each. The first deliveries are scheduled for the opening of metro line 1 in early 2008. The metro is expected to carry 200,000 passengers every day. Three ALSTOM sites will be involved in this project: -- ALSTOM's site in Charleroi, Belgium, will be in charge of the manufacture and integration of the traction systems. -- ALSTOM's site in Le Creusot, France, will provide the bogies. -- ALSTOM's site in Barcelona, Spain, will be responsible for the car manufacture and assembly. Since the development of the Metropolis range in 1997, ALSTOM has won contracts in cities around the world. To date, ALSTOM has sold more than 1700 Metropolis cars to cities such as Barcelona, Warsaw, Singapore, Rio de Janeiro, Sao Paulo, Buenos Aires and Santiago de Chile. About Alstom Headquartered in Paris, France, Alstom S.A. -- http://www.alstom.com/-- is a leading maker of power-generation systems and constructs power plants, rail equipment, luxury passenger ships, naval vessels, and natural gas tankers. It also produces electrical drives, motors, and generators. The group generates EUR13 billion in annual revenues and employs more than 70,000 people worldwide. The group posted EUR865 million in net loss and EUR1.4 billion in net debt for the financial year 2004/2005. ============= G E R M A N Y ============= ABS ABDICHTUNGSTECHNIK: Claims Filing Period Ends June 15 --------------------------------------------------------- Creditors of ABS Abdichtungstechnik GmbH have until June 15 to register their claims with court-appointed provisional administrator Henning Schorisch. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 25, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Hall D132 Olbrichtplatz 1 01099 Dresden, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Dresden opened bankruptcy proceedings against ABS Abdichtungstechnik GmbH on May 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ABS Abdichtungstechnik GmbH Bockmuehlenstrasse 31 01848 Hohnstein/OT Cunnersdorf, Germany The administrator can be contacted at: Henning Schorisch Wasastrasse 15 01219 Dresden, Germany Web: http://www.hww-kanzlei.de/ AFFLERBACH U. NASSAUER: Claims Filing Period Ends June 30 --------------------------------------------------------- Creditors of Afflerbach u. Nassauer GmbH have until June 30 to register their claims with court-appointed provisional administrator Sabine Feuerborn. Creditors and other interested parties are encouraged to attend the meeting at 2:45 p.m. on July 19, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Siegen Hall 009 Ground Floor Berliner Road 21-22 57072 Siegen, 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 Siegen opened bankruptcy proceedings against Afflerbach u. Nassauer GmbH on May 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Afflerbach u. Nassauer GmbH Attn: Martin Afflerbach, Manager Schuerfweg 14 57080 Siegen, Germany The administrator can be contacted at: Dr. Sabine Feuerborn Else-Lang-Str. 1 50858 Cologne, Germany Tel: (0221) 2855470 Fax: (0221) 28554729 ART CONSULT: Claims Registration Ends June 14 --------------------------------------------- Creditors of Art Consult Kunsthandel GmbH have until June 14 to register their claims with court-appointed provisional administrator Ottmar Hermann. Creditors and other interested parties are encouraged to attend the meeting at 3:10 p.m. on July 13, 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 Konigstein/Ts. Area 106, Burgweg 9 61462 Konigstein/Ts., 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 Konigstein/Ts. opened bankruptcy proceedings against Art Consult Kunsthandel GmbH on May 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Art Consult Kunsthandel GmbH Wiesbadener Way 2 65812 Bad Soden Attn: Mario Paul, Manager Enggasse 3 65812 Bad Soden, Germany The administrator can be contacted at: Ottmar Hermann Bleichstrasse 2-4 60313 Frankfurt/Main, Germany Tel: 069/913092-0 Fax: 069/91309230 BAVERO GMBH: Claims Registration Ends June 30 --------------------------------------------- Creditors of BAVERO GmbH & Co. KG have until June 30 to register their claims with court-appointed provisional administrator Ralf Bornemann. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Aug. 4, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall W126 1 Stock William Route 21 53111 Bonn, 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 Bonn opened bankruptcy proceedings against BAVERO GmbH & Co. KG on May 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: BAVERO GmbH & Co. KG Dollendorfer Str. 1 - 3 53639 Konigswinter, Germany The administrator can be contacted at: Dr. Ralf Bornemann Godesberger Avenue 125-127 53175 Bonn, Germany Tel: 0228-8100056 Fax: 0228-81000820 BRENNTAG AG: Names Bill Fidler President of North America Unit -------------------------------------------------------------- Brenntag AG disclosed that William A. Fidler, former Executive Vice President Brenntag North America Inc., has been appointed to President of Brenntag North America, Inc., effective June 5, 2006. Mr. Fidler succeeds Stephen R. Clark, who has been promoted to Chief Executive Officer of Brenntag effective June 1, 2006. Mr. Fidler, 58, started in 1970 as Sales Representative at Textile Chemical Co., Reading (PA) and has developed excellent leadership skills and industry knowledge within the chemical distribution market since then. In 1998, he became Executive Vice President of Brenntag North America, Inc. "Bill has achieved an outstanding record of success as Executive Vice President Brenntag North America Inc. over the past years," Brenntag CEO Stephen R. Clark said. "We are fortunate to be able to benefit from his arsenal of skills as we continue to execute our existing strategy." In 2005, the company recorded external sales of EUR5.3 billion (US$6.6 billion). Earnings before interest, taxes, depreciation and amortization (EBITDA operating) totaled EUR301 million (US$ 374 million). Brenntag operates more than 300 locations with 9,200 people in 50 countries. Underlying the company's strong position in world markets, Brenntag is committed to providing value to its customers and suppliers through superior supply chain logistics, single sourcing and value-added- services. To its suppliers and customers alike, Brenntag offers, both in Europe and the Americas, an unrivalled, extensive and state-of-the-art distribution network for industrial and specialty chemicals. Headquartered in Mulheim, Germany, Brenntag AG -- http://www.brenntag.com/-- sells and distributes industrial and specialty chemicals. The Company also develops and prepares specific chemical compounds and offers analysis services. Its customers include oil and gas, paint, cosmetic, pharmaceutical, and water treatment companies. * * * Brenntag AG's bank loan debt carries Moody's Investors Service's B2 rating while it carries a B+ issuer credit rating from Standard & Poor's. CAMMAROTA GMBH: Claims Registration Ends June 20 ------------------------------------------------ Creditors of Cammarota GmbH & Co. KG have until June 20 to register their claims with court-appointed provisional administrator Henning Dohrmann. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on July 7, 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 Cologne Hall 142 1st Floor Luxemburger Road 101 50939 Cologne, 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 Cologne opened bankruptcy proceedings against Cammarota GmbH & Co. KG on May 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Cammarota GmbH & Co. KG Heinrich-Schicht-Str. 29 a 42499 Hueckeswagen, Germany The administrator can be contacted at: Dr. Henning Dohrmann Moltkestr. 12 51643 Gummersbach, Germany Tel: 02261/9279-0 Fax: +49226192799 DIADEM IMMOBILIEN: Claims Filing Period Ends June 29 ---------------------------------------------------- Creditors of Diadem Immobilien GmbH have until June 29 to register their claims with court-appointed provisional administrator Hartwig Albers. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Oct. 5, 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 Charlottenburg Hall 218 II Stock District Court Place 1 14057 Berlin, 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 Charlottenburg opened bankruptcy proceedings against Diadem Immobilien GmbH on May 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Diadem Immobilien GmbH Kaiserdamm 100 14057 Berlin, Germany The administrator can be contacted at: Hartwig Albers Luetzowstr. 100 10785 Berlin, Germany DUERR & FEIL: Claims Registration Ends June 30 ---------------------------------------------- Creditors of Duerr & Feil GbR Betriebsgrundstueck have until June 30 to register their claims with court-appointed provisional administrator Fritz Zanker. 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 Aalen Hall 0.11 Ground Floor Stuttgarter Strasse 7 73430 Aalen, 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 Aalen opened bankruptcy proceedings against Duerr & Feil GbR Betriebsgrundstueck on May 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Duerr & Feil GbR Betriebsgrundstueck Attn: Sigurd Duerr, Otto and Karl-Heinz Feil, Managers Jagst 38 73479 Ellwangen, Germany The administrator can be contacted at: Fritz Zanker Albstr. 14 70597 Stuttgart, Germany Tel: 0711/7696880 Fax: 0711/76968850 FRESENIUS AG: Fitch Rates Senior Unsecured Debt at BB ----------------------------------------------------- Fitch Ratings assigned ratings to entities in the Germany-based healthcare group, Fresenius, and their respective debt instruments: Fresenius AG: -- senior unsecured debt rating BB; -- Issuer Default rating BB/Stable Outlook; and -- Short-term rating B. Fresenius Finance B.V.: -- senior unsecured debt rating for the guaranteed senior notes BB. Fresenius Medical Care AG & CO. KGaA: -- senior unsecured debt rating BB; -- IDR BB/Stable Outlook; and -- Short-term rating B. Fresenius Medical Care Capital Trusts: -- senior subordinated rating for the guaranteed trust preferred securities B+. The ratings reflect Fresenius' excellent market positioning in the non-cyclical, steady growth dialysis market, its vertical integration, and relatively predictable cash flow generation. The ratings are also supported by the company's good geographical diversification and management's commitment to reduce leverage significantly by 2008. Conversely, the ratings are constrained by Fresenius' over- reliance on just one disease area, its exposure to private insurers' and governments' reimbursement policies, high leverage and integration risk following the recent acquisition of Renal Care Group. As the largest globally operating dialysis service and product provider Fresenius Medical Care benefits from a broad network of dialysis clinics, which enables physicians to refer their patients to conveniently located clinics, as patients generally seek treatment dialysis center near their homes and their nephrologist practices. Cost advantages compared to peers, such as DaVita, are derived from the company's vertical integration as the company also develops and manufactures hemodialysis and peritoneal dialysis machines together with dialysers and filters to clean a patient's blood. Fresenius is over-reliant on dialysis as 71% of group EBITDA is derived from this segment. This is somewhat mitigated by its geographical diversification, thereby reducing the company's reliance on single health care systems. Such a concentrated exposure to one treatment area exposes the group to potential substitution and technology changes. Fresenius' EBITDA margin