/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060809.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 Wednesday, August 9, 2006, Vol. 7, No. 157 Headlines A U S T R I A ESLARNGASSE 25: Innsbruck Court Orders Closing of Business GO-TRANS: Claims Registration Period Ends September 4 GOLFANLAGEN BAD: Property Manager Declares Insufficient Assets PRISMA: Creditors' Meeting Slated for August 21 STUKKATEUR: Creditors' Meeting Slated for August 10 TIMPOL: Creditors' Meeting Slated for August 18 TROCKENBAU - GRBIC: Creditors' Meeting Slated for August 22 F R A N C E ALCATEL SA: Inks EUR30-Million Contract with Iraq's ITPC ALLIANZ GLOBAL: Creditors to Vote on Scheme on Oct. 27 UNION DE BANQUES: Fitch Lifts Individual Rating to C G E R M A N Y ALERIS INT'L: Closes Purchase on Corus Group's Aluminum Business ALERIS INT'L: Completes Tender Offer on 10-3/8% & 9% Sr. Notes ARC AAS: Claims Registration Ends September 4 BOEDEN BERLIN: Creditors' Meeting Slated for August 24 FRESENIUS MEDICAL: Earns US$130 Million Net Income in 2nd Qtr. GASTRODOM GMBH: Claims Registration Ends September 5 GRUNDSTUECKSGESELLSCHAFT ADLERSHOF: Meeting Slated for Aug. 24 KLEEMANN & SCHOETTNER: Claims Registration Ends August 16 MAEHLER & KAEGE: Claims Registration Ends August 21 MEDICAL PHYSIO: Claims Registration Ends August 10 MINK SNACK: Claims Registration Ends August 28 RUDOLF BERG: Claims Registration Ends September 4 SISTRA VERWALTUNGSGESELLSCHAFT: Meeting Slated for August 30 SPECTRUM BRANDS: U.S. Attorney's Office Terminates Investigation SPECTRUM BRANDS: Third Quarter Earnings Down to US$2.5 Million H U N G A R Y AES CORP: Dominican Unit Submits Electricity Crisis Resolution I R E L A N D HIBERNIAN GENERAL: Creditors to Vote on Scheme on Oct. 27 SCOTTISH RE: Posts US$123.9 Million Second Quarter Net Loss SCOTTISH RE: Names Nathan Gemmiti as General Counsel SCOTTISH RE: Appoints Clifford Wagner to Head North American Ops I T A L Y AVIO HOLDING: Moody's Places B1 Corp. Family Rating Under Review K A Z A K H S T A N DIN-AI: Creditors Must File Claims by Sept. 8 EVRAZIA-XXI: Creditors Must File Claims by Sept. 8 INTERSERVIS CO: Proof of Claim Deadline Slated for Sept. 8 KAMKOR: Proof of Claim Deadline Slated for Sept. 8 KAPITAL: Claims Registration Ends Sept. 8 KULTBYTSTROI: Claims Registration Ends Sept. 8 VASAND-TK: Creditors' Claims Due Sept. 8 VOSTOK-PRODUKT: Creditors' Claims Due Sept. 8 K Y R G Y Z S T A N TASH-KAL: Creditors Must File Claims by Sept. 18 N E T H E R L A N D S ORTHOFIX INT'L: Acquisition Spurs S&P to Revise Rating Outlook PYATEROCHKA HOLDING: Buys 3,903 GDRs at US$16.50 Per Unit R U S S I A ASHLYK: Court Starts Bankruptcy Supervision BATURINSKOYE: Court Names A. Gorokhov as Insolvency Manager BOGOTOLSKIY BREWERY: A. Timoshkevich to Manage Assets EUROPEAN TRADING: Court Names A. Kirichenko to Manage Assets GAZPROM: Wins Auction to Explore & Develop Parusovy Prospect KARAVAY: Court Names D. Glushkov as Insolvency Manager KRASNOSELSKAYA: Krasnodar Court Starts Bankruptcy Supervision KURSKAYA BEARING: Kursk Court Starts Bankruptcy Supervision LASVINSKOYE: Court Starts Bankruptcy Supervision NOVATEK OAO: Posts Second Quarter 2006 Prelim Operating Figures NOVOLIPETSK STEEL: Hikes Equity Stake in NTK to 100% PENZENSKIY FACTORY: Penza Court Starts Bankruptcy Supervision PRYAMITSINO: Kursk Court Starts Bankruptcy Supervision PYATEROCHKA HOLDING: Buys 3,903 GDRs at US$16.50 Per Unit SHARYPOVSKAYA KNITTING: D. Glushkov to Manage Assets SIBERIAN TRADING: Court Names L. Sitkina as Insolvency Manager TATNEFT OAO: Taps PwC to Audit U.S. GAAP Financial Statements VNESHTORGBANK: Sets RUB17 Billion Lending Limit for Avtovaz WORLD OF FABRICS: Court Names O. Zinina as Insolvency Manager YAMAL-GAS-STROY-INVEST: Court Names V. Opryshko to Manage Assets YUKOS OIL: Court Reduces Yugansk Claim to US$770 Million T U R K E Y ALTERNATIFBANK A.S.: Fitch Keeps IDR at B+ with Outlook Positive U K R A I N E AGROUKRTORG: Court Names O. Sherban as Insolvency Manager BOKAR INVEST: Court Names L. Misukevich as Liquidator CHIGIRINENERGOBUDTRANS: Mikola Zanko to Manage Assets KRASNOPEREKOPSKIJ BREAD: Volodimir Bida to Liquidate Assets LUBASHIVKA' AGRICULTURAL: Dmitro Abmayev to Manage Assets ENERGO-ROST: Kyiv Court Names I. Zolochinska as Liquidator NAFTA-TRADE: Kyiv Court Names Igor Kapelushnij as Liquidator NAFTOTRADER: Court Names Igor Kapelushnij as Liquidator PRESTO: Kyiv Court Names O. Sherban as Insolvency Manager PIVDENNA: Court Names Sergij Zhukov as Insolvency Manager RADOPS: Kyiv Court Names D. Shapovalenko as Liquidator REAL: Cherkassy Court Names Mikola Zanko as Insolvency Manager U N I T E D K I N G D O M AFOS LIMITED: Five Arrows Hires Receivers from Tenon Recovery APPLETREE COTTAGE: Names Administrators from Begbies Traynor APW ELECTRONICS: Royal Bank of Scotland Appoints Kroll Receivers ATMEL CORP: Steven Laub Replaces George Perlegos as CEO COMMUNICATIONS COMPLETE: Joint Liquidators Take Over Operations COUNTRYMAN JOHN: Taps Andrew Rosler to Liquidate Assets CRYSTAL TRANSPORT: Creditors' Meeting Slated for August 15 E.J. WHITE: Creditors' Meeting Slated for August 16 FARRINGDON MORTGAGES: Fitch Affirms GBP3.13-Mln Class B2a at B FRANCESCO'S LIMITED: Names J. N. Bleazard Liquidator FREEABLE PROJECTS: Appoints Halstead Bottomley as Liquidator GAINSBOROUGH U.K.: Creditors' Meeting Slated for August 17 GENERAL MOTORS: Files Multibillion-Dollar Claim Against Delphi GENERAL MOTORS: Revising Second Qtr. Financials Due to GMAC Sale GREYFRIARS INSURANCE: Creditors to Vote on Scheme on Oct. 27 HEATH REID: Creditors Ratify Joint Liquidators' Appointment HEDDINGTON INSURANCE: Creditors to Vote on Scheme on Oct. 27 HOTELOC PLC: Moody's Puts Low-B & Junk Debt Ratings Under Review J ROGERSON: Claims Filing Period Ends Oct. 10 LUEGO SPORTS: Hires Joints Liquidators from Elwell Watchorn M & R TRANSPORT: Names Joint Administrators from Menzies MASON & SONS: Asher Miller Leads Liquidation Procedure MITSUI SUMITOMO: Creditors to Vote on Scheme on Oct. 27 OCEAN MARINE: Creditors to Vote on Scheme on Oct. 27 OFFICE & EDUCATIONAL: Nominates Liquidator from T.H. Associates ORANGE VISION: Creditors Confirm Liquidator's Appointment OSLO REINSURANCE: Creditors to Vote on Scheme on Oct. 27 PHOENIX LASER: Creditors' Meeting Slated for August 16 RANGOLD RESOURCES: Pretoria Court Grants Final Liquidation Order REFCO INC: Court Okays Stipulations on Lease-Decision Period REFCO INC: Debtors & Trustee Tap UHY Advisors as Tax Consultants SCOTTISH RE: Posts US$123.9 Million Second Quarter Net Loss SCOTTISH RE: Names Nathan Gemmiti as General Counsel SCOTTISH RE: Appoints Clifford Wagner to Head North American Ops SEA INSURANCE: Creditors to Vote on Scheme on Oct. 27 SELECT RESOURCING: Creditors' Meeting Slated for August 15 SOVEREIGN INSURANCE: Creditors to Vote on Scheme on Oct. 27 SOVEREIGN MARINE: Creditors to Vote on Scheme on October 27 SPHERE DRAKE: Creditors to Vote on Scheme on Oct. 27 THERMOTECH AIR: Creditors' Meeting Slated for August 11 TOKIO MARINE: Creditors to Vote on Scheme on Oct. 27 WAUSAU INSURANCE: Creditors to Vote on Scheme on Oct. 27 * Moody's Reports Global Speculative-Grade Corp. Default Rate ********* ============= A U S T R I A ============= ESLARNGASSE 25: Innsbruck Court Orders Closing of Business ---------------------------------------------------------- The Land Court of Innsbruck entered an order on June 21 closing the business of LLC Eslarngasse 25 (FN 224999g). Court- appointed property manager Herbert Matzunski 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. Herbert Matzunski Salurner Road 16 6020 Innsbruck, Austria Tel: 0512/582716 Fax: 0512/571467 E-mail: law@hauska-matzunski.at Headquartered in Natters, Austria, the Debtor declared bankruptcy on June 12 (Bankr. Case No. 9 S 17/06h). GO-TRANS: Claims Registration Period Ends September 4 ----------------------------------------------------- Creditors owed money by LLC Go-Trans (FN 132485g) have until Sept. 4 to file written proofs of claims to court-appointed property manager Konrad Ferner at: Dr. Konrad Ferner Hellbrunner Str. 11 5020 Salzburg, Austria Tel: 0662-841616 Fax: 0662-841616-16 E-mail: office@lawconsult.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Sept. 14 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Salzburg Room 221 2nd Floor Salzburg, Austria Headquartered in Eugendorf, Austria the Debtor declared bankruptcy on June 21 (Bankr. Case No. 23 S 41/06h). Sebastian Oberascher represents the Debtor in the bankruptcy proceedings. GOLFANLAGEN BAD: Property Manager Declares Insufficient Assets -------------------------------------------------------------- Dr. Klaus Juergen Karner, the court-appointed property manager for LLC Golfanlagen Bad Kleinkirchheim- Reichenau (FN 245294b), declared on June 21 that the Debtor's property is insufficient to cover creditors' claim. The Land Court of Klagenfurt is yet to rule on the property manager's claim. Headquartered in Patergassen, Austria, the Debtor declared bankruptcy on Dec. 28, 2005 (Bankr. Case No. 41 S 113/05y). The property manager can be reached at: Dr. Klaus Juergen Karner Widmanngasse 44 9500 Villach, Austria Tel: 04242/22 880 Fax: 04242/21351 E-Mail: office.kjk@aon.at PRISMA: Creditors' Meeting Slated for August 21 ----------------------------------------------- Creditors owed money by LLC Prisma (FN 186274h) are encouraged to attend the first creditors' meeting at 11:30 a.m. on Aug. 21 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Innsbruck Conference Hall 212 2nd Floor Maximilianstrasse 4 6020 Innsbruck, Austria Headquartered in Innsbruck, Austria, the Debtor declared bankruptcy on June 21 (Bankr. Case 19 S 64/06v). Stefan Geiler serves as the court-appointed property manager of the bankrupt estate. Ekkehard Erlacher represents the Debtor in the bankruptcy proceedings. The property manager can be reached at: Dr. Stefan Geiler Maria-Theresien-Road 17/19 6020 Innsbruck, Austria Tel: 0512/582760 Fax: 0512/5827606 E-mail: office@ullmann-geiler.at The representative of the Debtor can be reached at: Dr. Ekkehard Erlacher Marketgraben 12 6020 Innsbruck, Austria Tel: 0512/573626 STUKKATEUR: Creditors' Meeting Slated for August 10 --------------------------------------------------- Creditors owed money by LLC Stukkateur (FN 198308f) are encouraged to attend the creditors' meeting at 9:45 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 84/06x). Norbert Abel serves as the court-appointed property manager of the bankrupt estate. Johanna Abel-Winkler represents Mag. Abel in the bankruptcy proceedings. The property manager and his representative can be reached at: Mag. Norbert Abel c/o Mag. Johanna Abel-Winkler Franz-Josefs-Kai 49/19 1010 Vienna, Austria Tel: 533 52 72 Fax: 533 52 72 15 E-mail: office@abel-abel.at TIMPOL: Creditors' Meeting Slated for August 18 ----------------------------------------------- Creditors owed money by LLC Timpol (FN 60189p) are encouraged to attend the creditors' meeting at 9:45 a.m. on Aug. 18 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 607 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 21 (Bankr. Case 28 S 40/06w). Daniel Lampersberger serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Mag. Daniel Lampersberger Esteplatz 4 1030 Vienna, Austria Tel: 712 33 30 Fax: 712 33 30 30 E-mail: engelhart@csg.at TROCKENBAU - GRBIC: Creditors' Meeting Slated for August 22 ----------------------------------------------------------- Creditors owed money by LLC Trockenbau - Grbic (FN 134702t) are encouraged to attend the creditors' meeting at 9:45 a.m. on Aug. 22 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 20 (Bankr. Case 4 S 106/06z). Georg Auteried serves as the court-appointed property manager of the bankrupt estate. Rainer W. Boehm represents Dr. Auteried in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Georg Auteried c/o Mag. Rainer W. Boehm Altgasse 21/9 1130 Vienna, Austria Tel: 876 47 98 Fax: 876 47 98 21 E-mail: office@auteried.at =========== F R A N C E =========== ALCATEL SA: Inks EUR30-Million Contract with Iraq's ITPC -------------------------------------------------------- Alcatel (Paris: CGEP.PA and NYSE: ALA) has been awarded a EUR30- million contract with Iraqi Telecommunications & Post Corporation, the sole fixed operator in Iraq, to deliver a turnkey high capacity nation-wide microwave backbone. With this turnkey solution, ITPC will be able to handle the ever-growing national traffic caused by continuous increasing demands in the capital and in the country. The network will allow ITPC to provide fixed, mobile and data services very quickly according to the Telco activity development the operator wants to promote. Alcatel will provide a backbone covering 62 sites along three important routes in the country. The World Bank will finance this contract. Under the terms of this contract, Alcatel will supply its Alcatel 9600 LSY high-capacity long haul digital microwave radio transmission backbone along with Optical Multi-Service Node (OMSN) systems, PDH multiplex and cross connect, complemented by a powerful end-to-end network management, power supply equipment and towers providing efficient control & routing throughout the network. The robustness, reliability and scalability of the Alcatel 9600 LSY solution make of it the preferred choice for fixed and mobile operators "We are confident that our long-term partner will deliver such unique network backbone in the agreed time frames in order to have it fully operational by beginning 2008," says H.E. Mohamed S. Mohamed El Hamadany, Iraq Deputy Minister of Communications. We have an urge to reconstruct the network in Iraq and we are convinced that Alcatel is the right partner for that," "Taking advantage of our deep knowledge of the Iraqi telecommunications services, we are convinced that this cutting- edge network will contribute to help Iraq to accelerate the reconstruction of their country," comments Vincenzo Nesci, Vice president of Alcatel's activities in the Middle East. "This award is a proof of the Alcatel's commitment to provide communication access to the "next billion" people around the world. It will as well reinforce our position in Iraq and in the region in which we have been present for more than 35 years by now." With more than 400,000 point-to-point microwave radios installed in more than 150 countries, Alcatel is a technology leader and top player in the wireless transmission market. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * As reported in TCR-Europe on March 28, Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. ALLIANZ GLOBAL: Creditors to Vote on Scheme on Oct. 27 ------------------------------------------------------ Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. UNION DE BANQUES: Fitch Lifts Individual Rating to C ---------------------------------------------------- Fitch Ratings upgraded Union de Banques Arabes et Francaises' Issuer Default rating to A- from BBB+, its Individual rating to C from C/D, and its Support rating to 1 from 2. Its Short-term rating is affirmed at F2. The Outlook on the IDR remains Stable. The upgrades on the IDR, Short-term and Support ratings reflect an increased commitment from UBAF's reference shareholder Calyon (rated AA/F1+, over 47% stake) towards the bank as well as its strong involvement in the bank's restructuring since 2005. Fitch views UBAF as a strategic participation for Calyon and is likely to remain so in the long term. The IDR, Short-term and Support ratings of UBAF are based on the extremely strong potential support it can expect to receive from Calyon. The upgrade on the Individual rating reflects the strong restructuring of the bank since 2005. UBAF has notably cleaned its balance sheet, reducing its net non-performing loans to virtually nil when the debt restructuring conditions imposed by Iraq on the London Club creditors, with the backing of international monetary authorities, were known. While these measures led to EUR105 million loan loss provisions and a EUR87 million net loss in 2005, this had been expected for more than a decade, and UBAF's profits since the 1990s had been retained to write off these exposures. To complete its restructuring, under the supervision of Calyon the loan granted by UBAF to a defeasance entity belonging to its shareholders and carrying part of its old problem loans was paid off. This improved significantly the bank's liquidity and removed an important non-earning asset from its balance sheet. In addition, UBAF converted part of the subordinated debts it received from its shareholders into equity and is in the process of repaying the balance. Finally, UBAF has been allowed by the French authorities to resume dividend payments from 2005. Excluding this restructuring, UBAF's profitability has now returned to acceptable levels, with good performance in its trade-finance activity and cost/income ratio reduced to the lower 70% range. At end-2005, documentary credits totaled US$8.7 billion and the three-year plan indicates a US$12 billion target, which looks achievable. Calyon is closely involved in UBAF's risk management and new business has led to very low new non-performing loans. UBAF's funding is in the form of deposits and interbank loans. It enjoys significant credit lines from Calyon. Its comfortable Tier 1 ratio (21%) has not been affected by the restructuring process. Created in 1970, UBAF's mission is to foster commercial exchanges between countries where the bank is present and Arab countries. The bank is 52.7%-owned by Arab interests, principally public sector banks. The remaining 47.3% is held by Calyon. The majority control by Arab shareholders ensures a regular business flow to UBAF, which is an advantage compared with its competitors. ============= G E R M A N Y ============= ALERIS INT'L: Closes Purchase on Corus Group's Aluminum Business ---------------------------------------------------------------- Aleris International Inc. completed the purchase of the downstream aluminum business of Corus Group plc. The acquisition includes Corus's aluminum rolling and extrusion businesses but does not include Corus's primary aluminum smelters. "We are extremely pleased to have completed this acquisition which continues the transformation of our company," Steve Demetriou, Chairman and CEO of Aleris International said. "We re delighted to welcome 4,600 new employees to Aleris. The acquisition provides Aleris with a world-class technology platform and a portfolio of high value-added products that significantly diversifies our current offerings. Today, we are a global company with significant assets in Europe and a foothold in the high-growth China economy. We expect to continue Aleris's track record of growth and profitability and are very excited about the future." About Corus Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. About Aleris International Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris International Inc. -- http://www.aleris.com/-- manufactures rolled aluminum products and is a global leader in aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The Company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. * * * As reported in the Troubled Company Reporter on July 18, 2006, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on Aleris International Inc. and removed it from CreditWatch, where it was placed with negative implications on March 21, 2006. The CreditWatch placement followed Aleris' announcement that it would acquire the downstream aluminum assets of Corus Group PLC (BB/Stable/B) for US$880 million in cash and assumed debt. The outlook is negative. At the same time, Standard & Poor's assigned its 'BB-' and '2' recovery ratings to the company's proposed US$650 million senior secured term loan B. The '2' recovery rating indicates the expectation of a substantial recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions and are predicated on the completion of the Corus transaction and related financings substantially in the form currently anticipated. As reported in the Troubled Company Reporter on July 12, 2006, Moody's Investors Service confirmed Aleris International, Inc.'s B1 corporate family rating. In a related rating action, Moody's assigned a Ba3 rating to the company's proposed 7 year senior secured guaranteed term loans aggregating US$650 million, which Aleris is issuing to partially finance its EUR691 million acquisition of certain aluminum assets from Corus Group plc and refinance its existing debt. The balance of the necessary funding will be provided under a senior unsecured guaranteed bridge loan provided by Deutsche Bank and Citigroup. Aleris has initiated a tender offer for its 10-3/8% senior secured notes due 2010 and its 9% senior notes due 2014 and is seeking consent to a number of modifications to restrictive covenants, events of default, and in the case of the 10-3/8% senior secured notes, the release of security. Moody's confirmed the B2 rating on the 10-3/8% senior secured notes and the B3 rating on the 9% senior unsecured notes. The ratings for the proposed financings assume that the tender offer will be successful, the desired consents obtained and that the acquisition and associated financing transactions will close as contemplated. At such time, Moody's ratings for Aleris's existing debt will be withdrawn. The ratings outlook is negative. ALERIS INT'L: Completes Tender Offer on 10-3/8% & 9% Sr. Notes -------------------------------------------------------------- Aleris International Inc. completed its tender offer to purchase for cash any and all of its outstanding 10-3/8% Senior Secured Notes Due 2010 (CUSIP No. 449681AC9) and 9% Senior Notes Due 2014 (CUSIP No. 014477AA1). The tender offer expired at 5:00 p.m., New York City time, on July 31, 2006. Through the expiration of the tender offer, US$200,830,000 principal amount, or 96.17%, of the outstanding principal amount of the 10-3/8% Notes and US$124,910,000 principal amount, or 99.93%, of the outstanding principal amount of the 9% Notes, and the consents related thereto, have been validly tendered. Aleris accepted for purchase all of the Notes validly tendered prior to the expiration of the tender offer and the related consents. On July 14, 2006, the requisite consents were received to eliminate or make less restrictive substantially all of the restrictive covenants and events of default and certain related provisions contained in the indentures governing the Notes. As a result of obtaining the requisite consents, Aleris executed and delivered supplemental indentures setting forth the amendments to the indentures governing the Notes. The supplemental indentures provide that the amendments to the indentures have become operative as a result of Aleris having accepted for purchase pursuant to the tender offer the validly tendered Notes. Each holder who tendered the 10-3/8% Notes