/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060615.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, June 15, 2006, Vol. 7, No. 118 Headlines A U S T R I A A.N.HOLZSCHLAGERUNGS: Creditors' Meeting Set on June 21 BAUMEISTER MULLY: Claims Filing Period Ends June 19 BRETTENTHALER WERNER: Claims Filing Period Ends July 11 CHRISTIAN SCHWARZLER: Claims Filing Period Ends June 20 EDUARD HILDEBRAND: Claims Filing Period Ends June 28 B E L G I U M DORSET STREET: Fitch Rates EUR30 Million Class H Notes at BB+ F R A N C E EUROTUNNEL GROUP: Postpones Annual General Meeting to July 27 PROCREDIT BANK: Fitch Upgrades Foreign Currency IDR to BB+ G E R M A N Y BACKEREI EICHMUELLER: Claims Registration Ends June 19 BBK GRUNDSTUECKSGESELLSCHAFT: Creditors' Meeting Set for June 27 BISCHOFF KINOBETRIEBE: Creditors' Meeting Slated for June 27 CUSTOMER GMBH: Claims Registration Ends June 21 D-METALLBEARBEITUNG: Claims Filing Period Ends June 30 ESSENTIAL PUBLIC: S&P Assigns BB Rating to Class E Notes HIB HAUS: Claims Filing Period Ends June 29 HUNO GMBH: Claims Registration Ends June 28 KARSTADTQUELLE AG: Partly Cuts Supply to Smaller Stores MOBBY DICK: Claims Registration Ends June 21 POULET & CIE.: Claims Filing Period Ends June 30 SMALL BUSINESS: Claims Filing Period Ends June 21 G R E E C E COMMERCIAL VALUE: Fitch Affirms Insurer Financial Strength at BB EMPORIKI BANK: Fitch Affirms Individual Rating at C/D I T A L Y BANCA POPOLARE: Fitch Downgrades Issuer Default Rating to BB SEAT PAGINE: Fitch Places BB- on Issuer Default Rating K A Z A K H S T A N ALTAIENERGO: Creditors Must File Claims by June 23 BAKTYBEK: Kyzylorda Court Opens Bankruptcy Proceedings DEN: Creditors Must File Claims by June 23 EKO-ASTANA-ALFA: Claims Registration Ends June 23 KOMPANYA PAVLODAR-KONSALTING: Claims Registration Ends June 23 LENINOGOR FOREST: Proof of Claim Deadline Slated for June 23 MERKATA OIL: Proof of Claim Deadline Slated for June 23 MIRAKOM: Creditors' Claims Due June 23 NURLAN: Kyzylorda Court Begins Bankruptcy Proceedings SULEIMEN: Kyzylorda Court Starts Bankruptcy Process K Y R G Y Z S T A N M.H. INTERNATIONAL: Creditors Must File Claims by Aug. 7 PROMENERGOSERVIS: Proof of Claim Deadline Slated for Aug. 8 ROOFING AND INSULATING: Claims Registration Ends Aug. 8 R U S S I A AMUR-INVEST: Amur Court Starts Bankruptcy Supervision EAST TRADING: Altay Court Opens Bankruptcy Proceedings GENERAL MOTORS: Eyes Chevrolet SUVs in St. Petersburg by 2008 KOPKULSKOYE: Novosibirsk Court Starts Bankruptcy Proceedings MB CAPITAL: Fitch Puts Long-Term B Rating on Upcoming Loan Issue SIB-STEEL-MECHANIZATION: Court Opens Bankruptcy Proceedings TARSKIY MEAT: Court Starts Bankruptcy Supervision TRANS-SIB-OIL: Court Starts Bankruptcy Proceedings PIONER: Sverdlovsk Court Commences Bankruptcy Supervision VOLOVO-AGRO-PROM-KHIMIYA: Court Commences Bankruptcy Proceedings WOOD-WORKER: Bankruptcy Hearing Slated for Dec. 13 S P A I N BANKINTER 2: S&P Assigns Ratings to EUR800 Million Notes T U R K E Y DENIZBANK A.S.: Gets US$500 Million Loan From Bank Syndicate U K R A I N E BIKIVKA' GLASS: Court Names Oleg Shklyar as Insolvency Manager BLITS: Court Begins Bankruptcy Proceedings ENERGOTRANZIT: Court Commences Bankruptcy Proceedings INTERNET BUSINESS-CENTER: Oleksandr Shevchik to Liquidate Assets KAPELLAS: Court Names Sergij Kulchitskij as Liquidator KOMERTS-CAPITAL-PLUS: Yurij Ignatchenko to Manage Assets SKRIMPRO: Donetsk Court Opens Bankruptcy Proceedings UKRAINIAN ENERGETIC: Court Starts Bankruptcy Proceedings U N I T E D K I N G D O M CHARTERHOUSE FOOD: Hires Menzies as Joint Administrators DURA AUTOMOTIVE: Plans to Shut Down Llaneli Facility EUROTUNNEL GROUP: Postpones Annual General Meeting to July 27 GENERAL MOTORS: Eyes 502,000 Vehicles From Europe in 2nd Quarter GENERAL MOTORS: Building Chevrolet Cars in Russia by 2008 INQUIRY U.K.: Names Gordon Craig as Administrator LAB (SOHO): Winds Up Operations & Appoints Liquidator LOCKSHIELD PROPERTY: Hires T. Papanicola as Administrator MAPLE PARK: Appoints Simon Thornton to Administer Assets MERLIN'S MOBILES: Brings In Administrator From Houghton Stone MIDDLEBURN LIMITED: Creditors Pass Winding Up Resolution OLDBURY NORTH: Brings In P.D. Masters as Liquidator PINEOLOGY LIMITED: Brings In Administrators from PKF SELECT RESOURCING: Names Andrew Clay as Administrator SECURE ARCHIVES: Joint Liquidators Take Over Operations SENTIRO LIMITED: Creditors Resolve to Liquidation SHARPTONE LIMITED: Hires Joint Administrators from Menzies SOFA CHOICE: Brings In Liquidator From Stones & Co. SOUTH YORKSHIRE: Brings In CRG Insolvency to Administer Assets SUZIE CLAYTON: Hires Joint Liquidators from Begbies Traynor TOTAL STAFF: Creditors Confirm Voluntary Liquidation T.S.J. WOODHOUSE: Appoints Administrators from Menzies WHITE CROSS: Financial Woes Prompt Liquidation X V1 LIMITED: Taps Robert James Thompson to Liquidate Assets YELL GROUP: Competition Commission Set to Keep Price Controls * Begbies Traynor Acquires Wilson Pitts for GBP1.1 Million ********* ============= A U S T R I A ============= A.N.HOLZSCHLAGERUNGS: Creditors' Meeting Set on June 21 ------------------------------------------------------- Creditors owed money by LLC A.N.Holzschlagerungs (FN 249831z) are encouraged to attend the creditors' meeting at 10:45 a.m. on June 21 to consider the revision of the rule by adoption and accountability. The first creditors' meeting will be held at: Land Court of Leoben Hall IV 1st Floor Leoben, Austria Headquartered in Kapfenberg, Austria, the Debtor declared bankruptcy on May 8 (Bankr. Case No. 17 S 33/06f). BAUMEISTER MULLY: Claims Filing Period Ends June 19 --------------------------------------------------- Creditors owed money by LLC Baumeister Mully (FN 245318m) have until June 19 to submit written proofs of claim to court- appointed property manager Stefan Jahns at: Stefan Jahns Esslinggasse 9 1010 Vienna Austria Fax: 536 50 14 E-mail: officewien@aaa-law.at Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on July 3 to adopt the rule on payment compensation. The creditors' meeting will be held at: Trade Court of Vienna Room 2102 21st Floor Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 8 (Bankr. Case No. 45 Sa 3/06d). BRETTENTHALER WERNER: Claims Filing Period Ends July 11 ------------------------------------------------------- Creditors owed money by Construction And Trade Enterprise Brettenthaler Werner have until July 11 to submit written proofs of claims to court-appointed property manager Rudolf Vogrin at: Rudolf Vogrin Triesterstrasse 15 2620 Neunkirchen Austria Tel: 02635/62860 Fax: 02635/6286114 E-mail: kanzlei.wippel@aon.at Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 25 to consider the revision of the rule by adoption and accountability. Headquartered in Reichenau an der Rax, Austria, the Debtor declared bankruptcy on May 8 (Bankr. Case No. 11 S 51/06w). Andreas Wippel represents Mr. Vogrin in the bankruptcy proceedings. CHRISTIAN SCHWARZLER: Claims Filing Period Ends June 20 ------------------------------------------------------- Creditors owed money by LLC Christian Schwarzler Holzwerk (FN 194622i) have until June 20 to submit written proofs of claim to court-appointed property manager Gerhard Taufner at: Dr. Gerhard Taufner Bahnhofstrasse 5 3390 Melk Austria Tel: 02752/52466 Fax: 02752/52574 E-mail: rechtsanwalt.taufner@taufner.at Creditors and other interested parties are encouraged to attend the meeting at 11:40 a.m. on July 11 to consider the revision of the rule by adoption and accountability. The creditors' meeting will be held at: Land Court of St. Polten Room 216 2nd Floor (Old building) St. Polten, Austria Headquartered in Laimbach am Ostrong, Austria, the Debtor declared bankruptcy on May 8 (Bankr. Case No. 14 S 77/06y). EDUARD HILDEBRAND: Claims Filing Period Ends June 28 ---------------------------------------------------- Creditors owed money by LLC Eduard Hildebrand (FN 125156d) have until June 28 to submit written proofs of claims to court- appointed property manager Johanna Abel-Winkler at: Johanna Abel-Winkler Franz-Josefs-Kai 49/19 1010 Vienna Austria Tel: 533 52 72 Fax: 533 52 72 15 E-mail: office@abel-abel.at Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on July 12 to consider the revision of the rule by adoption and accountability. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 8 (Bankr. Case No. 4 S 75/06s). Norbert Abel represents Mr. Winkler in the bankruptcy proceedings. ============= B E L G I U M ============= DORSET STREET: Fitch Rates EUR30 Million Class H Notes at BB+ ------------------------------------------------------------- Fitch assigned ratings to Dorset Street Finance Limited floating-rate credit-linked notes due 2040. -- EUR45,000,000 Class A-1, AAA; -- EUR75,000,000 Class A-2, AAA; -- EUR98,250,000 Class B AA+; -- EUR91,500,000 Class C AA; -- EUR75,000,000 Class D AA-; -- EUR60,000,000 Class E A; -- EUR37,500,000 Class F A-; -- EUR33,750,000 Class G BBB; and -- EUR30,000,000 Class H BB+. Dorset Street Finance Limited is a fully managed synthetic CDO that references a EUR546 million diversified portfolio of primarily investment grade corporate bonds. The reference portfolio is comprised of stand-alone corporate assets referenced as direct investments, and 10 inner tranche CDOs of corporate assets. The remaining 15% of the portfolio consists of various investment grade asset-backed securities. The transaction is designed to provide credit protection for realized losses on the reference portfolio through a master credit default swap between the issuer and the swap counterparty, KBC Investments Cayman Islands V, Ltd. The legal maturity date of the CDS is October 2040, but this trade is scheduled to amortize on July 2016. The rating of the notes addresses the likelihood that investors will receive full and timely payments of interest and ultimate receipt of principal by the scheduled maturity date. Dorset Street provides protection to the swap counterparty via a CDS that is funded with the issuance proceeds of the notes in the form of charged assets. Proceeds from the issuance of the notes will be invested in a pool of euro-denominated eligible investments, as applicable, consisting of high-quality obligations maturing in less than 10 years. Prior to maturity, the value of the principal of the notes is assured through a daily mark-to-market process which ensures the value of collateral amounts to at least the product of the outstanding repurchase price and the repo margin. At maturity, the value of the principal of the notes is protected through the repurchasing agreement, under which the repo counterparty agrees to purchase the eligible investments at their purchase price at maturity. KBC Bank NV will serve as guarantor to the repurchase agreement. Dorset Street pays the swap counterparty for any losses due to credit events experienced in the portfolio above the first loss amount for each class up to the balance on the notes by liquidating charged assets. Any reference obligations in the portfolio can be traded at the discretion of the portfolio swap counterparty, KBC, subject to trading guidelines and portfolio criteria restrictions. While KBC bears no fiduciary responsibility to noteholders, the capital structure of the transaction aligns interests of the portfolio manager with those of the investors through a subordinate management fee and equity holdings, among other features. The ratings are based upon the structure of the Issuer, the financial strength and abilities of KBC, as the portfolio swap counterparty, and KBC Bank NV, as guarantor to the repo counterparty. =========== F R A N C E =========== EUROTUNNEL GROUP: Postpones Annual General Meeting to July 27 ------------------------------------------------------------- Eurotunnel Group has postponed its Annual General Meeting until July 27 to address its financial restructuring. "Eurotunnel is entirely conscious of the upset that this postponement could cause to shareholders, with whom it shares dissatisfaction with the delay generated, but the Group intends to give every opportunity of success to the consensual restructuring process," the Company said. As reported in TCR-Europe on June 2, Eurotunnel signed a binding Preliminary Restructuring Agreement with the Ad Hoc Committee on May 23, following 10 months of negotiations. The restructuring plan is strengthened by a financing commitment from a group of financiers and investors comprised of Goldman Sachs, Barclays and Macquarie. The Agreement preserves, as far as possible, the interests of all the parties involved. It is being presented to the other debt holders and will be presented to Eurotunnel shareholders at the next General Meeting. The economics of this Agreement include: -- debt reduction of approximately GBP3.3 billion; -- a total "corporate" style debt of GBP2.9 billion, made up of three tranches: new Senior debt, Tier 1A and mezzanine; -- listed hybrid notes for a nominal amount of GBP1 billion, convertible from 2009; and -- the establishment of accretion mechanisms for the existing Eurotunnel shareholders: warrants and the possibility for the Group to buyback the hybrid notes. The financial restructuring, if accepted, will be implemented through the incorporation of a new French parent company, which will, in autumn 2006, launch an exchange offer, in the UK and France, to holders of Eurotunnel Units. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. * * * Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faces uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. Eurotunnel needs to obtain approval from other creditors and shareholders for a final agreement. Absent a final agreement, the Group may default in January 2007. On April 26, Eurotunnel obtained a third extension of its credit waiver, which calls for creditor talks to continue through July 12. PROCREDIT BANK: Fitch Upgrades Foreign Currency IDR to BB+ ---------------------------------------------------------- Fitch Ratings upgraded ProCredit Bank Macedonia's foreign currency Issuer Default rating to BB+ from BB. The other ratings are affirmed at Short-term foreign currency B; local currency IDR BB+, Short-term local currency B; Individual D/E, and Support 3. Following the upgrade, the Outlooks on the foreign currency and local currency IDRs are now Stable. The upgrade follows Fitch's upgrade of the Republic of Macedonia's foreign currency and local currency IDRs to BB+. The IDRs, Short-term and Support ratings are based on Fitch's view of the potential support the bank is likely to receive from its owners in case of need. PCH has a controlling stake in ProCredit Macedonia. Other shareholders include Kreditanstalt fuer Wiederaufbau, which is state-guaranteed and one of Germany's largest banks, as well as one of the largest development banks in Europe; European Bank for Reconstruction and Development; the Netherlands Development Finance Company and International Finance Corporation. ProCredit Macedonia started operations in July 2003 and received a full banking license at end-2004. Total loans were EUR59 million as of end-May 2006. The ProCredit banks were established to provide financing to micro- and SME customers. The ProCredit network currently consists of 19 banks in Eastern Europe, Latin America and Africa with total loans of EUR1.7 billion as of end-May 2006. PCH is responsible for all major group functions, including strategic decisions, risk management controls and group supervision. ============= G E R M A N Y ============= BACKEREI EICHMUELLER: Claims Registration Ends June 19 ------------------------------------------------------ Creditors of Backerei Eichmueller - Jungkunz und Jungkunz GbR have until June 19 to register their claims with court-appointed provisional administrator Dirk Hammes. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on July 19, 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 Duisburg Meeting Room C315 3rd Floor Cardinal Galen Road 124-132 47058 Duisburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Duisburg opened bankruptcy proceedings against Backerei Eichmueller - Jungkunz und Jungkunz GbR on May 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Backerei Eichmueller - Jungkunz und Jungkunz GbR Attn: Sara and Angelika Jungkunz, Managers Schelmenweg 25 A 47229 Duisburg, Germany The administrator can be contacted at: Dirk Hammes William Yard Avenue 75 47800 Krefeld, Germany BBK GRUNDSTUECKSGESELLSCHAFT: Creditors' Meeting Set for June 27 ---------------------------------------------------------------- The court-appointed provisional administrator for BBK Grundstuecksgesellschaft mbH & Co. Triftstrasse-Verwaltungs-KG, Christoph Rosenmueller, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:35 a.m., on June 27. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:35 a.m., on Oct. 24 at the same venue. Creditors have until Aug. 20 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against BBK Grundstuecksgesellschaft mbH & Co. Triftstrasse-Verwaltungs-KG on May 22. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: BBK Grundstuecksgesellschaft mbH & Co. Kleiststrasse 3-6 10787 Berlin, Germany The administrator can be reached at: Christoph Rosenmueller Berliner Str. 117 10713 Berlin, Germany BISCHOFF KINOBETRIEBE: Creditors' Meeting Slated for June 27 ------------------------------------------------------------ The court-appointed provisional administrator for Bischoff Kinobetriebe GmbH, Christoph Rosenmueller, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:35 a.m., on June 27. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:30 a.m., on Oct. 24 at the same venue. Creditors have until Aug. 20 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Bischoff Kinobetriebe GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Bischoff Kinobetriebe GmbH Rhinstr. 127 10315 Berlin, Germany The administrator can be reached at: Christoph Rosenmueller Berliner Str. 117 10713 Berlin, Germany CUSTOMER GMBH: Claims Registration Ends June 21 ----------------------------------------------- Creditors of Customer GmbH have until June 21 to register their claims with court-appointed provisional administrator Frank Katzenberger. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 12, 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 Tuebingen Hall 208 2. OG Schulberg 14 72074 Tuebingen, 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 Tuebingen opened bankruptcy proceedings against Customer GmbH on May 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Customer GmbH Attn: Guido Maier, Manager Bulerstr. 60 72278 Wildberg, Germany The administrator can be contacted at: Frank Katzenberger Wilhelmstr. 78 75323 Bad Wildbad, Germany Tel: 07081/1303 D-METALLBEARBEITUNG: Claims Filing Period Ends June 30 ------------------------------------------------------ Creditors of D-Metallbearbeitung GmbH have until June 30 to register their claims with court-appointed provisional administrator Hans-Jorg Derra. 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 Goppingen Hall 0.24 Ground Floor Pfarrstrasse 25 73033 Goppingen, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Goppingen opened bankruptcy proceedings against D-Metallbearbeitung GmbH on May 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: D-Metallbearbeitung GmbH Attn: Karlheinz Thierbach, Manager Station Route 9 73111 Lauterstein, Germany The administrator can be contacted at: Hans-Jorg Derra Frauenstrasse 14 89073 Ulm, Germany Tel: 0731/922880 Fax: 0731/9228888 ESSENTIAL PUBLIC: S&P Assigns BB Rating to Class E Notes -------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR79 million floating-rate credit-linked notes to be issued by Essential Public Infrastructure Capital II GmbH. This transaction is sponsored by KfW and arranged by Merrill Lynch International. EPIC II is structured as a synthetic, partially funded CLO. The initial collateral consists of 42 individual senior, secured credit facilities, which are funding 32 public infrastructure projects sourced from the loan books of DEPFA BANK PLC and affiliates. "The purpose of the transaction is to transfer the credit risk associated with a pool of approximately EUR718 million public infrastructure credit facilities," said Standard & Poor's credit analyst Matthew Wiesner in Paris. "This is the first global transaction to securitize public infrastructure credit facilities related to projects in 11 jurisdictions, predominantly from EU and G7 countries. The various public-private partnership (PPP)/private finance initiative (PFI) programs include projects in construction as well as those already with established operations," said Standard & Poor's credit analyst Jonathan Manley in London. PFI/PPP transactions involve the design, construction, financing, and operation of long-term, public-sector social and economic assets including hospitals, roads, bridges and tunnels, light-rail, schools, and waste management assets by private sector debt and equity investors under a contractual, concession-based framework. Each transaction is contained within an SPE, which defines and limits its scope of activities, assets, and liabilities. This is DEPFA's second public securitization of credit facilities used to fund public infrastructure assets. In November 2004, DEPFA closed Essential Public Infrastructure Capital PLC, its first securitization of 24 public infrastructure credit facilities with an initial reference pool amount of GBP392 million originated entirely under the U.K.'s PFI or PPP program. Ratings List Essential Public Infrastructure Capital II GmbH EUR79 Million Floating-Rate Credit-Linked Notes Class Prelim. Prelim. ----- rating amount (Mil. EUR) ------ ------ A+ AAA 0.25 A AAA 45.00 B AA 9.00 C A 9.00 D BBB 9.00 E BB 6.75 HIB HAUS: Claims Filing Period Ends June 29 ------------------------------------------- Creditors of HIB Haus- und Industriebau GmbH have until June 29 to register their claims with court-appointed provisional administrator Ralf Klinge. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Aachen opened bankruptcy proceedings against HIB Haus- und Industriebau GmbH on May 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: HIB Haus- und Industriebau GmbH Rudolf-Renner-Str. 28 01796 Pirna, Germany The administrator can be contacted at: Ralf Klinge Konigsbruecker Road 33 01099 Dresden, Germany Web: http://www.raheumann.de/ HUNO GMBH: Claims Registration Ends June 28 ------------------------------------------- Creditors of HUNO GmbH have until June 28 to register their claims with court-appointed provisional administrator Torsten Gutmann. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 26, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Braunschweig E 01 Martinikirche 8 38100 Braunschweig, 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 Braunschweig opened bankruptcy proceedings against HUNO GmbH on May 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: HUNO GmbH Attn: Richard von Egdom and Juergen Brunke, Managers Braunschweiger Road 171 38259 Salzgitter, Germany The administrator can be contacted at: Torsten Gutmann Lueders Partnergesellschaft Zum Blauen See 5 D-31275 Lehrte, Germany Tel: 05132/826838 Fax: 05132/826896 KARSTADTQUELLE AG: Partly Cuts Supply to Smaller Stores ------------------------------------------------------- The Essen-based retail group KarstadtQuelle is partly discontinuing supply to 74 smaller KarstadtKompakt GmbH department stores. As the Group announced in Essen, this would initially relate to the textiles range, with effect from June 30. "Following the sale of the small department stores, we stated that we would continue to supply the new operators as a wholesaler during a transitional period. This period is now coming to an end. As agreed, brand items will continue to be supplied for the time being," said Prof. Helmut Merkel, member of the Management Board with responsibility for retail. The supply volume for the own brand textiles range is around EUR88 million, which Karstadt has supplied to the new operators at low price conditions on a wholesale basis during this period of transition. "We will gradually cease to supply the small department stores during the next few months. This will not affect earnings. However, it will bring noticeable relief to our organization," Mr. Merkel continued. "We are in the process of completely restructuring and improving the quality of our purchasing organization together with our new partner Li & Fung in Hong Kong. The contractually agreed wholesale activities would impede this," he said. The KarstadtQuelle Group anticipates a EUR500 million reduction in working capital per year and a reduction of up to 10% in purchasing prices due to the changes in purchasing and logistics. Headquartered in Essen, Germany, KarstadtQuelle AG -- http://www.karstadtquelle.com/-- is the country's largest department store and mail order group. It has annual sales of EUR13.5 billion and employs around 90,000. The retailer has been suffering from sluggish consumption and high unemployment rate in Germany. KarstadtQuelle posted an EBITDA of -EUR428 million in 2004. The group is currently restructuring operations by selling off non-core assets and implementing cost- saving measures. The group achieved and exceeded its targets for the 2005 financial year. Group sales, adjusted for the strong impact of the realignment, were EUR15.45 billion, compared to EUR16.14 billion in the previous year, down 4.2 percent. Adjusted EBITDA improved by 5.1 percent to EUR544 million, compared to EUR518 million in the previous year. In 2005, net financial liabilities were reduced by a third to EUR3.0 billion (including Thomas Cook), down from EUR4.5 billion in the previous year. MOBBY DICK: Claims Registration Ends June 21 -------------------------------------------- Creditors of Mobby Dick Betriebsgesellschaft mbH have until June 21 to register their claims with court-appointed provisional administrator Sven-Holger Undritz. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 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 Flensburg Hall A 220 Flensburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Flensburg opened bankruptcy proceedings against Mobby Dick Betriebsgesellschaft mbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Mobby Dick Betriebsgesellschaft mbH Attn: Dirk Muendlein, Manager Swittschau 18 24887 Silberstedt, Germany The administrator can be contacted at: Dr. Sven-Holger Undritz c/o White & Case Insolvenz GbR Westerallee 12 24937 Flensburg, Germany POULET & CIE.: Claims Filing Period Ends June 30 ------------------------------------------------ Creditors of Poulet & Cie. GmbH & Co. KG have until June 30 to register their claims with court-appointed provisional administrator Thorsten Konrad. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 19, 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 Heidelberg Hall 12 Kurfuerstenanlage 21 69115 Heidelberg, 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 Heidelberg opened bankruptcy proceedings against Poulet & Cie. GmbH & Co. KG on May 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Poulet & Cie. GmbH & Co. KG Attn: Werner Mannsperger, Manager Rudolf-Diesel-Str. 8 69115 Heidelberg, Germany The administrator can be contacted at: Thorsten Konrad Saarburger Ring 10-12 68229 Mannheim, Germany Tel: 0621/483240 Fax: 0621/483276 SMALL BUSINESS: Claims Filing Period Ends June 21 ------------------------------------------------- Creditors of Small Business Agency Limited have until June 21 to register their claims with court-appointed provisional administrator Ygglev Stintzing. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 12, 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 Flensburg Hall A 220 Flensburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Flensburg opened bankruptcy proceedings against Small Business Agency Limited on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Small Business Agency Limited Attn: Herrn Alexander Seiler, Manager Industrial Road 32 24848 Kropp, Germany The administrator can be contacted at: Ygglev Stintzing Rathausstrasse 1 24937 Flensburg, Germany =========== G R E E C E =========== COMMERCIAL VALUE: Fitch Affirms Insurer Financial Strength at BB ---------------------------------------------------------------- Fitch Ratings affirmed Commercial Value AAE an Insurer Financial Strength rating of BB with Stable Outlook. The rating reflects CV's high investment risk, as well as weak risk management and corporate governance. Profitability, although improving, remains low amid challenging conditions in the Greek motor market. Offsetting these negatives are CV's competitive positioning in the Greek marker, the company's product diversification, the relatively low risk profile of its life products portfolio and the company's good capital position. Fitch is concerned that the company's unit-linked investments are concentrated in Aspis Group companies. Fitch also identified a significant exposure to the financial sector in both the bond and equity portfolios while the relatively high level of investment in real estate is an additional risk factor. Fitch considers CV's risk management and corporate governance framework weak. There is no dedicated risk management team in place and, as mentioned, the company's unit-linked investments are highly concentrated in the other Aspis Group companies. Although the company's accounts were qualified in 2004, the quantum of the qualification was not in itself material. Fitch notes that the 2005 accounts still contained an emphasis of matter. CV is well positioned to benefit in the medium to long term from the developments in the Greek life and non-life insurance marketplace. The company's experience in successfully integrating six different businesses is valuable in the context of its strategy of targeted acquisitions. Fitch views positively the company's balanced exposure to life and non-life risks. Fitch notes the diversification benefits of CV's strength in marine business since this line is loosely correlated to the rest of the non-life book. A high proportion of CV's life and health products sales are unit-linked products, which carry lower risk. Fitch notes the relatively high level of guarantees on CV's long-term products; however, the agency considers that the company's charging structure is adequate to mitigate this potential risk. CV's exposure to earthquake risk is significant but Fitch views that the reinsurance program in place provides an appropriate level of cover. Fitch also assessed the reinsurance program in respect of CV's other lines of business and considers it to be adequate. The agency notes that the company has managed to reduce expenses and steadily improve earnings since 2003. However, these improvements in operating performance were not sufficient to cover the full extent of extraordinary write-offs and tax payments. Fitch expects strong premium growth from CV in 2006, above management expectations of EUR135 million. The operating performance is expected to remain relatively low but to continue to improve as the company benefits from lower expense ratios. The capital position is expected to reduce in 2006 as retained earnings will not compensate for the greater premium volume and the purchase of 32% of Universal Life. EMPORIKI BANK: Fitch Affirms Individual Rating at C/D ----------------------------------------------------- Fitch Ratings placed Greece-based Emporiki Bank's Issuer Default Rating of BBB, Short-term rating of F3 and Support rating of 2 on Rating Watch Positive. Emporiki's Individual rating of C/D is affirmed. At the same time, the agency has affirmed France-based Credit Agricole's as well as its central body at AA with Stable Outlook, Short term F1+ and Support 1. The Individual rating of CA is affirmed at B. The rating actions follow the bid offer made by CASA to acquire the remaining 91% stake in Emporiki. The acquisition is valued at around EUR2.8 billion. This transaction is going to be financed with cash. While the acquisition is subject to regulatory and shareholders approval, the RWP reflects Fitch's view that there is a high probability for CASA to acquire a controlling stake in Emporiki. CASA currently has an 8.8% stake in Emporiki and has been the single largest strategic shareholder since its entry in 2000. Emporiki also operates joint ventures with CASA in bancassurance/life insurance and cooperates closely in asset management, investment banking and consumer credit. Upon the completion of the acquisition, expected by end-August 2006, Emporiki's IDR, Short-term and Support ratings, assuming there are no counter-offers, are likely to be upgraded. The extent of the upgrade will depend on ultimate ownership levels achieved and potential for institutional support. This move fits in with CASA's international development strategy as well as the Greek government's announcement to fully privatize Emporiki. CASA's action plan for Emporiki is underpinned by five pillars: constructing a platform for sustainable growth; improving risk management; increasing market share, productivity and customer satisfaction; improving human resource management; and ongoing discipline in cost control. In Fitch's opinion, the influence of a strong international financial group such as CA will be beneficial for Emporiki. Also, CA is capable of absorbing this acquisition without any significant deterioration in its overall financial performance and solvency. Emporiki is the fourth largest commercial bank in Greece by total assets with some 10% of the domestic lending market. At end-2005 the group had 7,657 staff and 373 branches in Greece and a limited presence in southeast Europe. CA is not a legal entity but a cooperative banking group. Its 42 regional banks as well as its central body CASA subscribe to a legally binding cross-guarantee mechanism. CA is the second- largest banking group in Europe by equity. Retail banking in France represents the bulk of CA's pre-tax profits, but corporate and investment banking, and asset management, insurance and private banking, are significant contributors. ========= I T A L Y ========= BANCA POPOLARE: Fitch Downgrades Issuer Default Rating to BB ------------------------------------------------------------ Fitch Ratings downgraded Italy-based Banca Popolare di Intra's Issuer Default rating to BB from BBB-, Individual rating to D/E from D and Short-term rating to B from F3. The IDR and Short-term ratings are removed from Rating Watch Negative. At the same time the agency has affirmed Intra's Support rating at 3. A Stable Outlook is assigned as the IDR is now at its support floor. The downgrade of the bank's IDR reflects an increasing risk that the expected acquisition of Intra by another Italian cooperative will be materially delayed. Fitch's expectations that Intra would be acquired had underpinned the bank's IDR at investment- grade level since the downgrade of Intra's IDR to BBB- and Short-term rating to F3 and their placement on RWN in February 2006. The ratings were put on RWN following large loan loss provisions as a result of the bank's exposure to the defaulted Finpart. In Fitch's opinion, the delay in the acquisition process increases the risk faced by Intra given its significantly weakened financial situation as a result of losses stemming from Finpart. Intra had originally expected to receive binding offers from prospective acquirers by early June with the transaction to be approved by a