has remained fairly stable at above 16% since 2002, with Fresenius Medical Care's EBITDA margins between 17%-18% since 2002 and Pro Serve's margins between 6%-7% during this period. Its Kabi business, however, has consistently improved its EBITDA margin from 10.7% in 2001 to 18.9% in 2005. After completion of the recent Renal Care and Helios acquisition, pro forma lease-adjusted net debt/EBITDAR is 4.7x at the consolidated group level. The group is, however, committed to reduce net debt/ EBITDA to below 3x by 2008. At YE05, operating EBITDAR/net interest plus rents stood at 3.1x, although this would weaken to 2.5x pro-forma. Fresenius AG generated in FY05 only 37% of the group's cash flow from its operations, which means that the group's debt service depends to some degree on Fresenius Medical Care's dividends and payments for services and leases to Fresenius. While Fresenius' Kabi business is expected to remain highly cash generative, ProServe's cash flows are likely to remain weak due to capital expenditure requirements and planned acquisitions. GOLF KOMPAKT: Claims Filing Period Ends June 15 ----------------------------------------------- Creditors of Golf Kompakt GmbH have until June 15 to register their claims with court-appointed provisional administrator Ulrike Hoge-Peters. Creditors and other interested parties are encouraged to attend the meeting at 2:25 p.m. on July 13, 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 Konigstein/Ts. Area 106a Burgweg 9 61462 Konigstein/Ts., 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 Konigstein/Ts. opened bankruptcy proceedings against Golf Kompakt GmbH on May 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Golf Kompakt GmbH Buhles 5 61479 Glashuetten, Germany Attn: Gabriele Maria Tager, Manager Kastanienhain 7 61479 Glashuetten, Germany The administrator can be contacted at: Ulrike Hoge-Peters Cronstettenstrasse 30 60322 Frankfurt/Main, Germany Tel: 069/9591100 Fax: 069/95911012 MASSIVHAUSBAU HERMANN: Claims Filing Period Ends June 26 -------------------------------------------------------- Creditors of Massivhausbau Hermann Reinhard GmbH have until June 26 to register their claims with court-appointed provisional administrator Christoph Junker. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 10, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Dresden opened bankruptcy proceedings against Massivhausbau Hermann Reinhard GmbH on May 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Massivhausbau Hermann Reinhard GmbH Dresdner Str. 7 01737 Tharandt, Germany The administrator can be contacted at: Dr. Christoph Junker Karcherallee 25a 01277 Dresden, Germany Web: http://www.junker-kollegen.de/ PROSIEBENSAT.1 MEDIA: Moody's Changes Rating Outlook to Stable -------------------------------------------------------------- Moody's Investors Service changed to stable from positive the outlook on the Ba1 senior unsecured and corporate family ratings of ProsiebenSat.1 Media AG. This rating action followed the recent announcements by ProSiebenSat.1 that it is to raise its dividend pay-out ratio to 82 per cent, from the earlier flagged 43%, of 2005 net income; and by German Media Partners LP, ProSiebenSat.1's controlling shareholder, that it has launched syndication of a EUR1.25 billion senior secured facility, the proceeds from which will be distributed to the partners of GMP. The stabilization of the outlook reflects Moody's view that an upgrade from Ba1 is now less likely in the short to medium-term given the reduced financial flexibility implied by the higher dividend payout and GMP's reliance on distributions from ProSiebenSat.1 to service the interest payments on its debt. In Moody's view a stable outlook is also now more appropriate following the partial monetization of GMP's returns and the reduced near term likelihood of an exit from its shareholding in ProSiebenSat.1 through an initial public offering, a route highlighted earlier as a potential way to a ratings upgrade. Moody's added that the Ba1 rating balances ProSiebenSat.1's good stand alone credit profile against the risk that servicing debt at GMP could in future absorb a higher proportion of ProSiebenSat.1's financial flexibility, even if the facility has been structured to be ring-fenced from ProSiebenSat.1. Reduced uncertainty and near-term risk of more significant leveraging is also factored into the Ba1 rating Moody's added. From a fundamental perspective, and on a stand-alone basis, Moody's said that ProSiebenSat.1's improved operational and financial performance would likely continue to support a higher rating than Ba1, even after taking account of the proposed higher dividend distribution, which would result in a 2005 pay- out of some EUR182 million, up from EUR63 million in 2004. On the basis of current expectations, and after taking account of the proposed higher dividend distribution, ProSiebenSat.1's retained cash flow generation should remain solid at around 20% of net adjusted debt in 2006, albeit substantially lower than the 35%-40% generated in 2005. On a gross debt basis, retained cash flow coverage would be in the region of 11%-12%, reflecting the current high level of cash on balance sheet. Moody's noted that the terms of GMP's facility involve no contractual relationship with ProSiebenSat.1 itself, and that it is secured on GMP's holdings in ProSiebenSat.1. The facility's bullet maturities imply that ProSiebenSat.1's economic exposure to the loan should be limited to servicing its interest payments. Factored into the rating is the assumption that the loan will either be repaid or refinanced by GMP at maturity without recourse to ProSiebenSat.1. On the basis of current expectations, GMP's 50.5% share of ProSiebenSat.1's dividend distributions should be sufficient to cover GMP's interest payment obligations. However, in Moody's view even at current levels these increased dividend distributions significantly reduce ProSiebenSat.1's financial flexibility, including its capacity to invest. There remains in addition the risk that these dividend payments could in the following years begin to represent a larger proportion of ProSieben's free cash flow in the event there is some weakening of operational performance over the cycle, or following a significant investment, although none is currently foreseen. The stable outlook assumes that following: -- the effective partial monetization of its investment by GMP; -- the reduced near-term likelihood of a potentially leveraging exit transaction; -- the continued good operating performance by ProSiebenSat.1 -- a pay-out ratio of around 80% of net income; and -- the maintenance of its existing capital structure. ProSiebenSat.1 Media AG is based in Munich, Germany. The company's main activity is the broadcasting and production of television programs through four German language television channels as well as a range of ancillary activities. SEN KUAFOR: Claims Registration Ends June 23 -------------------------------------------- Creditors of Sen Kuafor GmbH have until June 23 to register their claims with court-appointed provisional administrator Stefan Roth. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 31, 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 Mannheim Area 232, 2nd Floor West Wing 68149 Mannheim, 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 Mannheim opened bankruptcy proceedings against Sen Kuafor GmbH on May 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Sen Kuafor GmbH Attn: Erdogan Calis, Manager G 4, 13 68159 Mannheim, Germany The administrator can be contacted at: Stefan Roth Bachstr. 5-7 68165 Mannheim, Germany Tel: 0621/4400441 ============= I R E L A N D ============= ELAN CORP: Hikes Tysabri Price After Drug Reintroduction -------------------------------------------------------- Elan Corp. plc and Biogen Idec Inc. have priced its recently re- introduced multiple-sclerosis drug Tysabri at about a 20% premium over the price of the drug when it was approved in 2004, Sylvia Pagan Westphal writes for The Wall Street Journal. The wholesale acquisition cost is US$2,184.62 per vial or approximately US$28,000 annually, compared with a price of about US$22,000 a year when the drug was launched in 2004, the WSJ reports. Tysabri will be available in July upon the completion of key activities related to Elan's risk management plan, including: -- finalization of educational and training materials, -- internal validation of systems based on final FDA requirements; and -- training of internal personnel. Elan and Biogen Idec reiterated their committed to making TYSABRI accessible to appropriate patients who may benefit from therapy. To achieve this goal, programs have been developed to assist patients who are uninsured or who require financial assistance. Patients who require financial assistance can receive more information by calling MS ActiveSource at 1-800-456-2255. About the Company Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Elan shares trade on the New York, London and Dublin Stock Exchanges. * * * Moody's Investors Service rates Elan's long-term corporate family rating at Ba3. The company's long-term foreign issuer credit rating and long-term local issuer credit rating carry Standard & Poor's single-B rating. As reported by TCR-Europe on May 2, 2005, the company's net loss for the first quarter of 2005 amounted to US$115.6 million, an increase of 86% over the US$62.2 million reported in the same quarter of 2004. Of the US$74.7 million net operating loss for the first quarter of 2005, US$58.6 million related to Tysabri(TM). Total revenue decreased 31% to US$102.7 million in the first quarter of 2005 from US$148.3 million in the first quarter of 2004. ========= I T A L Y ========= BANCA NAZIONALE: BNP Paribas Offers to Buy Remaining BNL Shares --------------------------------------------------------------- As announced at the launch of its public tender offer on Banca Nazionale del Lavoro S.p.A., BNP Paribas filed at the Consob its residual public tender offer project for the ordinary shares of BNL it does not already own. BNP Paribas currently owns 97.54% of BNL's shares. BNP Paribas' project proposes to fix an amount of EUR2.9275 per ordinary share for those shares tendered under the residual offer. This obligatory offer will begin by the end of June 2006. At the end of this offer, and whatever its result, BNL shares will be delisted from the exchange. About BNP Paribas Headquartered in Milan, Italy, BNP Paribas -- http://www.bnpparibas.com/en/home-- is one of the largest foreign banks in Italy, with a leading and longstanding presence in retail financial services, a well-established position in asset management and services, and the status of a top tier player in corporate and investment banking. It employs more than 3,700 people and generates revenues in excess of EUR750 million. About BNL Banca Nazionale del Lavoro -- http://www.bnl.it/default.asp-- is the sixth largest Italian bank in terms of deposits and loans. Its network offers nationwide coverage via approximately 800 branches covering all major urban areas. It serves around 3 million retail customers, 39,000 corporate clients, and 16,000 public entities. * * * As reported in TCR-Europe on May 22, Fitch Ratings upgraded Fitch ratings upgraded Italy-based Banca Nazionale del Lavoro's rating to Issuer Default AA- from A+. At the same time, the agency affirmed the bank's Short-term, Individual and Support ratings at F1, C and 1 respectively. Following the upgrade, the outlook is now