and related consents on or before the consent date will receive US$1,100.78 per US$1,000 principal amount of the 10-3/8% Notes, which includes a US$20 consent payment, and each holder who tendered the 10-3/8% Notes and related consents after the consent date but on or before the expiration date will receive US$1,080.78 per US$1,000 principal amount of the 10-3/8% Notes. Each holder who tendered the 9% Notes and related consents on or before the consent date will receive US$1,134.96 per US$1,000 principal amount of the 9% Notes, which includes a US$20 consent payment, and each holder who tendered the 9% Notes and related consents after the consent date but on or before the expiration date will receive US$1,114.96 per US$1,000 principal amount of the 9% Notes. Holders of the Notes tendered and accepted for payment pursuant to the Offer also will be paid accrued and unpaid interest on their Notes to, but not including, the applicable payment date. In addition, Aleris is depositing funds with JPMorgan Chase Bank, N.A., as trustee under the indenture for the 10-3/8% Notes to effect a covenant defeasance, which terminated its obligations with respect to substantially all of the remaining restrictive covenants on the 10-3/8% Notes, and is depositing funds with LaSalle Bank National Association, as trustee under the indenture for the 9% Notes to effect a legal defeasance, which resulted in Aleris being discharged from its obligations under the 9% Notes and the indenture governing the 9% Notes. Deutsche Bank Securities Inc. acted as dealer manager for the tender offer and as the solicitation agent for the consent solicitation and Mackenzie Partners, Inc. was the depositary and information agent. About Corus Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. About Aleris International Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris International Inc. -- http://www.aleris.com/-- manufactures rolled aluminum products and is a global leader in aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The Company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. * * * As reported in the Troubled Company Reporter on July 18, 2006, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on Aleris International Inc. and removed it from CreditWatch, where it was placed with negative implications on March 21, 2006. The CreditWatch placement followed Aleris' announcement that it would acquire the downstream aluminum assets of Corus Group PLC (BB/Stable/B) for US$880 million in cash and assumed debt. The outlook is negative. At the same time, Standard & Poor's assigned its 'BB-' and '2' recovery ratings to the company's proposed US$650 million senior secured term loan B. The '2' recovery rating indicates the expectation of a substantial recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions and are predicated on the completion of the Corus transaction and related financings substantially in the form currently anticipated. As reported in the Troubled Company Reporter on July 12, 2006, Moody's Investors Service confirmed Aleris International, Inc.'s B1 corporate family rating. In a related rating action, Moody's assigned a Ba3 rating to the company's proposed 7 year senior secured guaranteed term loans aggregating US$650 million, which Aleris is issuing to partially finance its EUR691 million acquisition of certain aluminum assets from Corus Group plc and refinance its existing debt. The balance of the necessary funding will be provided under a senior unsecured guaranteed bridge loan provided by Deutsche Bank and Citigroup. Aleris has initiated a tender offer for its 10-3/8% senior secured notes due 2010 and its 9% senior notes due 2014 and is seeking consent to a number of modifications to restrictive covenants, events of default, and in the case of the 10-3/8% senior secured notes, the release of security. Moody's confirmed the B2 rating on the 10-3/8% senior secured notes and the B3 rating on the 9% senior unsecured notes. The ratings for the proposed financings assume that the tender offer will be successful, the desired consents obtained and that the acquisition and associated financing transactions will close as contemplated. At such time, Moody's ratings for Aleris's existing debt will be withdrawn. The ratings outlook is negative. ARC AAS: Claims Registration Ends September 4 --------------------------------------------- Creditors of ARC AAS Automobile GmbH have until Sept. 4 to register their claims with court-appointed provisional administrator Stephan Kallenberg. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Oct. 4 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bingen am Rhein Room 9 Law Courts Mainzer Road 52 55411 Bingen am Rhein, 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 Bingen am Rhein opened bankruptcy proceedings against ARC AAS Automobile GmbH on July 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ARC AAS Automobile GmbH Schultheiss-Kollei-Str. 5 55411 Bingen am Rhein, Germany Attn: Martin Santner, Manager Eisel 13 55411 Bingen am Rhein, Germany The administrator can be contacted at: Stephan Kallenberg Neutorstr. 9 55116 Mainz, Germany Tel: 06131/14676-0 Fax: 06131/14674-20 BOEDEN BERLIN: Creditors' Meeting Slated for August 24 ------------------------------------------------------ The court-appointed provisional administrator for Boeden Berlin GmbH, Knut Rebholz, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:50 a.m. on Aug. 24. 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 9:15 a.m. on Nov. 2 at the same venue. Creditors have until Sept. 20 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Boeden Berlin GmbH on July 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Boeden Berlin GmbH Kaulsdorfer Road 249 12555 Berlin, Germany The administrator can be reached at: Knut Rebholz Cicerostr. 22 10709 Berlin, Germany FRESENIUS MEDICAL: Earns US$130 Million Net Income in 2nd Qtr. -------------------------------------------------------------- Fresenius Medical Care AG & Co. KGaA disclosed the results for the second quarter and the first six months 2006. Net income for the second quarter 2006 was US$130 million, an increase of 12%. Excluding one-time costs and SFAS 123(R), the net income increased on a comparable basis by 19% to $139 million. Total revenue for the second quarter 2006 compared to the second quarter 2005 increased by 29% (30% at constant currency) to $2.16 billion. Total organic revenue growth worldwide was 9%. Dialysis Services revenue grew by 38% to US$1.65 billion (38% at constant currency) in the second quarter of 2006. Dialysis Product revenue increased by 9% to US$514 million (9% at constant currency) in the same period. Excluding Renal Care Group (RCG) and the divested dialysis clinics in conjunction with the acquisition of RCG, revenue for the second quarter 2006 grew by 9%. Operating income (EBIT) increased by 56% to US$372 million, including a US$39 million gain from the divestiture of dialysis clinics in conjunction with the regulatory approval for the acquisition of RCG. In addition, operating income for the second quarter 2006 includes US$3 million of costs related to the change of accounting principles for stock options (SFAS 123R) and US$4 million of one-time costs associated with the restructuring of RCG and the transformation of Fresenius Medical Care's legal form and related legal fees. Excluding these costs and the gain from the divestiture, operating income for the second quarter 2006 increased by 42% to US$340 million resulting in an operating margin of 15.7%. For the second quarter 2005 the operating margin was 14.3%. Net interest expense for the second quarter 2006 was US$100 million compared to US$43 million in the same quarter of 2005. This increase is absolutely in line with expectations and is purely the result of the debt financing for the RCG acquisition. Income tax expense was US$135 million in the second quarter of 2006 as compared to US$79 million in the second quarter 2005, reflecting effective tax rates of 49.6% and 40.4%, respectively. The tax rate has been impacted in the second quarter by tax payments in connection with the divestiture of dialysis clinics in the U.S. and the change of accounting principles for stock options (SFAS 123R). Excluding this impact, the tax rate was at 38.8%. Cash Flow In the second quarter of 2006, the Company generated US$165 million in cash from operations, compared to US$130 million last year. Cash from operations in the second quarter includes US$75 million net tax payments related to the divestiture of clinics and the RCG acquisition. Excluding these tax payments, the underlying cash from operations in the second quarter 2006 was US$240 million, or 11.1% of revenue. The strong cash flow generation was supported by reductions in Days Sales Outstanding (DSO) and increased earnings. A total of US$95 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was US$70 million compared to US$72 million in the second quarter of 2005. Excluding tax payments related to the divestiture of clinics the underlying Free Cash Flow before acquisitions in the second quarter 2006 was US$145 million. A total of US$24 million in cash was used for acquisitions excluding the RCG acquisition. "Our second quarter and half year financial results were excellent and exceeded expectations," Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented. "We continue to see earnings growth momentum which is based on the success of our global business strategies and the dedication of our employees. In addition, Renal Care Group is continuing to perform very well and our integration is well underway and on track. We are pleased that all regions and business segments grew at or above market. North America and Europe, which represent over ninety percent of our business, continued their strong growth in both the products and services segments. Based on the strong start in 2006, we have raised our revenue and net income guidance for 2006." First Half 2006 In the first half of 2006, net income was US$246 million, up 10% from the first half of 2005. Excluding costs related to the change of accounting principles for stock options (SFAS 123R) and one-time items net income increased by 19% to US$266 million. Net revenue was US$3.91 billion, up 19% from the first half of 2005. Adjusted for currency, net revenue rose 20% in the first half of 2006. Excluding Renal Care Group and the divested clinics revenue for the first half of 2006 grew by 10%. Operating income (EBIT) increased by 34% to US$616 million. Operating income for the first half of 2006 includes US$29 million of income as a result of the gain from the clinic divestitures, net of costs mainly related to the RCG restructuring and the change of accounting principles for stock options. Excluding these costs, operating income for the first half of 2006 increased by 28% to US$587 million. This performance resulted in an operating margin of 15.0% as compared to 14.0% for the first half of 2005. Net interest expense for the first six months of 2006 was US$156 million as a result of the write-off of deferred financing costs related to the 2003 senior credit facility of US$15 million and one quarter worth of additional interest expense, both in conjunction with the financing of the RCG acquisition. Income tax expense was US$206 million in the first half of 2006 as compared to US$149 million in the same period in 2005, reflecting effective tax rates of 44.8% and 39.8%, respectively. The tax rate has been impacted by tax payments in connection with the gain on divestiture of dialysis clinics in the U.S. and the change of accounting principles for stock options (SFAS 123R). Excluding this impact, the tax rate was at 38.5%. For the first half of 2006, earnings per ordinary share rose by 9% to US$2.51 (US$0.84 per ADS). The weighted average number of shares outstanding during the first half of 2006 was approximately 97.9 million. Cash Flow Cash from operations during the first half of 2006 was US$327 million as compared to US$268 million in the first half of 2005. Cash from operations in the first half of 2006 includes US$75 million net tax payments related to the divestiture of clinics and the RCG acquisition. Excluding these tax payments the underlying cash from operations was US$402 million in the first half of 2006. The increase compared to prior year was mainly due to strong collection of receivables, improvements in earnings and lower income tax payments for prior years. A total of US$160 million was used for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the first half of 2006 was US$167 million as compared to US$171 million in the first half of 2005. Excluding tax payments due to the divestiture of clinics the underlying Free Cash Flow before acquisitions in the first half of 2006 was US$242 million. A total of US$35 million in cash was used for acquisitions other than the RCG acquisition in the first half of 2006. Outlook for 2006 Upgraded Based on the strong performance in the first half of 2006, the Company upgrades its guidance for the full year 2006. After expecting to report a revenue of about US$8.1 billion, the Company now expects a revenue for 2006 of about US$8.3 billion. The Company also upgrades its outlook for reported net income for 2006. After expecting a net income between US$515 million and US$535 million, the Company now expects to report a net income of at least US$542 million, which represents an increase of at least 15% over the 2005 level. In order to show the underlying performance of the Company, the guidance does not take into effect any expected one-time items and the change of accounting principle for stock options - SFAS 123(R) in the fiscal year 2006. After previously assuming the after tax impact of one-time items and SFAS 123(R) to be about US$60 million the Company now expects this impact to be about US$40 million for the full year 2006. In addition, the Company confirms its guidance on capital expenditures and acquisition spending to be approximately US$550 million in 2006. Full-text copies of Fresenius' 2006 second quarter and first half results are available at no charge at http://ResearchArchives.com/t/s?f19 Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS-p) -- http://www.fmc-ag.com/-- is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,300,000 individuals worldwide. Through its network of approximately 1,645 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to approximately 128,200 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius AG holds approximately 37% of Fresenius Medical Care AG & Co. KgaA's capital. * * * As reported in the TCR-Europe on April 5, Moody's Investors Service affirmed all ratings of Fresenius AG and subsidiary Fresenius Medical Care & Co KGaA. Moody's also affirmed Fresenius AG's: -- Corporate family rating of Ba2; -- EUR1 billion of senior notes rated Ba2; and -- EUR87.9 million of senior notes rated Ba2 Fresenius Medical Care & Co KgaA's: -- Corporate Family Rating of Ba2; -- Senior credit facility rated Ba2; and -- Trust Preferred securities rated B1. As reported in the TCR-Europe on April 4, Standard & Poor's Ratings Services assigned a BB' senior secured debt rating to Fresenius Medical Care KGaA's US$4.6 billion facilities, which were put in place to finance the acquisition of Renal Care Group Inc. (RCG; BB-/Positive/--). At the same time, Standard & Poor's lowered its long-term corporate credit ratings on the Germany-based health-care companies, FMC and its parent Fresenius AG to 'BB' from 'BB+', following U.S. antitrust clearance for FMC's acquisition of U.S.-based health-care company Renal Care. The ratings were removed from CreditWatch, where they were originally placed on May 4, 2005. S&P said the outlook is negative. GASTRODOM GMBH: Claims Registration Ends September 5 ---------------------------------------------------- Creditors of Gastrodom GmbH have until Sept. 5 to register their claims with court-appointed provisional administrator Rainer Eckert. Creditors and other interested parties are encouraged to attend the meeting at 8:15 a.m. on Oct. 10 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hanover Hall 226 2nd Floor Office Building Hamburg Avenue 26 30161 Hanover, 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 Hanover opened bankruptcy proceedings against Gastrodom GmbH on July 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gastrodom GmbH Attn: Axel Felsenstein, Manager Joachim Str. 3 30159 Hanover, Germany The administrator can be contacted at: Dr. Rainer Eckert Arthur-Menge-Ufer 5 30169 Hanover, Germany Tel: 0511/626287-0 Fax: 0511/626287-10 GRUNDSTUECKSGESELLSCHAFT ADLERSHOF: Meeting Slated for Aug. 24 -------------------------------------------------------------- The court-appointed provisional administrator for Grundstuecksgesellschaft Adlershof Haus 10 GmbH & Co. KG, Dirk Wittkowski, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:45 a.m. on Aug. 24. 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 9:45 a.m. on Nov. 16 at the same venue. Creditors have until Sept. 20 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Grundstuecksgesellschaft Adlershof Haus 10 GmbH & Co. KG on July 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Grundstuecksgesellschaft Adlershof Haus 10 GmbH & Co. KG Kleinen Wannsee 8 14109 Berlin, Germany The administrator can be reached at: Dr. Dirk Wittkowski Kirchblick 11 14129 Berlin, Germany KLEEMANN & SCHOETTNER: Claims Registration Ends August 16 --------------------------------------------------------- Creditors of Kleemann & Schoettner oHG Einbaukuechen-Essplatze- Moebel have until Aug. 16 to register their claims with court- appointed provisional administrator Ernst Wiesner. Creditors and other interested parties are encouraged to attend the meeting at 10:55 a.m. on Sept. 6 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hagen Area 283 2nd Floor Main House (New Building) Heinitzstrasse 42 58097 Hagen, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hagen opened bankruptcy proceedings against Kleemann & Schoettner oHG Einbaukuechen-Essplatze-Moebel on July 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kleemann & Schoettner oHG Hagener Str. 7 58285 Gevelsberg, Germany The administrator can be contacted at: Ernst Wiesner Kirchender Dorfweg 14 58313 Herdecke, Germany Tel: 02330-80880 Fax: +492330808888 MAEHLER & KAEGE: Claims Registration Ends August 21 --------------------------------------------------- Creditors of Maehler & Kaege Aktiengesellschaft have until Aug. 21 to register their claims with court-appointed provisional administrator Helmut Lorentz. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 20 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bingen am Rhein Hall 7 Law Courts Mainzer Road 52 55411 Bingen am Rhein, 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 Bingen am Rhein opened bankruptcy proceedings against Maehler & Kaege Aktiengesellschaft on July 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Maehler & Kaege Aktiengesellschaft Attn: Helmut Immerheiser, Manager Wilhelm-Leuschner-Str. 56 55218 Ingelheim, Germany The administrator can be contacted at: Dr. Helmut Lorentz Emperor Route 64 55116 Mainz, Germany Tel: 06131/234551 Fax: 06131/231094 MEDICAL PHYSIO: Claims Registration Ends August 10 -------------------------------------------------- Creditors of Medical Physio Point GmbH have until Aug. 10 to register their claims with court-appointed provisional administrator Christoph Schulte-Kaubruegger. Creditors and other interested parties are encouraged to attend the meeting at 8:45 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 Dortmund Hall 3.201 2nd Floor Court Place 1 44135 Dortmund, 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 Dortmund opened bankruptcy proceedings against Medical Physio Point GmbH on July 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Medical Physio Point GmbH Kamener Str. 7 59425 Unna, Germany Attn: Udo Pfaff, Manager Salinenstr. 3 59425 Unna, Germany The administrator can be contacted at: Dr. Christoph Schulte-Kaubruegger Rheinlanddamm 199 44139 Dortmund, Germany MINK SNACK: Claims Registration Ends August 28 ---------------------------------------------- Creditors of Mink Snack GmbH have until Aug. 28 to register their claims with court-appointed provisional administrator Florian Stapper. Creditors and other interested parties are encouraged to attend the meeting at 10:10 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 Leipzig Hall 145 Leipzig, 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 Leipzig opened bankruptcy proceedings against Mink Snack GmbH on July 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Mink Snack GmbH Attn: Eric Biebinger, Manager Blumenstr. 53 04155 Leipzig, Germany The administrator can be contacted at: Dr. Florian Stapper Karl-Heine-Road 16 04229 Leipzig, Germany RUDOLF BERG: Claims Registration Ends September 4 ------------------------------------------------- Creditors of Rudolf Berg Sanitar + Heizung GmbH have until Sept. 4 to register their claims with court-appointed provisional administrator Andreas Amelung. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Oct. 4 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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 Rudolf Berg Sanitar + Heizung GmbH on July 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Rudolf Berg Sanitar + Heizung GmbH Hillesheimstr. 6 50735 Cologne, Germany Attn: Martina Berg, Manager Gruener Hof 39 50739 Cologne, Germany The administrator can be contacted at: Andreas Amelung Mediapark 6 B 50670 Cologne, Germany SISTRA VERWALTUNGSGESELLSCHAFT: Meeting Slated for August 30 ------------------------------------------------------------ The court-appointed provisional administrator for Sistra Verwaltungsgesellschaft mbH & Co. Silbersteinstrasse KG, Udo Feser, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:30 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 9:10 a.m. on Dec. 6 at the same venue. Creditors have until Oct. 13 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Sistra Verwaltungsgesellschaft mbH & Co. Silbersteinstrasse KG on July 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sistra Verwaltungsgesellschaft mbH & Co. Silbersteinstrasse KG Dueppelstr. 37 12163 Berlin, Germany The administrator can be reached at: Udo Feser Uhlandstr. 165/166 10719 Berlin, Germany SPECTRUM BRANDS: U.S. Attorney's Office Terminates Investigation ---------------------------------------------------------------- The U.S. Attorney's Office for the Northern District of Georgia informed Spectrum Brands, Inc., on July 27, 2006, that it has terminated its investigation initiated Nov. 9, 2005. The investigation relates to the company's financial results for the third and fourth quarters of fiscal year 2005 and the impact of the results on anticipated fiscal year 2006 earnings, as well as to the sale of company shares by senior management in advance of negative financial disclosures in 2005. The Company continues to cooperate with the Atlanta District Office of the Securities and Exchange Commission's investigation into the matters. Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. In Europe, the company is headquartered in Sulzbach, Germany. The company's stock trades on the New York Stock Exchange under the symbol SPC. * * * As reported in the Troubled Company Reporter on June 15, 2006, Standard & Poor's Ratings Services affirmed its ratings on Spectrum Brands Inc., including the 'B-' corporate credit rating. At the same time, the ratings were removed from Credit Watch, where they were placed with negative implications April 6, 2006, following the Company's substantially lowered earnings guidance for the second quarter. S&P said the rating outlook is negative. As reported in the Troubled Company Reporter on June 13, 2006, Moody's Investors Service downgraded all ratings of Spectrum Brands, Inc. The outlook for the ratings is stable. This action concluded the review for downgrade that was initiated on April 7, 2006. Ratings downgraded include Corporate family rating to B3 from B2; US$300 million senior secured revolving credit facilities to B2 from B1; US$1.2 billion senior secured term loan facilities to B2 from B1; US$700 million senior subordinated notes due 2015 to Caa2 from Caa1, and US$350 million senior subordinated notes due 2013 to Caa2 from Caa1. SPECTRUM BRANDS: Third Quarter Earnings Down to US$2.5 Million -------------------------------------------------------------- Spectrum Brands, Inc. reported net income for the quarter ended July 2, 2006 of US$2.5 million compared to US$23.7 million for the quarter ended July 3, 2005. The Company also disclosed net sales for the third fiscal quarter ending July 2, 2006 was US$698.3 million versus US$707.8 million for the same period a year ago. Net income for the nine months ended July 2, 2006 was US$5.4 million, compared to US$49.7 million for the same period in the previous year. For the nine months ended July 2, 2006, net sales was US$1.94 billion, up by 13% from US$1.72 billion, for the same period a year ago. "Spectrum Brands continues to face challenges in our European battery business, which was the leading contributor to our disappointing third quarter results," David A. Jones, chairman and chief executive officer, said. "We also generated lower- than-expected sales this quarter from Remington men's shaving in North America at Father's Day. However, there were a number of bright spots in our third quarter results, including a strong performance from Remington branded products in Europe and a modest but encouraging sequential improvement in our North American battery business. Gross margin for the quarter was 38% versus 38.2% for the same period last year. The decline in gross margin percentage resulted primarily from lower sales in the global battery business and increased raw material costs. Operating income was US$49.0 million versus fiscal 2005's third quarter operating income of US$69.0 million. Third quarter interest expense was US$45.7 million versus US$38.6 million last year due to increased debt levels from the Tetra acquisition and higher interest rates. Total debt at July 2, 2006 was US$2.283 billion. Corporate expenses were US$27.6 million, compared to US$22.1 million in the prior year period. Expansion of the global operations support infrastructure and increased professional fees accounted for the majority of the increase. Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. In Europe, the company is headquartered in Sulzbach, Germany. The company's stock trades on the New York Stock Exchange under the symbol SPC. * * * As reported in the Troubled Company Reporter on June 15, 2006, Standard & Poor's Ratings Services affirmed its ratings on Spectrum Brands Inc., including the 'B-' corporate credit rating. At the same time, the ratings were removed from Credit Watch, where they were placed with negative implications April 6, 2006, following the Company's substantially lowered earnings guidance for the second quarter. S&P said the rating outlook is negative. As reported in the Troubled Company Reporter on June 13, 2006, Moody's Investors Service downgraded all ratings of Spectrum Brands, Inc. The outlook for the ratings is stable. This action concluded the review for downgrade that was initiated on April 7, 2006. Ratings downgraded include Corporate family rating to B3 from B2; US$300 million senior secured revolving credit facilities to B2 from B1; US$1.2 billion senior secured term loan facilities to B2 from B1; US$700 million senior subordinated notes due 2015 to Caa2 from Caa1, and US$350 million senior subordinated notes due 2013 to Caa2 from Caa1. ============= H U N G A R Y ============= AES CORP: Dominican Unit Submits Electricity Crisis Resolution -------------------------------------------------------------- AES Dominicana, a unit of AES Corp. in the Dominican Republic, disclosed a proposal to resolve the crisis in the country's electricity problems, Dominican Today reports. As reported in the Troubled Company Reporter-Latin America on July 27, 2006, the Dominican Republic was experiencing power outages of up to 12 hours long, in the areas of the National District, Santo Domingo Province, El Cibao, and the southern region. There had been problems in the Cibao transmission lines and Santo Domingo Province. Some cities were also experiencing an overload in the urban transmission system. The deficit was approximately 600 megawatts, the Superintendence of Electricity said. AES Dominicana said that it is aware of the need to help to resolve the structural problems caused by the recurrent crisis in the electrical sector. AES Dominicana proposed to resolve the crisis in the electrical sector via the document "Sustainable development of the Dominican electrical sector, 2006." The company published in March 2004 the "Sustainable development of the Dominican electrical sector," which covers the most important subjects and encouraged integration and dialogue among the agents in the industry as a key element to achieve the definitive recuperation of the system. Since then, progress has been made in these aspects: -- improvement the "Pass Through" formula of the tariff, -- elimination of losses due to the exchange rate, -- consciousness-raising campaigns on energy savings and electrical fraud, -- better focusing of subsidy, -- reduction of the intra-sectorial debt, and -- proposal for redesign of the PRA. Specific objectives for a plan to normalize electrical service: -- guarantee the providing of electrical service to all users of the system, including self-generators and isolated systems; -- adjust the technical and economic parameters proper to the electrical distribution service in the area, so that they achieve values close to those that are standard for services of similar characteristics; -- design and implement methods for measuring and control of service, within the scope of the Regulatory Agency, that will permit evaluation of the distributors' performance; and -- ensure that the economic resources contributed by the users and the Government, in payment for service received, are used in a manner that does not deviate from the objectives of the companies and the development of the sector. In order to improve the condition of the national electrical industry, AES Dominicana pointed out the need to identify and implement an integral program. To do this, it is necessary to adopt a global focus of all the variables, due to the interrelationships among the many problems that the sector is facing. The tactics adopted to confront the electricity sector's difficulties have been short-term responses to emergencies presented in day-to-day management by the different agents, which has no result in the definitive solution of the industry's real problems. In the Sustainable development of the Dominican electrical sector, 2006", AES Dominicana identified the primary causes of the chronic situation, and proposed solutions intended to achieve long-term sector sustainability. The company said it is also necessary to adopt short- and long-term measures that will be applied simultaneously and immediately. Joint application of the measures proposed will generate gradual improvement in the sector's situation, whose expected effects are: -- Levels of non-technical losses will be reduced significantly, and collection indices will increase to normal levels through: * institutional support, * appropriate penalties for non payment, theft and fraud, * design of tariff structure and efficient prices signals, * mitigation of generation cost, * investment plan to adjust and normalize transmission and distribution grids, * improvements in commercial management and grid operation, and * approaching the community. -- The cost to provide electrical service will be significantly reduced as a result of: * reduction in the cost of generation, * appropriate price signals, to discourage connections of new substations and private grids (physical by-passes) and to reincorporate of those existing onto the public grid, and * incentives to incorporate self-generators onto the public grid. -- The distributors' operating balance will improve until they reach their financial equilibrium. Distribution companies, begin to regularize payments to the generation companies, and to normalize the handling of the demand due to financial problems. Subsidies by the government for PRA and the coverage of the deficit of the distribution companies will be significantly reduced. These effects will be produced as a consequence of: -- reduction of non-technical losses, -- improvement in collection, -- reduction in the cost of service, and -- redesigning of the PRA program. About the Company AES Corporation -- http://www.aes.com/-- is a global power company. The Company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the Company delivers electricity through 15 distribution companies. AES has been in Eastern Europe for nearly ten years, since it acquired three power plants in Hungary in 1996. Today, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * As reported in the Troubled Company Reporter on May 25, Fitch affirmed The AES Corporation's Issuer Default Rating at 'B+'. Fitch also affirmed and withdrew the ratings for the company's junior convertible debt. Fitch said the rating outlook for all remaining instruments is stable. In March, Standard & Poor's Ratings Services raised its corporate credit rating on diversified energy company The AES Corp. to 'BB-' from 'B+'. S&P said the outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, Moody's affirmed the ratings of The AES Corporation, including its Ba3 Corporate Family Rating and the B1 rating on its senior unsecured debt. Moody's said the rating outlook remains stable. ============= I R E L A N D ============= HIBERNIAN GENERAL: Creditors to Vote on Scheme on Oct. 27 --------------------------------------------------------- Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. SCOTTISH RE: Posts US$123.9 Million Second Quarter Net Loss ----------------------------------------------------------- Scottish Re Group Limited (NYSE:SCT) released its operating results for the second quarter ended June 30, 2006. The net loss available to ordinary shareholders for the three months ended June 30, 2006 was US$123.9 million, as compared with a net income available to ordinary shareholders of US$1.6 million for the prior year period. The net loss available to ordinary shareholders for the six months ended June 30, 2006 was US$112.3 million, as compared to net income available to ordinary shareholders of US$35.0 million, for the prior year period. The net operating loss available to ordinary shareholders was US$130.3 million, for the three months ended June 30, 2006 as compared to net operating earnings of US$19.7 million for the prior year period. The net operating loss available to ordinary shareholders was US$116.0 million for the six months ended June 30, 2006, as compared to net operating earnings of US$46.6 million for the prior year period. "The results for the quarter are a sharp departure from our original projections and estimates provided to our stakeholders" Paul Goldean, Interim Chief Executive Officer, said. "While we are very disappointed with the results, we believe that the core fundamentals of the business are sound. In fact, our mortality experience for the quarter was in line with expectations." The net operating loss for the second quarter was primarily attributable to the following factors: -- tax expense of US$89.0 million principally related to a US$112.4 million valuation allowance established on deferred tax assets. The valuation allowance resulted from revised statutory and tax projections of the Company combined with a reassessment of certain tax planning strategies; -- an approximate US$8.0 million reduction in premium accruals in North America resulting from a revision of estimates relating to prior periods; -- a deferred acquisition cost adjustment of approximately US$13.0 million due to higher than expected lapses on certain fixed annuity treaties; -- external retrocession and reserve adjustments of approximately US$21.0 million due to revisions in estimates resulting from improved data and systems which administer retrocession accounts; and -- severance and retirement and other non-recurring operating expenses of approximately US$9.0 million. "It is important, however, to keep the loss in perspective and to note that Scottish Re continues to have sufficient sources of liquidity, collateral and capital to meet the near-term needs of the business." said Dean Miller, Chief Financial Officer. "Of particular note is that all operating subsidiaries remain capitalized well in excess of their minimum required levels as prescribed by their respective Regulators." Total revenues for the three months ended June 30, 2006 increased to US$593.6 million from US$502.0 million for the prior year period, an increase of 18%. Excluding realized gains and losses and the change in value of the embedded derivatives, total revenues for the three months ended June 30, 2006 increased to US$597.6 million from US$523.2 million for the prior year period, an increase of 14%. Total revenues for the six months ended June 30, 2006, increased to US$1.17 billion from US$1.06 billion for the prior year period, an increase of 11%. Excluding realized gains and losses and the change in value of the embedded derivatives, total revenues for the six months ended June 30, 2006 increased to US$1,179.3 million from US$1,071.0 million for the prior year period, an increase of 10%. Premiums earned in the three months ended June 30, 2006 were negatively impacted by revisions to previous premium accrual estimates of approximately US$8 million (pre-tax) and adjustments related to retro premiums of approximately US$13 million (pre-tax). The investment portfolio, which increased by US$1.74 billion from the closing of the Ballantyne Re transaction in May, continued to perform well with an average yield of 5.5% compared to an average yield for the first quarter 2006 of 5.3%. Total benefits and expenses increased to US$626.0 million for the three months ended June 30, 2006 from US$508.8 million for the prior year period, an increase of 23%. Total benefits and expenses increased to US$1,197.8 million for the six months ended June 30, 2006 from US$1,032.0 million for the prior year period, an increase of 16%. Total benefits and expenses exceeded estimates due to refinements in our external retrocession reserves of approximately US$7 million (pre-tax). In addition, an adjustment of approximately US$13 million (pre- tax) to write-down deferred acquisition costs was made to reflect the Company's current best estimate of lapses on certain fixed annuity treaties. The Company's operating expense ratio (which is the ratio of operating expenses to total revenue excluding realized gains and losses and the change in value of embedded derivatives) for the six months ended June 30, 2006 was 6.0%, as compared to an operating expense ratio of 5.0% for the year ended December 31, 2005. Operating expenses for the quarter were negatively impacted by severance and retirement expenses of approximately US$5.0 million, expenses related to the International segment expansion and various professional fees that on a combined basis amounted to an additional US$3.0 million. For the three months ended June 30, 2006, the Company had a pre- tax loss of US$32.4 million before Minority Interest and recorded an initial tax benefit of US$23.4 million on those losses. In addition, the Company recorded a US$112.4 million valuation allowance resulting in a total tax charge of US$89.0 million for the period. The Company's book value per share was US$17.73 at June 30, 2006 as compared to US$21.48 per share at December 31, 2005. Fully converted book value per share was US$19.27 at June 30, 2006 as compared to US$21.17 at December 31, 2005. About Scottish Re Scottish Re Group Limited -- http://www.scottishre.com/-- offers reinsurance of life insurance, annuities and annuity-type products through its operating companies in Bermuda, Charlotte, North Carolina, Grand Cayman Dublin, Ireland, and Windsor, United Kingdom. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated these rating actions: Scottish Re Group Limited -- IDR downgraded to 'BBB-' from 'BBB'; -- 4.5% $115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; -- 5.875% $142 million hybrid capital units downgraded to 'BB' from 'BB+'; -- 7.25% $125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. All ratings remain on Rating Watch Negative. Moody's Investor Services downgraded to Ba2 from Baa2 the senior unsecured debt rating of Scottish Re Group Limited following the Company's profit warning. The rating agency also downgraded to Baa2 from A3 the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (U.S.), Inc. All debt and IFS ratings of Scottish Re remain on negative outlook. These ratings were downgraded and remain on negative outlook: Scottish Re Group Limited: -- Senior Unsecured, to Ba2 from Baa2; -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2; -- Subordinate Shelf, to (P)Ba3 from (P)Baa3; -- Junior subordinate Shelf, to (P)B1 from (P)Ba1; -- Preferred Stock, to B1 from Ba1; -- Preferred Shelf, to (P)B1 from (P)Ba1 A.M. Best likewise downgraded the ICR of Scottish Re to "bb+" from "bbb-". A.M. Best Co. also downgraded the financial strength rating to B++ from A- and the issuer credit ratings to "bbb+" from "a-" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). All FSR and debt ratings have been placed under review with negative implications. The FSR has been downgraded to B++ from A- and the ICRs have been downgraded to "bbb+" from "a-" and placed under review with negative implications for these subsidiaries of Scottish Re Group Limited: -- Scottish Annuity & Life Insurance Company (Cayman) Ltd; -- Scottish Re (U.S.), Inc.; -- Scottish Re Life Corporation; -- Scottish Re Limited; and -- Orkney Re, Inc. The ICR has been downgraded to "bb+" from "bbb-" and placed under review with negative implications for Scottish Re Group Limited. These debt ratings have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb+" from "bbb-" on US$115 million 4.5% senior unsecured convertible notes, due 2022; -- "bb-" from "bb" on US$143 million 5.875% of hybrid capital units, due 2007; and -- "bb-" from "bb" on US$125 million non-cumulative preferred shares; Stingray Pass-thru Trust -- "bbb+" from "a-" on US$325 million senior unsecured pass-thru certificates, due 2012 These indicative ratings for debt securities under the shelf registration have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb-" from "bb" on preferred stock; -- "bb" from "bb+" on subordinated debt; and -- "bb+" from "bbb-" on senior unsecured debt. Scottish Holdings Statutory Trust II and III -- "bb" from "bb+" on preferred securities. Standard & Poor's Ratings Services placed its 'BBB- counterparty credit rating on Scottish Re Group Ltd. on CreditWatch with negative implications. Standard & Poor's also said that it placed its various ratings on Scottish Re's operating subsidiaries and other related entities on CreditWatch negative. The ratings will remain on CreditWatch until the capital has been raised and the company's strategic alternatives have been clarified. As a result, the ultimate ratings will depend on the resulting capital, liquidity, and business position of the company. SCOTTISH RE: Names Nathan Gemmiti as General Counsel ---------------------------------------------------- Scottish Re Group Limited (NYSE:SCT) has appointed Nathan V. Gemmiti as General Counsel. Mr. Gemmiti joined Scottish Re in 2003 as Chief Legal Counsel for Scottish Re's North American operations. He was appointed earlier this year to Senior Vice President, Associate Counsel for Scottish Re Group Limited. "I have worked closely with Nate for over three years and believe his rare combination of technical skills, rounded legal experience and industry perspective leave him particularly well suited for the position," Paul Goldean, Chief Executive Officer, remarked. Prior to working for Scottish Re, Mr. Gemmiti served as in-house corporate counsel for Forum Financial Group, LLC, since renamed Citigroup Global Transaction Services. Mr. Gemmiti obtained a B.A. from Saint Anselm College in Manchester, New Hampshire and a J.D. from Boston College School of Law. About Scottish Re Scottish Re Group Limited -- http://www.scottishre.com/-- offers reinsurance of life insurance, annuities and annuity-type products through its operating companies in Bermuda, Charlotte, North Carolina, Grand Cayman Dublin, Ireland, and Windsor, United Kingdom. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated these rating actions: Scottish Re Group Limited -- IDR downgraded to 'BBB-' from 'BBB'; -- 4.5% $115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; -- 5.875% $142 million hybrid capital units downgraded to 'BB' from 'BB+'; -- 7.25% $125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. All ratings remain on Rating Watch Negative. Moody's Investor Services downgraded to Ba2 from Baa2 the senior unsecured debt rating of Scottish Re Group Limited following the Company's profit warning. The rating agency also downgraded to Baa2 from A3 the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (U.S.), Inc. All debt and IFS ratings of Scottish Re remain on negative outlook. These ratings were downgraded and remain on negative outlook: Scottish Re Group Limited: -- Senior Unsecured, to Ba2 from Baa2; -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2; -- Subordinate Shelf, to (P)Ba3 from (P)Baa3; -- Junior subordinate Shelf, to (P)B1 from (P)Ba1; -- Preferred Stock, to B1 from Ba1; -- Preferred Shelf, to (P)B1 from (P)Ba1 A.M. Best likewise downgraded the ICR of Scottish Re to "bb+" from "bbb-". A.M. Best Co. also downgraded the financial strength rating to B++ from A- and the issuer credit ratings to "bbb+" from "a-" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). All FSR and debt ratings have been placed under review with negative implications. The FSR has been downgraded to B++ from A- and the ICRs have been downgraded to "bbb+" from "a-" and placed under review with negative implications for these subsidiaries of Scottish Re Group Limited: -- Scottish Annuity & Life Insurance Company (Cayman) Ltd; -- Scottish Re (U.S.), Inc.; -- Scottish Re Life Corporation; -- Scottish Re Limited; and -- Orkney Re, Inc. The ICR has been downgraded to "bb+" from "bbb-" and placed under review with negative implications for Scottish Re Group Limited. These debt ratings have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb+" from "bbb-" on US$115 million 4.5% senior unsecured convertible notes, due 2022; -- "bb-" from "bb" on US$143 million 5.875% of hybrid capital units, due 2007; and -- "bb-" from "bb" on US$125 million non-cumulative preferred shares; Stingray Pass-thru Trust -- "bbb+" from "a-" on US$325 million senior unsecured pass-thru certificates, due 2012 These indicative ratings for debt securities under the shelf registration have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb-" from "bb" on preferred stock; -- "bb" from "bb+" on subordinated debt; and -- "bb+" from "bbb-" on senior unsecured debt. Scottish Holdings Statutory Trust II and III -- "bb" from "bb+" on preferred securities. Standard & Poor's Ratings Services placed its 'BBB- counterparty credit rating on Scottish Re Group Ltd. on CreditWatch with negative implications. Standard & Poor's also said that it placed its various ratings on Scottish Re's operating subsidiaries and other related entities on CreditWatch negative. The ratings will remain on CreditWatch until the capital has been raised and the company's strategic alternatives have been clarified. As a result, the ultimate ratings will depend on the resulting capital, liquidity, and business position of the company. SCOTTISH RE: Appoints Clifford Wagner to Head North American Ops ---------------------------------------------------------------- Scottish Re Group Limited (NYSE:SCT), a global life reinsurance specialist, discloses of the appointment Clifford R. Wagner as Chief Executive Officer of the Company's North American business. Mr. Wagner has been with Scottish Re since 2000 and has served as the Company's Executive Vice President and Chief Actuary. "We are pleased to have an individual with Cliff's thorough knowledge of the Company and broad experience in the life reinsurance industry assume leadership for our North American operation," said Paul Goldean, President and Chief Executive Officer of Scottish Re Group Limited. Mr. Wagner has more than 20 years insurance experience and prior to Scottish Re, worked for TransAmerica Reinsurance Company, Time Insurance and the Hartford Insurance Group. Mr. Wagner holds a B.S. degree in actuarial mathematics from the University of Wisconsin, Madison. He is a Fellow of the Society of Actuaries (FSA), a Member of the American Academy of Actuaries (MAAA) and also has earned Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC) and Fellow Life Management Institute (FLMI) designations. Mr. Wagner succeeds Seth Vance who served as Chief Executive Officer -- North America since his appointment in April, 2004. Mr. Vance recently resigned in lieu of reassignment within the Company. "Together with other important achievements, Seth was instrumental in leading the ING integration and combining the best of both organizations to set new standards of excellence in our industry. We wish him success in his future endeavors," Mr. Goldean remarked. About Scottish Re Scottish Re Group Limited -- http://www.scottishre.com/-- offers reinsurance of life insurance, annuities and annuity-type products through its operating companies in Bermuda, Charlotte, North Carolina, Grand Cayman Dublin, Ireland, and Windsor, United Kingdom. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated these rating actions: Scottish Re Group Limited -- IDR downgraded to 'BBB-' from 'BBB'; -- 4.5% $115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; -- 5.875% $142 million hybrid capital units downgraded to 'BB' from 'BB+'; -- 7.25% $125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. All ratings remain on Rating Watch Negative. Moody's Investor Services downgraded to Ba2 from Baa2 the senior unsecured debt rating of Scottish Re Group Limited following the Company's profit warning. The rating agency also downgraded to Baa2 from A3 the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (U.S.), Inc. All debt and IFS ratings of Scottish Re remain on negative outlook. These ratings were downgraded and remain on negative outlook: Scottish Re Group Limited: -- Senior Unsecured, to Ba2 from Baa2; -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2; -- Subordinate Shelf, to (P)Ba3 from (P)Baa3; -- Junior subordinate Shelf, to (P)B1 from (P)Ba1; -- Preferred Stock, to B1 from Ba1; -- Preferred Shelf, to (P)B1 from (P)Ba1 A.M. Best likewise downgraded the ICR of Scottish Re to "bb+" from "bbb-". A.M. Best Co. also downgraded the financial strength rating to B++ from A- and the issuer credit ratings to "bbb+" from "a-" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). All FSR and debt ratings have been placed under review with negative implications. The FSR has been downgraded to B++ from A- and the ICRs have been downgraded to "bbb+" from "a-" and placed under review with negative implications for these subsidiaries of Scottish Re Group Limited: -- Scottish Annuity & Life Insurance Company (Cayman) Ltd; -- Scottish Re (U.S.), Inc.; -- Scottish Re Life Corporation; -- Scottish Re Limited; and -- Orkney Re, Inc. The ICR has been downgraded to "bb+" from "bbb-" and placed under review with negative implications for Scottish Re Group Limited. These debt ratings have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb+" from "bbb-" on US$115 million 4.5% senior unsecured convertible notes, due 2022; -- "bb-" from "bb" on US$143 million 5.875% of hybrid capital units, due 2007; and -- "bb-" from "bb" on US$125 million non-cumulative preferred shares; Stingray Pass-thru Trust -- "bbb+" from "a-" on US$325 million senior unsecured pass-thru certificates, due 2012 These indicative ratings for debt securities under the shelf registration have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb-" from "bb" on preferred stock; -- "bb" from "bb+" on subordinated debt; and -- "bb+" from "bbb-" on senior unsecured debt. Scottish Holdings Statutory Trust II and III -- "bb" from "bb+" on preferred securities. Standard & Poor's Ratings Services placed its 'BBB- counterparty credit rating on Scottish Re Group Ltd. on CreditWatch with negative implications. Standard & Poor's also said that it placed its various ratings on Scottish Re's operating subsidiaries and other related entities on CreditWatch negative. The ratings will remain on CreditWatch until the capital has been raised and the company's strategic alternatives have been clarified. As a result, the ultimate ratings will depend on the resulting capital, liquidity, and business position of the company. ========= I T A L Y ========= AVIO HOLDING: Moody's Places B1 Corp. Family Rating Under Review ---------------------------------------------------------------- Moody's Investors Service placed the B1 corporate family rating of Avio Holding S.p.A. on review for possible downgrade following the decision by Carlyle and Finmeccanica, which own 70% and 30% of Avio respectively, to sell their stakes to Cinven Ltd, a private-equity firm. The transaction values Avio at approximately EUR2.6 billion including debt. Moody's also understands that Finmeccanica will retain an interest in Avio. Moody's review for possible downgrade will consider the new capital structure following the transaction as well as the financial strategy of the new majority owner. Moody's will focus in particular on the resulting financial leverage, in the position of the debt within the capital structure and the capability of the company to service any additional amount of debt through its internal cash flow generation. Moody's acknowledges the operating performance improvements reported by Avio over the recent quarters. Headquartered near Turin, Italy, Avio is a leading designer and supplier of subsystems and components for military and civil aeroengines, including accessory gearbox modules and low- pressure turbine components. The company is also a leading independent manufacturer of power transmissions for turboprops and helicopters, and the sole supplier of solid rocket motors for space launchers to major European space program. For the year ending December 2005 the company generated revenues for approximately EUR1,281 million. =================== K A Z A K H S T A N =================== DIN-AI: Creditors Must File Claims by Sept. 8 --------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region declared LLP Din-ai insolvent. Creditors have until Sept. 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Atyrau Region 3rd Floor Abai Str. 10a Atyrau Atyrau Region EVRAZIA-XXI: Creditors Must File Claims by Sept. 8 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Evrazia-XXI insolvent on June 14 without the introduction of the bankruptcy proceedings. Creditors have until Sept. 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Region Gogol Str. 177a Kostanai Kostanai Region Kazakhstan INTERSERVIS CO: Proof of Claim Deadline Slated for Sept. 8 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Interservis Co Ltd. insolvent. Creditors have until Sept. 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Region Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan KAMKOR: Proof of Claim Deadline Slated for Sept. 8 -------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared CJSC Auto Service and Trade Kamkor insolvent on June 13. A temporary insolvency manager has been appointed. Creditors have until Sept. 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Office 35 Mihaelisa Str. 1 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan KAPITAL: Claims Registration Ends Sept. 8 ----------------------------------------- The Specialized Inter-Regional Economic Court of Aktobe Region declared JSC Kapital insolvent. Creditors have until Sept. 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktobe Region Altynsarina Str. 31 Aktobe Aktobe Region Kazakhstan KULTBYTSTROI: Claims Registration Ends Sept. 8 ---------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Kultbytstroi insolvent on June 12. Creditors have until Sept. 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Office 35 Mihaelisa Str. 1 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan VASAND-TK: Creditors' Claims Due Sept. 8 ---------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region declared LLP Vasand-TK insolvent. Creditors have until Sept. 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Atyrau Region 3rd Floor Abai Str. 10a Atyrau Atyrau Region Kazakhstan VOSTOK-PRODUKT: Creditors' Claims Due Sept. 8 --------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Vostok-Produkt insolvent on June 13. A temporary insolvency manager has been appointed. Creditors have until Sept. 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Region Office 35 Mihaelisa Str. 1 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan =================== K Y R G Y Z S T A N =================== TASH-KAL: Creditors Must File Claims by Sept. 18 ------------------------------------------------ LLC Tash-kal has declared insolvency. Creditors have until Sept. 18 to submit written proofs of claim to: LLC Tash-kal Ibraimov Str. 40 Bishkek, Kyrgyzstan ===================== N E T H E R L A N D S ===================== ORTHOFIX INT'L: Acquisition Spurs S&P to Revise Rating Outlook -------------------------------------------------------------- Standard & Poor's Ratings Services revised the CreditWatch implications on its 'BB-' corporate credit rating for Netherlands Antilles-based Orthofix International N.V. to negative from positive. "The CreditWatch revision reflects our concerns with the company's agreement to acquire spinal implant and biologic company Blackstone Medical Inc. for US$333 million," explained Standard & Poor's credit analyst Jesse Juliano. "The company will use term debt to finance this acquisition, which will significantly weaken its financial risk profile. Also, we remain concerned with the integration risks associated the relatively large acquisition, including the ability of Orthofix to compete directly with larger companies like Medtronic Inc. Standard & Poor's plans to meet with management to further discuss the acquisition and ensuing capital structure, and expect to resolve the CreditWatch listing within a few months." The rating on Orthofix was previously on CreditWatch with positive implications, recognizing the progress that the company had made in improving its credit profile by repaying debt. Despite Orthofix's impressive debt repayment, Standard & Poor's remained concerned with the potential for large debt-financed acquisitions, and was waiting to discuss the company's growth strategy with management before reviewing our rating for a potential upgrade. Given the announced Blackstone Medical acquisition, a higher rating is no longer possible in the near term. Because the rating will now be either affirmed or lowered upon resolution of the CreditWatch listing, the implications were revised to negative. PYATEROCHKA HOLDING: Buys 3,903 GDRs at US$16.50 Per Unit --------------------------------------------------------- Pyaterochka Holding N.V. has purchased 3,903 company GDRs, Aug. 1, at a gross price of US$16.50 per GDR. This acquisition was made as part of the company's 2006 GDR purchase program, launched June 30. The GDRs will be held as treasury stock and used to meet the company's obligations under its employee stock option programme. Headquartered in the Netherlands, Pyaterochka Holding N.V. (LSE: FIVE) -- http://www.e5.ru/english-- is a leading Russian food retailer operating a large store network largely covering the Moscow region and St. Petersburg but also with a good presence in other Russian regions through its franchise operations. The company has recently acquired two of its successful regional franchise operations -- in Yekaterinburg and Chelyabinsk. Pyaterochka's 2004 net revenues were US$1.1 billion. The company had unaudited net revenues of US$1.4 billion for 2005. * * * As reported in TCR-Europe on Aug 7, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Pyaterochka Holding N.V., the owner of Russia's largest grocery retail network. At the same time, Standard & Poor's affirmed its 'BB-' long-term corporate credit and 'ruAA-' Russia national scale ratings on Pyaterochka's guaranteed operating subsidiary OOO Agrotorg. The 'ruAA-' Russia national scale ratings on the senior unsecured and senior secured debt issued by related entity Pyaterochka Finance have also been affirmed. All ratings were removed from CreditWatch with negative implications, where they had been placed on April 12, following Pyaterochka's announced acquisition of Russia's leading supermarket chain Perekrestok. The outlook is negative. =========== R U S S I A =========== ASHLYK: Court Starts Bankruptcy Supervision ------------------------------------------- The Arbitration Court of Dagestan Republic has commenced bankruptcy supervision procedure on Bujnakskiy Combine of Grain Products Ashlyk. The case was docketed under Case No. A15-267/2005. The Temporary Insolvency Manager is: G. Murtazaev Ukhmanova Str. 12 Makachkala Dagestan Republic Russia Tel: 8(9722) 68-32-69 The Debtor can be reached at: Bujnakskiy Combine of Grain Products Ashlyk Gorkogo Str. 1 Buynaksk Dagestan Republic Russia BATURINSKOYE: Court Names A. Gorokhov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Smolensk Region appointed Mr. A. Gorokhov as Insolvency Manager for CJSC Baturinskoye. He can be reached at: A. Gorokhov Nakhimovskaya Str. 16. Kholm-Zhirkovskiy 215650 Smolensk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A62-1344/2006 (788-N/06). The Debtor can be reached at: CJSC Baturinskoye Bogolyubovo Kholm-Zhirkovskiy 215650 Smolensk Region Russia BOGOTOLSKIY BREWERY: A. Timoshkevich to Manage Assets ----------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed A. Timoshkevich as Insolvency Manager for OJSC Bogotolskiy Brewery. He can be reached at: A. Timoshkevich Post User Box 16795 660074 Krasnoyarsk-74 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-6333/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: Bogotolskiy Brewery Post User Box 16795 660074 Krasnoyarsk-74 Russia EUROPEAN TRADING: Court Names A. Kirichenko to Manage Assets ------------------------------------------------------------ The Arbitration Court of Krasnoyarsk Region appointed Mr. A. Kirichenko as Insolvency Manager for CJSC European Trading Company. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-7750/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC European Trading Company Sovetskaya Str. 2 Tura Krasnoyarsk Region Russia GAZPROM: Wins Auction to Explore & Develop Parusovy Prospect ------------------------------------------------------------ OAO Gazprom obtained a license to explore and develop the Parusovy prospect in the Yamal-Nenets Autonomous District at an auction held in Salekhard this week. The Parusovy prospect includes the homonymous oil & gas field and is part of a group of Parusovye fields. The group also comprises the Severo-Parusovoye and Yuzhno-Parusovoye fields (with 364 bcm of gas reserves) discovered through the exploration activities of Yamburggazdobycha (a wholly owned subsidiary of Gazprom). The group of Parusovye fields is located near the existing infrastructure of the Yamburgskoye oil & gas condensate field. Comprehensive development of fields in the Ob and Taz Bays (including the Kamennomysskoye-Sea, Severo-Kamennomysskoye, Obskoye fields with recoverable reserves of 818 bcm) and the Parusovye fields is of strategic significance and will help Gazprom optimize its development costs. The Parusovy prospect has 46.6 bcm and 1.2 million t of gas and oil reserves, respectively. In addition, the prospect contains 240 mtce of promising hydrocarbon resources. About Gazprom Headquartered in Moscow, Russia, OAO Gazprom (RTS: GAZP; MICEX: GAZP; LSE: OGZD) -- http://www.gazprom.ru/eng-- produces 94% of the country's natural gas, controls 25% of the world's reserves, and is also the world's largest gas producer. It focuses on gas exploration, processing, transport, and marketing. Standard & Poor's Ratings Services raised on Jan. 17, 2006, its long-term corporate credit rating on OAO Gazprom to 'BB+' from 'BB'. * * * As reported in TCR-Europe on Jan. 18, Standard & Poor's Ratings Services raised its long-term corporate credit rating on OAO Gazprom to 'BB+' from 'BB'. As reported in the TCR-Europe on Oct 27, 2005, Fitch Ratings upgraded Gazprom International S.A. Series 1 US$1.25-billion structured export notes due Feb. 1, 2020 (XS0197695009) to 'BBB' from 'BBB-'. The upgrade follows Fitch's upgrade of OAO Gazprom's, the world's largest gas company, Senior Unsecured local and foreign currency ratings to 'BB+' from 'BB', and a change in Gazprom's going concern assessment, which is now equivalent to a 'BBB' rating compared to 'BBB-' previously. KARAVAY: Court Names D. Glushkov as Insolvency Manager ------------------------------------------------------ The Arbitration Court of Krasnoyarsk Region appointed Mr. D. Glushkov as Insolvency Manager for LLC Karavay. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-6414/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: LLC Karavay Nikolaeva Str. 3 660073 Krasnoyarsk Region Russia KRASNOSELSKAYA: Krasnodar Court Starts Bankruptcy Supervision ------------------------------------------------------------- The Arbitration Court of Krasnodar Region has commenced bankruptcy supervision procedure on CJSC Agro Company Krasnoselskaya. The case is docketed under Case No. A-32-52765/2005-38/552 B. The Temporary Insolvency Manager is: A. Zaytsev Kozhevennaya Str. 18 350004 Krasnodar Region Russia The Debtor can be reached at: CJSC Agro Company Krasnoselskaya Lenina Str. 4a Sovetskiy Timashevskiy Region 352731 Krasnodar Region Russia KURSKAYA BEARING: Kursk Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Kursk Region has commenced bankruptcy supervision procedure on CJSC Kurskaya Bearing Company. The case is docketed under Case No. A35-3546/06 g. The Temporary Insolvency Manager is: N. Postnikov Post User Box 123 620039 Ekaterinburg Region Russia The Arbitration Court of Kursk Region is located at: K. Marksa Str. 25 305004 Kursk Region Russia The Debtor can be reached at: CJSC Kurskaya Bearing Company 3rd Agregatnaya Str. 23 305022 Kursk Region Russia LASVINSKOYE: Court Starts Bankruptcy Supervision ------------------------------------------------ The Arbitration Court of Perm Region has commenced bankruptcy supervision procedure on CJSC Lasvinskoye (TIN 59160013335). The case is docketed under Case No. A50-5114/2006-B. The Temporary Insolvency Manager is: A. Nagovitsyn Krasnovodskaya Str. 24-85 614067 Perm Region Russia The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: CJSC Lasvinskoye Tsentralnaya Str. 2 Mysy Krasnokamsk Perm Region Russia NOVATEK OAO: Posts Second Quarter 2006 Prelim Operating Figures --------------------------------------------------------------- OAO Novatek reported its preliminary production data for the second quarter and first half 2006. Gross production for the second quarter totaled 7.06 billion cubic meters of natural gas and 633,000 tons of liquids (gas condensate and crude oil). Natural gas production increased by 1.03 billion cubic meters, or by 17.1%, and gross liquids production increased by 68,000 tons, or by 12.0%, as compared with the corresponding gross production in the same period last year (excluding asset disposals). In the second quarter 2006, Novatek processed 505,000 tons of unstable gas condensate at the Purovsky Gas Condensate Processing Plant and polymer production from OAO NOVATEK-Polymer totalled 3,500 tons. In the first half of 2006, NOVATEK's gross production totaled 14.32 billion cubic meters of natural gas and 1.27 million tons of liquids. Natural gas production increased by 1.65 billion cubic meters, or by 13.0%. Production of gross liquids increased by 184 thousand tons, or by 16.9% as compared with the corresponding gross production in the first half of 2005 (excluding asset disposals). For the first six months of 2006, NOVATEK processed 1.034 million tons of unstable gas condensate at the Purovsky Plant and polymer production from OAO NOVATEK- Polymer totaled 8,200 tons. Dividend Declaration On July 26, the company's Board of Directors has proposed an interim dividend based on its first quarter 2006 results according to Russian Standards of Accounting. An Extraordinary General Meeting of shareholders has been scheduled to approve the interim dividend by a remote poll. The deadline for the acceptance of completed voting ballots is Sept. 11. Shareholders registered at the close of business on July 31 will be entitled to participate in NOVATEK's EGM and vote on the issue of the interim dividend. About Novatek Headquartered in Moscow, OAO Novatek is Russia's second largest gas company after state-controlled Gazprom, and the largest of the country's independent gas producers. * * * As reported in TCR-Europe on March 21, Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to OAO Novatek, Russia's largest independent gas producer. S&P said the outlook is stable. NOVOLIPETSK STEEL: Hikes Equity Stake in NTK to 100% ---------------------------------------------------- Novolipetsk Steel has completed the acquisition of an additional 30% stake in LLC NTK from LLC EuroAsian Transport Company. Through this transaction NLMK now holds 100% of shares in LLC NTK. LLC NTK is the key logistics provider for NLMK, arranging the transportation of the company's raw materials supply and delivering steel products to customers in Russia and abroad. The company manages NLMK's relations with Russian Railways and with port authorities for export products. This acquisition is in line with NLMK's previously announced internal restructuring plan, and of the key steps is a further consolidation of the Company's core assets. Share Listing Novolipetsk's ordinary shares are now listed on Russia's largest stock exchange, MICEX (Quotation List "B"). Listing the company's shares on MICEX is aimed at further increasing its liquidity. Novolipetsk Steel shares are also listed on the Russian Trade System stock exchange and on the London Stock Exchange. About the Company Headquartered in the Lipetsk Region of the Russian Federation, Novolipetsk Steel (LSE: NLMK), a Russian open joint-stock company, was established as a state owned enterprise in 1931 and was privatized in 1993, as part of the Russian privatization program. NLMK is the fourth largest Russian steel producer in terms of tonnage. It operates an integrated plant with complete metallurgical cycle with a total crude steel output of 9.1 million tons (in 2004). About 73% of NLMK's output is exported, mainly to South East Asia (representing 21% of exports), the European Union (29%) and North America (23%). * * * As reported in TCR-Europe on July 14, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia- based steelmaker OJSC Novolipetsk Steel to 'BB+' from 'BB'. The outlook is stable. The Russia national scale rating was also raised to 'ruAA+' from 'ruAA'. "The upgrade reflects the company's continuing strong performance and conservative financial policies," said Standard & Poor's credit analyst Tatiana Kordyukova. PENZENSKIY FACTORY: Penza Court Starts Bankruptcy Supervision ------------------------------------------------------------- The Arbitration Court of Penza Region has commenced bankruptcy supervision procedure on CJSC Penzenskiy Factory of Communal Engineering (TIN 5836610030). The case is docketed under Case No. A49-1905/2006-189b/3. The Temporary Insolvency Manager is: V. Batrakov Office 002 Pushkina Str. 2 Penza Region Russia The Debtor can be reached at: CJSC Penzenskiy Factory of Communal Engineering Stavskogo Str. 4 Penza Region Russia PRYAMITSINO: Kursk Court Starts Bankruptcy Supervision ------------------------------------------------------ The Arbitration Court of Kursk Region has commenced bankruptcy supervision procedure on LLC Agro Company Pryamitsino. The case was docketed under Case No. A35-2711/06 g. The Temporary Insolvency Manager is: V. Sakhno Post User Box 90 123290 Moscow Region Russia The Arbitration Court of Kursk Region is located at: K. Marksa Str. 25 305004 Kursk Region Russia The Debtor can be reached at: LLC Agro Company Pryamitsino Chernitsyno 5 Oktyabrskiy Region Kursk Region Russia PYATEROCHKA HOLDING: Buys 3,903 GDRs at US$16.50 Per Unit --------------------------------------------------------- Pyaterochka Holding N.V. has purchased 3,903 company GDRs, Aug. 1, at a gross price of US$16.50 per GDR. This acquisition was made as part of the company's 2006 GDR purchase program, launched June 30. The GDRs will be held as treasury stock and used to meet the company's obligations under its employee stock option programme. Headquartered in the Netherlands, Pyaterochka Holding N.V. (LSE: FIVE) -- http://www.e5.ru/english-- is a leading Russian food retailer operating a large store network largely covering the Moscow region and St. Petersburg but also with a good presence in other Russian regions through its franchise operations. The company has recently acquired two of its successful regional franchise operations -- in Yekaterinburg and Chelyabinsk. Pyaterochka's 2004 net revenues were US$1.1 billion. The company had unaudited net revenues of US$1.4 billion for 2005. * * * As reported in TCR-Europe on Aug 7, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Pyaterochka Holding N.V., the owner of Russia's largest grocery retail network. At the same time, Standard & Poor's affirmed its 'BB-' long-term corporate credit and 'ruAA-' Russia national scale ratings on Pyaterochka's guaranteed operating subsidiary OOO Agrotorg. The 'ruAA-' Russia national scale ratings on the senior unsecured and senior secured debt issued by related entity Pyaterochka Finance have also been affirmed. All ratings were removed from CreditWatch with negative implications, where they had been placed on April 12, following Pyaterochka's announced acquisition of Russia's leading supermarket chain Perekrestok. The outlook is negative. SHARYPOVSKAYA KNITTING: D. Glushkov to Manage Assets ---------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. D. Glushkov as Insolvency Manager for CJSC Sharypovskaya Knitting Factory. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-6143/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC Sharypovskaya Knitting Factory 2nd Location 14 Sharypova 632313 Krasnoyarsk Region Russia SIBERIAN TRADING: Court Names L. Sitkina as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Ms. L. Sitkina as Insolvency Manager for LLC Siberian Trading Company. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-7241/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: LLC Siberian Trading Company Divnogorsk Krasnoyarsk Region Russia TATNEFT OAO: Taps PwC to Audit U.S. GAAP Financial Statements ------------------------------------------------------------- OAO Tatneft (LSE: ATAD; NYSE: TNT) disclosed that its financial statements for the year ended Dec. 31, 2005, prepared in accordance with U.S. accounting principles, are being audited by ZAO PricewaterhouseCoopers Audit. As previously reported, the Company expects to publish its 2005 U.S. GAAP financial statements and file its annual report on Form 20-F for 2005 with the U.S. Securities and Exchange Commission, as well as releasing its unaudited U.S. GAAP financial statements for the first half of 2006 in first quarter 2006. The Company is to announce a more detailed timetable for finalizing its 2005 U.S. GAAP financial statements, the filing of its 2005 20-F and the publication of its unaudited U.S. GAAP financial statements for the first half of 2006 by the end of August this year. The decision to engage PwC was made following a review by the Company of its work with external auditors and consultants relating to the preparation of the Company's financial statements under U.S. GAAP and discussions between the Company and the auditors of its U.S. GAAP financial statements for previous years. The Company's U.S. GAAP financial statements for the years ended December 31, 2003 and 2004 respectively, were audited by Ernst & Young, and the Company's U.S. GAAP financial statements for periods prior to that were audited by PwC. Stock Delisting As previously disclosed, the Company intends to delist its securities from the New York Stock Exchange and, when circumstances permit, to deregister from the U.S. Securities and Exchange Commission. At the same time, the Company reinforces its commitment to strong corporate governance practices and adherence to regular disclosure about the Company's financial position and operations pursuant to recognized international standards and regulatory requirements (including those of the U.K. Listing Authority in connection with the listing of the Company's securities on the London Stock Exchange). OAO Tatneft is Russia's sixth largest oil production company, operating mainly in the semi-autonomous Republic of Tatarstan (BB /Stable Outlook/B) located approximately 750 km southeast of Moscow within the Russian Federation. Tatneft and its subsidiaries are engaged in crude oil exploration, development and production, representing over 80% of all the crude oil produced in Tatarstan. The company is also engaged in the refining and marketing of crude oil and refined products as well as petrochemicals and has interest in banking sector via its ownership in Zenit-Devon Credit Bank group. The Republic of Tatarstan holds a 36% interest in Tatneft as well as a golden share. As such, the Republic is able to exercise considerable influence over the company's business operations. * * * As reported in TCR-Europe on Aug. 7, Fitch Ratings changed Tatarstan-based Tatneft's Outlook to Positive from Stable. It's Issuer Default and Short-term ratings are affirmed at B. The revised Outlook is based on Fitch's expectations that Tatneft will be able to significantly enhance its business profile with the commissioning of its new refinery at Nizhnekamsk. The new refinery is designed to address the two problems that have beset the Russian oil industry, through the efficient refining of sour crude oil and improving the quality of Russian export crude. VNESHTORGBANK: Sets RUB17 Billion Lending Limit for Avtovaz ----------------------------------------------------------- Vneshtorgbank has set on Aug. 1 a RUB17 billion lending limit for JSC Avtovaz and its subsidiaries, in an effort to extend its cooperation with the leading Russian carmaker. The decision was made within the framework of a Strategic Cooperation Agreement signed by the Bank and the enterprise in April this year. This allowed the parties to add new dimensions to their partnership in all areas of financial activity. The limit set will enable AVTOVAZ to exploit VTB's wide capacities in financing current and investment demands of the enterprise, as well as its export-import operations, which include raising foreign funds and applying the whole spectrum of instruments accepted in the international banking practice. Within this limit, the carmaker will be able to raise funds maturing in seven years, and part of the operations can be implemented without any security provided. Also, the Bank will continue trading in AVTOVAZ securities and performing its Treasury operations. Cooperation between the Bank and the largest Russian carmaker started back in 2002. Last year, a number of operations were implemented, including the financing of equipment imports for AVTOVAZ. Additionally, during the years 2003 - 2005, VTB acted as an arranger for three of the enterprises bond issues totaling RUB9 billion. In April, when the Agreement was signed, the credit limit set by VTB for AVTOVAZ and its subsidiaries was RUB5 billion. About the Company Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. At the beginning of 2006, VTB purchased a 98% stake in the Bank Mriya located in Ukraine. VTB has operated under a full banking License No. 1000 from the Central Bank of the Russian Federation since 1990. With 23,145 employees as of Dec. 31, 2005, the Group operates in the commercial banking sector including deposit taking and commercial lending, support of clients' export/import transactions, foreign exchange, securities trading, and trading in derivative financial instruments. The Government of the Russian Federation is the main shareholder of VTB and owns through the Federal Property Management Agency 99.9% of its registered share capital. * * * As reported in TCR-Europe on July 31, Following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. WORLD OF FABRICS: Court Names O. Zinina as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Moscow appointed Ms. O. Zinina as Insolvency Manager for CJSC World of Fabrics. She can be reached at: O. Zinina Post User Box 56 5 Avgusta Str. 54 302004 Orel Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-11720/06-86-16b. The Debtor can be reached at: CJSC World of Fabrics Building 1 Sherbakova Str. 40-42 105187 Moscow Region Russia YAMAL-GAS-STROY-INVEST: Court Names V. Opryshko to Manage Assets ---------------------------------------------------------------- The Arbitration Court of Yamalo-Nenetskiy Autonomous Region appointed Mr. V. Opryshko as Insolvency Manager for CJSC Yamal- Gas-Stroy-Invest (TIN 8903019543). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A81-1546/2005. The Arbitration Court of Yamalo-Nenetskiy Autonomous Region is located at: Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Autonomous Region Russia The Debtor can be reached at: CJSC Yamal-Gas-Stroy-Invest Danily Zvereva Str. 516 Nadym Yamalo-Nenetskiy Autonomous Region YUKOS OIL: Court Reduces Yugansk Claim to US$770 Million -------------------------------------------------------- The Moscow Arbitration Court has reduced Yuganskneftegaz's claim against OAO Yukos Oil Co. from US$5.2 billion to US$770 million, RIA Novosti reports. Yugansk, the former core production unit of Yukos, was bought by state-owned Rosneft in December 2004 after the Russian government seized the asset as payment for more than US$30 billion in tax arrears for 2000-2003. Yukos, declared bankrupt last week, retains a stake in Yugansk. According to the Russian news agency, Rosneft will likely purchase Yukos's assets in its upcoming liquidation. The court's decision follows a ruling in May to substantially cut the tax claims against Yugansk for the 1999-2003 period, RIA relates. The arbitration court will reconvene a hearing tomorrow, Aug. 10, to consider the claims against Yukos. Yukos creditors listed in the claims register include: Company Amount ------- ------ Russian Federal Tax Service RUB353.8 billion Yuganskneftegaz More than RUB108.8 billion Tomskneft-BNK RUB12.3 billion Samaraneftegaz RUB1.85 billion Yukos-Moscow RUB933 million Siberia Service Company RUB228.4 million Yukos-RM RUB131.3 million Yukos-EP RUB110 million Prikaspiiburneft RUB54.9 million Sibinteklizing RUB52 million Orelnefteprodukt RUB25.7 million Tyumenskaya Kompleksnaya RUB24.1 million Geologorazvedochnaya Ekspeditsiya Cargill Yug RUB18.8 million BDO Unicon Consulting Around RUB12 million Yukos-Vostok Trade RUB4 million M-Reestr RUB3.5 million Progress insurance company RUB2.3 million MGTS RUB586,000 Center of Rescue and Environmental Around RUB$90,000 As reported in TCR-Europe on July 27, Yukos's creditors, led by the Federal Tax Service and Rosneft, will oversee the liquidation and distribution of the company's assets. About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. The expected court ruling paves the way for the company's liquidation and auction. =========== T U R K E Y =========== ALTERNATIFBANK A.S.: Fitch Keeps IDR at B+ with Outlook Positive ---------------------------------------------------------------- Fitch Ratings changed the Outlook on Turkey-based Alternatifbank A.S.'s foreign and local currency Issuer Default ratings and National Long-term rating to Positive from Stable. Its foreign and local currency Issuer Default ratings are affirmed B+ and National Long-term rating at BBB+. Other ratings are affirmed at Short-term foreign and local currency B, Individual D and Support 4. The change in Outlook to Positive reflects the prospect of a higher probability of support from its majority shareholder the Anadolu Group, should its subsidiaries, Anadolu Efes Biracilik ve Malt Sanayii A.S. ("Efes") and Coca-Cola Icecek ("CCI"), be upgraded. Although Fitch does not rate the Anadolu Group, its opinion on the support is based on its ratings on the group subsidiaries Efes and CCI. There is a possible upgrade for these subsidiaries' ratings (both at foreign currency IDRs BB- with Positive Outlook), which could result in a higher Support rating for ABank and hence higher IDR and Long-term rating. In the event of financial difficulties, ABank's primary source of support would be the Anadolu Group. While Fitch recognizes that Anadolu Group has a high propensity to support, its ability to do so is limited because Efes' and CCI's foreign currency IDRs are capped by the BB- foreign currency IDR rating of Turkey. The Individual rating reflects the risks related to ABank's rapid loan growth in a potentially volatile operating environment, potential impact of concentrated loan portfolio on asset quality and a limited franchise. These are balanced by its adequate capitalization, improved efficiency and better profitability. The recent volatility in the Turkish financial markets, including higher interest rates and depreciation of the Turkish Lira, is unlikely to adversely affect ABank's ratings. In the medium term, upside to the Individual rating and the IDRs could come from further improvements in asset quality, decreasing concentration of the loan portfolio, strengthening of its franchise and sustained profitability. Downside to the Individual rating and the IDRs could come from a major and persistent deterioration in the Turkish economy resulting in widespread asset quality problems. ABank is a lower mid-sized bank mainly focused on small and medium-sized enterprises. It has 26 branches at end-2005. ABank is majority-owned by the Anadolu Group; the remaining 5% of the shares were publicly held at end-2005. The Anadolu Group has interests in beverages, bottling, brewing, food, automotive manufacturing and distribution, consumer durables, stationery, packaging, tourism, health and financial services through several joint ventures with international companies. In 2005 the Anadolu Group's total turnover, excluding the finance sector, was US$2.9 billion (2004: US$2.3 billion, 70% of which was generated by beverages). ============= U K R A I N E ============= AGROUKRTORG: Court Names O. Sherban as Insolvency Manager --------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. O. Sherban as Liquidator/Insolvency Manager for LLC Agroukrtorg (code EDRPOU 33149647). He can be reached at: O. Sherban a/b 157 01030 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 17. The case is docketed under Case No. 23/128-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 Agroukrtorg Obolonskij Avenue 23-a 04205 Kyiv Region Ukraine BOKAR INVEST: Court Names L. Misukevich as Liquidator ----------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. L. Misukevich as Liquidator/Insolvency Manager for LLC Bokar Invest (code EDRPOU 32101946). He can be reached at: L. Misukevich Gagarin Str. 7 Makariv 08000 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 19. The case is docketed under Case No. 194/2b-2006. 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 Bokar Invest Kiyivska Str. 109 Kalinivka Makariv District 08004 Kyiv Region Ukraine CHIGIRINENERGOBUDTRANS: Mikola Zanko to Manage Assets ----------------------------------------------------- The Economic Court of Cherkassy Region appointed Mikola Zanko as Liquidator/Insolvency Manager for OJSC Chigirinenergobudtrans (code EDRPOU 21356221). He can be reached at: Mikola Zanko Dnipra Str. 81/409 Geroiv 18021 Cherkassy Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on March 21. The case is docketed under Case No. 01/1379. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: OJSC Chigirinenergobudtrans Vitove Chigirin District Cherkassy Region Ukraine KRASNOPEREKOPSKIJ BREAD: Volodimir Bida to Liquidate Assets ----------------------------------------------------------- The Economic Court of AR Krym Region appointed Volodimir Bida as Liquidator/Insolvency Manager for Krasnoperekopskij Bread Products Combine (code EDRPOU 31728055). He can be reached at: Volodimir Bida Rudnikova Str. 8 Simferopol 95023 AR Krym Region The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 6. The case is docketed under Case No. 2-5/10148-2006. 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: Krasnoperekopskij Bread Products Combine Elevatorna str. Pochetne Krasnoperekopskij District AR Krym Region Ukraine LUBASHIVKA' AGRICULTURAL: Dmitro Abmayev to Manage Assets --------------------------------------------------------- The Economic Court of Odessa Region appointed Dmitro Abmayev as Liquidator/Insolvency Manager for OJSC Lubashivka' Agricultural Machine-Technological Station (code EDRPOU 30084451). The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 6. The case is docketed under Case No. 2/44-05-1371. The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region Ukraine The Debtor can be reached at: OJSC Lubashivka' Agricultural Machine-Technological Station Zavokzalna Str. 10 Lubashivka 66500 Odessa Region Ukraine ENERGO-ROST: Kyiv Court Names I. Zolochinska as Liquidator ---------------------------------------------------------- The Economic Court of Kyiv Region appointed Ms. I. Zolochinska as Liquidator/Insolvency Manager for LLC ENERGO-ROST (code EDRPOU 33149254). She can be reached at: I. Zolochinska Bratislavska Str. 14-b 02256 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 9. The case is docketed under Case No. 43/361. 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 Energo-Rost Bratislavska Str. 14-b 02256 Kyiv Region Ukraine NAFTA-TRADE: Kyiv Court Names Igor Kapelushnij as Liquidator ------------------------------------------------------------ The Economic Court of Kyiv Region appointed Igor Kapelushnij as Liquidator/Insolvency Manager for LLC Nafta-Trade (code EDRPOU 32153708). 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 27. The case is docketed under Case No. 23/288-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 Nafta-Trade Melnikov Str. 81 04050 Kyiv Region Ukraine NAFTOTRADER: Court Names Igor Kapelushnij as Liquidator ------------------------------------------------------- The Economic Court of Kyiv Region appointed for LLC Igor Kapelushnij as Liquidator/Insolvency Manager Naftotrader (code EDRPOU 31812529). 