/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060810.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, August 10, 2006, Vol. 7, No. 158 Headlines A U S T R I A AQUADOMUS WELLNESS: Claims Registration Period Ends August 29 CHRISTIAN BOS: Claims Registration Period Ends August 24 GRIMM MIRJAM: Creditors' Meeting Slated for August 23 GRUBER STEUERUNGSTECHNIK: Claims Filing Period Ends Aug. 14 INTERPROJECT LIMITED: Creditors' Meeting Slated for August 22 PS-TEC: Linz Court Orders Closing of Business F R A N C E ALCATEL SA: New Entity Shares Can Trade in French Exchange ALSTOM SA: Returns to Paris Stock Echange Index CAC 40 AOL LLC: Eyes 5,000 Job Cuts Over Next Six Months, Report Says BANQUE PALATINE: Fitch Affirms Individual C Rating IXIS CORPORATE: Fitch Maintains Individual Rating at C G E O R G I A METROMEDIA INTERNATIONAL: Delays Filing of First Quarter Results G E R M A N Y ALERIS INT'L: Merging with Texas Pacific in US$3.3-Bln Deal ASV MANAGEMENT: Claims Registration Ends August 25 CROTTENDORFER METALLWARENFABRIK: Claims Bar Date Ends Sept. 1 CUL-CLEMENS: Claims Registration Ends September 4 DYCKERHOFF AG: S&P Revises Rating Outlook to Positive FALK BUEROGEBAUDE: Claims Registration Ends September 4 FUNK-MIETWAGEN: Claims Registration Ends August 30 GP GEWERBEBAU: Claims Registration Ends August 30 HEIDELBERGCEMENT AG: Earns EUR415-Mln Profit in 2006 First Half J. FRITZ: Claims Registration Ends September 1 KARSTADTQUELLE AG: Eyes Zero Debt at 2006 Year-End KUEHNE IMMOBILIEN: Claims Registration Ends August 30 KUNSTSTOFF-FERTIGUNGSTECHNIK: Claims Registration Ends Sept. 1 VEREINS BERGAKADEMISCHER: Claims Registration Ends September 1 G R E E C E EMPORIKI BANK: Owners Tender 71.97% Stake to Credit Agricole I R E L A N D SANDISK CORP: Acquiring msystems in All-Stock Deal SANDISK CORP: Posts US$96 Million Net Income in Second Quarter I T A L Y PARMALAT SPA: Popolare Italiana Settles Suit for EUR69 Million POPOLARE ITALIANA: Settles Parmalat Suits for US$69 Million K A Z A K H S T A N AKSUSKY HLEBOZAVOD: Creditors Must File Claims by Sept. 15 FERRUM INC: Creditors Must File Claims by Sept. 15 JAKSY-2003: Proof of Claim Deadline Slated for Sept. 15 KARABURA-2030: Proof of Claim Deadline Slated for Sept. 15 PRODSTAL: Claims Registration Ends Sept. 15 RIGEL 2003: Claims Registration Ends Sept. 15 TAISOYGAN-AGRO: Creditors' Claims Due Sept. 15 YE-OIL: Creditors' Claims Due Sept. 15 * Fitch Lifts Long-Term Rating of Almaty City to BB+ K Y R G Y Z S T A N KEREMET: Proof of Claim Deadline Slated for Sept. 18 L U X E M B O U R G NORTEL NETWORKS: Second Qtr. Revenues Up 5% to US$2.74 Billion YUKOS OIL: Russian Prosecutors Begin Bankruptcy Fraud Probe R U S S I A AGRO-INVEST: Court Names S. Lebed as Insolvency Manager AGRO-SERVICE: Court Names N. Mikhnev as Insolvency Manager ALROSA CO: Improved Finances Spur S&P to Raise Rating to BB- DALNEVOSTOCHNAYA BUILDING: A. Mikhaylovskiy to Manage Assets EURO-TOBACCO: Court Names A. Spirkin as Insolvency Manager KHLEBNIKOVSKOYE: Court Starts Bankruptcy Supervision KOMSOMOLSKIY WOODWORKING 2: V. Shvedko to Manage Assets LAZOVSKIY SPIRTOVIK: Court Starts Bankruptcy Supervision PERVOMAYSKIY WOOD-PROM-KHOZ: I. Gorn to Manage Assets SANITAR: Kursk Court Starts Bankruptcy Supervision SIBERIA: Krasnoyarsk Court Starts Bankruptcy Supervision SUZEMSKIY CHEESE: V. Golovchenko to Manage Insolvency Assets SYRSKOYE-SEL-KHOZ-KHIMIYA: Court Starts Bankruptcy Supervision VERKHNE-KHAVA-AGRO-PROM-KHIMIYA: N. Vysotskaya to Manage Assets YUKOS OIL: Russian Prosecutors Begin Bankruptcy Fraud Probe ZOLOTOE RUNO: Amur Court Starts Bankruptcy Supervision U K R A I N E BAHTINOK: Court Names District Tax Agency as Liquidator DNIPROTEHPROMBIZNES: Court Names Igor Morozov as Liquidator FORTUNA: Court Names Bankruptcy Agency to Liquidate Assets HERSON' MEAT: Herson Court Names S. Milovskij as Liquidator INFARMA-WEST: Kyiv Court Names I. Gusar as Insolvency Manager KARAT: Lugansk Court Starts Bankruptcy Supervision MAGIRUS: Court Names District Tax Agency to Liquidate Assets METROMEDIA INTERNATIONAL: Delays Filing of First Quarter Results PODILSKIJ KRAJ: Court Names Bankruptcy Agency as Liquidator PUBLIC TRANSPORT: Lviv Court Starts Bankruptcy Supervision REKA: Kyiv Court Names District Tax Agency as Liquidator STRIJ' NOODLE: Court Names Yaroslav Onushkanich as Liquidator TRANS-AH: Court Names Igor