shareholders' meeting in late July. However, the bank has had to postpone the final terms for the binding offers without fixing a new date as it plans to resolve a claim presented by the trustees of the defaulted Finpart first. A decision on this case is expected by June 23, following which Intra will set a new timetable for the acquisition process. Despite this delay, Fitch still considers an acquisition of Intra by on one of the four large regional cooperative banks, Banco Popolare di Verona e Novara, Banca Popolare di Vicenza, Veneto Banca and Credito Valtellinese are very probable. Once a binding offer has been presented, Fitch will review Intra's ratings with the likely result of placing Intra's IDR and Short-term rating on Rating Watch Positive pending the completion of the transaction. The downgrade of Intra's Individual rating reflects further deterioration of the bank's capital adequacy and asset quality. Intra reported a further EUR10 million net loss in Q106 as a result of a EUR25 million provision against legal risks after its FY05 EUR113 million net loss. Intra's losses have depleted its equity, demonstrated by its tier 1 capital ratio reaching c.5.4% at end-March 2006, which Fitch considers insufficient given the bank's large stock of impaired loans. Intra's reputation and corporate governance have also suffered from recent events as the bank has, since April 2006, lost six of its 13 board members, including the chairman, and the general manager. Intra is a small cooperative bank with a strong local franchise. It operates through distribution network covering a number of prosperous provinces in Piedmont and Lombardy, benefiting from long-standing relationships with local families and small- and medium-sized enterprises. SEAT PAGINE: Fitch Places BB- on Issuer Default Rating ------------------------------------------------------ Fitch Ratings placed Seat Pagine Gialle SpA's an Issuer Default rating of BB- with Stable Outlook. Fitch also assigned rating of BB to Seat's senior secured facilities, and B+ to the senior notes issued by Lighthouse International Company S.A. The ratings reflect: -- Seat's strong cash flow generation; -- dominant position in the Italian market; -- its stable position in the U.K.; and -- its growing presence in the directory assistance market across Europe. Fitch expects operating performance to improve as post-LBO management's refocusing of the group's activities continues. The key constraint on ratings is Seat's high financial leverage, with net debt/EBITDA of 5.8x and interest cover of 2.65x. This year should mark a turnaround for Seat's Italian printed directory business as improvements to the marketing organization and product begin to bear fruit. Fitch expects to see the impact of these improvements later in 2006. A key rating factor is the performance of this part of the business, which has seen falling sales in the last two years due to management's rationalization of the customer list and slower demand amid challenging economic conditions in Italy. Developments in online markets will also be key to Seat's future development, even given the relatively underdeveloped use of the Internet in Italy. So far Seat appears to be having success in migrating its strong position in printed directories to online, though the process is still in its early stages and may falter. Cash flow generation continues to be good with the business generating Free Cash Flow of EUR317 million in 2005. The company is committed to debt reduction. Net debt fell to EUR3.6 billion in FYE05 from EUR3.9 billion in FYE04 with debt repayments proceeding ahead of mandatory amortization. A further EUR101 million of gross debt was prepaid in February 2006. Seat's debt consists of a senior secured facility of EUR2.6 billion with the Royal Bank of Scotland plc and senior notes issued by Lighthouse International Company S.A. and on-lent to Seat. The senior notes benefit from a number of securities, including a share pledge over the 49.9% shares held by the private equity sponsors in the company, though their claims are subordinated to those of the senior secured lenders and certain hedge counterparties in the event of default. The BB rating assigned to the senior secured debt reflects Fitch's experience of recoveries on this type of debt in the defaulted bond market based on its scale and the security package. The B+ rating assigned to the senior notes reflects the more limited recoveries anticipated for this instrument. Seat announced at its FY05 results presentation that it would seek to perform a receivables securitization program of approximately EUR300 million. The receipts from this would be entirely used to prepay part of the senior secured facilities. On the basis that this essentially represents one type of debt being replaced by another, it is likely to have a limited effect on credit quality beyond the mildly positive impact of a reduction of Seat's interest costs. The final impact cannot be determined before the deal is concluded and the details of the securitization are known. =================== K A Z A K H S T A N =================== ALTAIENERGO: Creditors Must File Claims by June 23 -------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared JSC Altaienergo insolvent on March 24. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until June 23 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Svetochnaya Str. 4 Shemonahia 071800 East Kazakhstan Region Kazakhstan Tel: 8 (32332) 3-12-79 8 (30041) 4-22-05 BAKTYBEK: Kyzylorda Court Opens Bankruptcy Proceedings ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceedings against LLP Baktybek 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 DEN: Creditors Must File Claims by June 23 ------------------------------------------ LLP Joint Kazakh-Turkish Enterprise Den has declared insolvency. Creditors have until June 23 to submit written proofs of claim to: LLP Joint Kazakh-Turkish Enterprise Den Neftebaznaya Str. 1 Osakarovka Karaganda Region Kazakhstan EKO-ASTANA-ALFA: Claims Registration Ends June 23 ------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Eko-Astana-Alfa insolvent on March 27. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until June 23 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Svetochnaya Str. 4 Shemonahia 071800 East Kazakhstan Region Kazakhstan Tel: 8 (32332) 3-12-79 8 (3004) 14-22-05 KOMPANYA PAVLODAR-KONSALTING: Claims Registration Ends June 23 -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Kompanya Pavlodar-Konsalting (Case No. 2-708/06) insolvent on March 30. Creditors have until June 23 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Region Katayeva Str. 24-8 Pavlodar, Kazakhstan Tel: 8 (3002) 28-47-28 LENINOGOR FOREST: Proof of Claim Deadline Slated for June 23 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Leninogor Forest insolvent on March 27. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until June 23 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Svetochnaya Str. 4 Shemonahia 071800 East Kazakhstan Region Kazakhstan Tel: 8 (32332) 3-12-79 8 (30041) 4-22-05 MERKATA OIL: Proof of Claim Deadline Slated for June 23 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Merkata Oil Inc. (Case no. 2-707/06) insolvent on March 30. Creditors have until June 23 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Region Katayeva Str. 24-8 Pavlodar, Kazakhstan Tel: 8 (3002) 28-47-28 MIRAKOM: Creditors' Claims Due June 23 -------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Mirakom insolvent on March 30. Creditors have until June 23 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Region Katayeva Str. 24-8 Pavlodar, Kazakhstan Tel: 8 (3002) 28-47-28 NURLAN: Kyzylorda Court Begins Bankruptcy Proceedings ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceedings against LLP Nurlan 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 SULEIMEN: Kyzylorda Court Starts Bankruptcy Process --------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceedings against LLP Suleimen on April 20. =================== K Y R G Y Z S T A N =================== M.H. INTERNATIONAL: Creditors Must File Claims by Aug. 7 -------------------------------------------------------- LLC M.H. International has declared insolvency. Creditors have until Aug. 7 to submit written proofs of claim to: LLC M.H. International Izmailovsky Side Street 68 Bishkek, Kyrgyzstan Tel: (0-502) 32-62-20 PROMENERGOSERVIS: Proof of Claim Deadline Slated for Aug. 8 ----------------------------------------------------------- LLC Promenergoservis has declared insolvency. Creditors have until Aug. 8 to submit written proofs of claim to: LLC Promenergoservis Manasa Str. 28-110 Bishkek, Kyrgyzstan Tel: (+996 312) 21-99-83 (+996 312) 95-59-25 ROOFING AND INSULATING: Claims Registration Ends Aug. 8 ------------------------------------------------------- LLC Roofing and Insulating Materials has declared insolvency. Creditors have until Aug. 8 to submit written proofs of claim. The company can be contacted at (+996 312) 54-08-91 or 54-10-36. =========== R U S S I A =========== AMUR-INVEST: Amur Court Starts Bankruptcy Supervision ----------------------------------------------------- The Arbitration Court of Amur Region has commenced bankruptcy supervision procedure on CJSC Amur-Invest. The case was docketed under Case No. A04-482/06-10/34 b. The Temporary Insolvency Manager is: V. Dmitrov Section 308 Office 2 50 Let Oktyabrya Str. 33 Svobodnyj 676450, Amur Region, Russia The Debtor can be reached at: CJSC Amur-Invest Lunacharskogo Str. 38 Svobodnyj Amur Region, Russia EAST TRADING: Altay Court Opens Bankruptcy Proceedings ------------------------------------------------------ The Arbitration Court of Altay republic commenced bankruptcy proceedings against CJSC East Trading Society after finding it insolvent. The case is docketed under Case No. A02-4061/2005. The Temporary Insolvency Manager is: V. Poroshkov Post User Box 337. 630102 Novosibirsk, Russia The Debtor can be reached at: CJSC East Trading Society Kommunisticheskiy Pr. 53 Gorno-Altaysk Altay Republic, Russia GENERAL MOTORS: Eyes Chevrolet SUVs in St. Petersburg by 2008 ------------------------------------------------------------- General Motors will build a greenfield manufacturing facility in the Shushary region of St. Petersburg, Russia, to produce Chevrolet Captiva SUVs and a new generation of compact cars from CKD kits. The plant will go on stream in late 2008 with initial full-year capacity of 25,000 units. The carmaker will begin operating in a separate SKD facility in St. Petersburg as early as September this year. This facility will assemble the Chevrolet Captiva until the Shushary facility begins production. Total investment in the new facilities amounts to US$115 million. At a ground-breaking ceremony in Shushary on June 13, General Motors Chairman and CEO Rick Wagoner said, "This project clearly demonstrates our commitment to Russia as one of the world's fastest growing auto markets. With the addition of this new, wholly-owned facility, GM and its partners will be able to assemble more than 100,000 cars a year in Russia." The new assembly plant on the outskirts of St. Petersburg will employ more than 700 people who will be recruited specifically for their ability to set up and operate a world-class production facility. "We are delighted that General Motors has recognized the value of strategic investment projects in our city," said Governor of St. Petersburg, Valentina I. Matvienko. "We will endeavor to repay this trust by ensuring that General Motors is satisfied with the choice of its newest manufacturing plant. It is my fervent hope that General Motors has blazed a trail that its suppliers will soon follow to enjoy the benefits the St. Petersburg region offers." In order to leverage the company's global