/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060808.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, August 8, 2006, Vol. 7, No. 156 Headlines A U S T R I A ABC: Vienna Court Orders Closing of Business BAU & WOHNBERATUNG: Claims Registration Period Ends August 10 CHRISTIAN SCHWARZLER: Court Orders Closing of Business DANLIS: Creditors' Meeting Slated for August 10 ELEKTRO MOSER: Klagenfurt Court Orders Closing of Business FSE FUN: Claims Registration Period Ends August 29 GOESCHL: Creditors' Meeting Slated for August 23 HAUER BEST: Court Orders Closing of Business F I N L A N D M-REAL CORP: Weakening Liquidity Spurs S&P to Lower Rating to B+ F R A N C E EUROFACTOR: Fitch Keeps Individual Rating at C RHODIA SA: June 30 Balance Sheet Upside-Down by EUR448 Million G E R M A N Y ALBERT STEIGENBERGER: Claims Registration Ends August 29 APL PRELLE: Claims Registration Ends August 28 GOALS 2006-1: Moody's Rates EUR5-Mln Class D Notes at Ba3 HUWIN GRUNDBESITZVERWALTUNG: Claims Registration Ends August 28 IWKA AG: Expects First Half Loss After EUR50 Million Writedown J. KUEHHORN: Claims Registration Ends August 28 NEW ARMBRUST: Claims Registration Ends August 28 RANDERATH ELEKTRO: Claims Registration Ends August 31 SCHLOSSEREI HORST: Claims Registration Ends August 29 SCT RESEARCH: Claims Registration Ends August 29 STEREMAT INDUSTRIE: Creditors' Meeting Slated for August 30 TELE COLUMBUS: Subscriber Sale Prompts Moody's to Affirm Ratings TS CO.MIT: Moody's Assigns Low-B Ratings to Class E & F Notes VOLKSWAGEN AG: Porsche Backs Repeal of Veto Law WKI GMBH: Claims Registration Ends August 30 I R E L A N D BCM IRELAND: eircom Shareholders Accept US$8 Billion Offer BCM IRELAND: Moody's Assigns Low-B Ratings to Credit Facilities EIRCOM GROUP: Shareholders Accept BCMIH's US$8 Billion Offer I T A L Y CNH GLOBAL: S&P Raises Corporate Credit Rating to BB FIAT SPA: Debt Reduction Spurs S&P to Lift Credit Rating to BB LAZARD LTD: June 30 Balance Sheet Upside-Down By US$745 Million K A Z A K H S T A N AKSEPT ASTYK: Creditors Must File Claims by Sept. 5 INTEGRITY SYSTEMS: Creditors Must File Claims by Sept. 6 M-OIL MAXIMUM: Creditors Must File Claims by Sept. 5 MARK COMPANY: Proof of Claim Deadline Slated for Sept. 6 NEFTEPROMSNAB LTD: Proof of Claim Deadline Slated for Sept. 6 PROMTEHSERVIS: Creditors' Claims Due Sept. 6 TREID AGRO-SEVER: Creditors' Claims Due Sept. 6 URALAZAVTOSERVIS: Claims Registration Ends Sept. 6 VK AGROPROMENERGOSNAB: Claims Registration Ends Sept. 6 ZAVOD TEHNOLOGICHESKOGO: Claims Registration Ends Sept. 6 K Y R G Y Z S T A N DASTAN-6: Creditors Must File Claims by Sept. 13 L U X E M B O U R G COLT TELECOM: Debt Reduction Prompts S&P to Raise Rating to B THESEUS EUROPEAN: Moody's Rates EUR15-Mln Class E Notes at Ba2 L U X E M B O U R G NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares N E T H E R L A N D S GETRONICS NV: S&P Keeps Low-B & Junk Ratings on Watch Negative LEVERAGED FINANCE: S&P Rates EUR7.4-Mln Class V Notes at BB- NORTH WESTERLY: Moody's Assigns Ba2 Rating to Class E Notes R U S S I A ALAPAEVSKIY FACTORY: L. Korovnikova to Manage Assets BODAYBINSKAYA MINING: Court Starts Bankruptcy Supervision BOGDANOVICHSKIY PORCELAIN: K. Zelyutin to Manage Assets ENERGY: Court Names I. Morlang as Insolvency Manager FINNEFTEKOR: Court Names V. Gorbunov as Insolvency Manager INTERNATIONAL INDUSTRIAL: Moody's Rates US$100-Mln Notes at B1 LUKOIL: Inks Mutual Cooperation Pact with Algeria's Sonatrech LUKOIL: Sets Up Investment Center to Finance Plant Construction MINING EQUIPMENT: Court Names I. Morlang as Insolvency Manager OIL-INVEST: Court Names S. Semenov as Insolvency Manager RUSSIAN MORTGAGE: Fitch Affirms US$3.5-Mln Class C Notes at BB- SEROV-MEAT: Court Names T. Belousova as Insolvency Manager SIBERIAN TIMBER: Court Names V. Safonov as Insolvency Manager SOUTHERN TELECOM: Posts RUB1.05 Billion Net Losses in 2005 SOUTH TELECOM: Taps Alexander Dobryakov Deputy Director General * S&P Assigns B Long-Term Credit Rating to Omsk City T U R K E Y OYAK BANK: Fitch Keeps Foreign Currency Default Rating at BB- U K R A I N E ARTOR: Court Names Yaroslav Onushkanich as Insolvency Manager BUDINITSIATIVA: Court Names Vadim Bolejko as Liquidator BUDKOMPLEKT DONBAS: Court Names V. Piskurskij as Liquidator BUDRESURS-UKRAINA: Court Names Igor Kapelushnij as Liquidator FEODOSIYA' TOBACCO: Court Names T. Kushnir as Liquidator INFORM-PROMINVEST: Court Names Igor Kapelushnij as Liquidator ODESGOLOVPOSTACH: Court Names Kirilo Liseyev as Liquidator POLTAVHIMMASHBUD: Court Starts Bankruptcy Supervision RODINA: Court Names L. Demets as Insolvency Manager SANGO: Court Names Kozyatin' State Agency as Liquidator TOP STYLE: Donetsk Court Names S. Lunkova as Insolvency Manager TORGBUDMATERIALI: Court Names Kozyatin' Tax Agency as Liquidator UGOLINVEST: Donetsk Court Commences Bankruptcy Supervision VINNITSYA' FOOD: Court Names V. Bushanskij as Liquidator U N I T E D K I N G D O M BAKERS OF MAYFAIR: Names David Kaye as Administrator BLACK JACKET: Brings In Joint Liquidators from Ashcrofts BRITISH AIRWAYS: Earns GBP154 Million in First Quarter 2006 BRITISH AIRWAYS: Reports July 2006 Traffic & Capacity Results BUSINESS INFORMATION: Opts to Voluntary Liquidation C. J. PEARCE: Appoints Joint Administrators from SFP CASTLE LIMITED: Names David Hill as Administrator CHILTON INTERNATIONAL: Names Michael R. Ellingworth Liquidator COTT CORPORATION: Forms Two Business Units Under New Structure DIGITAL FIRST: Taps Chantrey Vellacott to Administer Assets EASTMAN KODAK: 2006 Second Quarter Loss Widens to US$282 Million EASYFLEET LIMITED: Appoints David Rubin as Joint Administrators GUS PLC: Asks Noteholders to Tender GBP350-Mln 5.625% Notes HUMANWORLD LIMITED: Taps Donald Bailey to Liquidate Assets KRONOS INT'L: Parent Posts US$13.6-Mln Net Income in 2nd Quarter LANSBOROUGH LTD.: Names G. D. Sharma as Administrator LAZARD LTD: June 30 Balance Sheet Upside-Down By US$745 Million LEWIS PLASTICS: Creditors Confirm Liquidator's Appointment NOVELIS INC: Obtains US$2.85-Bln Financing Pledge from Citigroup OAKTRAIL LIMITED: Creditors Confirm Voluntary Liquidation P & S ORGAN: Taps Marriotts LLP to Administer Assets R & N Motors: Hires Liquidator from Arrans REDPC LIMITED: Joint Liquidators Take Over Operations REFCO INC: US Trustee Restructures Official Creditors' Committee REFCO INC: Chapter 11 Trustee Hires Capstone as Advisor REFCO INC: Ch. 7 Trustee Can Reimburse US$749,579 to Refco Group RO-TECH ENGINEERING: Appoints Barry P. Knights as Liquidator SINGAPORE SAM: Appoints Begbies Traynor as Administrators SOUTHERN PACIFIC: S&P Places Low-B Ratings on Watch Positive STRAND LIGHTING: Brings In KPMG as Joint Administrators TELEVISION & DOMESTIC: Begins Liquidation Procedure WESTWOODS LIMITED: Taps Menzies to Administer Assets * Large Companies with Insolvent Balance Sheets ********* ============= A U S T R I A ============= ABC: Vienna Court Orders Closing of Business -------------------------------------------- The Trade Court of Vienna entered an order on June 20 closing the business of LLC ABC (FN 122875z). Court-appointed property manager Alexander Schoeller 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. Alexander Schoeller c/o Dr. Stephan Riel Reischachstrasse 3/12 A 1010 Vienna, Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 13 (Bankr. Case No. 2 S 99/06f). Stephen Riel represents Dr. Schoeller in the bankruptcy proceedings. BAU & WOHNBERATUNG: Claims Registration Period Ends August 10 ------------------------------------------------------------- Creditors owed money by LLC Bau & Wohnberatung (FN 139410s) have until Aug. 10 to file written proofs of claims to court- appointed property manager Eva Riess at: Dr. Eva Riess c/o Mag. Nikolaus Vogt Tent Lane 3/13 1080 Vienna, Austria Tel: 402 57 01-0 E-mail: law@riess.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Aug. 24 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna, Austria Headquartered in Vienna, Austria the Debtor declared bankruptcy on June 21 (Bankr. Case No. 2 S 103/06v). Nikolaus Vogt represents Dr. Riess in the bankruptcy proceedings. CHRISTIAN SCHWARZLER: Court Orders Closing of Business ------------------------------------------------------ The Land Court of St. Poelten entered an order on June 20 closing the business of LLC Christian Schwarzler Holzwerk (FN 194622i). Court-appointed property manager Gerhard Taufner determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Gerhard Taufner Bahnhofstrasse 5 3390 Melk Austria Tel: 02752/52466 Fax: 02752/52574 E-mail: rechtsanwalt.taufner@taufner.at Headquartered in Laimbach am Ostrong, Austria, the Debtor declared bankruptcy on May 8 (Bankr. Case No. 14 S 77/06y). DANLIS: Creditors' Meeting Slated for August 10 ----------------------------------------------- Creditors owed money by LLC Danlis (FN 221621p) are encouraged to attend the creditors' meeting at 10:00 a.m. on Aug. 10 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 21 (Bankr. Case 5 S 83/06z). Astrid A. Haider serves as the court-appointed property manager of the bankrupt estate. Ute Toifl represents Mag. Haider in the bankruptcy proceedings. The property manager can be reached at: Mag. Astrid A. Haider c/o Dr. Ute Toifl Tuchlauben 12/20 1010 Vienna, Austria Tel: 535 46 11 Fax: 535 46 11-11 E-mail: haider@thr.at ELEKTRO MOSER: Klagenfurt Court Orders Closing of Business ---------------------------------------------------------- The Land Court of Klagenfurt entered an order on June 20 closing the business of LLC Elektro Moser (FN 114958g). Court-appointed property manager Helmut Binder determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Helmut Binder Widmanngasse 43 9500 Villach, Austria Tel: 04242/22127 Fax: 04242/22127-25 E-mail: ra@kanzlei-binder.at Headquartered in Treffen bei Villach, Austria, the Debtor declared bankruptcy on June 13 (Bankr. Case No. 40 S 44/06w). FSE FUN: Claims Registration Period Ends August 29 -------------------------------------------------- Creditors owed money by LLC FSE Fun, Sport & Entertainment (FN 201346y) have until Aug. 29 to file written proofs of claims to court-appointed property manager Herbert Veit at: Dr. Herbert Veit Coulinstrasse 20 4020 Linz, Austria Tel: 65 05 24 Fax: 65 69 76 E-mail: dr.veit@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Sept. 12 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 21 (Bankr. Case No. 38 S 29/06b). GOESCHL: Creditors' Meeting Slated for August 23 ------------------------------------------------ Creditors owed money by LLC Goeschl (FN 36242y) are encouraged to attend the creditors' meeting at 8:30 a.m. on Aug. 23 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Krems an der Donau Hall A 2nd Floor Krems an der Donau, Austria Headquartered in Walkersdorf, Austria, the Debtor declared bankruptcy on June 21 (Bankr. Case 9 S 33/06k). Heinrich Nagl serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Heinrich Nagl Pfarrgasse 5 3580 Horn, Austria Tel: 02982/2278 Fax: 02982/4479 E-mail: dr.nagl.horn@aon.at HAUER BEST: Court Orders Closing of Business -------------------------------------------- The Land Court of Ried im Innkreis entered an order on June 20 closing the business of KEG Hauer Best Wohnbau (FN 114167v). Court-appointed property manager Petra Windhager determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Mag. Petra Windhager Tummelplatzstrasse 5 4780 Schaerding, Austria Tel: 07712 / 35 855 Fax: 07712 / 35 855-5 E-mail: office@kanzlei-windhager.at Headquartered in Taufkirchen an der Pram, Austria, the Debtor declared bankruptcy on May 31 (Bankr. Case No. 17 S 22/06a). ============= F I N L A N D ============= M-REAL CORP: Weakening Liquidity Spurs S&P to Lower Rating to B+ ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Finland-based forest products company M-real Corp. to 'B+' from 'BB-'. At the same time, the rating was removed from CreditWatch, where it had been placed with negative implications on June 30. The 'B' short-term corporate credit rating was affirmed. The outlook is negative. "The rating action reflects M-real's continued operating and financial underperformance, a negative revision of financial expectations, and a weakening liquidity position. Market conditions remain tough, with essentially flat prices, despite escalating input costs," said Standard & Poor's credit analyst Andreas Zsiga. The financial position is now expected to improve only modestly in the short to medium term. The liquidity headroom has reduced, and is bordering on vulnerable. This exposes the company's credit quality to further potential setbacks. Standard & Poor's will monitor the rating closely in view of the fragile operating environment stabilization and improvement. At June 30, M-real had total debt of EUR2.687 billion. Market conditions remain weak in key paper grades such as fine and magazine paper because of prevailing overcapacity, aggravated by the recent years' weak U.S. dollar exchange rates. Attempts to raise prices have been unsuccessful so far. Input costs for energy and chemicals remain high, and increasing pulp prices have added to margin pressure recently. Despite cost-cutting measures, M-real has not been able to protect margins and cash generation. Continued high capital expenditures, both for the Uruguay pulp mill project and elsewhere have contributed to increasing debt levels, further burdened by restructuring costs. Margins and cash flow are expected to improve somewhat in the short to medium term as result of further volume growth, some price increases, cost cutting, and, over time, reduced capital expenditures. "There is a risk that there will be no meaningful improvement in cash flow and debt protection. A further weakening of the liquidity position beyond current expectations will also put the ratings under pressure. Further negative rating actions could therefore occur in the near term," added Mr. Zsiga. "The outlook could be revised to stable, however, if there is an overall sustained improvement in the market environment and debt protection measures." Although it is unknown at this stage, the outcome of the ongoing strategic review could also impact the credit rating in the medium term. =========== F R A N C E =========== EUROFACTOR: Fitch Keeps Individual Rating at C ---------------------------------------------- Fitch Ratings upgraded Eurofactor's Issuer Default rating to AA from AA-. Eurofactor's Short-term, Individual and Support ratings are affirmed at F1+, C and 1 respectively. The Outlook on the IDR is Stable. Eurofactor's IDR is upgraded to align it with its parent's (Credit Agricole, rated AA) IDR to reflect the former's increased role as the factoring arm of CA and the strategic importance of this business for the group. CA merged Eurofactor and its own fully owned subsidiary specialized in factoring, Transfact on Oct. 7, 2005. The integration between the two entities has been completed and Eurofactor is now focusing on building up its links with its new strong shareholder. It will notably work on gaining market share in France, where CA enjoys a 35% market share on banking with SMEs, leaving strong growth potential for Eurofactor. So far, the regional banks of CA bring in 26% of Eurofactor's new business and Credit Lyonnais another 37%. In line with CA's strategy to develop specialized financial services in Europe, Eurofactor is also developing its business abroad to remain the largest factoring company in Europe. CA owns 100% of Eurofactor via its central body, Credit Agricole S.A. (rated F1+/AA). Eurofactor's Individual rating takes into account its strong franchise, satisfactory profitability and asset quality and solid capital ratios, but also its small size and credit risk concentration. Eurofactor offers the three traditional factoring services: debt securing, financing of invoices and management/collection of receivables. It is the largest factoring company in France, with a 23.5% market share. CA's other ratings are Short-term F1+, Individual B and Support 1. RHODIA SA: June 30 Balance Sheet Upside-Down by EUR448 Million -------------------------------------------------------------- Rhodia SA disclosed its financial results for the second quarter ended June 30, 2006. Rhodia reported that its net sales increased 4.5% to EUR1.321 billion in the second quarter 2006 from EUR1.264 billion a year earlier, primarily reflecting the impact of a 3.2% increase in prices. Rhodia reported consolidated net income of EUR78 million for the second quarter ended June 30, 2006, compared with a EUR196 million net loss for the same period in 2005. Operating performance improved, with recurring EBITDA up 18% at EUR188 million compared with EUR159 million in the second quarter 2005. Recurring EBITDA margin rose to 14.2%, illustrating the Group's ability to pass on price increases to offset the rise in the cost of raw materials. Operating profit grew strongly to EUR100 million from EUR35 million in the second quarter 2005. At June 30, 2006, the Company reported a consolidated EUR4.983 billion in total assets and EUR5.431 billion, resulting in a EUR448 million stockholders' deficit. Headquartered in Paris, France, Rhodia SA (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. Rhodia employs around 19,500 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. * * * Standard & Poor's Ratings Services raised, in July 2006, its long-term corporate credit rating on France-based chemical producer Rhodia S.A. to 'B+' from 'B'. At the same time, the 'B' short-term rating was affirmed and the rating on senior unsecured and subordinated bonds was raised to 'B-' from 'CCC+'. S&P said the outlook is stable. ============= G E R M A N Y ============= ALBERT STEIGENBERGER: Claims Registration Ends August 29 -------------------------------------------------------- Creditors of Albert Steigenberger Grundbesitz Aktiengesellschaft have until Aug. 29 to register their claims with court-appointed provisional administrator Biner Bahr. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 19 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Area A 409 4th Floor Muehlenstrasse 34 40213 Duesseldorf, 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 Duesseldorf opened bankruptcy proceedings against Albert Steigenberger Grundbesitz AG on July 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Albert Steigenberger Grundbesitz AG Uerdinger Str. 5 40474 Duesseldorf, Germany Attn: Werner Pehlemann, Manager Sanddornstr. 79 47269 Duisburg, Germany Marco Busch and Albert Steigenberger, Managers Bachstr. 7 99444 Blankenhain, Germany The administrator can be contacted at: Dr. Biner Bahr Jagerhofstrasse 21-22 40479 Duesseldorf, Germany APL PRELLE: Claims Registration Ends August 28 ---------------------------------------------- Creditors of APL Prelle GmbH have until Aug. 28 to register their claims with court-appointed provisional administrator Karsten Toetter. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Luebeck Hall E3 Castle Field 7 23568 Luebeck, 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 Luebeck opened bankruptcy proceedings against APL Prelle GmbH on July 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: APL Prelle GmbH Attn: Andreas Prelle, Manager Schwartauer Avenue 138 23554 Luebeck, Germany The administrator can be contacted at: Karsten Toetter Speersort 4 - 6 20095 Hamburg, Germany GOALS 2006-1: Moody's Rates EUR5-Mln Class D Notes at Ba3 --------------------------------------------------------- Moody's Investors Service assigned these definitive ratings to four classes of asset-backed notes to be issued by GOALS 2006-1 Limited: -- EUR215.5 million Class A Floating Rate Notes due 2014: Aaa; -- EUR20 million Class B Floating Rate Notes due 2014: Aa1; -- EUR12.5 million Class C Floating Rate Notes due 2014: Baa1; and -- EUR5 million Class D Floating Rate Notes due 2014: Ba3. This is the first term and public securitization of equipment lease receivables by the Germany based originator GRENKELEASING AG. The Baden-Baden domiciled company is listed on the Frankfurt stock exchange and is specialized in IT and office equipment leasing. The issuer will apply the proceeds from the issue of four classes of notes to pay the purchase price for the acquisition of a static, amortizing pool of lease receivables under a receivables purchase agreement between the issuer and the seller. According to Moody's, the ratings of the notes are based, inter alia, on these factors: -- the simple structure with static pool; -- the pool consisting only of fully amortizing lease contracts, but no residual value risk; -- the high level of diversity by lessees and region; -- the detailed and high quality historical information available; -- the servicer's experience with securitization (already financed by three ABCP conduits); and -- the extremely limited commingling risk as regular collections go directly into the account of the issuer. The ratings address the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal with respect to the Notes by the legal final maturity. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. The provisional ratings were assigned on July 6. HUWIN GRUNDBESITZVERWALTUNG: Claims Registration Ends August 28 --------------------------------------------------------------- Creditors of HUWIN Grundbesitzverwaltung GmbH have until Aug. 28 to register their claims with court-appointed provisional administrator Joachim Klein II. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Sept. 28 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 1240 12th Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against HUWIN Grundbesitzverwaltung GmbH on July 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: HUWIN Grundbesitzverwaltung GmbH Attn: Ursula Dahl-Bettermann, Manager Schlosspark 9 51429 Bergisch Gladbach, Germany The administrator can be contacted at: Joachim Klein II Hansaring 79 - 81 50670 Cologne, Germany IWKA AG: Expects First Half Loss After EUR50 Million Writedown -------------------------------------------------------------- (JazeL/CPR) IWKA AG will post a substantial loss in the first half of 2006 after a valuation adjustment of over EUR50 million as a result of its restructuring efforts. Companies that do not meet the targeted return on investment targets were reclassified as discontinued operations effective June 30, 2006, and will be sold. The aforementioned valuation adjustments will result from the planned sales of: (1) AROSchweisszangen-Group (Automotive Division); (2) GSN Maschinen-Anlagen-Service GmbH (Automotive); (3) HASSIA-Redatron GmbH (Packaging); and (4) the Boehringer Group, which is already part of discontinued operations. On the other hand, comparable operating earnings generated by continuing operations for the first six months of this fiscal year improved significantly as projected. The same applies to cash flow. The interim report to June 30, 2006, will be released today. Dieter Schafer, the manager responsible for the packaging division, will leave the company's Executive Board at the end of the month. Chief Executive Wolfgang-Dietrich Hein will take on Mr. Schafer's duties. Wyser-Pratte Management Company, which currently owns 8% of IWKA's outstanding shares, reveals its support to the ongoing portfolio sharpening and executive changes at IWKA. Wyser- Pratte said it looks forward to an acceleration and the completion of these efforts. About the Company Headquartered in Karlsruhe, Germany, IWKA AG -- http://www.iwka.de/-- is among the world's leading systems partners to the automobile industry and the consumer goods industries. Some 80 consolidated companies operate closely with one another under the umbrella of the IWKA Management Holding Company to provide top performance: in technology, products and service. J. KUEHHORN: Claims Registration Ends August 28 ----------------------------------------------- Creditors of J. Kuehhorn Holz-Markt GmbH have until Aug. 28 to register their claims with court-appointed provisional administrator Peter Engelmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 28 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 Fuerth Room 3 Ground Floor Office Building Baumenstrasse 32 Fuerth, 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 Fuerth opened bankruptcy proceedings against J. Kuehhorn Holz-Markt GmbH on June 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: J. Kuehhorn Holz-Markt GmbH Bahnhofstr. 8a 91315 Hoechstadt/Aisch, Germany The administrator can be contacted at: Peter Engelmann Archives Route 3 90408 Nuernberg, Germany Tel: 0911/5978122 Fax: 0911/5978144 NEW ARMBRUST: Claims Registration Ends August 28 ------------------------------------------------ Creditors of NEW Armbrust GmbH Elektro- & Datennetzwerktechnik have until Aug. 28 to register their claims with court-appointed provisional administrator Egon Trockel. Creditors and other interested parties are encouraged to attend the meeting at 1:10 p.m. on Sept. 14 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 Essen Hall 293 2nd Floor Principal Establishment Gelber Bereich Zweigertstr. 52 45130 Essen, 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 Essen opened bankruptcy proceedings against NEW Armbrust GmbH Elektro- & Datennetzwerktechnik on July 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: NEW Armbrust GmbH Elektro- & Datennetzwerktechnik Lichtbogen 42 45141 Essen, Germany Attn: Jose Garcia Fernandez, Manager Kappertsiepen 22 45309 Essen, Germany The administrator can be contacted at: Egon Trockel Zweigertstrasse 43 45130 Essen, Germany Tel: (0201) 793613 RANDERATH ELEKTRO: Claims Registration Ends August 31 ----------------------------------------------------- Creditors of Randerath Elektro B.V. have until Aug. 31 to register their claims with court-appointed provisional administrator Frank Kebekus. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on Sept. 26 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Aachen Meeting Room K 3 3rd Floor Alter Posthof 1 52062 Aachen, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Aachen opened bankruptcy proceedings against Randerath Elektro B.V.on July 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Randerath Elektro B.V. Attn: Angelo Elisabeth Hendrik Geurts, Manager Oberbrucher Str. 2 52525 Heinsberg, Germany The administrator can be contacted at: Dr. Frank Kebekus Franconia Route 14-16 52070 Aachen, Germany SCHLOSSEREI HORST: Claims Registration Ends August 29 ----------------------------------------------------- Creditors of Schlosserei Horst Barthel GmbH have until Aug. 29 to register their claims with court-appointed provisional administrator Peter Jost. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 28 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 Frankfurt/Main Hall 2 Building F Klingerstrasse 20 60313 Frankfurt/Main, 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 Frankfurt/Main opened bankruptcy proceedings against Schlosserei Horst Barthel GmbH on June 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Schlosserei Horst Barthel GmbH Attn: Horst Barthel, Manager Electron Route 39 65933 Frankfurt/Main, Germany The administrator can be contacted at: Peter Jost Pfingstweidstrasse 3 D-60316 Frankfurt/Main, Germany Tel: 069/209739-0 Fax: 069/20973929 SCT RESEARCH: Claims Registration Ends August 29 ------------------------------------------------ Creditors of SCT Research & Consulting GmbH have until Aug. 29 to register their claims with court-appointed provisional administrator Karl-Dieter Sommerfeld. Creditors and other interested parties are encouraged to attend the meeting at 11:08 a.m. on Sept. 29 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 1240 12th Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against SCT Research & Consulting GmbH on July 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SCT Research & Consulting GmbH Attn: Udo Stadelmann Leverkusen, Manager Gartenstr. 4 51519 Odenthal, Germany The administrator can be contacted at: Karl-Dieter Sommerfeld Hammerweg 3 51766 Engelskirchen, Germany STEREMAT INDUSTRIE: Creditors' Meeting Slated for August 30 ----------------------------------------------------------- The court-appointed provisional administrator for Steremat Industrie AG, Bjoern Gehde, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:20 a.m. on Aug. 30. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on Dec. 6 at the same venue. Creditors have until Oct. 11 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Steremat Industrie AG on July 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Steremat Industrie Aktiengesellschaft Bouchestr. 12 12435 Berlin, Germany The administrator can be reached at: Dr. Bjoern Gehde Goethestr. 85 10623 Berlin, Germany TELE COLUMBUS: Subscriber Sale Prompts Moody's to Affirm Ratings ---------------------------------------------------------------- Moody's Investors Service affirmed the ratings of Tele Columbus GmbH & Co. KG, formerly Tele Columbus AG & Co. KG, following the company's announcement to sell over 400,000 subscribers in Baden-Wurttemberg to Kabel BW Holding GmbH. Ratings affirmed: -- Corporate family rating at B1; -- Senior secured bank facility due 2009 at Ba3; -- EUR245 million senior floating rating note due 2010 at B1; and -- EUR230 million senior subordinated note due 2012 at B3. The proceeds will be used to repay the outstanding amount under the revolving facility. The available amount under the facility is being downsized to EUR85 million from the current EUR100 million to reflect the approximate proportionate loss in EBITDA to Tele Columbus from the sale. The remainder of the cash proceeds will be held at Tele Columbus. Moody's notes that the subscriber sale, although resulting in an immediate reduction in an absolute debt level and an increase in cash, dilutes the company's value attributable to the bondholders. However, the ratings affirmation relies on the indication by the management of Unity Media GmbH, the company's shareholder, to use the proceeds to further de-leverage Tele Columbus. Furthermore, Moody's notes the flexibility under the terms and conditions of Tele Columbus' financing agreements, which allow a fairly broad use of proceeds from asset sales. The affirmation of the ratings does not assume the use of this flexibility. Moody's also understands that Unity Media will seek to continue to rationalise Tele Columbus assets. At this stage, the rating agency assumes that any further proceeds from asset sales will be used for the company's de-leveraging. Headquartered in Germany, Tele Columbus is the largest Level 4 cable television provider. In Q1 2006, the company generated EUR67.6 million in revenue. TS CO.MIT: Moody's Assigns Low-B Ratings to Class E & F Notes ------------------------------------------------------------- Moody's assigned definitive ratings to six classes of Notes issued by TS Co.mit One GmbH: -- EUR446,300,000 Class A Floating Rate Asset Backed Notes: Aaa; -- EUR15,000,000 Class B Floating Rate Asset Backed Notes: Aa2; -- EUR13,900,000 Class C Floating Rate Asset Backed Notes: A2; -- EUR10,200,000 Class D Floating Rate Asset Backed Notes: Baa1 -- EUR11,300,000 Class E Floating Rate Asset Backed Notes: Ba1; and -- EUR6,300,000 Class F Floating Rate Asset Backed Notes: B1. The ratings address the expected loss posed to investors by the legal final maturity in June 2013. This transaction is a cash flow CLO representing the securitisation of 396 loan receivables under 'Schuldschein' loan agreements to 372 German small and medium sized companies. The deal was structured and launched by Commerzbank AG. Such loan receivables are governed by German law and denominated in EUR. Repayment is provided for either in fixed quarterly installments or in one single amount at maturity. Fixed interest payments are made quarterly in arrears. For each receivable the relevant debtor has agreed to comply with certain financial covenants like equity, debt-to-equity or debt coverage ratio. The loan receivables generally are not secured by any collateral. In case insolvency proceedings are opened against a debtor, the issuer therefore will rank just pari passu to other senior unsecured creditors of such debtor. Moody's utilized a cash flow model in order to determine the losses of each class of notes under various default scenarios. Instead of assuming that the portfolio default probability distribution follows a given general density law, Moody's modeled the default behavior of the portfolio via the Monte Carlo simulation embedded in its CDOROM model. Basic parameters needed to be assessed as main inputs for the model were the default probability of each single debtor, and the correlation structure among the different debtors i.e. intra- and inter-industry correlation, respectively. In order to assess the default probability of each debtor, Commerzbank's internal ratings were translated into the Moody's rating scale by applying a mapping table. As regards the correlation structure, Moody's assumed an average intra-industry asset correlation per industry in the mid teens and an average inter-industry asset correlation of around 4%. Eventually, the Moody's CDOROM model was run to obtain the default date and the recovery rate of each defaulted loan in a given simulation run. VOLKSWAGEN AG: Porsche Backs Repeal of Veto Law ----------------------------------------------- Sportscar maker Porsche AG supports the abolition of a German law that prevents a takeover of Volkswagen AG, Chad Thomas writes for Bloomberg News. The European Commission has filed for proceedings at the European Court of Justice in March 2005 seeking the repeal of the so-called VW Law that gives veto rights to the German state of Lower Saxony, which owns 20.75% stake in the carmaker. The law, which dates back to 1960, caps voting rights at 20% regardless of the shareholding size. The VW Law likewise gives 20%-stake investors the power to veto major decisions like factory closings and capital hike. Porsche currently wants to raise its 21.28%-stake in VW to 25.1%. According to Bloomberg News, if the law is abolished, an investor needs to hold at least 25% of the stock to gain blocking authority, which means Porsche would retain its veto power while Lower Saxony loses its own. "We want to be able to fully exercise our rights as a shareholder," Albrecht Bamler, a spokesman for Porsche, told Blomberg. Mr. Bamler added that the company is mulling whether to contact the Commission's lawyers handling the case and ask for a speedy decision. Lower Saxony, however, is optimistic of getting a favorable ruling from the court. "We are confident that the German government, as the defendant in the case, has the more convincing arguments and that the VW Law is legal and complies with EU law," Matthias Sickert, a Lower Saxony spokesman, told Bloomberg. The EJC might rule on the case later next year, as it is unlikely to set a hearing until September, Bloomberg reports citing Christopher Fretwell as saying. Mr. Fretwell, however, noted that a ruling might come earlier if a hearing was held this fall. "I totally disagree with the Lower Saxony assessment," Daniel Broby, chief investment officer at Bankinvest Holding A/S, which manages 16,800 Porsche shares, told Bloomberg. "Government has no place in the auto industry and I hope the European Court of Justice agrees." About Porsche Headquartered in Stuttgart, Germany, Dr. Ing. h.c. F. Porsche AG -- http://www.porsche.com/-- designs and manufactures cars. It currently has four model lines for its lineup: the Boxster, the 911 models, the Cayenne SUV, and the new Cayman S two-seater coupe. Porsche offers consulting services to other companies involved in auto and furniture manufacturing, mechanical and electronic engineering, and construction. About Volkswagen Headquartered in Wolfsburg, Germany, the Volkswagen AG -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in 11 European countries and a further seven countries in the Americas, Asia and Africa, Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle-related services on every working day. * * * Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by Chief Executive Bernd Pischetsrieder and Volkswagen brand head, Wolfgang Bernhard. In November 2005, Volkswagen maintained its 2005 earnings guidance amid rumors it may lower targets. The company predicts a year-on-year improvement in both operating profit after special items and profit before tax this year. Rumors flew that the company would slash full-year earnings forecast due to higher restructuring costs. The company said the impact of its workforce reduction measures, which will be charged as special items in the fourth quarter, will be lower than last year's. The company also admitted there were no significant improvements in the economic environment in the first nine months of 2005, and the overall situation in the important automotive markets remained difficult. It also expected tougher competition in the Chinese and U.S. markets, and the rise in fuel prices to influence consumer confidence. As reported in TCR-Europe on July 18, VW has scheduled 4,000 to 6,000 job layoffs in its Brazilian plants through 2008. It has five factories in Brazil with about 21,000 workers. WKI GMBH: Claims Registration Ends August 30 -------------------------------------------- Creditors of WKI GmbH Warme, Kalte, Industriemontage have until Aug. 30 to register their claims with court-appointed provisional administrator Christian Adolf. Creditors and other interested parties are encouraged to attend the meeting at 1:05 p.m. on Sept. 26 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hof Meeting Room 012 Ground Floor Berliner Place 1 95030 Hof, 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 Hof opened bankruptcy proceedings against WKI GmbH Warme, Kalte, Industriemontage on June 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: WKI GmbH Warme, Kalte, Industriemontage Keyserstr. 55 95179 Geroldsgruen, Germany The administrator can be contacted at: Christian Adolf Ludwigstr. 