/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060727.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, July 27, 2006, Vol. 7, No. 148 Headlines A U S T R I A HEMMELMAIR: Linz Court Orders Closure of Business HOFER: Claims Registration Period Ends August 1 KREUZGRUBER: Creditors' Meeting Slated for August 7 NAGELE WERNER: Innsbruck Court Closes Business ULM: Korneuburg Court Orders Closing of Business UNDI: Property Manager Claims Insufficient Assets WBB ELECTRONIC: Property Manager Declares Insufficient Assets B E L G I U M ADVANCED MICRO: Eyes ATI Technologies Merger for US$5.4 Billion ADVANCED MICRO: ATI Deal Cues Moody's to Review Low-B Ratings ADVANCED MICRO: Earns US$89 Million in Quarter Ended July 2 F R A N C E ALCATEL SA: Inks IP Service Deal with China's Jiangsu Telecom ALCATEL SA: To Provide Optical Transport Solution to Sky Link ALCATEL SA: Wins IP Contract with Belgium's Belgacom S.A. EUROTUNNEL GROUP: Paris Court Delays Decision to August 2 G E R M A N Y ABC MULTI-MEDIA: Claims Registration Ends August 11 BAUER AG: Improved Finances Spur S&P to Lift Rating to BB BRENNTAG HOLDING: S&P Places B+ Long-Term Corp. Credit Rating DEMUTH DIETL: Claims Registration Ends August 11 GEFLUEGEL REIFENRATH: Claims Registration Ends August 4 KSO GMBH: Claims Registration Ends July 28 KUENZLER SPORTGERATE: Claims Registration Ends August 5 LEHMANN BAUTRAGER: Claims Registration Ends August 16 MENSA SPEDITIONS: Claims Registration Ends August 16 NIKO INDUSTRIESERVICE: Claims Registration Ends August 5 PLANART DESIGN: Claims Registration Ends August 1 TOLU WOHNBAU: Claims Registration Ends August 21 I R E L A N D PULS CDO: Moody's Assigns Ba3 Rating to Class E1 Notes I T A L Y BANCA NAZIONALE: BNP Paribas Holds 99.14% Equity Stake FIAT SPA: Auto Unit Forms Financing Venture with Credit Agricole FIAT SPA: Partners with Severstal-Auto in Ducato Production K A Z A K H S T A N AGRO BES: Creditors Must File Claims by Aug. 18 ALEKSEEVKAAGROSTROIMONTAJ: Court Opens Bankruptcy Proceedings HLEBOZAVOD: Creditors Must File Claims by Aug. 18 JULDYZ JOLY: Creditors Must File Claims by Aug. 18 KAMKOR: Proof of Claim Deadline Slated for Aug. 18 MARKER: Proof of Claim Deadline Slated for Aug. 18 MEREI-ASAR: Claims Registration Ends Aug. 18 RESURS-EKSPRESS: Claims Registration Ends Aug. 18 RG BRANDS: Revenue Growth Prompts Moody's to Affirm B2 Rating STROISERVIS-SSK: Creditors' Claims Due Aug. 18 VOLKAN TRANS: Creditors' Claims Due Aug. 18 K Y R G Y Z S T A N OPTIMA: Creditors Must File Claims by Sept. 8 OVADA LIMITED: Proof of Claim Deadline Slated for Sept. 8 L U X E M B O U R G STANDARD INTERNATIONAL: Fitch Affirms Individual Rating at C P O R T U G A L CAIXA ECONOMICA: Fitch Keeps Individual C Rating R U S S I A AGRO-KHIM-SERVICE: Court Names E. Golenkov as Insolvency Manager BARDYMSKIY DIARY: Court Names D. Kondalov as Insolvency Manager DOR-STROY-INVEST: Court Names M. Vasilega as Insolvency Manager DUVANSKAYA SEL-KHOZ-KHIMIYA: Court Starts Bankruptcy Supervision EASTERN OIL: Primorye Court Starts Bankruptcy Supervision GIMED: Nizhniy Novgorod Court Begins Bankruptcy Supervision MILKY: Bankruptcy Hearing Slated for Oct. 2 NIZHNEVYAZOVSKIY GRAIN: Court Names A. Minachev to Manage Assets OCTYABRSKIY FACTORY: Bankruptcy Hearing Slated for August 21 PARFENYEVSKIY BUTTER: V. Krasnov to Manage Assets SIBERIAN ELECTRODE: Court Begins Bankruptcy Supervision TOGUCHIN-MILK: Court Names V. Makarov as Insolvency Manager ULYANOVSK-HYDRO-MECHANIZATION: Bankruptcy Supervision Starts VICTORY: Moscow Court Starts Bankruptcy Supervision WOOD-WORKING FACTORY: Court Names M. Putintsev to Manage Assets YUKOS OIL: Creditors Nix Rescue Plan & Vote for Liquidation S L O V A K R E P U B L I C SLOVENSKA SPORITELNA: Fitch Keeps Individual Rating at C/D U K R A I N E ALMAKS MANUFACTORY: Court Names Yevgenij Shtepenko as Liquidator BUDENERGOTRANS: Court Names Yuliya Berezhnova as Liquidator ELEKTRA-PLUS: Sumi Court Begins Bankruptcy Supervision GART: Hmelnitskij Court Starts Bankruptcy Supervision KAMYANETS: Hmelnitskij Court Begins Bankruptcy Supervision KRONA: Lviv Court Commences Bankruptcy Supervision KYIV SECURITIES: Court Names O. Sherban as Liquidator METALLURGY: Court Names Oleksandr Chechelnitskij as Liquidator MIG-2000: Court Names Oleksandr Shikulenko as Liquidator MITOS: Harkiv Court Starts Bankruptcy Supervision ODESSA' TECHNICAL: Court Names Volodimir Ajmedov as Liquidator SHEVCHENKIVSKIJ: Court Starts Bankruptcy Supervision SOLVEY UKRAINE: Court Names Sergij Boltik as Insolvency Manager UKRSOTSBANK: S&P Keeps B- Credit Rating on Watch Positive UKRVTORMET: Harkiv Court Starts Bankruptcy Supervision U N I T E D K I N G D O M ACCESS STAFF: Claims Registration Ends Nov. 30 BONTHRONE LIMITED: Brings In P&A Partnership as Administrators EIRLES FOUR: Loss From Deal Spurs Fitch to Cut Ratings to B+ EUROTUNNEL GROUP: Paris Court Delays Decision to August 2 EXPRESS MARINE: Joint Liquidators Take Over Operations FCE BANK: S&P Removes Low -B Ratings from Watch Negative FORBER & WRATE: Creditors Pass Winding Up Resolution G.T. ALMAX: Appoints Administrators from Moore Stephens GENERAL MOTORS: Incurs US$3.2-Bln Net Loss in Second Quarter GWENT CHEMICAL: Brings In Joint Liquidators from Begbies Traynor I.S.P. INT'L: Creditors Opt to Wind Up Company KITCHENKRAFT LIMITED: Taps Begbies Traynor as Administrators LANGREEN LTD: Creditors Resolve to Voluntary Liquidation LEEK DEVELOPMENTS: Hires Kroll as Joint Administrators MAXIMUM SYSTEMS: Appoints Budsworth & Co. as Administrator MOTOR ZONE: Taps Louise Donna Baxter to Liquidate Assets NTL CABLE: Fitch Rates New US$550 Million Senior Notes at B PIPE HOLDINGS: Moody's Confirms Low-B Ratings on Debt Issuance PLASTIC & RUBBER: Hires Joint Liquidators from PKF LLP RAMENCO LIMITED: Creditors' Meeting Slated for August 1 SEA CONTAINERS: High Court Ruling on ORR Dispute Due Today SEA CONTAINERS: Christopher Garnett Steps Down as GNER CEO SGS SUPPLIES: Mounting Debts Prompt Voluntary Liquidation SHL BUILDING: Peter Anthony Jackson Leads Liquidation Procedure SIMBOL LIMITED: Creditors' Meeting Slated for August 9 SOLUTION FOOTWEAR: Creditors' Meeting Slated for August 9 STANDARD BANK: Fitch Keeps Individual C Rating TECHNIC WOOD: Hires Moore Stephens as Joint Administrators TSR PERFORMANCE: Names William Antony Batty as Administrator WELDRICK DUGGAN: Appoints Joint Liquidators to Wind Up Business ZAKA NAKA: Winds Up Business & Appoints Joint Liquidators ********* ============= A U S T R I A ============= HEMMELMAIR: Linz Court Orders Closure of Business ------------------------------------------------- The Land Court of Linz entered an order on June 9 closing the business of LLC Hemmelmair's (FN 141221d) branches in Erdbau, Nahverkehr, Stahllogistik and Speditionslogistik. Court- appointed property manager Rene Lindner determined that the continuing operation of the business would reduce the value of the estate. The property manager and his representative can be reached at: Mag. Rene Lindner c/o Mag. Martin Hengstschlager Fadingerstrasse 9 4020 Linz, Austria Tel: 0732/784080-34 Fax: 0732/784080-5 E-mail: Konkurs@hengstschlaeger-lindner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Aug. 1 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Linz Hall 522 5th Floor Linz, Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on June 7 (Bankr. Case No. 38 S 27/06h). Martin Hengstschlager represents Mag. Lindner in the bankruptcy proceedings. HOFER: Claims Registration Period Ends August 1 ----------------------------------------------- Creditors owed money by LLC Hofer (FN 47538i) have until Aug. 1 to file written proofs of claims to court-appointed property manager Frank Riel at: Dr. Frank Riel c/o Dr. Frank Eberhart Riel Gartenaugasse 1 3500 Krems an der Donau, Austria Tel: 02732/86565 Fax: 02732/86566-11 E-mail: anwalt@riel-grohmann.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Aug. 16 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Krems an der Donau Hall A 2nd Floor Krems an der Donau, Austria Headquartered in Zwettl, Austria the Debtor declared bankruptcy on June 12 (Bankr. Case No. 9 S 32/06p). Frank Eberhart Riel represents Dr. Riel in the bankruptcy proceedings. KREUZGRUBER: Creditors' Meeting Slated for August 7 --------------------------------------------------- Creditors owed money by LLC Kreuzgruber (FN 184844f) are encouraged to attend the creditors' meeting at 10:00 a.m. on Aug. 7 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 12 (Bankr. Case 3 S 87/06y). Erwin Senoner serves as the court-appointed property manager of the bankrupt estate. Georg Freimueller represents Dr. Senoner in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Erwin Senoner c/o Dr. Georg Freimueller Alser Road 21 1080 Vienna, Austria Tel: 4060551 Fax: 406 96 01 E-mail: kanzlei@jus.at NAGELE WERNER: Innsbruck Court Closes Business ---------------------------------------------- The Land Court of Innsbruck entered an order on June 9 closing the business of LLC Nagele Werner (FN 55859x). Court-appointed property manager Wilfried Leys determined that the continuing operation of the business would reduce the value of the estate. The property manager and his representative can be reached at: Dr. Wilfried Leys c/o Dr. Walter Lenfeld Malserstrasse 49a 6500 Landeck, Tirol, Austria Tel: 05442/63029 Fax: 05442/6302914 E-mail: RA-LL@aon.at Headquartered in Tirol, Austria, the Debtor declared bankruptcy on May 19 (Bankr. Case No. 19 S 51/06g). Walter Lenfeld represents Dr. Leys in the bankruptcy proceedings. ULM: Korneuburg Court Orders Closing of Business ------------------------------------------------ The Land Court of Korneuburg entered an order on June 9 closing the business of LLC Ulm (FN 67081z). Court-appointed property manager Matthias Schmidt determined that the continuing operation of the business would reduce the value of the estate. The property manager and his representative can be reached at: Dr. Matthias Schmidt c/o Dr. Rainer Herzig Dr. Karl Lueger-Ring 12 1010 Vienna, Austria Tel: 01/533 16 95 Fax: 01/535 56 86 E-mail: schmidt@preslmayr.at Headquartered in Bad Deutsch Altenburg, Austria, the Debtor declared bankruptcy on May 31 (Bankr. Case No. 36 S 62/06v). Rainer Herzig represents Dr. Schmidt in the bankruptcy proceedings. UNDI: Property Manager Claims Insufficient Assets ------------------------------------------------- Dr. Wolfgang Kleibel, the court-appointed property manager for Construction LLC Undi (FN 54181d), declared on June 9 that the Debtor does not have enough assets to pay off creditors. The Land Court of Salzburg is yet to rule on the property manager's claim. Headquartered in Koppl, Austria, the Debtor declared bankruptcy on Sept. 1, 2005 (Bankr. Case No. 44 S 50/05k). The property manager can be reached at: Dr. Wolfgang Kleibel Erzabt-Klotz-Str. 4 5020 Salzburg, Austria Tel: 0662-842281-0 Fax: 0662-842281-29 E-mail: wolfgang.kleibel@k-b-k.at WBB ELECTRONIC: Property Manager Declares Insufficient Assets ------------------------------------------------------------- Dr. Wolfgang Pils, the court-appointed property manager for LLC WBB electronic (FN 191120i), declared on June 9 that the Debtor does not have enough assets to pay off creditors. The Land Court of Linz is yet to rule on the property manager's claim. Headquartered in Linz, Austria, the Debtor declared bankruptcy on April 3 (Bankr. Case No. 12 S 31/06f). The property manager can be reached at: Dr. Wolfgang Pils Graben 19 4020 Linz, Austria Tel: 77 33 68 Fax: 77 33 68 74 E-mail: ra.dr.pils@aon.at ============= B E L G I U M ============= ADVANCED MICRO: Eyes ATI Technologies Merger for US$5.4 Billion --------------------------------------------------------------- Advanced Micro Devices and ATI Technologies Inc. plans to join forces in a transaction valued at approximately US$5.4 billion. The combination will create a processing powerhouse by bringing AMD's technology leadership in microprocessors together with ATI's strengths in graphics, chipsets and consumer electronics. The result: a new and more formidable company, determined to drive growth, innovation and choice for its customers, particularly in the commercial and mobile computing segments and in the rapidly-growing consumer electronics market. Combining technologies, people, and complementary strengths, AMD plans to deliver in 2007 customer-centric platforms for the benefit of customers who want to collaborate in the development of differentiated solutions. AMD's acquisition of ATI will position the new company to deliver innovations that fulfill the increasing demand for more integrated solutions in key market segments while also continuing to develop "best-of-breed" discrete products that empower customers to choose the combination of technologies that best serves their needs. In 2008 and beyond, AMD aims to move beyond current technological configurations to transform processing technologies, with silicon-specific platforms that integrate microprocessors and graphics processors to address the growing need for general-purpose, media-centric, data-centric and graphic-centric performance. Thus, the combined company intends to empower its customers to create their own unique products and solutions within an open-innovation ecosystem free from artificial barriers to customer success. "ATI shares our passion and complements our strengths: technology leadership and customer centric innovation," AMD Chairman and CEO Hector Ruiz said. "Bringing these two great companies together will allow us to transcend what we have accomplished as individual businesses and reinvent our industry as the technology leader and partner of choice. We believe AMD and ATI will drive growth and innovation for the entire industry, enabling our partners to create differentiated solutions and empowering our customers to choose what is best for them." "This combination means accelerated growth for ATI, and broader horizons for our employees," Dave Orton, President and CEO of ATI, said. "All of our product lines will benefit. Joining with AMD will enable us to innovate aggressively on the PC platform, and continue to invest significantly in our consumer business to stay in front of our markets." "Windows Vista will deliver incredible advances in the user experience as a result of advancements in graphics integration and performance," Jim Allchin, Co-President of Microsoft's Platforms & Services Division, said. "We're excited by the potential of what AMD and ATI can deliver together to enhance the Windows Vista experience for our customers even further." Under the terms of the transaction, AMD will acquire all of the outstanding common shares of ATI for a combination of US$4.2 billion in cash and 57 million shares of AMD common stock, based on the number of shares of ATI common stock outstanding on July 21. All outstanding options and RSUs of ATI will be assumed. Based upon the closing price of AMD common stock on July 21, of US$18.26 a share, the consideration for each outstanding share of ATI common stock would be US$20.47, comprised of US$16.40 of cash and 0.2229 shares of AMD common stock. AMD anticipates it will finance the cash portion of the transaction with a combination of cash and new debt. AMD has obtained a US$2.5 billion term loan commitment from Morgan Stanley Senior Funding, Inc. which, together with combined existing cash, cash equivalents, and short-term investments balances of approximately US$3 billion, provides full funding for the transaction. ATI has received an opinion from its financial advisors that the transaction from a financial point of view is fair to its shareholders. The transaction was unanimously approved by the board of directors of each company. The transaction is subject to ATI shareholder approval, Canadian court supervision of a Plan of Arrangement, and other regulatory approvals including merger notification filings in the United States, Canada and other jurisdictions, as well as customary closing conditions. In the event that the transaction does not close, ATI has agreed to pay AMD a termination fee of US$162 million under circumstances specified in the acquisition agreement. The transaction will be completed in the fourth quarter of 2006. Financial Opportunity AMD expects that the transaction will be slightly accretive to earnings in 2007, and meaningfully accretive in 2008, before the inclusion of ATI acquisition-related charges, based upon AMD's plans to deliver more integrated and advanced platform solutions and thereby improve its position in commercial clients, mobile computing, gaming, media and emerging markets. AMD anticipates that it will reduce operating expenses by US$75 million for the combined company by the end of 2007. The combined company would have achieved US$7.3 billion in total consolidated sales during the last four quarters with a workforce of approximately 15,000 employees. The company will maintain sales, design and manufacturing centers worldwide and major business centers in Silicon Valley, Austin, Texas and Markham, Ontario -- all valued centers of innovation for the combined company. AMD's current executive team will be complemented by the addition of ATI President and CEO Dave Orton. Orton will serve as an executive vice president of the ATI business division, reporting to the AMD Office of the CEO, comprised of Chairman and CEO Hector Ruiz and President and Chief Operating Officer Dirk Meyer. In addition, under the terms of the acquisition agreement, two ATI directors will join AMD's board of directors upon closing of the transaction. The collective roster of AMD and ATI's strong customer relationships represents a "who's who" of the computing and consumer electronics industries. Drawing upon a shared culture of customer-centric innovation and engineering excellence, the combined company will be well positioned to meet customer demand for more innovative solutions, system-level engineering and