manufacturing expertise, GM's leading assembly plants will host numerous new employees from Shushary for comprehensive training programs. The groundbreaking ceremony for the new plant coincides with record sales for GM in Russia. More than 11,000 registrations in May represent an 80 percent increase over May 2005. "With five brands on the market, we offer Russian customers more choice than any other manufacturer," said Carl-Peter Forster, President of GM Europe. "The St. Petersburg plant and the new Chevrolet cars it builds will give us another boost in this very important market." Chevrolet is GM's best-selling brand in Russia, with sales of over 35,000 in the first five months of the year. In 2005, Chevrolet was the number two non-domestic brand on the Russian market, taking over the number one position in the month of April this year. The separate SKD operation in the city of Saint Petersburg will go into operation in September and have an annual capacity of over 4000 units. This is an interim solution that will end when the new CKD plant in Shushary goes on stream in 2008. GM has been active in Russia since 1992. The St. Petersburg project complements existing GM operations in Togliatti and Kaliningrad. Established in Togliatti in 2001 as the first joint venture on the Russian automotive market, GM Avtovaz builds the Chevrolet Niva and Viva. GM, with partner Avtotor, began SKD operations in Kaliningrad in 2004 and now assembles Cadillac, Hummer and Chevrolet models. Russia, with a population of 143 million, is one of the most dynamic car markets in the world. Year-on-year sales growth has accelerated from 9 percent in 2005 to 17 percent in the first four months of this year. Vehicle ownership has now reached a ratio of 178 cars to 1000 people. About General Motors General Motors Corp. -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries including Mexico. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 9, Moody's Investors Service placed the B3 senior unsecured rating of General Motors Corporation under review for possible downgrade, and affirmed the company's Corporate Family Rating at B3. The rating actions are in response to the company's disclosure that it is pursuing various options to replace or amend its existing US$5.6 billion bank credit facility, and that these options could result in providing its bank lenders with a security interest in certain GM assets. GM anticipates that any credit facility replacement or amendment will be completed by the end of the second quarter or early in the third quarter. KOPKULSKOYE: Novosibirsk Court Starts Bankruptcy Proceedings ------------------------------------------------------------ The Arbitration Court of Novosibirsk Region commenced bankruptcy proceedings against CJSC Kopkulskoye after finding it insolvent. The case is docketed under Case No. A45-17530/05-27-276. The Insolvency Manager is: Mr. Ya. Gomerov Post User Box 325. Krasnoobsk-1 630501 Novosibirsk Region, Russia The Debtor can be reached at: CJSC Kopkulskoye Kopkul Kupinskiy Region 632760 Novosibirsk Region, Russia MB CAPITAL: Fitch Puts Long-Term B Rating on Upcoming Loan Issue ---------------------------------------------------------------- Fitch Ratings assigned MB Capital S.A.'s upcoming issue of loan participation notes expected ratings of Long-term B and Recovery RR4. The notes are to be used solely for financing a loan to Russia's Moscow Bank for Reconstruction and Development. The final ratings are contingent upon receipt of final documentation conforming materially to information already received. MBRD's obligations under the loan agreement will rank at least pari passu with all other unsecured and unsubordinated obligations of the bank, save those preferred by relevant legislation. Under Russian law, the claims of retail depositors rank above those of other senior unsecured creditors. At end- 2005, retail deposits accounted for 19% of MBRD's total liabilities, according to the bank's International Financial Reporting Standards accounts. Furthermore, MBRD's balance sheet is dominated by related-party transactions which, in Fitch's opinion, could give rise to additional risks for bondholders in a default scenario, albeit not to the extent that these would justify a lower Recovery Rating than RR4 for the currency transaction. Other covenants limit mergers and disposals by MBRD and its subsidiaries. They also stipulate that transactions between the bank and its affiliates must be entered into on market terms, which is to be confirmed by an independent appraiser in respect to transactions of more than US$25 million. MBRD has also covenanted to maintain a total capital ratio of no less than 10% or 12%. The loan agreement contains a cross default clause and a negative pledge clause, which allows for a degree of securitization by MBRD. In the event of such securitization, Fitch comments that the nature and extent of any over- collateralization would be assessed by the agency for any potential impact on unsecured creditors. Noteholders will benefit from a put option should a rating downgrade result from Sistema Joint Stock Financial Corp. ceasing to own or control 50% plus one share of voting share capital of MBRD or no longer having the right to appoint or remove a majority of the bank's Board of Directors. Sistema is currently the bank's major shareholder with an approximately 96% stake, and MBRD's Issuer Default, Short-term and Support ratings reflect the limited probability of support being forthcoming from Sistema in case of need. MBRD was founded in 1993, and at end-2005 ranked among the 35 largest Russian banks by total assets. Its parent, Sistema, a financial industrial group, has subsidiaries in many sectors, although its primary area of focus is telecommunications. SIB-STEEL-MECHANIZATION: Court Opens Bankruptcy Proceedings ----------------------------------------------------------- The Arbitration Court of Kemerovo Region commenced bankruptcy proceedings against CJSC Sib-Steel-Mechanization after finding it insolvent. The case is docketed under Case No. A27-21368/2005-4. The Insolvency Manager is: I. Luchshev Office 407 Druzhby Str. 39 Novokuznetsk 654006 Kemerovo Region, Russia The Debtor can be reached at: CJSC Sib-Steel-Mechanization Klimasenko Str. 5-3 Novokuznetsk 654038 Kemerovo Region, Russia TARSKIY MEAT: Court Starts Bankruptcy Supervision ------------------------------------------------- The Arbitration Court of Omsk Region has commenced bankruptcy supervision procedure on OJSC Meat Combine Tarskiy. The case was docketed under Case No. A-46-413/2006. The Insolvency Manager is: V. Evdokeevich K.Marksa Pr. 18/6 Omsk, Russia The Debtor can be reached at: OJSC Meat Combine Tarskiy Tary Omsk Region, Russia TRANS-SIB-OIL: Court Starts Bankruptcy Proceedings ------------------------------------------------- The Arbitration Court of Novosibirsk Region commenced bankruptcy proceedings against LLC Trans-Sib-Oil after finding it insolvent. The case is docketed under Case No. A45-11063/ 05-27-165. The Insolvency Manager is: E. Bolonskiy Office 13 Spartaka Str. 8/4 630007 Novosibirsk, Russia The Debtor can be reached at: LLC Trans-Sib-Oil Kubovaya Str. 60 630040 Novosibirsk, Russia PIONER: Sverdlovsk Court Commences Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Sverdlovsk Region has commenced bankruptcy supervision procedure on OJSC Breeding Factory Pioner. The case is docketed under Case No. A60-650/06-S11. The Temporary Insolvency Manager is: V. Kiryaev Vikulova Str. 35/1 -136 620131, Ekaterinburg, Russia Tel: 8-912-26-22-917 The Debtor can be reached at: OJSC Breeding Factory Pioner Pionerskiy Talitskiy Region Sverdlovsk Region, Russia VOLOVO-AGRO-PROM-KHIMIYA: Court Commences Bankruptcy Proceedings ---------------------------------------------------------------- The Arbitration Court of Lipetsk Region commenced bankruptcy proceedings against OJSC Volovo-Agro-Prom-Khimiya (TIN 7132000433) after finding it insolvent. The case is docketed under Case No. A36-3389/2005. The Temporary Insolvency Manager is: N. Tyunin Zavodskaya Str. 2 Leninskiy 301130 Tula Region, Russia The Debtor can be reached at: OJSC Volovo-Agro-Prom-Khimiya Sovetskaya Str. 115 Volovo Volovskiy Region Lipetsk Region, Russia WOOD-WORKER: Bankruptcy Hearing Slated for Dec. 13 -------------------------------------------------- The Arbitration Court of Irkutsk Region will convene on Dec. 13 at 10:00 a.m. to hear the bankruptcy proceedings against CJSC Wood-Worker (TIN 3819008287) after finding it insolvent. The case is docketed under Case No. A19-11497/05-37. The Temporary Insolvency Manager is: T. Mineeva Post User Box 95 664031 Irkutsk, The Debtor can be reached at: CJSC Wood-Worker Krupskoy Str. 50 Usolye-Sibirskoye Irkutsk Region, Russia ========= S P A I N ========= BANKINTER 2: S&P Assigns Ratings to EUR800 Million Notes -------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR800 million asset-backed floating-rate notes to be issued by Bankinter 2 PYME, Fondo de Titulizacion de Activos, an SPE. This is the 14th securitization undertaken by Bankinter S.A. Bankinter 2 PYME is the second CLO of loans originated to SME corporate clients. This securitization comprises a mixed pool of underlying mortgage-backed and unsecured assets. The originator of this transaction is Bankinter, which ranks among the top 10 Spanish banks. The entity focuses on three main areas: -- retail banking; -- wholesale corporate and SME banking; and -- private banking. The portfolio is highly seasoned, with a 26-month weighted- average seasoning of assets. All loans repay annuity-style, via direct debit. Ratings List Bankinter 2 PYME, Fondo de Titulizacion de Activos EUR800 Million Asset-Backed Floating-Rate Notes Class Prelim. Prelim. rating amount (Mil. EUR) ----- ------ ------ A1 AAA 49.0 A2 AAA 682.0 B A+ 16.2 C BBB 27.5 D BB 10.7 E (1) CCC- 14.6 (1) The class E notes will be issued to fund the reserve fund. =========== T U R K E Y =========== DENIZBANK A.S.: Gets US$500 Million Loan From Bank Syndicate ------------------------------------------------------------ Denizbank A.S. has obtained a US$500 million one-year credit facility under a syndicated loan agreement from a consortium of 20 banks from 11 countries, seeurope.net cited Anatolia news agency. According to the report, the total cost of the credit is 0.575 percent including interest rate, commission and LIBOR. Denizbank is 75%-owned by Zorlu Holding with 25% publicly traded. The bank is a medium-sized institution with 230 branches nationwide and owns banks in Austria and Russia. * * * As reported in TCR-Europe on June 5, Fitch Ratings placed Turkey-based Denizbank's local currency Issuer Default BB-, National Long-term A and Support 4 ratings on Rating Watch Positive, following the announcement from Belgium-based Dexia that it is planning to acquire 75% of the bank from Zorlu Holding. At the same time, Fitch affirmed Denizbank's other ratings at foreign currency Issuer Default BB-, Short-term foreign and local currency B and Individual C/D. The Outlook on the foreign currency Issuer Default rating is Stable. Fitch also affirmed Dexia at IDR AA+ with Stable Outlook, Short-term F1+ and Individual A/B. ============= U K R A I N E ============= BIKIVKA' GLASS: Court Names Oleg Shklyar as Insolvency Manager -------------------------------------------------------------- The Economic Court of Zhitomir Region appointed Oleg Shklyar as Liquidator/Insolvency Manager for OJSC Bikivka' Glass Products Plant (code EDRPOU 05766132). He can be reached at: Oleg Shklyar Room 304 Putyatinski Square 2 10002 Zhitomir Region, Ukraine Phone/Fax: (0412) 34-04-44 The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 6. The case is docketed under Case No. 3/101 B. The Economic Court of Zhitomir Region is located at: Putyatinski Square 3/65 10002 Zhitomir