stable. =================== K A Z A K H S T A N =================== ALTYN ARKA: Almaty Court Opens Bankruptcy Proceedings ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against CJSC Altyn Arka (RNN 600400071439) on April 11. GAZIZ SU: Kyzylorda Court Opens Bankruptcy Proceedings ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceedings against LLP Gaziz Su on April 17. Creditors must submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kyzylorda Region Aiteke bi Str. 29 Kyzylorda Kyzylorda Region Kazakhstan JASULAN M.D.: Kyzylorda Court Begins Bankruptcy Proceedings ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceedings against LLP Jasulan M.D. on April 21. Creditors must submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kyzylorda Region Aiteke bi Str. 29 Kyzylorda Kyzylorda Region Kazakhstan KAMKOR: East Kazakhstan Court Begins Bankruptcy Proceedings ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region commenced bankruptcy proceedings against CJSC Auto Service & Trade Kamkor on April 18. KAZTORGSOUZ: East Kazakhstan Court Starts Bankruptcy Process ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan Region commenced bankruptcy proceedings against CJSC Kaztorgsouz on April 14. NEW FAST: Creditors Must File Claims by June 23 ----------------------------------------------- LLP New Fast Food has declared insolvency. Creditors have until June 23 to submit written proofs of claim to: LLP New Fast Food Room 95 Bogenbai batyr Str. 300 Almalinsky District 050009 Almaty, Kazakhstan Tel: 8 (3272) 50-64-53 8 (3272) 50-15-26 TUTAS: Almaty Court Commences Bankruptcy Proceedings ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against JSC Scientific- Production Joint Stock Company Tutas (RNN 600400012444) on March 6. UNITED LEATHER: Proof of Claim Deadline Slated for June 23 ---------------------------------------------------------- LLP United Leather Company has declared insolvency. Creditors have until June 23 to submit written proofs of claim to: LLP United Leather Company Office 313 Bogenbai batyr Str. 80 Almaty, Kazakhstan VITAL: Kyzylorda Court Begins Bankruptcy Process ------------------------------------------------ The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceedings against LLP Vital on April 21. Creditors must submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kyzylorda Region Aiteke bi Str. 29 Kyzylorda Kyzylorda Region Kazakhstan =========== L A T V I A =========== MAZEIKIU NAFTA: Competition Council Ends Probe on Latvian Unit -------------------------------------------------------------- The Competition Council of the Republic of Latvia notified Mazeikiu Nafta that it has closed the investigation of certain business practices of Mazeikiu's Latvian subsidiary on May 24. The Council found no violation of Latvia's Competition Law. The investigation lasted for seven months and involved an open and constructive dialogue between the local competition authority and Mazeikiu Nafta regarding the company's business practices. Notably the finding of Competition Council of the Republic of Latvia recognizes that there exist separate segmented markets for 95 grade gasoline, namely: -- DDU sales from the refinery by means of railroad transport to client's terminals with duty unpaid; -- FOT (free on truck) sales from terminals available to any client; and -- retail sales. In a separate competition issue, the Lithuania Supreme Administrative Court suspended the Dec. 22, 2005 decision of the Competition Council of the Republic of Lithuania wherein Mazeikiu Nafta was alleged to have been dominant in certain markets and to have abused that position. The suspension remains in effect pending a final hearing of Mazeikiu Nafta appeal. Headquartered in Mazeikiai District, Lithuania, Mazeikiu Nafta -- http://nafta.it/en-- is an integrated downstream oil company that comprises in one complex pipeline operations, oil refining, marine terminal operations, and logistics of crude oil and refined products. * * * As reported in TCR-Europe on May 30, Fitch Ratings placed Lithuania's refining company Mazeikiu Nafta AB's Issuer Default Rating of B+ on Rating Watch Positive. ================= L I T H U A N I A ================= MAZEIKIU NAFTA: Competition Council Ends Probe on Latvian Unit -------------------------------------------------------------- The Competition Council of the Republic of Latvia notified Mazeikiu Nafta that it has closed the investigation of certain business practices of Mazeikiu's Latvian subsidiary on May 24. The Council found no violation of Latvia's Competition Law. The investigation lasted for seven months and involved an open and constructive dialogue between the local competition authority and Mazeikiu Nafta regarding the company's business practices. Notably the finding of Competition Council of the Republic of Latvia recognizes that there exist separate segmented markets for 95 grade gasoline, namely: -- DDU sales from the refinery by means of railroad transport to client's terminals with duty unpaid; -- FOT (free on truck) sales from terminals available to any client; and -- retail sales. In a separate competition issue, the Lithuania Supreme Administrative Court suspended the Dec. 22, 2005 decision of the Competition Council of the Republic of Lithuania wherein Mazeikiu Nafta was alleged to have been dominant in certain markets and to have abused that position. The suspension remains in effect pending a final hearing of Mazeikiu Nafta appeal. Headquartered in Mazeikiai District, Lithuania, Mazeikiu Nafta -- http://nafta.it/en-- is an integrated downstream oil company that comprises in one complex pipeline operations, oil refining, marine terminal operations, and logistics of crude oil and refined products. * * * As reported in TCR-Europe on May 30, Fitch Ratings placed Lithuania's refining company Mazeikiu Nafta AB's Issuer Default Rating of B+ on Rating Watch Positive. =================== L U X E M B O U R G =================== ARES FINANCE: S&P Assigns BB Rating to Class E Notes ---------------------------------------------------- Standard & Poor's Ratings Services raised its credit rating on the class B notes issued by Ares Finance 2 S.A. At the same time, the rating on the class C notes was placed on CreditWatch with positive implications. The ratings on the class D and E notes were affirmed. The notes issued are ultimately backed by a pool of secured and unsecured nonperforming loans originated in Italy by Banca Nazionale del Lavoro SpA. The servicer in the transaction is Societa Gestione Crediti SpA, and the portfolio advisor is Archon Group Italia S.r.l. "The raising of the rating on the class B notes reflects the high level of cash collateralization achieved on those notes. This resulted from the de-leveraging of the transaction and cash already collected in the first half of the current semiannual collection period," said Giorgio Frascella, a credit analyst in the Structured Finance group. The CreditWatch placement of the class C notes is expected to be resolved within three months. The CreditWatch placement follows an initial review of the most recent transaction information received by Standard & Poor's. This analysis showed that the likelihood of a positive rating action has increased on the basis of the cash awaiting distribution from the courts and the ongoing resolution of the underlying portfolio. Data released in the latest quarterly advisory report shows an available funds balance of EUR9.9 million for distribution to noteholders. Approximately EUR3.4 million will be used in the next payment date to pay interest, with the remainder to be applied to redeem the notes sequentially. The current outstanding balance of the class B notes is EUR10.8 million. Cumulative net collections for the transaction remain below the servicer's and Standard & Poor's base-case, at EUR522.3 million. Although slowing the resolution process, the high recourse (73% of closed gross bank value) to judicial resolutions has been moderately profitable, currently at around 101.2% of the servicer's revised base-case rate. The higher-than-expected profitability and the favorable interest rate environment have limited the impact of the higher costs related to the slower-than-expected amortization of the notes. The underlying portfolio continues to advance through the legal stages of the resolution process. However, as the underlying portfolio is being resolved, the net collections are gradually slowing down. Average net collections in the past 18 months have been ?31.6 million. This compares with an average of about ?53.5 million since the transaction closed. As of April 30, cash awaiting distribution from the courts was approximately EUR53.4 million. A further EUR16 million in cash is expected from the accepted negotiated resolution. According to the servicer's experience, distribution from the courts takes on average around one year for foreclosures, and 18 months for bankruptcy proceedings. Standard & Poor's will continue to closely monitor the performance of the servicing activity in terms of speed and profitability of resolutions and overall composition of the residual portfolio. Ratings List Ares Finance 2 S.A. EUR684.90 Million Asset-Backed Notes Rating Class To ------ From ----- -- ---- Rating Raised B AAA AA Rating Placed On CreditWatch With Positive Implications C A/Watch Pos A Ratings Affirmed D BBB E BB =========== R U S S I A =========== FINCOR-AUDIT: Court Starts Bankruptcy Supervision ------------------------------------------------- The Arbitration Court of Buryatiya Republic has commenced bankruptcy supervision procedure on CJSC Fincor-Audit (Case No. A10-1224/06). The Temporary Insolvency Manager is: N. Dubershtein Senchinkhina Str. 189 Ulan-Ude 670024, Buryatiya Republic, Russia Tel/Fax: (3012) 22-82-06 The Arbitration Court of Buryatiya Republic is located at: Kommunisticheskaya Str. 51 Ulan-Ude 670024, Buryatiya Republic, Russia ISKRA: Court Names A. Vampilov as Insolvency Manager ---------------------------------------------------- The Arbitration Court of Ulyanovsk Region appointed Mr. A. Vampilov as insolvency manager for OJSC Factory Iskra (Case No. A72-9544/04-21/37-B). He can be reached at: A. Vampilov Narimanova Pr. 75 432030, Ulyanovsk Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. KRASNOARMEYSKIY: Court Names M. Musaelyan as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Krasnodar Region appointed Mr. M. Musaelyan as insolvency manager for OJSC Butter-Cheese Factory Krasnoarmeyskiy (Case No. A32-11366/2005-46/156B). He can be reached at: M. Musaelyan Shevchenko Str. 2 Anapa 353440, Krasnodar Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: OJSC Butter-Cheese Factory Krasnoarmeyskiy Moskovskaya Str. 171 Poltavskaya St. 353800, Krasnodar Region, Russia MONCHEGORSKAYA FURNITURE: Names A. Arendachuk to Manage Assets -------------------------------------------------------------- The Arbitration Court of Murmansk Region appointed Mr. A. Arendachuk as insolvency manager for OJSC Monchegorskaya Furniture (TIN/KPP 5107010787/510701001). He can be reached at: A. Arendachuk Metallurgov Pr. 2A Monchegorsk 184500, Murmansk Region, Russia Tel/Fax: (8-81536) 3-48-88 The Court commenced bankruptcy proceedings against the company after finding it insolvent (Case No. A42-1894/2005). The Debtor can be reached at: OJSC Monchegorskaya Furniture Monchegorsk, 184511, Murmansk Region, Russia Novoprolozhennaya Str. 14 OAO ROSNEFT: Shareholders Approve 2005 Annual Report & Dividend --------------------------------------------------------------- Shareholders of OAO Rosneft Oil Co. approved the company's Annual Report and Accounts for 2005 on June 7, including its income statement and profit distribution for last year. Pre-tax profits were approved at RUR75.99 billion and net profits at RUR56.68 billion. Shareholders decided to declare annual dividends on the Company's shares amounting to RUR11.33 billion. This represents 20% of Rosneft's 2005 net profits and is equivalent to RUR1.24673 per common share. Dividends will be paid by Dec. 31, 2006. New Board of Directors The extraordinary meeting of shareholders also decided on the premature termination of the powers of the Company's Board of Directors, elected previously by the regular meeting of shareholders, and elected a new Board, comprising of: * Kirill Androsov - Deputy Minister of Trade and Economic Development; * Sergei Bogdanchikov - President, Rosneft; * Oleg Gordeev - Vice-President, Russneft; * Yuri Medvedev - Deputy Head of the Federal Property Management Agency; * Sergey Naryshkin - Director of the RF Government Administration, Minister; * Gleb Nikitin - Head of Division, Federal Property Management Agency; * Sergey Oganesyan - Director, Federal Energy Agency; * Andrey Reus - Deputy Minister of Industry and Energy; * Igor Sechin - Deputy Head of the Presidential Administration - Advisor to the President of Russian Federation; and three independent Board members, including: * Andrey Kostin - President, Chairman of the Management Board of Vneshtorgbank; * Alexander Nekipelov - Vice-President, Russian Academy of Sciences; * Hans-Jorg Rudloff - Chairman of the Management Board, Barclays Capital. The Board has elected Mr. Sechin as chairman. Three committees have been formed within the Board of Directors: (a) Audit Committee: * Hans-Jorg Rudloff - Chairman of the Management Board, Barclays Capital; * Kirill Androsov - Deputy Minister of Trade and Economic Development; * Andrey Kostin - President, Chairman of the Management Board of Vneshtorgbank. (b) HR and Remuneration Committee: * Andrey Kostin - President, Chairman of the Management Board of Vneshtorgbank; * Sergey Naryshkin - Chief of Staff for the Russian Cabinet of Ministers; * Hans-Jorg Rudloff - Chairman of the Management Board, Barclays Capital. (c) Strategic Planning Committee: * Alexander Nekipelov - Vice-President, Russian Academy of Sciences; * Andrey Reus - Deputy Minister of Industry and Energy; * Gleb Nikitin - Head of Division, Federal Property Management Agency. The Board members also approved the increase of 400 mln of Rosneft's common registered non-documentary shares to place by closed subscription. Auditor The shareholders' meeting approved the three members of Rosneft's audit commission and appointed ZAO Auditing Firm "Tsentr Bukhgaltera i Auditora" as the auditor of the Company's 2006 annual accounts under Russian accounting standards. Headquartered in Moscow, OAO Rosneft -- http://www.rosneft.com/english-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * Standard & Poor's assigned B+ ratings to Rosneft's long-term and local foreign issuer credit, while Fitch assigned BB+ ratings to the Company's foreign currency and local currency long-term debt in 2005. OAO ROSNEFT: Hikes Charter Capital with 7.4-Bln Equity Placement ---------------------------------------------------------------- Shareholders of OAO Rosneft Oil Co. decided to increase the company's charter capital on June 7 by placing 7,438,514,449 additional common shares with a par value of RUR0.01 each, through the conversion of common and preferred shares in various Rosneft companies. These companies include: -- Rosneft-Krasnodarneftegaz; -- Rosneft-Purneftegaz; -- Rosneft-Sakhalinmorneftegaz; -- Rosneft-Stavropolneftegaz; -- Yuganskneftegaz; -- Rosneft Komsomolsk Refinery; -- Rosneft Tuapse Refinery; -- Rosneft-Arkhangelsknefteprodukt; -- Rosneft-Nakhodkanefteprodukt; and -- Rosneft-Tuapsenefteprodukt. Common shares were also converted in Severnaya Neft and Selkupneftegaz. The shareholders also decided to place 400 million additional common shares with a par value of 0.01 rubles by closed subscription to J.P. Morgan Europe Limited or Rosneftegaz. The shareholders approved Rosneft's restated charter and internal regulations, which comply fully with the requirements of the Code of Corporate Behavior, and standards for the issuance of securities on Russian and Western stock markets: * Regulations on the General Meeting of Shareholders; * Regulations on the Board of Directors; * Regulations on the Collegial Executive Body (Management Board); * Regulations on the Sole Executive Body (President); * Regulations on the Audit Commission. The meeting also approved a number of interested-party transactions. Headquartered in Moscow, OAO Rosneft -- http://www.rosneft.com/english-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * Standard & Poor's assigned B+ ratings to Rosneft's long-term and local foreign issuer credit, while Fitch assigned BB+ ratings to the Company's foreign currency and local currency long-term debt in 2005. PROKOPYEVSKIY METAL: Court Starts Bankruptcy Supervision -------------------------------------------------------- The Arbitration Court of Kemerovo Region has commenced bankruptcy supervision procedure on LLC Prokopyevskiy Factory of Metal Constructions (Case No. A27-3847/2006-4). The Temporary Insolvency Manager is: A. Shestakov Apartment 5 Lesnoy Per. 4 634041, Tomsk Region, Russia The Debtor can be reached at: LLC Prokopyevskiy Factory of Metal Constructions Azovskaya Str. 11 Prokopyevsk 653046, Kemerovo Region, Russia SEVERSTAL: Arcelor Recommends Severstal Bid Over Mittal's --------------------------------------------------------- The Board of Directors for Arcelor S.A. rejected Mittal Steel's EUR21.5 billion revised offer and recommended that shareholders support the proposed merger with OAO Severstal. Following a detailed review and analysis of: -- the revised terms of Mittal Steel's unsolicited offer of May 19, 2006 for all of the shares and convertible bonds of Arcelor; -- the Mittal Steel standalone business plan recently delivered to Arcelor; -- the letter sent to Arcelor by a minority of shareholders representing or claiming to represent some 30% of Arcelor capital; -- the consequences of various timing scenarios for the proposed self tender offer, and having consulted Morgan Stanley on the financial aspects of Mittal Steel's revised offer, the Board has unanimously concluded that: -- Mittal Steel's current offer is inadequate as it continues to undervalue Arcelor; and -- the Severstal transaction is a more attractive alternative from a strategic, financial and social point of view. Subsequently, the Board resolved to: -- reject Mittal Steel's current revised offer; -- recommend to Arcelor's shareholders and convertible bond holders not to tender into Mittal Steel's revised offer; -- recommend to Arcelor's shareholders to support the Severstal transaction at the general meeting scheduled for June 30, 2006; -- set the price per share of the self tender offer at EUR44; -- decide not to commence such self tender offer until after the day of the publication of Mittal Steel's offer results; and -- mandate that Arcelor's Group Management Board meets with Mittal Steel in order to review the improvements that Mittal Steel offered to make to its current offer. Mittal's Offer The Arcelor Board notes that the revisions to Mittal Steel's offer announced on May 19, 2006, demonstrate that Mittal Steel's initial offer undervalued Arcelor. Notwithstanding the increase in the consideration offered by Mittal Steel, the Arcelor Board of Directors believes that this offer is still inadequate as it continues to undervalue Arcelor because: -- Mittal Steel's 34% increase was required to realign the consideration initially offered by Mittal Steel as a result of its underperforming share price relative both to Arcelor's share price (by 20% from Jan. 30 2006 to May 17, 2006) and the steel sector average; -- Mittal Steel's offer does not take into proper account Arcelor's operating and financial results for 2005 -- which exceeded market expectations -- and for the first quarter of 2006, nor Arcelor's strategic plan; -- the multiple implied by Mittal Steel's valuation of Arcelor does not show a control premium when compared with trading multiples of comparable companies; and -- the multiple implied by Mittal Steel's valuation of Arcelor remains significantly lower than multiples used in recent transactions in the steel sector. The Arcelor Board of Directors, which consulted Morgan Stanley in connection with its financial aspects, reiterates that Mittal Steel's revised offer is inadequate and recommends that Arcelor shareholders and convertible bond holders do not tender into Mittal Steel's offer. Diverging Business Plans The meeting, which took place recently between representatives of Arcelor and Mittal Steel, regarding Mittal Steel's business plan confirmed that Mittal Steel's strategy is mainly volume driven while Arcelor's is margin driven. As a result of these diverging business models, the synergies generated by the proposed combination of Mittal Steel and Arcelor are on the low side compared to those generated by recent large steel sector mergers and compared to those generated by the proposed merger of Arcelor and Severstal. Severstal Transaction The Severstal transaction will create the world's steel champion and the most profitable steel company. The Severstal transaction represents a key step in the implementation of Arcelor's value plan and growth strategy and it is consistent with its strategic vision, business model and corporate values. The Severstal transaction will create the world's steel champion as Arcelor and Severstal are complementary both from a geographical standpoint and an industrial standpoint. The combined company will offer an exceptional, balanced geographic presence with leadership both in developed markets (Europe, North America) and emerging markets (Brazil and Russia). From an industrial standpoint, the combination of high value- added products and low-cost integrated upstream operations will result in a combined company with one of the highest profit margins in the industry, generating a 2005 pro forma EBITDA per ton of EUR130. The combined entity will consolidate Arcelor's technology leadership and experience and will be the undisputed world leader in all product segments (flat carbon steel, long carbon steel and distribution). The combination will strengthen Arcelor's leadership in the automotive steel segment (with a worldwide market share over 20% - more than double that of its nearest competitor). Furthermore, the combined company will have outstanding resilience through the steel cycle. The Severstal transaction creates compelling value for shareholders. The combined company will rank amongst the world's most competitive steelmaking producers in both developed and emerging markets, and will be the only one with leading positions in Brazil and Russia. The merger will generate significant synergies and further growth opportunities with a new normalized EBITDA target for 2008 of EUR10bn under Arcelor conservative hypothesis. The Severstal transaction enables Arcelor to continue its best practice corporate governance model. The agreement with Alexey Mordashov includes features designed to maintain Arcelor's corporate governance model. Several of these, such as the independence of a majority of the board, the independence of board committees and the mandatory