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. 23/280-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 Naftotrader Klovskij uzviz Str. 18 01021 Kyiv Region Ukraine PRESTO: Kyiv Court Names O. Sherban as Insolvency Manager --------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. O. Sherban as Liquidator/Insolvency Manager for LLC Presto (code EDRPOU 31810427). He can be reached at: O. Sherban a/b 157 01030 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 13. The case is docketed under Case No. 23/261-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 Presto Sklyarenko Str. 5 04073 Kyiv Region Ukraine PIVDENNA: Court Names Sergij Zhukov as Insolvency Manager --------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Sergij Zhukov as Liquidator/Insolvency Manager for OJSC Bird Factory Pivdenna (code EDRPOU 01529398). He can be reached at: Sergij Zhukov a/b 3422 49055 Dnipropetrovsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on March 3. The case is docketed under Case No. B 15/144/05. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: OJSC Bird Factory Pivdenna Yuzhnoye Nikopol District Dnipropetrovsk Region Ukraine RADOPS: Kyiv Court Names D. Shapovalenko as Liquidator ------------------------------------------------------ The Economic Court of Kyiv Region appointed Mr. D. Shapovalenko as Liquidator/Insolvency Manager for LLC RADOPS (code EDRPOU 33833839). He can be reached at: D. Shapovalenko Pestel Str. 11 01135 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 9. The case is docketed under Case No. 43/362. 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 Radops Pestel Str. 11 01135 Kyiv Region Ukraine REAL: Cherkassy Court Names Mikola Zanko as Insolvency Manager -------------------------------------------------------------- The Economic Court of Cherkassy Region appointed Mikola Zanko as Liquidator/Insolvency Manager for LLC Real (code EDRPOU 31653742). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 14/2105. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: LLC Real Radyanska Str. 21 Chigirin Cherkassy Region Ukraine =========================== U N I T E D K I N G D O M =========================== AFOS LIMITED: Five Arrows Hires Receivers from Tenon Recovery ------------------------------------------------------------- Five Arrows Commercial Finance appointed Christopher Ratten and Martin Shaw of Tenon Recovery joint administrative receivers of AFOS Limited (Company Number 03659057) on July 27. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Headquartered in Kingswood, United Kingdom, AFOS Limited -- http://www.afosgroup.com/-- manufactures stainless steel equipments for the medical and food industries. APPLETREE COTTAGE: Names Administrators from Begbies Traynor ------------------------------------------------------------ D. F. Wilson and J. N. R. Pitts of Begbies Traynor were appointed joint administrators of Appletree Cottage Limited (Company Number 02680366), Cottage Industries Limited (Company Number 03243552) and Candy Cottage Limited (Company Number 03192076) on July 3. 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 Bradford, United Kingdom, Appletree Cottage Limited, Cottage Industries Limited and Candy Cottage Limited -- http://www.cottageindustries.co.uk/-- is engaged in manufacturing confectionery and printing greeting cards. APW ELECTRONICS: Royal Bank of Scotland Appoints Kroll Receivers ---------------------------------------------------------------- The Royal Bank of Scotland PLC appointed Andrew J. Pepper and Alastair P. Beveridge of Kroll Limited joint administrative receivers of APW Electronics Limited (Company Number 00701364) and APW Enclosure Systems Limited (Company Number 00098900) on July 26. Headquartered in London, United Kingdom, Kroll Limited -- http://www.krollworldwide.com/-- offers risk-consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Headquartered in Warwickshire, United Kingdom, APW Electronics Limited and APW Enclosure Systems Limited is engaged in engineering and manufacturing electronic equipments. ATMEL CORP: Steven Laub Replaces George Perlegos as CEO ------------------------------------------------------- Atmel Corp.'s Board of Directors, by unanimous vote of the independent directors, has appointed Steven Laub, currently a director of Atmel and a 15-year industry veteran, as the Company's President and Chief Executive Officer, effective immediately. Mr. Laub's appointment follows the unanimous decision of the Board's independent directors to terminate: -- George Perlegos, as: * President, and * Chief Executive Officer; -- Gust Perlegos, as: * Executive Vice President, Office of the President; * the Vice President and General Counsel and Assistant Secretary; and * the Vice President of Planning and Information Technology. The Board's decision was made following an independent investigation into allegations regarding the misuse of corporate travel funds. Messrs. George Perlegos and Gust Perlegos have been asked to resign as directors of the Company. "We are pleased that Steve will share his knowledge and significant strategic planning, operating, and financial experience with our Company," said David Sugishita, director and newly appointed Non-executive Chairman of the Board of Atmel. "As a director, Steve is already familiar with Atmel's business and has an appreciation of our Company's strengths and its dedicated employees. His appointment, together with the strong engineering, sales and marketing teams in place and our more than 8,000 employees worldwide, provide the guidance and stability Atmel needs to successfully manage through this period of change and build on the Company's strong operating foundation." "I am honored that the Board has selected me to lead Atmel," Mr. Laub said. "T[he] actions do not detract from our commitment to the superior service and innovative technology that has set Atmel apart for more than 20 years. We understand the challenges ahead and are committed to successfully addressing them. Atmel's solid operating performance demonstrates that Atmel's customers have confidence in our Company, our people and our products." "Thanks to the hard work and dedication of Atmel's employees, our base business remains sound," said Robert Avery, Atmel's Vice President Finance and Chief Financial Officer. "We have introduced a number of new products over the past few months that we believe will help us maintain this positive momentum. We are also making progress on our efforts to refocus on high- growth markets, lower costs and improve efficiencies. By staying focused on our goals, we are confident that Atmel will continue capturing the opportunities in our marketplace." Mr. Laub, 47, has served as a director of Atmel since Feb. 10, 2006. He most recently was a technology partner at Golden Gate Capital Corporation, a private equity buyout firm, and the Executive Chairman of Teridian Semiconductor Corporation, a fabless semiconductor company. From 2004 to 2005, Mr. Laub was President and Chief Executive Officer of Silicon Image, Inc., a provider of semiconductor solutions. Prior to that time, Mr. Laub spent 13 years in executive positions (including President, Chief Operating Officer and member of the Board of Directors) at Lattice Semiconductor Corporation, a supplier of programmable logic devices and related software. Prior to joining Lattice Semiconductor, Mr. Laub was a partner at Bain and Company, a global strategic consulting firm. Mr. Laub holds a degree in economics from the University of California, Los Angeles (BA) and a degree from Harvard Law School (JD). Atmel said the disclosure is unrelated to the Company's July 25, 2006 announcement that the Board's Audit Committee, together with independent legal counsel and independent accounting consultants, is conducting an investigation regarding the timing of past stock option grants and other potentially related issues. The Audit Committee's investigation is ongoing and, as previously announced, the Company does not expect the investigation to be completed prior to the due date for the Company's second-quarter Form 10-Q, Aug. 9, 2006, or the extended due date of Aug. 14, 2006. Atmel executives will refrain from commenting further on this matter until the independent investigation is concluded. About Atmel Atmel Corp. -- http://www.atmel.com/-- (Nasdaq: ATML) designs and manufactures microcontrollers, advanced logic, mixed- signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel is able to provide the electronics industry with complete system solutions. It is focused on consumer, industrial, security, communications, computing and automotive markets. * * * Standard & Poor's Rating Services assigned its single-B long- term foreign issuer and long-term local issuer credit ratings to Atmel Corp. on Oct. 24, 2001, and said the outlook, at that time, was negative. COMMUNICATIONS COMPLETE: Joint Liquidators Take Over Operations --------------------------------------------------------------- Neil Henry and Michael Simister of Lines Henry were appointed Joint Liquidators of Communications Complete Limited at an extraordinary general meeting of members on May 11. The company can be reached at: Communications Complete Limited 125 High Street Weston-Super-Mare Avon BS231HN United Kingdom Tel: 0870 050 5988 COUNTRYMAN JOHN: Taps Andrew Rosler to Liquidate Assets ------------------------------------------------------- Andrew Rosler of Ideal Corporate Solutions Limited was appointed Liquidator of Countryman John & Co. Limited on May 9. The company can be reached at: Countryman John & Co. Limited The Rural Workshops Lake Road Coniston Cumbria LA218EW United Kingdom Tel: 015394 411 29 Fax: 015394 411 29 Web: http://www.countrymanjohn.co.uk/ CRYSTAL TRANSPORT: Creditors' Meeting Slated for August 15 ---------------------------------------------------------- Creditors of Crystal Transport Services Limited (Company Number 04404989) will meet at 11:30 a.m. on Aug. 15 at: 25 Harley Street London W1G 9BR United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 14 at: Bernard Hoffman and Ian Douglas Yerrill Joint Administrators Gerald Edelman Suite 2 Kent House Station Road Ashford Kent TN23 1PP United Kingdom Tel: 01233 666 280 Fax: 01233 666 281 Gerald Edelman -- http://www.geraldedelman.com/-- is registered to carry on audit work by the Institute of Chartered Accountants in England and Wales and is authorized and regulated by the Financial Services Authority. Gerald Edelman Financial Solutions Ltd is an appointed representative of Independent Solutions Group Ltd who is regulated by the Financial Services Authority. E.J. WHITE: Creditors' Meeting Slated for August 16 --------------------------------------------------- Creditors of E.J. WHITE & SON LIMITED (Company Number 02463666) will meet at 11:00 a.m. on Aug. 16 at: 67 Butts Green Road Hornchurch Essex RM11 2JX United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 15 at: J.S. French and G. Mummery Joint Administrators Vantis Redhead French 43-45 Butts Green Road Hornchurch Essex RM11 2JX United Kingdom Tel: 01708 458211 Fax: 01708 442308 FARRINGDON MORTGAGES: Fitch Affirms GBP3.13-Mln Class B2a at B -------------------------------------------------------------- Fitch Ratings affirmed all tranches of Farringdon Mortgages No. 1 PLC (FM1) and Farringdon Mortgages No. 2 PLC (FM2). Both transactions are originated by Rooftop Mortgages Limited, a subsidiary of Bear Stearns Companies Inc. (rated A+/F1+), and had been the subject of a renewed full loan-by-loan and cash flow analysis. Farringdon Mortgages No. 1 PLC: -- GBP18.67 million Class A1a (ISIN XS0211289961) and A1a DAC (ISIN XS0211293138) affirmed at AAA; -- GBP50 million Class A2a (ISIN XS0211295778) and A2a DAC (ISIN XS0211296313) affirmed at AAA; -- GBP17.5 million Class M2a (ISIN XS0211300362) affirmed at A-; -- GBP4.38 million Class B1a (ISIN XS0211301766) affirmed at BBB-; -- GBP3.13 million Class B2a (ISIN XS0211303382) affirmed at B; and -- MERCS (ISIN XS0211306641) affirmed at AAA. Farringdon Mortgages No. 2 PLC: -- GBP65.99 million Class A1a (ISIN XS0228709043) and A1a DAC (ISIN XS0228709555) affirmed at AAA; -- GBP84 million Class A2a (ISIN XS0228709985) and A2a DAC (ISIN XS0228710561) affirmed at AAA; -- GBP23.5 million Class M2a (ISIN XS0228711882) affirmed at A; -- GBP7.4 million Class B1a (ISIN XS0228712260) affirmed at BBB; -- GBP5.1 million Class B2a (ISIN XS0228712930) affirmed at BB; and -- MERCS (ISIN XS0228713235) affirmed at AAA. Following the second reserve fund draw in FM1 on the July interest payment date ("IPD"), Fitch has remodeled both transactions issued by RML. The remodeling exercise shows that credit enhancement is sufficient to support the ratings of all tranches at their current levels. While the ratings have been affirmed, Fitch notes there remains potential for future drawings in both transactions when further losses are realized. The underlying collateral in both deals include a substantially higher proportion of heavy adverse credit borrowers compared to other U.K. non-conforming transactions in the market today. The relatively high exposure to loans that Fitch considers to be key drivers of default was reflected in the initial credit enhancement levels. RML no longer offers heavy adverse products at higher loan-to- value categories. However, this does not affect the performance of FM1 or FM2, which already contain exposure to these loans. In FM1, the three months plus arrears position including repossessions, improved to 18.73% of the outstanding portfolio at the July IPD (19.47% the previous quarter). However, there has been an increase in cases where these arrears have passed from being in possession to being sold and, which therefore exit the three months plus arrears category. Cumulative sold repossession cases now account for 3.78% of the initial portfolio balance, versus 1.33% at the time of the first reserve fund draw, in April 2006. As arrears cases are now exiting the portfolio through repossession and sale, Fitch has conducted further analysis on these cases, in particular where a loss has crystallized. Higher loss severities have been experienced predominantly in London and its surrounding areas, with 13 of the 15 properties to realize a loss this quarter located in this region. The largest loss severity seen to date is 26.72%. Unsurprisingly, the largest loss severities are at the higher end of the LTV bracket, with nine of the 15 having LTVs in excess of 85%. To date, the overall FM1 loss severity for repossessed cases is 9.84%. Average loss severities remain below loss severity assumptions for the lowest rated note category of B. Cumulative principal loss at the July IPD accounted for 0.53% of the initial portfolio. FM2, while less seasoned than the first transaction at 13.53 months, is following the same trend. With over 50% of the serious arrears and unsold repossessed cases secured on properties in or around the London region, Fitch expects to see further losses crystallized in the coming quarters. Currently, cumulative loss on the total portfolio is low at 0.04% of the initial portfolio, but there are still a number of properties in possession, which are expected to progress to sale. Out of the 11 properties currently in possession, six are located in or around the London region. House price increases in London in the last few months may potentially lead to relatively higher recovery prospects and lower loss severities for London properties currently in possession. Prepayment rates are rising in both transactions. In FM1, the rate increased to 41.12% from 27.92% in the previous quarter, while FM2's increased to 15.67% from 8.8%. The FM1 rate is expected to remain high as those borrowers who are able to refinance do so at more attractive rates, while serious arrears cases get pushed to repossession and sale. The FM2 prepayment rate is expected to build steadily as more borrowers see their teaser rates expire leaving them free to refinance. This will have a positive impact on deleveraging the deal and building levels of CE, as well as mitigating the impact of the high detachable coupon rates (2.59% and 2.13% in FM1 and FM2, respectively). Reversion to the full stabilized rate, from the discounted margins should theoretically benefit both transactions, but stretched affordability at the higher loan rate could cause an increase in arrears levels for those borrowers that remain in the pool. Also, given that mortgage discounts for FM2 are only fully cash collateralized for the first year, the weighted average mortgage margin will reduce after October 2006. As a result, future reserve fund draws may become more likely. For FM2, the pace of build-up in the reserve fund has been slowing steadily over previous quarters, which also points to an increased likelihood of a future reserve draw. FRANCESCO'S LIMITED: Names J. N. Bleazard Liquidator ---------------------------------------------------- J. N. Bleazard of XL Business Solutions Ltd. was appointed Liquidator of Francesco's Limited on May 12 by resolutions of members and creditors. The company can be reached at: Francesco's Limited Viking House Denmark Street Maidenhead Berkshire SL6 7BN Tel: 01628 788645 FREEABLE PROJECTS: Appoints Halstead Bottomley as Liquidator ------------------------------------------------------------ Halstead Bottomley of Bottomley & Co. was appointed Liquidator of Freeable Projects Limited on May 11 by resolutions of members and creditors. The company can be reached at: Freeable Projects Limited 27 Rectory Road Upton-Upon-Severn Worcester WR8 0NB United Kingdom Tel: 01684 594 226 GAINSBOROUGH U.K.: Creditors' Meeting Slated for August 17 ---------------------------------------------------------- Creditors of Gainsborough U.K. Limited (Company Number 03908222) will meet at 10:00 a.m. on Aug. 17 at: Grant Thornton U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 16 at: D. R. Whiteley Smith Joint Administrator Grant Thornton U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP United Kingdom Tel: 020 7383 5100 Fax: 020 7383 4715 Headquartered in London, Grant Thornton UK LLP -- http://www.grant-thornton.co.uk/-- is the UK member of Grant Thornton International, one of the world's leading international organizations of independently owned and managed accounting and consulting firms. These firms provide a comprehensive range of business advisory services from around 540 offices in over 110 countries worldwide. GENERAL MOTORS: Files Multibillion-Dollar Claim Against Delphi -------------------------------------------------------------- General Motors Corp. has filed a multibillion-dollar claim against Delphi Corp. on July 31, 2006, the last day for filing proofs of claim, Bloomberg News reports. Although details of the claim were not provided according to Bloomberg News, a search through the Delphi document site maintained by Kurtzman Carson Consultants LLC, Delphi's claims agent, revealed that GM filed multiple claims against various Delphi-entities. One particular claim filed by GM, Frigidaire, Fisher Body Company, and Hamilton General Motors Assembly against Delphi Automotive Systems LLC is listed at US$6 million plus. KCC's Delphi site is at http://www.delphidocket.com/delphi Bloomberg News relates that GM's lawyers had stated in April that the company would seek more than US$4 billion from Delphi. GM recently disclosed in a regulatory filing with the Securities and Exchange Commission that Delphi's various financial obligations to the company include a US$951,000,000 owed by Delphi relating to former GM employees who worked at Delphi and were later transferred back to GM as job openings became available to them. GM said it may receive only a portion of the US$951,000,000 receivable because the amount may be subject to compromise in Delphi's bankruptcy proceeding. GM said it seek to minimize this risk by protecting its right to set-off against the US$1,150,000,000 it owed to Delphi as of the Petition Date. In May 2006, GM attempted to exercise its set-off rights for US$67,000,000. In a notice to Delphi and the Official Committee of Unsecured Creditors appointed in Delphi's bankruptcy cases, GM alleged that catalytic converters Delphi supplied for certain 2001 and 2002 vehicle platforms did not conform to specifications. Delphi said in an SEC filing that GM's warranty claims are without merit. About Delphi Based in Troy, Mich., Delphi Corporation -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The Company's technology and products are present in more than 75 million vehicles on the road worldwide. The Company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed US$17,098,734,530 in total assets and US$22,166,280,476 in total debts. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. * * * As reported in the Troubled Company Reporter on April 7, 2006 Moody's Investors Service reviews for possible downgrade General Motors Acceptance Corporation's Ba1 long-term rating and Residential Capital Corporation's Baa3 long-term and Prime-3 short-term ratings will continue. As reported in the Troubled Company Reporter on April 5, 2006, Standard & Poor's Ratings Services held its ratings on General Motors Acceptance Corp. ('BB/B-1') and on GMAC's subsidiary, Residential Capital Corp. ('BBB-/A-3'), on CreditWatch with developing implications. GENERAL MOTORS: Revising Second Qtr. Financials Due to GMAC Sale ---------------------------------------------------------------- General Motors Corp. is revising its previously reported results for the second quarter of 2006 because of a change in the estimated tax provision relating to an expected loss on the pending sale of 51% interest in GMAC. Its previously reported adjusted earnings are not affected by this change. GM and GMAC are working with the purchasers of 51% of GMAC equity to try to avoid any delay in closing the GMAC transaction because of a recent moratorium by federal regulators on approval of certain bank transactions. On July 26, 2006, GM reported a net loss of US$3.2 billion, and adjusted earnings, excluding special items, of US$1.2 billion, a significant improvement from the year-ago adjusted loss of US$231 million. GM's reported net loss for the quarter has been increased by US$200 million, to US$3.4 billion. The increase in the reported net loss is attributable to the estimated tax provision related to the loss from the announced sale of 51% of GM's interest in GMAC to a consortium of investors. The previously estimated after-tax charge of US$490 million has been increased to US$690 million as the tax provision from the GMAC transaction was adjusted to reflect differences in book value and tax basis at several GMAC subsidiaries. The tax increase does not result in a current cash expense to either GM or GMAC. General Motors may adjust the estimated loss on sale from the GMAC transaction each quarter until closing due to potential changes in the other comprehensive income adjustment, such as mark-to-market valuation, as well as other factors. FDIC Moratorium Separately, on July 28, 2006, the Federal Deposit Insurance Corp. disclosed a six-month moratorium on the acceptance of, or final decisions on, notices filed under the Change in Bank Control Act with regard to industrial loan companies. In connection with the GMAC transaction, the consortium and its members have submitted such notices with respect to GMAC's ILC, GMAC Automotive Bank. GM and GMAC are currently evaluating the effect of the FDIC's action on these pending notices, but it appears that the timing of any approval of the notices is likely to be affected by the moratorium. Since FDIC approval of the Change in Bank Control Act notices with regard to GMAC Automotive Bank is a condition to closing the GMAC Transaction, GM and GMAC are now working with the consortium to consider ways to try to avoid delaying the targeted closing date until 2007. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. * * * As reported in the Troubled Company Reporter on April 7, 2006 Moody's Investors Service reviews for possible downgrade General Motors Acceptance Corporation's Ba1 long-term rating and Residential Capital Corporation's Baa3 long-term and Prime-3 short-term ratings will continue. As reported in the Troubled Company Reporter on April 5, 2006, Standard & Poor's Ratings Services held its ratings on General Motors Acceptance Corp. ('BB/B-1') and on GMAC's subsidiary, Residential Capital Corp. ('BBB-/A-3'), on CreditWatch with developing implications. GREYFRIARS INSURANCE: Creditors to Vote on Scheme on Oct. 27 ------------------------------------------------------------ Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. HEATH REID: Creditors Ratify Joint Liquidators' Appointment ----------------------------------------------------------- Creditors of Heat Reid & People Limited ratified the appointment of Richard A. B. Saville and Peter A. Blair of Begbies Traynor as Joint Liquidators on May 11. The company can be reached at: Heath Reid & People Limited Flat 26 Charleston House Peel Street Nottingham NG1 4GN United Kingdom Tel: 0115 947 0025 HEDDINGTON INSURANCE: Creditors to Vote on Scheme on Oct. 27 ------------------------------------------------------------ Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. HOTELOC PLC: Moody's Puts Low-B & Junk Debt Ratings Under Review ---------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade all classes of notes issued by HOTELoC plc. The Notes are backed by one loan secured by a portfolio of 28 hotel properties located throughout the United Kingdom. Each of the hotels is operated by Thistle Hotels plc. Moody's review has been triggered by the information provided in the July Performance Report and the Special Notice published by Morgan Stanley Mortgage Servicing Limited on July 31 and July 17 respectively. These reports commented on the financial performance of the hotels and provided an update on the sale of the assets. In May 2005 the loan matured and the borrower failed to make the required payment. Since then the borrower and the Special Servicer are working towards a sale of the assets. Moody's review will primarily focus on: -- the impact of the further deteriorating financial performance of the hotels; and -- the continued delays in the disposal of the assets, taking into account the remaining time to the legal final maturity of the Notes. Moody's rating action in detail (amounts reflecting current outstandings): -- Class A, GBP 104,858,057, Floating Rate Notes, due May 2007: Aaa on review for possible downgrade; -- Class B, GBP 100,000,000, Floating Rate Notes, due May 2007: Aa3 on review for possible downgrade; -- Class C, GBP 43,000,000, Floating Rate Notes, due May 2007: Baa2 on review for possible downgrade; -- Class D, GBP 88,000,000, Floating Rate Notes, due May 2007: B2 on review for possible downgrade; -- Class E1, GBP 35,000,000, Floating Rate Notes, due May 2007: Caa3 on review for possible downgrade; -- Class E2, GBP 8,000,000, Floating Rate Notes, due May 2007: Caa3 on review for possible downgrade; and -- Class E3, US$ 26,557,000, Floating Rate Notes, due May 2007: Caa3 on review for possible downgrade. J ROGERSON: Claims Filing Period Ends Oct. 10 --------------------------------------------- Creditors of J Rogerson (Cobridge) Limited have until Oct. 10 to send in full particulars of their debts or claims, and the names and addresses of the Solicitors (if any), to appointed Liquidator Michael Francis McCarthy at: Michael Francis McCarthy Walletts Insolvency Services 2-6 Adventure Place Hanley Stoke-on-Trent ST1 3AF United Kingdom The company can be reached at: J Rogerson(Cobridge) Limited 182 Leek New Road Stoke-on-Trent ST6 2LX United Kingdom Tel: 01782 525 809 LUEGO SPORTS: Hires Joints Liquidators from Elwell Watchorn ----------------------------------------------------------- Graham Stuart Wolloff and Richard John Elwell of Elwell Watchorn & Saxton LLP were appointed Joint Liquidators of Luego Sports Cars Limited on May 12. The company can be reached at: Luego Sports Cars Limited Longlands Farm Ugg Mere Ct Road Ramsey Huntingdon Cambridgeshire PE262RQ United Kingdom Tel: 01487 815 643 Fax: 01487 815 643 Web: http://www.luegosportscars.com/ M & R TRANSPORT: Names Joint Administrators from Menzies -------------------------------------------------------- Paul David Williams and Andrew Gordon Stoneman of Menzies Corporate Restructuring were appointed joint administrators of M & R Transport Limited (Company Number 01582836) on July 6. 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. M & R Transport Limited can be reached at: Manor Farm Whitwick Green Road Thurleigh Bedford MK44 2DE United Kingdom Tel: 01234 771 081 Fax: 01234 772 211 MASON & SONS: Asher Miller Leads Liquidation Procedure ------------------------------------------------------ Asher Miller of David Rubin & Partners was appointed Liquidator of Mason & Sons (Roofing With Care) Limited on May 10 after creditors decided to wind up the company. The company can be reached at: Mason & Sons (Roofing With Care) Limited 136 Godstone Road Whyteleafe Surrey CR3 0EB United Kingdom Fax: 020 8660 6185 MITSUI SUMITOMO: Creditors to Vote on Scheme on Oct. 27 ------------------------------------------------------- Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. OCEAN MARINE: Creditors to Vote on Scheme on Oct. 27 ---------------------------------------------------- Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake Insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. OFFICE & EDUCATIONAL: Nominates Liquidator from T.H. Associates --------------------------------------------------------------- Timothy Hargreaves of T.H. Associates was nominated Liquidator of Office & Educational Solutions Limited at an extraordinary general meeting of members on May 12. The company can be reached at: Office & Educational Solutions Limited 158 Liverpool Road North Liverpool L31 2HP United Kingdom Tel: 0151 531 1431 Fax: 0151 531 1432 ORANGE VISION: Creditors Confirm Liquidator's Appointment --------------------------------------------------------- Creditors of Orange Vision Limited confirmed the appointment of Roderick Graham Butcher of Butcher Woods as Liquidator on May 10. The company can be reached at: Orange Vision Limited Georgian Mews Bird Street Lichfield Staffordshire WS136PR United Kingdom Tel: 0845 458 7379 OSLO REINSURANCE: Creditors to Vote on Scheme on Oct. 27 -------------------------------------------------------- Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. PHOENIX LASER: Creditors' Meeting Slated for August 16 ------------------------------------------------------ Creditors of Phoenix Laser Press Limited (Company Number 02093030) will meet at 11:00 a.m. on Aug. 16 at: Connaught House Alexandra Terrace Guildford Surrey GU1 3DA United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 15 at: D. B. Coakley Joint Administrator BDO Stoy Hayward LLP Connaught House Alexandra Terrace Guildford Surrey GU1 3DA United Kingdom Tel: 01483 565666 Fax: 01483 531306 BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the UK member firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries. Its services include: audit and assurance, business restructuring, corporate finance, disputes and investigations, investment management, risk assurance services, tax services, and valuations. RANGOLD RESOURCES: Pretoria Court Grants Final Liquidation Order ---------------------------------------------------------------- The Pretoria High Court granted on Aug. 2 a final order of liquidation against MDM Ferroman (Pty) Limited, formerly the main contractor for the plant at Randgold Resources' new mine at Loulo in Mali. The application for the order had been brought by Randgold Resources' subsidiary, Societe des Mines de Loulo (Somilo). In December 2005, Somilo took back the Loulo project from MDM on the grounds that MDM had defaulted on the contract. The plant has since been substantially completed by a Randgold Resources team. Dr. Mark Bristow, chief executive of Randgold Resources and chairman of Somilo, welcomed the judgment and said the granting of the final liquidation order opened the way for the company to proceed with additional claims against MDM for amounts owed. He said as MDM's chief creditor, Somilo would request the liquidators to convene a full enquiry into MDM's financial affairs and the conduct of its directors. About Rangold Resources Headquartered in St. Helier, Chanel Islands, Randgold Resources Limited -- http://www.randgold.co.za/-- engages in the exploration, mining, and development of gold deposits in Sub- Saharan Africa. It owns interests in the Morila mine in Mali, as well as in the Somilo, the Yalea, and Loulo deposits. As of December 31, 2005, the company had proven and probable reserves of approximately 5.42 million ounces of gold. REFCO INC: Court Okays Stipulations on Lease-Decision Period ------------------------------------------------------------ The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York approves two stipulations extending the time for Albert Togut, the Chapter 7 trustee overseeing the liquidation of Refco, LLC's estate, to assume or reject unexpired nonresidential real property leases. Refco LLC leases a real property located at 1080 Indiantown Road, Unit 200, in Jupiter, Florida, under an Oct. 22, 2004, agreement with Cardi Corp. Pursuant to their stipulation, Cardi agrees to extend the Refco LLC Trustee's lease decision deadline until Sept. 30, 2006. If the Refco LLC Trustee is still undecided by that time, he will be deemed to have rejected the Lease effective September 30. Refco LLC also leases a real property located at 811 East Plaza Drive, in Carroll, Iowa, under a March 31, 2004, agreement with Vision Incorporated. Vision agrees to extend Mr. Togut's lease decision deadline until Aug. 31, 2006. If the Refco LLC Trustee won't assume the Lease on or before Aug. 31, the lease will be deemed rejected on that day. Mr. Togut says he will continue to timely perform all obligations under the Cardi and Vision Leases prior to the Rejection Date to the extent required under Section 365(d)(3) of the Bankruptcy Code, including, without limitation, payment of the full monthly rent for the Premises as required under the terms of the Leases through and including the Rejection Date. 12 Leases Assigned to Man Pursuant to separate notices filed with the Court, Mr. Togut informs Judge Drain that he will assume and assign 12 of Refco LLC's unexpired leases for non-residential real property to Man Financial, Inc. The leases relate to premises located at: -- 4800 Main Street, Kansas City, Missouri, Suite 231; -- 44 Union Blvd., Lakewood, Colorado; -- 400 South 4th Street, Minneapolis, Minnesota, Room 6; -- 400 South 4th Street, Minneapolis, Minnesota, Booth 300; -- 400 South 4th Street, Minneapolis, Minnesota, Booths 310 and 320; -- 400 South 4th Street, Minneapolis, Minnesota, Booth 315; -- 400 South 4th Street, Minneapolis, Minnesota, Room 414; -- One North End Avenue, New York, New York, Suite 1101; -- One North End Avenue, New York, New York, Suite 1207; -- One North End Avenue, New York, New York, Suite 1223; -- One North End Avenue, New York, New York, Suite 1225 and; -- One North End Avenue, New York, New York, Suite 1304 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 Bankruptcy News, Issue No. 35; Bankruptcy Creditors' Service, Inc., 215/945- 7000). REFCO INC: Debtors & Trustee Tap UHY Advisors as Tax Consultants ---------------------------------------------------------------- Refco Inc., its debtor-affiliates and Marc S. Kirschner, the court-appointed trustee for Refco Capital Markets, Ltd., seek authority from the U.S. Bankruptcy Court for the Southern District of New York to formally employ UHY Advisors NY, Inc., and its affiliated entities as their tax advisors, nunc pro tunc to Feb. 3, 2006. The Debtors and the RCM Trustee believe that UHY, being the 14th largest accounting firm of tax and business consultants in the United States with an extensive network of affiliated firms internationally, possesses expertise and knowledge to provide services. According to the Debtors, UHY will perform these necessary services: (a) preparation, review and filing of federal, state and local tax returns and any amended returns, corresponding schedules, related documents, including any extensions of time to file tax returns as well as complex technical analysis of various issues and formulation of recommendations to the Debtors and the RCM Trustee; (b) attendance and assistance with meetings and examinations with Internal Revenue Service, international or state and local tax authorities, the executive management team at Refco, Inc., the Chapter 11 and Chapter 7 trustees for RCM and Refco, LLC; (c) advice and assistance regarding transaction taxes, state and local sales and use taxes, and audits; (d) assembly and compilation of information necessary to prepare tax returns; (e) accounting, auditing and bookkeeping services; (f) review and assistance with any international tax-related issues and documents; (g) tax consulting and strategy services relating to several complex transactions; (h) consulting services relating to treatment of transactions for financial reporting purposes in accordance with GAAP; (i) assistance with organizing and cataloging the Debtors' books and records; and (j) performance of other tax-related services and accounting and audit-related services that are mutually agreed on by the Debtors, the Trustee and UHY. The Debtors assure the Bankruptcy Court that UHY's services will not result in unnecessary duplication of efforts in their bankruptcy cases. In accordance with an order authorizing the Debtors to employ and compensate professionals used in ordinary course, payments are subject to Court approval if they exceed $50,000 in any month, or exceed an aggregate of $500,000 in the Debtors' cases. The Debtors' payments to UHY have not exceeded these caps as of July 14, 2006. Under an engagement letter with the Debtors and the RCM Trustee, UHY agreed to fix its professional fee at $400,000, along with a $50,000 retainer, for services relating to preparation of certain partnership and corporation tax returns. Specific services that are encompassed in the fixed fee are: Fee Service --- ------- $150,000 New Refco Group Ltd. LLC Partnership Returns for short year January 1, 2005, to August 10, 2005; and $250,000 Refco Inc. Corporate Tax Returns for tax year starting August 11, 2005, to June 30, 2006. The fixed fee does not include any accounting, bookkeeping or other support services necessary to prepare the returns. For other services, UHY's standard hourly rates range from $150 for first year staff to $550 for managing directors. It is UHY's policy to adjust rates periodically to reflect economic and other conditions. Consistent with its policy with respect to its other clients, UHY will bill for other charges and disbursements incurred, including costs for long distance telephone usage, photocopying, travel, messengers, computer usage and postage. As of July 20, 2006, UHY has received $200,000 from the Debtors. UHY will then apply to the Court for allowance of compensation for professional services rendered and reimbursement of expenses incurred in the Debtors' cases. However, services subject to the fixed fee arrangement will be subject to the jurisdiction and approval of the Court and the U.S. Trustee under Section 328(a) of the Bankruptcy Code. Michael Greenwald, managing director of UHY, attests that the firm: (i) does not have any connection with the Debtors or any other party-in-interest; (ii) is a "disinterested person," as that term is defined in Section 101(14); and (iii) does not hold or represent any interest adverse to the Debtors' estates. 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 Bankruptcy News, Issue No. 35; Bankruptcy Creditors' Service, Inc., 215/945- 7000). SCOTTISH RE: Posts US$123.9 Million Second Quarter Net Loss --------------------------------------------------------------- Scottish Re Group Limited (NYSE:SCT) released its operating results for the second quarter ended June 30, 2006. The net loss available to ordinary shareholders for the three months ended June 30, 2006 was US$123.9 million, as compared with a net income available to ordinary shareholders of US$1.6 million for the prior year period. The net loss available to ordinary shareholders for the six months ended June 30, 2006 was US$112.3 million, as compared to net income available to ordinary shareholders of US$35.0 million, for the prior year period. The net operating loss available to ordinary shareholders was US$130.3 million, for the three months ended June 30, 2006 as compared to net operating earnings of US$19.7 million for the prior year period. The net operating loss available to ordinary shareholders was US$116.0 million for the six months ended June 30, 2006, as compared to net operating earnings of US$46.6 million for the prior year period. "The results for the quarter are a sharp departure from our original projections and estimates provided to our stakeholders" Paul Goldean, Interim Chief Executive Officer, said. "While we are very disappointed with the results, we believe that the core fundamentals of the business are sound. In fact, our mortality experience for the quarter was in line with expectations." The net operating loss for the second quarter was primarily attributable to the following factors: -- tax expense of US$89.0 million principally related to a US$112.4 million valuation allowance established on deferred tax assets. The valuation allowance resulted from revised statutory and tax projections of the Company combined with a reassessment of certain tax planning strategies; -- an approximate US$8.0 million reduction in premium accruals in North America resulting from a revision of estimates relating to prior periods; -- a deferred acquisition cost adjustment of approximately US$13.0 million due to higher than expected lapses on certain fixed annuity treaties; -- external retrocession and reserve adjustments of approximately US$21.0 million due to revisions in estimates resulting from improved data and systems which administer retrocession accounts; and -- severance and retirement and other non-recurring operating expenses of approximately US$9.0 million. "It is important, however, to keep the loss in perspective and to note that Scottish Re continues to have sufficient sources of liquidity, collateral and capital to meet the near-term needs of the business." said Dean Miller, Chief Financial Officer. "Of particular note is that all operating subsidiaries remain capitalized well in excess of their minimum required levels as prescribed by their respective Regulators." Total revenues for the three months ended June 30, 2006 increased to US$593.6 million from US$502.0 million for the prior year period, an increase of 18%. Excluding realized gains and losses and the change in value of the embedded derivatives, total revenues for the three months ended June 30, 2006 increased to US$597.6 million from US$523.2 million for the prior year period, an increase of 14%. Total revenues for the six months ended June 30, 2006, increased to US$1.17 billion from US$1.06 billion for the prior year period, an increase of 11%. Excluding realized gains and losses and the change in value of the embedded derivatives, total revenues for the six months ended June 30, 2006 increased to US$1,179.3 million from US$1,071.0 million for the prior year period, an increase of 10%. Premiums earned in the three months ended June 30, 2006 were negatively impacted by revisions to previous premium accrual estimates of approximately US$8 million (pre-tax) and adjustments related to retro premiums of approximately US$13 million (pre-tax). The investment portfolio, which increased by US$1.74 billion from the closing of the Ballantyne Re transaction in May, continued to perform well with an average yield of 5.5% compared to an average yield for the first quarter 2006 of 5.3%. Total benefits and expenses increased to US$626.0 million for the three months ended June 30, 2006 from US$508.8 million for the prior year period, an increase of 23%. Total benefits and expenses increased to US$1,197.8 million for the six months ended June 30, 2006 from US$1,032.0 million for the prior year period, an increase of 16%. Total benefits and expenses exceeded estimates due to refinements in our external retrocession reserves of approximately US$7 million (pre-tax). In addition, an adjustment of approximately US$13 million (pre- tax) to write-down deferred acquisition costs was made to reflect the Company's current best estimate of lapses on certain fixed annuity treaties. The Company's operating expense ratio (which is the ratio of operating expenses to total revenue excluding realized gains and losses and the change in value of embedded derivatives) for the six months ended June 30, 2006 was 6.0%, as compared to an operating expense ratio of 5.0% for the year ended December 31, 2005. Operating expenses for the quarter were negatively impacted by severance and retirement expenses of approximately US$5.0 million, expenses related to the International segment expansion and various professional fees that on a combined basis amounted to an additional US$3.0 million. For the three months ended June 30, 2006, the Company had a pre- tax loss of US$32.4 million before Minority Interest and recorded an initial tax benefit of US$23.4 million on those losses. In addition, the Company recorded a US$112.4 million valuation allowance resulting in a total tax charge of US$89.0 million for the period. The Company's book value per share was US$17.73 at June 30, 2006 as compared to US$21.48 per share at December 31, 2005. Fully converted book value per share was US$19.27 at June 30, 2006 as compared to US$21.17 at December 31, 2005. About Scottish Re Scottish Re Group Limited -- http://www.scottishre.com/-- offers reinsurance of life insurance, annuities and annuity-type products through its operating companies in Bermuda, Charlotte, North Carolina, Grand Cayman Dublin, Ireland, and Windsor, United Kingdom. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated these rating actions: Scottish Re Group Limited -- IDR downgraded to 'BBB-' from 'BBB'; -- 4.5% $115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; -- 5.875% $142 million hybrid capital units downgraded to 'BB' from 'BB+'; -- 7.25% $125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. All ratings remain on Rating Watch Negative. Moody's Investor Services downgraded to Ba2 from Baa2 the senior unsecured debt rating of Scottish Re Group Limited following the Company's profit warning. The rating agency also downgraded to Baa2 from A3 the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (U.S.), Inc. All debt and IFS ratings of Scottish Re remain on negative outlook. These ratings were downgraded and remain on negative outlook: Scottish Re Group Limited: -- Senior Unsecured, to Ba2 from Baa2; -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2; -- Subordinate Shelf, to (P)Ba3 from (P)Baa3; -- Junior subordinate Shelf, to (P)B1 from (P)Ba1; -- Preferred Stock, to B1 from Ba1; -- Preferred Shelf, to (P)B1 from (P)Ba1 A.M. Best likewise downgraded the ICR of Scottish Re to "bb+" from "bbb-". A.M. Best Co. also downgraded the financial strength rating to B++ from A- and the issuer credit ratings to "bbb+" from "a-" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). All FSR and debt ratings have been placed under review with negative implications. The FSR has been downgraded to B++ from A- and the ICRs have been downgraded to "bbb+" from "a-" and placed under review with negative implications for these subsidiaries of Scottish Re Group Limited: -- Scottish Annuity & Life Insurance Company (Cayman) Ltd; -- Scottish Re (U.S.), Inc.; -- Scottish Re Life Corporation; -- Scottish Re Limited; and -- Orkney Re, Inc. The ICR has been downgraded to "bb+" from "bbb-" and placed under review with negative implications for Scottish Re Group Limited. These debt ratings have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb+" from "bbb-" on US$115 million 4.5% senior unsecured convertible notes, due 2022; -- "bb-" from "bb" on US$143 million 5.875% of hybrid capital units, due 2007; and -- "bb-" from "bb" on US$125 million non-cumulative preferred shares; Stingray Pass-thru Trust -- "bbb+" from "a-" on US$325 million senior unsecured pass-thru certificates, due 2012 These indicative ratings for debt securities under the shelf registration have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb-" from "bb" on preferred stock; -- "bb" from "bb+" on subordinated debt; and -- "bb+" from "bbb-" on senior unsecured debt. Scottish Holdings Statutory Trust II and III -- "bb" from "bb+" on preferred securities. Standard & Poor's Ratings Services placed its 'BBB- counterparty credit rating on Scottish Re Group Ltd. on CreditWatch with negative implications. Standard & Poor's also said that it placed its various ratings on Scottish Re's operating subsidiaries and other related entities on CreditWatch negative. The ratings will remain on CreditWatch until the capital has been raised and the company's strategic alternatives have been clarified. As a result, the ultimate ratings will depend on the resulting capital, liquidity, and business position of the company. SCOTTISH RE: Names Nathan Gemmiti as General Counsel ---------------------------------------------------- Scottish Re Group Limited (NYSE:SCT) has appointed Nathan V. Gemmiti as General Counsel. Mr. Gemmiti joined Scottish Re in 2003 as Chief Legal Counsel for Scottish Re's North American operations. He was appointed earlier this year to Senior Vice President, Associate Counsel for Scottish Re Group Limited. "I have worked closely with Nate for over three years and believe his rare combination of technical skills, rounded legal experience and industry perspective leave him particularly well suited for the position," Paul Goldean, Chief Executive Officer, remarked. Prior to working for Scottish Re, Mr. Gemmiti served as in-house corporate counsel for Forum Financial Group, LLC, since renamed Citigroup Global Transaction Services. Mr. Gemmiti obtained a B.A. from Saint Anselm College in Manchester, New Hampshire and a J.D. from Boston College School of Law. About Scottish Re Scottish Re Group Limited -- http://www.scottishre.com/-- offers reinsurance of life insurance, annuities and annuity-type products through its operating companies in Bermuda, Charlotte, North Carolina, Grand Cayman Dublin, Ireland, and Windsor, United Kingdom. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated these rating actions: Scottish Re Group Limited -- IDR downgraded to 'BBB-' from 'BBB'; -- 4.5% $115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; -- 5.875% $142 million hybrid capital units downgraded to 'BB' from 'BB+'; -- 7.25% $125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. All ratings remain on Rating Watch Negative. Moody's Investor Services downgraded to Ba2 from Baa2 the senior unsecured debt rating of Scottish Re Group Limited following the Company's profit warning. The rating agency also downgraded to Baa2 from A3 the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (U.S.), Inc. All debt and IFS ratings of Scottish Re remain on negative outlook. These ratings were downgraded and remain on negative outlook: Scottish Re Group Limited: -- Senior Unsecured, to Ba2 from Baa2; -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2; -- Subordinate Shelf, to (P)Ba3 from (P)Baa3; -- Junior subordinate Shelf, to (P)B1 from (P)Ba1; -- Preferred Stock, to B1 from Ba1; -- Preferred Shelf, to (P)B1 from (P)Ba1 A.M. Best likewise downgraded the ICR of Scottish Re to "bb+" from "bbb-". A.M. Best Co. also downgraded the financial strength rating to B++ from A- and the issuer credit ratings to "bbb+" from "a-" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). All FSR and debt ratings have been placed under review with negative implications. The FSR has been downgraded to B++ from A- and the ICRs have been downgraded to "bbb+" from "a-" and placed under review with negative implications for these subsidiaries of Scottish Re Group Limited: -- Scottish Annuity & Life Insurance Company (Cayman) Ltd; -- Scottish Re (U.S.), Inc.; -- Scottish Re Life Corporation; -- Scottish Re Limited; and -- Orkney Re, Inc. The ICR has been downgraded to "bb+" from "bbb-" and placed under review with negative implications for Scottish Re Group Limited. These debt ratings have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb+" from "bbb-" on US$115 million 4.5% senior unsecured convertible notes, due 2022; -- "bb-" from "bb" on US$143 million 5.875% of hybrid capital units, due 2007; and -- "bb-" from "bb" on US$125 million non-cumulative preferred shares; Stingray Pass-thru Trust -- "bbb+" from "a-" on US$325 million senior unsecured pass-thru certificates, due 2012 These indicative ratings for debt securities under the shelf registration have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb-" from "bb" on preferred stock; -- "bb" from "bb+" on subordinated debt; and -- "bb+" from "bbb-" on senior unsecured debt. Scottish Holdings Statutory Trust II and III -- "bb" from "bb+" on preferred securities. Standard & Poor's Ratings Services placed its 'BBB- counterparty credit rating on Scottish Re Group Ltd. on CreditWatch with negative implications. Standard & Poor's also said that it placed its various ratings on Scottish Re's operating subsidiaries and other related entities on CreditWatch negative. The ratings will remain on CreditWatch until the capital has been raised and the company's strategic alternatives have been clarified. As a result, the ultimate ratings will depend on the resulting capital, liquidity, and business position of the company. SCOTTISH RE: Appoints Clifford Wagner to Head North American Ops ---------------------------------------------------------------- Scottish Re Group Limited (NYSE:SCT), a global life reinsurance specialist, discloses of the appointment Clifford R. Wagner as Chief Executive Officer of the Company's North American business. Mr. Wagner has been with Scottish Re since 2000 and has served as the Company's Executive Vice President and Chief Actuary. "We are pleased to have an individual with Cliff's thorough knowledge of the Company and broad experience in the life reinsurance industry assume leadership for our North American operation," said Paul Goldean, President and Chief Executive Officer of Scottish Re Group Limited. Mr. Wagner has more than 20 years insurance experience and prior to Scottish Re, worked for TransAmerica Reinsurance Company, Time Insurance and the Hartford Insurance Group. Mr. Wagner holds a B.S. degree in actuarial mathematics from the University of Wisconsin, Madison. He is a Fellow of the Society of Actuaries (FSA), a Member of the American Academy of Actuaries (MAAA) and also has earned Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC) and Fellow Life Management Institute (FLMI) designations. Mr. Wagner succeeds Seth Vance who served as Chief Executive Officer -- North America since his appointment in April, 2004. Mr. Vance recently resigned in lieu of reassignment within the Company. "Together with other important achievements, Seth was instrumental in leading the ING integration and combining the best of both organizations to set new standards of excellence in our industry. We wish him success in his future endeavors," Mr. Goldean remarked. About Scottish Re Scottish Re Group Limited -- http://www.scottishre.com/-- offers reinsurance of life insurance, annuities and annuity-type products through its operating companies in Bermuda, Charlotte, North Carolina, Grand Cayman Dublin, Ireland, and Windsor, United Kingdom. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated these rating actions: Scottish Re Group Limited -- IDR downgraded to 'BBB-' from 'BBB'; -- 4.5% $115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; -- 5.875% $142 million hybrid capital units downgraded to 'BB' from 'BB+'; -- 7.25% $125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. All ratings remain on Rating Watch Negative. Moody's Investor Services downgraded to Ba2 from Baa2 the senior unsecured debt rating of Scottish Re Group Limited following the Company's profit warning. The rating agency also downgraded to Baa2 from A3 the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (U.S.), Inc. All debt and IFS ratings of Scottish Re remain on negative outlook. These ratings were downgraded and remain on negative outlook: Scottish Re Group Limited: -- Senior Unsecured, to Ba2 from Baa2; -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2; -- Subordinate Shelf, to (P)Ba3 from (P)Baa3; -- Junior subordinate Shelf, to (P)B1 from (P)Ba1; -- Preferred Stock, to B1 from Ba1; -- Preferred Shelf, to (P)B1 from (P)Ba1 A.M. Best likewise downgraded the ICR of Scottish Re to "bb+" from "bbb-". A.M. Best Co. also downgraded the financial strength rating to B++ from A- and the issuer credit ratings to "bbb+" from "a-" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). All FSR and debt ratings have been placed under review with negative implications. The FSR has been downgraded to B++ from A- and the ICRs have been downgraded to "bbb+" from "a-" and placed under review with negative implications for these subsidiaries of Scottish Re Group Limited: -- Scottish Annuity & Life Insurance Company (Cayman) Ltd; -- Scottish Re (U.S.), Inc.; -- Scottish Re Life Corporation; -- Scottish Re Limited; and -- Orkney Re, Inc. The ICR has been downgraded to "bb+" from "bbb-" and placed under review with negative implications for Scottish Re Group Limited. These debt ratings have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb+" from "bbb-" on US$115 million 4.5% senior unsecured convertible notes, due 2022; -- "bb-" from "bb" on US$143 million 5.875% of hybrid capital units, due 2007; and -- "bb-" from "bb" on US$125 million non-cumulative preferred shares; Stingray Pass-thru Trust -- "bbb+" from "a-" on US$325 million senior unsecured pass-thru certificates, due 2012 These indicative ratings for debt securities under the shelf registration have been downgraded and placed under review with negative implications: Scottish Re Group Limited -- "bb-" from "bb" on preferred stock; -- "bb" from "bb+" on subordinated debt; and -- "bb+" from "bbb-" on senior unsecured debt. Scottish Holdings Statutory Trust II and III -- "bb" from "bb+" on preferred securities. Standard & Poor's Ratings Services placed its 'BBB- counterparty credit rating on Scottish Re Group Ltd. on CreditWatch with negative implications. Standard & Poor's also said that it placed its various ratings on Scottish Re's operating subsidiaries and other related entities on CreditWatch negative. The ratings will remain on CreditWatch until the capital has been raised and the company's strategic alternatives have been clarified. As a result, the ultimate ratings will depend on the resulting capital, liquidity, and business position of the company. SEA INSURANCE: Creditors to Vote on Scheme on Oct. 27 ----------------------------------------------------- Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake Insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. SELECT RESOURCING: Creditors' Meeting Slated for August 15 ---------------------------------------------------------- Creditors of Select Resourcing Limited (Company Number 05443532) will meet at 11:00 a.m. on Aug. 15 at: Twin Oaks Hotel Church Lane Palterton Chesterfield S44 6UZ United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 14 at: Andrew T. Clay Administrator Andrew Michaels & Co. Ltd. Concept House Brooke Street Cleckheaton Bradford BD19 3RY United Kingdom Tel: 0870 750 5411 Fax: 0870 750 5412 E-mail: info@andrew-michaels.com SOVEREIGN INSURANCE: Creditors to Vote on Scheme on Oct. 27 ----------------------------------------------------------- Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. SOVEREIGN MARINE: Creditors to Vote on Scheme on October 27 ----------------------------------------------------------- Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. SPHERE DRAKE: Creditors to Vote on Scheme on Oct. 27 ---------------------------------------------------- Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake Insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. THERMOTECH AIR: Creditors' Meeting Slated for August 11 ------------------------------------------------------- Creditors of Thermotech Air Conditioning Limited (Company Number 02934384) will meet at 10:30 a.m. on Aug. 11 at: Freemason Hall Bridge Street Manchester United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 10 at: P. A. Flint Administrator KPMG LLP St. James' Square Manchester Greater Manchester M2 6DS United Kingdom Tel: 0161 838 4000 Fax: 0161 838 4040 KPMG -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the UK providing audit, tax and advisory services. TOKIO MARINE: Creditors to Vote on Scheme on Oct. 27 ---------------------------------------------------- Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake Insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. WAUSAU INSURANCE: Creditors to Vote on Scheme on Oct. 27 -------------------------------------------------------- Creditors of Sovereign Marine & General Insurance Company Ltd. and its affiliates will consider the companies' schemes of arrangement under Section 425 of the Companies Act of 1985 during a creditors' meeting at 11 a.m. on Oct. 27. The meeting of creditors will be held at: Plaisterers Hall 1 London Wall London EC2Y 5JU United Kingdom Willis Faber (Underwriting Management) Limited ("WFUM"), Devonport Underwriting Agency Limited and Willis Faber & Dumas Limited formerly underwrote or managed insurance business on behalf of a number of insurance companies. The 16 companies that were part of the WFUM Pools, which are proposing the Pool Scheme, are: a) Sovereign Marine & General Insurance Company Ltd. b) Allianz Cornhill Insurance PLC c) Allianz Global Corporate & Specialty (France) d) Atlantic Mutual Insurance Co. (incorporated in New York) e) Greyfriars Insurance Co. Ltd. f) Heddington Insurance (UK) Ltd. g) Hibernian General Insurance Ltd. (incorporated in Ireland) h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd. i) Oslo Reinsurance Co. (UK) Ltd. j) Sovereign Insurance (UK) Ltd. k) Sphere Drake Insurance Ltd. l) The Ocean Marine Insurance Co. Ltd. m) The Sea Insurance Co. Ltd. n) Tokio Marine Europe Insurance Ltd. o) Wausau Insurance Co. (UK) Ltd. p) Continental Reinsurance Corp. International Ltd. (incorporated in Bermuda) The High Court of England and Wales has ordered that: -- Sovereign Marine & General Insurance Company Ltd.; -- Greyfriars Insurance Company Ltd.; and -- Sovereign Insurance (UK) Ltd., must each convene a single meeting of creditors to vote on their respective schemes: (a) for scheme creditors in relation to their scheme claims other than IBNR claims; and (b) for scheme creditors in relation to their IBNR claims. Creditors holding claims falling into both of these classes will be able to vote in each meeting either in person or via an authorized proxy. The proposed scheme of arrangement and other related documents may be obtained from http://wfumpools.com/or by written request to the proposed scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk The court has appointed Stephen Adamson to act as chairman of the meetings and has directed him to report the result of the meetings to the court. The Scheme of Arrangement, which is a compromise or arrangement between a company and its creditors, will become legally binding if: -- a majority in number representing not less than 75% in value of the creditors or class of creditors present and voting in person or by proxy, vote in favor of the scheme of arrangement at a meeting or meetings convened with the permission of the Court; and -- the Court subsequently sanctions the scheme of arrangement; and -- an office copy of the order of the Court to that effect is delivered for registration to the Registrar of Companies. If approved by the requisite majority of creditors, the scheme will be subject to the subsequent approval of the court. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. * Moody's Reports Global Speculative-Grade Corp. Default Rate ------------------------------------------------------------- Moody's global speculative-grade corporate default rate for the twelve months ending July edged down slightly to 1.7% from 1.8% in June, Moody's Investors Service reported. July marks the fifteenth consecutive month that the speculative- grade default rate has come in below 2.1%. In addition to low levels, default rates have also exhibited very low volatility. For nearly two years, Moody's issuer-based speculative-grade default rate has varied by no more than 30 basis points from month to month. Moody's reported that it expects a marginal and gradual rise in corporate defaults over the next twelve months. Moody's forecasting model predicts that its issuer-weighted global speculative-grade default rate will finish 2006 at 2.1%, rising to 2.7% by the end of July 2007. "Not only has the default rate shown very little change in recent months, but so have many of the factors that Moody's uses to forecast default rates, such as credit rating changes and the trend in industrial production," said David T. Hamilton, Moody's Director of Corporate Default Research. "Nevertheless, the pace of defaults is about as low as it can get. Credit conditions are unlikely to be as favorable going forward." Vesta Insurance Group was the only Moody's-rated corporate bond default in July, missing the interest payment on US$56 million of its 8-3/4% senior debentures. The single default in July brings the total number of Moody's- rated corporate bond issuers that have defaulted in the first seven months in 2006 to 10, with a total dollar volume of US$3.4 billion. For the comparable period in 2005, there were 16 defaulters affecting US$3.8 billion of bonds. The largest default so far in 2006 is Dana Corporation, which filed for bankruptcy in March with US$1.6 billion of public bonds affected. Nine of the ten rated defaulters for 2006 have been based in the U.S. The only non-U.S. default thus far has been Global Automotive Logistics S.A.S., which is based in France. Moody's dollar volume based global speculative-grade default rate also fell slightly in July, to 3.9% from 4.0% in June. Hamilton noted that although it is still below its 5.5% historical annual average, the current global dollar volume weighted default rate is more than double the level of 1.9% of a year ago. At the beginning of 2006, the global dollar weighted default rate was 3.8%. Moody's further reported that corporate default rates remain low in major corporate bond markets. In Europe, Moody's issuer-weighted speculative-grade default rate remained unchanged at 0.5% from June to July. The current European default rate is down from 1.1% at the beginning of the 2006 and from 1.6% in July 2005. Measured on a dollar volume basis, the European default rate also remained unchanged from June to July at 0.1%. Europe's dollar volume weighted default rate is down considerably from the 1.4% level of a year ago. Among U.S.-based companies, Moody's issuer-weighted speculative- grade default rate edged down to 2.3% in July, from 2.4% in June. July's U.S. default rate is unchanged from a year ago, but slightly below the year's opening level of 2.4%. Measured on a dollar volume basis, the U.S. default rate fell to 4.5% in July, down incrementally from its 4.6% June level. July's U.S. dollar-weighted default rate was significantly higher than the 1.9% level it was a year ago. There were no Moody's-rated leveraged loan defaults in July. Year to date, five Moody's-rated corporate loan issuers have defaulted on a total of US$1.4 billion of loans. During the same period in 2005, there were also five loan defaults, but on more than twice the amount of total debt at US$2.9 billion. This year, the only loan default outside the U.S. has been France-based Global Automotive Logistics S.A.S. For the twelve months ending in July, Moody's U.S. leveraged loan default rate arrived at 1.3%, down from the 1.5% level recorded at the end of June. ********* 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. 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