Region, Ukraine The Debtor can be reached at: OJSC Bikivka' Glass Products Plant Lenin Str. 1 Bikivka Romanivskij district Zhitomir Region, Ukraine BLITS: Court Begins Bankruptcy Proceedings ------------------------------------------ The Economic Court of Dnipropetrovsk Region commenced bankruptcy proceedings against LLC Blits (code EDRPOU 13424552) insolvent after finding it insolvent on March 17. The case is docketed under Case No. B 15/97/04. The Liquidator/Insolvency Manager is: Mr. V. Aksuk a/b 1222 Krivij Rig 50027 Dnipropetrovsk Region, Ukraine The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region, Ukraine The Debtor can be reached at: LLC Blits Chubar Str. 41/2 Nikopol 53210 Dnipropetrovsk Region, Ukraine ENERGOTRANZIT: Court Commences Bankruptcy Proceedings ----------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy proceedings against LLC Energotranzit (code EDRPOU 30576282) after finding it insolvent on April 4. The case is docketed under Case No. 15/280-b. The Liquidator/Insolvency Manager is: Dmitro Maltsev a/b 223 02002 Kyiv Region Tel/Fax: 8 (044) 253-55-61 The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine The Debtor can be reached at: LLC Energotranzit Melnikov Str. 8/22 01023 Kyiv Region, Ukraine INTERNET BUSINESS-CENTER: Oleksandr Shevchik to Liquidate Assets ---------------------------------------------------------------- The Economic Court of Kyiv Region appointed Oleksandr Shevchik as Liquidator/Insolvency Manager for LLC Internet Business- Center (code EDRPOU 24369655). The Court commenced bankruptcy proceedings against the company after finding it insolvent on March 28. The case is docketed under Case No. 15/131-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine The Debtor can be reached at: LLC Internet Business-Center Metalistiv Str. 17 03057 Kyiv Region, Ukraine KAPELLAS: Court Names Sergij Kulchitskij as Liquidator ------------------------------------------------------ The Economic Court of Odessa Region appointed Sergij Kulchitskij as Liquidator/Insolvency Manager for LLC Kapellas (code EDRPOU 33558046). He can be reached at: Sergij Kulchitskij Shkilnij Lane 4/23 Illichivsk 68000 Odessa Region, Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on March 28. The case is docketed under Case No. 2/83-06-2811. The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region, Ukraine The Debtor can be reached at: LLC Kapellas Shkilnij Lane 4/23 Illichivsk 68000 Odessa Region, Ukraine KOMERTS-CAPITAL-PLUS: Yurij Ignatchenko to Manage Assets -------------------------------------------------------- The Economic Court of Kyiv Region appointed Yurij Ignatchenko as Liquidator/Insolvency Manager for LLC Komerts-Capital-Plus (code EDRPOU 32488119). He can be reached at: Kotovskij Str. 9 Kozelshina Poltava Region, Ukraine Tel/Fax: 8 (044) 234-71-39 The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 3. The case is docketed under Case No. 24/190-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine The Debtor can be reached at: LLC Komerts-Capital-Plus P. Grigorenko Str. 3-a/106 Ukraine, Kyiv Region SKRIMPRO: Donetsk Court Opens Bankruptcy Proceedings ---------------------------------------------------- The Economic Court of Donetsk Region commenced bankruptcy proceedings against LLC Production Studio Skrimpro (code EDRPOU 31534259) insolvent after finding it insolvent on April 3. The case is docketed under Case No. 5/221 B. The Liquidator/Insolvency Manager is: L. Paramonova Universitetska Str. 35/18 83055 Donetsk Region, Ukraine The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region, Ukraine The Debtor can be reached at: LLC Production Studio Skrimpro Magistralna Str. 15/369 Gorlivka 84642 Donetsk Region, Ukraine UKRAINIAN ENERGETIC: Court Starts Bankruptcy Proceedings -------------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy proceedings against LLC Engineering-Technical Company 'Ukrainian Energetic Industry' (code EDRPOU 32422635) after finding it insolvent on April 4. The case is docketed under Case No. 15/747-b. The Liquidator/Insolvency Manager is: Volodimir Oksanich a/b 265 03150 Kyiv Region, Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine =========================== U N I T E D K I N G D O M =========================== CHARTERHOUSE FOOD: Hires Menzies as Joint Administrators -------------------------------------------------------- Paul John Clark and Jason James Godefroy of Menzies Corporate Restructuring were appointed joint administrators of The Charterhouse Food Group Limited (Company Number 05509042) on May 19. Headquartered in London, Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- is a member of Moores Rowland International, an association of independent accounting firms throughout the world with some 20,800 partners and staff, operating from 628 offices in 92 countries. MRI, which is ranked 8th amongst the leading international accounting associations, achieved global revenues of US$1,800 million in 2003. DURA AUTOMOTIVE: Plans to Shut Down Llaneli Facility ---------------------------------------------------- Dura Automotive Systems Inc. intends to cut 270 jobs as it seeks to shutdown its Llanelli plant by year-end to improve overall capacity utilization, according to published reports. Dura's UK facility is the second plant to shutdown following the Ontario, Canadia plant closure announced by the company in May. The company blames competition in the motor industry for the plant closures. "We operate in a very competitive automotive environment and are closely examining all of our facilities to ensure we meet our 50-cubed goals," Dura's Chairman and Chief Executive Larry Denton disclosed in a statement. The Associated Press said the company devised a 50-cubed efficiency strategy in February to improve performance goals in quality, worldwide efficiency and profitability. This included a restructuring plan that was directed in closing about five to 10 manufacturing facilities worldwide by the end of next year. Headquarted in Rochester Hills, Michigan, DURA Automotive Systems, Inc., -- http://www.duraauto.com/-- is a leading independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer (OEM) and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. * * * As reported by the Troubled Company Reporter on Feb. 13, Standard & Poor's Ratings Services lowered its corporate credit rating on Dura Automotive Systems Inc. to 'B-' from 'B'. EUROTUNNEL GROUP: Postpones Annual General Meeting to July 27 ------------------------------------------------------------- Eurotunnel Group has postponed its Annual General Meeting until July 27 to address its financial restructuring. "Eurotunnel is entirely conscious of the upset that this postponement could cause to shareholders, with whom it shares dissatisfaction with the delay generated, but the Group intends to give every opportunity of success to the consensual restructuring process," the Company said. As reported in TCR-Europe on June 2, Eurotunnel signed a binding Preliminary Restructuring Agreement with the Ad Hoc Committee on May 23, following 10 months of negotiations. The restructuring plan is strengthened by a financing commitment from a group of financiers and investors comprised of Goldman Sachs, Barclays and Macquarie. The Agreement preserves, as far as possible, the interests of all the parties involved. It is being presented to the other debt holders and will be presented to Eurotunnel shareholders at the next General Meeting. The economics of this Agreement include: -- debt reduction of approximately GBP3.3 billion; -- a total "corporate" style debt of GBP2.9 billion, made up of three tranches: new Senior debt, Tier 1A and mezzanine; -- listed hybrid notes for a nominal amount of GBP1 billion, convertible from 2009; and -- the establishment of accretion mechanisms for the existing Eurotunnel shareholders: warrants and the possibility for the Group to buyback the hybrid notes. The financial restructuring, if accepted, will be implemented through the incorporation of a new French parent company, which will, in autumn 2006, launch an exchange offer, in the UK and France, to holders of Eurotunnel Units. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. * * * Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faces uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. Eurotunnel needs to obtain approval from other creditors and shareholders for a final agreement. Absent a final agreement, the Group may default in January 2007. On April 26, Eurotunnel obtained a third extension of its credit waiver, which calls for creditor talks to continue through July 12. GENERAL MOTORS: Eyes 502,000 Vehicles From Europe in 2nd Quarter ---------------------------------------------------------------- General Motors dealers in the United States sold 345,157 new cars and trucks in May 2006, down 16% compared to year-ago levels, reflecting continued strategic reductions in incentives and daily rentals, which were down 28 percent. Total car sales were down 19 percent, and truck sales were down 13 percent. While high gas prices continue to have some impact, consumers have responded favorably to GM's new products, particularly the all-new 2007 Chevy Tahoe (11,689 sales), Avalanche (1,692) and Suburban (5,128), GMC Yukon/Yukon XL (7,965) and Cadillac Escalade (2,945) and Escalade ESV (1,097), resulting in a combined 41 percent sales increase compared to April. "The overall industry in May was dampened by rising fuel prices and interest rates. GM is actively addressing consumers' concerns with its segment-leading fuel economy and a pilot program like the 'Fuel Price Protection Program,' which helps consumers battle the uncertainty of gas price fluctuations," said Mark LaNeve, General Motors North America vice president, Vehicle Sales, Service and Marketing. A very encouraging trend was the continued success of GM's new vehicles. Mr. LaNeve explained, "Our launch vehicles continue to post strong sales results, as evidenced by the sales gains of our all-new full-size utilities and strong retail sales of important new products including the Chevrolet Impala, HHR and Cobalt, Buick Lucerne, Pontiac G6 and Torrent." LaNeve added, "Our May sales volume was not where we need it to be. It clearly was impacted by our reduced reliance on daily rental sales and broad-based incentive programs to drive the business." "Our customers have told us that success in the marketplace depends on a combination of great new products, strong brands and segment-leading fuel economy, and that is exactly the turnaround strategy we are executing," Mr. LaNeve said. GM's luxury utilities posted strong sales in May, up 34 percent compared to year-ago levels. H3 sales led HUMMER to its thirteenth consecutive month of year-over-year sales increases. Total HUMMER sales were up 53 percent. Cadillac Escalade sales rose 50 percent in May, paced by continuing brisk demand for the all-new 2007 model. Cadillac Escalade ESV sales started strong with 1,097 sold. The newest additions to GM's small utility lineup, Chevrolet HHR and Pontiac Torrent, helped push total small utility sales up 34 percent. GM sports cars also posted solid May sales results, with a 44 percent improvement compared to year-ago levels. Corvette led the lineup with a 3.5% increase with 3,317 deliveries. Pontiac Solstice and Saturn Sky are selling briskly, with Solstice remaining on dealers' lots an average of 13 days and Sky remaining on lots 2 days. Total sales of all GM launch vehicles were up 12.5% compared to April and accounted for 24% of GM's total deliveries for the month. The success of GM's launch vehicles is another critical component of GM's North America restructuring plan. GM will continue to introduce an array of new vehicles throughout 2006, including the all-new Chevrolet Silverado and GMC Sierra full-size pickups, the fuel-efficient Saturn Vue Green Line Hybrid to be introduced this fall, and GMC Acadia and Saturn Outlook crossovers coming late this year. Certified Used Vehicles May sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Used Cars from Saturn, Saab Certified Pre-Owned Vehicles and HUMMER Certified Pre-Owned Vehicles, were 44,522 units, up 12 percent from last May. Total year-to-date certified GM sales are 220,097 units, up 2 percent from the same period last year. GM Certified Used Vehicles, the industry's top-selling manufacturer-certified used brand, posted 38,471 sales, up 15 percent from last May. Year-to-date sales for GM Certified Used Vehicles are 191,523 units, up four percent from the same period in 2005. Cadillac Certified Pre-Owned Vehicles posted 3,316 sales in May, up nearly six percent from last May. Used Cars from Saturn sold 1,845 units, down 17%. Saab Certified Pre-Owned Vehicles sold 801 units, down nearly 13%. In its fifth month of operation, HUMMER Certified Pre-Owned sold 89 units. "May proved to be another terrific month for GM Certified Used Vehicles sales, increasing 15 percent over May 2005, marking the third consecutive month of double-digit sales increases," LaNeve said. "With sales of 38,471 units in May, GM Certified Used Vehicles, the industry's top-selling certified brand, continues to lead the certified segment and is on track to set another all-time sales record for the category." 2006 Second-Quarter Production GM North America In May, GM North America produced 425,000 vehicles (154,000 cars and 271,000 trucks). This is up 17,000 units or 4 percent compared to May 2005 when the region produced 408,000 vehicles (150,000 cars and 258,000 trucks). Production totals include joint venture production of 23,000 vehicles in May 2006 and 21,000 vehicles in May 2005. The region's 2006 second-quarter production forecast is revised at 1.225 million vehicles (455,000 cars and 770,000 trucks), up 25,000 units from last month's guidance. In the second quarter of 2005 the region produced 1.247 million vehicles (458,000 cars and 789,000 trucks). Additionally, the region's initial 2006 third-quarter production forecast is set at 1.05 million vehicles (400,000 cars and 650,000 trucks), down 8.4 percent from third quarter 2005 actuals. GM Europe The region's 2006 second-quarter production forecast remains unchanged at 502,000 vehicles. In the second quarter of 2005 the region built 501,000 vehicles. The region's initial 2006 third-quarter production forecast is set at 372,000 vehicles. In the third quarter of 2005 the region built 412,000 vehicles. GM Asia Pacific GM Asia Pacific's 2006 second-quarter production forecast remains unchanged at 504,000 vehicles. In the second quarter of 2005 the region built 398,000 vehicles. The region's initial 2006 third-quarter production forecast is set at 516,000 vehicles. In the third quarter of 2005 the region built 409,000 vehicles. GM Latin America, Africa and the Middle East The region's 2006 second-quarter production estimate remains at 215,000 vehicles. In the second quarter of 2005 the region built 195,000 vehicles. The region's initial 2006 third-quarter production forecast is set at 217,000 vehicles. In the third quarter of 2005 the region built 207,000 vehicles. About General Motors General Motors Corp. -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries including Mexico. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 9, Moody's Investors Service placed the B3 senior unsecured rating of General Motors Corporation under review for possible downgrade, and affirmed the company's Corporate Family Rating at B3. The rating actions are in response to the company's disclosure that it is pursuing various options to replace or amend its existing US$5.6 billion bank credit facility, and that these options could result in providing its bank lenders with a security interest in certain GM assets. GM anticipates that any credit facility replacement or amendment will be completed by the end of the second quarter or early in the third quarter. GENERAL MOTORS: Building Chevrolet Cars in Russia by 2008 --------------------------------------------------------- General Motors will build a greenfield manufacturing facility in the Shushary region of St. Petersburg, Russia, to produce Chevrolet Captiva SUVs and a new generation of compact cars from CKD kits. The plant will go on stream in late 2008 with initial full-year capacity of 25,000 units. The carmaker will begin operating in a separate SKD facility in St. Petersburg as early as September this year. This facility will assemble the Chevrolet Captiva until the Shushary facility begins production. Total investment in the new facilities amounts to US$115 million. At a ground-breaking ceremony in Shushary on June 13, General Motors Chairman and CEO Rick Wagoner said, "This project clearly demonstrates our commitment to Russia as one of the world's fastest growing auto markets. With the addition of this new, wholly-owned facility, GM and its partners will be able to assemble more than 100,000 cars a year in Russia." The new assembly plant on the outskirts of St. Petersburg will employ more than 700 people who will be recruited specifically for their ability to set up and operate a world-class production facility. "We are delighted that General Motors has recognized the value of strategic investment projects in our city," said Governor of St. Petersburg, Valentina I. Matvienko. "We will endeavor to repay this trust by ensuring that General Motors is satisfied with the choice of its newest manufacturing plant. It is my fervent hope that General Motors has blazed a trail that its suppliers will soon follow to enjoy the benefits the St. Petersburg region offers." In order to leverage the company's global manufacturing expertise, GM's leading assembly plants will host numerous new employees from Shushary for comprehensive training programs. The groundbreaking ceremony for the new plant coincides with record sales for GM in Russia. More than 11,000 registrations in May represent an 80 percent increase over May 2005. "With five brands on the market, we offer Russian customers more choice than any other manufacturer," said Carl-Peter Forster, President of GM Europe. "The St. Petersburg plant and the new Chevrolet cars it builds will give us another boost in this very important market." Chevrolet is GM's best-selling brand in Russia, with sales of over 35,000 in the first five months of the year. In 2005, Chevrolet was the number two non-domestic brand on the Russian market, taking over the number one position in the month of April this year. The separate SKD operation in the city of Saint Petersburg will go into operation in September and have an annual capacity of over 4000 units. This is an interim solution that will end when the new CKD plant in Shushary goes on stream in 2008. GM has been active in Russia since 1992. The St. Petersburg project complements existing GM operations in Togliatti and Kaliningrad. Established in Togliatti in 2001 as the first joint venture on the Russian automotive market, GM Avtovaz builds the Chevrolet Niva and Viva. GM, with partner Avtotor, began SKD operations in Kaliningrad in 2004 and now assembles Cadillac, Hummer and Chevrolet models. Russia, with a population of 143 million, is one of the most dynamic car markets in the world. Year-on-year sales growth has accelerated from 9 percent in 2005 to 17 percent in the first four months of this year. Vehicle ownership has now reached a ratio of 178 cars to 1000 people. About General Motors General Motors Corp. -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries including Mexico. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 9, Moody's Investors Service placed the B3 senior unsecured rating of General Motors Corporation under review for possible downgrade, and affirmed the company's Corporate Family Rating at B3. The rating actions are in response to the company's disclosure that it is pursuing various options to replace or amend its existing US$5.6 billion bank credit facility, and that these options could result in providing its bank lenders with a security interest in certain GM assets. GM anticipates that any credit facility replacement or amendment will be completed by the end of the second quarter or early in the third quarter. INQUIRY U.K.: Names Gordon Craig as Administrator ------------------------------------------------- Gordon Craig of Cresswall Associates Limited was appointed administrator of Inquiry U.K. Limited (Company Number 04330588) on May 11. The administrator can be reached at: Cresswall Associates Limited West Lancashire Investment Centre Maple View Whitemoss Business Park Skelmersdale Lancashire WN8 9TG United Kingdom Tel: 01695 712683 Inquiry U.K. Limited can be reached at: 348 A Lytham Road Blackpool FY4 1DW United Kingdom LAB (SOHO): Winds Up Operations & Appoints Liquidator ----------------------------------------------------- The Lab (Soho) Limited is liquidating its assets after creditors elected to wind up the company during an extraordinary general meeting on March 31. John Kelmanson and Elias Paourou, of The Kelmanson Partnership, were appointed Joint Liquidators. The company can be reached at: The Lab (Soho) Limited 51 Cleveland Street London W1T 4JH United Kingdom Tel: 020 7631 1111 Fax: 020 7631 0011 LOCKSHIELD PROPERTY: Hires T. Papanicola as Administrator --------------------------------------------------------- T. Papanicola of Bond Partners LLP was appointed administrator of Lockshield Property Surveying Services Limited (Company Number 04824443) on May 23. The administrator can be contacted at: Bond Partners LLP The Grange 100 High Street London N14 6TG United Kingdom Tel: 020 8444 2000 Fax: 020 8444 3400 Headquartered in Ledbury, United Kingdom, Lockshield Property Surveying Services Limited is engaged in general construction and civil engineering. MAPLE PARK: Appoints Simon Thornton to Administer Assets -------------------------------------------------------- Simon Thornton of Houghton Stone Business Recovery was appointed administrator of Maple Park Leisure Limited (Company Number 05187200) on May 16. The administrator can be contacted at: Houghton Stone Business Recovery The Conifers Filton Road Hambrook Bristol BS16 1QG United Kingdom Tel: 0117 957 9009 Maple Park Leisure Limited can be reached at: 35 Silver Street Cheddar Somerset BS27 3LE United Kingdom MERLIN'S MOBILES: Brings In Administrator From Houghton Stone ------------------------------------------------------------- Simon Thornton of Houghton Stone Business Recovery was appointed administrator of Merlin's Mobiles LLP (Company Number OC304302) on May 23. The administrator can be contacted at: Houghton Stone Business Recovery The Conifers Filton Road Hambrook Bristol BS16 1QG United Kingdom Tel: 0117 957 9009 Headquartered in Carmarthen, United Kingdom, Merlin's Mobiles LLP retails mobile phones. MIDDLEBURN LIMITED: Creditors Pass Winding Up Resolution -------------------------------------------------------- Creditors of Middleburn Limited passed a resolution to wind up the company's operations during an extraordinary general meeting on March 29. Elliot Harry Green of Oury Clark was appointed Liquidator. The company can be reached at: Middleburn Limited 6 Bentley Pk Blacknest Alton Hampshire GU344PX United Kingdom Tel: 01420 520 227 Fax: 01420 237 96 OLDBURY NORTH: Brings In P.D. Masters as Liquidator --------------------------------------------------- P.D. Masters of DTE Leonard Curtis was appointed Liquidator of Oldbury North Limited after creditors decided to wind up the company during an extraordinary general meeting on March 27. The company can be reached at: Oldbury North Limited PO Box 3180 Tat Bank Road West Midlands B69 4PG United Kingdom Tel: 0121 544 1555 Fax: 0121 