offer threshold will be added to the by-laws. The Arcelor board wishes to reiterate that neither the Severstal transaction, nor the way it is structured violate any law or any provision of the corporate charter. By approving the Severstal transaction, the Board is certain that it acted not only lawfully, but also in the best interest of Arcelor, its stakeholders and its shareholders. In fact, the Board is convinced that in the absence of the Severstal proposal, Mittal Steel would not have improved its offer. Moreover, the Severstal deal has been structured such that, if Mittal Steel acquires more than 50% of Arcelor's fully-diluted share capital, the Severstal transaction will be unwound. Additionally, if Mittal Steel achieves ownership levels below 50%, the Severstal transaction could be unwound by Alexey Mordashov himself. The Arcelor Board of Directors has retained its full ability to continue carrying out its fiduciary duties in an unrestricted manner, in particular by being free to recommend a superior proposal. Voting Considerations In light of the exceptional importance of the current events for the future of the Company, the Board decided to give the opportunity to those of the shareholders who would be opposed to the Severstal transaction to express their negative opinion by a simple majority vote of the currently outstanding shares of Arcelor and has called a shareholders meeting for June 30 to that effect. Shareholders have therefore two opportunities to express their views. They can vote against the Severstal transaction at the general meeting on June 30 and they can also express their preference for the Mittal Steel project by tendering into the Mittal Steel offer. Given the importance of the Severstal/Arcelor transaction for the future of Arcelor, the 50% level for a rejection of this transaction is designed to encourage shareholder participation. A communication campaign will be undertaken by Arcelor to ensure that all shareholders are fully informed with respect to Severstal and the proposed transaction and that they participate in such meeting to express their preference. Putting the Severstal transaction to a vote with a 2/3 majority of those present or represented, as sometimes suggested recently, would mean that a small fraction of Arcelor's shareholders, representing at best 1/3 of Arcelor's capital, be given the right to eliminate this alternative. The Arcelor Board of Directors therefore recommends that shareholders massively participate at the June 30 shareholders meeting and vote in favor of the Severstal transaction. Arcelor's Board of Directors believes that the proposal by a minority of Arcelor shareholders is aimed at precluding the Severstal alternative in favor of Mittal Steel Arcelor has received a letter requesting a shareholders meeting signed by entities claiming that they own approximately 30% of Arcelor's capital. In such Letter, it is demanded that a general meeting be called in order to vote on a resolution (to be passed by a simple majority) requesting that an extraordinary shareholders meeting (EGM) be called later to approve the Severstal transaction (to be passed by a two-thirds majority). The Board believes that this complex double shareholders meeting structure with different quorums and majority rules will deprive Arcelor shareholders of the Severstal alternative. The Arcelor Board is very concerned that the scenario proposed has not been understood, due to its unnecessary complexity, and wants to make sure that investors are aware that: -- regulatory delays and the likelihood of absence of a legal quorum on first call of such EGM would make it impossible to have it take place before mid-August at the soonest, long after the end of Mittal Steel's offer, thereby rendering such vote insignificant and useless; -- because of such timing, Mittal Steel would have the opportunity to vote any Arcelor shares acquired through the offer at such EGM against the proposed Severstal transaction; -- a small fraction of Arcelor's shareholders representing significantly less than 1/3 of the capital would be given the right to eliminate this alternative which the signatories of the Letter claim to praise. Given the sensitivity of the matter in the present context as well as the fact that the elements of the Letter previously published in the press do not conform to the text of the Letter received, the Board has requested that certain important elements be verified in order to ensure that legal obligations are fully complied with. In any event, Arcelor's Board has included the proposed resolution on the agenda of the June 30 shareholders meeting and recommends that shareholders vote against such proposal. Self Tender Offer Following its prior decision to distribute a EUR6.5 billion amount to Arcelor shareholders, the Arcelor Board of Directors has decided that the price per share to be offered to Arcelor shareholders in connection with the Offre Publique de Rachat d'Actions to be submitted to Arcelor shareholders at the next EGM, on June 21, 2006, will be EUR44 per share which corresponds to the price per share paid by Alexey Mordashov with the cash portion of its contribution to the capital of Arcelor. Taking into account investors concern in case of an overlap in terms of calendar between the Mittal Steel offer and this self- tender offer, the Board of Directors decided that, if the shareholders were to approve such self-tender offer, it will not be commenced until after the day of the publication of the Mittal Steel offer results. Therefore, the self-tender offer will have no influence on the ability of Mittal Steel to close its offer. Committed to maximizing shareholder value and protecting the corporate interest, Arcelor Board of Directors requests Group Management Board to meet with Mittal Steel in order to review Mittal Steel's proposal to further improve its offer The Arcelor Board of Directors rejects the current Mittal Steel offer and reiterates its full support of the Severstal transaction. These determinations are premised on a commitment to maximizing shareholder value and protecting the interest of the group, its employees and its stakeholders. In line with this commitment, and having noted that Mittal Steel recently indicated that it was prepared to further improve its offer in the context of a recommended transaction, the Arcelor Board has mandated the Group Management Board to meet with Mittal Steel in order to explore such possible improvements and to report to the Board of Directors. About Arcelor Headquartered in Avenue de la Liberte, Luxembourg, Arcelor S.A. http://www.arcelor.com/-- is the number one steel company in the world with EUR32.6 billion in turnover in 2005. The company holds leadership positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. In 2006, Arcelor employs 110,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labor relations and social responsibility. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of approximately EUR150 per ton. As at March 1, 2004, 82.75% of Severstal's share capital was controlled directly or indirectly by Alexey Mordashov, Chairman of Severstals Board of Directors. Institutional investors held around 6.5% of Severstals shares while management and employees held the remaining 10.75%. As of Dec. 31, 2005, Severstal had US$10.75 billion in total assets, US$3.66 billion in total liabilities and US$7.09 billion in total shareholders' equity. * * * As reported in the TCR-Europe on May 30, Standard & Poor's Ratings Services placed its 'B+' long-term corporate credit rating on Russia-based integrated steel maker OAO Severstal on CreditWatch with positive implications, following the announcement of an agreed merger with Luxembourg steelmaker Arcelor S.A. Moody's Investors Service also placed the corporate family rating of B1 and the senior unsecured rating of B2 of Severstal on review for possible upgrade following the intention of Severstal's majority owner to merge Severstal and its mining assets with Arcelor. On Feb. 13, Moody's has changed the outlook of Severstal's ratings from stable to positive, following the company's announcement of the acquisition of a majority interest in mining assets currently held by affiliated parties outside the borrowing group. Fitch Ratings also placed OAO Severstal's ratings of Issuer Default BB-, Senior Unsecured BB-, Short-term B and National Long-term A+ on Rating Watch Positive, following Severstal's agreement to merge with Arcelor. SORT-SEM-OVOSH: Bankruptcy Hearing Slated for July 27 ----------------------------------------------------- The Arbitration Court of Kemerovo Region will convene on July 27 at 1:30 p.m. to hear bankruptcy proceedings against OJSC Sort- Sem-Ovosh (Case No. A27-4838/2006-4). The Insolvency Manager is: O. Karamyshev Volgogradskaya Str. 34-41 650056, Kemerovo Region, Russia VOLOSHSKAYA TIMBER: Arkhangelsk Court Taps Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Arkhangelsk Region appointed Mr. V. Karpov as insolvency manager for LLC Voloshskaya Timber Company (Case No. A05-20739/05-27). He can be reached at: Office 42 Badigina Str. 19 163045, Arkhangelsk Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: LLC Voloshskaya Timber Company Zavodskaya Str. 1 Voloshkha Konoshskiy Region Arkhangelsk Region, Russia =========================== U N I T E D K I N G D O M =========================== APW ENCLOSURE: Creditors' Meeting Slated for June 20 ---------------------------------------------------- Creditors of APW Enclosure Systems (U.K.) Limited (Company Number 00962534) will meet at 11:00 a.m., on June 20 at: Marston Suite Sheffield United Conferencing Facility Bramall Lane Sheffield S2 4SU 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 19, at: Andrew J. Pepper and Alastair P. Beveridge Joint Administrative Receivers Kroll Limited 10 Fleet Place London EC4M 7RB United Kingdom Tel: 44 (0) 207 029 5000 Fax: 44 (0) 207 029 5001 Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. CABLE & WIRELESS: Terminates US SEC Registration ------------------------------------------------ Cable and Wireless PLC filed a Form 15 with the US Securities and Exchange Commission, certifying that it has fewer than 300 US shareholders, and thereby terminating the US registration of its Ordinary shares. The SEC requires that the Company maintain the number of US Holders below 300 for the next 18 months to avoid automatic re- registration of its Ordinary shares. In order to meet this requirement, the Company may require US Holders below a certain threshold shareholding to dispose of their shares during that time. The threshold will be set from time to time, at the discretion of the Board, to achieve the objective of keeping the number of US shareholders below 300. 