50 95028 Hof, Germany Tel: 09281/8331080 Fax: 09281/8331089 ============= I R E L A N D ============= BCM IRELAND: eircom Shareholders Accept US$8 Billion Offer ---------------------------------------------------------- Shareholders of eircom Group PLC have voted to accept the US$8 billion offer of BCM Ireland Holdings Limited for the issued share capital in eircom at a Court Meeting and an associated Extraordinary General Meeting of eircom shareholders on July 26. The offer for the acquisition of the issued capital in eircom is through a scheme of arrangement under section 425 of the United Kingdom Companies Act. The final Court Hearing to approve the Scheme is expected on Aug. 17 and effective date of the Scheme is expected on Aug. 18. Under the terms of the Cash Offer, eircom's ordinary shareholders will receive EUR2.20 in cash for each eircom Group PLC Ordinary Share held. Once approved by the Court, all of eircom's ordinary shares will be delisted from the Official Lists of the U.K. Listing Authority and the Irish Stock Exchange. "The vote to accept the Offer by eircom shareholders is a significant milestone in our US$8 billion offer for all the issued share capital in eircom," Rob Topfer, Executive Director of BCM disclosed. "We expect our strategy will deliver significant benefits to the people of Ireland looking to maintain a competitive edge against European counterparts," Mr. Topfer added. "We welcome the approval by eircom shareholders to move forward with the offer, which remains subject to the receipt of Court approval which is expected on or about the 17th August. BCMIH is a committed long term shareholder and we look forward to working with the management team of eircom, to build on the existing business platform by embracing new products, being highly customer focused and investing in its network infrastructure," Pierre Danon, a Director of BCMIH expressed. About Eircom Group PLC Headquartered in Dublin, Ireland, eircom Group PLC -- http://eircom.net/-- is the principal provider of fixed-line telecommunications services in Ireland, as well as the leading Internet service provider and, following its acquisition of Meteor, the third largest mobile operator in Ireland. * * * As reported in TCR-Europe on Aug 07, Moody's Investors Service downgraded the Corporate Family Rating of eircom Group plc to Ba3 from Ba2. Moody's also downgraded the rating of Valentia Telecommunications Unlimited's EUR550 million unsecured notes due 2013 to B2 from Ba3 and the rating of eircom Funding plc's EUR285 million and US$250 million senior subordinated notes due 2013 to B2 from B1. Moody's Investors Service assigned a Ba2 corporate family rating to eircom Group plc. Concurrently Moody's changed the rating outlook to negative from stable. As reported in TCR-Europe on Aug. 2, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Valentia Telecommunications upc to 'BB-' from 'BB+'. * * * As reported in TCR-Europe on Aug. 2, Standard & Poor's assigned its 'BB-' long-term corporate credit rating to BCM Ireland Holdings Limited, the future owner of eircom and its parent company BCM Ireland Finance Ltd. The EUR3.3 billion senior secured facilities borrowed by BCMIH have been assigned a 'BB-' rating, the same as the corporate credit rating, with a recovery rating of '2', indicating Standard & Poor's expectation of substantial recovery of principal (80%-100%) for senior lenders in the event of a payment default. BCM IRELAND: Moody's Assigns Low-B Ratings to Credit Facilities --------------------------------------------------------------- Moody's Investors Service assigned provisional ratings to the proposed borrowings of BCM Ireland Holdings Limited and BCM Ireland Finance Ltd. in the context of the leveraged buy-out of eircom Group plc. Concurrently, Moody's assigned a provisional(P)Ba3 Corporate Family Rating to BCM Ireland Finance Ltd. and withdrew the Ba3 CFR of eircom Group plc. Ratings assigned: BCM Ireland Finance Limited -- Corporate Family Rating: (P)Ba3; and -- Senior unsecured notes due 2016: (P)B2. BCM Ireland Holdings Limited -- Senior secured credit facilities: (P)Ba3; and -- Second-lien loan: (P)B2. The assigned provisional ratings assume there will be no material variations to the draft legal documentation reviewed by Moody's and assume that these agreements are legally valid, binding and enforceable. Upon a conclusive review of the final documentation, Moody's will endeavor to assign definitive ratings. A definitive rating may differ from a provisional rating. The rating outlook is stable. The ratings for the newly rated instruments are derived from BCMIF's (P)Ba3 CFR, which reflects the combination of: -- eircom's high initial leverage following its leveraged buy-out by a group of financial investors; -- ongoing regulatory and competitive risks; -- uncertainty regarding the company's longer-term plans for mobile telephony; and -- eircom's dependence on the fixed-line telecommunications business. Eircom's high initial leverage and very limited financial flexibility reflect the weak positioning of the CFR at the Ba3 level. However, despite these significant challenges, the ratings are underpinned by: -- eircom's strong position in the Irish fixed-line telecommunications market and the competitive advantage afforded by the company's significant scale and network reach; -- the growth potential of the recently acquired mobile operations; -- the strong operational cash flow provided by eircom's businesses; -- a favorable competitive fixed-line environment; and -- the success in reducing costs and improving cash flow. In addition, eircom benefits from the current strength of the Irish economy and its favorable demographics, such as: -- population growth, -- net immigration and housing growth, and -- low average age of the population. The (P)Ba3 rating of the senior secured bank facilities reflects their strong covenant and collateral package and assumes that security enforcement would not be hindered by any regulatory/licence issues. The senior unsecured notes have been rated (P)B2, reflecting their contractually and structurally subordinated position relative to the senior secured bank facilities. The (P)B2 rating of the EUR350 million second-lien tranche reflects the high initial leverage and the substantial amount of secured bank debt that effectively ranks senior to the second- lien tranche creditors which potentially limits the amount of residual collateral value available to the second-lien debt holders in a recovery scenario. Proceeds from the newly issued bank and bond debt will be used to redeem all of eircom's net financial debt, including the EUR1.4 billion senior secured credit facilities, the EUR550 million 7.25% senior notes due 2013 issued by Valentia Telecommunications Unlimited and the EUR285 million 8.25% senior subordinated notes due 2013 and the US$250 million 8.25% senior subordinated notes due 2013 issued by eircom Funding plc. BCM Ireland Finance Limited is a holding company of eircom, the principal provider of fixed-line telecommunications services in Ireland and, following its acquisition of Meteor, the third largest mobile operator in Ireland. In the last twelve months ending March 31, 2006, eircom generated revenues of EUR1.7 billion. EIRCOM GROUP: Shareholders Accept BCMIH's US$8 Billion Offer ------------------------------------------------------------ Shareholders of eircom Group PLC have voted to accept the US$8 billion offer of BCM Ireland Holdings Limited for the issued share capital in eircom at a Court Meeting and an associated Extraordinary General Meeting of eircom shareholders on July 26. The offer for the acquisition of the issued capital in eircom is through a scheme of arrangement under section 425 of the United Kingdom Companies Act. The final Court Hearing to approve the Scheme is expected on Aug. 17 and effective date of the Scheme is expected on Aug. 18. Under the terms of the Cash Offer, eircom's ordinary shareholders will receive EUR2.20 in cash for each eircom Group PLC Ordinary Share held. Once approved by the Court, all of eircom's ordinary shares will be delisted from the Official Lists of the U.K. Listing Authority and the Irish Stock Exchange. "The vote to accept the Offer by eircom shareholders is a significant milestone in our US$8 billion offer for all the issued share capital in eircom," Rob Topfer, Executive Director of BCM disclosed. "We expect our strategy will deliver significant benefits to the people of Ireland looking to maintain a competitive edge against European counterparts," Mr. Topfer added. "We welcome the approval by eircom shareholders to move forward with the offer, which remains subject to the receipt of Court approval which is expected on or about the 17th August. BCMIH is a committed long term shareholder and we look forward to working with the management team of eircom, to build on the existing business platform by embracing new products, being highly customer focused and investing in its network infrastructure," Pierre Danon, a Director of BCMIH expressed. About Eircom Group PLC Headquartered in Dublin, Ireland, eircom Group PLC -- http://eircom.net/-- is the principal provider of fixed-line telecommunications services in Ireland, as well as the leading Internet service provider and, following its acquisition of Meteor, the third largest mobile operator in Ireland. * * * As reported in TCR-Europe on Aug 07, Moody's Investors Service downgraded the Corporate Family Rating of eircom Group plc to Ba3 from Ba2. Moody's also downgraded the rating of Valentia Telecommunications Unlimited's EUR550 million unsecured notes due 2013 to B2 from Ba3 and the rating of eircom Funding plc's EUR285 million and US$250 million senior subordinated notes due 2013 to B2 from B1. Moody's Investors Service assigned a Ba2 corporate family rating to eircom Group plc. Concurrently Moody's changed the rating outlook to negative from stable. As reported in TCR-Europe on Aug. 2, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Valentia Telecommunications upc to 'BB-' from 'BB+'. * * * As reported in TCR-Europe on Aug. 2, Standard & Poor's assigned its 'BB-' long-term corporate credit rating to BCM Ireland Holdings Limited, the future owner of eircom and its parent company BCM Ireland Finance Ltd. The EUR3.3 billion senior secured facilities borrowed by BCMIH have been assigned a 'BB-' rating, the same as the corporate credit rating, with a recovery rating of '2', indicating Standard & Poor's expectation of substantial recovery of principal (80%-100%) for senior lenders in the event of a payment default. ========= I T A L Y ========= CNH GLOBAL: S&P Raises Corporate Credit Rating to BB ---------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on agricultural equipment maker CNH Global N.V. and related entities to 'BB' from 'BB-' following the same rating action taken by Standard & Poor's on CNH's parent company, Italy-based Fiat SpA. The outlook is stable. The corporate credit rating and outlook on publicly traded CNH are the same as those of the parent company, auto and truck manufacturer Fiat, because of the close ties between the two entities. Fiat views CNH as a core business, and continues to provide strong liquidity support to CNH in the way of intercompany loans and bank loan guarantees. Fiat also has an approximate 90% equity ownership stake in CNH. At June 30, 2006, CNH had US$617 million of cash deposited with Fiat affiliates' cash management pools. CNH also had US$571 million of intercompany borrowings with Fiat affiliates. The outlook could be changed to positive in the near term if the trading profits of Fiat Auto continue to grow and free cash flows continue to improve. In addition, CNH's earnings and cash flows are expected to continue strengthen modestly during the next year because of reasonably favorable business conditions and the benefits of the company's cost-reduction programs. FIAT SPA: Debt Reduction Spurs S&P to Lift Credit Rating to BB -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Italian industrial group Fiat S.p.A. to 'BB' from 'BB-'. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Fiat. The outlook is stable. "The upgrade reflects Fiat's strong debt reduction achievements, positive trends in the auto sector, and improvements in the group's profitability and cash generation," said Standard & Poor's credit analyst Nicolas Baudouin. First-half 2006 results confirmed the strong recovery of Fiat Auto and solid performances by CNH Global N.V. and Iveco. Trading profit for the 12 months ended June 30, 2006, reached EUR1.6 billion, a marked improvement from the ?1.0 billion achieved in 2005. The group reported first-half trading profit of EUR982 million, with a EUR183 million contribution from the auto sector. This constituted the third consecutive quarter of positive operating results for the automotive division. Standard & Poor's expects this trend to continue in the coming quarters. The other sectors of the group--agricultural equipment and trucks--showed positive operating performances with trading margins, respectively, of 7.2% and 5.3%. The group's financial profile had already dramatically improved in the second half of 2005. Net industrial debt declined from EUR9.2 billion at June 30, 2005, to EUR3.2 billion at end- December 2005, mainly through one-off transactions such as the EUR3 billion-loan conversion into equity. The debt reduction trend continued in first-half 2006, with reported net debt decreasing further to EUR2.3 billion, on the back of EUR600 million of free cash flow. The group's ability to generate recurrent and substantial free cash flow is a key rating driver. The outlook on Fiat, currently stable, could be revised to positive in the near term if the trading profits of Fiat Auto continue to grow and if free cash flows continue to improve. "A further upgrade would require the successful launch of another high-volume car that would lower Fiat's dependence on the Punto," said Mr. Baudouin. "Fiat would also need to increase the profitability of its European automotive operations and further reduce industrial debt." Conversely, the outlook would be revised to negative if the automotive activities were to face an unexpected setback. Current ratings also acknowledge continuing robust performance from CNH, which still has strong margin improvement potential, and from Iveco. LAZARD LTD: June 30 Balance Sheet Upside-Down By US$745 Million ------------------------------------------------------------- Lazard Ltd reported its financial results for the first six months and second quarter ended June 30, 2006. At June 30, 2006, the Company's balance sheet showed US$2.1 billion in total assets and US$2.8 billion in total liabilities resulting in US$745 million stockholders' deficit. For the second quarter of 2006, pro forma net income, assuming full exchange of outstanding exchangeable interests, increased 97% to US$62.9 million from US$32 million for the second quarter of 2005. Financial Advisory revenue increased 24% compared to the second quarter of 2005 and increased 18% compared to the first quarter of 2006. Asset Management revenue increased 19% compared to the second quarter of 2005. Operating revenue for the second quarter of 2006 increased 24% to US$410.8 million compared to US$330.1 million for the second quarter of 2005. Operating income increased 49% to US$84.7 million for the second quarter of 2006, including a gain of approximately US$5.3 million from the termination of our joint venture relationship in Italy, compared to pro forma US$57 million for the second quarter of 2005. Net income before exchange of outstanding exchangeable interests increased 97% to US$23.5 million for the second quarter of 2006 compared to pro forma income from continuing operations of US$12.0 million for the second quarter of 2005. Pro forma net income, assuming full exchange of outstanding exchangeable interests, increased 82% to US$115.4 million for the first six months of 2006 from US$63.3 million for the first six months of 2005. For the first six months of 2006, operating revenue increased 28% to US$762 million compared to US$595.7 million for the first six months of 2005, resulting from growth in both Financial Advisory and Asset Management businesses. For the first six months of 2006 compared to the first six months of 2005, Financial Advisory revenue increased 31% and Asset Management revenue increased 15%. Operating income increased 72% to US$162.8 million for the first six months of 2006, including a gain of approximately US$5.3 million from the termination of our joint venture relationship in Italy, compared to pro forma US$94.5 million for the comparable 2005 period. Net income before exchange of outstanding exchangeable interests increased 82% to US$43.2 million compared to pro forma income from continuing operations of US$23.7 million for the first six months of 2005. "Lazard's strong results reflect our leadership position in Financial Advisory, as we continue to advise on some of the most complex and important transactions" said Bruce Wasserstein, Chairman and Chief Executive Officer of Lazard Ltd. "Our results also show the steady progress of our Asset Management business, as we continue to win new mandates with expanded product offerings. We are focused on creating value for our shareholders. Our approach is to apply intellectual rigor and creativity to all parts of our business." "We are pleased to report another strong quarter and record financial performance year-to-date," noted Steven J. Golub, Lazard's Vice Chairman. "Lazard's success is a result of continued demand for world-class, independent advice, our retention and attraction of top talent, momentum in our Asset Management business and our continued focus on cost containment. We believe we continue to be positioned for long-term growth." The Company's quarterly revenue and profits can fluctuate materially depending on the number, size and timing of completed transactions on which it advised, as well as seasonality and other factors. Accordingly, the revenue and profits in any particular quarter may not be indicative of future results. As such, Lazard management believes that annual results are the most meaningful. (a) Operating revenue excludes interest expense relating to financing activities and revenue relating to the consolidation of LAM General Partnerships, each of which are included in net revenue. (b) Operating income is after interest expense and before income taxes and minority interests. Lazard Ltd. -- http://www.lazard.com/-- one of the world's preeminent financial advisory and asset management firms, operates from 29 cities across 16 countries in North America, Europe, Asia, Australia and South America. With origins dating back to 1848, the firm provides services including mergers and acquisitions advice, asset management, and restructuring advice to corporations, partnerships, institutions, governments, and individuals. =================== K A Z A K H S T A N =================== AKSEPT ASTYK: Creditors Must File Claims by Sept. 5 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Aksept Astyk insolvent on June 15. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Sept. 5 to submit written proofs of claim to: LLP Aksept Astyk Chaplygina Str. 5 Almaty, Kazakshtan Tel: 8 300 744 68-21 INTEGRITY SYSTEMS: Creditors Must File Claims by Sept. 6 -------------------------------------------------------- LLP Integrity Systems has declared insolvency. Creditors have until Sept. 6 to submit written proofs of claim to: LLP Integrity Systems Micro District Al-Farabi 81/1-13 Almaty District Astana, Kazakhstan M-OIL MAXIMUM: Creditors Must File Claims by Sept. 5 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP M-Oil Maximum (RNN 090400211197) declared insolvent on May 31. Creditors have until Sept. 5 to submit written proofs of claim to: LLP M-Oil Maximum Zelenaya Str. 40 Baiserke Ilisky District Almaty Region Kazakhstan Tel: 8 333 315 19-66 MARK COMPANY: Proof of Claim Deadline Slated for Sept. 6 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Mark Company Ltd. insolvent on June 12. Creditors have until Sept. 6 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Dostyk Ave. 44-99 Almaty, Kazakhstan Tel: 8 (3272) 91-43-47 8 (7052) 03-30-32 NEFTEPROMSNAB LTD: Proof of Claim Deadline Slated for Sept. 6 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Neftepromsnab Ltd. insolvent on June 14. Creditors have until Sept. 6 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Dostyk Ave. 44-99 Almaty, Kazakhstan Tel: 8 (3272) 91-43-47 8 (7052) 03-30-32 PROMTEHSERVIS: Creditors' Claims Due Sept. 6 -------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Promtehservis insolvent. Creditors have until Sept. 6 to submit written proofs of claim to: LLP Promtehservis Room 303 Al-Farabi Ave. 119 Kostanai Kostanai Region Kazakhstan TREID AGRO-SEVER: Creditors' Claims Due Sept. 6 ----------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Treid Agro-Sever insolvent on June 12. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Sept. 6 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of North Kazakhstan Region Jumabayeva Str. 102-25 Petropavlovsk North Kazakhstan Region Kazakhstan URALAZAVTOSERVIS: Claims Registration Ends Sept. 6 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Uralazavtoservis insolvent on June 14. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Sept. 6 to submit written proofs of claim to: LLP Uralazavtoservis Aktau, 27-49-6 Mangistau Region Kazakhstan Tel: 8 (3292) 41-20-13 Fax: 8 (3292) 41-20-13 VK AGROPROMENERGOSNAB: Claims Registration Ends Sept. 6 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP VK Agropromenergosnab declared insolvent on June 9. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Sept. 6 to submit written proofs of claim to: LLP VK Agropromenergosnab Krylova Str. 92/1 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 25-12-13 ZAVOD TEHNOLOGICHESKOGO: Claims Registration Ends Sept. 6 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Plant of the Technological Equipment Zavod Tehnologicheskogo Oborudovaniya insolvent on June 6. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Sept. 6 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of North Kazakhstan Region Jumabayeva Str. 102-25 Petropavlovsk North Kazakhstan Region Kazakhstan =================== K Y R G Y Z S T A N =================== DASTAN-6: Creditors Must File Claims by Sept. 13 ------------------------------------------------ The Branch Dastan-6 of the OJSC Transnational Corporation Dastan has declared insolvency. Creditors have until Sept. 13 to submit written proofs of claim to: Dastan-6 Baitik-Baatyr Str. 36 720005 Bishkek, Kyrgyzstan Tel: (+996 312) 42-83-62 =================== L U X E M B O U R G =================== COLT TELECOM: Debt Reduction Prompts S&P to Raise Rating to B ------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on European business telecommunications provider COLT Telecom Group Ltd. to 'B' from 'B-' and removed the ratings from CreditWatch, where they were placed on Feb. 24. The outlook is stable. The issue ratings on COLT's existing senior unsecured notes were also raised to 'B' from 'B-' and removed from CreditWatch. At the same time, Standard & Poor's assigned its 'B' long-term corporate credit rating to COLT Telecom Group S.A., the new ultimate parent of COLT. The outlook is stable. "The upgrade, as indicated in February, is a result of COLT's significant actual and expected debt reduction following the group's net EUR436.6 million equity issue in June 2006," said Standard & Poor's credit analyst Simon Redmond. "As a result, COLT's reduced future financial debt of about EUR276 million poses a lower risk, with ongoing annual interest of EUR20 million and EBITDA of more than EUR200 million, assuming the further announced early redemption of the EUR250.4 million 2008 notes on Aug. 21." Standard & Poor's believes that COLT's lower leverage leaves it better placed to withstand the pressures inherent in its operating environment and to sustain credit quality over the near term. Further upward ratings momentum over the next year would most likely be driven by both improved business standing and stronger and more sustained free operating cash flow generation. Alternatively, a marked loss of customers, deterioration in margins, or reversion to sustained negative free operating cash flow would put pressure on the ratings. THESEUS EUROPEAN: Moody's Rates EUR15-Mln Class E Notes at Ba2 -------------------------------------------------------------- Moody's Investors Service assigned these definitive ratings to the notes issued by Theseus European CLO S.A., a Luxembourg special purpose company: -- EUR135,000,000 Class A1 Senior Secured Floating Rate Notes due 2022: Aaa; -- EUR90,000,000 Class A2A Senior Secured Floating Rate Notes due 2022: Aaa; -- EUR10,000,000 Class A2B Senior Secured Floating Rate Notes due 2022: Aa1; -- EUR16,000,000 Class B Senior Secured Deferrable Floating Rate Notes due 2022: Aa2; -- EUR19,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2022: A2; -- EUR11,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2022: Baa2; and -- EUR15,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2022: Ba2. Theseus European CLO S.A. also issued unrated EUR 35,000,000 Class F Subordinated Notes due 2022. These definitive ratings address the expected loss of noteholders by the legal final maturity date in August 2022. These ratings are based upon: -- an assessment of the credit quality and of the diversification of the assets to be included in the portfolio; -- an assessment of the eligibility criteria, reinvestment criteria and portfolio limits applicable to the future additions to the portfolio; -- the protection against losses through the subordination of the more junior classes of notes to the more senior classes of notes; -- the expertise of INVESCO Senior Secured Management Inc. in the management of loans portfolios; and -- the legal and structural integrity of the transaction. This transaction is a high yield collateralized loan obligation related to a EUR325,000,000 portfolio comprised of senior loans and mezzanine loans. The portfolio is dynamic and INVESCO Senior Secured Management Inc. will provide investment advice to Theseus European CLO S.A. in respect thereof. The portfolio was 60% ramped-up at closing, and is expected to be fully ramped-up within 12 months, subject to compliance with the eligibility criteria and portfolio guidelines including, amongst other tests, the diversity score, the weighted average rating factor, the weighted average recovery rate, the weighted average spread and the weighted average life of the assets in the portfolio. Deutsche Bank AG, London Branch, arranged the transaction. =================== L U X E M B O U R G =================== NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares ------------------------------------------------------------ The board of directors of Nortel Networks Limited declared a dividend for the months of August and September on each of the outstanding Cumulative Redeemable Class A Preferred Shares Series 5 and the outstanding Non-cumulative Redeemable Class A Preferred Shares Series 7. The dividend amount for each series is calculated in accordance with the terms and conditions applicable to each respective series, as set out in the company's articles. The annual dividend rate for each series floats in relation to changes in the average of the prime rate of Royal Bank of Canada and The Toronto-Dominion Bank during the preceding month and is adjusted upwards or downwards on a monthly basis by an adjustment factor which is based on the weighted average daily trading price of each of the series for the preceding month, respectively. The maximum monthly adjustment for changes in the weighted average daily trading price of each of the series will be plus or minus 4.0% of Prime. The annual floating dividend rate applicable for a month will in no event be less than 50% of Prime or greater than Prime. The dividend on each series in respect of the month of August is payable on Sept. 12, 2006, to shareholders of record of such series at the close of business on Aug. 31, 2006. The dividend on each series in respect of the month of September is payable on Oct. 12, 2006, to shareholders of record of such series at the close of business on Sept. 29, 2006. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. * * * As reported in the Troubled Company Reporter on July 10, 2006, Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. As reported in the Troubled Company Reporter on June 20, 2006, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed US$2 billion senior note issue; downgraded the US$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed $2 billion notes. S&P said the outlook is stable. ===================== N E T H E R L A N D S ===================== GETRONICS NV: S&P Keeps Low-B & Junk Ratings on Watch Negative -------------------------------------------------------------- Standard & Poor's Ratings Services commented on its CreditWatch placement of Dutch IT services group Getronics N.V. Following the release of second-quarter 2006 earnings, the 'B' long-term corporate credit rating, along with the 'CCC+' senior unsecured debt, 'B' bank loan, and '3' recovery ratings remained on CreditWatch with negative implications, where they had originally been placed on Jan. 19. The '3' recovery rating indicates Standard & Poor's expectation of meaningful (50%-80%) recovery of principal for secured lenders in the event of a payment default. At June 30, 2006, Getronics reported gross consolidated debt of EUR636 million. "Getronics' balance sheet was substantially weaker at June 30, 2006, after burning cash of EUR118 million in Italy during first-half 2006 to cover operating losses, debt repayment, and cash transfers," said Standard & Poor's credit analyst Patrice Cochelin. The group sold its Italian operations in June 2006. Net borrowings were EUR461 million, up from EUR303 million one year earlier. A EUR22 million net liability relating to Italy remains on Getronics' balance sheet. "Standard & Poor's expects to resolve the CreditWatch status by the end of August 2006 following clarification of the group's liquidity position," added Mr. Cochelin. LEVERAGED FINANCE: S&P Rates EUR7.4-Mln Class V Notes at BB- ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR249.6 million floating-rate notes and EUR30.0 million revolving facility to be issued by Leveraged Finance Europe Capital IV B.V., a special purpose entity. Unrated notes totaling EUR27.2 million will also be issued. Leveraged Finance Europe Capital IV is a leveraged-loan CLO transaction that will be managed by the Leveraged Funds Group of BNP Paribas. This is BNP Paribas' fourth European leveraged loans CLO. The transaction incorporates structural enhancements, such as par value test haircuts for 'CCC' rated assets and discount asset purchases. The collateral that will secure the rated notes is expected to comprise primarily European senior secured leveraged loans. Ratings List Leveraged Finance Europe Capital IV B.V. EUR276.8 Million Floating-Rate Notes And EUR30 Million Revolving Facility Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ I-D AAA 90.0 I-N AAA 94.3 Revolving facility AAA 30.0 II AA 26.3 III A 11.7 IV BBB- 19.9 V BB- 7.4 Subordinated notes NR 27.2 NR-Not rated. NORTH WESTERLY: Moody's Assigns Ba2 Rating to Class E Notes ----------------------------------------------------------- Moody's assigned these credit ratings to seven classes of notes to be issued by North Westerly CLO III B.V., a Dutch special purpose company: -- EUR290,000,000 Class A Senior Floating Rate Notes, due 2022: Aaa; -- EUR32,000,000 Class B Deferrable Interest Floating Rate Notes, due 2022: Aa3; -- EUR17,000,000 Class C Deferrable Interest Floating Rate Notes, due 2022: A2; -- EUR15,500,000 Class D Deferrable Interest Floating Rate Notes, due 2022: Baa2; -- EUR14,500,000 Class E Deferrable Interest Floating Rate Notes, due 2022: Ba2; -- EUR6,000,000 Class R Combination Notes, due 2022: Baa1; and -- EUR10,000,000 Class P Combination Notes, due 2022: Baa3. EUR 40,800,000 Subordinated Notes, due 2022 have also been issued but are not rated by Moody's. The ratings address the expected loss posed to investors by the legal final maturity in 2022. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks, such as those associated with the timing of principal prepayments and other market risks, have not been addressed and may have a significant effect on yield to investors. The rating assigned to the Class P Combination Notes by Moody's addresses the expected loss posed to the investors by the legal final maturity in 2022 as a proportion of the Rated Balance, where the Rated Balance is equal, at any time, to the principal amount of the Class P Combination Notes on the closing date minus the aggregate of all payments made from the closing date to such date, either through interest or principal payments. The rating assigned to the Class R Combination Notes by Moody's addresses the expected loss posed to the investors by the legal final maturity in 2022 as a proportion of the Rated Balance and of the Rated Coupon, where the Rated Balance is equal, at any time, to the principal amount of the Class R Combination Notes on the closing date plus a Rated Coupon of 0.25% per annum applied on the outstanding Rated Balance minus the aggregate of all payments made from the closing date to such date, either through interest or principal payments. These ratings are based upon: -- an assessment of the eligibility criteria and portfolio guidelines applicable to the future additions to the portfolio; -- the protection against losses through the subordination of the more junior classes of notes to the more senior classes of notes; -- the overcollateralization of the Notes; -- the proposed currency swap transactions, which insulate the Issuer from the volatility of the foreign currency exchange rates in respect of non-Euro denominated obligations; -- the expertise of NIBC Bank NV as a collateral manager; and -- the legal and structural integrity of the issue. This transaction is a high yield collateralized loan obligation related to a collateral portfolio of approximately EUR400 million, comprised primarily of European senior secured debt obligations, second secured debt obligations and unsecured debt obligations and high yield bonds. This portfolio is dynamically managed by NIBC Bank N.V. This portfolio will be partially acquired at closing date and partially during the 12 months ramp-up period in compliance with portfolio guidelines which include, among other tests, a diversity score test, a weighted average rating factor test and a weighted average spread test. Thereafter, the portfolio of loans will be actively managed and the portfolio manager will have the option to buy or sell assets in the portfolio. Any addition or removal of assets will be subject to a number of portfolio criteria. NIBC Bank N.V arranged the transaction. =========== R U S S I A =========== ALAPAEVSKIY FACTORY: L. Korovnikova to Manage Assets ---------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Ms. L. Korovnikova as Insolvency Manager for CJSC Alapaevskiy Factory of Reinforced Concrete Products. She can be reached at: L. Korovnikova Post User Box 177 620062 Ekaterinburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-29271/05-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Alapaevskiy Factory of Reinforced Concrete Products Post User Box 177 620062 Ekaterinburg Region Russia BODAYBINSKAYA MINING: Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Irkutsk Region has commenced bankruptcy supervision procedure on LLC Bodaybinskaya Mining Company (TIN 3802008472). The case is docketed under Case No. A-19-8901/06-29k. The Temporary Insolvency Manager is: S. Sizov Proletarskaya Str. 1a Ust-Kut 666780 Irkutsk Region Russia The Arbitration Court of Irkutsk Region is located at: Room 303 Gagarina Avenue 70 664025 Irkutsk Region Russia The Debtor can be reached at: LLC Bodaybinskaya Mining Company Sadovaya Str. 12-12. Balakhinskiy Bodaybinskiy Region 666921 Irkutsk Region Russia BOGDANOVICHSKIY PORCELAIN: K. Zelyutin to Manage Assets ------------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Mr. K. Zelyutin as Insolvency Manager for CJSC Bogdanovichskiy Porcelain Factory. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-35306/05-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Bogdanovichskiy Porcelain Factory Stepana Razina Str. 62. Bogdanovich Sverdlovsk Region Russia ENERGY: Court Names I. Morlang as Insolvency Manager ---------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. I. Morlang as Insolvency Manager for OJSC Energy. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-5457/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: OJSC Energy K. Marksa Str. 48 Krasnoyarsk Region Russia FINNEFTEKOR: Court Names V. Gorbunov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Orenburg Region appointed Mr. V. Gorbunov as Insolvency Manager for OJSC Finneftekor. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-3394/2006-14GK. The Arbitration Court of Orenburg Region is located at: 9th January Str. 64 460046 Orenburg Region Russia The Debtor can be reached at: OJSC Finneftekor Lenina Pr. 41 Orsk 462404 Orenburg Region Russia INTERNATIONAL INDUSTRIAL: Moody's Rates US$100-Mln Notes at B1 -------------------------------------------------------------- Moody's Investors Service has assigned a long-term rating of B1 to the US$100 million 9.5% loan participation notes due 2009 issued by IIB Luxembourg S.A., the proceeds of which were used for the sole purpose of making a loan to International Industrial Bank of Russia. The loan represents a senior unsecured obligation for IIB. The outlook for the rating is stable. IIB's existing B1/NP long- and short-term foreign currency deposit ratings and E+ financial strength rating remain unaffected. The B1 rating for the Notes is based primarily on the fundamental ability of IIB, the ultimate obligor in respect of payments under the Notes, to make timely payments of interest and ultimate payment of principal on the Loan. The rating does not incorporate support from either IIB's shareholder or the Russian financial authorities. The notes contain a put option on the part of the noteholders after the first 18 months of the bond life. In addition, covenants embedded in the transaction state that the Notes may become payable in the event that the bank's ratings were to be downgraded following a reorganization. The rating agency notes that these options could potentially have adverse liquidity implications for the bank and might exert additional downward pressure on its ratings. There are also financial covenants that require the bank to maintain a consolidated total capital adequacy of at least 20% and restrict the bank's aggregated lending to related parties to 50% of its total equity. According to Moody's, at year-end 2005 the bank reported a total capital ratio of 45.3% which should enable it to comfortably comply with the high capital adequacy requirement. However, the situation may be more challenging with respect to the related- party lending restriction, as the net credit exposure to related parties on bank's balance sheet at end-December 2005 accounted for 43% of its total equity. IIB is headquartered in Moscow, Russian Federation, and reported total assets of RUB76.1 billion (US$2.6 billion) and total equity of RUB31.6 billion (US$1.1 billion) in accordance with IFRS as at 31 December 2005. As at end-March 2006 the bank ranked 19th-largest in Russia in terms of total assets, as calculated LUKOIL: Inks Mutual Cooperation Pact with Algeria's Sonatrech ------------------------------------------------------------- OAO LUKOIL signed a Memorandum of Understanding in Moscow with Algerian state oil company, Sonatrach, on Aug. 4. The agreement covers issues of mutual cooperation in the areas of oil and gas exploration, field development and petroleum refining. The Memorandum was signed during a meeting between Victor Khristenko, Russian Federation Minister of Industry and Energy and Shakib Helil, Algerian Minister of Energy and Mines, who is currently on a working visit in the Russian Federation. The MoU outlines that the two companies will engage in mutual cooperation, together with a general exchange of sector expertise. Co-projects are to be developed for research and exploration of hydrocarbon resources and for the development, refining and marketing of liquid hydrocarbons. The signing of the Memorandum was the culmination of a series of negotiations between LUKOIL and Sonatrach, through which the potential was discussed for bilateral cooperation both in Algeria and Russia, and in other countries. The People's Democratic Republic of Algeria has a high potential for developing its petroleum industry and overall economic infrastructure, which makes it one of the higher-priority countries for LUKOIL to undertake international projects. Acknowledging the present strategic importance of the North African region, LUKOIL is in the process of opening a representative office in Algeria. About the Company Headquartered in Moscow, Russia, OAO Lukoil, is the country's largest vertically integrated oil & gas company in terms of reserves, and one of the largest oil & gas companies in the world. In the first nine months of 2005, the group produced 1.92 million barrels of oil equivalent (boe) per day and in 2004 had refinery throughput of 44 million tons. Total SPE reserves in 2004 were just over 20 billion boe. The group's 2005 nine- month revenues were US$40.6 billion. * * * As reported in TCR-Europe on July 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Lukoil OAO to 'BB+' from 'BB'. S&P said the outlook is positive. As reported in the TCR-Europe on Jan. 26, Moody's Investors Service has changed the outlook of OAO Lukoil's Ba1 Corporate Family Rating and Ba2 Issuer Rating to positive from stable. Moody's last rating action on LUKOIL was on April 26, when the agency upgraded the company's ratings from Ba2/Ba3 to Ba1/Ba2. LUKOIL: Sets Up Investment Center to Finance Plant Construction --------------------------------------------------------------- The Management Committee of OAO LUKOIL decided to set up a financial and investment center based on OAO LUKOIL- Volganefteprodukt. This will operate as a customer company for building visbreaking units and a deep conversion facility at the production sites of OAO LUKOIL-Nizhegorodnefteorgsintez. OAO LUKOIL-Volganefteprodukt will be constructing the units supported by in-house and borrowed funds as part of the LUKOIL Group Refinery Upgrading Program. New sites will be owned by OAO LUKOIL-Volganefteprodukt and part of OAO LUKOIL- Nizhegorodnefteorgsintez' production schedule. The decision to establish the center based on OAO LUKOIL- Volganefteprodukt followed from both a need to improve the financial performance of OAO LUKOIL-Nizhegorodnefteorgsintez and also this company's inability to finance the upgrade of its refining capacities with borrowed funds. As previously reported, the shareholders of OAO LUKOIL- Nizhegorodnefteorgsintez had decided at the Company's AGM against attracting funds to finance the plant upgrade. As a result OAO LUKOIL concludes that a financial and investment center set up in this way will provide consistent and sufficient financing to support building plant building at OAO LUKOIL- Nizhegorodnefteorgsintez. About the Company Headquartered in Moscow, Russia, OAO Lukoil, is the country's largest vertically integrated oil & gas company in terms of reserves, and one of the largest oil & gas companies in the world. In the first nine months of 2005, the group produced 1.92 million barrels of oil equivalent (boe) per day and in 2004 had refinery throughput of 44 million tons. Total SPE reserves in 2004 were just over 20 billion boe. The group's 2005 nine- month revenues were US$40.6 billion. * * * As reported in TCR-Europe on July 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Lukoil OAO to 'BB+' from 'BB'. S&P said the outlook is positive. As reported in the TCR-Europe on Jan. 26, Moody's Investors Service has changed the outlook of OAO Lukoil's Ba1 Corporate Family Rating and Ba2 Issuer Rating to positive from stable. Moody's last rating action on LUKOIL was on April 26, when the agency upgraded the company's ratings from Ba2/Ba3 to Ba1/Ba2. MINING EQUIPMENT: Court Names I. Morlang as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. I. Morlang as Insolvency Manager for CJSC Factory of Mining Equipment. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-6986/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC Factory of Mining Equipment Televizornyj Per., 5. Krasnoyarsk Region Russia OIL-INVEST: Court Names S. Semenov as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Mr. S. Semenov as Insolvency Manager for CJSC Oil-Invest. He can be reached at: S. Semenov Post User Box 177 620062 Ekaterinburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-7091/06-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Oil-Invest Khokhryakova Str. 98 Ekaterinburg Region Russia RUSSIAN MORTGAGE: Fitch Affirms US$3.5-Mln Class C Notes at BB- --------------------------------------------------------------- Fitch Ratings upgraded the senior notes of Russian Mortgage Backed Securities 2006-1 S.A. The rating actions are: -- US$74.2 million Class A (ISIN XS0254447872) upgraded to A- from BBB+; -- US$10.6 million Class B (ISIN XS0254451395) affirmed at BBB; and -- US$3.5m Class C (ISIN XS0254451551) affirmed at BB-. The rating actions follow the upgrade of the Russian Federation sovereign rating and Country Ceiling to BBB+/F2 from BBB/F3 on July 25 and the upgrade of the originator of the securitized assets, JSC Vneshtorgbank to BBB+/F2 from BBB/F3 on July 27. Under Fitch emerging market structured finance criteria the rating cap for this transaction has been set at one notch above the level of the Country Ceiling for Russia. The loans backing the transaction are first-ranking US dollar-denominated residential mortgage loans secured on property located in the Russian Federation. Given that the borrowers' income is paid in Russian roubles, a devaluation of the US dollar/Russian rouble exchange rate would disadvantage these borrowers and could lead to higher levels of payment delinquency on the mortgage portfolio. The initial exchange rate stresses that were factored into the credit analysis were set at the Sovereign Issuer Default rating, so these have now been amended slightly to reflect the Sovereign upgrade. This transaction closed less then one month ago, therefore no performance data are yet available. SEROV-MEAT: Court Names T. Belousova as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Ms. T. Belousova as Insolvency Manager for CJSC Serov-Meat. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-7901/06-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Serov-Meat Gagarina Str. 2A Serov 624980 Sverdlovsk Region Russia SIBERIAN TIMBER: Court Names V. Safonov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Irkutsk Region appointed Mr. V. Safonov as Insolvency Manager for LLC Siberian Timber Industry Complex. He can be reached at: V. Safonov Post User Box 146 664025 Irkutsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A19-10083/06-8. The Arbitration Court of Irkutsk Region is located at: Room 303 Gagarina Avenue 70 664025 Irkutsk Region Russia The Debtor can be reached at: LLC Siberian Timber Industry Complex Lesopilnaya Str. 1 Zima 665383 Irkutsk Region Russia SOUTHERN TELECOM: Posts RUB1.05 Billion Net Losses in 2005 ---------------------------------------------------------- Southern Telecommunications Company (UTK) has reported its 2005 audited consolidated financial statements compiled according to International Financial Reporting Standards (IFRS). The audit of 2005 financial statements, carried out by Ernst & Young LLC is summarized as follows: -- 2005 consolidated revenue rose 8.33% over 2004 to RUB18.8 billion (US$652 million); -- 2005 OIBDA2 increased 15.19% year on year to RUB4.9 billion (US$172 million), representing an OIBDA margin of 26.33%; -- operating profit for the reporting period grew 11.42% over 2004 to RUB1.8 billion (US$61 million); -- 2005 revenues from new value added services3 rose 74.21% to RUB1.4 billion (US$49 million); revenues from local telephone services increased 17.19% to RUB7.16 billion (US$249 million), and -- volume of xDSL-based Internet traffic tripled to 172.6 Tbytes. Commenting on the 2005 financial results, Alexander Andreev, UTK CEO, stated: "Due to active implementation of the Company's development strategy UTK PJSC succeeded in improving its main financial and performance results: -- active development of new technologies and up-to-date marketing solutions enabled the Company to increase its revenues from value-added telecom services by 74.21% in 2005; -- in 2005 the Company continued to reduce its investment program: capex volume stood at RUB 3,213.5 million representing a 74.3%-decrease over 2004; -- the staff number had also been cut: as at the beginning of 2006 the number of the Company's employees on payroll was 37,660 people, which was down 4.3% over the beginning of 2005. "In line with the Company's policy on optimization of the debt size and structure UTK PJSC placed series 04 bond issue worth RUB5 billion. The funds obtained from placement of 04-series bonds were used for restructuring of UTK's debts. "The Company undertook a number of measures to make UTK more attractive for investment community. As a result its market capitalisation rose 90.7% over 2004 reaching US$515 million as of Jan. 1, 2006. "The Company's priority objectives for 2006 are to strengthen its market positions, improve business efficiency, drive the growth of new services and increase the Company's capitalization." In 2005, the company posted a RUB1.05 billion net loss, compared with a RUB332 million net loss in 2004. The increase in UTK's 2005 revenues from telecommunications services was mainly due to expansion in the Company subscribers' base, a 30.3%-increase in average revenue per unit to RUB139.4 per month and growth in revenues from value-added services and traffic transit services for interconnected operators. The company's 2005 revenues from local telephone services grew by 17.19% to RUB7.16 billion. Revenues from local telephone calls (monthly subscriber fee and time-based payments for local calls) rose by 35.78% to RUB6.5 billion. About the Company Headquartered in Krasnador, Russia, Southern Telecommunications Co. -- http://www.stcompany.ru/-- provides local, long- distance, and cellular telephone, paging and telegraph services. * * * Southern Telecommunications carries Moody's Investors' Service's Caa1 issuer rating and B3 long-term corporate family rating since 2004. Standard & Poor's also assigned junk ratings to the Company's issuer credit in 2005. SOUTH TELECOM: Taps Alexander Dobryakov Deputy Director General --------------------------------------------------------------- Southern Telecommunications Company PJSC (UTK) has appointed Alexander Dobryakov as its Deputy Director General responsible for Economics and Finance, effective Aug. 1. Prior to his appointment, Mr. Dobryakov held the position of General Director at LLC Graft-Trading. Previously, Irina Prokofieva who is now employed at Svyazinvest OJSC held the post of Deputy Director General of UTK PJSC for Economics and Finance. Born in 1972, Mr. Dobryakov graduated in 1996 from the St. Petersburg State Academy of Engineering and Economics named after P. Toliatti and gained a diploma in management economics. In 1997-1998 he held the post of head of the corporate finances group at IC CJSC AVK, St. Petersburg. Between 1998-2000 he was Deputy Financial Director at CJSC Farm Tamda 77, St. Petersburg and from 2000-2006 he was Financial Director, General Director and Business Adviser at LLC Graft-Trading, St. Petersburg. About the Company Headquartered in Krasnador, Russia, Southern Telecommunications Co. -- http://www.stcompany.ru/-- provides local, long- distance, and cellular telephone, paging and telegraph services. * * * Southern Telecommunications carries Moody's Investors' Service's Caa1 issuer rating and B3 long-term corporate family rating since 2004. Standard & Poor's also assigned junk ratings to the Company's issuer credit in 2005. * S&P Assigns B Long-Term Credit Rating to Omsk City ---------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' long-term credit rating to the Russian City of Omsk, the administrative center of the Omsk Oblast located in Western Siberia. The outlook is stable. At the same time, a 'ruBBB+' Russian scale rating was assigned. "The ratings are constrained by the city's poor debt profile, which has a prevalence of short-term debt; weak, although improving, budgetary performance; limited financial flexibility and predictability; and moderately low liquidity," said Standard & Poor's credit analyst Felix Ejgel. "These risks are partially mitigated by the city's commitment to gradual improvement of its financial indicators and debt structure, backed by additional financial support from the Omsk Oblast, and higher-than-average industrial output growth." The city's debt portfolio is dominated by short-term debt, and therefore, debt service is expected to be a high 30% of total revenues in 2006. Moreover, the city's historical debt servicing record is poor, as it defaulted in the past and had to restructure its overdue debts twice, in 2003 and 2005. Nevertheless, after the oblast took over the city's foreign currency denominated debt in 2006, the city's direct debt has reduced significantly; it is expected to fall to an expected 30% of operating revenues by the end of 2006 from a high 91% in 2004. In addition, the debt burden is not expected to exceed 40% of operating revenues over the next two to three years. Standard & Poor's expects that the city's strict control over current spending will help stabilize budgetary performance; operating performance is expected to at least balance and single-digit deficits after capital expenditures are also expected. Investments by private companies, the oblast, and the state, in Omsk's infrastructure will expand the city's tax base and contribute to its revenue growth. "If the city's budgetary and debt indicators strengthen significantly above expectations, the outlook could be changed to positive," said Mr. Ejgel. "Conversely, if the city fails to reduce debt service and maintain budgetary performance, at least at the planned level, this could put pressure on the ratings." =========== T U R K E Y =========== OYAK BANK: Fitch Keeps Foreign Currency Default Rating at BB- ------------------------------------------------------------- Fitch Ratings affirmed Turkey-based Oyak Bank A.S.'s ratings at foreign and local currency Issuer Default BB-, Short-term foreign and local currency B, Individual C/D, Support 3 and National Long-term A. The Outlook on the Issuer Default is Positive and the Outlook on the National rating is Stable. The ratings reflect Oyak Bank's stable core deposit base, improved efficiency, sound asset quality and adequate capitalization. These are balanced by its rapidly-growing loan portfolio in a potentially volatile operating environment. The key drivers of future upgrades to the bank's ratings would be sustained improvements in profitability and growth of its franchise. Fitch expects Oyak Bank's H106 performance will be negatively affected by the recent volatility in the Turkish financial markets, including higher interest rates and the depreciation of the Turkish Lira. The agency estimates the profitability in 2006 will be lower than that of 2005, despite a recovery in the financial markets. Downside risk to the ratings is still limited, unless there is a major deterioration in the Turkish economy resulting in widespread asset quality problems. Oyak Bank is 100%-owned by Turkish armed forces pension fund, which is the supplementary social security institution for officers and non-commissioned officers of the Turkish armed forces. Oyak is among the largest conglomerates in Turkey with a turnover of US$7.896 billion in 2005; it is active in diversified sectors such as cement, automotive, energy, construction, technology, food, chemicals and services. Oyak Bank's primary source of support, in case of need, would be its shareholder, Oyak, which is legally required to support the bank. Fitch recognizes that Oyak has a high propensity to support the bank; however, its ability to do so is considered moderate, due to the foreign currency Issuer Default BB- rating of the sovereign. Oyak Bank is a mid-sized bank, with retail banking as it core activity, although it has recently turned its focus to small business banking. It had 301 domestic branches at end-2005. ============= U K R A I N E ============= ARTOR: Court Names Yaroslav Onushkanich as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Lviv Region appointed Yaroslav Onushkanich as Liquidator/Insolvency Manager for LLC Artor (code EDRPOU 30420751). He can be reached at: Yaroslav Onushkanich Strijska Str. 71-b/3 79031 Lviv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 5. The case is docketed under Case No. 6/81-29/118. The Economic Court of Lviv Region is located at: Lichakivska Str. 81 79010 Lviv Region Ukraine The Debtor can be reached at: LLC Artor Lisozavodska Str. 5 Sudova Vishnya Lviv Region Ukraine BUDINITSIATIVA: Court Names Vadim Bolejko as Liquidator ------------------------------------------------------- The Economic Court of Kyiv Region appointed Vadim Bolejko as Liquidator/Insolvency Manager for LLC Budinitsiativa (code EDRPOU 33279851). He can be reached at: Vadim Bolejko Office 12 Anishenko Str. 12 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 20. 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 Budinitsiativa Sholudenko Str. 19 Vishgorod 07300 Kyiv Region Ukraine BUDKOMPLEKT DONBAS: Court Names V. Piskurskij as Liquidator ----------------------------------------------------------- The Economic Court of Donetsk Region appointed Mr. V. Piskurskij as Liquidator/Insolvency Manager for LLC Budkomplekt Donbas (code EDRPOU 32879922). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/99 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Budkomplekt Donbas Kujbishev Str. 143-V 83060 Donetsk Region Ukraine BUDRESURS-UKRAINA: Court Names Igor Kapelushnij as Liquidator ------------------------------------------------------------- The Economic Court of Kyiv appointed Igor Kapelushnij as Liquidator/Insolvency Manager for LLC Budresurs-Ukraina (code EDRPOU 32846716). He can be reached at: Igor Kapelushnij a/b 53 03037 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 26. The case is docketed under Case No. 23/279-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 Budresurs-Ukraina Levitan Str. 8 03083 Kyiv Region Ukraine FEODOSIYA' TOBACCO: Court Names T. Kushnir as Liquidator -------------------------------------------------------- The Economic Court of AR Krym Region appointed Mr. T. Kushnir as Liquidator/Insolvency Manager for OJSC Feodosiya' Tobacco Factory (code EDRPOU 00383136). She can be reached at: T. Kushnir Pravdi Avenue 96/17 04208 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 16. The case is docketed under Case No. 2-1/10772-2006. The Economic Court of AR Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region Ukraine The Debtor can be reached at: OJSC Feodosiya' Tobacco Factory Druzhbi Str. 62 Feodosiya AR Krym Region Ukraine INFORM-PROMINVEST: Court Names Igor Kapelushnij as Liquidator ------------------------------------------------------------- The Economic Court of Kyiv appointed Igor Kapelushnij as Liquidator/Insolvency Manager for LLC Inform-Prominvest (code EDRPOU 33777759). He can be reached at: Igor Kapelushnij a/b 53 03037 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 26. The case is docketed under Case No. 23/278-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 Inform-Prominvest Izumska Str. 7 03039 Kyiv Region Ukraine ODESGOLOVPOSTACH: Court Names Kirilo Liseyev as Liquidator ---------------------------------------------------------- The Economic Court of Odessa Region appointed Kirilo Liseyev as Liquidator/Insolvency Manager for Odesgolovpostach (code EDRPOU 01886796). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 21/05-06-189. The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region Ukraine The Debtor can be reached at: Odesgolovpostach Velika Arnautska Str. 2b 65012 Odessa Region Ukraine POLTAVHIMMASHBUD: Court Starts Bankruptcy Supervision ----------------------------------------------------- The Economic Court of Poltava Region commenced bankruptcy supervision procedure on CJSC Poltavhimmashbud (code EDRPOU 01270606). The case is docketed under Case No. 18/223. The Temporary Insolvency Manager is: Yevgen Vasin Vavilov Avenue 5/11 Poltava Region Ukraine The Economic Court of Poltava Region is located at: Zigina Str. 1 36000 Poltava Region Ukraine The Debtor can be reached at: CJSC Poltavhimmashbud Perspektivnij Lane 8 Poltava Region Ukraine RODINA: Court Names L. Demets as Insolvency Manager --------------------------------------------------- The Economic Court of Vinnitsya Region appointed Mr. L. Demets as Liquidator/Insolvency Manager for Agricultural LLC Rodina (code EDRPOU 30804449). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 10/66-06. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: Agricultural LLC Rodina Migalivtsi Barskij District Vinnitsya Region Ukraine SANGO: Court Names Kozyatin' State Agency as Liquidator ------------------------------------------------------- The Economic Court of Vinnitsya Region appointed Kozyatin' State Tax Inspection as Liquidator for LLC Sango (code EDRPOU 30808291). The Liquidator can be reached at: Kozyatin' State Tax Inspection Pilip Orlik Str. 19 Kozyatin District 22100 Vinnitsya Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/120-b. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: LLC Sango Pilip Orlik Str. 16 Kozyatin 22100 Vinnitsya Region Ukraine TOP STYLE: Donetsk Court Names S. Lunkova as Insolvency Manager --------------------------------------------------------------- The Economic Court of Donetsk Region appointed Ms. S. Lunkova as Liquidator/Insolvency Manager for LLC Top Style (code EDRPOU 31018437). She can be reached at: S. Lunkova Office 324-1 Artema Str. 74 83000 Donetsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 5. The case is docketed under Case No. 42/104 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Top Style Universitetska Str. 48 83050 Donetsk Region Ukraine TORGBUDMATERIALI: Court Names Kozyatin' Tax Agency as Liquidator ---------------------------------------------------------------- The Economic Court of Vinnitsya Region appointed the Kozyatin' State Tax Inspection as Liquidator for LLC Torgbudmateriali (code EDRPOU 05468914). The Liquidator can be reached at: Kozyatin' State Tax Inspection Pilip Orlik Str. 19 Kozyatin District 22100 Vinnitsya Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/113-06. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: LLC Torgbudmateriali Chervonoarmijska Str. 60 Kozyatin 22100 Vinnitsya Region Ukraine UGOLINVEST: Donetsk Court Commences Bankruptcy Supervision ---------------------------------------------------------- The Economic Court of Donetsk Region commenced bankruptcy supervision procedure on JSCCT Ugolinvest (code EDRPOU 2178199) on May 15. The case is docketed under Case No. 5/84B. The Temporary Insolvency Manager is: Ivan Popov Makiyivka Tayozhna Str. 1 86123 Donetsk Region Ukraine The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: JSCCT Ugolinvest Shubert Str. 106 Snizhne 86500 Donetsk Region Ukraine VINNITSYA' FOOD: Court Names V. Bushanskij as Liquidator -------------------------------------------------------- The Economic Court of Vinnitsya Region appointed Mr. V. Bushanskij as Liquidator/Insolvency Manager for Ukrainian- American Joint Enterprise Vinnitsya' Food Group (code EDRPOU 25500011). He can be reached at: V. Bushanskij Stahurskij Str. 20/26 21000 Vinnitsya Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 15. The case is docketed under Case No. 5/214-06. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: Ukrainian-American Joint Enterprise Vinnitsya' Food Group Sverdlov Str. 155 Vinnitsya Region Ukraine =========================== U N I T E D K I N G D O M =========================== BAKERS OF MAYFAIR: Names David Kaye as Administrator ---------------------------------------------------- David N. Kaye of Crawfords was appointed administrator of Bakers of Mayfair Limited (Company Number 05553072) on July 3. The administrator can be reached at: Crawfords Stanton House 41 Blackfriars Road Salford Manchester Greater Manchester M3 7DB United Kingdom Tel: 0161 828 1000 Fax: 0161 832 1829 Bakers of Mayfair Limited can be reached at: White Horse Inn Cottage Lenham Heath Road Sandway Maidstone Kent ME17 2HY United Kingdom BLACK JACKET: Brings In Joint Liquidators from Ashcrofts -------------------------------------------------------- Harjinder Johal and George Michael of Ashcrofts were appointed Joint Liquidators of Black Jacket Co. Limited on May 12. The company can be reached at: Black Jacket Co. Limited 85 High Street Gillingham Kent ME7 1BL United Kingdom Tel: 01634 855 002 Fax: 01634 855 002 BRITISH AIRWAYS: Earns GBP154 Million in First Quarter 2006 ----------------------------------------------------------- British Airways reported GBP154 million after-tax profit for the first quarter ended June 30, 2006, compared with a GBP90 million net profit for the same period in 2005. The operating profit for the first quarter was GBP211 million, compared with GBP176 million profit for the same period in 2005, delivering an operating margin of 9.1 percent. Operating cashflow was GBP475 million, an increase of GBP126 million from last year. "These are good results driven by strong revenue as a result of record seat factors and better cabin mix," Willie Walsh, British Airways' chief executive, said. "Total costs are up with fuel up 44 percent at GBP512 million. Employee costs are up 7 percent and reflects increased pension costs as a result of the GBP2.1 billion accounting deficit in our New Airways Pension Scheme. "Our customers continue to see the benefit of investments in products and services with the introduction of our upgraded in- flight entertainment system. Our new Club World bed will be launched soon. We have announced new services to Calgary and an eighth daily service from London Heathrow to New York JFK. We are also increasing flights from London Heathrow to Sao Paulo in Brazil from seven to 10 each week from December 3, 2006. "On shorthaul our new low fares have been a big success. While competition in this market is brutal I am delighted to see we are winning customers with record seat factors. We're now even more competitive on price whilst keeping ahead of the game by offering full service flights, more frequently to more convenient airports. "We continue to make steady progress on changes to working practices. We recently agreed a deal with two further groups of staff including dispatchers and loaders ahead of our move to Terminal 5. This comes on top of agreements with our aircraft movements staff, equipment services and ground transport services and the new single cabin crew fleet agreement at Gatwick." Martin Broughton, British Airways' chairman, said: 'Strong revenue is expected to continue, supported by significant promotional activity driving seat factors in all cabins. For the year to March 2007, total revenue is expected to improve by 6-7 percent up from previous guidance of 5-6 percent. Capacity growth in the first half of the year is expected to be about 4 percent slowing in the second half of the year to achieve a full year increase of 2.5 - 3 percent. "Fuel costs for the year are now expected to be GBP550 - GBP600 million up on last year. Costs excluding fuel which were previously forecast flat, are now expected to be slightly higher this year as pension costs are driving employee costs up. "We continue to focus on our move to Terminal 5 in 2008, investing in our products for our customers and driving a competitive cost base to make our company fit for growth.' Revenue in the quarter, at GBP2.3 billion, was up 12.5 percent. Traffic measured in revenue passenger kilometers was up 7.7% on a flying program measured in available seat kilometers up 4.1 percent. This delivered seat factors up 2.7 points at a record 78.3 percent in the quarter. Yield measured as pence per RPK increased by 6.0 percent. Cargo revenue was up 11.6 percent compared with last year, with yields up 7.2 percent and increased volumes, measured in cargo ton kilometers, up 4.1 percent. The flying program was 3.7% larger in available ton kilometers. Total costs were up by 11.8 percent. The rise was largely driven by a 44 percent increase in the cost of fuel and a 7% increase in employee costs due to increased pension costs, severance and pay awards only partially offset by manpower reductions. Unit costs were up 7.9 percent in the same period. At June 30, 2006, the company's balance sheet showed GBP12.4 billion in total assets, GBP10.1 million in total liabilities and GBP2.3 million in stockholders' equity. A full-text copy of British Airways' first quarter 2006 financial results is available at no charge at http://ResearchArchives.com/t/s?f0e About the Company Headquartered in West Drayton, England, British Airways Plc -- http://www.ba.com/-- is the U.K.'s largest international scheduled airline, flying to over 550 destinations. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. BRITISH AIRWAYS: Reports July 2006 Traffic & Capacity Results ------------------------------------------------------------- British Airways Plc disclosed its traffic and capacity statistics for July 2006. In July 2006, passenger capacity, measured in Available Seat Kilometers, was 2.8 percent above July 2005. Traffic, measured in Revenue Passenger Kilometers, was higher by 4.4 percent. This resulted in a passenger load factor up 1.2 points versus last year, to 82.3 percent. The increase in traffic comprised a 11.0 percent increase in premium traffic and a 3.3 percent increase in non-premium traffic. Cargo, measured in Cargo Ton Kilometers, fell by 0.9 percent. Overall load factor increased by 1.2 points to 73.7 percent. Market Conditions Strong revenue is expected to continue, supported by significant promotional activity driving seat factors in all cabins. For the year to March 2007, total revenue is expected to improve by six to seven percent, up from previous guidance of five to six percent due to the impact of record seat factors and better cabin mix. Capacity growth in the first half of the year is expected to be about four percent slowing in the second half of the year to achieve a full year increase of 2.5 - three percent. Costs Fuel costs for the year are now expected to be GBP550 - GBP600 million up on last year. Costs excluding fuel which were previously forecast flat, are now expected to be slightly higher this year as pension costs are driving employee costs up. Strategic Developments British Airways reached agreement with its trade unions to merge its Gatwick based longhaul and shorthaul cabin crew into a single fleet from October this year. The deal provides for significant gains in productivity and staff flexibility and reductions in employee costs estimated at GBP13.2 million a year. At BA's annual general meeting, BA's chairman Martin Broughton said the trustees of the New Airways Pension Scheme (NAPS) had written to the company to say they accept that on-going contributions much in excess of current levels may not be sustainable and that a reduction in future benefits is likely to be required. NAPS has an accounting deficit of GBP2.1 billion. As part of an initial public offering by WNS (HOLDINGS) Ltd on the New York Stock Exchange, British Airways sold its 14.6 percent shareholding in the India based business services company, for net US$ 96 million (approximately GBP52 million). The airline will report a gain on disposal of approximately GBP48 million in second quarter and the proceeds will be used to repay existing gross debt, which at March 31, 2006 amounted to GBP4.1 billion. A new five times a week service is to be launched from Heathrow to Calgary in Canada on Dec. 1. British Airways will also increase flights from Heathrow to JFK from seven to eight per day and increase flights from Heathrow to Sao Paulo in Brazil from seven to 10 each week. British Airways announced an increase in the number of seats available at its record low one-way fare of GBP29 by 500 percent from July 27. Almost two million additional seats are now annually available from Gatwick to Europe at low fares. More than 900,000 are priced from GBP29 one-way (including taxes and charges) and a further 700,000 from GBP34. The airline held a summer sale with up to GBP585 off popular holiday destinations. Flights from London to Bermuda and Antigua began at just GBP299, New York from GBP249 return and Mumbai from GBP299. The airline extended its on-line check-in facility to families and groups of six or less to further minimize waiting time at the airport. About the Company Headquartered in West Drayton, England, British Airways Plc -- http://www.ba.com/-- is the U.K.'s largest international scheduled airline, flying to over 550 destinations. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. BUSINESS INFORMATION: Opts to Voluntary Liquidation --------------------------------------------------- Business Information Technology Services Limited opted on May 10 to voluntarily liquidate the company's assets. D. Hardy of Poppleton & Appleby was appointed Liquidator. The company can be reached at: Business Information Technology Services Limited 75 Longford Road Longford Coventry CV6 6DY United Kingdom Tel: 024 7683 5600 Web: http://www.b-i-t-s.co.uk/ http://www.portalalix.co.uk/ C. J. PEARCE: Appoints Joint Administrators from SFP ---------------------------------------------------- Simon Franklin Plant and Daniel Plant of SFP were appointed joint administrators of C.J. Pearce & Company Limited (Company Number 02969832) on July 5. The administrators can be reached at: SFP 9 Ensign House Admirals Way Marsh Wall London E14 9XQ United Kingdom Tel: 020 7538 2222 Headquartered in Telford, United Kingdom, C.J. Pearce & Company Limited is engaged in general construction and civil engineering. CASTLE LIMITED: Names David Hill as Administrator ------------------------------------------------- David Hill of Begbies Traynor was appointed administrator of Castle (Monmouth) Limited (Company Number 663846) on July 4. 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. Headquartered in Monmouth, United Kingdom, Castle (Monmouth) Limited manufactures cardboard packaging. CHILTON INTERNATIONAL: Names Michael R. Ellingworth Liquidator -------------------------------------------------------------- Michael R. Ellingworth of A & E Business Solutions was named Liquidator of Chilton International Transport Limited on May 11. The company can be reached at: Chilton International Transport Limited Woodcock Heath Kingstone Uttoxeter Staffordshire ST148QS United Kingdom Tel: 01889 500 236 Fax: 01889 500 236 COTT CORPORATION: Forms Two Business Units Under New Structure -------------------------------------------------------------- Cott Corp. reported changes to its senior management structure, roles and responsibilities, as well as the addition of two new executives to its senior management team. Under its new structure, two business units, North America and International, are created to focus on customer management, channel development, sales, and marketing. Leading the North American business unit as president will be John Dennehy, currently Senior Vice President of Sales and Marketing for North America. Mr. Dennehy has more than 25 years of experience in the North American beverage industry and was one of the Company's first U.S. employees when he joined the Company in 1991 and played a key role in the Company's recent North American realignment. Wynn Willard was hired as president for the International business unit. Mr. Willard has extensive senior leadership experience with major international consumer packaged goods companies including Cadbury Schweppes, Nabisco and Hershey Foods. He has been president of Planters Company, chief executive officer of Nabisco Ltd. and most recently, chief executive officer of New World Pasta Company. Clyde Preslar remains as chief financial officer. Mr. Preslar joined the Company in August of last year after spending nine years as chief financial officer of Lance Inc., a U.S. manufacturer of branded and retailer brand snack foods. As a result of the changes, three senior executives will be leaving the Company. The executives are, Mark Benadiba, executive vice president of North American Operations; Colin Walker, senior vice president of Corporate Resources; and Andrew Murfin, Managing Director of the U.K. and Europe. "These three men are highly respected professionals and they should be commended for their significant contributions to Cott," Brent Willis, Cott's president and chief executive officer, said. "We want to thank them for their commitment and dedication to the Company." The Company further disclosed that the senior management changes are effective Aug. 1, 2006. Headquartered in Toronto, Ontario, Canada, Cott Corporation (NYSE:COT; TSX:BCB) -- http://www.cott.com/-- is a non- alcoholic beverage company and a retailer brand beverage supplier. The Company commercializes its business in over 60 countries worldwide, with its principal markets being the United States, Canada, the United Kingdom and Mexico. Cott markets or supplies over 200 retailer and licensed brands, and Company- owned brands including Cott, Royal Crown, Vintage, Vess and So Clear. Its products include carbonated soft drinks, sparkling and flavoured mineral waters, energy drinks, juices, juice drinks and smoothies, ready-to-drink teas, and other non- carbonated beverages. * * * As reported in the Troubled Company Reporter on Feb. 3, Moody's Investors Service downgraded Cott Beverages, Inc.'s Senior Subordinated Regular Bond/Debenture rating to B1 from Ba3 and Cott Corporation's Corporate Family Rating, to Ba3 from Ba2. The ratings outlook is stable, Moody's said. As reported in the Troubled Company Reporter on Jan. 31, 2006, Standard & Poor's Ratings Services lowered its ratings on Cott Corp. by one notch, including its corporate credit rating, to 'BB-' from 'BB'. S&P said the outlook is negative. DIGITAL FIRST: Taps Chantrey Vellacott to Administer Assets ----------------------------------------------------------- John Charles Heath and David John Oprey of Chantrey Vellacott DFK were appointed joint administrators of Digital First Limited (Company Number 03494777) on July 5. Headquartered in Hove, East Sussex, Chantrey Vellacott DFK -- http://www.cvdfk.com/-- is one of the oldest firms of chartered accountants in the United Kingdom. It provides accounting, taxation and related advisory services. Headquartered in Buckinghamshire, United Kingdom, Digital First Limited -- http://www.digitalfirst.co.uk/-- retails camera. EASTMAN KODAK: 2006 Second Quarter Loss Widens to US$282 Million ---------------------------------------------------------------- Eastman Kodak Company reported second-quarter financial results essentially in line with the company's expectations and the achievement of digital profitability two quarters ahead of last year's pace. On the basis of generally accepted accounting principles in the U.S., Kodak expects net cash provided by operating activities this year of US$800 million to US$1 billion, which corresponds with investable cash flow of US$400 million to US$600 million. In connection with its digital transformation, the company continues to incur significant restructuring charges, as expected. Accordingly, the company expects a GAAP loss from continuing operations before interest, other income, net, and income taxes for the full year of US$500 million to US$850 million. This corresponds to digital earnings from operations this year in a range of US$350 million to US$450 million. Consistent with its previously reported emphasis on digital margin expansion, the company revised its 2006 digital revenue growth forecast from a range of 16% to 22% to 10%, reflecting the company's focus on pursuing profitable sales. Total 2006 revenue is expected to be down 3%. The company reported a second-quarter net loss of US$282 million, largely stemming from restructuring charges (US$214 million after taxes) and rising silver costs. The loss is consistent with the company's plan, announced in 2004, to create a digital business model by restructuring its traditional businesses and the associated manufacturing. The company's second-quarter 2006 GAAP pre-tax earnings were essentially unchanged from the previous year. "Our second-quarter results demonstrate continuing progress in the execution of our digital business strategy and the implementation of our digital business model," said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. "We are coming into the final stages of our digital transformation. By the end of next year the majority of the restructuring costs will be behind us and Kodak will be positioned for sustained success in digital markets." For the second quarter of 2006: * Sales totaled US$3.360 billion, a decrease of 9% from US$3.686 billion in the second quarter of 2005. The decline in revenue was primarily in the Film and Photofinishing Systems Group and the Consumer Digital Imaging Group. The Film and Photofinishing Systems Group decline is in line with company expectations, and the decline in the Consumer Digital Imaging Group results from the changing market dynamics, as well as the company's stated goal to emphasize margin expansion over revenue growth. Digital revenue totaled US$1.829 billion, a six-percent increase from US$1.720 billion. Traditional revenue totaled US$1.522 billion, a 22% decline from US$1.950 billion. New Technologies contributed an additional US$9 million in the second quarter, compared with US$16 million in the year-ago quarter. * The company's loss from continuing operations in the quarter, before interest, other income, net, and income taxes, was US$167 million, compared with a loss of US$137 million in the year-ago quarter, largely as a result of increased depreciation expense because of the change in useful life assumptions implemented in the third quarter of 2005. * The GAAP net loss was US$282 million, compared with a GAAP net loss of US$155 million, in the year-ago period. * Digital earnings were US$4 million, compared with a negative US$25 million in the year-ago quarter, primarily because of a year-over-year improvement in the company's Graphic Communications Group. * For the quarter, net cash provided by operating activities on a GAAP basis was US$80 million, compared with a negative US$207 million in the year-ago quarter. Investable cash flow for the quarter was US$15 million, compared with negative US$297 million in the year-ago quarter. * Kodak held US$1.055 billion in cash on its balance sheet as of June 30, compared with US$1.077 billion on March 31, 2006, and US$1.665 billion on Dec. 31, 2005. This is consistent with the company's stated desire to maintain US$1 billion of cash on hand. * Debt decreased US$34 million from the first-quarter level, to US$3.531 billion as of June 30, 2006, and was down US$52 million from the Dec. 31, 2005 level of US$3.583 billion. * Gross Profit was 24.1%, down from 28.2%, primarily because of the negative impact of rising silver prices and higher depreciation costs from changes in the useful lives of certain assets implemented in the third quarter of 2005. 