552 4267 PINEOLOGY LIMITED: Brings In Administrators from PKF ---------------------------------------------------- Kerry Bailey and Jonathan D. Newell of PKF (U.K.) LLP were appointed joint administrators of Pineology Limited (Company Number 03530602) on May 23. PKF (U.K.) LLP -- http://www.pkf.co.uk/-- is one of the UK's leading firms of accountants and business advisers, which specializes in advising the management of developing private and public businesses. Headquartered in Wrexham, Pineology Limited -- http://www.pineology.co.uk/-- manufactures furniture. SELECT RESOURCING: Names Andrew Clay as Administrator ----------------------------------------------------- Andrew T. Clay of Andrew Michaels & Co Ltd was appointed administrator of Select Resourcing Limited (Company Number 05443532) on May 19. The administrator can be reached at: Andrew Michaels And Co Limited Concept House Brooke Street Cleckheaton BD19 3RY United Kingdom Tel: 01274 855530 Fax: 01274 855540 Headquartered in Broughton Astley, United Kingdom, Select Resourcing Limited is a recruitment agency. SECURE ARCHIVES: Joint Liquidators Take Over Operations ------------------------------------------------------- Jeremy Willmont and David Rolph, of Moore Stephens LLP, were appointed Joint Liquidators of Secure Archives Limited after creditors agreed to wind up the company on March 31. The company can be reached at: Secure Archives Limited 47-48 Chapel Street Rugby Warwickshire CV213EB United Kingdom Tel: 01788 572 109 SENTIRO LIMITED: Creditors Resolve to Liquidation ------------------------------------------------- Creditors of Sentiro Limited resolved to liquidate the company's assets during an extraordinary general meeting on March 28. Mark Stephen Goldstein, of DCM Insolvency Service Limited, was appointed Liquidator. The company can be reached at: Sentiro Limited 6 Cole Park View Twickenham Middlesex TW1 1JW United Kingdom Tel: 020 8607 8530 SHARPTONE LIMITED: Hires Joint Administrators from Menzies ---------------------------------------------------------- Paul John Clark and Jason James Godefroy of Menzies Corporate Restructuring were appointed joint administrators of Sharptone Limited (Company Number 03568597) on May 22. Headquartered in London, Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- is a member of Moores Rowland International, an association of independent accounting firms throughout the world with some 20,800 partners and staff, operating from 628 offices in 92 countries. MRI, which is ranked 8th amongst the leading international accounting associations, achieved global revenues of US$1.8 billion in 2003. Sharptone Limited can be reached at: 10 St. John Street London EC1M 4AY Tel: 020 7253 7733 Fax: 020 7253 2880 SOFA CHOICE: Brings In Liquidator From Stones & Co. --------------------------------------------------- Sofa Choice Limited is liquidating its assets after creditors passed a resolution to wind up the company on March 20. Gary Stones of Stones & Co. was appointed Liquidator. Sofa Choice Limited manufactures leather sofas and an extensive range of fabric covered sofas and suites. The company can be reached at: Sofa Choice Limited Unit 1 Millers Avenue Brynmenyn Bridgend Mid Glamorgan CF329TD United Kingdom Tel: 01656 721 006 Fax: 01656 725 404 Web: http://wwww.classicchoice.com/ http://wwww.sofachoice.co.uk/ SOUTH YORKSHIRE: Brings In CRG Insolvency to Administer Assets -------------------------------------------------------------- Charles Howard Ranby-Gorwood of CRG Insolvency & Financial Recovery was appointed administrator of South Yorkshire Road Specialists Limited (Company Number 02066179) on May 23. The administrator can be contacted at: CRG Insolvency & Financial Recovery Suite 4 Alexandra Dock Business Centre Fishermans Wharf Grimsby Lincolnshire DN31 1UL United Kingdom Tel: 01472 250001 Headquartered in Doncaster, United Kingdom, South Yorkshire Road Specialists Limited is engaged in road construction. SUZIE CLAYTON: Hires Joint Liquidators from Begbies Traynor ------------------------------------------------------------ Richard Andrew Segal and Paul Michael Davis of Begbies Traynor were appointed Joint Liquidators of Suzie Clayton Limited after creditors resolved to liquidate the company's assets during an extraordinary general meeting on March 30. The company can be reached at: Suzie Clayton Limited 1B Strawberry Vale Twickenham TW1 4RX United Kingdom Tel: 020 8607 9704 Fax: 020 8607 9705 Web: http://wwww.suzieclayton.com/ TOTAL STAFF: Creditors Confirm Voluntary Liquidation ---------------------------------------------------- Creditors of Total Staff Recruitment Limited confirmed the company's voluntary liquidation during an extraordinary general meeting on March 22. Creditors also ratified the appointment of Derek Leslie Woolley and Andrew Philip Wood, of The P&A Partnership, as Joint Liquidators. The company can be reached at: Total Staff Recruitment GB Limited 600 Staniforth Road Sheffield S9 4LN United Kingdom Tel: 0114 243 9990 T.S.J. WOODHOUSE: Appoints Administrators from Menzies ------------------------------------------------------ Paul John Clark and Jason James Godefroy of Menzies Corporate Restructuring were appointed joint administrators of T.S.J. Woodhouse Limited (Company Number 00302804) on May 19. Headquartered in London, Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- is a member of Moores Rowland International, an association of independent accounting firms throughout the world with some 20,800 partners and staff, operating from 628 offices in 92 countries. MRI, which is ranked 8th amongst the leading international accounting associations, achieved global revenues of US$1,800 million in 2003. Headquartered in London, T.S.J. Woodhouse Limited wholesales meat and meat products. WHITE CROSS: Financial Woes Prompt Liquidation ---------------------------------------------- White Cross Systems Group Limited is winding up its operations after creditors established the company could no longer continue its business due to mounting debts. Andrew Howard Beckingham and Dermot Brendan Coakley of BDO Stoy Hayward LLP were appointed Joint Liquidators. The company can be reached at: White Cross Systems Group Limited 3A Waterside Pk Cookham Road Bracknell Berkshire RG121RB United Kingdom Tel: 01344 300 770 Fax: 01344 301 424 X V1 LIMITED: Taps Robert James Thompson to Liquidate Assets ------------------------------------------------------------ Robert James Thompson of Rendell Thompson was appointed Liquidator of X V1 Limited after creditors agreed to wind up the company on March 23. The company can be reached at: X V1 Limited Pennyhill Park Hotel London Road Bagshot Surrey GU195EU United Kingdom Tel: 01276 469 025 YELL GROUP: Competition Commission Set to Keep Price Controls ------------------------------------------------------------- The Competition Commission is set to continue price controls on the telephone directories business after discovering Yell Group Plc has dominated the market, according to published reports. The commission's provisional findings into the year-long probe estimates that Yell still holds 75% of Britain's classified directories advertising revenues and controls 99% of the market with its main rivals, Thomson and BT Group Plc, Richard Wray of The Guardian reports. "Yell continues to hold a powerful position in this market and we have found that competition is not working effectively," inquiry chairwoman Diana Guy said. According to Adam Pasick and Dan Lalor of Reuters, Yell's price increases are currently capped at six percentage points below the rate of inflation, which means that the company must cut prices annually at current inflation rates. "We are disappointed with the provisional findings," John Condron, Yell Group CEO, said. "In our increasingly competitive environment, and particularly with the rapid growth of the Internet and the re-entry of BT there is no need for continued regulatory involvement. However we note that in considering what it feels to be appropriate remedies, the CC will 'have regard to expected changes in the market'. We shall, of course, actively represent our views over the next few weeks," Mr. Condron added. Headquartered in Reading, England, Yell Group Plc -- http://www.yellgroup.com/-- is (through its indirectly wholly owned subsidiary Yellow Pages U.K.) the leading publisher of classified directories in the U.K. and through its subsidiary, Yellow Book, is a leading independent directories publisher in the U.S. TPI is the largest publisher of yellow and white pages in Spain with an estimated 90% market share. * * * As reported in TCR-Europe on June 5, 2006, Moody's Investors Service assigned a Ba3 corporate family rating to Yell Group plc and withdrew the Ba2 corporate family rating at Yell Finance B.V. Concurrently, Moody's downgraded Yell's senior secured bank credit facility rating to Ba3 from Ba2 and the ratings of the senior unsecured and subordinated debt instruments to B2 from B1. Moody's intends to withdraw the debt ratings of Yell Finance B.V. as the bonds get repaid due to early redemption on June 2. The rating outlook is stable. * Begbies Traynor Acquires Wilson Pitts for GBP1.1 Million ---------------------------------------------------------- Begbies Traynor Group plc acquired the entire equity interests of David Wilson and Julian Pitts, the founding partners of Leeds-based corporate and personal insolvency firm Wilson Pitts. Wilson Pitts's entire client base and 17 full-time staff will be transferred with immediate effect to Begbies Traynor's ownership. The acquisition is for an initial cash consideration of GBP1.1 million, and under the terms of the deal, Begbies Traynor has the option to pay an additional sum of GBP700,000 in cash or by issuing 424,242 shares at GBP1.65 per share in the Group. There will be further additional payments subject to the new partners meeting robust turnover targets. In its last trading year, Wilson Pitts achieved fee income in the region of GBP1.8 million. The directors of Begbies Traynor conclude that the acquisition should enhance earnings per share of the Group, both initially and after any additional consideration is paid. Wilson Pitts was founded in Leeds in 1989, and has its roots serving the Yorkshire business community. While it is a provider of general corporate and personal insolvency services, it has particularly strong contacts and experience in the residential care home market. However, in order to continue to expand, Wilson and Pitts partners chose to join Begbies Traynor for the opportunity to work on larger, more technically challenging cases which they recognized were only possible from high street bank referrals, a network from which Begbies already receives considerable business. The new Leeds office is now one of three main Group offices serving the Yorkshire region. Collectively, these offices have eight licensed insolvency practitioners and over 45 professional and support staff, and are responsible for around GBP6 million in total annual fee income. This latest acquisition is part of the Group's strategy to expand its range of services and presence in the mid-corporate and personal insolvency markets. The Group is expected to announce its preliminary results for the year ended April 30, 2006, on July 3. "With three main offices in Yorkshire we now have strong representation in this region," Ric Traynor, Executive Chairman of Begbies Traynor, said. "Finding a high quality acquisition in this part of the country was a key goal this year. We are therefore delighted to welcome Julian and David and their colleagues to the Group." About the Firm Begbies Traynor Group plc specializes in business insolvency management and is becoming increasingly active in the area of personal insolvency. 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