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. CABLE & WIRELESS: Revises Strategy on Local Loop Capability ----------------------------------------------------------- Cable and Wireless PLC will adopt a revised strategy in relation to the consumer and small business element of its local loop capability. Starting on July 1, C&W's subsidiary Bulldog will offer a wholesale product to major broadband service providers. Discussions with a number of potential customers for this wholesale service are ongoing Bulldog will cease any further proactive sales, marketing or advertising activities to acquire new residential and small business customers. The company will continue as a retail brand for existing customers with ongoing customer care and launch of new innovative services. As a result of the move to wholesaling, Bulldog will reduce headcount by approximately 150, mainly from the areas of sales and marketing. The local loop rollout plan is unchanged with a target of 800 fully unbundled exchanges by Sept. 30, 2006. It is intended that, by the end of this calendar year, Cable & Wireless will use this local loop capability for corporate customer access, in addition to the wholesale offer provided. Cable & Wireless expects limited benefits from the move to wholesale during 2006/07 as Bulldog completes the local loop rollout and invests in wholesaling capability. Specific guidance will be provided at the interim results on Nov. 8. U.K. Group's Managing Director John Pluthero disclosed, "As the market leader in full local loop unbundling, we have been looking at the best way to maximize the return on our investment. We believe that a wholesaling approach to the consumer and SME market is the best way to optimize our return from our unique local loop network capability. 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. JETCREST LIMITED: Meeting of Creditors Set for June 19 ------------------------------------------------------ Creditors of Jetcrest Limited (Company Number 03118809) will meet at 10:00 a.m., on June 19 at: Vantis PLC 66 Wigmore Street London W1U 2SB 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: Nick O'Reilly and Simon Glyn Joint Administrators Vantis PLC PO Box 2653 66 Wigmore Street London W1A 3RT United Kingdom Tel: 020 7467 4000 Fax: 020 7284 4995 Headquartered in West Sussex, Vantis Numerica (nka Vantis plc) - - http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. MISYS PLC: Explores Possibility of Offer ---------------------------------------- Misys PLC noted the recent movement of its share price. The Board of Misys confirmed that it received a request from certain members of the senior management team to explore the possibility of making an offer for Misys. An Independent Committee of the Board was established to consider this request. No offer was received and one may or may not be forthcoming. No price was discussed. Headquartered in the United Kingdom, Misys PLC -- http://www.misys.com/-- provides industry-specific software serving the international banking and healthcare industries and the U.K. general insurance industry. At Nov. 30, 2005, the company reported GBP155.6 million in total stockholders' deficit. PHOENIX 2002-1: Fitch Affirms US$86.6-Mln Class C Notes at BB- -------------------------------------------------------------- Fitch Ratings affirmed Phoenix 2002-1 Ltd's Class A floating- rate notes at AA+, removing them from Rating Watch Negative. The Class B and Class C notes were also affirmed. -- US$49,747,500 Class A affirmed at AA+; off RWN; -- US$58,162,500 Class B affirmed at AA; and -- US$86,625,000 Class C affirmed at BB-. The rating action on the Class A notes reflects the recent affirmation of the notes' collateral, AIG Sun America Institutional Funding I's floating-rate notes due July 26, 2010, and the removal of the RWN status. The rating on the Class A notes is capped at the rating of the notes' collateral. Fitch believes that there is still sufficient credit enhancement to support the current ratings of all classes of notes and they have therefore been affirmed. The portfolio has had a stable performance since last review in February 2006: the credit quality slightly improved as captured from the Weighted Average Fitch Factor of 6.03 versus a WAFF of 6. 24 as of last review, both equivalent to a BBB- rating. The WAFF at close of the deal was 3.26. Phoenix 2002-1 Ltd is a public funded synthetic CDO. It references a Master CDS agreement entered into at deal close between Lehman Brothers Special Financing Inc. and Phoenix 1. To fund its obligations under the swap agreement, Phoenix 1, the SPV, issued three Classes of notes with an aggregate principal amount of US$194,535,000. The notes are collateralized by floating-rate notes issued by AIG Sun America Institutional Funding I as collateral. Substitutions of the reference entities are permitted under certain conditions during the lift of the deal, subject to the maintenance of its credit quality, and other stringent criteria. PITCHMASTIC PMB: Lloyds TSB Appoints Ernst & Young Receivers ------------------------------------------------------------ Lloyds TSB Bank PLC appointed Robert Hunter Kelly and Charles Graham John King of Ernst & Young joint administrative receivers of Pitchmastic PmB Limited (Company Number 01673940) on May 23. Ernst & Young -- http://www.ey.com/-- is global organization help companies in businesses across all industries-from emerging growth companies to global powerhouses-deal with a broad range of business issues. It has 107,000 people in 140 countries around the globe pursue the highest levels of integrity, quality and professionalism to provide clients with a broad array of services relating to audit and risk-related services, tax, and transactions. Headquartered in Sheffield, United Kingdom, Pitchmastic PmB Limited is engaged in construction. PROSPECT NUMBER: Creditors' Meeting Slated for June 14 ------------------------------------------------------ Creditors of Prospect Number Seventeen Limited (Company Number 04476078) will meet at 11:00 a.m., on June 14 at: David Rubin & Partners 26-28 Bedford Row London WC1R 4HE 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: Paul Appleton Administrator David Rubin & Partners 26-28 Bedford Row London WC1R 4HE United Kingdom David Rubin & Partners -- http://www.drpartners.com/-- specializes in corporate and personal insolvency, recovery, forensic accounting and litigation support. REGAL ENGINEERS: Meeting of Creditors Set for June 15 ----------------------------------------------------- Creditors of Regal Engineers & Contractors Limited (Company Number 03822989) will meet at 12:00 noon, on June 15 at: Holiday Inn Great North Road Newcastle upon Tyne NE13 6BP 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, tomorrow, June 14 at: T. Papanicola Joint Administrator Bond Partners LLP The Grange 100 High Street London N14 6TG United Kingdom Tel: 020 8444 2000 Fax: 020 8444 3400 RETRO HOUSE: Creditors' Meeting Slated for June 16 -------------------------------------------------- Creditors of Retro House Limited (Company Number 04448972) will meet at 11:00 a.m., on June 16 at: Thistle House 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 15 at: Andrew Lawrence Hosking and Nicholas Stewart Wood Administrator 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. SEA CONTAINERS: Further Delays 10-K Filing & Remains on Default --------------------------------------------------------------- Sea Containers Ltd. is providing an update on its financial condition pending completion of its annual report on SEC Form 10-K for the year ended Dec. 31, 2005, and its quarterly report on SEC Form 10-Q for the three months ended March 31, 2006. The Company had a consolidated operating loss for the year ended Dec. 31, 2005, and the three months ended March 31, 2006, continues to generate operating losses and currently has negative cash flow. As at May 31, 2006, the Company's total consolidated cash was approximately US$183 million. This compares to US$347 million at Dec. 31, 2005 and US$106 million at Sept. 30, 2005. The increase in total consolidated cash from Oct. 1, 2005, to Dec. 31, 2005, was US$241 million. This increase included the benefit of the net proceeds from the sale of shares in Orient- Express Hotels Ltd. (NYSE:OEH) of US$301 million with operating cash inflows including working capital movements contributing US$43 million and fixed asset sale proceeds contributing another US$32 million. These receipts were partly offset by the payment of senior secured debt of US$87 million and interest of US$24 million and net capital expenditure and other outflows of US$24 million. The reduction in total consolidated cash from Dec. 31, 2005, to May 31, 2006, was US$164 million. Operating cash outflows including working capital movement amounted to US$55 million with scheduled repayment of senior secured debt of US$58 million and interest of approximately US$35 million. Net capital expenditure necessary to maintain the operating capability of the business caused much of the remaining US$16 million reduction. Of the US$183 million of total consolidated cash at May 31, 2006, only approximately US$52 million was readily available for the Company's use as free cash. The other US$131 million of cash, was either restricted as security for Sea Containers' obligations to third parties, or was held by subsidiaries and cannot be remitted to the Company for various regulatory or financial covenant reasons. The Company is considering various options to increase its available free cash. The short-term liquidity of Sea Containers is dependent on the successful completion of the Silja transaction, a proposed refinancing of container assets, and/or other potential non-operational sources of funds. Sufficient short-term liquidity is also dependent on there continuing to be no acceleration of repayment of debt facilities in default and for the present, at least, the retention of part of the OEH share sale proceeds. 10-K Filing Delay As announced on May 1, 2006, the Company remains unable to file its 2005 Form 10-K annual report, including its audited 2005 consolidated financial statements, as it has not completed its internal processes with respect to applicable certifications. The Company's external professional advisers are assisting the Board in completing these processes as expeditiously as practicable. Because of the 10-K delay, the filing of the Company's first quarter 2006 Form 10-Q has also been delayed. Public Note Indentures The Company's public note indentures contain a covenant requiring it to maintain consolidated tangible net worth (as defined in the indentures) of at least US$175 million. As noted above, the Company has not completed its internal processes to finalize its financial statements for the year ended Dec. 31, 2005 or for the first quarter ended March 31, 2006. Because the consolidated tangible net worth calculation is based on the financial statements, the Company will not be in a position to confirm whether it has been in compliance with this covenant until the financial statements are finalized. The calculation is subject to adjustment for events up to the date of 10-K and 10-Q filing, of which the most significant is continuing change in the estimated net sale value of ferry assets held for disposal at Dec. 31, 2005 including Silja. These continuing adjusting events could result in the consolidated tangible net worth of the Company being at less than US$175 million as of Dec. 31, 2005, but this matter cannot be confirmed until the relevant financial statements are finalized. The Company's public note indentures also contain a covenant requiring that net proceeds from asset sales be applied to the payment of debt or the investment in replacement assets within six months of receipt of the net proceeds. Thereafter, under the covenant, any remaining net proceeds must be applied to an offer to purchase outstanding public notes. In addition, the Company's indenture for the public notes maturing in 2012 contains a specific covenant for the application of the proceeds of sale of the OEH shares. Of the net proceeds received from the sale of OEH shares, the Company has applied approximately US$200 million as required in the indentures, and estimates that it will have