faster time-to-market. About ATI Headquartered in Markham, Ontario, ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT) -- http://www.ati.com/-- designs and manufactures innovative 3D graphics, PC platform technologies and digital media silicon solutions. An industry pioneer since 1985, ATI provides graphics processor unit and delivers performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld device markets. About AMD Based in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE:AMD) -- http://www.amd.com/-- provides microprocessor solutions for computing, communications and consumer electronics markets. ADVANCED MICRO: ATI Deal Cues Moody's to Review Low-B Ratings ------------------------------------------------------------- Moody's Investors Service placed the ratings of Advanced Micro Devices Inc. under review for possible downgrade following an agreement to acquire ATI Technologies for approximately US$5.4 billion. Financing is expected to consist of approximately US$4.2 billion of cash and US$1.2 billion of AMD's common stock. ATI, with approximately US$2.2 billion of latest twelve month revenues, is a leading vendor or graphics processors that enhance the display of PC's, portable devices, and other consumer electronics devices and is based in Toronto Canada. The acquisition, which has been approved by both boards of directors, is expected to close by the fourth quarter of 2006 and is subject to customary approvals and consents. Ratings under review for downgrade include: * Corporate Family Rating -- Ba3 * Senior unsecured note US$390 million due 2012 -- B1 * Senior secured shelf registration -- (P) Ba3 * Senior unsecured shelf registration -- (P) B1 * Subordinated shelf registration -- (P) B2 * Preferred stock shelf registration -- (P) B3 Moody's review of AMD will assess: (1) the challenges in effectively combining the operations and product roadmaps and effectively balancing management's focus on its core microprocessor business; (2) the strategic benefits that the proposed acquisition may have on AMD's microprocessor technology roadmap; (3) profit and cash flow implications that the addition of ATI's lower margin revenues will have on AMD's results, including the expectations that ATI will likely lose existing revenues associated with its current business activities with Intel; (4) the possible challenges that ATI may have in retaining access to any intellectual property licenses following a change of control, which could impact existing or future product development and sales and; (5) management's permanent financing plans as well as its commitment to maintaining a very liquid and lowly leveraged balance sheet. Moody's recently upgraded AMD in January 2006 to Ba3, reflects: (1) the company's continued solid execution in broadening the end market capabilities, competitiveness, revenue and profitability of its microprocessor business that are the core of the company; (2) the improved ability for AMD to translate these strengths into sustainable free cash flow from operations over time; (3) the significantly improved capital structure of AMD following a combination of the recent Spansion spin-off; a US$500 million equity offering and its related US$210 million "clawback" repayment of senior unsecured debt and; the redemption of a US$500 million convertible note in February 2006 and; (4) the solid and improved financial flexibility as a result of its strong operational performance, equity capital raising, and debt reduction. As of June 2006, AMD's cash balances totaled US$2.5 billion and debt was US$692 million. At the same time, a meaningful level of business risk persists, deriving from intense microprocessor product and price competition from its much larger competitor, Intel Corporation; significant capital expenditure requirements and execution risk to consistently transition to new technology nodes and manufacturing capabilities for microprocessors, including its current production ramp at Fab 36 in Dresden, Germany as well as the pending conversion of its Fab 30 to a 300 millimeter production facility. Advanced Micro Devices, Inc., headquartered in Sunnyvale, California, designs and manufactures microprocessors and other semiconductor products. ADVANCED MICRO: Earns US$89 Million in Quarter Ended July 2 ----------------------------------------------------------- Advanced Micro Devices Inc. reported sales of US$1.22 billion, operating income of US$102 million, and net income of US$89 million, for the quarter ended July 2, 2006. These results include US$18 million of employee stock-based compensation expense and a net gain of US$10 million associated with Spansion LLC's repurchase of its 12.75% senior subordinated notes. In the second quarter of 2005, excluding the Memory Products segment, AMD reported sales of US$797 million and operating income of US$83 million. In the first quarter of 2006, AMD reported sales of US$1.33 billion and operating income of US$259 million. "While we achieved 53% year-over-year sales growth and recorded our twelfth consecutive quarter of greater than 20% year-over- year microprocessor sales growth, we are dissatisfied by not reaching our second quarter sales target," said Robert J. Rivet, AMD's chief financial officer. "We are particularly pleased with the continued adoption of AMD solutions in the commercial segment. In particular, AMD Opteron processor sales grew 26% sequentially and we believe we gained server processor market share in the quarter. Sales to our largest global customers grew quarter-over-quarter as we continued to successfully execute our strategy. Sales through the distribution channel were down, primarily because we chose not to participate in certain deeply-discounted opportunities." "Second quarter manufacturing execution was outstanding, with Fab 36 ramping 300mm capacity aggressively at mature yields. In addition, Chartered Semiconductor is now in production of AMD products." Second quarter sales were down from the prior quarter primarily due to the challenging pricing environment for high-volume desktop processors which negatively impacted average selling prices. Total microprocessor unit shipments were down four% sequentially. Record AMD Opteron processor sales were driven by growing demand for single- and multi-socket server and workstation solutions. AMD Opteron processor unit shipments experienced double digit percentage growth quarter-over-quarter, and the sequential ASP percentage increase was in the single digits. Second quarter gross margin was 56.8%, compared to 58.5% in the first quarter of 2006. The gross margin decrease was largely due to lower desktop processor ASPs. Operating income was US$102million in the second quarter, up from US$83 million in the second quarter of 2005 and down from US$259 million in the first quarter of 2006. The decline in operating income from the prior quarter was due largely to lower sales and increased operating expenses related to an extra week of operations in the quarter, and marketing expenses in support of the company's long-term goals to acquire new customers, expand business with existing customers, and increase commercial sales. About AMD Based in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE: AMD) -- http://www.amd.com/-- is a global provider of microprocessor solutions for computing, communications and consumer electronics markets. * * * Moody's Investors Service placed the ratings of Advanced Micro Devices Inc. under review for possible downgrade following an agreement to acquire ATI Technologies for approximately US$5.4 billion. Financing is expected to consist of approximately US$4.2 billion of cash and US$1.2 billion of AMD's common stock. ATI, with approximately US$2.2 billion of latest twelve month revenues, is a leading vendor or graphics processors that enhance the display of PC's, portable devices, and other consumer electronics devices and is based in Toronto Canada. The acquisition, which has been approved by both boards of directors, is expected to close by the fourth quarter of 2006 and is subject to customary approvals and consents. Ratings under review for downgrade include: * Corporate Family Rating -- Ba3 * Senior unsecured note US$390 million due 2012 -- B1 * Senior secured shelf registration -- (P) Ba3 * Senior unsecured shelf registration -- (P) B1 * Subordinated shelf registration -- (P) B2 * Preferred stock shelf registration -- (P) B3 =========== F R A N C E =========== ALCATEL SA: Inks IP Service Deal with China's Jiangsu Telecom ------------------------------------------------------------- Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) revealed that Jiangsu Telecom, a subsidiary of China Telecom, has selected Alcatel's IP service routing solution to expand and optimize its metropolitan area network and broaden its IP-based data service portfolio. The Alcatel solution will enable Jiangsu Telecom to offer faster, highly reliable, and premium data services for consumers and enterprises across Jiangsu Province. The contract was won through Alcatel Shanghai Bell, Alcatel's flagship Chinese company. Jiangsu Telecom will deploy the Alcatel 7750 Service Router (SR) in the province's four major cities, Nanjing, Wuxi, Yangzhou and Zhenjiang, where they anticipate fast-paced growth in demand from the consumer and business markets for advanced user-centric broadband services. Upon completion of the project by the end of this year, Jiangsu Telecom will be able to deliver multiple services from a single IP network infrastructure, and with the Quality of Service (QoS) required to meet strict Service Level Agreements. Services include high speed Internet access for residential users as well as Layer 2 and 3 virtual private network (VPN) services for enterprises. "This contract establishes Alcatel as the leading IP supplier to Jiangsu Telecom," Gerard Dega, President of Alcatel Shanghai Bell, said. "The Alcatel IP solution has the capability to ensure non-stop service delivery which is critical to meet today's stringent market expectations. It also accelerates time to market through rapid service provisioning, ensuring service providers can move quickly to capture new market opportunities." All major Chinese operators including China Telecom, China Unicom, China Netcom and China Mobile have selected the Alcatel 7750 Service Router to optimize the delivery of high-performance carrier data, voice and video services. China Telecom alone has selected the solution in 17 major provinces, including: -- Xinjiang, -- Tibet, -- Qinghai, -- Gansu, -- Ningxia, -- Shaanxi, -- Guangdong, -- Shanghai, -- Jiangsu, -- Anhui, -- Hubei, -- Fujian, -- Jiangxi, -- Henan, -- Sichuan, -- Liaoning and -- Guizhou. According to Synergy Research Group, Alcatel is #2 in the Services Edge Router category in Q1 2006, with 18% market share, following four consecutive quarters of market share gain. About China Telecom Headquartered in Beijing, China, China Telecom Group -- http://en.chinatelecom.com.cn/-- is a key fixed telecom operator in China. The group has 21 provincial (municipal and autonomous regional) corporations in southern China, holding 70% of the national trunk-line transmission network assets owned by the former China Telecom. Subordinated to the central government, the new China Telecom has a RMB158 billion registered capital. Currently, China Telecom operates domestic and international fixed-line networks, providing voice, data, video, multimedia and information services. It is also engaged in international telecom accounts settlement and overseas market exploration. About Alcatel Headquartered in Paris, France, Alcatel S.A. -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user- centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * As reported in TCR-Europe on March 28, Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. ALCATEL SA: To Provide Optical Transport Solution to Sky Link ------------------------------------------------------------- Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) and Delta Telecom revealed the signature of a contract, to modernize the operator's backbone network in the city of St. Petersburg and the region. "We have partnered with Alcatel since 2001," Constantine Kolomensky, Director of Network Development for Sky Link St. Petersburg, said. "To keep leading position in the telecommunication market of the North-West region of Russia, we must continuously evolve our network. Benefiting from Alcatel's expertise in optical networking, we will be well positioned to give our customers access to the most advanced highly reliable services, while reducing our total cost of network ownership." "Sky Link turned to Alcatel because of its ability to help transform their network in a timely manner and address subscriber demand for new, attractive services," stated Romano Valussi, president of Alcatel's optical networking solutions. "Setting the stage for a future migration to IP radio access networks, Alcatel's optical networking solutions support the operator's requirements for increased capacity driven by bandwidth-consuming mobile services". Sky Link represents a new breed of mobile operators that are turning to Alcatel to upgrade their infrastructure for the mobile data revolution. The Alcatel solution will be based on its data-aware Optical Multi-Service Node (OMSN) systems offering Delta Telecom a single platform optimized to aggregate multiple traffic types and backhaul the mobile traffic from base stations to the core. Furthermore, mobile switches will be interconnected though the Alcatel 1692 Metrospan Edge coarse wavelength division multiplexing (CWDM) system providing Gigabit Ethernet connectivity to cope with service growth. Alcatel will also upgrade the existing Alcatel 1350 management suite - which enables to manage packet, TDM and wavelength connectivity services. Providing advanced multiplexing, aggregation and optical protection management, the Alcatel solution will enable Sky Link St. Petersburg to efficiently meet the growing needs for mobile voice and high-speed data services in the city of St. Petersburg and its area. The project is scheduled for completion in the third quarter of 2006. About Sky Link Sky Link -- http://www.skylink.ru/-- is the first Russian network based on the advanced CDMA2000 1X (IMT-MC-450) digital standard. Its licensed market has been extending over 65 regions with 104 million people or 72% of the population of the Russian Federation. Currently Sky Link is the only network in Russia to provide its subscribers with 3G services, such as: reliable, robust voice service with the highest degree of protection from unauthorized access; mobile Internet access; high-speed data and video services (Sky Turbo). Since 2003 the holding "Sky Link" is a member of International 450 Association. About Delta Telecom Delta Telecom JSC -- http://www.spb.skylink.ru/-- is a leading cellular operator in Russia, operating under Sky Link brand and providing CDMA-450 services in St. Petersburg, Pskov, Novgorod areas and in the Republic of Karelia) was founded on 1991 and became the first cellular operator in the Russian market. Delta Telecom is a largest CDMA-450 carrier in Russia and the first to introduce (on 2002) advanced CDMA2000 1X technology in its new SKYLINK network to offer its subscribers 3G mobile voice and data services, such as: reliable, robust voice service with the highest degree of protection from unauthorized access; mobile Internet access; high-speed data (up to 2,4 Mbit p.s.) and video services Sky Turbo. About Alcatel Headquartered in Paris, France, Alcatel S.A. -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user- centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * As reported in TCR-Europe on March 28, Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. ALCATEL SA: Wins IP Contract with Belgium's Belgacom S.A. --------------------------------------------------------- Alcatel (Paris: CGEP.PA and NYSE: ALA) disclosed that Belgacom, the incumbent operator in Belgium, has selected Alcatel's IP solution for traffic aggregation to support the mass roll-out of triple play services throughout the country. Under the terms of this contract, Alcatel will provide the equipment and network & service management for a nationwide network that will deliver high quality voice, data and video services to the Belgian residential customers. In 2005, Belgacom selected Alcatel's IP portfolio as the foundation for its nationwide BiLAN� Ethernet VPN service, offering advanced Virtual Private LAN Service (VPLS) and IP-VPN services to businesses. Now, with plans to make triple play available to its entire residential subscriber base, Belgacom has again selected Alcatel's IP portfolio to deliver bundled triple play services including high-speed Internet, digital TV services and voice over IP. "Maintaining leadership requires an evolution of the network to prepare it for advanced applications such as triple play that have far much more stringent requirements," Philippe Ribonnet, Head of Network and IT Division at Belgacom, said. "An in-depth evaluation of Alcatel's IP technology has demonstrated its strengths and robustness and the company's commitment to a successful service roll-out from start to finish. Extending the network with this proven Alcatel solution will give us the scalability, reliability and end-to-end service levels that will satisfy our requirements for triple play." "Offering differentiated services is key to staying ahead of the competition," Basil Alwan, President of Alcatel's IP activities, said. "Alcatel's extensive experience in deploying triple play solutions combined with proven, high performance and feature- rich technology will help Belgacom introduce those services faster to preserve its competitive edge. Service providers worldwide as an integral component of their next-generation service edge have selected our IP portfolio. This selection by Belgacom illustrates a key benefit of Alcatel's IP portfolio, which is the ability to bring even greater operational savings by converging business and consumer services on a single IP/MPLS network." The Alcatel IP portfolio has key features -- including high- availability, quality of service, and scalability -- that make it the only solution available today that can reliably deliver triple play consumer and business services concurrently on the same platform. For the triple play roll out, Belgacom selected the 7750 Service Router (SR), 7450 Ethernet Service Switch (ESS) and 5620 Service Aware Manager (SAM) Worldwide, Alcatel's IP portfolio has been selected by more than 100 service providers, including massive, multi-year IP network and service transformation projects at AT&T, BT, TeliaSonera and China Telecom. In the fourth quarter of 2005, Alcatel held second place worldwide for IP edge aggregation with a market share of 25.8 percent, according to Synergy Research Group. Alcatel is involved in more than 35 triple play projects and another 40 network transformation projects worldwide. IPTV services are expected to reach over 70 million subscribers by 2010. About Belgacom Headquartered in Brussels, Belgium, Belgacom S.A. -- http://www.belgacom.be/-- offers traditional fixed-line and mobile phone services, as well as Internet access, in Belgium. Belgacom also owns a 75% stake in Proximus, a provider of wireless telecom services to 4 million subscribers. The Belgian government now holds 50% plus one share of Belgacom. About Alcatel Headquartered in Paris, France, Alcatel S.A. -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user- centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * As reported in TCR-Europe on March 28, Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. EUROTUNNEL GROUP: Paris Court Delays Decision to August 2 --------------------------------------------------------- The Commercial Court of Paris delays its decision whether to approve Eurotunnel Group's bankruptcy petition to Aug. 2. The company was not surprised by the decision as it has made 17 applications covering six European countries. The postponement will give more time to the creditors to reach an agreement on restructuring Eurotunnel's GBP6.2 billion outstanding debt. "The court said it postponed its decision in the face of the complexity of the subject," Dow Jones Newswires quoted Jean Veil, a lawyer for Eurotunnel as saying. "It's an opportunity for negotiations, which always take place at the last minute." "We have good hope that a solution can be found," Mr. Veil told Bloomberg. ARCO Chairman Jean-Pierre Mattei told The Times that a deal was "very close" and could be reached before Aug. 2. "Everyone wants a lasting solution," Mr. Mattei stated. ARCO represents 68% of Eurotunnel's outstanding GBP1.9 billion bonds and notes. Eurotunnel points out that the restructuring of its debt has been a problem between creditors ever since it proposed a management-backed rescue plan with Goldman Sachs Group Inc., Macquarie Bank Ltd. and Barclays PLC. The current negotiations led by the company have now given rise to an implicit consensus that: -- the sustainable level of debt is approximately GBP2.9 billion; and -- the current shareholders must benefit from accretion measures and retain a significant proportion of the equity. The company believes there is no reason why the creditors should not rapidly come to a consensual restructuring agreement within this framework. As Eurotunnel will make a payment of GBP78 million in interest, arguments relating to default of payment should not be used to justify a rupture in negotiations. It should be noted that the total amount of payments on the debt to be made before Dec. 31, 2006, is GBP74 million. In the absence of an agreement, the safeguard procedure would allow the company, aided by judicially appointed administrators, to re-engage in negotiations at the point at which they ceased. The creditors would have nothing to gain from such an outcome. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. * * * As reported by TCR-Europe on July 14, Eurotunnel Group was forced to place itself under creditor protection at the Commercial Court of Paris pursuant to the French law "procedure de sauvegarde" on July 13, after restructuring talks with bondholders failed. On June 27, Eurotunnel turned down the restructuring plan prepared by a group of secured bondholders led by Deutsche Bank AG asserting that it requires too much debt and gives too much to bondholders. The bondholders' restructuring plan, which valued the company at EUR7.99 billion, aims to reduce 60% of total debt to EUR3.7 billion and issue a EUR2.175 billion convertible hybrid note with a 4% coupon. The plan rivaled the preliminary restructuring agreement backed by Eurotunnel, Goldman Sachs Group Inc., Macquarie Bank Ltd. and Barclays PLC. The plan dated May 23, valued the company at around EUR7.03 billion and included a EUR1.5 billion hybrid issue with a 6% to 9% coupon and would reduce debt by 54%. Under the agreement, bondholders will get a GBP75 million return for their GBP1.9 billion bond holdings. On July 12, Eurotunnel presented an ultimate proposal to reach a compromise between the May 23 preliminary restructuring agreement and the demands made by its subordinated creditors represented by The Association of Eurotunnel's Secured Bondholders (ARCO). The company claimed that the majority of these demands were satisfied by the substantial efforts jointly made by the company and the Ad Hoc Committee. The subordinated creditors, led by Deutsche Bank, rejected this final attempt to reach a consensual deal. The Joint Board of Eurotunnel unanimously decided to cancel the General Meetings of Shareholders of Eurotunnel PLC and Eurotunnel SA, planned for July 27. Absent a final agreement, the Group may default in January 2007 under a 1998 debt agreement. Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faces uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. ============= G E R M A N Y ============= ABC MULTI-MEDIA: Claims Registration Ends August 11 --------------------------------------------------- Creditors of ABC Multi-Media Betriebsgesellschaft AG have until Aug. 11 to register their claims with court-appointed provisional administrator Dirk Pfeil. Creditors and other interested parties are encouraged to attend the meeting at 10:05 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 Wetzlar Meeting Room 201 Building B II. Stick Wetherstr. 1 35578 Wetzlar, Germany The Court will also verify the claims set out in the administrator's report at 8:00 a.m. on Sept. 26 at the same venue. The District Court of Wetzlar opened bankruptcy proceedings against ABC Multi-Media Betriebsgesellschaft AG on June 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ABC Multi-Media Betriebsgesellschaft AG Attn: Joachim Hermann Tanner, Manager Philosophenweg 29 35578 Wetzlar, Germany The administrator can be contacted at: Dirk Pfeil Eschersheimer Highway 60-62 60322 Frankfurt/Main, Germany Tel: 069/1530960 Fax: 069/15309666 BAUER AG: Improved Finances Spur S&P to Lift Rating to BB --------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Germany-based engineering company Bauer AG to 'BB' from 'BB-' following the improved business performance, and the successful completion of an IPO resulting in debt reduction. At the same time, the long-term rating was removed from CreditWatch where it had been placed with positive implications on May 11. The outlook is positive. The rating on Bauer was originally placed on CreditWatch with positive implications based on an expected improvement of capital structure following the company's announcement of its planned IPO, coupled with improved business performance in 2005. "Bauer has demonstrated consistent revenue and earnings growth over the past few years due to a favorable demand for drilling equipment for underground construction and good geographic reach, and an ongoing conservative operating strategy, which is reflected in improved financial measures," said Standard & Poor's credit analyst Izabela Listowska. The positive outlook reflects the good prospects for further improvement in underlying credit quality in the medium term, based on the outlook for Bauer's business segments. There is a slight upgrade potential, which would be considered if fully adjusted debt to EBITDA improve to, and remain at, less than 2.5x, and the company will generate meaningful free operating cash flows on a sustainable basis. "Sustained deterioration in operating performance or cash generation currently less pronounced could result in an outlook revision to stable," added Ms. Listowska. BRENNTAG HOLDING: S&P Places B+ Long-Term Corp. Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B+' long-term corporate credit rating on Germany-based industrial and specialty chemicals distributor Brenntag Holding GmbH & Co. KG on CreditWatch with negative implications. This follows the announcement that the company is to be acquired by funds advised by private equity firm BC Partners. The 'B+' senior secured debt rating on Brenntag's EUR1.54 billion bank loan, and 'B-' subordinated debt rating on its EUR305 million second-lien loan, were also placed on CreditWatch with negative implications. "The CreditWatch placement reflects our concerns that Brenntag's financial risk profile might no longer be adequate for the 'B+' rating, following its acquisition," said Standard & Poor's credit analyst Eve Greb. The company is to be acquired from Bain Capital, through a secondary buyout, for an undisclosed amount. The transaction is subject to final approval by the relevant competition authorities. "S&P will discuss the effect of the change in ownership on Brenntag's business strategy and financial risk profile with the company's management in the near future, with a view to resolving the CreditWatch status," said Ms. Greb. DEMUTH DIETL: Claims Registration Ends August 11 ------------------------------------------------ Creditors of Demuth, Dietl u. Co. Kommunikationselektronik GmbH have until Aug. 11 to register their claims with court-appointed provisional administrator Gerhard Hauk. Creditors and other interested parties are encouraged to attend the meeting at 8:00 a.m. on Sept. 20 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 Wetzlar Meeting Room 201 Building B II. Stick Wetherstr. 1 35578 Wetzlar, 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 Wetzlar opened bankruptcy proceedings against Demuth, Dietl u. Co. Kommunikationselektronik GmbH on July 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Demuth, Dietl u. Co. Kommunikationselektronik GmbH Industriestr. 14-20 35580 Wetzlar, Germany Attn: Sebastian Dietl, Manager Industriestrasse 18 35580 Wetzlar, Germany The administrator can be contacted at: Gerhard Hauk Voelpel Diehl Schneider Gliese Hauk Rechtsanwalte und Notar Marktlaubenstrasse 9 35390 Giessen, Germany Tel: 0641/9324360 Fax: 0641/9324350 E-mail: insolvenz@rae-voelpel.de Web: http://www.rae-voelpel.de/ GEFLUEGEL REIFENRATH: Claims Registration Ends August 4 ------------------------------------------------------- Creditors of Gefluegel Reifenrath GmbH have until Aug. 4 to register their claims with court-appointed provisional administrator Klaus Ortmueller. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Betzdorf Hall 109 1st Floor Friedrichstrasse 17 57518 Betzdorf, 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 Betzdorf opened bankruptcy proceedings against Gefluegel Reifenrath GmbH on July 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gefluegel Reifenrath GmbH Attn: Uwe Siermann, Manager Industrial Road 3 57520 Steinebach, Germany The administrator can be contacted at: Dr. Klaus Ortmueller Molzbergstrasse 1 57518 Betzdorf, Germany Tel: 02741/93400 Fax: 02741/934033 KSO GMBH: Claims Registration Ends July 28 ------------------------------------------ Creditors of KSO GmbH have until July 28 to register their claims with court-appointed provisional administrator Ulrich Graf. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 8 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bayreuth Room 520 Friedrichstr. 18 Bayreuth, 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 Bayreuth opened bankruptcy proceedings against KSO GmbH on July 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: KSO GmbH Auweg 10 95339 Wirsberg, Germany The administrator can be contacted at: Dr. Ulrich Graf Rathenaustrasse 7 95444 Bayreuth, Germany Tel: 0921/75933-0 Fax: 0921/75933-50 KUENZLER SPORTGERATE: Claims Registration Ends August 5 ------------------------------------------------------- Creditors of Kuenzler Sportgerate GmbH have until Aug. 5 to register their claims with court-appointed provisional administrator Philipp Grub. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Sept. 7 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stuttgart Hall 4 Hauffstr. 5 70190 Stuttgart, 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 Stuttgart opened bankruptcy proceedings against Kuenzler Sportgerate GmbH on July 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kuenzler Sportgerate GmbH Attn: Otto-Karl and Helmut Kuenzler, Managers Remsstr. 2+19 73650 Winterbach, Germany The administrator can be contacted at: Dr. Philipp Grub Humboldtstr. 16 70178 Stuttgart, Germany Tel: 0711/966890 Fax: 0711/9668919 LEHMANN BAUTRAGER: Claims Registration Ends August 16 ----------------------------------------------------- Creditors of Lehmann Bautrager und Immobilien GmbH have until Aug. 16 to register their claims with court-appointed provisional administrator Peter Steuerwald. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Sept. 13 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Braunschweig E 01 Martinikirche 8 38100 Braunschweig, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Braunschweig opened bankruptcy proceedings against Lehmann Bautrager und Immobilien GmbH on June 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Lehmann Bautrager und Immobilien GmbH Small Field 93 38304 Wolfenbuettel, Germany Attn: Reiner Lehmann, Manager Small Field 91 38304 Wolfenbuettel, Germany The administrator can be contacted at: Peter Steuerwald Bruchtorwall 6 D-38100 Braunschweig, Germany Tel: 0531/2448030 Fax: 0531/2448080 MENSA SPEDITIONS: Claims Registration Ends August 16 ---------------------------------------------------- Creditors of MENSA Speditions GmbH have until Aug. 16 to register their claims with court-appointed provisional administrator Thomas Illy. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 6 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 Wiesbaden E 36 A 3rd Floor Building E Moritzstrasse 5 Hinterhaus 65185 Wiesbaden, 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 Wiesbaden opened bankruptcy proceedings against MENSA Speditions GmbH on June 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: MENSA Speditions GmbH Attn: Harald Hartung, Manager Untermainstr. 19 65439 Floersheim, Germany The administrator can be contacted at: Thomas Illy Kanzlei Thierhoff, Illy + Partner Welle 5 60322 Frankfurt/Main, Germany Tel: 069/979953-0 Fax: 069/979953-99 NIKO INDUSTRIESERVICE: Claims Registration Ends August 5 -------------------------------------------------------- Creditors of NIKO Industrieservice und Gebaudereinigung GmbH have until Aug. 5 to register their claims with court-appointed provisional administrator Thomas Leicht. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Sept. 5 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stuttgart Room 20 Hauffstr. 5 70190 Stuttgart, 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 Stuttgart opened bankruptcy proceedings against NIKO Industrieservice und Gebaudereinigung GmbH on July 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: NIKO Industrieservice und Gebaudereinigung GmbH Attn: Dragan Nikolic, Manager Maria-Merian-Road 14 70736 Fellbach, Germany The administrator can be contacted at: Dr. Thomas Leicht Eugenstr. 16 70182 Stuttgart, Germany Tel: 0711/245252 Fax: 0711/233586 PLANART DESIGN: Claims Registration Ends August 1 ------------------------------------------------- Creditors of PlanArt Design GmbH have until Aug. 1 to register their claims with court-appointed provisional administrator Hans-Albrecht Brauer. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on Sept. 20 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 Wittlich Hall 3 Law Courts Kurfuerstenstrasse 63 54516 Wittlich, 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 Wittlich opened bankruptcy proceedings against PlanArt Design GmbH on July 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: PlanArt Design GmbH Mesenberg 15 54516 Wittlich, Germany Attn: Wolfgang Hoffmann, Manager Gerbergasse 4 54340 Leiwen, Germany The administrator can be contacted at: Hans-Albrecht Brauer Jahnstr. 1 54550 Daun, Germany Tel: 06592/985604 Fax: 06592/7344 TOLU WOHNBAU: Claims Registration Ends August 21 ------------------------------------------------ Creditors of Tolu Wohnbau GmbH have until Aug. 21 to register their claims with court-appointed provisional administrator Joachim Exner. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Sept. 6 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 Ansbach Meeting Room 3 Promenade 3 91522 Ansbach, 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 Ansbach opened bankruptcy proceedings against Tolu Wohnbau GmbH on June 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Tolu Wohnbau GmbH Nuernberger Road 18 91781 Weissenburg, Germany The administrator can be contacted at: Joachim Exner Stahlstr. 