Morozov as Insolvency Manager UKRMETSOYUZ: Court Names O. Tomashevskij as Liquidator UNIVERS: Court Names Olga Shikilo as Insolvency Manager UROZHAJ: Court Names Oleksij Gula as Insolvency Manager VOSHOD: Sumi Court Names Grigorij Ponomarenko as Liquidator ZAPORIZHYA' BREAD: Court Starts Bankruptcy Supervision U N I T E D K I N G D O M 4 FRONT: Appoints J. N. Bleazard as Liquidator ABSOLUTE RECRUITMENT: Hires Liquidator from Begbies Traynor ACE ENGINEERING: Brings In Baker Tilly as Joint Administrators ALTERNA LIMITED: Taps M. S. E. Solomons to Liquidate Assets ANDREWS SKIPS: Louise Donna Baxter Leads Liquidation Procedure AOL LLC: Eyes 5,000 Job Cuts Over Next Six Months, Report Says BLACKFIELD PROPERTY: Names Arif Anwar Liquidator BOSWORTH TOOLS: Brings In Liquidator from Bottomley & Co. BREMADENT LIMITED: Creditors Confirm Liquidator's Appointment BURALL FLORAPRINT: Appoints Grant Thornton as Administrators CARDINAL TAP: Names Gagen Dulari Sharma as Administrator CORRIE ENTERPRISE: Creditors Agree to Voluntary Liquidation D.C.S. COMPUTERS: Joint Liquidators Take Over Operations D.E.S. ENVIRONMENTAL: Nominates Liquidator from Marks Bloom INCO LTD: Teck Cominco Won't Negotiate on Merger Plans Anymore GENEMEDIX PLC: Enters Into Exclusive Restructuring Arrangement MILLFIELD SURELINE: Brings In PwC as Joint Administrators N H NORTH: Names Joint Administrators from Deloitte & Touche PARK LANE: Appoints Joint Administrators from Parkin S Booth RSW LIMITED: Taps Leonard Curtis to Administer Assets SDL RECRUITMENT: Begins Liquidation Procedure SEI REALISATIONS: Names P. R. Boyle as Administrator SELECT ADVANCE: Appoints Joint Liquidators to Wind Up Business SKYEPHARMA PLC: PricewaterhouseCoopers Raise Going Concern Doubt TRANS-AM CONTRACTING: Taps B & C Associates as Administrators W GREEN: Taps Mark S. Goldstein to Administer Assets WH SMITH: Fitch Withdraws Issuer Default Rating at BB- * Moody Reports Increased EMEA CMBS Issuance in the First Half ********* ============= A U S T R I A ============= AQUADOMUS WELLNESS: Claims Registration Period Ends August 29 ------------------------------------------------------------- Creditors owed money by LLC Aquadomus Wellness (FN 251877h) have until Aug. 29 to file written proofs of claims to court- appointed property manager German Storch at: Mag. German Storch Buergerstrasse 62 4020 Linz, Austria Tel: 0732/661861 Fax: 0732/661861-19 E-mail: ra-storch@nextra.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Sept. 12 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Linz Hall 522 5th Floor Linz, Austria Headquartered in Ansfelden, Austria the Debtor declared bankruptcy on June 22 (Bankr. Case No. 38 S 30/06z). CHRISTIAN BOS: Claims Registration Period Ends August 24 -------------------------------------------------------- Creditors owed money by LLC Christian Bos (FN 236389g) have until Aug. 24 to file written proofs of claims to court- appointed property manager Horst Winkelmayr at: Mag. Horst Winkelmayr Porcelain Lane 22A/7 1090 Vienna, Austria Tel: 01/532 47 77 Fax: 01/532 47 77 50 E-mail: rae@kniwi.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Sept. 7 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Korneuburg Hall 2 Room 104 1st Floor Korneuburg, Austria Headquartered in Poysdorf, Austria the Debtor declared bankruptcy on June 22 (Bankr. Case No. 32 S 7/06a). GRIMM MIRJAM: Creditors' Meeting Slated for August 23 ----------------------------------------------------- Creditors owed money by LLC Grimm Mirjam (FN 86720f) are encouraged to attend the first creditors' meeting at 9:15 a.m. on Aug.23 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 22 (Bankr. Case 4 S 107/06x). Kurt Bernegger serves as the court-appointed property manager of the bankrupt estate. Maria Kainer represents Dr. Bernegger in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Kurt Bernegger c/o Mag. Maria Kainer Jacquingasse 21 1030 Vienna, Austria Tel: 799 15 80/0 Fax: 796 59 14 E-mail: kanzlei@bernegger-wt.com GRUBER STEUERUNGSTECHNIK: Claims Filing Period Ends Aug. 14 ----------------------------------------------------------- Creditors owed money by LLC Gruber Steuerungstechnik (FN 185719t) have until Aug. 14 to file written proofs of claims to court-appointed property manager Rudolf Franzmayr at: Dr Rudolf Franzmayr Stadtplatz 32 4840 Voecklabruck, Austria Tel: 07672/23432 Fax: 