approximately US$100 million of excess proceeds at the time the indenture covenant requires the Company to make an excess proceeds offer. The approximate US$52 million balance of the Company's "free cash" at May 31, 2006, however, includes these US$100 million excess proceeds. Consequently the Company has decided to retain the OEH share sale proceeds unless it determines that they or a portion of them are not needed to fund operations during the coming months. A failure to make an excess proceeds offer would constitute a default under the public note indentures. Further to the Company's May 1, 2006 news release, Sea Containers' management is finalizing its business plan, including an assessment of the appropriate level of debt capacity and appropriate range of values of the Company. Management continues to explore a range of appropriate strategic and financial alternatives, which may include a restructuring of the Company's obligations under the public notes. To facilitate discussions with its public note holders and implementation of any of these alternatives, the Company has signed a confidentiality agreement with a law firm and with a financial advisor, each of whom will act in the interest of the public note holders in discussions with the Company. Sea Containers can give no assurance as to the results of any restructuring including the impact upon creditors and equity holders. The Company is currently unable to confirm whether it expects to pay the US$115 million principal amount of 103/4% senior notes due on Oct. 15, 2006. Payment may not be made unless the Company expects that it will also be able to pay in full when due its other public notes maturing in 2008, 2009 and 2012 and all other unsecured creditors including potential significant pension liabilities. Credit Default The Company remains in default under many of its secured credit facilities due to breaches of certain financial covenants and other requirements contained in these facilities. The Company's secured and other credit facilities also generally include cross-default provisions so that non-compliance with a covenant in one secured credit facility constitutes a default under substantially all other credit facilities. The Company is continuing discussions with its lenders regarding waivers, amendments and forbearances to address pending and prospective defaults. No lender has taken any action to exercise remedies in respect of any events of default and many lenders have signed forebearance agreements effective through the end of June. About the Company Headquartered in London, England, Sea Containers (NYSE: SCRA and SCRB) -- http://www.seacontainers.com/-- engages in passenger and freight transport and marine container leasing. U.S. shareholders primarily own the Bermuda-registered company and its common shares have been listed on the New York Stock Exchange (SCRA and SCRB) since 1974. As reported in TCR-Europe on May 5, Moody's Investors Service downgraded all debt ratings of Sea Containers Ltd -- corporate family rating to Caa1. The ratings remain under review for possible downgrade, continuing the review that was initiated on March 23. On May 4, the Troubled Company Reporter-Latin America reported that Standard & Poor's Ratings Services lowered its ratings on Sea Containers Ltd. including lowering the corporate credit rating to 'CCC-' from 'CCC+'. All ratings remain on CreditWatch with negative implications; ratings were initially placed on CreditWatch on Aug. 25, 2005, and lowered on Feb. 16, 2006, and again on March 24, 2006. The rating action followed the company's announcement that it is continuing to evaluate a range of strategic and financial alternatives, including the "appropriate level of debt capacity, with the intent to engage the public note holders and other stakeholders." SEA CONTAINERS: Agrees to Pay US$16.3 Million to GE SeaCo ---------------------------------------------------------- Sea Containers and GE Capital entered into a settlement agreement on June 2 relating to their container leasing joint venture, GE SeaCo, and the terms of the temporary provision by Sea Containers to GE SeaCo of certain services previously provided under the Services Agreement. On April 28, the decision issued in the arbitration between Sea Containers and GE Capital directed the parties to attempt to reach agreement regarding both the amount due to GE SeaCo as a result of certain breaches of the Services Agreement under which Sea Containers provided services to GE SeaCo, and the amount to be paid to GE Capital as reimbursement of its arbitration costs. Sea Containers agreed to pay GE SeaCo a net aggregate amount of approximately US$16.3 million, in addition to the amounts Sea Containers had previously paid to GE SeaCo in 2005 to cure then alleged breaches of the Services Agreement. Following discussion with GE Capital, this amount is about US$4 million more than the estimated recovery. Under the settlement agreement, Sea Containers will also pay GE Capital approximately US$1.75 million representing its arbitration costs. Simultaneously with the execution of the settlement agreement, Sea Containers paid a total of US$4 million to GE SeaCo and GE Capital. The balance (approximately US$14 million), together with interest from June 2, will be paid in subsequent monthly installments of US$2 million each. If the sale of the Silja ferry business is completed before Sea Containers has paid the full amount due GE SeaCo, the remaining balance will be paid out of the net proceeds received from the Silja sale. Under the arbitration decision and the settlement agreement, the Services Agreement was terminated effective May 28, 2006. However, Sea Containers will continue to supply certain services to GE SeaCo on a temporary basis and be compensated accordingly. GE SeaCo will continue to occupy space in Sea Containers House in London, England until at least Dec. 31, 2006. GE SeaCo has the right to continue to occupy all or a portion of that space during 2007, subject to Sea Containers' right to cancel for any period after April 1, 2007, on six-months' prior notice. Sea Containers will also continue to furnish GE SeaCo with certain computer services through at least Sept. 30, 2006, and continuing through 2007 at GE SeaCo's option. Pursuant to the agreements establishing the GE SeaCo joint venture, GE Capital has had the right to appoint a ninth member of the GE SeaCo board of directors. On April 13, 2006, GE Capital exercised this right and, as a result, a majority of the GE SeaCo board is composed GE Capital appointees. GE Capital is therefore in a position to elect GE SeaCo's officers and to control and manage GE SeaCo's business affairs, subject to the provisions of the GE SeaCo joint venture agreements. The settlement agreement confirms GE Capital's right to appoint a ninth GE SeaCo director. GE SeaCo has withdrawn as a participant in the pension plan maintained by Sea Containers for United Kingdom employees, and is establishing its own pension plan specifically for GE SeaCo employees. The settlement agreement also resolves possible disputes between Sea Containers and GE SeaCo relating to GE SeaCo's withdrawal from the Sea Containers pension plan and the amounts which GE SeaCo may be required to contribute to that plan upon its withdrawal. GNER Update The Company and its subsidiary Great North Eastern Railway Limited (GNER) have decided to seek permission from the High Court in Britain for a judicial review of the decision made by the U.K. Office of Rail Regulation on March 23, 2006, regarding track access applications granting open access to Grand Central Railway Company Limited and Hull Trains Company Limited. GNER believes these open access operators unfairly compete for passenger traffic on portions of GNER's routes. Sea Containers has reluctantly decided to withdraw from its joint bid with the MTR Corporation for the new South Western passenger rail franchise. In light of the Company's current challenges and the need to divert senior specialist personnel from the bid to support GNER's legal challenge against the Office of Rail Regulation, Sea Containers feels that removing itself from the South Western franchise competition is the prudent step to take at this time. About the Company Headquartered in London, England, Sea Containers (NYSE: SCRA and SCRB) -- http://www.seacontainers.com/-- engages in passenger and freight transport and marine container leasing. U.S. shareholders primarily own the Bermuda-registered company and its common shares have been listed on the New York Stock Exchange (SCRA and SCRB) since 1974. As reported in TCR-Europe on May 5, Moody's Investors Service downgraded all debt ratings of Sea Containers Ltd -- corporate family rating to Caa1. The ratings remain under review for possible downgrade, continuing the review that was initiated on March 23. On May 4, the Troubled Company Reporter-Latin America reported that Standard & Poor's Ratings Services lowered its ratings on Sea Containers Ltd. including lowering the corporate credit rating to 'CCC-' from 'CCC+'. All ratings remain on CreditWatch with negative implications; ratings were initially placed on CreditWatch on Aug. 25, 2005, and lowered on Feb. 16, 2006, and again on March 24, 2006. The rating action followed the company's announcement that it is continuing to evaluate a range of strategic and financial alternatives, including the "appropriate level of debt capacity, with the intent to engage the public note holders and other stakeholders." SEA CONTAINERS: Selling Silja Oy to Tallink Group for US$594 Mln ---------------------------------------------------------------- Sea Containers Ltd. and AS Tallink Grupp have entered into a definitive agreement whereby Sea Containers will sell its Baltic ferry subsidiary Silja Oy Ab to Tallink for a consideration of approximately US$594 million in cash and shares. The consideration for the sale of Silja's core business is EUR450 million cash and five million ordinary shares in Tallink. The dollar equivalent values are approximately US$570 million cash and US$24 million in shares. Tallink's shares are listed on the Tallinn Stock Exchange and their closing price on June 9, 2006 was EUR3.77 per share. Sea Containers may not dispose of the shares within 12 months of the sale's completion without Tallink's permission. The sale of Silja is subject to customary conditions including the receipt of regulatory approvals from the relevant competition authorities and corporate approval of Tallink's shareholders. It is a condition of the contract that the sale be completed by July 28, 2006. Societe Generale, which advised Sea Containers on the disposal, indicated that the sale is expected to be completed on or before that date. The transaction with Tallink includes six of the eight ships held for sale by Sea Containers as part of the Silja core business. These ships generated an EBITDA profit before depreciation, amortization and non-recurring items of approximately EUR30 million (dollar equivalent $37 million) in 2005. During 2005 Silja has been undergoing an intensive restructuring programme, which is expected to lead to EBITDA improvements over the coming 12 to18 months. The transaction does not include the fast ferry services from Helsinki, Finland to Tallinn, Estonia and the two SuperSeaCat fast ferries, which operate on the route. That business will continue to be operated by Sea Containers on a stand-alone basis. The transaction also excludes Silja's three 'legacy' vessels which are not employed on the