17 90411 Nuernberg, Germany Tel: 0911/951285-0 Fax: 0911/95128510 ============= I R E L A N D ============= PULS CDO: Moody's Assigns Ba3 Rating to Class E1 Notes ------------------------------------------------------ Moody's Investors Service assigned these definitive ratings in respect of the notes to be issued by Puls CDO 2006-1 PLC: -- Class A1 Senior Floating Rate Notes due 2014: Aaa; -- Class A2A Senior Floating Rate Notes due 2014: Aaa; -- Class A2B Senior Floating Rate Notes due 2014: Aaa; -- Class B Senior Floating Rate Notes due 2014: Aa2; -- Class C1 Senior Floating Rate Notes due 2014: A2; -- Class C2 Subordinated Floating Rate Notes due 2014: A3; -- Class D Subordinated Deferrable Floating Rate Notes due 2014: Baa3; -- Class E1 Subordinated Deferrable Floating Rate Notes due 2014: Ba3; -- Ba3 to the Class E2 Subordinated Deferrable Floating Rate Notes due 2014: Ba3; -- Class P Combination Notes due 2014: Baa2. The Class E1 and Class E2 Notes are pari passu. The ratings address the expected loss posed to investors by the legal final maturity in July 2014. This is a securitization of senior unsecured and subordinated bonds arranged by Merrill Lynch International. The borrowers under such instruments are German and Swiss small to medium sized companies. PULS, the issuer, incorporated in Ireland, issues nine classes of rated Notes: Class A1, Class A2A, Class A2B Class B, Class C1, Class C2, Class D, Class E1 and Class E2 Notes. Except for the Class E2 Notes, which pay a fixed coupon, the Notes have semi-annual interest payment dates and will pay a margin over 6 months EURIBOR. The interest rate mismatch between fixed rate portfolio assets and floating rate liabilities will be hedged using interest rate swaps. Up to 5% of the portfolio may be invested into CHF denominated bonds. The potential foreign exchange risk with respect to the EUR denominated Notes is almost completely mitigated by the implementation of a FX Macro Hedge structure. All classes are expected to mature on the date falling approximately 7 years after the issue date, which is in July 2013. In case not all Notes are redeemed in full on the expected maturity, the maturity of the Notes will extend until the legal maturity in July 2014. The portfolio will be ramped-up over the 180-day period following the Closing Date. Afterwards, the portfolio remains static. The issuer is anticipated to make advances to 40-45 companies in a total amount of EUR260 million. It is noteworthy that the subordinated bonds are deeply subordinated in a potential insolvency proceeding. Furthermore, none of bonds is secured with any kind of collateral. Hence substantially lower expected recovery rate than applicable to typical SME loans should occur. Contrary to more conventional SME loan securitizations, this transaction does not involve a third party originator. The companies were pre-selected by Capital Securities Group AG, acting as Portfolio Manager, based on estimated default frequencies provided by the German Moody's KMV RiskCalc model and on-site due diligences. ========= I T A L Y ========= BANCA NAZIONALE: BNP Paribas Holds 99.14% Equity Stake ------------------------------------------------------ BNP Paribas disclosed that it owns 99.14% of Banca Nazionale del Lavoro S.p.A.'s ordinary capital following its residual offer, which ended on July 20. The BNL ordinary shares were delisted on July 26. BNP Paribas will also launch the squeeze out process of the 0.86% of BNL ordinary shares, which have not been tendered in the coming days. The squeeze out process should be completed within four months following the delisting of the shares. It will require the nomination by the Court of Rome of a legal expert who will set the squeeze out price. About BNP Paribas Headquartered in Milan, Italy, BNP Paribas -- http://www.bnpparibas.com/en/home-- is one of the largest foreign banks in Italy, with a leading and longstanding presence in retail financial services, a well-established position in asset management and services, and the status of a top tier player in corporate and investment banking. It employs more than 3,700 people and generates revenues in excess of EUR750 million. About BNL Headquartered in Rome, Italy, Banca Nazionale del Lavoro S.p.A. -- http://www.bnl.it/-- is the sixth largest Italian bank in terms of deposits and loans. Its network offers nationwide coverage via approximately 800 branches covering all major urban areas. It serves around three million retail customers, 39,000 corporate clients, and 16,000 public entities. * * * As reported in TCR-Europe on July 25, Fitch Ratings upgraded Italy-based Banca Nazionale del Lavoro's Short-term rating to 'F1+' from 'F1'. At the same time, the agency has affirmed the bank's Issuer Default, Individual and Support ratings at 'AA-' (AA minus), 'C' and '1' respectively. Fitch said the Outlook is Stable. FIAT SPA: Auto Unit Forms Financing Venture with Credit Agricole ---------------------------------------------------------------- Fiat S.p.A's Fiat Auto and Credit Agricole reached an agreement for the creation of a 50/50 Joint Venture, Fiat Auto Financial Services, which will carry out the main financing activities related to Fiat Auto in Europe. The agreement is subject to final documentation. The transaction may be closed up to June 30, 2007, but every effort will be made to complete it by Dec. 31 this year, after the necessary regulatory approvals and the exercise by Fiat Auto of the call on Fidis Retail Italia. FAFS activities will include Fiat Auto dealer financing, auto fleet lease and management services, as well as the retail auto financing activities now carried out by Fidis Retail Italia. In addition, the joint venture will offer new financial products to Fiat Auto customers and dealers, leveraging Credit Agricole's financial expertise. FAFS will operate in 13 European countries and will manage assets of approximately EUR13 billion. Under the terms of the agreement, Fiat Auto will receive EUR1 billion in cash for 50% of FAFS, valuing 100% of the joint venture equity EUR2 billion. The JV will benefit from strong integration with Fiat Auto and from Credit Agricole's leadership in European consumer finance. Credit Agricole will provide funding to FAFS at a highly competitive cost. The governance of FAFS will be shared between the two partners. "This transaction marks a new step of the international expansion strategy of Credit Agricole S.A., which is a key element of its three-year development plan," Rene Carron, Chairman of Credit Agricole S.A. stated. "This transaction is also a major importance to further consolidate our market position in specialized financial services. We are please to strengthen our relationships with Fiat, Italy's largest industrial group, and to participate in the renewed growth of its auto sector," Georges Pauget, Credit Agricole's CEO added. "With this new agreement, we are expanding the scope of our alliance strategy to strengthen our financial offering to dealers and customers. This alliance, between a large banking institution and a leading automaker, represents a new reference in passenger car financing and will further support Fiat Auto's ambition throughout Europe," Fiat Auto's CEO Sergio Marchionne declared. Mr. Marchionne added, "We are delighted to have established this partnership with a financial institution of the caliber and reputation of Credit Agricole." Fiat Group was advised by Goldman Sachs International and Grande Stevens (legal advisors), Credit Agricole by Banca Leonardo, Calyon, Rothschild and Baker & MacKenzie (legal advisors). About Credit Agricole Headquartered in France, Credit Agricole Specialized Financial Services -- http://www.credit-agricole.fr/-- encompasses three business lines - consumer finance, lease finance and factoring. In consumer finance, Credit Agricole has a leading position in the European market, managing through its subsidiaries Sofinco and Finaref more than EUR37 billion of assets in 15 European countries. About Fiat Auto Fiat Auto is one of Europe's leading car manufacturers with worldwide unit sales of nearly 1.9 million vehicles in the past 12 months and 2005 revenues in excess of EUR 19.5 billion. With its three well-established brands - Fiat, Alfa Romeo and Lancia - as well as a strong presence in light commercial vehicles, Fiat Auto has a nearly 8% share of the Western European auto market. About Fiat S.p.A Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported in TCR-Europe on Feb. 10, Fitch Ratings has changed the Outlook on Fiat S.p.A.'s 'BB-' Senior Unsecured rating to Stable from Negative. The agency has at the same time affirmed the Senior Unsecured and Short-term 'B' ratings. EUR6 billion of debt is affected by this Rating action. The Outlook change is underpinned by early signs that the restructuring plan is on track, the stabilization of Fiat Auto's market shares in late 2005 and the successful resolution of a number of credit issues. In August 2005, S&P revised its outlook on Fiat to stable from negative. At the same time, it affirmed its 'BB-' long-term and 'B' short-term corporate credit ratings on the group. Fiat carries Moody's Ba3 long-term corporate family rating since July 14, 2003. FIAT SPA: Partners with Severstal-Auto in Ducato Production ----------------------------------------------------------- Fiat Group and Severstal-Auto declared a new project in the field of Light Commercial Vehicles for the production and the distribution in the Russian territory of the Ducato vehicle. The production will be located in the Elabuga area, in Tatarstan region, and will give a very important contribution to the industrial development of the region. The production capacity of the new plant will reach 75,000 units/year part of which will be devoted to Fiat for some export markets. The project will be fully funded by Severstal-Auto. The start of production is forecasted in last quarter 2007. The product will have a high level of local content and will be distributed in several versions. The Russian market of Light Commercial Vehicles is roughly 200,000 units per year and significant growth is expected in the next 3 to 4 years. "The enlargement of the cooperation with Severstal-Auto is another step in the strengthening of our strategic relationship as well as an important opportunity to exploit the high potential of the LCV market in Russia with a product which has been a best seller in Europe for the last 20 years," stated Sergio Marchionne, Chief Executive of Fiat Group. "The new project is a significant result of strategic cooperation between Fiat Group and Severstal-Auto that shows our common intention to take all the advantages of the growing Russian automotive market. We are pleased with the opportunity to promote the Ducato vehicle in Russia and to develop local content for it," Vadim Shvetsov, General Director of Severstal- Auto added. About Fiat S.p.A Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported in TCR-Europe on Feb. 10, Fitch Ratings has changed the Outlook on Fiat S.p.A.'s 'BB-' Senior Unsecured rating to Stable from Negative. The agency has at the same time affirmed the Senior Unsecured and Short-term 'B' ratings. EUR6 billion of debt is affected by this Rating action. The Outlook change is underpinned by early signs that the restructuring plan is on track, the stabilization of Fiat Auto's market shares in late 2005 and the successful resolution of a number of credit issues. In August 2005, S&P revised its outlook on Fiat to stable from negative. At the same time, it affirmed its 'BB-' long-term and 'B' short-term corporate credit ratings on the group. Fiat carries Moody's Ba3 long-term corporate family rating since July 14, 2003. =================== K A Z A K H S T A N =================== AGRO BES: Creditors Must File Claims by Aug. 18 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Agro Bes Tobe insolvent on May 25. Creditors have until Aug. 18 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Region Vostochnaya Promzona Street Taldykorgan Almaty Region Kazakhstan Tel: 8 (3282) 25-55-25 ALEKSEEVKAAGROSTROIMONTAJ: Court Opens Bankruptcy Proceedings ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region has commenced bankruptcy proceeding against JSC Alekseevkaagrostroimontaj on May 23. HLEBOZAVOD: Creditors Must File Claims by Aug. 18 ------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared Enterprise Bakery Plant Hlebozavod insolvent on May 26. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Aug. 18 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Frunze Str. 52-52 Zyrianovsk East Kazakhstan Region Kazakhstan Tel: 8 (235) 4-02-83 JULDYZ JOLY: Creditors Must File Claims by Aug. 18 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Juldyz Joly Ltd. insolvent on June 1. Creditors have until Aug. 18 to submit written proofs of claim to: LLP Juldyz Joly Ltd. Saina Str. 8-94 Almaty, Kazakhstan Tel: 8 (3272) 56-75-46 8 (3332) 93-23-15 KAMKOR: Proof of Claim Deadline Slated for Aug. 18 -------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Kamkor insolvent on May 26. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Aug. 18 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Frunze Str. 52-52 Zyrianovsk East Kazakhstan Region Kazakhstan Tel: 8 (235) 4-02-83 MARKER: Proof of Claim Deadline Slated for Aug. 18 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Marker insolvent on May 31. Creditors have until Aug. 18 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty P.O. Box 42 Post Office 42 Micro District Taugul-1 Almaty, Kazakhstan MEREI-ASAR: Claims Registration Ends Aug. 18 -------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Merei-asar insolvent. Creditors have until Aug.18 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Region Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan RESURS-EKSPRESS: Claims Registration Ends Aug. 18 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Resurs-Ekspress insolvent. Creditors have until Aug. 18 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Region Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan RG BRANDS: Revenue Growth Prompts Moody's to Affirm B2 Rating ------------------------------------------------------------- Moody's Investors Service affirmed the B2 corporate family rating of OJSC RG Brands. The outlook is stable. RG Brands is a leading manufacturer and importer of juices, carbonated soft drinks, milk and teas, with operations predominantly in the Republic of Kazakhstan. Since Moody's originally rated the company in December 2004, the company has grown profitability and benefited from strong market growth. The affirmation reflects primarily: -- the company's strong revenue growth in 2005, with revenues increasing by a very strong 34% to KZT14.3 billion (c. US$122 million); -- the company's strong and often growing market share in its key product ranges; -- the success of its exclusive ten-year bottling agreement with PepsiCo Inc. since 2000, and the growing market share of Pepsi in Kazakhstan; and finally -- the overall growth of the Kazakh economy and disposable income in that country, which bode well for the company's future development. The main constraints to the rating, however, include: -- the overall speed of growth from a relatively small base, which will require management to continue to demonstrate solid controls and reporting mechanisms; -- funds from operations which remained largely unchanged in 2005 versus a year earlier, which has been in part due to certain exogenous factors such as higher cash tax and interest charges; and -- the need for management to ensure that the growth in working capital is funded efficiently, without a longer- term increase in leverage. Moody's notes that working capital requirements were financed by an increase in interest-bearing letters of credit to suppliers, which Moody's considers as debt-like in nature. Letters of credit increased from KZT202 million in 2004 to KZT2.7 billion in 2005, while being partly offset by a decline in other trade payables. Moody's recognizes that the growth in working capital requirements is commensurate with the company's strong top-line growth, but will monitor future financing requirements in conjunction with the company's overall financing capacity. The company's Adj. Total Debt (adjusted for leases and letters of credit)/EBITDA rose to 3.2x in 2005 from 2.6x in 2004, while Retained Cash Flow/Adj. Net Debt fell to 21.7% in 2005 from 30% in 2004. At year-end 2005, RG Brands reported KZT153 million (c. US$1.3 million) in cash and equivalents. At mid-year 2006, the company had access to US$11.2 million in undrawn credit facilities, of which c. US$4.2 million was available only to finance letters of credit. The stable outlook reflects Moody's view that the company and its industry should benefit from strong growth for a number of years, which would be expected to translate into an improvement in operating cash flows barring unforeseen exogenous factors. The rating or outlook could be positively affected by stronger cash generation relative to debt levels, and notably an improved ability to fund growth through internal cash generation. The rating or outlook could face downward pressure if financial debt, including letters of credit, continues to rise without a corresponding increase in cash flows from operations. Headqaurtered in Almaty, Kazakhstan, RG Brands is a leading manufacturer and importer of juices, carbonated soft drinks, milk and teas, with operations predominantly in the Republic of Kazakhstan. In 2005, the company reported revenues and profit from operations of KZT 14.3 billion (c. US$122 million) and KZT1.35 billion (c. US$11.5 million), respectively. STROISERVIS-SSK: Creditors' Claims Due Aug. 18 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Stroiservis-SSK insolvent on June 1. Creditors have until Aug. 18 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Region Vostochnaya Promzona Street Taldykorgan Almaty Region Kazakhstan Tel: 8 (3282) 24-21-39 VOLKAN TRANS: Creditors' Claims Due Aug. 18 ------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Volkan Trans insolvent on May 31. Creditors have until Aug. 18 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty P.O. Box 42 Post Office 42 Micro District Taugul-1 Almaty, Kazakhstan =================== K Y R G Y Z S T A N =================== OPTIMA: Creditors Must File Claims by Sept. 8 --------------------------------------------- LLC Financial-Legal Company Optima has declared insolvency. Creditors have until Sept. 8 to submit written proofs of claim to: LLC Financial-Legal Company Optima Kievskaya Str. 120 Bishkek, Kyrgyzstan Tel: (+996 312) 27-18-81 OVADA LIMITED: Proof of Claim Deadline Slated for Sept. 8 --------------------------------------------------------- LLC Ovada Limited has declared insolvency. Creditors have until Sept. 8 to submit written proofs of claim to: LLC Ovada Limited Jibek-Jolu Str. 509 Bishkek, Kyrgyzstan =================== L U X E M B O U R G =================== STANDARD INTERNATIONAL: Fitch Affirms Individual Rating at C ------------------------------------------------------------ Fitch Ratings affirmed Luxembourg-based Standard International Holdings' ratings at Issuer Default BBB+, Short-term F2, Individual C and Support 2. The Outlook remains Stable. The IDR, Short-term and Support ratings for SIH reflects the high probability of support from SIH's parent, Standard Bank Group and its main operating entity The Standard Bank of South Africa. This is based on a strong statement of support in SBG's annual accounts, and the high level of integration between SIH, SB Plc and SBG. The Individual ratings reflect SIH's growing franchise in the wholesale, cross-border emerging market line of business, and sound risk management, while liquidity and capitalization are considered satisfactory. As a consequence of the emerging markets exposure, the potential for volatility exists and market risk is fairly high. The strategy to diversify by geography and critical mass has helped spread risks, although critical mass remains an issue in some areas. SIH is the holding company (established in 1992) for the international investment banking activities of SBG and is regulated on a consolidated basis by the FSA in the U.K. SIH has further subsidiaries in Malaysia, Turkey, and Singapore. SIH specializes in emerging market and natural resource transactions and is managed on a group basis rather than as separate subsidiaries. =============== P O R T U G A L =============== CAIXA ECONOMICA: Fitch Keeps Individual C Rating ------------------------------------------------ Fitch Ratings changed Caixa Economica Montepio Geral's Outlook to Stable from Negative. Its ratings are affirmed at Issuer Default A-, Short-term F2, Individual C and Support 4. The change in Outlook reflects Montepio Geral's improved profitability in the last two years, due to increased focus on cross-selling the group's products and services while controlling costs. The new Outlook also reflects Fitch's view that the bank will continue to report an acceptable performance despite the current operating environment in Portugal. The Issuer Default, Short-term and Individual ratings reflect Montepio Geral's fairly low-risk mortgage lending activities, relatively sound regulatory capital base and strong franchise in its niche business. They also take into account the bank's reasonable asset quality with impaired loans accounting for 2.4% of total loans and a sound loan loss cover of 122% at end-2005. Downside risk to its ratings could arise from a sharp deterioration in the Portuguese housing market, although the majority of its loans being secured limit this risk. Montepio Geral's activity focuses on collecting retail deposits and providing residential mortgages and housing-related construction loans. It had a 9.4% share of the Portuguese mortgage lending market at end-2005. It is wholly-owned by Montepio Geral Associacao Mutualista, a not-for-profit mutual organization, which provides social benefits to its members. =========== R U S S I A =========== AGRO-KHIM-SERVICE: Court Names E. Golenkov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Kirov Region appointed Mr. E. Golenkov as Insolvency Manager for OJSC Agro-Khim-Service. He can be reached at: E. Golenkov Shmidta Str. 4 Penza Region Russia Tel: 8412-421-607 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A28-324/05-283/20. The Arbitration Court of Kirov Region is located at: K-Libknekhta Str. 102 610017 Kirov Region Russia The Debtor can be reached at: OJSC Agro-Khim-Service K. Marksa Str. Yaransk Kirov Region Russia BARDYMSKIY DIARY: Court Names D. Kondalov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Perm Region appointed Mr. D. Kondalov as Insolvency Manager for LLC Bardymskiy Diary. He can be reached at: D. Kondalov Komsomolskiy Pr. 34B 614000 Perm Region Russia Tel: 8(342) 234-97-22 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A 50-40105/2005-B. The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3. Perm Region Russia The Debtor can be reached at: LLC Bardymskiy Diary Sovetskaya Str. 68 614045 Perm Region Russia DOR-STROY-INVEST: Court Names M. Vasilega as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. M. Vasilega as Insolvency Manager for OJSC Dor-Stroy-Invest (TIN 7703035095). He can be reached at: M. Vasilega Post User Box 100 105318 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-12841/06-103-34 B. The Debtor can be reached at: OJSC Dor-Stroy-Invest Shelepikhinskaya Nab. Str. 34 Moscow Region Russia DUVANSKAYA SEL-KHOZ-KHIMIYA: Court Starts Bankruptcy Supervision ---------------------------------------------------------------- The Arbitration Court of Bashkortostan Republic has commenced bankruptcy supervision procedure on State Unitary Enterprise Duvanskaya Sel-Khoz-Khimiya (TIN 0220000373). The case is docketed under Case No. A07-6205/06-G-KhRM. The Temporary Insolvency Manager is: A. Abakarov Promyshlennaya Str. 9. Mesyagutovo Duvanskiy Region Bashkortostan Republic Russia The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: State Unitary Enterprise Duvanskaya Sel-Khoz-Khimiya Promyshlennaya Str. 9 Mesygutovo Duvanskiy Region Bashkortostan Republic Russia EASTERN OIL: Primorye Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Primorye Region has commenced bankruptcy supervision procedure on CJSC Eastern Oil Loading Terminal. The case is docketed under Case No. A51-4827/ 2006-15-96B. The Temporary Insolvency Manager is: A. Kudelkin Post User Box 34/19 Khabarovsk 680014 Primorye Region Russia The Debtor can be reached at: CJSC Eastern Oil Loading Terminal Vrangel-1 Nakhodka Primorye Region Russia GIMED: Nizhniy Novgorod Court Begins Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region will convene at 9:00 a.m. on Sept. 5 to hear the bankruptcy supervision procedure on CJSC Gimed. The case is docketed under Case No. A43-4497/2006 24-28. The Temporary Insolvency Manager is: E. Naumov Vaneeva Str. 116-52. 603136 Nizhniy Novgorod Region Russia The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: CJSC Gimed Larina Str. 7 603107 Nizhniy Novgorod Region Russia MILKY: Bankruptcy Hearing Slated for Oct. 2 ------------------------------------------- The Arbitration Court of Ulyanovsk Region will convene at 1:00 p.m. on Oct. 2 to hear the bankruptcy supervision procedure on OJSC Milky. The case was docketed under Case No. A17-1351/ 06-10-B. The Temporary Insolvency Manager is: E. Pushkova Office 607 15th Proezd 4 153006 Ivanovo Region Russia Tel/Fax: (4932) 47-54-41 The Debtor can be reached at: OJSC Milky Oktyabrskaya Str. 83 Lukh 155270 Ulyanovsk Region Russia NIZHNEVYAZOVSKIY GRAIN: Court Names A. Minachev to Manage Assets ---------------------------------------------------------------- The Arbitration Court of Tatarstan Republic appointed Mr. A. Minachev as Insolvency Manager for CJSC Nizhnevyazovskiy Grain Receiving Centre. He can be reached at: A. Minachev Post User Box 188. Kazan 420126 Tatarstan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A65-22907/2005-SG4-26. The Debtor can be reached at: CJSC Nizhnevyazovskiy Grain Receiving Centre Zelenodolskiy Region Tatarstan Republic Russia OCTYABRSKIY FACTORY: Bankruptcy Hearing Slated for August 21 ------------------------------------------------------------ The Arbitration Court of Bashkortostan Republic will convene at 10:00 a.m. on Aug. 21 to hear the bankruptcy supervision procedure on OJSC Octyabrskiy Factory of Oil and Gas Engineering. The case was docketed under Case No. A07-6943/ 06-G-ADM. The Temporary Insolvency Manager is: Mr. R. Baykov Kosmonavtov Str. 65 Oktyabrskiy Bashkortostan Republic Russia The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: OJSC Octyabrskiy Factory of Oil and Gas Engineering Kosmonavtov Str. 65 Oktyabrskiy Bashkortostan Republic Russia PARFENYEVSKIY BUTTER: V. Krasnov to Manage Assets ------------------------------------------------- The Arbitration Court of Kostroma Region appointed Mr. V. Krasnov as Insolvency Manager for LLC Parfenyevskiy Butter Cheese Factory. He can be reached at: V. Krasnov Post User Box 24 Kostroma-14 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A31-292/2006-12. The Debtor can be reached at: LLC Parfenyevskiy Butter Cheese Factory Post User Box 24 Kostroma-14 Russia SIBERIAN ELECTRODE: Court Begins Bankruptcy Supervision ------------------------------------------------------- The Arbitration Court of Novosibirsk Region will convene on Aug. 16 to hear the bankruptcy supervision procedure on OJSC Siberian Electrode Factory. The case is docketed under Case No. A45-8364/06-4/36. The Temporary Insolvency Manager is: V. Trostonetskaya Post User Box 69 630004 Novosibirsk Region Russia The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: OJSC Siberian Electrode Factory Pushkina Str. 8 Chistoozerskoye Novosibirsk Region Russia TOGUCHIN-MILK: Court Names V. Makarov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Novosibirsk Region appointed Mr. V. Makarov as Insolvency Manager for OJSC Toguchin-Milk. He can be reached at: V. Makarov Post User Box 325 Krasnoobsk 630501 Novosibirsk Region Russia Tel: 348-53-06 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-21413/04-SB/172. The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3. 630007 Novosibirsk Region Russia The Debtor can be reached at: OJSC Toguchin-Milk Stroitelnaya Str. 5 Toguchin Novosibirsk Region Russia ULYANOVSK-HYDRO-MECHANIZATION: Bankruptcy Supervision Starts ------------------------------------------------------------ The Arbitration Court of Ulyanovsk Region has commenced bankruptcy supervision procedure on OJSC Ulyanovsk-Hydro- Mechanization. The case was docketed under Case No. A72-7033/05-19/32-B. The Temporary Insolvency Manager is: V. Ermilov Office 14 Federatsii Str. 105 432071 Ulyanovsk Region Russia The Debtor can be reached at: OJSC Ulyanovsk-Hydro-Mechanization Moskovskoye Shosse 52 Ulyanovsk Region Russia VICTORY: Moscow Court Starts Bankruptcy Supervision --------------------------------------------------- The Arbitration Court of Moscow has commenced bankruptcy supervision procedure on OJSC Victory (7728011064). The case was docketed under Case No. A40-11450/06-88-34 B. The Temporary Insolvency Manager is: O. Sopilchenko Mira Pr. 101V 129085 Moscow Region Russia Tel: 609-66-66 The Debtor can be reached at: OJSC Victory Nametkina Str. 10B 117420 Moscow Region Russia WOOD-WORKING FACTORY: Court Names M. Putintsev to Manage Assets --------------------------------------------------------------- The Arbitration Court of Kemerovo Region appointed Mr. M. Putintsev as Insolvency Manager for OJSC Wood-Working Factory. He can be reached at: M. Putintsev Post User Box 3047 650033 Kemerovo Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A 27-6175/2004-4. The Debtor can be reached at: OJSC Wood-Working Factory Predzavodskoy 650021 Kemerovo Region Russia YUKOS OIL: Creditors Nix Rescue Plan & Vote for Liquidation ----------------------------------------------------------- Creditors of OAO Yukos Co. voted to liquidate what was once Russia's biggest oil firm after rejecting a management rescue plan, which values the company's assets at about US$30 billion. This would have permitted Yukos to continue its operations and attempt to pay off US$18 billion in debts through asset sales. The vote came hours after bankruptcy manager Eduard Rebgun said Yukos cannot pay its debts in the time allotted by law, the Associated Press reports. Mr. Rebgun values the company's assets at RUB477 billion (US$17.71 billion) and lists claims against Yukos at about RUB500 billion (US$18.76 billion). The company's management has disputed Mr. Rebgun's conclusion that the company is insolvent. The AP says Zak Clement, a lawyer for Yukos, claimed the company was worth US$37 billion. Yukos's creditors, led by the Federal Tax Service and state- owned OAO Rosneft Oil Company, will oversee the liquidation and distribution of the company's assets, Greg Walters and Geoffrey T. Smith write for The Wall Street Journal. As previously reported in TCR-Europe, Yukos CEO Steven Theede disclosed his resignation effective Aug. 1 saying there was "nothing left" he could do to prevent the company's liquidation. The Moscow Arbitration Court will decide on Aug. 1 whether to declare the company bankrupt. Yukos creditors listed in the claims register include: Company Amount ------- ------ Russian Federal Tax Service RUB353.8 billion Yuganskneftegaz More than RUB108.8 billion Tomskneft-BNK RUB12.3 billion Samaraneftegaz RUB1.85 billion Yukos-Moscow RUB933 million Siberia Service Company RUB228.4 million Yukos-RM RUB131.3 million Yukos-EP RUB110 million Prikaspiiburneft RUB54.9 million Sibinteklizing RUB52 million Orelnefteprodukt RUB25.7 million Tyumenskaya Kompleksnaya RUB24.1 million Geologorazvedochnaya Ekspeditsiya Cargill Yug RUB18.8 million BDO Unicon Consulting Around RUB12 million Yukos-Vostok Trade RUB4 million M-Reestr RUB3.5 million Progress insurance company RUB2.3 million MGTS RUB586,000 Center of Rescue and Environmental Around RUB90,000 About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 10775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. ============================= S L O V A K R E P U B L I C ============================= SLOVENSKA SPORITELNA: Fitch Keeps Individual Rating at C/D ---------------------------------------------------------- Fitch Ratings affirmed Slovak Republic-based Slovenska Sporitelna's ratings at Issuer Default A- with Stable Outlook, Short-term F2 and Support 1. At the same time, the bank's Individual rating has been affirmed at C/D. Slovenska's Issuer Default, Short-term and Support ratings are based on the extremely strong potential support from its sole shareholder, Austria-based Erste Bank der oesterreichischen Sparkassen AG (rated A). Slovenska's Individual rating takes into account the bank's solid retail franchise, and improving risk profile, asset quality and profitability, but also accelerated loan growth. "SLSP has been steadily strengthening its franchise and benefits from the integration into the network of its owner, Erste Bank. However, loan growth in both retail and corporate loan books has been rapid in 2005," Fitch Financial Institutions group's Michael Steinbarth disclosed. "An improvement in the Individual rating would require more diversified income, prudent management of the expanding loan book and stronger internal capital generation," Mr. Steinbarth added. Capitalisation is currently adequate although the total capital ratio has noticeably fallen with the growth in risk-weighted assets. Around 10% of Slovenska's consolidated assets are now in real estate/mortgage lending, which has yet to be tested in an economic downturn. Asset quality continues to improve, and while the bank has a substantial portfolio of unseasoned loans, non-performing loans have also fallen in absolute terms to account for under 4% of the FYE05 gross loan book. They are adequately reserved if collateral is taken into account. ============= U K R A I N E ============= ALMAKS MANUFACTORY: Court Names Yevgenij Shtepenko as Liquidator ---------------------------------------------------------------- The Economic Court of Poltava Region appointed Yevgenij Shtepenko as Liquidator/Insolvency Manager for LLC Industrial Company Almaks Manufactory (code EDRPOU 21056430). He can be reached at: Yevgenij Shtepenko Room 12 Nezalezhnosti Square 1-B 36003 Poltava Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on May 4. The case is docketed under Case No. 18/173. The Economic Court of Poltava Region is located at: Zigina Str. 1 36000 Poltava Region Ukraine The Debtor can be reached at: LLC Industrial Company Almaks Manufactory Vizvolennya Str. 21 36039 Poltava Region Ukraine BUDENERGOTRANS: Court Names Yuliya Berezhnova as Liquidator ----------------------------------------------------------- The Economic Court of Harkiv Region appointed Yuliya Berezhnova as Liquidator/Insolvency Manager for LLC Budenergotrans (code EDRPOU 33071492). She can be reached at: Yuliya Berezhnova Peremogi Avenue 59/259 Harkiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 1. The case is docketed under Case No. B-39/31-06. The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor can be reached at: LLC Budenergotrans Zhovtneva Str. 16 Balakliya 64200 Harkiv Region Ukraine ELEKTRA-PLUS: Sumi Court Begins Bankruptcy Supervision ------------------------------------------------------ The Economic Court of Sumi Region commenced bankruptcy supervision procedure on Trade Firm Elektra-Plus (code EDRPOU 31312196). The case is docketed under Case No. 6/19-06. The Temporary Insolvency Manager is: Boris Krivenko Office 408 Nezalezhnosti Square 1 40030 Sumi Region Ukraine The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: Trade Firm Elektra-Plus Ohtirska Str. 15/3 40000 Sumi Region Ukraine GART: Hmelnitskij Court Starts Bankruptcy Supervision ----------------------------------------------------- The Economic Court of Hmelnitskij Region commenced bankruptcy supervision procedure on LLC Gart (code EDRPOU 21315713). The case is docketed under Case No. 2/125-B. The Temporary Insolvency Manager is: Mariya Golovata Knyaziv Koriatovichiv Str. 4/49 Kamyanets-Podilskij 32300 Hmelnitskij Region Ukraine The Economic Court of Hmelnitskij Region is located at: Nezalezhnosti Square 1 29000 Hmelnitskij Region Ukraine The Debtor can be reached at: LLC Gart Zavodska Str. 2 Kamyanets-Podilskij 32300 Hmelnitskij Region Ukraine KAMYANETS: Hmelnitskij Court Begins Bankruptcy Supervision ---------------------------------------------------------- The Economic Court of Hmelnitskij Region commenced bankruptcy supervision procedure on LLC Building Company Kamyanets (code EDRPOU 01353835). The case is docketed under Case No. 2/114-B. The Temporary Insolvency Manager is: Mariya Golovata Knyaziv Koriatovichiv Str. 4/49 Kamyanets-Podilskij 32300 Hmelnitskij Region Ukraine The Economic Court of Hmelnitskij Region is located at: Nezalezhnosti Square 1 29000 Hmelnitskij Region Ukraine The Debtor can be reached at: LLC Building Company Kamyanets Knyaziv Koriatovichiv Str. 4/49 Kamyanets-Podilskij 32300 Hmelnitskij Region Ukraine KRONA: Lviv Court Commences Bankruptcy Supervision -------------------------------------------------- The Economic Court of Lviv Region commenced bankruptcy supervision procedure on LLC Production Enterprise Krona (code EDRPOU 32282622) on May 22. The case is docketed under Case No. 6/269-5/213. The Temporary Insolvency Manager is: Sergij Lipskij a/b 4389 79013 Lviv Region Ukraine The Economic Court of Lviv Region is located at: Lichakivska Str. 81 79010 Lviv Region Ukraine The Debtor can be reached at: LLC Production Enterprise Krona Grabovets Strijskij District 82435 Lviv Region Ukraine KYIV SECURITIES: Court Names O. Sherban as Liquidator ----------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. O. Sherban as Liquidator/Insolvency Manager for LLC Kyiv Securities (code EDRPOU 23155739). He can be reached at: Mr. O. Sherban a/b 157 01030 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on March 20. The case is docketed under Case No. 15/720-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Kyiv Securities Geroiv Stalingrada Avenue 16 04210 Kyiv Region Ukraine METALLURGY: Court Names Oleksandr Chechelnitskij as Liquidator -------------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Oleksandr Chechelnitskij as Liquidator/Insolvency Manager for Ukrainian Industrial-Investing Consortium Metallurgy (code EDRPOU 30958323). He can be reached at: Oleksandr Chechelnitskij Korolyov Avenue 2-v/104 01000 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 7. The case is docketed under Case No. 21/125/06. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: Ukrainian Industrial-Investing Consortium Metallurgy Rekordna Str. 20-a 69037 Zaporizhya Region Ukraine MIG-2000: Court Names Oleksandr Shikulenko as Liquidator -------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Oleksandr Shikulenko as Liquidator/Insolvency Manager for LLC MIG-2000 (code EDRPOU 30719500). He can be reached at: Oleksandr Shikulenko Shirshova Str. 7/82 49000 Dnipropetrovsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 5. The case is docketed under Case No. 25/118/06. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Mig-2000 Bazova Str. 11 69013 Zaporizhya Region Ukraine MITOS: Harkiv Court Starts Bankruptcy Supervision ------------------------------------------------- The Economic Court of Harkiv Region commenced bankruptcy supervision procedure on LLC Mitos (code EDRPOU 00293485). The case is docketed under Case No. B-50/33-06. The Temporary Insolvency Manager is: Oleg Dyomin Radyanska Str. 69/14 Nataline Krasnogradskij District Harkiv Region Ukraine The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor can be reached at: LLC Mitos Dmitrivska Str. 19 61052 Harkiv Region Ukraine ODESSA' TECHNICAL: Court Names Volodimir Ajmedov as Liquidator -------------------------------------------------------------- The Economic Court of Odessa Region appointed Volodimir Ajmedov as Liquidator/Insolvency Manager for CJSC Odessa' Technical Fabrics Factory (code EDRPOU 00306420). He can be reached at: Volodimir Ajmedov Hrustalnij Lane 3 Odessa Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 1. The case is docketed under Case No. 2-32-24/292-03-9660. The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region Ukraine The Debtor can be reached at: CJSC Odessa' Technical Fabrics Factory Vasil Stus Str. 2 b Odessa Region Ukraine SHEVCHENKIVSKIJ: Court Starts Bankruptcy Supervision ---------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC Tribal Plant Shevchenkivskij (code EDRPOU 24218330). The case is docketed under Case No. 110/ 2 b-2006. The Temporary Insolvency Manager is: Sergij Yegorenkov Lesya Ukrainka Boulevard 19/138 01133 Kyiv Region Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Tribal Plant Shevchenkivskij Shevchenkove Pereyaslav-Hmelnitskij District 08462 Kyiv Region Ukraine SOLVEY UKRAINE: Court Names Sergij Boltik as Insolvency Manager --------------------------------------------------------------- The Economic Court of Poltava Region appointed Sergij Boltik as Liquidator/Insolvency Manager for LLC Solvey Ukraine (code EDRPOU 33014036). He can be reached at: Sergij Boltik Kondratenko Str. 6 36009 Poltava Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on May 30. The case is docketed under Case No. 7/47-06. The Economic Court of Poltava Region is located at: Zigina Str. 1 36000 Poltava Region Ukraine The Debtor can be reached at: LLC Solvey Ukraine Michurin Str. 121 Globine Poltava Region Ukraine UKRSOTSBANK: S&P Keeps B- Credit Rating on Watch Positive --------------------------------------------------------- Standard & Poor's Ratings Services revealed that Ukrsotsbank OJSC's 'B-' long-term counterparty credit rating remains on CreditWatch with positive implications, where it had originally been placed on Feb. 15. At the same time, it placed its 'C' short-term rating on USB on CreditWatch with positive implications. The ratings on USB were placed on CreditWatch with positive implications, following the announcement that Italy-based Banca Intesa S.p.A. had signed a share purchase agreement with the majority shareholder of USB on the acquisition of 88.1% of the share capital of USB. This is pending regulatory approvals, and is expected to be finalized in the second half of 2006. "If the acquisition completes successfully, the ratings on USB could be raised by a maximum of three notches, but unlikely to exceed the sovereign foreign currency rating," said Standard & Poor's credit analyst John Gibling. The ratings on USB reflect the bank's exposure to the risky political and operational environment in Ukraine, high single- party lending concentrations, and competition challenges, somewhat mitigated by the large untapped domestic demand. A new share issue of UAH300 million (about US$60 million) at the end of June 2006 supports USB's capitalization, although still limited, and growth prospects in the short run, but pressure may increase again as the expansion continues. "In this context, future shareholder's capital policy and support will be crucial for the bank's creditworthiness. The negative rating factors are somewhat mitigated by USB's good commercial franchise on the Ukrainian banking market, adequate financial performance, and liquidity position," added Mr. Gibling. UKRVTORMET: Harkiv Court Starts Bankruptcy Supervision ------------------------------------------------------ The Economic Court of Harkiv Region commenced bankruptcy supervision procedure on JSC Ukrvtormet (code EDRPOU 24139056) on April 19. The case is docketed under Case No. B-39/28-06. The Temporary Insolvency Manager is: Ludmila Volovik a/b 1203 61123 Harkiv Region Ukraine The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor can be reached at: JSC Ukrvtormet Chernishevskij Str. 66 61002 Harkiv Region Ukraine =========================== U N I T E D K I N G D O M =========================== ACCESS STAFF: Claims Registration Ends Nov. 30 ---------------------------------------------- Creditors of Access Staff Limited have until Nov. 30 to send in their full names, addresses and descriptions, full particulars of debts or claims, and the names and addresses of Solicitors, if any, to appointed Liquidator M. H. Abdulali at: Moore Stephens 6 Ridge House Ridgehouse Drive Festival Park Stoke on Trent ST1 5TL United Kingdom The company can be reached at: Access Staff Limited 452 Tyburn Road Birmingham West Midlands B24 8EE United Kingdom Tel: 0121 386 2740 Fax: 0121 386 2741 Web: http://www.accesstaff.co.uk/ BONTHRONE LIMITED: Brings In P&A Partnership as Administrators -------------------------------------------------------------- Christopher Michael White and Brendan Ambrose Guilfoyle of The P&A Partnership were appointed joint administrators of Bonthrone Limited (Company Number 02861804) on June 15. 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. Bonthrone Limited can be reached at: Hill House 5-5A Holywell Hill St. Albans Hertfordshire AL1 1EU United Kingdom Tel: 01962 735 544 EIRLES FOUR: Loss From Deal Spurs Fitch to Cut Ratings to B+ ------------------------------------------------------------ Fitch Ratings downgraded Eirles Four Limited, Series 42 (SARCO) notes (XS0171953796) due 2013 to B+ from BBB- and removes them from Rating Watch Negative. The downgrade reflects the losses to the deal following the credit event on Delphi Corp. in October 2005, and extensive negative rating migration. Currently around 16% of the portfolio references speculative-grade names, including low- rated names such as Visteon Corp (CCC). Fitch notes that the performance of the deal has been impaired by the sustained deterioration in credit quality of Visteon and other U.S. auto names that were investment-grade at deal close. Fitch will monitor the performance of this transaction closely and will downgrade again should the credit quality of the portfolio deteriorate further. The agency notes, however, that based on the remaining credit enhancement, this deal could sustain a further four defaults with low recoveries before losses would be applied to the notes. The issuer, Eirles Four Limited, is a special purpose vehicle incorporated with limited liability in Ireland. It currently provides protection to Deutsche Bank on a US$750 million reference portfolio of 98 reference entities with a weighted- average credit quality equivalent to a BBB/BBB- rating using Fitch's rating factors. The reference portfolio amount has decreased to US$735 million from the initial US$750 million following the credit events on Parmalat and Delphi Corp. EUROTUNNEL GROUP: Paris Court Delays Decision to August 2 --------------------------------------------------------- The Commercial Court of Paris delays its decision whether to approve Eurotunnel Group's bankruptcy petition to Aug. 2. The company was not surprised by the decision as it has made 17 applications covering six European countries. The postponement will give more time to the creditors to reach an agreement on restructuring Eurotunnel's GBP6.2 billion outstanding debt. "The court said it postponed its decision in the face of the complexity of the subject," Dow Jones Newswires quoted Jean Veil, a lawyer for Eurotunnel as saying. "It's an opportunity for negotiations, which always take place at the last minute." "We have good hope that a solution can be found," Mr. Veil told Bloomberg. ARCO Chairman Jean-Pierre Mattei told The Times that a deal was "very close" and could be reached before Aug. 2. "Everyone wants a lasting solution," Mr. Mattei stated. ARCO represents 68% of Eurotunnel's outstanding GBP1.9 billion bonds and notes. Eurotunnel points out that the restructuring of its debt has been a problem between creditors ever since it proposed a management-backed rescue plan with Goldman Sachs Group Inc., Macquarie Bank Ltd. and Barclays PLC. The current negotiations led by the company have now given rise to an implicit consensus that: -- the sustainable level of debt is approximately GBP2.9 billion; and -- the current shareholders must benefit from accretion measures and retain a significant proportion of the equity. The company believes there is no reason why the creditors should not rapidly come to a consensual restructuring agreement within this framework. As Eurotunnel will make a payment of GBP78 million in interest, arguments relating to default of payment should not be used to justify a rupture in negotiations. It should be noted that the total amount of payments on the debt to be made before Dec. 31, 2006, is GBP74 million. In the absence of an agreement, the safeguard procedure would allow the company, aided by judicially appointed administrators, to re-engage in negotiations at the point at which they ceased. The creditors would have nothing to gain from such an outcome. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. * * * As reported by TCR-Europe on July 14, Eurotunnel Group was forced to place itself under creditor protection at the Commercial Court of Paris pursuant to the French law "procedure de sauvegarde" on July 13, after restructuring talks with bondholders failed. On June 27, Eurotunnel turned down the restructuring plan prepared by a group of secured bondholders led by Deutsche Bank AG asserting that it requires too much debt and gives too much to bondholders. The bondholders' restructuring plan, which valued the company at EUR7.99 billion, aims to reduce 60% of total debt to EUR3.7 billion and issue a EUR2.175 billion convertible hybrid note with a 4% coupon. The plan rivaled the preliminary restructuring agreement backed by Eurotunnel, Goldman Sachs Group Inc., Macquarie Bank Ltd. and Barclays PLC. The plan dated May 23, valued the company at around EUR7.03 billion and included a EUR1.5 billion hybrid issue with a 6% to 9% coupon and would reduce debt by 54%. Under the agreement, bondholders will get a GBP75 million return for their GBP1.9 billion bond holdings. On July 12, Eurotunnel presented an ultimate proposal to reach a compromise between the May 23 preliminary restructuring agreement and the demands made by its subordinated creditors represented by The Association of Eurotunnel's Secured Bondholders (ARCO). The company claimed that the majority of these demands were satisfied by the substantial efforts jointly made by the company and the Ad Hoc Committee. The subordinated creditors, led by Deutsche Bank, rejected this final attempt to reach a consensual deal. The Joint Board of Eurotunnel unanimously decided to cancel the General Meetings of Shareholders of Eurotunnel PLC and Eurotunnel SA, planned for July 27. Absent a final agreement, the Group may default in January 2007 under a 1998 debt agreement. Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faces uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. EXPRESS MARINE: Joint Liquidators Take Over Operations ------------------------------------------------------ David Kenneth Duggins and Elizabeth Anne Bingham of Ernst & Young LLP were appointed Joint Liquidators of Express Marine Services Limited after members voted to wind up the company during a general meeting on April 25. Ernst & Young -- http://www.ey.com/-- is global organization help companies in businesses across all industries-from emerging growth companies to global powerhouses-deal with a broad range of business issues. It has 107,000 people in 140 countries around the globe pursue the highest levels of integrity, quality and professionalism to provide clients with a broad array of services relating to audit and risk-related services, tax, and transactions. Express Marine Services Limited can be reached at: Donnington Pk Birdham Road Chichester West Sussex PO207DU United Kingdom Fax: 01243 778 111 FCE BANK: S&P Removes Low -B Ratings from Watch Negative -------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' long-term and 'B-2' short-term ratings on FCE Bank PLC. At the same time, the long-term rating was removed from CreditWatch where it had been placed with negative implications on June 28. The outlook is negative. The affirmation and resolution of the CreditWatch placement follows the completion of Standard & Poor's evaluation of the potential for FCE to be rated slightly higher than its parent, Ford Motor Credit Co. "The one-notch rating differential from FCE's ultimate parent, Ford Motor Co., reflects Standard & Poor's opinion that FCE's sound capitalization, regulated status, and the ability to access independent asset-backed funding could possibly enable FCE to remain current on its debt service requirements even if Ford and FCE's immediate parent, Ford Credit, were to file for bankruptcy protection," said Standard & Poor's credit analyst Nigel Greenwood. FCE is Ford's European captive automotive finance company. FCE's stand-alone creditworthiness is better than that of its parent and shares some characteristics with peer captive finance subsidiaries of major European automotive groups. This reflects FCE's sound capitalization, adequate earnings, and satisfactory credit quality. Regulated by the FSA, FCE has to comply with FSA regulatory limits and FSA approval is required for any changes to FCE's capital base. Standard & Poor's considers that the competitiveness of Ford's automotive operations in Europe is weaker than that of its major European peers, and this has direct implications for the franchise value of FCE's finance business. The negative outlook reflects that on Ford. If the ratings on Ford were lowered to 'B', then the ratings on FCE would be lowered to 'B+', thus maintaining the one-notch rating differential between the two entities. "If the outlook on Ford is revised back to stable from negative, then the same would apply to the outlook on FCE," added Mr. Greenwood. Standard & Poor's expects FCE to continue to reduce its reliance upon intercompany funding, and to maintain its earnings performance and sound capitalization. Credit losses are expected to rise from their current low levels, but should remain manageable. FORBER & WRATE: Creditors Pass Winding Up Resolution ---------------------------------------------------- Creditors of Forber & Wrate Limited passed a resolution to wind up the company's operations on April 26. John Paul Sugden was appointed Liquidator. The company can be reached at: Forber & Wrate Limited Parkfield Wks Parkfield Terrace Pudsey West Yorkshire LS287RT United Kingdom Fax: 0113 256 4326 G.T. ALMAX: Appoints Administrators from Moore Stephens ------------------------------------------------------- Mark Elijah Thomas Bowen and Nigel Price of Moore Stephens LLP were appointed joint administrators of G.T. Almax Limited (Company Number 01125395) on June 22. Moore Stephens -- http://www.moorestephens.co.uk-- offers audit, business support, corporate finance, corporate recovery, dispute analysis, financial services, insurance broking, IT consultancy, pensions audit, risk advisory services, tax and trusts & estates services. Its U.K. network comprises over 1,400 partners and staff. Headquartered in Redditch, United Kingdom, G.T. Almax Limited manufactures dies for tools. GENERAL MOTORS: Incurs US$3.2-Bln Net Loss in Second Quarter ------------------------------------------------------------ General Motors Corp. reported a net loss of US$3.2 billion for the second quarter of 2006, compared with a reported loss of US$987 million, for the same period last year. The net loss for the quarter included a total of US$4.3 billion in special items that reflected a previously announced US$3.7 billion after-tax charge related to the successful accelerated attrition program, in which 34,400 hourly employees participated. Other special items included a loss related to the pending sale of 51% of GMAC, a gain on the disposition of Isuzu stock, and restructuring charges. GM posted 2006 second-quarter adjusted net income, excluding special items, of US$1.2 billion on record revenue of US$54.4 billion. This reflects a US$1.4 billion improvement from the year-ago adjusted loss of US$231 million on revenue of US$48.5 billion. "With the support of our employees, unions, dealers, suppliers and stockholders, we are moving rapidly and aggressively to address our challenges and restructure GM for future success," said Rick Wagoner, GM chairman and chief executive officer. "It's rewarding to see our automotive business return to profitability on an operating basis and a clear sign that we're on the right track, but there is more work to be done." Mr. Wagoner also said the success of the accelerated attrition program in the United States, along with other cost initiatives, led GM to increase its structural cost reduction target in North America to US$9 billion from US$8 billion on an average annual running rate basis by the end of 2006. "Our turnaround has not just gained traction, it's accelerating into high gear," Mr. Wagoner said. "While significant work still remains, our ability to identify and initiate US$9 billion in cost cuts over the course of the past year is unprecedented in this industry. "We're particularly pleased with the speed with which our people have implemented our turnaround plan. Conventional wisdom is that you can't turn a ship as big as GM around quickly. We aim to prove that conventional wisdom wrong." GM Automotive Operations GM's global automotive operations earned US$362 million on an adjusted basis, excluding special items, representing an improvement of US$1.3 billion year-over-year. This is due primarily to significant improvement in GM North America and continued profitability improvement in other regions. GM's global market share in the second quarter was 13.8%, up from the first quarter market share of 13.1%, but down from 15.1% last year. The change in global market share is largely attributable to last year's highly successful employee discount incentive program in North America and lower fleet sales in Europe. "We know we have to develop and build great cars and trucks to grow our business and we're encouraged by the recent success of our newest vehicles, particularly in the U.S. market," Wagoner said. "Our new full-size SUVs, the Chevrolet Impala and HHR, and Pontiac G6 have all posted strong sales this quarter. Our newly launched vehicles will account for about 30% of our U.S. retail sales this year and grow to 40% next year." GM North America posted an adjusted net loss of US$85 million, excluding special items, in the second quarter of 2006, a US$1.1 billion improvement over the prior year period. The improvement is attributable to reductions in GM's cost base across a broad range of activities, including improvement in warranty and other quality-related costs and a reduction in ongoing pension expense, due largely to the success of the hourly attrition program. The attrition program and other cost initiatives have enabled GM to increase its structural cost reduction target in North America. GM expects to realize approximately US$6 billion in cost savings in 2006, up from the previously announced US$5 billion. A major contributor to this improvement is the April 30 remeasurement of the U.S. hourly pension plans, which will result in a pre-tax pension expense reduction of about US$700 million for the 2006 calendar year. "We have made solid progress in implementing our North America turnaround plan in the first half, posting more than US$2 billion worth of improvements at GMNA, excluding special items," Wagoner continued. "More significantly, the impact of our cost- reduction efforts on the bottom line will accelerate in the second half. This, combined with building sales momentum from our new cars and trucks and improved marketing, should enable us to continue to improve year-over-year results significantly." GM Europe posted adjusted earnings, excluding special items, of US$124 million for the quarter, an improvement of US$94 million compared with earnings of US$30 million in the second quarter of 2005. The improved earnings reflect favorable material costs and improvements in pricing. "Our European operations continue to gain momentum, posting a second consecutive profitable quarter, excluding special items," Wagoner said. "We are pleased with Saab's global market performance, posting a sales increase of 24% for the first half of the year, and the continued growth of the Chevrolet brand in Europe. We are also encouraged by the response to the new Opel/Vauxhall Corsa, unveiled at the recent London Motor Show and scheduled to arrive in showrooms this fall." On an adjusted basis, excluding special items, GM Asia Pacific posted earnings of US$167 million in the second quarter, down slightly from last year's earnings of US$183 million. The difference is more than accounted for by the loss of equity income from Suzuki following the reduction in GM's equity stake. Market share in the region increased to 6.7% in the second quarter of 2006, up from 6.2% during the second quarter of 2005, driven by strong sales in China. GM Latin America, Africa and Middle East posted adjusted earnings, excluding special items, of US$156 million, a significant increase of US$131 million compared with last year's second quarter results of US$25 million. This reflects an increase in volume and improved pricing. GMAC General Motors Acceptance Corporation reported record net income of US$898 million for the second quarter of 2006, up US$82 million from second quarter 2005 earnings of US$816 million. GMAC's mortgage business, ResCap, reported increased results, while the Automotive Finance and Insurance businesses reported lower earnings. "GMAC continues to perform well despite pressure on profit margins from rising interest rates," Wagoner said. "We remain on track to complete the sale of 51% of GMAC to a consortium of investors in the fourth quarter." GMAC's Automotive Finance operations reported earnings of US$251 million, down US$115 million from US$366 million earned in the second quarter of 2005. The decrease is due to a combination of continued margin pressures, lower remarketing results in the U.S. and Canada and higher consumer credit provisions, slightly offset by certain favorable non-U.S. tax rate changes and increases in investment income. ResCap earnings were US$547 million in the second quarter of 2006, up from the US$300 million earned in the year-ago period, due primarily to the US$259 million gain on sale of its equity investment in a regional homebuilder. Excluding the gain on sale, ResCap earnings declined slightly in comparison to the same period last year. Mortgage originations were US$47 billion for the second quarter, representing an increase from the US$42.6 billion in the second quarter of last year. GMAC's insurance operations generated net income of US$80 million for the quarter, down US$20 million from earnings of US$100 million in the second quarter of 2005, primarily due to a combination of lower capital gains and wholesale losses incurred in the quarter related to hail storms in the Midwest. In addition, GMAC's insurance operations maintained a strong investment portfolio, with a market value of US$7.7 billion on June 30, 2006, including after-tax net unrealized capital gains of US$545 million. GMAC provided a significant source of cash flow to GM through the payment of a US$1.4 billion dividend in the second quarter. GMAC continues to maintain adequate liquidity with cash reserve balances at June 30, 2006 of US$22.7 billion, including US$17.2 billion in cash and cash equivalents and US$5.5 billion invested in marketable securities. Cash and Liquidity GM continues to bolster its liquidity position, a key element to fund the North America turnaround plan. GM generated adjusted operating cash flow of US$700 million in the second quarter of 2006, a more than US$2 billion improvement versus the year-ago period. Cash, marketable securities, and readily-available assets of the Voluntary Employees' Beneficiary Association trust totaled US$22.9 billion on June 30, 2006, up from US$21.6 billion on March 31, 2006. About General Motors General Motors Corp. -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries including Mexico. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on June 30, 2006, Standard & Poor's Ratings Services held all its ratings on General Motors Corp. -- including the 'B' corporate credit rating and the 'B+' bank loan rating, but excluding the '1' recovery rating -- on CreditWatch with negative implications, where they were placed March 29, 2006. As reported in the Troubled Company Reporter on June 22, 2006, Fitch assigned 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. GWENT CHEMICAL: Brings In Joint Liquidators from Begbies Traynor ---------------------------------------------------------------- John Davies and David Hill of Begbies Traynor were appointed Joint Liquidators of Gwent Chemical & Industrial Supplies Limited after creditors decided to wind up the company during an extraordinary general meeting on April 26. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Gwent Chemical & Industrial Supplies Ltd. can be reached at: 29 Top Road Garndiffaith Pontypool Gwent NP4 7LS United Kingdom Tel: 01495 773 836 Fax: 01495 773 836 I.S.P. INT'L: Creditors Opt to Wind Up Company ---------------------------------------------- Creditors of I.S.P. International Spare Parts Limited opted to wind up the company after proving that the company could no longer continue its business due to liabilities. Jonathan Sinclair of Sinclair Harris was appointed Liquidator. The company can be reached at: I.S.P. International Spare Parts Limited 1 Hassop Road London NW2 6RX United Kingdom Tel: 020 8450 0488 Fax: 020 8208 2903 KITCHENKRAFT LIMITED: Taps Begbies Traynor as Administrators ------------------------------------------------------------ David Moore and Donald Bailey of Begbies Traynor were appointed joint administrators of Kitchenkraft (U.K.) Limited (Company Number 3548445) on June 27. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Kitchenkraft (U.K.) Limited can be reached at: Unit 1 Grange Road Bootle Merseyside L30 6TS United Kingdom Fax: 0151 523 3303 LANGREEN LTD: Creditors Resolve to Voluntary Liquidation ------------------------------------------------------- Creditors of Langreen Limited resolved to wind up the company voluntarily during an extraordinary general meeting on April 28. Peter Anthony Jackson of Jackson Gregory & Co. was appointed Liquidator. The company can be reached at: Langreen Limited 134 High Street Epping Essex CM16 4AG United Kingdom Tel: 01992 571213 LEEK DEVELOPMENTS: Hires Kroll as Joint Administrators ------------------------------------------------------ D. J. Whitehouse and P. Duffy of Kroll Limited were appointed joint administrators of Leek Developments Limited (Company Number 04638985) on June 23. 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. Headquartered in Cheshire, United Kingdom, Leek Developments Limited is engaged in development and sale of real estate. MAXIMUM SYSTEMS: Appoints Budsworth & Co. as Administrator ---------------------------------------------------------- Beverley Ellice Budsworth of Budsworth & Co. was appointed administrator of Maximum Systems Limited (Company Number 02583753) on June 22. The administrator can be contacted at: Budsworth & Co. 454 Chester Road Old Trafford Manchester Greater Manchester M16 9HD United Kingdom Tel: 0161 877 2081 Fax: 0161 877 2091 E-mail: advice@recoverypros.co.uk Headquartered in Blackburn, United Kingdom, Maximum Systems Limited is engaged in electrical sales and installation. MOTOR ZONE: Taps Louise Donna Baxter to Liquidate Assets -------------------------------------------------------- Louise Donna Baxter of Begbies Traynor was appointed Liquidator of Motor Zone (U.K.) Limited after creditors agreed to wind up the company on April 28. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Motor Zone (U.K.) Limited can be reached at: Elizabeth Way Essex CM195AJ United Kingdom Tel: 01279 443 232 NTL CABLE: Fitch Rates New US$550 Million Senior Notes at B ----------------------------------------------------------- Fitch Ratings assigned NTL Cable PLC's US$550 million 10-year senior notes a rating of B and a Recovery Rating of RR5. NTL Cable's existing senior notes are removed from Rating Watch Negative, and are downgraded to B in line with Fitch's guidance on July 13. At the same time Fitch has affirmed NTL Inc's Issuer Default rating at B+ with Stable Outlook and its Short-term rating at B. NTL Investment Holdings Limited's GBP5.275 billion senior secured credit facilities are affirmed at BB+ and Recovery Rating RR1. The NTL Cable PLC notes affected are: -- GBP375 million 9.75% senior notes due 2014: B/RR5; -- US$425 million 8.75% senior notes due 2014: B/RR5; -- EUR225 million 8.75% senior notes due 2014: B/RR5; and -- US$550 million 9.125% senior notes due 2016: B/RR5. The ratings of the NTL Cable notes reflect their structural subordination to creditors at the NTLIH level, and the quantum of debt ranking ahead of the notes. "The ratings of the bonds constitute a one notch differential from NTL's IDR B+, reflecting the limited recoveries suggested by our analysis," Stuart Reid, Director in Fitch's European TMT group disclosed. "The analysis takes a necessarily conservative view of the value of the business in a distress scenario. Nonetheless, Fitch recognizes the substantial scale and significant synergies of NTL's business, following the merger with Telewest and the subsequent acquisition of Virgin Mobile," Mr. Reid added. Fitch notes the "first loss" nature of the tranche C of the additional GBP300 million senior secured facilities. This tranche has a less complete security package than tranches A-B4, and in the event of security enforcement, will only be paid out after tranches A-B4, drawings under the revolving credit facility and all hedging liabilities have been repaid in full. In the event of a distress scenario Fitch assumes that the sale of the business as a going concern would realize greatest value for creditors. Fitch's recovery analysis assumes a discounted EBITDA of GBP1 billion and a distressed enterprise value multiple of 6.2x, generating an EV of GBP6.2 billion, less 10% administration expenses. On this basis Fitch would expect senior secured creditors to achieve recoveries of between 91-100%, corresponding to a RR1 Recovery Rating. The amount of debt ranking ahead of the senior notes however, implies more limited recoveries for the NTL Cable notes of 11-30%, correlating to a RR5 Recovery Rating. PIPE HOLDINGS: Moody's Confirms Low-B Ratings on Debt Issuance -------------------------------------------------------------- Moody's Investors Service confirmed the B1 Corporate Family Rating of Pipe Holdings 2 Limited, a holding company of Polypipe Building Products Ltd., the B1 rating of the GBP122 million Senior Secured Notes due 2011 issued by Pipe Holdings Plc as well as the B3 rating of the GBP66 million Senior Unsecured Notes due 2013 issued by Pipe Holdings Plc. The rating outlook is negative. The rating action concludes the review for possible downgrade initiated on May 8, following the announcement of a proposed GBP65 million debt issuance in the form of Payment-in-Kind notes due in 2016, at the holding company Pipe Holdings 1 Plc, the ultimate parent of Polypipe. The confirmation of Polypipe's existing ratings reflects Moody's expectation that the proposed PIK notes located at the holding company level of Pipe Holdings 1 Plc, which are not rated, will have only limited impacts for the creditors within the restricted group. Proceeds of the PIK Notes issuance, which are not rated, and existing cash resources have been used to repay the existing vendor loan of GPB39 million at Pipe Holding 2 Plc, to finance a GBP33.5 million reduction in shareholder loans at Pipe Holding 2 Plc and to cover fees and expenses. As