07672/23432-4 E-mail: dr.franzmayr@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on Aug. 24 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Wels Hall 101 1st Floor Maria Theresia Road 12 Wels, Austria Headquartered in Regau, Austria the Debtor declared bankruptcy on June 22 (Bankr. Case No. 20 S 79/06b). INTERPROJECT LIMITED: Creditors' Meeting Slated for August 22 ------------------------------------------------------------- Creditors owed money by Interproject Limited (FN 262663w) are encouraged to attend the first creditors' meeting at 10:40 a.m. on Aug. 22 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of St. Poelten Room 216 2nd Floor (Old Building) St. Poelten, Austria Headquartered in Reinsberg, Austria, the Debtor declared bankruptcy on June 22 (Bankr. Case 14 S 97/06i). Christian Kies serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Christian Kies Rathausplatz 8 3270 Scheibbs, Austria Tel: 07482/44222 Fax: 07482/44222-4 E-mail: christian.kies@aon.at PS-TEC: Linz Court Orders Closing of Business --------------------------------------------- The Land Court of Linz entered an order on June 21 closing the business of Trade LLC PS-TEC Technologie (FN 89728d). Court- appointed property manager Gerhard Wagner determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Gerhard Wagner Spittelwiese 6 4020 Linz, Austria Tel: 0732/775800 Fax: 0732/775800-15 E-mail: office@rechtsanwalt-wagner.com Headquartered in Linz, Austria, the Debtor declared bankruptcy on June 12 (Bankr. Case No. 12 S 52/06v). =========== F R A N C E =========== ALCATEL SA: New Entity Shares Can Trade in French Exchange ---------------------------------------------------------- Lucent Technologies and Alcatel SA disclosed that the French securities regulator, the Autorite Des Marches Financiers, granted approval for Alcatel's French admission to trading prospectus relating to its new ordinary shares to be issued relative to the proposed merger transaction. The Note D'Operation, along with Alcatel's annual report dated March 31, 2006, constitute the prospectus regarding the issuance of new Alcatel ordinary shares and is available on the Web sites of Alcatel and the AMF http://www.amf-france.org/ The Company also disclosed that on Aug. 4, 2006, the U.S. Securities and Exchange Commission declared effective the registration of Alcatel's ordinary shares with the SEC. The registration statement also included the Company's proxy statement for its special meeting of shareowners to be held on Sept. 7, 2006, at which shareowners will vote on a proposal to approve and adopt the merger agreement and the proposed merger transaction. The Company's shareowners with questions regarding the special meeting of shareowners or the voting of their shares may contact MacKenzie Partners, Inc., at 800-322-2885 or Morrow & Co., Inc., at 800-573-4370. About Lucent Technologies Headquartered in Murray Hill, New Jersey, Lucent Technologies (NYSE: LU) -- http://www.lucent.com/-- designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. 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. ALSTOM SA: Returns to Paris Stock Echange Index CAC 40 ------------------------------------------------------ Alstom SA replaced Thales SA as one of the top French companies in the CAC at the opening of the Paris Stock Exchange Index on July 31. As announced in June, the reintegration into the Paris Stock Exchange's index, which ALSTOM left in April 2002 during its crisis period, is a further sign of the success of ALSTOM's recovery plan, and has been acknowledged by the Financial Community and the press. The companies elected to be part of the CAC40 index are among the 100 top companies of the Euronext Paris. The selection is made by the Index Expert Committee and is based on the free float market capitalization and liquidity of the company. The capitalization of the CAC40 companies range from Total's EUR112 billion to Thomson's EUR3.5 billion. ALSTOM has a total market capitalization of close to EUR9.3 billion, with Bouygues holding 23% of the capital. About Alstom Headquartered in Paris, France, Alstom S.A. -- http://www.alstom.com/-- is a leading maker of power-generation systems and constructs power plants, rail equipment, luxury passenger ships, naval vessels, and natural gas tankers. It also produces electrical drives, motors, and generators. The group generates