20,500 Positions Eliminated Kodak continues to implement its restructuring program to support the company's goal of building a business model to achieve sustained success in digital markets. This program was first announced in January 2004 and updated in July 2005, and included the elimination of an estimated 25,000 positions and charges totaling US$3 billion. During the second quarter of 2006, the company eliminated 1,630 positions, bringing the program's total to-date to more than 20,500 positions relative to the estimated 25,000. Based on the restructuring actions completed to date, and an understanding of the estimated remaining actions to conclude the restructuring, the company expects that employment reductions and total charges will now be within the range of 25,000 to 27,000 positions and US$3 billion to US$3.4 billion, respectively. The company continues to expect that these actions will be essentially complete by the end of 2007. Evolution of Digital Camera Operating Model The company reached an agreement with Flextronics International Ltd. in order to streamline its digital camera operations. Under this agreement, Kodak will continue to manage high-level system design and advanced research and development for its digital still cameras, and will retain all of its intellectual property. Flextronics will manufacture and distribute Kodak consumer digital cameras on a global basis and will handle certain design and development functions. Flextronics will also manage the operations and logistics services for Kodak's digital still cameras. This is consistent with Kodak's effort to drive further improvements in the operating model of its Consumer Digital Imaging Group. Also under the agreement, approximately 550 Kodak personnel are expected to be transferred to Flextronics facilities. "This evolution in our digital capture operating model is consistent with our strategy and will enable us to compete in this business with greater flexibility, cost efficiency and predictability," said Mr. Perez. "It will support our margin expansion efforts and enable us to better serve our customers and consumers by delivering Kodak's innovative digital products through the world class operations of Flextronics." Kodak plans to provide a detailed update on its transformation during its Annual Strategy Review meeting scheduled for Nov. 15, 2006 in New York City. About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Company -- http://www.kodak.com/-- is a worldwide vendor of imaging products and services. The company is committed to a digitally oriented growth strategy focused on four businesses: Digital & Film Imaging Systems - providing consumers, professionals, and cinematographers with digital and traditional products and services; Health -- supplying the medical and dental professions with traditional and digital imaging and information systems, IT solutions, and services; Graphic Communications - providing customers with a range of solutions for prepress, traditional and digital printing, document scanning, and multi-vendor IT services; and Display & Components - supplying original equipment manufacturers with imaging sensors as well as intellectual property and materials for the organic light- emitting diode and LCD display industries. * * * As reported in the Troubled Company Reporter on May 25, 2006, Fitch downgraded Eastman Kodak's Issuer Default Rating to 'B' from 'BB-' and the company's senior unsecured debt to 'B-' from 'B+' on May 16, 2006. The Outlook remains Negative. The ratings reflected Fitch's growing concern regarding EK's ability to generate profitable organic digital revenue growth and sufficient free cash flow to offset continual declines in the company's traditional business. As reported in the Troubled Company Reporter on May 9, 2006, Moody's Investors Service placed the ratings of the Eastman Kodak Company on review for possible downgrade. Ratings placed on Review for Possible Downgrade included the Company's Corporate Family Rating at B1; Senior Unsecured Rating at B2; and Senior Secured Credit Facilities at Ba3. EASYFLEET LIMITED: Appoints David Rubin as Joint Administrators --------------------------------------------------------------- Paul Appleton and Asher Miller of David Rubin & Partners were appointed joint administrators of Easyfleet Limited (Company Number 5185003) on July 4. David Rubin & Partners -- http://www.drpartners.com/-- specializes in corporate and personal insolvency, recovery, forensic accounting and litigation support. Headquartered in Peterborough, United Kingdom, Easyfleet Limited is engaged in car hire and chauffeur services. GUS PLC: Asks Noteholders to Tender GBP350-Mln 5.625% Notes ----------------------------------------------------------- GUS plc is inviting holders of its GBP350,000,000 5.625% Notes due 2013 to offer to sell any or all of their Notes to the Company. The offer is at a price of 100% of their principal amount plus accrued and unpaid interest up to, but excluding, the settlement date, which is currently expected to be on Sept. 7. The invitation will expire at 12:00 noon on Sept. 5. "We are giving the Noteholders a choice," David Tyler, Group Finance Director, commented. "If they are truly concerned about a risk of default and want their money back, we will repay them promptly: they should either approach the Trustee or respond to our tender offer. We have a committed bank facility which we can use to repay the Notes, and none of our other debt would cross-default." As reported in TCR-Europe on Aug. 3, HSBC Holdings Plc, the trustee for GUS Plc's bondholders, warns that GUS will default on its GBP350 million 5.625% bonds due 2013 should shareholders approve a plan to split the company into two, Steve Rothwell writes for Bloomberg News. London-based GUS intends to separate its Experian credit- information unit from the Argos and Homebase store divisions, Mr. Rothwell reports citing a notice from HSBC Trustee (C.I.) Ltd. Noteholders are advised to refer to the Invitation Memorandum for the full terms and conditions of the invitation. Noteholders may obtain copies of the Invitation Memorandum from the Tender Agent: Lucid Issuer Services Limited Tel: +44 20 7704 0880 E-mail: gus@lucid-is.com The Invitation Memorandum is also available for inspection at the UK Listing Authority's Document Viewing Facility which is situated at: Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS United Kingdom About the Company Headquartered in London, England, GUS Plc -- http://www.gusplc.com/-- is a retail and business services group. Its activities comprise general merchandise retailing through Argos Retail Group and information and customer relationship management services through Experian. ARG is the UK's leading multi-brand, multi-channel retailer. It has two major businesses, Argos and Homebase. Experian is a global leader in the market for information solutions. It supports clients in more than 60 countries. HUMANWORLD LIMITED: Taps Donald Bailey to Liquidate Assets ---------------------------------------------------------- Donald Bailey of Begbies Traynor was appointed Liquidator of Humanworld Limited at an extraordinary general meeting on April 28. The company can be reached at: Humanworld Limited Peel House Peel Road Skelmersdale Lancashire WN8 9PT United Kingdom Tel: 01695 555 300 KRONOS INT'L: Parent Posts US$13.6-Mln Net Income in 2nd Quarter ---------------------------------------------------------------- Kronos Worldwide Inc., the parent company of Kronos International, reported a US$13.6 million net income for the second quarter of 2006, compared with a US$32.9 million net income in the second quarter of 2005. For the first six months of 2006, Kronos reported net income of US$28.6 million, compared with net income of US$54.3 million in the first six months of 2005. Net sales of US$345.1 million in the second quarter of 2006 were US$33.4 million, or 11%, higher than the second quarter of 2005. Net sales of US$649.4 million for the first six months of 2006 were US$45.9 million, or 8%, higher than the first six months of 2005. Net sales increased in the second quarter of 2006 primarily due to higher TiO2 sales volumes, partially offset by lower average TiO2 selling prices, and the unfavorable effect of fluctuations in foreign currency exchange rates, which decreased sales by approximately US$4 million. TiO2 segment profit for the second quarter of 2006 was US$38.4 million compared with US$59.2 million in the second quarter of 2005, and was US$74.6 million for the first six months of 2006 compared with US$107.2 million for the first six months of 2005. Segment profit decreased in the second quarter of 2006, compared to the second quarter 2005, due to the net effects of lower average TiO2 selling prices, higher manufacturing costs, particularly raw materials and energy costs, higher sales volumes, and the effect of fluctuations in foreign currency exchange rates, which negatively impacted segment profit comparisons by approximately US$11 million. TiO2 sales volumes in the second quarter 2006 increased 14% from the second quarter of 2005, primarily due to higher sales volumes in the US, Europe and export markets offsetting the effects of lower sales volumes in Canada. TiO2 sales volumes for the first six months of 2006 increased 11% from the first six months of 2005. TiO2 production volumes were 2% and 3% higher in the second quarter and first six months of 2006 respectively, as compared to the same periods in 2005, with operating rates at near full capacity in all periods. At June 30, 2006, finished goods inventories, which represented approximately 2 months of average sales, were lower compared to March 31, 2006. TiO2 sales and production volumes in the first six months of 2006 were both records for Kronos. In April 2006, Kronos International issued an aggregate of EUR400 million principal amount of new 6.5% Senior Secured Notes due April 2013. KII used the proceeds from the issuance of the 6.5% Senior Secured Notes to redeem all of its 8.875% Senior Secured Notes in May 2006 at 104.437% of the aggregate principal amount of EUR375 million. The company recognized a US$22.3 million pre-tax charge (US$14.8 million, or US$.30 per diluted share, net of income tax benefit) in the second quarter of 2006 related to the early extinguishment of the 8.875% Senior Secured Notes. Other interest income increased for the second quarter and the first six months of 2006, due primarily to the interest earned from the net proceeds of the new 6.5% Senior Secured Notes which were held in escrow for approximately one month until the 8.875% Senior Secured Notes were redeemed. Income tax benefit in the first six months of 2006 includes an aggregate tax benefit of US$12.6 million, or US$.26 per diluted share (US$11.6 million, or US$.24 per diluted share, for the second quarter of 2006) related to the withdrawal of certain income tax assessments previously made by the Belgian and Norwegian tax authorities, the favorable resolution of certain income tax issues related to our German and Belgian operations and the enactment of a reduction in the Canadian federal income tax rate. About the Company Kronos International Inc. -- http://www.kronostio2.com/-- is a wholly owned subsidiary of Kronos Worldwide, Inc., headquartered in Dallas, Texas and produces titanium dioxide (TiO2) pigments in Europe. Kronos International Inc. conducts Kronos Worldwide's titanium dioxide pigments operations in Europe. * * * As reported in TCR-Europe on April 7, Standard & Poor's Ratings Services assigned its 'B+' rating to Kronos International Inc.'s EUR400 million senior secured notes issue due 2013. At the same time, the rating was placed on CreditWatch with negative implications. The senior secured notes also carry Fitch's BB ratings. LANSBOROUGH LTD.: Names G. D. Sharma as Administrator ----------------------------------------------------- G. D. Sharma of Sharma & Co. was named administrator of Lansborough Ltd. (Company Number 3304875) on July 6. The administrator can be reached at: Sharma & Co. 50 Newhall Street Birmingham West Midlands B3 3QE United Kingdom Tel: 0121 248 5007 Fax: 0121 248 5010 E-mail: gagen@sharmaandco.com Headquartered in Mereyside, United Kingdom, Lansborough Limited retails footwear and leather goods. LAZARD LTD: June 30 Balance Sheet Upside-Down By US$745 Million ------------------------------------------------------------- Lazard Ltd reported its financial results for the first six months and second quarter ended June 30, 2006. At June 30, 2006, the Company's balance sheet showed US$2.1 billion in total assets and US$2.8 billion in total liabilities resulting in US$745 million stockholders' deficit. For the second quarter of 2006, pro forma net income, assuming full exchange of outstanding exchangeable interests, increased 97% to US$62.9 million from US$32 million for the second quarter of 2005. Financial Advisory revenue increased 24% compared to the second quarter of 2005 and increased 18% compared to the first quarter of 2006. Asset Management revenue increased 19% compared to the second quarter of 2005. Operating revenue for the second quarter of 2006 increased 24% to US$410.8 million compared to US$330.1 million for the second quarter of 2005. Operating income increased 49% to US$84.7 million for the second quarter of 2006, including a gain of approximately US$5.3 million from the termination of our joint venture relationship in Italy, compared to pro forma US$57 million for the second quarter of 2005. Net income before exchange of outstanding exchangeable interests increased 97% to US$23.5 million for the second quarter of 2006 compared to pro forma income from continuing operations of US$12.0 million for the second quarter of 2005. Pro forma net income, assuming full exchange of outstanding exchangeable interests, increased 82% to US$115.4 million for the first six months of 2006 from US$63.3 million for the first six months of 2005. For the first six months of 2006, operating revenue increased 28% to US$762 million compared to US$595.7 million for the first six months of 2005, resulting from growth in both Financial Advisory and Asset Management businesses. For the first six months of 2006 compared to the first six months of 2005, Financial Advisory revenue increased 31% and Asset Management revenue increased 15%. Operating income increased 72% to US$162.8 million for the first six months of 2006, including a gain of approximately US$5.3 million from the termination of our joint venture relationship in Italy, compared to pro forma US$94.5 million for the comparable 2005 period. Net income before exchange of outstanding exchangeable interests increased 82% to US$43.2 million compared to pro forma income from continuing operations of US$23.7 million for the first six months of 2005. "Lazard's strong results reflect our leadership position in Financial Advisory, as we continue to advise on some of the most complex and important transactions" said Bruce Wasserstein, Chairman and Chief Executive Officer of Lazard Ltd. "Our results also show the steady progress of our Asset Management business, as we continue to win new mandates with expanded product offerings. We are focused on creating value for our shareholders. Our approach is to apply intellectual rigor and creativity to all parts of our business." "We are pleased to report another strong quarter and record financial performance year-to-date," noted Steven J. Golub, Lazard's Vice Chairman. "Lazard's success is a result of continued demand for world-class, independent advice, our retention and attraction of top talent, momentum in our Asset Management business and our continued focus on cost containment. We believe we continue to be positioned for long-term growth." The Company's quarterly revenue and profits can fluctuate materially depending on the number, size and timing of completed transactions on which it advised, as well as seasonality and other factors. Accordingly, the revenue and profits in any particular quarter may not be indicative of future results. As such, Lazard management believes that annual results are the most meaningful. (a) Operating revenue excludes interest expense relating to financing activities and revenue relating to the consolidation of LAM General Partnerships, each of which are included in net revenue. (b) Operating income is after interest expense and before income taxes and minority interests. Lazard Ltd. -- http://www.lazard.com/-- one of the world's preeminent financial advisory and asset management firms, operates from 29 cities across 16 countries in North America, Europe, Asia, Australia and South America. With origins dating back to 1848, the firm provides services including mergers and acquisitions advice, asset management, and restructuring advice to corporations, partnerships, institutions, governments, and individuals. LEWIS PLASTICS: Creditors Confirm Liquidator's Appointment ---------------------------------------------------------- Creditors of Lewis Plastics (Fabrications) Limited confirmed the appointment of Stephen Robert as Liquidator on May 10. The company can be reached at: Lewis Plastics (Fabrications) Limited Grosvenor House North Lane Aldershot Hampshire GU124QG United Kingdom Tel: 01252 350 011 Fax: 01252 344 144 NOVELIS INC: Obtains US$2.85-Bln Financing Pledge from Citigroup ---------------------------------------------------------------- Novelis Inc. obtained commitments for backstop financing facilities totaling US$2.855 billion from Citigroup Global Markets Inc. As reported in the Troubled Company Reporter on July 27, Novelis received a notice of default from the trustee for its 7-1/4% Senior Notes due 2015. This action resulted from the financial restatement and review by Novelis and the subsequent delay in filing its financial statements, which created a breach of its bond covenants. The notice of default triggers a 60-day period within which the Company can cure the default by filing the delayed reports. Novelis stated that it is working towards this goal; however, there can be no assurance of achievement and, therefore, the Company has taken the step of securing commitments for the backstop agreement from Citigroup. As previously disclosed, the notice of default also accelerates the deadlines for filing the delayed reports under the Company's existing Credit Agreement waiver to 30 days from the date of receipt of the notice. Novelis will request a waiver from its Credit Agreement lenders to extend the deadline for filing these financial reports. In the event that Novelis is not able to file its delayed reports by the deadlines defined in the notice of default and in its Credit Agreement waiver, the backstop financing facilities would provide the funding necessary to retire the Senior Notes and, if needed, replace the Company's existing term loan and revolving credit facility. The commitments by Citigroup under the commitment letter are subject to the satisfaction of customary conditions precedent for financings of this type. About Novelis Based in Atlanta, Georgia, Novelis Inc. (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. Novelis Europe provides its markets with value-added sheet and light gauge products through a network of 14 plants. The construction and industrial market represents Novelis Europe's largest end-use application. The company supplies plain and painted sheet for building products such as roofing, siding, panel walls and shutters. In addition, Novelis Europe is a global leader in the production of lithographic sheet, a specialized product requiring technical production. It is a leading supplier as well of foil and beverage can sheet in Europe, and is one of the major suppliers for ultra thin gauge foil for aseptic liquid packaging for milk and juices. And finally, Novelis is a leading supplier to the European transportation end-use market. Furthermore, Novelis is a leading recycler of aluminum with Europe's largest dedicated beverage can recycling plant at Latchford, U.K. * * * As reported in the Troubled Company Reporter on May 18, 2006, Moody's Investors Service placed the ratings of Novelis Inc., and its subsidiary, Novelis Corp., under review for possible downgrade. In a related rating action, Moody's changed Novelis Inc's speculative grade liquidity rating to SGL-3 from SGL-2. Novelis Corporation's Ba2 senior secured bank credit facility rating was placed on review for possible downgrade. Novelis Inc.'s Ba3 corporate family rating; Ba2 senior secured bank credit facility and B1 senior unsecured regular bond/debenture were placed on review for possible downgrade. OAKTRAIL LIMITED: Creditors Confirm Voluntary Liquidation --------------------------------------------------------- Creditors of Oaktrail Limited confirmed on May 5 resolutions for voluntary liquidation together with the appointment of Allan Cooper and Andrew Philip Wood of The P&A Partnership as Joint Liquidators. The company can be reached at: Oaktrail Limited Berkeley House Berkeley Road Leeds LS8 3RU United Kingdom Tel: 0113 248 0400 Fax: 0113 235 0124 P & S ORGAN: Taps Marriotts LLP to Administer Assets ---------------------------------------------------- Kevin Thomas Brown and Anthony Harry Hyams of Marriotts LLP were appointed joint administrators of P & S Organ Supply Company Limited (Company Number 01988477) on July 4. The administrators can be contacted at: Marriotts LLP Allan House 10 John Princes St London W1G 0JW United Kingdom Tel: 020 7495 2348 Headquartered in Suffolk, United Kingdom, P & S Organ Supply Company Limited supplies pipe organs. R & N Motors: Hires Liquidator from Arrans ------------------------------------------ Robert Gibbons of Arrans was appointed Liquidator of R & N Motors Limited at an extraordinary general meeting on May 4. The company can be reached at: R & N Motors Limited Unit 2 Eden Street Industrial Estate Eden Street Coventry West Midlands CV6 5HE Tel: 024 7666 2457 REDPC LIMITED: Joint Liquidators Take Over Operations ----------------------------------------------------- Stewart Trevor Bennett and James Preston Bradney were appointed Joint Liquidators of RedPc Limited on May 5 by resolutions of members and creditors. The company can be reached at: RedPc Limited 286A Chase Road London N14 6HF United Kingdom Tel: 0871 424 2600 REFCO INC: US Trustee Restructures Official Creditors' Committee ---------------------------------------------------------------- Diana G. Adams, the acting United States Trustee for Region 2, reconstitutes the Official Committee of Unsecured Creditors as of July 21, 2006. The Creditors Committee is now composed of: 1. Wells Fargo National Association, as Indenture Trustee 6th Street, Marquette Ave., MAC N9303-120 Minneapolis, Minnesota 55479 Attention: Julie J. Becker, Vice President Phone: (612) 316-4772 2. D.E. Shaw & Co., LP 120 West 45th Street New York 10035 Attention: Marc Sole Phone: (212) 478-0179 3. Esopus Creek Advisors 500 Fifth Avenue, Suite 2620 New York 10110 Attention: Joseph Criscione Phone: (212) 302-7214 About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal United States and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for Chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its Chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the Chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). REFCO INC: Chapter 11 Trustee Hires Capstone as Advisor ------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York authorizes Marc S. Kirschner, the Chapter 11 trustee overseeing Refco Capital Markets, Ltd.'s estate, to employ Capstone Advisory Group, LLC, as his financial advisor with respect to inter-creditor and inter-Debtor issues, including intercompany claims, where the RCM Trustee determines that RCM's interests may conflict with those of the other Chapter 11 Debtors. Capstone's scope of services will be limited to performing confirmatory due diligence and analysis of compilations of information produced by Goldin Associates LLC, and APS Service LLC, with respect to claims arising out of transactions between: (i) RCM and one or more of the Other Chapter 11 Debtors and non-debtor affiliates or subsidiaries of Refco, Inc.; or (ii) two or more of the Other Chapter 11 Debtors and Refco's non-debtor affiliates. Capstone will not provide any services to the RCM Trustee unless and until the analysis of the Intercompany Claims has progressed to the point where it can be furnished to Capstone by Goldin or APS on the RCM Trustee's instruction. At that time, however, Capstone will be permitted to perform its confirmatory due diligence and advise the RCM Trustee with respect to reviewing, analyzing, and inquiring of Goldin or APS about their work product and back up materials and processes. Capstone may be compensated in accordance with the Engagement Letter, subject to applicable requirements for payment of fees and disbursements under the Bankruptcy Code, the Bankruptcy Rules, guidelines promulgated by the United States Trustee, the rules and other Court orders. As reported in the Troubled Company Reporter on July 7, 2006, Mr. Kirschner told the Court that there are significant intercreditor and other issues, including intercompany claims, which are unique to RCM and with respect to which RCM's interests are, or may be, in direct conflict with the interests of the other Chapter 11 Debtors' estates and stakeholders. Capstone will: a. assist the Trustee with analysis of RCM's books and records relating to intercompany transactions, intercompany accounting and related accounts of RCM; b. advise the Trustee regarding any proposed transactions affecting the RCM estate or the resolution of the RCM case; c. advise the Trustee regarding negotiations with stakeholders; d. assist the Trustee and his counsel in negotiating and effecting a comprehensive resolution of the RCM bankruptcy; e. perform other necessary financial advisory services for the Trustee in connection with the Chapter 11 case; and f. provide valuation work and expert testimony as determined by the Trustee to be necessary. Capstone will be paid based on the actual hours worked charged at its standard hourly rates and reimbursed for its out-of- pocket expenses. The firm's current rates are: Position Hourly Rate -------- ----------- Executive Director US$530 - US$575 Staff US$250 - US$450 Support Staff US$75 - US$175 Capstone professionals who will have primary responsibility for representing the Trustee are: Professional Position at Capstone ------------ -------------------- David Galfus Member and Executive Director Robert Manzo Executive Director Jack Surdoval Managing Director Other Capstone professionals may assist in the representation as needed. Mr. Galfus attests that Capstone: (i) is not a creditor, an equity security holder or an insider of RCM, or any other Chapter 11 Debtor; (ii) is not and was not within two years before the Petition Date, a director, officer or employee of RCM or any other Chapter 11 Debtor; and (iii) does not hold or represent any interest that is materially adverse to the interest of the RCM estate or of any class of creditors or equity security holders. Capstone's professionals have played significant roles in many of the largest and most complex cases under the Bankruptcy Code, including the chapter 11 cases of Adelphia Communications Corporation, Ames Department Stores, Inc., Enron Corp., Federal Mogul, Inc., Mirant Energy, Inc., Owens Corning, Inc., Vencor, Inc., and W.R. Grace. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for Chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported $16.5 billion in assets and $16.8 billion in debts to the Bankruptcy Court on the first day of its Chapter 11 cases. Refco LLC, an affiliate, filed for Chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the Chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s Chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for Chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). REFCO INC: Ch. 7 Trustee Can Reimburse US$749,579 to Refco Group ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of new York authorizes Albert Togut, the Chapter 7 Trustee appointed to oversee the liquidation of Refco, LLC's estate, to reimburse US$747,579 to Refco Group Ltd., LLC, for payments made to holders of mechanic's lien claims. As reported in the Troubled Company Reporter on July 7, 2006, Mr. Togut, West Loop Associates LLC and the Contractors, Alps Construction, Inc., KCE Ltd. and Griswold, Heckel & Kelly Associates, Inc., reached a comprehensive settlement to resolve West Loop's request, the Mechanic's Liens and the Claims. In a Court-approved stipulation each of the Contractors agreed to: (i) reduce by 5% the outstanding principal amount of each of its Claim pertaining to the Properties; (ii) waive all attorney's fees and accrual of any interest to which each Contractor may be entitled; (iii) take the necessary steps to discharge and release the Mechanic's Liens so that the threatened default against West Loop may be averted; (iv) release Refco LLC from any further claims relating to the Contracts, the Mechanic's Liens, and their Claims; (v) withdraw their Claims against Refco LLC; and (vi) file no additional proofs of claim against Refco LLC. Refco Group will pay the Contractors US$747,579 in the aggregate in full satisfaction of the Mechanic's Liens, the Claims, and any other amounts due in connection with the Contracts. West Loop's Motion to Compel West Loop had asked the Court to compel Refco Group to comply with its postpetition lease obligations. Refco Group leases seven floors of an 18-story office building owned by West Loop in the central business district of Chicago, Illinois. Refco, LLC, occupied some or all of the leased premises. Refco Group continues to occupy the Premises pursuant to a March 2006 Stipulated Order among Debtors, West Loop and Man Financial, Inc. The Stipulated Order contemplates rejection of the Lease effective August 15, 2006. Sidney P. Levinson, Esq., at Hennigan, Bennett & Dorman LLP, in Los Angeles, California, contends that until the effective rejection date, RGL is required "to timely perform all obligations under the Lease to the extent required by Section 365(d)(3) of the Bankruptcy Code. Among those obligations, Mr. Levinson said, is a Lease covenant to either discharge or bond any mechanic's liens filed against the Property as a result of work performed or alleged to have been performed on the Premises. Mr. Levinson noted that Refco LLC has entered into a series of agreements with Alps Construction, Inc., KCE Ltd. and Griswold, Heckel & Kelly Associates, Inc., for the construction work to be performed at the leased Premises. The Contractors have sought relief from the bankruptcy stay to commence a foreclosure action in Illinois against RGL, Refco LLC, and West Loop. The Contractors assert that Refco LLC or RGL failed to pay for the work, leaving a balance in excess of US$700,000, including amounts owed for work that was not completed until nearly one month after RGL's bankruptcy filing. The Contractors have filed mechanic's liens of more than US$700,000 against the Property. Although the Bankruptcy Court denied the Contractors' request, the ruling did not fully resolve the problems West Loop faced. Mr. Levinson relates that by letter dated April 19, 2006, West Loop's mortgage lender, Greenwich Capital Financial Products, Inc., issued a notice of default to West Loop based on the existence of the Mechanic's Liens. The notice of default provides that, unless the Mechanic's Liens are discharged or bonded, West Loop will be held in default under its purchase money loan agreement dated October 7, 2005. Unless the Court compels RGL to discharge or bond the Mechanic's Liens, West Loop and, by consequence, RGL's estate will suffer substantial damages that could and should otherwise be avoided if RGL complies with its lease obligations, Mr. Levinson told Judge Drain. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for Chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported $16.5 billion in assets and $16.8 billion in debts to the Bankruptcy Court on the first day of its Chapter 11 cases. Refco LLC, an affiliate, filed for Chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the Chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s Chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for Chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). RO-TECH ENGINEERING: Appoints Barry P. Knights as Liquidator ------------------------------------------------------------ Barry P Knights of Knights & Company was appointed Liquidator of Ro-Tech Engineering & Fabrication Limited on May 9. The company can be reached at: 16a Klondyke Industrial Estate Rushenden Road Queenborough Kent ME11 5HN Tel: 01795 666601 SINGAPORE SAM: Appoints Begbies Traynor as Administrators --------------------------------------------------------- Vivian Murray Bairstow and David Paul Hudson of Begbies Traynor (South) LLP were appointed joint administrators of Singapore Sam PLC (Company Number 02278138) on July 6. 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. Singapore Sam PLC can be reached at: Eastgate Food Hall Basildon Essex SS14 1BE United Kingdom Tel: 01268 534 711 SOUTHERN PACIFIC: S&P Places Low-B Ratings on Watch Positive ------------------------------------------------------------ Standard & Poor's Ratings Services placed on CreditWatch with positive implications its credit ratings on the subordinate classes issued by Southern Pacific Securities F PLC, Southern Pacific Securities G PLC, Southern Pacific Securities H PLC, Southern Pacific Securities 04-1 PLC, and Southern Pacific Financing 04-A PLC. The senior class A notes in each transaction are unaffected by these CreditWatch placements. The CreditWatch placements follow initial reviews of the most recent information received by Standard & Poor's for each transaction. This analysis showed that the likelihood of positive rating actions has increased for all the classes listed below. Levels of credit enhancement available to all the classes of notes placed on CreditWatch positive have improved and the underlying collateral continues to perform well. Standard & Poor's has recently received loan-level data for all of these transactions and will now carry out a more detailed loan-level and cash flow analysis to investigate whether any or all of these notes can attain a higher rating. The results of this review and any changes in the ratings are expected within three months of this media release. The notes, issued between 2003 and 2004, are backed by portfolios of first-ranking residential mortgages secured over properties in the U.K. Ratings List Ratings Placed On CreditWatch With Positive Implications Class Rating ----- ------ To From -- ---- Southern Pacific Securities F PLC US$262 Million, GBP94.1 Million And EUR132 Million Mortgage-Backed Floating-Rate Notes M1 AA-/Watch Pos AA- M2 AA-/Watch Pos AA- Southern Pacific Securities G PLC EUR147 Million, GBP126.5 Million and US$282 Million Mortgage-Backed Floating-Rate Notes M AA+/Watch Pos AA+ B A/Watch Pos A Southern Pacific Securities H PLC EUR220.1 Million, GBP115.35 Million and US$99 Million Mortgage-Backed Floating-Rate Notes M1 BBB+/Watch Pos BBB+ M2 BBB+/Watch Pos BBB+ B BB+/Watch Pos BB+ Southern Pacific Securities 04-1 PLC GBP215.2 Million, EUR325.7 Million, and US$310 Million Mortgage-Backed Floating-Rate Notes M BBB+/Watch Pos BBB+ B BB+/Watch Pos BB+ Southern Pacific Financing 04-A PLC GBP350 Million Mortgage-Backed Floating-Rate Notes B AA/Watch Pos AA C A/Watch Pos A D BBB/Watch Pos BBB E BB/Watch Pos BB STRAND LIGHTING: Brings In KPMG as Joint Administrators ------------------------------------------------------- Jane Bronwen Moriarty and Blair Carnegie Nimmo of KPMG LLP were appointed joint administrators of Strand Lighting Limited (Company Number 00068713) on July 11. KPMG -- http://www.kpmg.co.uk/-- in the UK is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the UK providing audit, tax and advisory services. Headquartered in Fife, United Kingdom, Strand Lighting Limited is engaged in lighting manufacturing. TELEVISION & DOMESTIC: Begins Liquidation Procedure --------------------------------------------------- Television & Domestic Services (Hayes) Limited is voluntarily liquidating its assets after it has been proven that the company could no longer continue its operations due to liabilities. Keith Aleric Stevens of Wilkins Kennedy was appointed Liquidator. The company can be reached at: Television & Domestic Services (Hayes) Limited 1178 Uxbridge Road Hayes Middlesex UB4 8JB United Kingdom Tel: 020 8573 5666 Fax: 020 8561 3387 WESTWOODS LIMITED: Taps Menzies to Administer Assets ---------------------------------------------------- Andrew John Duncan and Andrew Gordon Stoneman of Menzies Corporate Restructuring were appointed joint administrators of Westwoods (Garden) Limited (Company Number 3185932) on July 10. Headquartered in London, Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- is a member of Moores Rowland International, an association of independent accounting firms throughout the world with some 20,800 partners and staff, operating from 628 offices in 92 countries. MRI, which is ranked 8th amongst the leading international accounting associations, achieved global revenues of US$1,800 million in 2003. Westwoods (Garden) Limited can be reached at: 6 Peerglow Centre Marsh Lane Ware Hertfordshire SG12 9QL United Kingdom Tel: 01920 469 400 Fax: 01920 469 401 * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (182) Rhi AG (214) 1,756 183 BELGIUM ------- City Hotels CITY.BR (7) 210 (15) Real Software REAL.BR (49) 142 (34) Sabena S.A. (86) 2,215 (297) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Acces Industrie (8) 106 (35) Arbel PA.ARB (98) 222 (72) Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Charbo De France (3,872) 4,738 (2,868) Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Compagnies de Machines Bull (139) 137 (6) Dollfus Mieg & Cie S.A. DS (11) 165 (29) Euro Computer System (110) 682 377 Genesys S.A. GNS.PA (15) 136 3 Grande Paroisse S.A. (927) 629 330 Immob Hoteliere (68) 233 29 Labo Dolisos DOLI.PA (28) 110 (33) Matussiere et Forest S.A. MTF (78) 294 (28) Metaleurop S.A. PA.PA (24) 181 (30) Oeneo S.A. SABT.PA (12) 292 38 Pneumatiques Kleber S.A. (34) 480 139 SDR Centrest (132) 252 N.A. SDR Picardie (135) 413 N.A. Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Teamlog TLO (19) 109 (3) Trouvay Cauvin (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Cognis Deutschland GmbH & Co. KG (102) 3,409 (503) Dortmunder Actien-Brauerei DABG (13) 118 (29) EM.TV AG EV4G.BE (22) 849 15 F.A. Guenther & Son AG GUSG (8) 111 N.A. Kaufring AG KAUG (19) 151 (51) Maternus Kliniken AG MAK.F (3) 207 (30) Nordsee AG (8) 195 (31) Primacom AG PRIG (268) 1,257 (1,048) Rinol AG RLIG (64) 104 (15) Schaltbau Hold SLTG (23) 144 (7) Senator Entertainment AG SENGk.BE (153) 126 (148) SinnLeffers AG WHGG (4) 454 (145) Spar Handels- AG SPAG (442) 1,433 (234) Vivanco Gruppe (55) 131 (31) HUNGARY ------- NABI Rt. NABHY (2) 229 (8,950) ICELAND ------- Decode Genetics Inc. DCGN (9) 229 141 ITALY ----- Binda S.p.A. BND (11) 129 (20) Cirio Finanziaria S.p.A. (422) 1,583 (396) Credito Fondiario e Industriale S.p.A. (200) 4,218 N.A. Finpart S.p.A. (152) 732 (322) Gruppo Coin S.p.A. GC (150) 4,218 N.A. I Viaggi del Ventaglio S.p.A. VVE.MI (61) 487 (58) Olcese S.p.A. OLCI.MI (13) 180 (64) Parmalat Finanziaria S.p.A. (18,419) 4,121 (12,481) Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (24) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Mostostal Zabrze MECOF.PK (6) 227 (366) ROMANIA ------- Oltchim RM Valce OLT (45) 232 321) RUSSIA ------ OAO Samaraneftegas (332) 892 (16,942) Zil Auto (168) 409 (10,680) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 Sniace S.A. (16) 136 (34) SWITZERLAND ----------- Wedins Skor Accessoarer AB (10) 139 (129) TURKEY ------ Nergis Holding (24) 125 26 Yasarbank (948) 623 N.A. UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) AEA Technology Plc AAT.L (24) 340 (50) Alldays Plc (120) 252 (202) Amey Plc (49) 932 (47) Anker PLC ANK.L (22) 115 13 Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) British Energy Plc BGY (5,823) 4,921 434 British Nuclear Fuels Plc (4,248) 40,326 977 British Sky Broadcasting Group Plc BSY (61) 4,157 139 Compass Group CPG (668) 2,972 (298) Costain Group COST (39) 567 (5) Danka Bus System DNK.L (108) 540 34 Dawson Holdings DWN.L (12) 158 (19) Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (1,411) 3,235 (331) Euromoney Institutional Investor Plc ERM.L (88) 297 (56) European Home Retail Plc EHRL (14) 111 (37) Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Gondola Holdings Plc GND.L (239) 987 (396) Heath Lambert Fenchurch Group Plc (10) 4,109 (10) HMV Group Plc HMV (9) 875 (190) Homestyle Group Plc HME (29) 409 (124) Imperial Chemical Industries Plc ICI (835) 8,881 (49) Invensys PLC (963) 4,861 913 IPC Media Ltd. (685) 254 16 Jarvis Plc JRVS.L (683) 492 (371) Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United LDSUF.PK (73) 144 (29) M 2003 Plc (2,204) 7,205 (756) Manchester City (17) 154 (21) Micro Focus International Plc MCRO.L (14) 115 (11) Misys Plc MSY (460) 906 60 Mytravel Group MT.L (283) 1,159 (410) Orange Plc ORNGF (594) 2,902 7 Park Group Plc PKG.L (5) 111 (13) Partygaming Plc PRTY (46) 398 (110) Premier Foods Plc PFD.L (31) 1,475 16 Probus Estates Plc PBE.L (28) 113 (49) Regus Plc RGU.L (46) 367 (60) Rentokil Initial Plc RTO (1,134) 2,678 (45) RHM Plc RHM (586) 2,411 59 Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 SFI Group (108) 178 (162) Telewest Communications Plc TLWT (3,702) 7,581 (5,361) UK Coal Plc UKC (25) 865 (62) Virgin Mobile Holdings Plc VMOB.L (101) 278 (80) Each Tuesday edition of the TCR-Europe contains a list of companies with insolvent balance sheets based on the latest publicly available balance sheet available to our editors at the time of publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel Laureno, Julybien Atadero, Carmel Zamesa Paderog, and Joy Agravante, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *