/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060622.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 22, 2006, Vol. 7, No. 123 Headlines A U S T R I A BALVEO BETEILIGUNG: Property Manager Declares Insufficient Funds IVAN GULA: Claims Registration Period Ends June 28 KERI: Meeting of Creditors' Slated for June 26 PAX: Claims Registration Period Ends July 4 VIVO MOBILE: Claims Registration Period Ends July 3 WALDEN UND PARTNER: Meeting of Creditors Slated for July 3 WOHNKULTUR AM DOM: Claims Registration Period Ends July 3 F R A N C E SPCM SA: Moody's Assigns B1 Corporate Family Rating SPCM S.A.: S&P Assigns BB- Long-Term Corporate Credit Rating G E R M A N Y BS GASTRO: Creditors' Meeting Slated for July 6 E-MAC DE 2006-I: Moody's Rates EUR2.5-Mln Class F Notes at Ba3 EBM-ELEKTRO: Creditors' Meeting Slated for July 6 ELEKTRO-SCHALTANLAGEN: Creditors' Meeting Slated for July 6 GENERAL MOTORS: Employees in Europe Prepare Strike Protests HANSMANN-BAUELEMENTE: Claims Registration Ends July 6 HENSEL GROUP: Claims Registration Ends July 7 HEYMEX GMBH: Claims Registration Ends July 7 KAMPS AG: Moody's Junks EUR325-Million 8.5% Senior Notes MTU AERO: S&P Lifts Long-Term Corporate Credit Rating to BB+ PSCG NETWORK: Creditors' Meeting Slated for July 6 RUDOLPH BETEILIGUNGS: Claims Registration Ends July 6 VAMOS BETRIEBS: Claims Registration Ends July 7 WEGNER POLSTEREI: Claims Registration Ends July 7 I R E L A N D EIRCOM GROUP: Issues 1.073 Billion Share Capital I T A L Y CIRIO FINANZIARIA: Roman Court Begins Fraud Hearings K A Z A K H S T A N AK-ARLAN: Creditors Must File Claims by July 3 ARNA: Creditors Must File Claims by July 3 ESENBAYEV & K: Claims Registration Ends July 3 JULDYZ & K: Kyzylorda Court Opens Bankruptcy Proceedings KERINS TAUN: Claims Registration Ends July 3 KOMPANIA EL-KUAT: Creditors' Claims Due July 3 KORUS PLUS: Creditors' Claims Due July 3 MORTGAGE GUARANTEE: S&P Affirms BB Foreign Currency Rating ROMUL INVEST: Mangistau Court Begins Bankruptcy Process SAZ: Proof of Claim Deadline Slated for July 3 STROIKABELSNAB: Almaty Court Sets July 3 Claims Bar Date K Y R G Y Z S T A N BEKSULTAN-UG: Creditors Must File Claims by Aug. 1 FELS: Creditors' Claims Due Aug.1 SERGEK: Proof of Claim Deadline Slated for Aug. 4 L U X E M B O U R G EVRAZ GROUP: Beneficial Owners Sell Substantial Interest EVRAZ GROUP: Fitch Affirms BB- Sr. Unsecured & Default Ratings ECONOMY LUXEMBOURG: Fitch Rates Upcoming Notes Issue at BB- P O L A N D TVN S.A.: S&P Raises Long-Term Corporate Credit Rating to BB- R U S S I A BANK POSHEKHONSKIY: Court Appoints Insolvency Manager BULATNIKOVO: Court Commences Bankruptcy Supervision INTER-GAS-OIL-SERVICE-SAMARA: E. Filipjev to Manage Assets KAZANSKAYA MACARONI: Court Begins Bankruptcy Supervision KOTELNICHESKOYE PEAT: Court Begins Bankruptcy Supervision MEGA: Bankruptcy Hearing Slated for Aug. 15 OAO ROSNEFT: Summary of Voting Results on Rosneft Consolidation PILNA-AGRO-SERVICE: Court Names P. Sedaev as Insolvency Manager PUSHKINSKOYE: Bankruptcy Hearing Slated for July 11 SEL-KHOZ-TEKHNIKA: Court Names E. Kotkov as Insolvency Manager SOLAGID: Court Appoints Enukashvili as Insolvency Manager SOUTHERN TELECOM: Board Appoints Alexander Andreev as CEO TEPLO-ENERGY: Court Names G. Nosikov to Manage Assets TTS: Tomsk Court Starts Bankruptcy Supervision VYATKA ICE: Court Appoints G. Turanov to Manage Assets WOOD WORKING: Court Names V. Nikishkin as Insolvency Manager S P A I N SANTANDER HIPOTECARIO: Moody's Junks EUR17.6-Mln Series F Notes SANTANDER HIPOTECARIO: S&P Assigns Junk Ratings to Class F Notes U K R A I N E ALFA-TELEKOM: Court Starts Bankruptcy Supervision KIYIVINSTRUMENT: Court Names P. Kushneryov to Liquidate Assets MELNIKIVTSI: Court Names Sergij Sklyar as Insolvency Manager MERCURY: Ivano-Frankivsk Court Begins Bankruptcy Supervision OCHAKIV FISH: Mikolaiv Court Starts Bankruptcy Supervision REZONANS: Court Names Mr. S. Dyachenko to Liquidate Assets ROBEMI: Court Names Oleg Shestopalov as Liquidator UNIVERSAL: AR Krym Court Begins Bankruptcy Supervision U N I T E D K I N G D O M AZTEC INTERIORS: Appoints Andrew Appleyard as Administrator BAA PLC: Ferrovial Faces Tough Bondholder Talks on Takeover Deal BERNARD WARD: Names Joint Administrators from KPMG LLP BRITISH AIRWAYS: Trustee Sells 50,311 Units in Share Scheme EBENISTE LIMITED: Taps P&A Partnership to Administer Assets GENERAL MOTORS: Employees in Europe Prepare Strike Protests GENERAL MOTORS: Moody's Rates Proposed US$4.5-Bln Facility at B2 GENERAL MOTOR: Fitch Puts BB Rating to US$4.48-Billion Bank Loan GENERAL MOTORS: S&P Rates Proposed US$4.5-Bln Facility at B+ GIPPING CONTAINER: Hires Joint Administrators from Vantis INTERNATIONAL MOVING: Creditors Pass Winding Up Resolution KEIGHLEY CUSHIONS: Appoints PwC as Joint Administrators KINDER INTERNATIONAL: Financial Woes Prompt Liquidation LUCITE INT'L: Moody's Lowers Corporate Family Rating to B1 M. & C. LIMITED: Calls In Tenon Recovery as Administrators MACEY & BOND: Taps Duncan R. Beat to Liquidate Assets MERSEYSIDE ASSESSMENT: Names Colin Burke Liquidator PILKINGTON PLC: S&P Downgrades Unsecured Debt Ratings to BB+ QUALITY CARE: Creditors Resolve to Liquidate Assets RICHWOOD FLOORING: Names Joint Administrators from Kroll Ltd SCENES EASY: Brings In Rogers Evans as Administrators SWJ GROUP: Taps Paul Michael McConnel to Administer Assets TECHNOLOGY FARM: Appoints Tony James Thompson as Administrator WHINSTONE 2: Fitch Assigns Final BB Ratings to Class C Notes * Fitch Remarks on Outlook for European Automotive Industry ********* ============= A U S T R I A ============= BALVEO BETEILIGUNG: Property Manager Declares Insufficient Funds ---------------------------------------------------------------- Walter Anzbock, the court-appointed property manager for LLC Balveo Beteiligung (FN 208116 d), declared on May 11 that the Debtor does not have enough assets to pay off its creditors. The Land Court of St. Polten is yet to rule on the property manager's claim. Headquartered in Langenrohr, Austria, the Debtor declared bankruptcy on Dec. 17, 2003 (Bankr. Case No. 27 S 540/03b). IVAN GULA: Claims Registration Period Ends June 28 -------------------------------------------------- Creditors owed money by KEG Ivan Gula (FN 258313y) have until June 28 to submit written proofs of claim to court-appointed property manager Martina Simlinger-Haas at: Dr. Martina Simlinger-Haas Reisnerstrasse 31 1030 Vienna Austria Tel: 713 99 46 Fax: 713 99 46 22 E-mail: ra.reisnerstr.3@aon.at Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on July 12 to consider the revision of the rule by adoption and accountability. The meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 12 (Bankr. Case No. 4 S 78/06g). KERI: Meeting of Creditors' Slated for June 26 ---------------------------------------------- Creditors owed money by LLC Keri (FN 264135i) are encouraged to attend the creditors' meeting at 11:08 a.m. on June 26 to consider the revision of the rule by adoption and accountability. The first creditors' meeting will be held at: Land Court of Eisenstadt Hall F Eisenstadt, Austria Headquartered in Neufeld an der Leitha, Austria, the Debtor declared bankruptcy on May 12 (Bankr. Case No. 26 S 48/06w). Astrid Haider serves as the court-appointed property manager of the bankrupt estate. PAX: Claims Registration Period Ends July 4 ------------------------------------------- Creditors owed money by Trade LLC On Property Management Pax (FN 109044i) have until July 4 to submit written proofs of claim to court-appointed property manager Susi Rathauscher at: Dr. Susi Rathauscher Gonzagagasse 15 1010 Vienna Austria Tel: 533 28 55 Fax: 533 28 55 28 E-mail: office@anwaltwien.at Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 18 to consider the revision of the rule by adoption and accountability. The meeting will be held at: The Trade Court of Vienna Room 1701 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 12 (Bankr. Case No. 6 S 49/06g). Beate Sumper represents Dr. Rathauscher in the bankruptcy proceedings. VIVO MOBILE: Claims Registration Period Ends July 3 --------------------------------------------------- Creditors owed money by LLC Vivo Mobile Business (FN 249636m) have until July 3 to submit written proofs of claim to court- appointed property manager Guenther Hodl at: Dr. Guenther Hodl Schulerstrasse 18 1010 Vienna Austria Tel: 513 16 55 Fax: 513 16 55 33 E-mail: Hoedl@anwaltsteam.at Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on July 17 to consider the revision of the rule by adoption and accountability. The meeting will be held at: The Trade Court of Vienna Room 2102 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 12 (Bankr. Case No. 45 S 28/06f). Katharina Widhalm- Budak represents Dr. Hodl in the bankruptcy proceedings. WALDEN UND PARTNER: Meeting of Creditors Slated for July 3 ---------------------------------------------------------- Creditors owed money by LLC Walden und Partner (FN 182906f) are encouraged to attend the creditors' meeting at 11:30 a.m. on July 3 to consider the revision of the rule by adoption and accountability. The first creditors' meeting will be held at: Land Court of Innsbruck Conference Hall 212 2nd Floor Maximilianstrasse 4 6020 Innsbruck, Austria Headquartered in Innsbruck, Austria, the Debtor declared bankruptcy on May 12 (Bankr. Case No. 19 S 49/06p). Dieter Benko serves as the court-appointed property manager of the bankrupt estate with Christian Holzl representing him in the bankruptcy proceedings. WOHNKULTUR AM DOM: Claims Registration Period Ends July 3 --------------------------------------------------------- Creditors owed money by LLC Wohnkultur am Dom Straka & Partner (FN 231058t) have until July 3 to submit written proofs of claim to court-appointed property manager German Storch at: German Storch Buergerstrasse 62 4020 Linz Austria Tel: 0732/661861 Fax: 0732/661861-19 E-mail: ra-storch@nextra.at Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 17 to consider the revision of the rule by adoption and accountability. The first creditors' meeting will be held at: The Land Court of Linz Room 522 5th Floor Linz, Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on May 12 (Bankr. Case No. 12 S 39/06g). =========== F R A N C E =========== SPCM SA: Moody's Assigns B1 Corporate Family Rating --------------------------------------------------- Moody's Investors Service assigned B1 corporate family rating to SPCM S.A., a holding company for SNF group, and (P)B3 to proposed EUR140 million senior unsecured notes to be raised by the company. Outlook is stable. SNF is one of the world's leading producers of acrylate-based water soluble polymers used in water treatment, as well as in mining, pulp and paper and enhanced oil extraction. The Company was formed in 1978 as a result of a buy-out of the flocculant business from WR Grace and developed through acquisitions and organic growth. The assigned B1 corporate family rating reflects: -- SNF's strong global market position in its key water treatment segment; -- the Company's diversified and stable global customer base and established distribution network; -- an established track-record in generating operating cash flow underpinned by steady growth in production volumes; -- well invested facilities; and -- balanced financial policy implemented in the past as well as a high historical rate of cash reinvestment and a commitment demonstrated by the key shareholders to the development of the company. The rating also reflects: -- SNF's modest revenue size and relatively modest diversification of revenue base in comparison with its peers and closest competitors; -- exposure to highly volatile raw material prices and the need to continuously adjust prices, and a challenge of maintaining its margins in the current strong raw material price environment; -- continuous reinvestment in the facilities and the risk that additional CAPEX may be required in the future to pursue new high growth opportunities, particularly in enhanced oil recovery segment; -- elevated leverage estimated to reach x4.2 on Adjusted Debt/EBITDAR basis as a result of the proposed transaction; and -- SNF's historical sensitivity to USD/EURexchange rate fluctuations, given that the Company derives just under half of its revenues in the U.S. The rating assigned to the notes reflects effective subordination to secured bank facilities. While both the notes and the senior loan facility are to be raised at SPCM S.A. level, the loan facility will benefit from the pledge of shares in key operating companies, as well as from the assignment of issuer's inter-company loans to the operating companies, and the notes will be unsecured and will become due after the loan facility matures. The stable outlook reflects Moody's expectation that SNF financial and operating performance will continue to be strong in the next 12 months and that the Company will be able to maintain its margins in a volatile raw material prices environment. The stable outlook is also supported by the anticipation that the management and the shareholders of the Company will continue to follow a balanced financial policy while pursuing new high growth opportunities and new markets. SNF maintains adequate liquidity, which is underpinned by funds to be available under EUR50 million revolver facility and EUR43 million of cash balances reported at the end of 2005. In 2005, SNF started to generate positive free cash flow as it completed its substantial investment program initiated in 2001. SNF expects to continue to invest in its operations, both in the US and in Asia, but projects positive free cash flow from 2006. Headquartered in Andrezieux, France, SNF is one of the leading global manufacturers of acrylate-based water-soluble polymers. In 2005, SNF reported Net Revenues of EUR731 million (EUR593 million in 2004) and EBITDA of EUR81 million (EUR62 million in 2004). SPCM S.A.: S&P Assigns BB- Long-Term Corporate Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to France-based SPCM S.A., owner of a group of companies that produces specialty and intermediate water treatment chemicals. The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' bank loan rating, in line with the corporate credit rating, and a recovery rating of '2' to SPCM's EUR150 million proposed senior secured bank facilities, indicating the expectation of substantial recovery of principal in the event of a payment default. SPCM's proposed EUR140 million senior unsecured notes due 2013 have been rated 'B', two notches below the corporate credit rating. "The ratings reflect the group's aggressive leverage following major investments in new production facilities and a significant share buyback tied to a minority shareholder payout," said Standard & Poor's credit analyst Khaled Zitouni. The ratings also take into account the group's overall relatively small size and somewhat limited product diversification. SPCM owns 100% of the SNF group, comprising SNF S.A., SNF Holding Company (USA), and sister companies. The group is focused on the production of polyacrylamide products used mainly for wastewater treatment for municipalities and for paper, mining, and other industries. "The stable outlook reflects our expectations that SNF will post free operating cash flow to fully adjusted net debt of about 5%, and FFO to fully adjusted net debt of about 20%," said Mr. Zitouni. Higher investments, a failure to pass on higher raw material costs to customers, or a more aggressive financial policy could result in lower cash flow protection ratios than expected, putting pressure on the rating. In contrast, faster De-leveraging, substantially and sustainably exceeding set target ratios, could lead to the rating being raised. ============= G E R M A N Y ============= BS GASTRO: Creditors' Meeting Slated for July 6 ----------------------------------------------- The court-appointed provisional administrator for BS Gastro GmbH, Frank-Michael Rhode, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:30 a.m. on July 6. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Court House Ostertorstr. 25-31 28195 Bremen, Germany The Court will also verify the claims set out in the administrator's report at 9:30 a.m. on Aug. 31 at the same venue. Creditors have until Aug. 8 to register their claims with the court-appointed provisional administrator. The District Court of Bremen opened bankruptcy proceedings against BS Gastro GmbH on May 17. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: BS Gastro GmbH Osterdeich 50 28203 Bremen, Germany Attn: Nils Eric Baad, Manager Dobben 146 28203 Bremen, Germany The administrator can be reached at: Frank-Michael Rhode Graf-Moltke-Str. 62 28211 Bremen, Germany Tel: 0421/3485212/213 Fax: 0421/341078 Web: http://www.rhode.de/ E-mail: info@rhode.de E-MAC DE 2006-I: Moody's Rates EUR2.5-Mln Class F Notes at Ba3 -------------------------------------------------------------- Moody's Investors Service has assigned definitive long-term credit ratings to the Notes issued by E-MAC DE 2006-I B.V.: -- EUR437,000,000 Senior Class A Mortgage-Backed Notes due 2048: Aaa; -- EUR27,000,000 Mezzanine Class B Mortgage-Backed Notes due 2057: Aa2; -- EUR17,500,000 Junior Class C Mortgage-Backed Notes due 2057: A1; -- EUR11,500,000 Subordinated Class D Mortgage-Backed Notes due 2057: A3; -- EUR7,000,000 Subordinated Class E Mortgage-Backed Notes due 2057: Baa2; and -- EUR2,500,000 Subordinated Class F Notes due 2057: Ba3. Moody's assigned provisional ratings to these notes on May 22. Transaction Structure E-MAC DE 2006-I is the second transaction securitizing mortgage loans originated by GMAC RFC Bank GmbH and a structural copy of E-MAC DE 2005-I. GMAC Bank started its business in Germany in January 2004 and has since then originated residential mortgage loans granted to German individuals. The servicing of the loan portfolio will be performed by Kreditwerk Hypotheken-Management GmbH while the special servicing of delinquent loans will be conducted by Rechtsanwaelte Paulus Westerwelle. Similar to Dutch E-MAC transactions, part of the proceeds of the A, B, C, D and E Notes will be retained by the Issuer and will be used to purchase a further pool of mortgage loans in the first three months after closing. Any amounts that are retained for pre-funding will, to the extent not applied to the purchase of further loans, be applied to the redemption of the Notes in August 2006. Until May 2010 any repayments received under the mortgage loans will be used to redeem the Notes in sequential order starting with the Class A Notes. In and after May 2010, the target amortization criteria must be met in order to apply principal funds on a targeted amortization basis. The Class F Notes will fund the initial balance of the Reserve Fund and will be repaid by available excess spread on the interest payment date in May 2008 and thereafter. The issuer enters into an interest swap agreement in order to hedge its interest rate exposure due to the mismatch of the fixed interest received under the securitized loans and the floating interest payments due under the Notes. Strengths and Weaknesses The transaction benefits, among others, from several positive features: -- the protection against losses through the subordination of the junior tranches and the availability of excess spread to cover losses; -- the Reserve Account, which is funded at closing at EUR2.5 million and will be built up to EUR6 million by trapping of available excess spread; and -- the availability of a liquidity facility provided by Deutsche Bank AG for an amount equal to the higher of 3% of current outstanding balance of the Notes and 0.6% of initial balance of the Notes. Less favorable features and their mitigants are: -- inter alia, that the pool has limited seasoning as the weighted average seasoning of the pool as of May 1 is eight months; -- the pool consists of high LTV loans which might lead to an above market average default frequency of the borrowers, and in case of default, to an above average loss severity. Also only 65.2% of the properties in the pool are owner occupied and some regional concentrations in excess of the German benchmark exist in certain federal states. Due to the relatively small size of the pool, also a certain concentration on the single borrower level as the 20 largest borrowers represent 2.34% of the preliminary pool. These features have improved compared to E-MAC DE 2005-I and have also been captured by Moody's loan-by-loan analysis and resulted in penalties; and -- about 23% of the pool amount is pre-funded, therefore the characteristics of the loans to be added could be different to the preliminary pool. The addition of pre- funded loans is subject to meeting the eligibility criteria. The ratings address the expected loss posed to investors by the legal final maturity of the Notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date. EBM-ELEKTRO: Creditors' Meeting Slated for July 6 ------------------------------------------------- The court-appointed provisional administrator for EBM-Elektro- Blitz-Mitte GmbH, Joachim Voigt-Salus, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:00 a.m. on July 6. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 II Stock District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:00 a.m. on Oct. 12 at the same venue. Creditors have until Aug. 17 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against EBM-Elektro-Blitz-Mitte GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EBM-Elektro-Blitz-Mitte GmbH Damerowstr. 18 13187 Berlin, Germany The administrator can be reached at: Joachim Voigt-Salus Rankestrasse 33 10789 Berlin, Germany ELEKTRO-SCHALTANLAGEN: Creditors' Meeting Slated for July 6 ----------------------------------------------------------- The court-appointed provisional administrator for Elektro- Schaltanlagen-Service Knopfler GmbH, Detlef Ruediger Beckmann, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:05 a.m. on July 6. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 II Stock District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:05 a.m. on Oct. 12 at the same venue. Creditors have until Aug. 17 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Elektro-Schaltanlagen-Service Knopfler GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Elektro-Schaltanlagen-Service Knopfler GmbH Beilsteiner Str. 51-85 12681 Berlin, Germany The administrator can be reached at: Dr. Detlef Ruediger Beckmann Lietzenburger Road 77 10719 Berlin, Germany GENERAL MOTORS: Employees in Europe Prepare Strike Protests ----------------------------------------------------------- General Motors Corp.'s European operations will see employee demonstrations this week in protest against the carmaker's plans to transfer production to Asia where labor costs are cheaper than in Europe, Bloomberg News says. GM disclosed on May 30 that it would decide this month whether to close its Opel factory in Ruesselsheim, Germany, noting that it would cost the carmaker EUR500 more to produce one vehicle in the factory compared to GM's other plants, Bloomberg relates. According to the report, employees in Portugal held a one-day strike on June 16 while the Company and the local government held talks regarding the plant's future. 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. * * * Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corp., affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. At the same time, Fitch Ratings has placed a rating of BB and a Recovery Rating of RR1 to General Motor's new US$4.48 billion senior secured bank facility. The RR1 is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. HANSMANN-BAUELEMENTE: Claims Registration Ends July 6 ----------------------------------------------------- Creditors of Hansmann-Bauelemente GmbH have until July 6 to register their claims with court-appointed provisional administrator Robert Pinter. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 27, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hameln Hall 106 Zehnthof 1 31785 Hameln, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hameln opened bankruptcy proceedings against Hansmann-Bauelemente GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Hansmann-Bauelemente GmbH Industrial Road 9 31020 Salzhemmendorf, Germany Attn: Hanne Lore Hansmann, Manager Bakebrink 9 31008 Elze, Germany The administrator can be contacted at: Robert Pinter Suentelstrasse 44C 31848 Bad Muender, Germany Tel: 05042/93770 Fax: 05042/9377-19 Web: http://www.rawapi.de/ E-mail: Kanzlei@rawapi.de HENSEL GROUP: Claims Registration Ends July 7 --------------------------------------------- Creditors of Hensel Group GmbH have until July 7 to register their claims with court-appointed provisional administrator Ingrid Trompertz. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on Aug. 7, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall S 2.18 William route 21 53111 Bonn, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bonn opened bankruptcy proceedings against Hensel Group GmbH on May 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Hensel Group GmbH Aennchenstr. 10 53177 Bonn, Germany Attn: Reiner Hensel, Manager Simrockallee 8c 53177 Bonn, Germany The administrator can be contacted at: Ingrid Trompertz Sternstr. 79 53111 Bonn, Germany Tel: 94 59 820 Fax: 94 59 729 HEYMEX GMBH: Claims Registration Ends July 7 -------------------------------------------- Creditors of HEYMEX GmbH have until July 7 to register their claims with court-appointed provisional administrator Michael Mansfeld. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on Aug. 9, 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 Traunstein Meeting Room C 001 Herzog-Otto-Str. 1 83278 Traunstein, 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 Traunstein opened bankruptcy proceedings against HEYMEX GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: HEYMEX GmbH Ponlach 33 84529 Tittmoning, Germany The administrator can be contacted at: Michael Mansfeld Bahnhofstr. 18 83278 Traunstein, Germany Tel: 0861/986330 Fax: 0831/9863320 KAMPS AG: Moody's Junks EUR325-Million 8.5% Senior Notes -------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of Kamps AG and its subsidiaries to Caa1 from B2. The outlook remains negative. Ratings affected: -- B2 Corporate family rating lowered to Caa1; and -- B2 rating on EUR325.0 million 8.5% senior notes due 2009 lowered to Caa1. The downgrade reflects the significantly weaker than expected performance of the company since the second half of 2005, in particular in the fourth quarter, which occurred in spite of the company's reported cost saving objectives having been met. Moody's recognizes that Adjusted Total Debt/EBITDA for FY 2005 of about 6x is further elevated following the August sale to Barilla of the strongly contributing Dutch business. Moreover, operating cash flow since the beginning of 2005 has remained weak, with heavy reliance upon disposals and third parties, notably Barilla and local banking relationships, to fund the business and sizeable capital expenditure requirements, in particular the new Ludersdorf plant. At this juncture, Kamps' will need to address the profitability weakness if it is to avoid depleting its cash reserves. Moody's notes that Barilla Holding S.p.A., Kamps' majority owner, has to-date continued to support Kamps' liquidity, but Moody's does not factor that this source of funding will be extended perpetually should Kamps' own performance not improve. Kamps' liquidity currently consists of credit lines from Barilla in addition to various bank lines. Moody's understands that these loans currently rank pari passu with the 2009 Senior Notes, such that no notching is being introduced at this time, and will continue to monitor the capital structure for potential notching implications. Moody's further notes that the Barilla loans make up the majority of short-term financial obligations at Kamps, and that Barilla was supportive in enabling Kamps to repay its Senior Notes due September 2005 in a timely manner. The negative outlook reflects Moody's view that without an improvement in profitability, primarily from a reduction in fixed costs, and in light of ongoing cash restructuring costs, Kamps' operational cash requirements will increasingly rely on third parties. Moody's understands that Barilla has given binding commitments to finance Kamps' business plan until 31 March 2007, but in Moody's opinion funding visibility beyond that period remains limited in the current circumstances. The outlook could be stabilized if Kamps is able to achieve an improvement from current margins and stem the operating cash outflow. Further downward movement in the ratings could occur if Kamps' operational concerns are not addressed, which would likely result in absorption of short-term liquidity. Kamps AG, based in Dusseldorf, Germany, is the largest manufacturer and supplier of bread and bakery products in Germany. In 2005, the company reported EUR1.2 billion and EUR69.7 million in net revenues and EBITDA, respectively. MTU AERO: S&P Lifts Long-Term Corporate Credit Rating to BB+ ------------------------------------------------------------ Standard & Poor's Ratings raised its long-term corporate credit rating on Germany-based aircraft engine and component manufacturer MTU Aero Engines Holding AG, and on related entity MTU Aero Engines Investment GmbH to 'BB+' from 'BB', reflecting improvements in the group's operating performance. The outlook is stable. At the same time, the rating on MTU Investment's subordinated debt was raised to 'BB-' from 'B+'. "The upgrade reflects the steady progress made by the group in improving operational performance, reducing outstanding debt, and strengthening credit ratios in 2005 and the first quarter of 2006, as well as the strong underlying trading conditions, which are expected to allow the group to further improve its financial profile," said Standard & Poor's credit analyst Werner Staebein. "We believe MTU will continue to deleverage where possible and that the company will apply a portion of projected discretionary cash flows to reduce financial debt." At Dec. 31, 2005, MTU reported fully adjusted net debt of EUR755.3 million, consisting of reported net financial debt of EUR237.2 million, not externally funded pension obligations of EUR442.1 million, discounted operating lease commitments of EUR21.3 million, and guarantees for entities not fully consolidated of EUR54.7 million. The ratings on MTU continue to reflect the group's relatively weak business profile, which is constrained by its reliance on the cyclical civil aviation industry, vulnerability to the weakness of the U.S. dollar, and its relatively modest size compared with OEMs. Nevertheless, MTU benefits from its leading positions in niche markets and is protected by its long-term strategic alliance with Pratt & Whitney engines, its participation in engine programs through a number of risk and revenue-sharing partnerships, and its role as a strategic partner for the German Air Force. "We expect that MTU will gradually improve its operating profit and cash flows through higher civil volumes, driven by a continuation of the air traffic recovery and rising aircraft deliveries while at the same benefiting from reduced self-funded R&D, " said Mr. Staeblein. The ratings assume that MTU will attain FFO to fully adjusted net debt of about 30% and EBITDA to gross fixed-charge coverage of more than 5.0x in 2006 and beyond. PSCG NETWORK: Creditors' Meeting Slated for July 6 -------------------------------------------------- The court-appointed provisional administrator for PSCG Network Group GmbH i. L., Joachim Voigt-Salus, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:10 a.m. on July 6. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 II Stock District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:10 a.m. on Oct. 12 at the same venue. Creditors have until Aug. 17 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against PSCG Network Group GmbH i. L. on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PSCG Network Group GmbH i. L. Pheasant Road 47 10719 Berlin, Germany The administrator can be reached at: Joachim Voigt-Salus Rankestrasse 33 10789 Berlin, Germany RUDOLPH BETEILIGUNGS: Claims Registration Ends July 6 ----------------------------------------------------- Creditors of Rudolph Beteiligungs GmbH and Rudolph Beteiligungs- und Vermogensverwaltungs GmbH have until July 6 to register their claims with court-appointed provisional administrator Norbert Wischermann. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on July 27, 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 Hagen Area 283 2nd Floor Main House (New Building) Heinitzstrasse 42 58097 Hagen, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hagen opened bankruptcy proceedings against Rudolph Beteiligungs GmbH on May 26 and Rudolph Beteiligungs- und Vermogensverwaltungs GmbH on May 24. Consequently, all pending proceedings against the companies have been automatically stayed. The Debtor can be contacted at: Rudolph Beteiligungs GmbH and Rudolph Beteiligungs- und Vermogensverwaltungs GmbH Attn: Gerhard Lipinski, Manager Ohler Way 9 A 58553 Halver, Germany The administrator can be contacted at: Dr. Norbert Wischermann Untermauerstr. 22 58332 Schwelm, Germany Tel: 02336/4795-0 Fax: +49202451939 VAMOS BETRIEBS: Claims Registration Ends July 7 ----------------------------------------------- Creditors of Vamos Betriebs-GmbH have until July 7 to register their claims with court-appointed provisional administrator Romy Metzger. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Aug. 9, 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 Erfurt Hall 6 Judicial Center Erfurt Rudolfstr. 46 99092 Erfurt., 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 Erfurt opened bankruptcy proceedings against Vamos Betriebs-GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Vamos Betriebs-GmbH Attn: Christian Schalldach, Manager Muehlhaeuser Road 80 99092 Erfurt, Germany The administrator can be contacted at: Dr. Romy Metzger Steigerstr. 30 99096 Erfurt, Germany WEGNER POLSTEREI: Claims Registration Ends July 7 ------------------------------------------------- Creditors of Wegner Polsterei und Raumausstattung GmbH have until July 7 to register their claims with court-appointed provisional administrator Axel Raap. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Aug. 11, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Norderstedt Hall B City Hall Avenue 80 22846 Norderstedt, 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 Norderstedt opened bankruptcy proceedings against Wegner Polsterei und Raumausstattung GmbH on May 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Wegner Polsterei und Raumausstattung GmbH Attn: Hans-Ulrich Wegner, Manager Luettkoppel 2 23795 Fahrenkrug, Germany The administrator can be contacted at: Axel Raap Herrengraben 5 20459 Hamburg, Germany ============= I R E L A N D ============= EIRCOM GROUP: Issues 1.073 Billion Share Capital ------------------------------------------------ Eircom Group PLC confirmed on June 19, its issuance of share capital consisting of: -- 1,073,502,571 ordinary shares of EUR0.10 each, and -- -- 144,166,666 convertible preference shares of EUR0.50 each, in accordance with the City Code on Takeovers and Mergers. The ISIN code for eircom's ordinary share is GB0034341890. Headquartered in Dublin, Ireland, eircom Group plc -- http://eircom.net/-- is the principal provider of fixed-line telecommunications services in Ireland, as well as the leading Internet service provider and, following its acquisition of Meteor, the third largest mobile operator in Ireland. * * * As reported in the Troubled Company Reporter on March 3, Moody's Investors Service assigned a Ba2 corporate family rating to eircom Group plc. Concurrently Moody's changed the rating outlook to negative from stable. ========= I T A L Y ========= CIRIO FINANZIARIA: Roman Court Begins Fraud Hearings ---------------------------------------------------- A judge in Rome has commenced the hearing of fraud-related charges against 46 persons over the collapse of Cirio Finanziaria S.p.A., the Associated Press reports. The first of the series of hearings occurred on June 16, more than three years after Cirio entered bankruptcy protection following a default of over EUR1 billion in bonds. Italian news agency ANSA relates that the first session was marked by thousands of disgruntled investors registering their claims. However, ANSA notes, only a few bondholders, represented by their respective lawyers, were present at the hearing, apparently because they have already banded together. ANSA also notes the absence of the top suspects at the hearing: -- former Cirio CEO Sergio Cragnotti, -- Cragnotti's wife and three children, -- Capitalia S.p.A. chairman Cesare Geronzi, and -- former Banca Popolare Italiana CEO Gianpiero Fiorani. According to AP, prosecutors seeking trial of the suspects claim that the banks aided Cirio in issuing the bonds despite knowing of the food group's financial situation. The defendants, however, denied the charges. As reported in TCR-Europe on Oct 4, 2005, Roman prosecutors following an extensive preliminary investigation, were to charge 45 people with false communication and fraudulent bankruptcy between 1998 and 2003. The suspects were led by: * the Cragnotti family: Sergio, his wife Flora Pizzichemi; and children Andrea, Massimo, Elisabetta, her husband Filippo Fucile; * bank managers: -- Angelo Brizi -- Michele Casella -- Alberto Giovannini -- Cesare Geronzi -- Angelo Fanti -- Pietro Celestino Locati -- Remo Martinelli -- Antonio Nottola for their role in Banca di Roma; * Rainer Masera, Luigi Maranzana e Massimo Mattera (San Paolo Imi); * Gianpiero Fiorani and Giovanni Benevento (Banca Popolare di Lodi); * Cirio group consultants: -- Emma Benedetti -- Riccardo Riccardi Bianchini -- Vittorio Bottazzi -- Ernesto Chiacchierini -- Tomaso Farini -- Riccardo Ferrero -- Livio Ferruzzi -- Alfredo Gaetani -- Roberto Michetti -- Paolo Micolini -- Mauro Luis Silva E Pontes Pinto -- Ettore Quadrani -- Vittorio Romano -- Grazia Scartaccini -- Ambrogio Sfondrini -- Lucio Velo -- Giuseppe Vitali * Mayors Antonio Petrucci, Raffaele Riva, Rossano Ruggeri, Francesco Scornajenchi, Gianluca Marini, Annunziato Scordo, Francesco Matrone and Francesco Sommaruga; and * Sebastiano Baudo, executive of Deloitte & Touche. Headquartered in Rome, Italy, Cirio Finanziaria S.p.A. -- http://www.cirio.it/-- is a canned tomatoes and fruit producer. The group was forced into liquidation after it defaulted on EUR1 billion bonds and investors rejected a restructuring plan. =================== K A Z A K H S T A N =================== AK-ARLAN: Creditors Must File Claims by July 3 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region declared LLP Ak-Arlan insolvent on April 4. Creditors have until July 3 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Akmola Region Office 75 Auelbekova Str. 126 Kokshetau Akmola Region Kazakhstan Tel: 8 (3162) 25-40-67 ARNA: Creditors Must File Claims by July 3 ------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Arna insolvent. Creditors have until July 3 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Region Almatinskaya Str. 35 Pokrovka Ilisky District Almaty Region Kazakhstan Tel: 8 (3332) 26-20-31 ESENBAYEV & K: Claims Registration Ends July 3 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Esenbayev & K insolvent on April 11. Creditors have until July 3 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Region Karasai batyr Str. 15a Talgar Almaty Region Kazakhstan Tel: 8 (274) 2-73-36 8 (3003) 21-43-31 JULDYZ & K: Kyzylorda Court Opens Bankruptcy Proceedings -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceedings against LLP Juldyz & K on April 26. Proofs of claim will be accepted at: The Specialized Inter-Regional Economic Court of Kyzylorda Region Aiteke be Str. 29 Kyzylorda Kyzylorda Region Kazakhstan KERINS TAUN: Claims Registration Ends July 3 -------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Kerins Taun Ltd. insolvent on April 10. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until July 3 to submit written proofs of claim to: LLP Kerins Taun Ltd. Abai Ave. 20/16-18 Abai, Kazakhstan KOMPANIA EL-KUAT: Creditors' Claims Due July 3 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Kompania El-Kuat insolvent on April 11. Creditors have until July 3 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Region Karasai batyr Str. 15a Talgar Almaty Region Kazakhstan Tel: 8 (274) 2-73-36 8 (3003) 21-43-31 KORUS PLUS: Creditors' Claims Due July 3 ---------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Korus Plus insolvent on April 12. Creditors have until July 3 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Region Almatinskaya Str. 35 Pokrovka Ilisky District Almaty Region Tel: 8 (3332) 26-20-31 MORTGAGE GUARANTEE: S&P Affirms BB Foreign Currency Rating ---------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the Mortgage Guarantee Fund of Kazakhstan JSC to positive from stable, following the outlook revision on the Republic of Kazakhstan, and continuing strong state support. At the same time, the 'BB' long-term foreign currency counterparty credit rating on the company and the 'kzA+' Kazakhstan national scale rating were affirmed. "The ratings on MGFK reflect the start-up nature of the company, whose business is focused on the provision of mortgage guarantees in Kazakhstan," said Standard & Poor's credit analyst Felix Ejgel. "The Kazakh mortgage sector is immature, its growth is difficult to predict, and the inherent risks are hard to evaluate due to the lack of empirical evidence on national mortgage default rates." Moreover, the company's financial performance is weak due to a need to increase personnel spending and a low return on investments. The risks are partially mitigated, however, by the support MGFK receives from the Republic of Kazakhstan, its good liquidity, and low debt." The rating approach applied by Standard & Poor's Ratings Services for MGFK uses its government-supported entity criteria. Viewing the company as a public policy-based entity, Standard & Poor's has applied a top-down rating approach in assessing MGFK's credit quality, which is based on the support it receives from the national government. The absence of a liquidity mechanism or explicit state guarantee for the company's liabilities, and uncertainty about the company's policy role in the longer term explains the three-notch difference between the ratings on MGFK and those on the Republic of Kazakhstan. Standards & Poor's expects that the company will continue to receive state support in the medium term. "Capital injection until at least 2007 will help the company strengthen its market position and improve financial indicators without recourse to long-term debt," said Mr. Ejgel. "We will monitor the key performance statistics in MGFK's developing portfolio, such as evidence on default rates and fluctuations in house prices and values, which could affect the company's stand- alone credit quality, and the incentives for government support." If Kazakhstan is upgraded, then coupled with the growing profitability of the company's business, the ratings on MGFK may be raised. If the company does not manage its business properly, however, and the level of state support decreases, the ratings could come under pressure ROMUL INVEST: Mangistau Court Begins Bankruptcy Process ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region commenced bankruptcy proceedings against LLP Romul Invest. The Specialized Inter-Regional Economic Court of Mangistau Region can be reached at: Micro District 27 Aktau, Kazakhstan Tel: 8 (3292) 41-22-37 SAZ: Proof of Claim Deadline Slated for July 3 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region declared LLP Saz insolvent on April 7. Creditors have until July 3 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Akmola Region Office 75 Auelbekova Str. 126 Kokshetau Akmola Region Tel: 8 (3162) 25-40-67 STROIKABELSNAB: Almaty Court Sets July 3 Claims Bar Date -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Stroikabelsnab insolvent on April 12. Creditors have until July 3 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Region Almatinskaya Str. 35 Pokrovka Ilisky District Almaty Region Tel: 8 (3332) 26-20-31 =================== K Y R G Y Z S T A N =================== BEKSULTAN-UG: Creditors Must File Claims by Aug. 1 -------------------------------------------------- LLC Beksultan-ug has declared insolvency. Creditors have until Aug. 1 to submit written proofs of claim. The company can be contacted at (0-502) 97-37-47. FELS: Creditors' Claims Due Aug.1 --------------------------------- LLC Fels has declared insolvency. Creditors have until Aug. 1 to submit written proofs of claim. The company can be contacted at (+996 312) 97-37-47. SERGEK: Proof of Claim Deadline Slated for Aug. 4 ------------------------------------------------- Production-Construction Commercial Firm Sergek has declared insolvency. Creditors have until Aug. 4 to submit written proofs of claim to: Production-Construction Commercial Firm Sergek Zarechnaya Str. 15 Alamudun Chui Region Kyrgyzstan Tel: (+996 312) 67-90-10 =================== L U X E M B O U R G =================== EVRAZ GROUP: Beneficial Owners Sell Substantial Interest --------------------------------------------------------- Evraz Group S.A.'s principal beneficial owners signed a transaction to sell a substantial indirect interest in Evraz on June 16. The closing of the transaction awaits receipt of certain regulatory approvals. The transaction will result in the transfer to Greenleas International Holdings Limited of a 50% interest in Lanebrook Limited, an entity controlled by the principal beneficial shareholders of Evraz Group, which will hold around 82.67% of the share capital of the Company. About the Company Evraz Group is one of the largest vertically integrated steel and mining businesses with operations mainly in Russia. In 2004, Evraz produced 13.7 million tons of crude steel. Evraz's principal assets include three of the leading steel plants in Russia: Nizhny Tagil in the Urals region, and West Siberian and ovokuznetsk (in Siberia). * * * Evraz Group's 8-1/4% notes due November 2015 carry Moody's Investors Service's (P)B2 rating, Standard & Poor's B+ rating and Fitch's BB- rating. EVRAZ GROUP: Fitch Affirms BB- Sr. Unsecured & Default Ratings -------------------------------------------------------------- Fitch Ratings affirmed Luxembourg-based Evraz Group S.A.'s Issuer Default and senior unsecured ratings of BB- and its Short-term B rating following the announcement that a company associated with Roman Abramovich agreed to purchase an approximate 41.34% shareholding in the group. At the same time, the agency affirmed the BB- Issuer Default and Short-term B ratings of Mastercroft Limited, and the BB- senior unsecured rating of Evraz Securities SA. The ES bonds are not guaranteed by EG, although Mastercroft and its principal operating subsidiaries guarantee them. Fitch believes that the purchase of the stake by Mr. Abramovich may signal a more expansionary growth strategy by EG. While affirming the various ratings at their current levels, Fitch notes that the ratings continue to be subject to potential future acquisition-related event risk. There is currently limited information regarding whether the change in shareholding will result in a change in EG's future business strategy or financial policies. Should the company adopt an aggressive debt-funded acquisition strategy, this could place pressure upon its ratings. Fitch previously noted evidence of a material increase in leverage as a negative rating factor. However, any future merger and acquisition activity will be assessed on a case-by-case basis, focusing both on financial implications and strategic benefits. The Evraz group has a complex legal structure. Fitch has previously noted that future M&A activity could result in a divergence of the credit profiles of EG and Mastercroft. Acquisitions outside of Russia are expected to occur at the EG group level, while acquisitions within Russia are expected to be executed at the Mastercroft level. The change in ownership of EG is an example of the fundamental change occurring within the global steel industry marked by continuous M&A activity over the last two years, which is expected to continue. Evraz is Russia's largest steel producer with FY05 production of 13.9Mt, and ranks 13th in the world. It specializes in the production of long-steel products, operates three steel plants in Russia, two platemakers in Italy and the Czech Republic and iron ore and coalmines. ECONOMY LUXEMBOURG: Fitch Rates Upcoming Notes Issue at BB- ----------------------------------------------------------- Fitch Ratings placed Economy Luxembourg S.A.'s upcoming issue of step-up loan participation notes an expected foreign currency Long-term rating of BB-. The notes are to be used solely to finance a subordinated loan to Turkey's Turk Ekonomi Bankasi A.S.. The issuer will only pay noteholders amounts, if any, received from TEB under the subordinated loan agreement. The final rating is contingent on receipt of final documents conforming materially to information already received. TEB has a foreign currency Issuer Default rating of BB- with a Positive Outlook and a local currency IDR of BB+ with a Positive Outlook. The expected BB- rating of the subordinated notes reflects Fitch's standard notching practice for subordinated instruments of issuers with IDRs of BB- or higher. The subordinated issue rating has been notched once from TEB's BB+ local currency rating, but as TEB's foreign currency IDR is capped at the country ceiling of Turkey of BB-, the issue rating for these notes is also capped at BB-. TEB is wholly owned by TEB Financial, which is jointly owned by BNP Paribas and the Colakoglu Group. =========== P O L A N D =========== TVN S.A.: S&P Raises Long-Term Corporate Credit Rating to BB- ------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Polish TV broadcasting company TVN S.A. to 'BB-' from 'B+', reflecting the group's improved financial profile and continued operational momentum. The outlook is stable. At the same time, Standard & Poor's raised its senior unsecured debt rating on related entity TVN Finance PLC to 'B+' from 'B'. "The upgrade reflects TVN's good financial and operating performance over the past year," said Standard & Poor's credit analyst Michael O'Brien. "This improvement in financial performance has been driven by strong operational performance in 2005 and a continuation of the strong performance in the first quarter of 2006, with reported EBITDA growth of 18% year-on-year." The group managed to improve its adjusted total-debt-to-EBITDA ratio to 2.9x in the 12 months to March 31, from about 3.2x for full-year 2005. In addition to positive free operating cash flow generation of about PLZ78 million in full-year 2005, TVN generated a further PLZ71 million in the first quarter of 2006. This improvement is mainly due to strong growth in operating cash flows and lower capital expenditures and the company is expected to show significant cash flow improvement during 2006 compared with 2005. TVN's total lease-adjusted debt was PLZ910 million at March 31. The proposed purchase of 100% of leading Polish Internet portal Onet Group S.A., which is 82.4%-owned by ITI, includes a PLZ234 million cash component to buy out minorities. This transaction should enable both TVN and Onet to derive synergies for the distribution of TV content over an Internet platform in the future. We expect TVN's good position in the Polish TV market and its established and improved track record of high audience share among urban viewers will allow the group to further grow its cash flow generation. TVN is expected to maintain lease- adjusted total debt to EBITDA no higher than 4x through the cycle, while maintaining positive free cash flow generation. The ratings assume that there will be no significant change in TVN's financial policy, although it would be expected in future years that the group's cash flow generation will enable it to pay dividends. In addition, it is expected that the acquisition of Onet will positively affect TVN's free operating cash flow over the next 24 months. The ratings could be raised if the company diversifies profitability sources from its main TVN channel while continuing to improve its financial profile. Upside ratings potential would also rely on ITI maintaining business and financial risk profiles that did not place undue pressure on the resources and cash flows of TVN in the medium to long term. Conversely, the ratings would come under pressure in the event of a downturn in the Polish TV advertising market significantly affecting the visibility of TVN's cash flow generation, or in the event of excessive calls on TVN by its majority shareholder ITI to financially support or invest in new ventures. =========== R U S S I A =========== BANK POSHEKHONSKIY: Court Appoints Insolvency Manager ----------------------------------------------------- The Arbitration Court of Yaroslavl Region appointed State Corporation Agency on Endowment Insurance as Insolvency Manager for LLC Bank Poshekhonskiy. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A82-16835/05-43-B/68. The Debtor can be reached at: LLC Bank Poshekhonskiy Lyubimskaya Str. 20-a Poshekhonye 152850 Yaroslavl Region Russia BULATNIKOVO: Court Commences Bankruptcy Supervision --------------------------------------------------- The Arbitration Court of Tver Region has commenced bankruptcy supervision procedure on CJSC Bulatnikovo. The case is docketed under Case No. A66-1076/2006. The Temporary Insolvency Manager is: S. Skachkov Office 228 Chaykovskogo Str. 9 170034 Tver Russia The Debtor can be reached at: CJSC Bulatnikovo Bulatnikovo Torzhokskiy Region Tver Region Russia INTER-GAS-OIL-SERVICE-SAMARA: E. Filipjev to Manage Assets ---------------------------------------------------------- The Arbitration Court of Samara Region appointed Mr. E. Filipjev as insolvency manager for LLC Inter-Gas-Oil-Service-Samara. He can be reached at: E. Filipjev Post User Box 51 603005 N.Novgorod Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A55-29242/2005. The Debtor can be reached at: LLC Inter-Gas-Oil-Service-Samara Samara Russia KAZANSKAYA MACARONI: Court Begins Bankruptcy Supervision -------------------------------------------------------- The Arbitration Court of Tatarstan Republic has commenced bankruptcy supervision procedure on OJSC Kazanskaya Macaroni Factory. The case is docketed under Case No. A65-1155/2006- SG4-26. The Temporary Insolvency Manager is: V. Chenskikh Post User Box 54 125009 Moscow Russia The Debtor can be reached at: OJSC Kazanskaya Macaroni Factory Magistralnaya Str. 4 Kazan 420108 Tatarstan Republic Russia KOTELNICHESKOYE PEAT: Court Begins Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Kirov Region has commenced bankruptcy supervision procedure on Federal State Unitary Enterprise Kotelnicheskoye Peat Enterprise (Case No. A28-45/0b-70/20). The Temporary Insolvency Manager is: N. Dolgushev Apartment 127 Surikova Str. 41 610014 Kirov Russia The Debtor can be reached at: Federal State Unitary Enterprise Kotelnicheskoye Peat Enterprise Pervomayskiy 612605 Kirov Region Kotelnich-5 Russia MEGA: Bankruptcy Hearing Slated for Aug. 15 ------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region will convene at 1:15 p.m. on Aug. 15 to hear the bankruptcy supervision procedure on CJSC Agro Company Mega at: The Arbitration Court of Nizhniy Novgorod Region Room 238, Department 33 Kremlin 9 603082 Nizhniy Novgorod Russia The case is docketed under Case No. A43-2937/2006 33-13. The Temporary Insolvency Manager is: L. Shevarenkov Apartment 16 Lenina Pr. 57/2 Dzerzhinsk 606000 Nizhniy Novgorod Region Russia The Debtor can be reached at: CJSC Agro Company Mega Arapovo Bogorodskiy Region Nizhniy Novgorod Region Russia OAO ROSNEFT: Summary of Voting Results on Rosneft Consolidation --------------------------------------------------------------- OAO Rosneft summarized the official voting results on the Company's restructuring through the consolidation of its 12 subsidiaries. The summation of the votes at the subsidiaries' extraordinary shareholders meetings reveals: Voting Subsidiaries Quorum For Against ------------ ------ ----- ------- Rosneft-Krasnodarneftegaz 96.56% 99.92% 0.015% Rosneft-Purneftegaz 90.8% 99.94% 0.01% Rosneft-Sakhalinmorneftegaz 68.47% 99.7% 0.19% Rosneft-Stavropolneftegaz 79.27% 99.64% 0.073% Yuganskneftegaz 100% 100% Severnaya Neft 100% 100% Selkupneftegaz 100% 100% Rosneft-Komsomolsk Refinery 85.25% 98.03% 1.88% Rosneft-Tuapse Refinery 88.91% 99.7% 0.1% Rosneft-Arkhangelsknefteprodukt 92.08% 99.67% 0.1% Rosneft-Nakhodkanefteprodukt 84.63% 98.04% 0.164% Rosneft-Tuapsenefteprodukt 85.67% 99.22% 0.56% With the exception of Sakhalinmorneftegaz, where there was not a required quorum on the issue, all of Rosneft's subsidiaries ratified the agreement on joining the head company. In the near future, an extraordinary meeting of shareholders at Sakhalinmorneftegaz will be held whose agenda will contain a single question on ratification of the agreement to join Rosneft-Sakhalinmorneftegaz with Rosneft. Meanwhile, of those participating in the vote on this question, 99.4% expressed their approval. The summation of the votes taken in absentia as part of the joint general extraordinary meeting of shareholders in Rosneft and its 12 subsidiaries reveals the following results. In accordance with the ratification of the agreements on consolidation by the subsidiaries' shareholders, the meeting approved amendments and addenda to the preamble of Rosneft's charter, according to which the Company will be the successor of the consolidated subsidiaries. With a quorum of 99.14%, 99.9699% voted for this decision, and 0.0023% voted against. Rosneft's consolidation is the logical conclusion to the process of forming a unified vertically integrated oil and gas company of international standing. Lower costs and a more efficient system of management will result from the consolidation, which will make it possible for the Company to receive favorable financing terms on global capital markets, allowing it to increase the scale of its investments in key strategic growth projects. Headquartered in Moscow, OAO Rosneft -- http://www.rosneft.com/english-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * Standard & Poor's assigned B+ ratings to Rosneft's long-term and local foreign issuer credit, while Fitch assigned BB+ ratings to the Company's foreign currency and local currency long-term debt in 2005. PILNA-AGRO-SERVICE: Court Names P. Sedaev as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region appointed Mr. P. Sedaev as insolvency manager for OJSC Pilna-Agro-Service. He can be reached at: P. Sedaev Office 7 B. Pecherskaya Str. 45a 603155 Nizhniy Novgorod Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43-9229/2005-18-244. The Debtor can be reached at: OJSC Pilna-Agro-Service Kalinina Str. 74 Pilna Nizhniy Novgorod Region Russia PUSHKINSKOYE: Bankruptcy Hearing Slated for July 11 --------------------------------------------------- The Arbitration Court of Orenburg Region will convene at 10:00 a.m. on July 11 to hear the bankruptcy supervision procedure on CJSC Pushkinskoye (Case No. A47-233/2006-14gk) at: The Arbitration Court of Orenburg Region 9th January Str. 64 Orenburg Russia The Temporary Insolvency Manager is: Mr. N. Stulkov Poymennaya Str. 20 Solnechnyj 460051 Orenburg Russia The Debtor can be reached at: CJSC Pushkinskoye Pushkinskiy Krasnogvardeyskiy Region Orenburg Region Russia SEL-KHOZ-TEKHNIKA: Court Names E. Kotkov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region appointed Mr. E. Kotkov as insolvency manager for OJSC Sel-Khoz-Tekhnika (Case No. A43-33354/2005 24-521). He can be reached at: E. Kotkov Post User Box 76 603159 Nizhniy Novgorod Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: OJSC Sel-Khoz-Tekhnika Mekhanizatorov Str. Vorotynets Vorotynskiy Region Nizhniy Novgorod Region Russia SOLAGID: Court Appoints Enukashvili as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Tyumen Region appointed Mr. Enukashvili as insolvency manager for CJSC Solagid. He can be reached at: Mr. Enukashvili Yugorsk Kirova Str. 10-88 Khanty-Mansiyskiy Autonomous Region 628260 Tyumen Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A70-6698/3-05. The Debtor can be reached at: CJSC Solagid Respubliki Str. 230 Tyumen Russia SOUTHERN TELECOM: Board Appoints Alexander Andreev as CEO --------------------------------------------------------- The Board of Directors for Southern Telecommunications Company (UTK) appointed Alexander Andreev as chief executive officer and released Georgy Romsky as General Director, at his request for personal reasons on June 15. "In a short time Georgy Romsky succeeded in solving the main tasks - stabilization of the Company's financial and economic position and creation of conditions for its further progress," Sergey Kuznetsov, UTK Board Chairman, said. "No doubt, Alexander Andreev, being an experienced executive and a truly professional, will continue this development strategy. He has been working in the telecommunications sector for about thirty years and has deserved authority with the professional community." "I consider it an honor to be at the head of Southern Telecommunications Company PJSC," Mr. Andreev said. "I thank the Company's shareholders and Board of Directors for their trust put in me. I see priorities in formation of management environment necessary for further stable development of the Company, active expansion and promotion of modern telecommunication services provided by UTK PJSC and enhancement of the Company's investment appeal." Mr. Andreev, 52, graduated from the Bonch-Bruevich Leningrad Electrotechnical University as a telecommunications engineer. He was General Director of OJSC Electrosvyaz of the Kaliningrad region until 2002, and served as Regional Director of North- Western Telecom OJSC's Kaliningrad branch thereafter. Alexander Andreev holds an honorary title "Master of Telecommunications". About the Company Headquartered in Krasnador, Russia, Southern Telecommunications Co. -- http://www.stcompany.ru/-- provides local, long- distance, and cellular telephone, paging and telegraph services. * * * Southern Telecommunications carries Moody's Investors' Service's Caa1 issuer rating and B3 long-term corporate family rating since 2004. Standard & Poor's also assigned junk ratings to the Company's issuer credit in 2005. TEPLO-ENERGY: Court Names G. Nosikov to Manage Assets ----------------------------------------------------- The Arbitration Court of Lipetsk Region appointed Mr. G. Nosikov as insolvency manager for CJSC Teplo-Energy. G. Nosikov Office 407 Kommunalnaya Str. 9 398059 Lipetsk Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A36-5245/2005. The Debtor can be reached at: CJSC Teplo-Energy Poperechnyj Proezd 3 398002 Lipetsk Russia TTS: Tomsk Court Starts Bankruptcy Supervision ---------------------------------------------- The Arbitration Court of Tomsk Region has commenced bankruptcy supervision procedure on CJSC Wood Working Combine Enterprise TTS. The case is docketed under Case No. A67-2681/06. The Temporary Insolvency Manager is: Y. Antonets Govorova Str. 1A 634057 Tomsk Russia The Debtor can be reached at: CJSC Wood Working Combine Enterprise TTS Mostovaya Str. 20/2 Tomsk Russia VYATKA ICE: Court Appoints G. Turanov to Manage Assets ------------------------------------------------------ The Arbitration Court of Kirov Region appointed Mr. G. Turanov as insolvency manager for CJSC Company Vyatka Ice (TIN 432448019784). He can be reached at: G. Turanov Office 106 K. Marksa Str. 21 610020 Kirov The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A28-21/06-10/6. The Debtor can be reached at: CJSC Company Vyatka Ice Svobody Str. 60 610000 Kirov Russia WOOD WORKING: Court Names V. Nikishkin as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Ulyanovsk Region appointed Mr. V. Nikishkin as insolvency manager for CJSC Wood Working Combine. He can be reached at: V. Nikishkin Post User Box 46 Novospasskoye 433870 Ulyanovsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A72-9531/05-21/50-6 b. The Debtor can be reached at: CJSC Wood Working Combine Zhukovskogo Str. 6 Dimitrovograd Ulyanovsk Region Russia ========= S P A I N ========= SANTANDER HIPOTECARIO: Moody's Junks EUR17.6-Mln Series F Notes --------------------------------------------------------------- Moody's Investors Service assigned the following provisional ratings to six series of residential mortgage-backed Bonos de Titulizacion de Activos to be issued by Fondo de Titulizacion de Activos SANTANDER HIPOTECARIO 2, a Spanish Asset Securitization Fund created by Santander de Titulizaci�n, S.G.F.T, S.A.: -- EUR1.801 billion Series A notes: (P)Aaa; -- EUR51.8 million Series B notes: (P)Aa2; -- EUR32.3 million Series C notes: (P)A2; -- EUR49.8 million Series D notes: (P)Baa2; -- EUR19.6 million Series E notes: (P)Ba3; and -- EUR17.6 million Series F notes: (P)Caa2. This transaction consists of the securitization of a pool of first-lien residential mortgage loans originated and serviced by Banco Santander Central Hispano (SCH) one of the leading Spanish banks and with a proven track record in the securitization market. All of the loans comprising the collateral have a Loan- to-Value (LTV) exceeding 80%. The pool comprises 13,916 loans representing a provisional portfolio of EUR2,040,785,095. The loans are originated between 2003 and 2005, with a weighted average seasoning of approximately 1.53 years. The original weighted average LTV is 92.07%. The current weighted average LTV is 88.76%. The pool is well diversified across Spain. According to Moody's, this deal benefits from several strengths, including: -- a swap agreement that guarantees a 65-bppa Xs spread plus the servicing fee in the event of SCH being replaced as servicer; -- a reserve fund that is fully funded at closing from the proceeds of the issue of the Series F Notes to cover any potential shortfall in interest and principal; -- an 18-month artificial write-off mechanism; and -- the fact that 100% of the loans are secured by first lien residential mortgages. However, Moody's notes that the deal also features a number of credit weaknesses, notably: -- the fact that the collateral comprises loans with an LTV of over 80%, which leads to a higher expected default frequency and more severe losses; -- the absence of any information on the occupancy type of the borrowers; and -- the fact that, although the deferral of interest payments on each of Series B, C, D and E benefits the repayment of the series senior to each of them, it increases the expected loss on Series B, C, D and E themselves. All of these increased risks were reflected in Moody's credit enhancement calculation. Moody's has based its ratings on: -- an evaluation of the underlying portfolio of mortgage loans securing the structure, and -- the transaction's structural protections, which include the subordination of the notes, the strength of the cash flows and any excess spread available to cover losses. The ratings address the expected loss posed to investors by the Legal Final Maturity. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated Final Legal Maturity date on Series A, B, C, D and E, and for ultimate payment of interest and principal at par on or before the rated Final Legal Maturity date on Series F. Moody's issues provisional ratings in advance of the final sale of financial instruments, but these ratings only represent Moody's preliminary credit opinions. Upon a conclusive review of the transaction and associated documentation, the rating agency will endeavour to assign a definitive rating. A definitive rating if any may differ from a provisional rating. SANTANDER HIPOTECARIO: S&P Assigns Junk Ratings to Class F Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR1.955 billion mortgage-backed floating- rate notes to be issued by Fondo de Titulizacion de Activos Santander Hipotecario 2. In addition, an overissuance of EUR17.600 million floating-rate notes will be issued. Santander Hipotecario 2 will purchase mortgage transmission certificates from the participation issuer, Banco Santander Central Hispano, S.A., and will issue six classes of floating- rate notes. The class A to E notes are backed by a pool of first-ranking mortgages secured over residential properties located in Spain and originated by Santander. The class F notes will fund the reserve fund and will be repaid with excess spread. The originator, Santander, is the largest banking group in Spain and among the 15 largest in Europe. It is also an experienced originator. This is the 23rd securitization to be originated by the Santander group over its residential mortgage portfolio. The main feature of this transaction is the collateral itself. Santander Hipotecario 2 is purchasing high LTV ratio loans, 99.45% of which have LTV ratios of between 70% and 100%. Santander reserves the less than 80% LTV ratio loans for collateral of cedulas hipotecarias and therefore uses ineligible collateral under the cedulas legal framework for securitization purposes. The transaction also features mortgage insurance on a portion of the loans being provided by Genworth Financial Mortgage Insurance Ltd. and AIG Europe S.A. Mortgage insurance potentially reduces the losses incurred. The swap agreement provides credit enhancement to the transaction by providing additional excess spread and adjusted notional. The notes are weak-linked to the rating on Santander as swap counterparty. Ratings List Fondo de Titulizacion de Activos Santander Hipotecario 2 EUR1.955 Billion Mortgage-Backed Floating-Rate Notes And An Overissuance of EUR17.600 Million Floating-Rate Notes Class Prelim. Prelim. rating amount (Mil. EUR) ----- ------ ------ A AAA 1,801.5 B AA- 51.8 C A- 32.3 D BBB 49.8 E BB 19.6 F (1) CCC- 17.6 (1) The class F notes will be funding the reserve fund at closing. The class F notes will be repaid through excess spread. ============= U K R A I N E ============= ALFA-TELEKOM: Court Starts Bankruptcy Supervision ------------------------------------------------- The Economic Court of Sevastopol commenced bankruptcy supervision procedure on LLC Alfa-Telekom (code EDRPOU 30889475) on Feb. 14. The case is docketed under Case No. 20-5/048. The Temporary Insolvency Manager is: Svitlana Bikova Gorpishenko Str. 92/3 Sevastopol AR Krym Region Ukraine The Economic Court of Sevastopol is located at: Pavlichenko Str. 5 Sevastopol 99011, AR Krym Region Ukraine The Debtor can be reached at: LLC Alfa-Telekom Shosta Bastionna Str. 46-612 Sevastopol AR Krym Region Ukraine KIYIVINSTRUMENT: Court Names P. Kushneryov to Liquidate Assets -------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. P. Kushneryov as Liquidator/Insolvency Manager for Joint LLC Kiyivinstrument (code EDRPOU 30580042) The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 20. The case is docketed under Case No. 23/107-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: Joint LLC Kiyivinstrument: Sosura Str. 7 02090 Kyiv Region Ukraine MELNIKIVTSI: Court Names Sergij Sklyar as Insolvency Manager ------------------------------------------------------------ The Economic Court of Vinnitsya Region appointed Sergij Sklyar as Liquidator/Insolvency Manager for Agricultural LLC Melnikivtsi (code EDRPOU 31365131). The Court commenced bankruptcy proceedings against the company after finding it insolvent on March 23. The case is docketed under Case No. 5/255-05. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: Agricultural LLC Melnikivtsi Melnikivtsi Nemiriv District 22860 Vinnitsya Region Ukraine MERCURY: Ivano-Frankivsk Court Begins Bankruptcy Supervision ------------------------------------------------------------ The Economic Court of Ivano-Frankivsk Region commenced bankruptcy supervision procedure on OJSC MERCURY (code EDRPOU 00954372) on March 24. The case is docketed under Case No. B-7/76. The Temporary Insolvency Manager is: Vasil Martinuk Pivdennij bulvar Str. 42/9 Ivano-Frankivsk Region Ukraine The Economic Court of Ivano-Frankivsk Region is located at: Shevchenko Str. 16a 76000 Ivano-Frankivsk Region Ukraine The Debtor can be reached at: OJSC Mercury B. Hmelnitskij Str. 25 Dolina Ivano-Frankivsk Region Ukraine OCHAKIV FISH: Mikolaiv Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Economic Court of Mikolaiv Region commenced bankruptcy supervision procedure on OJSC Ochakiv Fish Tin Combine (code EDRPOU 00463102) on April 28. The case is docketed under Case No. 10/222/06. The Temporary Insolvency Manager is: Volodimir Barantsov 1-a Slobidska Str. 8-a 54055 Mikolaiv Ukraine The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Urkaine The Debtor can be reached at: OJSC Ochakiv Fish Tin Combine Chervonih Partizan Str. 9 Ochakiv Mikolaiv Region Ukraine REZONANS: Court Names Mr. S. Dyachenko to Liquidate Assets ---------------------------------------------------------- The Economic Court of Chernigiv Region appointed Mr. S. Dyachenko as Liquidator/Insolvency Manager for JSCCT Plant Rezonans (code EDRPOU 02968312) The Court commenced bankruptcy proceedings against the company after finding it insolvent on March 21. The case is docketed under Case No. 9/127 b. The Economic Court of Chernigiv Region is located at: Miru Avenue 20 14000 Chernigiv Region Ukraine The Debtor can be reached at: JSCCT Plant Rezonans Lubetska Str. 187 14021 Chernigiv Region Ukraine ROBEMI: Court Names Oleg Shestopalov as Liquidator -------------------------------------------------- The Economic Court of Zaporizhya Region appointed Oleg Shestopalov as Liquidator/Insolvency Manager for LLC Robemi (code EDRPOU 33050776). He can be reached at: Oleg Shestopalov Gavrilov Str. 5/48 69118 Zaporizhya Region Ukraine Tel: 8 (061) 220-75-58 The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 10. The case is docketed under Case No. 19/62/06. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Robemi Antenna Str. 11 69057 Zaporizhya Region Ukraine UNIVERSAL: AR Krym Court Begins Bankruptcy Supervision ------------------------------------------------------ The Economic Court of AR Krym Region commenced bankruptcy supervision procedure on LLC Universal (code EDRPOU 25134204). The case is docketed under Case No. 2-5/7175-2006. The temporary insolvency manager is Larisa Gorulko. The Economic Court of AR Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region Ukraine The Debtor can be reached at: LLC Universal 13 Listopada Str. 31-b Yevpatoriya 97400 AR Krym Region Ukraine =========================== U N I T E D K I N G D O M =========================== AZTEC INTERIORS: Appoints Andrew Appleyard as Administrator ----------------------------------------------------------- Andrew Appleyard of Haines Watts was appointed administrator of Aztec Interiors Limited (Company Number 03650028) on May 26. Haines Watts -- http://www.hwca.com/-- is a national U.K. business advisory and accountancy firm with a network of practices strategically placed throughout England, Wales and Scotland, offering tax and general business advice. Its experienced tax accountants, business advisors and special service teams will help its clients with every aspect of its business. Headquartered in Tamworth, United Kingdom, Aztec Interiors Limited is engaged in interior decorating. BAA PLC: Ferrovial Faces Tough Bondholder Talks on Takeover Deal ---------------------------------------------------------------- Spain's Grupo Ferrovial SA is facing tough negotiations with BAA plc's bondholders as it attempts to finalize its GBP16.4 billion bid for the world's largest airport operator, the Financial Times says. According to FT, Ferrovial could struggle to win market support necessary to raise the long-term finance to underpin its planned takeover deal if it fails to secure an agreement with the bondholders. Ferrovial expects to begin talks in the coming weeks after it approached the Association of British Insurers in an attempt to broker a settlement with investors, Reuters reports. Acceptance Requirement Level Bloomberg News reports that Ferrovial may cut the minimum acceptance requirement for the takeover offer below the current 90% level. The acceptance period will run until Monday, June 26. Headquartered in London, England, BAA plc -- http://www.baa.com/ -- owns and operates seven airports in the United Kingdom, including Healthrow, the world's busiest international airport, and Budapest Airport, serving 700 destination by around 300 airlines. Its U.K. airports handled over 117 million international passenger during the 12 months up to October 2005. International passengers make up 81% of its total U.K. airport traffic. BAA had total assets of GBP15.2 billion and pre-tax profits of GBP757 million for the year ended March 31, 2006. * * * As reported in TCR-Europe on June 9, Moody's Investors Service downgraded to Ba1 from Baa3 the issuer rating of BAA Plc as well as the ratings for: -- GBP425 million convertible bonds due August 2009; -- GBP424 million convertible bonds due April 2008; and -- GBP200 million 7.875% bonds due February 2007. BAA's short-term rating was also downgraded to Not Prime from Prime-3. All other long-term debt ratings remain at Baa2. All long-term ratings remain on review for further downgrade. BERNARD WARD: Names Joint Administrators from KPMG LLP ------------------------------------------------------ Jane Bronwen Moriarty and James Douglas Ernle Money of KPMG LLP were appointed joint administrators of Bernard Ward Limited (Company Number 00591187) on May 26. KPMG -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the U.K. providing audit, tax and advisory services. Bernard Ward Limited can be reached at: Accent Pl Bakewell Road Orton Southgate Peterborough PE2 6XS United Kingdom Tel: 01733 390 190 BRITISH AIRWAYS: Trustee Sells 50,311 Units in Share Scheme ----------------------------------------------------------- Computershare Trustee Limited, the trustee of the British Airways Employee Benefits Trustees (Jersey) Limited notified British Airways PLC that the Trust sold on June 15 and 16, 25,125 and 25,186 ordinary shares of 25 pence each at a price of 359.25 pence and 357.50 pence per share, respectively. The executive directors of the Company, as well as other employees of the Company, are potential beneficiaries of the Trust. As such, they are deemed to be interested in the shares held by the Trust. Accordingly, the number of shares in which the directors are interested decreased by 50,311 on the date of sale. The relevant executive directors are Willie Walsh, Martin George and Keith Williams. About the Company Headquartered in West Drayton, England, British Airways Plc -- http://www.ba.com/-- is the UK's largest international scheduled airline, flying to over 550 destinations. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. EBENISTE LIMITED: Taps P&A Partnership to Administer Assets ----------------------------------------------------------- John Russell and Christopher Michael White of The P&A Partnership were appointed joint administrators of Ebeniste Limited (Company Number 03550218) on May 23. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- is a member firm of the Insolvency Practitioners Association and the Association of Business Recovery Professionals (R3) and act for all clearing banks and a growing number of factors and asset lenders. Its clients include multinational PLCs, SMEs, financial institutions, accountants, solicitors and business advisors. Headquartered in Mansfield, United Kingdom, Ebeniste Limited manufactures furniture. GENERAL MOTORS: Employees in Europe Prepare Strike Protests ----------------------------------------------------------- General Motors Corp.'s European operations will see employee demonstrations this week in protest against the carmaker's plans to transfer production to Asia where labor costs are cheaper than in Europe, Bloomberg News says. GM disclosed on May 30 that it would decide this month whether to close its Opel factory in Ruesselsheim, Germany, noting that it would cost the carmaker EUR500 more to produce one vehicle in the factory compared to GM's other plants, Bloomberg relates. According to the report, employees in Portugal held a one-day strike on June 16 while the Company and the local government held talks regarding the plant's future. 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. * * * Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corp., affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. At the same time, Fitch Ratings has placed a rating of BB and a Recovery Rating of RR1 to General Motor's new US$4.48 billion senior secured bank facility. The RR1 is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. GENERAL MOTORS: Moody's Rates Proposed US$4.5-Bln Facility at B2 ---------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corp., affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. The rating outlook is negative. The downgrade of the unsecured rating concludes a review that was initiated on May 5th when GM announced the possibility of granting security to its bank lenders. The ratings of General Motors Acceptance Corporation, and Residential Capital Corporation are unaffected. The assignment of a B2 rating to the secured credit facility reflects Moody's view that the borrowing base provisions of the proposed facility, in combination with the assets upon which lenders will have a first priority lien, would afford secured bank lenders with materially improved asset protection and recovery prospects relative to unsecured lenders. Assets included in the security package include certain US receivables and inventory, certain Canadian receivables and inventory, certain Canadian property plant and equipment, and 65% of the shares of Controladora GM -- the parent company of GM's profitable Mexican operation General Motors de Mexico. The downgrade of the unsecured debt reflects the diminution in the asset coverage that would be available to this class of creditors as a result of the granting of security to certain bank lenders. Moody's notes that under the terms of the proposed amendment and extension, lenders who vote in favor of the amendment will receive security in exchange for extending the maturity of their commitment to 2011, while lenders not voting in favor of the amendment will retain the original maturity date of June, 2008 but will remain unsecured. The rating agency said that any unsecured tranches of the credit facility would be rated Caa1, equivalent with the company's other unsecured debt. The affirmation of GM's B3 corporate family rating reflects Moody's view that the granting of security to its bank lenders does not fundamentally alter the company's overall credit risk or expected loss profile. Rather, with expected loss representing the probability of default times the degree of loss experienced in the event of default, the granting of security represents a redistribution of the loss-given-default component among secured and unsecured lenders. Moody's plans to supplement its traditional assessment of expected loss with a proposed Loss-Given-Default Methodology for which a request for comment was circulated during January 2006. Research by Moody's suggests that the realized credit losses on loans have tended to be lower than losses on similarly rated bonds. Moody's research further suggests that the application of a rigorous estimation model for LGD could support a higher degree of up notching for bank facilities than has been the case with Moody's traditional notching methodology, which ascribes considerable importance to asset coverage. Upon the implementation of its LGD methodology, Moody's will adjust the ratings of GM's secured credit facility accordingly. GM's negative outlook reflects the considerable near-and- intermediate-term operating challenges the company continues to face. These include achieving a successful reorganization of Delphi, completing the sale of a majority interest in General Motors Acceptance Corporation, stemming its share loss in North America, and achieving a 2007 UAW contract that affords material relief from its current health care obligations and jobs bank program. Ensuring adequate liquidity is a critical element in GM's strategy for contending with these operational challenges. The company's sizable liquidity position of approximately US$22 billion in cash and short-term VEBA could benefit from the US$10 billion in up front proceeds from the GMAC sale and from establishing an accessible credit facility of up to US$4.5 billion. "The recent extension of the GM-Delphi buyout program helps to lessen the likelihood of a strike at Delphi and is a modestly positive development on the operational side. Similarly, the company's ability to put an accessible credit facility in place would be a modest enhancement of its liquidity profile," said Bruce Clark, a senior vice president with Moody's. Despite these potentially positive developments, GM continues to face formidable intermediate-term challenges. "GM still has a long road ahead of it and there isn't much likelihood of positive movement in the rating until the company can stem its loss in market share, show that it can preserve the profitability of its new line of large trucks and SUVs, achieve a viable UAW contract in 2007, and get on track for generating positive free cash flow for 2007," Mr. Clark said. General Motors Corporation, headquartered in Detroit, Michigan, is the world's largest automotive manufacturer. GENERAL MOTOR: Fitch Puts BB Rating to US$4.48-Billion Bank Loan ---------------------------------------------------------------- Fitch Ratings placed a rating of BB and a Recovery Rating of RR1 to General Motor's new US$4.48 billion senior secured bank facility. The RR1 is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. Although the offering of security to bank lenders moderately impairs the position of GM's unsecured debtholders, the recovery rating for unsecured holders still falls within the 30%-50% range represented by the RR4 designation. The Issuer Default Rating is affirmed at B, and remains on Rating Watch Negative. Fitch's ratings for GMAC remain at BB, Rating Watch Positive, and are not affected by the new bank financing. The bank agreement is secured by certain North American receivables and inventory, a stock pledge of a Mexican subsidiary, and certain PP&E in Canada. These assets also act as collateral for US$1.5 billion in non-loan facilities, bringing the total amount of facilities secured by these assets to approximately US$6 billion. The assets pledged provide sufficient over-collateralization to support the RR1 rating, and borrowing base restrictions provide further protection to secured lenders. GM's ratings remain on Rating Watch Negative, based on short- term concerns with the unresolved Delphi situation. In addition to the long-term liabilities that GM will absorb under its guarantee of pension and OPEB obligations to Delphi workers, GM is expected to provide other forms of near-term financial assistance in order to prevent any significant work stoppage. Financial assistance is expected to come in a variety of forms, including the financing of buyout packages. High acceptance rates of buyout packages being offered to GM and Delphi hourly workforces could facilitate the resolution of the Delphi situation. However, wage and benefit programs for the remaining hourly workforce have yet to be resolved, and Delphi has also not resolved its large underfunded pension position and faces a pending US$1.1 billion required contribution. Fitch anticipates that the Rating Watch Negative status will remain in place until a new labor agreement is reached, and ratified by Delphi's unions. A Delphi work stoppage that results in a material shutdown of GM's North American production would likely result in a downgrade of the IDR and unsecured ratings to the CCC category. A review of the rating could also take place in the event that GM's agreement to sell a 51% interest in GMAC to a group of investors does not proceed as planned, or in the event of a further deterioration in operating results. Recent product introductions have supported revenues to date in 2006, providing time for GM to address its fixed cost structure, although the duration of recent sales performance remains uncertain given the continuing decline of industry sales in the large SUV segment. In addition, stresses in the supply base and high commodity costs will continue to hinder the company's cost reduction efforts. GENERAL MOTORS: S&P Rates Proposed US$4.5-Bln Facility at B+ ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B+' bank loan rating to General Motors Corp.'s proposed US$4.48 billion senior bank facility, expiring 2011, with a recovery rating of '1'. The bank loan is rated one notch higher than the corporate credit rating. This and the '1' recovery rating indicate that lenders can expect full recovery of principal in the event of a payment default. At the same time, Standard & Poor's lowered its senior unsecured debt rating on GM to 'B-' from 'B'. The downgrade of the unsecured debt stems from the pending secured bank transaction, which disadvantages the unsecured debt. All ratings on GM, including the 'B+' bank loan rating -- but excluding the '1' recovery rating -- are on CreditWatch with negative implications. The new secured facility provides the company with approximately the same size bank facility as its existing US$5.6 billion facility, but with more certain access and a longer maturity. Unlike the previous unsecured facility, we would expect GM to borrow from time to time under the new revolving credit facility for operating needs. S&P estimates that the absolute recovery prospects for the unsecured creditors are in the mid-50% area. In addition, the disadvantage to the unsecured debtholders is reflected by priority claims to adjusted assets in the low 20% area. S&P expects GM's ratings to remain on CreditWatch for several more months. Court hearings on Delphi Corp.'s motion to reject its labor contracts have now been adjourned until Aug. 11, and hearings on Delphi's request to reject unprofitable supply contracts with GM have been postponed also until Aug. 11. S&P expects negotiations between Delphi, the United Auto Workers, and GM to continue, however. Still, S&P could lower GM's ratings at any time if evolving events at Delphi warrant -- and an interim downgrade is possible prior to resolution of the CreditWatch. Although the proposed bank facility is considered an incremental positive for GM's liquidity, even prior to establishment of the new bank facility, S&P believes GM's liquidity should remain adequate to meet near-term funding requirements. Ratings List: * General Motors Corp. Corporate credit rating B/Watch Neg/B-3 -- Rating Assigned US$4.48 billion secured bank loan B+/Watch Neg Recovery rating 1 -- Rating Lowered To From -- ---- Senior unsecured debt B-/Watch Neg B/Watch Neg -- Ratings Remaining On CreditWatch With Negative Implications Corporate credit rating B/Watch Neg Short-term rating B-3/Watch Neg GIPPING CONTAINER: Hires Joint Administrators from Vantis --------------------------------------------------------- Geoffrey Paul Rowley and Nicholas Hugh O'Reilly of Vantis were appointed joint administrators of Gipping Container Services Limited (Company Number 03843122) on May 25. Headquartered in West Sussex, Vantis Numerica (nka Vantis plc) - - http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. Headquartered in Felixstowe, Suffolk Gipping Container Services Limited is engaged in freight distribution. INTERNATIONAL MOVING: Creditors Pass Winding Up Resolution ---------------------------------------------------------- Creditors of International Moving Systems Limited passed a resolution to wind up the company's operations during an extraordinary general meeting on April 4. William Antony Batty, of Antony Batty & Co, was appointed Liquidator. The company can be reached at: International Moving Systems Limited Jacks Hill Farm Jacks Hill Graveley Hitchin Hertfordshire SG4 7EQ United Kingdom Tel: 01462 674 444 Fax: 01462 671 414 KEIGHLEY CUSHIONS: Appoints PwC as Joint Administrators ------------------------------------------------------- David Malcolm Walker and Ian David Green of PricewaterhouseCoopers LLP were appointed joint administrators of Keighley Cushions Limited (Company Number 02587486) on May 25. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides, among others, auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. Keighley Cushions -- http://www.keighley-cushions.co.uk/-- is a family run business, with 25 years of knowledge and experience of cushion production. KINDER INTERNATIONAL: Financial Woes Prompt Liquidation ------------------------------------------------------- Kinder International Systems Limited is winding up its operations after creditors established the company could no longer continue its business due to mounting debts. M.C. Bowker of Unity Business Services LLP was appointed Liquidator. The company can be reached at: Kinder International Systems Limited 2 Newby Road Hazel Grove Stockport Cheshire SK7 5AS United Kingdom Tel: 0161 483 8166 LUCITE INT'L: Moody's Lowers Corporate Family Rating to B1 ----------------------------------------------------------- Moody's Investors Service downgraded Lucite International Group Holdings Limited corporate family rating to B1 from Ba3 and existing senior unsecured notes at Lucite International Finance Plc to B3 from B2. Moody's assigned (P)B1 rating to the proposed secured bank facilities at Lucite International US Finco Limited and Lucite International Finco Limited that are intended to refinance Company's existing debt. Upon repayment and cancellation of the existing notes, Moody's will withdraw the respective rating. The rating action was prompted by: -- Lucite's announced changes to its capital structure; and -- the subsequent expected increase in the level of total debt. This concludes the review initiated on June 8. Outlook on all ratings is stable. Following its LBO in 1999, operating and financial performance of Lucite International has improved significantly and allowed the Company to strengthen its balance sheet and de-leverage from the peak level of approximately x6.2 on a Total Debt / EBITDA basis in 2001 to approximately x3.2 at the end of 2005. The lowering of the corporate family rating by one notch principally reflects the absolute level of debt to be assumed by the Company as a result of the refinancing, bringing Net Debt / EBITDA to x4.6 and Total Adjusted Debt / EBITDAR to x5.7. The rating also reflects the significant CAPEX planned by the group in 2006-2008 when the new Alpha plant will be constructed and the immediate effect the program will have on Lucite's FCF, which is expected to be negative during the build-out period of 2006-2007. The Company's Cash flow may be further impacted in the future by the payment of EUR25 million EU fine that has been recently announced and is being reviewed by the Company. Furthermore, Moody's notes that Lucite's margins remain dependent on the evolution of raw material prices. From 2003 to 2005, raw material prices have continued to grow driven by rising oil prices, whilst natural gas prices escalated both in the US and U.K. in Q4'05-1Q'06 z. While Moody's notes that to date increases in raw material costs were mostly passed to Lucite's customers, margins are expected to remain under considerable pressure. The B1 corporate family rating also reflects: -- Lucite's robust operating and financial performance since the buy-out in 1999; -- the group's continuous cost reduction measures that underpin its competitive cost position; -- the group's leading global position and increasing presence in high growth low costs areas; -- prudent financial management and track-record of successful deleveraging; and -- opportunities that are expected to arise from the commissioning of a new MMA plant through the Alpha process, as well as anticipated cost advantages that should further support Lucite's margins and business position in the future. Moody's stable outlook reflects an overall expectation of a balanced business environment for the group. Given a sizable capital expenditure planned by the group, Moody's expects Lucite to maintain its leverage in the medium term. Ratings affected: -- the B1 corporate family rating at Lucite International Group Holdings Ltd.; -- the (P)B1 rating on senior secured bank facilities to be raised at Lucite International US Finco Limited and Lucite International Finco Limited; and -- the B3 rating on senior unsecured notes at Lucite International Finance plc. Lucite is the leading global producer of methyl methacrylate and downstream products with over 1000 kte of total production capacity. Lucite reported 2005 Net Revenues of GBP780 million and EBITDA of GBP112 million (GBP203 million and EBITDA of GBP21 million for the 1st Quarter of 2006). M. & C. LIMITED: Calls In Tenon Recovery as Administrators ---------------------------------------------------------- S.R. Thomas and S.D. Burkett-Coltman of Tenon Recovery were appointed joint administrators of M & C (Agricultural) Limited (Company Number 967328) on May 24. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. M. & C. Limited offers agricultural service activities. MACEY & BOND: Taps Duncan R. Beat to Liquidate Assets ---------------------------------------------------- Macey & Bond Limited is liquidating its assets after creditors decided wind up the company on April 5. Duncan R. Beat, of Tenon Recovery, was appointed Liquidator. The company can be reached at: Macey & Bond Limited Hawk Lane Battlesbridge Wickford Essex SS117RL United Kingdom Tel: 01268 562 622 MERSEYSIDE ASSESSMENT: Names Colin Burke Liquidator -------------------------------------------------- Colin Burke, of Milner Boardman & Partners, was appointed Liquidator of Limited after creditors agreed to wind up the company on April 5. The company can be reached at: Merseyside Assessment & Training Limited 21 Dublin Street Liverpool L3 7DT United Kingdom Tel: 0151 236 6093 PILKINGTON PLC: S&P Downgrades Unsecured Debt Ratings to BB+ ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB+' long-term corporate credit and long-term senior unsecured debt ratings on Nippon Sheet Glass Co. Ltd., following the company's successful acquisition of U.K.-based Pilkington PLC. At the same time, Standard & Poor's removed the ratings from CreditWatch, where they were placed on Nov. 1, 2005. In addition, Standard & Poor's lowered its long-term corporate credit and senior unsecured debt ratings on Pilkington from 'BBB' to 'BB+, the same rating as that on Nippon Sheet Glass, and the short-term rating on Pilkington to 'B' from 'A-2'. The ratings on Pilkington PLC were also removed from CreditWatch. The outlooks on the long-term corporate credit ratings on both companies are stable. As a result of the acquisition, Nippon Sheet Glass' consolidated debt burden will significantly increase. Pilkington's debt leverage was higher than that of Nippon Sheet Glass, and the acquisition has been funded through debt financing. However, Standard & Poor's affirmed the ratings on the company, reflecting the factors: -- the company's business franchise is expected to improve significantly, based on Pilkington's operational bases in the U.S. and Europe; -- part of the acquisition cost has been financed through the issuance of JPY110 billion in moving strike convertible bonds (MSCBs) with variable conversion prices and stock acquisition rights. These bonds are relatively high quality capital as they can be converted into common shares more easily than typical convertible bonds; and -- the group's financial profile is expected to improve gradually, given its prospects for post-merger cash flow. Pilkington's financial burden should increase due to the deal's debt financing, but its franchise should benefit through the integration with Nippon Sheet Glass. Although the debt financing was carried out primarily by Nippon Sheet Glass' newly established subsidiary in the U. K., Standard & Poor's believes it is appropriate to assess the credit quality of the two companies as one entity. Also, taking into consideration possible support from Nippon Sheet Glass, Standard & Poor's equalized the ratings on Pilkington with those on Nippon Sheet Glass. The acquisition of Pilkington will enable the Nippon Sheet Glass group to command a share of the global sheet glass market that is on par with international market leaders. The company should benefit from the operational bases and technological prowess of Pilkington. In particular, the establishment of a global operation should help the company cultivate more demand from Japanese automakers operating overseas. However, synergy effects are expected to be limited in the architectural sheet glass segment, as that market is more regionally oriented. Significant overall synergy effects from the merger are also unlikely over the near term. The MSCBs should be converted into common shares relatively soon, as the conversion price will be revised to 91% of the average market price every two weeks. In addition, Nippon Sheet Glass has maintained relatively stable performance in recent years. Standard & Poor's took into account these positive factors in assessing the group's capitalization. However, even if all MSCBs are treated as capital, Nippon Sheet Glass' consolidated capital structure would still significantly deteriorate because of this deal. Although Pilkington generates relatively strong cash flow, due to the debt increase, its ratio of funds from operations to total debt is projected to remain for some time at about 15%, nearly equal to the pre-acquisition level. The ratio of debt to total capital is expected to deteriorate to about 65% from a pre-acquisition level of 35%. Even so, given the nature of the sheet glass business, the company is likely to maintain relatively stable cash flow, which should gradually improve its financial profile. The MSCBs have a callable feature that enables bondholders to claim redemption prior to maturity if the stock price drops below the floor conversion price of JPY336.8 for 10 days in a row. But given the stable characteristics of the glass sheet business, this sort of redemption is unlikely to occur, and the conversion of the MSCBs should proceed smoothly. Rating actions: To From -- ---- Nippon Sheet Glass Co. Ltd. BB+/Stable/-- BB+/WatchNeg/-- Pilkington PLC BB+/Stable/B BBB/WatchNeg/A- QUALITY CARE: Creditors Resolve to Liquidate Assets --------------------------------------------------- Creditors of Quality Care (London) Limited resolved to voluntarily liquidate the company's assets during an extraordinary general meeting on March 31. Keith Aleric Stevens, of Wilkins Kennedy, was appointed Liquidator. The company can be reached at: Quality Care (London) Limited 1-3 Lancelot Road Wembley Middlesex HA0 2AL United Kingdom Tel: 020 8903 6333 Fax: 020 8903 3335 RICHWOOD FLOORING: Names Joint Administrators from Kroll Ltd ------------------------------------------------------------ David John Whitehouse and Philip Francis Duffy of Kroll Limited were appointed joint administrators of Richwood Flooring Limited (Company Number 04549645) on May 25. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. The company can be reached at: Richwood Flooring Limited Doncaster Road Kirk Sandall Doncaster South Yorkshire DN3 1HT Tel: 01302 888 800 Fax: 01302 888 899 SCENES EASY: Brings In Rogers Evans as Administrators ----------------------------------------------------- Terry Christopher Evans and Simon John Lewis of Rogers Evans were appointed joint administrators of Scenes Easy Limited (Company Number 4899429) on May 24. The administrators can be reached at: Rogers Evans 20 Brunswick Place Southampton Hampshire SO1 2AQ United Kingdom Tel: 023 8033 5888 Fax: 023 8033 4400 E-mail: tevans@rogersevans.co.uk Scenes Easy Limited can be reached at: Bath Road Hare Hatch Reading RG10 9SB United Kingdom Tel: 0118 940 4404 SWJ GROUP: Taps Paul Michael McConnel to Administer Assets ---------------------------------------------------------- Paul Michael McConnell of Monahans was appointed administrator of The SWJ Group Limited (Company Number 02774262) on May 26. The administrator can be contacted at: Monahans 38-42 Newport Street Swindon Wiltshire SN1 3DR United Kingdom Tel: 01793 521231 Fax: 01793 512188 Headquartered in Gloucestershire, United Kingdom, the SWJ Group Limited manufactures joinery and makes cabinets. TECHNOLOGY FARM: Appoints Tony James Thompson as Administrator -------------------------------------------------------------- Tony James Thompson of Piper Thompson was appointed administrator of Technology Farm Limited (Company Number 2549283) on May 26. The administrator can be reached at: Piper Thompson Mulberry House 53 Church Street Weybridge Surrey KT13 8DJ United Kingdom Tel: 01932855515 Technology Farm Limited can be reached at: Unit 4 Sundial CT Tolworth Rise South Surbiton Surrey KT5 9NN United Kingdom Tel: 020 8335 5910 Fax: 020 8335 5911 WHINSTONE 2: Fitch Assigns Final BB Ratings to Class C Notes ------------------------------------------------------------ Fitch Ratings assigned Whinstone 2 Capital Management Limited's GBPequivalent 168.5 million notes final ratings: -- GBP80 million Class C1 notes: BB; and -- EUR129 million Class C2 notes: BB. The notes reference the performance of the Granite Master Issuer PLC reserve fund and the Granite Finance Funding 2 Limited reserve fund, which act as credit enhancement for six mortgage- backed securitization transactions launched by Northern Rock PLC. The final ratings address the ultimate payment of interest and ultimate repayment of principal and are based on the quality of the collateral of the master trust property, the underwriting and servicing capabilities of NR as well as the sound financial and legal structure. Credit enhancement for the Class C1 and C2 notes is provided by a threshold amount at closing of GBP101 million to be retained by NR. At closing, NR buys credit protection via a credit default swap from Whinstone 2 agains a portion of the target balance of the GMI program reserve funds equivalent to 1.65% of the outstanding notes of GMI series 05-1 to 06-1 as at closing of Whinstone 2. The issuer in turn passes on its assumed risk to the capital markets through the issuance of a series of Class C1 and C2 credit-linked notes. The note proceeds will be deposited in the principal collections account held by NR in the issuer's name. Interest will be paid on the notes from interest on the bank account and a premium payable by NR in respect of the CDS. To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its default model. The agency modeled the transaction cash flows using default and loss severity assumptions indicated by the default model under various recession timings, prepayment speeds, interest rates, and originator default/downgrade scenarios. The cash flow test showed that each Class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall and can retire principal by legal final maturity. * Fitch Remarks on Outlook for European Automotive Industry ----------------------------------------------------------- Fitch Ratings remarked that the overall outlook for the automotive industry in Europe has stabilized. Although challenges persist and the industry's recovery remains fragile, pressure on European original equipment manufacturers' credit profiles has diminished. "With the exception of Ford Otosan whose BB+ rating and Negative Outlook are influenced by those of Ford Motor Company, all car manufacturers rated by Fitch in Europe now have a Stable Outlook," Emmanuel Bulle, Director in Fitch's European Industrials team, disclosed. Save for Ford Otosan, Volkswagen AG was the last car manufacturer in Europe with a Negative Outlook before Fitch changed it to Stable on May 22. "We acknowledge Volkswagen's improved credit ratios, and we expect announced restructuring actions will support a further improvement in margins and cash generation ability over the next couple of years," added Mr. Bulle. Restructuring efforts have been crucial in supporting the credit profiles of European manufacturers in the past two to three years. They range from ongoing cost-control actions to deep restructuring program. PSA, Volkswagen, DaimlerChrysler AG, Renault SA and Fiat SpA have all announced cost-saving measures, mostly in the purchasing, distribution and manufacturing areas. Cost-cutting actions include the reduction of thousands of jobs in Europe, the search for continuous synergies between brands and/or divisions, the reorganization of manufacturing processes and the closing or downsizing of plants. Cost-saving measures are also associated with the move towards more efficient production bases. Recently, European car makers have initiated a significant move eastwards to implement their assembly facilities in Central and Eastern Europe or sign industrial agreements with manufacturers in CEE, Russia or Turkey. Volkswagen and PSA have recently opened assembly plants and expanded capacity in Czech Republic and Slovakia while Renault has announced plans to take advantage of the success of its Dacia Logan and increase production in Russia. Fiat has been active in signing agreements and cooperating with partners in Russia, CEE and India. The common rationale behind these strategies is to benefit from the increased R&D capability, improved engineering value and low wages typical of these countries. However, Fitch cautions that challenges are still present and the industry's recovery remains fragile. Several headwinds can easily hinder the stabilizing trend seen in Europe and the positive results from the companies' restructuring efforts. In particular, the negative impact from low growth prospects in European OEMs' domestic markets is exacerbated by the unabated competition from foreign manufacturers. Japanese brands, Toyota in particular, and Korean manufacturers, continue to improve their market shares in Europe at the expense of domestic brands. Although European manufacturers are putting a renewed emphasis on the product to maintain their market share, they remain subject to the aggressive plans from Asian competitors to extend their product offering. European OEMs must also manage the negative impact from unfavorable foreign exchange movements and rising commodity prices. Although suppliers, the substantial price increase of raw materials like aluminum, have absorbed part of the shock steel, copper or oil has had a strong negative impact on margins and profitability. Fitch notes also the costs related to European regulations, in particular emission regulations to comply with increasingly more stringent standards. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel Laureno, Julybien Atadero, Carmel Paderog, and Joy Agravante, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. 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