core routes. Tallink will continue to operate the business under the Silja brand and the ships will continue to sail under their current flags and with their existing officers and crew. Tallink will ensure that Silja's existing obligations towards the employees, including pension obligations, are not adversely affected by the transaction. Commenting on the sale, Enn Pant, Chairman and CEO of Tallink, said that as a result of the acquisition Tallink and Silja will together form the leading shipping company in the Baltic Sea area, which has been a vision of Tallink for years. "Tallink's bold and successful growth strategy is boosted by Silja Line's long history, valuable brand and outstanding professionals. This transaction is firmly founded in our conviction that clients, employees as well as shareholders will benefit from the integration of these two shipping companies." Bob MacKenzie, Chief Executive Officer of Sea Containers, added: "We updated the market on March 24, 2006 on the process of selling the core of the Silja fleet and we believe that the price we have negotiated is a fair one. The sale of Silja is a vital part of our efforts to reduce substantially the overall level of Sea Containers' debt. As a result of the transaction, approximately $510 million of related bank debt will be repaid." As a result of the above transaction, two of the non-core Silja 'legacy' fleet, Opera and Finnjet, which were not included in the transaction, will become free of bank debt and Sea Containers will continue to seek to dispose of them. Sea Containers has separately completed the sale of the third legacy ship, the Walrus, for a consideration of US$21 million, paying all related bank debt of US$21 million. Sea Containers has also signed a memorandum of agreement to sell its 81-meter fast ferry Rapide. If completed, all the proceeds of the sale would be used to retire debt secured by the ship. About Silja Silja -- http://www.silja.fi/-- was founded as the Finland Steamship Company in 1883 and was listed on the Helsinki Stock Exchange until January 2003. Sea Containers' association with Silja began in 1999 when it acquired a substantial minority position and Silja became a wholly-owned subsidiary of Sea Containers in June 2002. Tallink's acquisition of Silja's core business includes six ships on two routes (Symphony and Serenade on the Stockholm- Helsinki route and Europa, Festival, Seawind and Skywind on Stockholm-Turku), along with staff, facilities and the Silja brand. The two fastcraft SuperSeaCat 3 and SuperSeaCat 4 will continue to be operated on Helsinki-Tallinn as a stand-alone business by Sea Containers under the SuperSeaCat brand. About Sea Containers Headquartered in London, England, Sea Containers (NYSE: SCRA and SCRB) -- http://www.seacontainers.com/-- engages in passenger and freight transport and marine container leasing. U.S. shareholders primarily own the Bermuda-registered company and its common shares have been listed on the New York Stock Exchange (SCRA and SCRB) since 1974. As reported in TCR-Europe on May 5, Moody's Investors Service downgraded all debt ratings of Sea Containers Ltd -- corporate family rating to Caa1. The ratings remain under review for possible downgrade, continuing the review that was initiated on March 23. On May 4, the Troubled Company Reporter-Latin America reported that Standard & Poor's Ratings Services lowered its ratings on Sea Containers Ltd. including lowering the corporate credit rating to 'CCC-' from 'CCC+'. All ratings remain on CreditWatch with negative implications; ratings were initially placed on CreditWatch on Aug. 25, 2005, and lowered on Feb. 16, 2006, and again on March 24, 2006. The rating action followed the company's announcement that it is continuing to evaluate a range of strategic and financial alternatives, including the "appropriate level of debt capacity, with the intent to engage the public note holders and other stakeholders." SOUTHPORT 2000: Hires Joint Administrators from Begbies Traynor --------------------------------------------------------------- Paul Stanley and Gary Norton Lee of Begbies Traynor were appointed joint administrators of Southport 2000 Limited (Company Number 02599277) on May 23. 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. Southport 2000 Limited is engaged in car dealership. SPECIAL THOUGHTS: Brings In Administrators from F A Simms --------------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss of F A Simms & Partners PLC were appointed joint administrators of Special Thoughts (Peterborough) Limited (Company Number 4650484) on May 15. The administrators can be contacted at: F A Simms & Partners PLC Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP United Kingdom Tel: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com Special Thoughts (Peterborough) Limited can be reached at: 63 Broadway Peterborough PE1 1SY United Kingdom STANLEY PROPERTY: Northern Rock Taps Deloitte & Touche Receivers ---------------------------------------------------------------- Northern Rock PLC appointed William Kenneth Dawson and Ian Brown of Deloitte & Touche LLP joint administrative receivers of Stanley Property Investments Limited (Company Number 03415728) on May 25. Headquartered in London, Deloitte & Touche LLP -- http://www.deloitte.com/-- is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. It provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. Stanley Property Investments Limited can be reached at: Stanley House 859 Chester Road Stretford Manchester M32 0RN Tel: 0161 282 8454 STAPEMILL LIMITED: Taps Administrators from Jacksons Jolliffe ------------------------------------------------------------- Matthew Colin Bowker and David Antony Willis of Jacksons Jolliffe Cork were appointed joint administrators of Stapemill Limited (Company Number 03829488) on May 18. 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. Headquartered in Ripon, United Kingdom, Stapemill Limited are building contractors. TITAN EUROPE: S& P Assigns Ratings to EUR943.751 Million Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR943.751 million commercial mortgage- backed floating-rate notes to be issued by Titan Europe 2006-3 PLC, an SPE. At closing, the issuer will use the proceeds of the note issuance to acquire a portfolio of 18 commercial real estate loans originated by either Credit Suisse International (CSI) or Credit Suisse. The loans are secured by 40 properties throughout Europe. The largest two loans account for 38.3% of the pool. This transaction is the eighth in the Titan Europe series, originated and arranged by CSI. It uses the same structure as the previous transactions. Ratings List Titan Europe 2006-3 PLC EUR943.751 Million Commercial Mortgage-Backed Floating-Rate Notes Class Prelim. Prelim. ----- rating amount (Mil. EUR) ------ ------- A AAA 471.975 X AAA 0.050 B AAA 245.427 C AA 51.917 D A 56.637 E BBB 37.900 F BBB- 30.043 G(1) BB 40.400 H(1) B 9.352 V NR 0.050 * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (182) Rhi AG (214) 1,756 183 BELGIUM ------- City Hotels CITY.BR (7) 210 (15) Real Software REAL.BR (49) 142 (34) Sabena S.A. (86) 2,215 (297) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Acces Industrie (8) 106 (35) Arbel PA.ARB (98) 222 (72) Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Charbo De France (3,872) 4,738 (2,868) Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Compagnies de Machines Bull (139) 137 (6) Dollfus Mieg & Cie S.A. DS (11) 165 (29) Euro Computer System (110) 682 377 Genesys S.A. GNS.PA (15) 136 3 Grande Paroisse S.A. (927) 629 330 Immob Hoteliere (68) 233 29 Labo Dolisos DOLI.PA (28) 110 (33) Matussiere et Forest S.A. MTF (78) 294 (28) Metaleurop S.A. PA.PA (24) 181 (30) Oeneo S.A. SABT.PA (12) 292 38 Pneumatiques Kleber S.A. (34) 480 139 SDR Centrest (132) 252 N.A. SDR Picardie (135) 413 N.A. Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Teamlog TLO (19) 109 (3) Trouvay Cauvin (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Cognis Deutschland GmbH & Co. KG (102) 3,409 (503) Dortmunder Actien-Brauerei DABG (13) 118 (29) EM.TV AG EV4G.BE (22) 849 15 F.A. Guenther & Son AG GUSG (8) 111 N.A. Kaufring AG KAUG (19) 151 (51) Maternus Kliniken AG MAK.F (3) 207 (30) Nordsee AG (8) 195 (31) Primacom AG PRIG (268) 1,257 (1,048) Rinol AG RLIG (64) 104 (15) Schaltbau Hold SLTG (23) 144 (7) Senator Entertainment AG SENGk.BE (153) 126 (148) SinnLeffers AG WHGG (4) 454 (145) Spar Handels- AG SPAG (442) 1,433 (234) Vivanco Gruppe (55) 131 (31) HUNGARY ------- NABI Rt. NABHY (2) 229 (8,950) ICELAND ------- Decode Genetics Inc. DCGN (9) 229 141 ITALY ----- Binda S.p.A. BND (11) 129 (20) Cirio Finanziaria S.p.A. (422) 1,583 (396) Credito Fondiario e Industriale S.p.A. (200) 4,218 N.A. Finpart S.p.A. (152) 732 (322) Gruppo Coin S.p.A. GC (150) 4,218 N.A. I Viaggi del Ventaglio S.p.A. VVE.MI (61) 487 (58) Olcese S.p.A. OLCI.MI (13) 180 (64) Parmalat Finanziaria S.p.A. (18,419) 4,121 (12,481) Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (24) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Mostostal Zabrze MECOF.PK (6) 227 (366) ROMANIA ------- Oltchim RM Valce OLT (45) 232 321) RUSSIA ------ OAO Samaraneftegas (332) 892 (16,942) Zil Auto (168) 409 (10,680) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 Sniace S.A. (16) 136 (34) SWITZERLAND ----------- Wedins Skor Accessoarer AB (10) 139 (129) TURKEY ------ Nergis Holding (24) 125 26 Yasarbank (948) 623 N.A. UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) AEA Technology Plc AAT.L (24) 340 (50) Alldays Plc (120) 252 (202) Amey Plc (49) 932 (47) Anker PLC ANK.L (22) 115 13 Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) British Energy Plc BGY (5,823) 4,921 434 British Nuclear Fuels Plc (4,248) 40,326 977 British Sky Broadcasting Group Plc BSY (61) 4,157 139 Compass Group CPG (668) 2,972 (298) Costain Group COST (39) 567 (5) Danka Bus System DNK.L (108) 540 34 Dawson Holdings DWN.L (12) 158 (19) Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (1,411) 3,235 (331) Euromoney Institutional Investor Plc ERM.L (88) 297 (56) European Home Retail Plc EHRL (14) 111 (37) Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Gondola Holdings Plc GND.L (239) 987 (396) Heath Lambert Fenchurch Group Plc (10) 4,109 (10) HMV Group Plc HMV (9) 875 (190) Homestyle Group Plc HME (29) 409 (124) Imperial Chemical Industries Plc ICI (835) 8,881 (49) Invensys PLC (963) 4,861 913 IPC Media Ltd. (685) 254 16 Jarvis Plc JRVS.L (683) 492 (371) Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United LDSUF.PK (73) 144 (29) M 2003 Plc (2,204) 7,205 (756) Manchester City (17) 154 (21) Micro Focus International Plc MCRO.L (14) 115 (11) Misys Plc MSY (460) 906 60 Mytravel Group MT.L (283) 1,159 (410) Orange Plc ORNGF (594) 2,902 7 Park Group Plc PKG.L (5) 111 (13) Partygaming Plc PRTY (46) 398 (110) Premier Foods Plc PFD.L (31) 1,475 16 Probus Estates Plc PBE.L (28) 113 (49) Regus Plc RGU.L (46) 367 (60) Rentokil Initial Plc RTO (1,134) 2,678 (45) RHM Plc RHM (586) 2,411 59 Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 SFI Group (108) 178 (162) Telewest Communications Plc TLWT (3,702) 7,581 (5,361) UK Coal Plc UKC (25) 865 (62) Virgin Mobile Holdings Plc VMOB.L (101) 278 (80) Each Tuesday edition of the TCR-Europe contains a list of companies with insolvent balance sheets based on the latest publicly available balance sheet available to our editors at the time of publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* 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 * * *