a consequence of the repayments at the restricted group level, the holders of the PIK Notes hold an intercompany loan to Pipe Holdings 2 Ltd. of GBP74.5 million, resulting in a net increase of debt of GBP35.5 million, which is contractually subordinated to the existing debt at the restricted group level. While Moody's believes that this incremental debt of the restricted group is still commensurate with the B1 Corporate Family Rating, the negative outlook reflects -- the limited flexibility remaining in the capital structure at the current rating level; and also -- the cash pay interest option for the PIK notes. The cash pay interest option could potentially burden the cash generation ability of the restricted group. Although the restricted payment covenant on the senior debt limits the absolute outflow of potential cash interest paid, Moody's will monitor carefully with a view to ascertaining whether these interest payments are in line with the group's operating performance and ensure positive free cash flows on an ongoing basis. The current documentation incorporates the possibility of up to GBP100 million in PIK notes being issued by Pipe Holdings 1 Ltd. The negative outlook reflects the possibility of an increase of the current GBP65 million towards the full GBP100 million, which would likely put downward pressure on the rating. Polypipe's B1 corporate family rating is based on: -- its strong brand name recognition; -- the company's good positioning as the leading supplier of plastic pipe systems to U.K. independent builders' merchants, with an estimated market share of 50%; -- its reduced vulnerability to the cyclicality of the building and construction industry via a solid coverage of the Repair, Maintenance and Improvement segment; and -- the current industry approach of adjusting prices to reflect increases in raw material prices. The ratings also incorporate Polypipe's continued solid trend in operating performance in line with expectations, the progress it has achieved in improving this further, as reflected in the disposal of the underperforming Leisure division and the ongoing restructuring of the Bathroom and Kitchen Products division, as well as debt protection measures that position it in the B1 rating category. It also assumes that -- operating performance will remain stable given the company's reasonable market share in the U.K. and its strategy to refocus on core segments, -- debt-to-EBITDA will develop towards 4.5x, with RCF to Net debt above 10%, and -- the liquidity position will remain solid, supported by ongoing positive free cash flows. However, the ratings also reflect the following challenges: -- the company's exposure to the U.K. construction industry, which has started to experience a softening with respect to new housing builds; -- the volatility in raw material prices -- principally plastic polymers, such as polyvinylchloride (PVC), polyethylene (PE) and polypropylene (PP) -- which Polypipe may not be able to pass on to its customers; -- Moody's expectation of a further consolidation among U.K. building materials merchants, thus increasing customer purchasing power and potentially eroding margins; -- the competitive, concentrated mature markets in which the company operates, particularly in its core segments; and -- high financial leverage, as reflected in Total Debt (excluding Cash)/EBITDA of over 5x. The last rating action was taken on May 8, placing all ratings on review for possible downgrade. Outlook Actions: Issuer: Pipe Holdings 2 Ltd. -- Outlook, changed to negative from rating under review Issuer: Pipe Holdings plc -- Outlook, changed to negative from rating under review Confirmations: Issuer: Pipe Holdings 2 Ltd. -- Corporate Family Rating, confirmed at B1 Issuer: Pipe Holdings plc -- Senior Secured Regular Bond/Debenture, confirmed at B1; and -- Senior Unsecured Regular Bond/Debenture, confirmed at B3. Headquartered in Doncaster, South Yorkshire, Polypipe Building Products Ltd. manufactures a wide range of plastic pipe systems, predominantly for the U.K. construction market. Revenues for 2005 were GBP315.1 million PLASTIC & RUBBER: Hires Joint Liquidators from PKF LLP ------------------------------------------------------ Creditors of Plastic & Rubber Engineering Limited appointed Edward T. Kerr and Ian J. Gould of PKF (U.K.) LLP as Joint Liquidators on April 28. PKF (U.K.) LLP -- http://www.pkf.co.uk-- is one of the U.K.'s leading firms of accountants and business advisers, which specializes in advising the management of developing private and public businesses. Its principal services include assurance & advisory; corporate finance; corporate recovery & insolvency; forensic; management consultancy and taxation. It also offers financial services through its FSA authorized company, PKF Financial Planning Limited. Plastic & Rubber Engineering Limited can be reached at: 3 Mandervell Road Oadby Leicester LE2 5LQ United Kingdom Tel: 0116 271 0666 Fax: 0116 269 8883 RAMENCO LIMITED: Creditors' Meeting Slated for August 1 ------------------------------------------------------- Creditors of Ramenco (2001) Limited (Company Number 04280332) will meet at 12:00 noon on Aug. 1 at: DTE House Hollins Mount Bury BL9 8AT United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 1 at: J. M. Titley and A. Poxon Joint Administrators Dte Leonard Curtis DTE House Hollins Mount Bury BL9 8AT United Kingdom Tel: 0161 767 1200 Fax: 0161 767 1201 DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. SEA CONTAINERS: High Court Ruling on ORR Dispute Due Today ---------------------------------------------------------- Sea Containers Passenger Transport, a subsidiary of Sea Containers Ltd., faces uncertainty over its Great North Eastern Railway (GNER) operations as it awaits the outcome of a legal battle due to come out today, Douglas Friedli at the Scotsman reports. The GNER subsidiary is in the midst of a dispute with London's Office of the Rail Regulator over the government agency's decision allowing rival operators to run on the GNER line without paying similar charges as GNER. The firm claims that the regulator's recent move is discriminatory and has accused the agency of extending unlawful state aid to rivals, Grand Central and Hull Trains, Mr. Friedli reports. Sea Containers secured an extension of its franchise to run the GNER line, which links England and Scotland, for GBP1.3 billion last year. Bankruptcy Threat A company spokeswoman disclosed last week that Sea Containers is looking at various options for its GNER operations depending on the High Court's ruling on the ORR dispute. Reports have surfaced that Sea Containers could sell GNER for GBP200 million to ease its liquidity problems and avoid bankruptcy. Citing unnamed sources, AFX News reported that a Chapter 11 filing is Sea Containers' only alternative to the GNER sale. However, Sea Containers stands to lose its GNER franchise if it seeks bankruptcy protection. Sea Containers recently completed the sale of its Baltic ferry subsidiary Silja Oy Ab to Estonian ferry operator AS Tallink Grupp for a total consideration of approximately US$585 million. Proceeds from the sale will be used to pay approximately US$503 million of the Company's bank debt. About Sea Containers London-based Sea Containers -- http://www.seacontainers.com/-- engages in passenger and freight transport and marine container leasing. The Bermuda registered company is primarily owned by U.S. shareholders and its common shares have been listed on the New York Stock Exchange (SCRA and SCRB) since 1974. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. * * * In June 2006, Moody's Investors Service downgraded the senior unsecured ratings and confirmed the senior secured rating of Sea Containers -- Senior Unsecured to Caa3, Senior Secured at B3. Moody's said the outlook is negative. The downgrades were due to the increased probability of a payment default following Sea Containers' disclosure that it is unable to confirm whether it will pay the $115 million principal amount of 10-3/4% senior unsecured notes due October 2006. As reported in the Troubled Company Reporter on May 4, 2006, Standard & Poor's Ratings Services lowered its ratings on Sea Containers, including lowering the corporate credit rating to 'CCC-' from 'CCC+'. All ratings remain on CreditWatch with negative implications. The rating action followed the company's announcement that it is continuing to evaluate a range of strategic and financial alternatives, including the "appropriate level of debt capacity, with the intent to engage the public note holders and other stakeholders." SEA CONTAINERS: Christopher Garnett Steps Down as GNER CEO ---------------------------------------------------------- Sea Containers Ltd. disclosed that Christopher Garnett, Chief Executive Officer of GNER and Senior Vice President - Rail of Sea Containers, will be stepping down after 10 years with the Company. Mr. Garnett, 60, will leave the Company on Aug. 31. Bob MacKenzie, President and CEO of Sea Containers, will become Executive Chairman of GNER, supported by the other GNER directors. "After ten challenging and rewarding years helping to transform GNER into a company renowned for customer service, now is the right time to step down and hand over to others to lead the next stage in GNER's development," Mr. Garnett said. Commenting on Mr. Garnett's departure, Mr. MacKenzie said: "We thank Christopher for his sterling work building GNER into the first class train operating company which it is, and for his efforts and commitment to the company since 1996. Looking ahead, GNER does face a number of challenges, which in the current financial environment need urgent attention. I will be working with the GNER team to address these." About Sea Containers Headquartered in London, England, Sea Containers -- http://www.seacontainers.com/-- engages in passenger and freight transport and marine container leasing. The Bermuda registered company is primarily owned by U.S. shareholders and its common shares have been listed on the New York Stock Exchange (SCRA and SCRB) since 1974. * * * In June 2006, Moody's Investors Service downgraded the senior unsecured ratings and confirmed the senior secured rating of Sea Containers -- Senior Unsecured to Caa3, Senior Secured at B3. The outlook is negative. The downgrades were due to the increased probability of a payment default following Sea Containers' disclosure that it is unable to confirm whether it will pay the US$115 million principal amount of 10-3/4% senior unsecured notes due October 2006. As reported in the Troubled Company Reporter on May 4, 2006, Standard & Poor's Ratings Services lowered its ratings on Sea Containers, including lowering the corporate credit rating to 'CCC-' from 'CCC+'. All ratings remain on CreditWatch with negative implications. The rating action followed the company's announcement that it is continuing to evaluate a range of strategic and financial alternatives, including the "appropriate level of debt capacity, with the intent to engage the public note holders and other stakeholders." SGS SUPPLIES: Mounting Debts Prompt Voluntary Liquidation --------------------------------------------------------- Creditors of Specialist Vehicles Holdings Limited placed the company into voluntary liquidation due to liabilities on April 26. John W. Lewis and Terry C. Evans of J W Lewis Insolvency Services Ltd. were appointed Joint Liquidators. SGS Supplies Limited can be reached at: Unit 52 Station Road Workshops Station Road Kingswood Bristol BS154PJ United Kingdom Tel: 0117 956 0397 Fax: 0117 940 2713 SHL BUILDING: Peter Anthony Jackson Leads Liquidation Procedure --------------------------------------------------------------- Peter Anthony Jackson of Jackson Gregory & Co. was appointed Liquidator of SHL Building Services Limited after creditors resolved to wind up the company on April 27. The company can be reached at: SHL Building Services Limited 2 Daisy Avenue Bury Street Edmunds Suffolk IP32 7PH United Kingdom Tel: 01284 700564 SIMBOL LIMITED: Creditors' Meeting Slated for August 9 ------------------------------------------------------ Creditors of Simbol Limited (Company Number 03817491) will meet at 11:00 a.m. on Aug. 9 at: KPMG LLP Aquis Court 31 Fishpool Street St. Albans AL3 4RF United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 8 at: Allan Watson Graham and James Douglas Ernle Money Joint Administrators KPMG LLP Aquis Court 31 Fishpool Street, St. Albans AL3 4RF United Kingdom Tel: 0500 644665 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. SOLUTION FOOTWEAR: Creditors' Meeting Slated for August 9 --------------------------------------------------------- Creditors of Solution Footwear Limited (Company Number 03922179) will meet at 11:30 a.m. on Aug. 9 at: KPMG LLP Aquis Court 31 Fishpool Street St. Albans AL3 4RF United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 8 at: Richard James Philpott Joint Administrator KPMG LLP Park Row Nottingham NG1 6FQ United Kingdom Tel: 0500 644665 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. STANDARD BANK: Fitch Keeps Individual C Rating ---------------------------------------------- Fitch Ratings affirmed U.K.-based Standard Bank PLC's ratings at Issuer Default BBB+, Short-term F2, Individual C and Support 2. The Outlook remains Stable. At the same time Fitch is assigning a final Long-term rating of BBB to SB PLC's issue of US$200 million Step-Up Perpetual Subordinated Notes. The IDR, Short-term and Support ratings for SB PLC reflects the high probability of support from Standard International Holdings' parent, Standard Bank Group and its main operating entity The Standard Bank of South Africa. This is based on a strong statement of support in SBG's annual accounts, and the high level of integration between SIH, SB PLC and SBG. The Individual ratings reflect SB PLC's growing franchise in the wholesale, cross-border emerging market line of business, and sound risk management, while liquidity and capitalization are considered satisfactory. As a consequence of the emerging markets exposure, the potential for volatility exists and market risk is fairly high. The strategy to diversify by geography and critical mass has helped spread risks, although critical mass remains an issue in some areas. Standard International Holdings is the holding company (established in 1992) for the international investment banking activities of SBG and is regulated on a consolidated basis by the FSA in the U.K. In addition to SB PLC, other principal operating subsidiaries are located in Hong Kong, Brazil, Argentina, Russia, and the U.S. SIH has further subsidiaries in Malaysia, Turkey, and Singapore. SB PLC, in addition to having a branch in Dubai and being represented by a number of SIH's subsidiaries, has further representation in Australia, China, the Czech Republic, Iran, Italy, Mexico, and Peru. SIH specializes in emerging market and natural resource transactions and is managed on a group basis rather than as separate subsidiaries. TECHNIC WOOD: Hires Moore Stephens as Joint Administrators ---------------------------------------------------------- Mark Bowen and Nigel Price of Moore Stephens LLP were appointed joint administrators of Technic Wood Products Limited (Company Number 02153689) on June 20. Moore Stephens -- http://www.moorestephens.co.uk-- offers audit, business support, corporate finance, corporate recovery, dispute analysis, financial services, insurance broking, IT consultancy, pensions audit, risk advisory services, tax and trusts & estates services. Its U.K. network comprises over 1,400 partners and staff. Technic Wood Products Limited can be reached at: 3A-4 Unit Coedcae Lane Cambrian Industrial Estate West Side Pontyclun Mid Glamorgan CF72 9EX United Kingdom Tel: 01443 222 110 Fax: 01443 229 944 TSR PERFORMANCE: Names William Antony Batty as Administrator ------------------------------------------------------------ William Antony Batty of Antony Batty and Company was named administrator of Tsr Performance Team Limited (Company Number 04629408) on June 27. The administrator can be reached at: Antony Batty & Company 3 Field Court Gray's Inn London WC1R 5EF United Kingdom Tel: 020 7831 1234 Fax: 020 7430 2727 E-mail: antonybatty@hotmail.com TSR Performance Team Limited can be reached at: 16 Nichol Place Cotford St. Luke Taunton Somerset TA4 1JD United Kingdom Tel: 01278 453 036 Fax: 01278 444 525 WELDRICK DUGGAN: Appoints Joint Liquidators to Wind Up Business --------------------------------------------------------------- Matthew Colin Bowker and David Antony Willis of Jacksons Jolliffe Cork were appointed Joint Liquidators of Weldrick Duggan Limited after creditors passed a resolution to wind up the company on April 28. Jackson Jolliffe Cork -- http://www.jjcork.co.uk/-- was established in 1998. It has offices in Doncaster, Harrogate, Hull, Middlesbrough, Wakefield and York. The firm is engaged exclusively in business recovery and insolvency work and comprises certified and chartered accountants, licensed insolvency practitioners and business turnaround consultants, many having joined us from senior positions within National firms. Weldrick Duggan Limited can be reached at: Beevor Street Barnsley South Yorkshire S71 1HN United Kingdom Tel: 01226 242 414 Fax: 01226 298 451 Web: http://www.wdltd.co.uk/ ZAKA NAKA: Winds Up Business & Appoints Joint Liquidators --------------------------------------------------------- Zaka Naka Limited is liquidating its assets after creditors passed a resolution to wind up the company on April 27. P. Atkinson and Alpa Raja of Vantis Redhead French Limited were appointed Joint Liquidators. The company can be reached at: Zaka Naka Limited Hazlemere Road Penn High Wycombe Buckinghamshire HP108AA United Kingdom Tel: 01494 818 990 ********* 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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