EUR13 billion in annual revenues and employs more than 70,000 people worldwide. For the fiscal year ended March 31, 2006, Alstom posted EUR178 million in net profit on EUR13.4 billion in net sales, compared to EUR628 million in net loss on EUR12.9 billion in net sales a year ago. As of March 31, 2006, Alstom had EUR18.408 billion in total assets, EUR16.568 billion in total liabilities and EUR1.84 billion in total equity. As of March 31, 2006, Alstom had EUR8.785 billion in current assets and EUR11.802 billion in current liabilities AOL LLC: Eyes 5,000 Job Cuts Over Next Six Months, Report Says -------------------------------------------------------------- AOL LLC is expected to reduce more than a quarter of its current 19,000 work force as it struggles to transform itself into a major broadband provider, Antony Savvas writes for ComputerWeekly.com. According to the report, around 5,000 employees will be affected by the planned job cuts that will hit AOL operations worldwide, including a large number of its European operations, over the next six months. The redundancies were announced during a Web cast last week but did not specify what positions would be eliminated, Megan Kuhn of Leesburg Today relates. Mr. Savvas says AOL is expected to sell its European internet access business as it concentrates more on offering free services to help generate greater advertising revenues to its web portal business. According to Ms. Kuhn, AOL and France- based Neuf Cegetel are negotiating the sale of AOL's French Access Services, which includes its narrowband and broadband Internet Access operations and a customer service in Marseille. The transaction is expected to close by the end of the year, the paper relates. Headquartered in Dulles, Virginia, AOL LLC (fka America Online, Inc.) is an online service provider, bulletin board system, and media company operated by Time Warner. In June, the company launched portals in the UK, France and Germany. AOL also offers access and Web services in Canada. In 2000, AOL and Time Warner announced plans to merge, in a deal approved by the Federal Trade Commission on Jan. 11, 2001. Since its merger with Time Warner, the value of AOL has dropped from its US$200 billion high and it has seen similar losses among its subscription rate. BANQUE PALATINE: Fitch Affirms Individual C Rating -------------------------------------------------- Fitch Ratings affirmed the Issuer Default Ratings and Short-term ratings on Groupe Caisse d'Epargne, its central body Caisse Nationale des Caisses d'Epargne et de Prevoyance and its affiliate, Banque Palatine respectively at AA and F1+. The Outlook for GCE's, CNCE's and BP's IDRs are Stable. IXIS Corporate & Investment Bank is an affiliate of GCE. Its IDR is maintained on Rating Watch Negative, pending the 'rapprochement' of GCE's and Groupe Banque Populaire's wholesale and investment banking interests, expected to be in place by end-2006. The Support ratings on GCE, CNCE, ICIB and BP are affirmed at 1, while the Individual ratings are affirmed, respectively at B for GCE and C for ICIB and BP. No Individual rating is assigned to CNCE. GCE is a leading French cooperative banking group, controlling 17% of savings deposits, around 9% of sight deposits and some 18% of housing loans. The group's ratings reflect a low risk profile, enviable retail franchise, strong capital base and steady development, propelled by acquisitions and significant internal reorganization. Controlled (97.55%) by CNCE, ICIB is the group's wholesale and investment-banking subsidiary while BP (60%) specializes in the SME sector. According to French Banking Law, CNCE is responsible for guaranteeing the liquidity and solvency of every one of the 28 regional retail banks. A legally binding agreement is in place ensuring that the equity of each CEP is available to support all 'affiliated' parties. As such, GCE's 'affiliates', which are strategic entities including ICIB and BP, benefit from the IDR and Short-term ratings of GCE. A thorough reorganization of the corporate and investment banking activities undertaken by ICIB and Natexis Banques Populaires, which is part of GBP, is underway. The intention is to create a new bank, NatIxis, to be controlled equally (34%) by GCE and GBP. The plan is that ICIB will become a subsidiary of NatIxis. The RWN reflects that ICIB's affiliation status is likely to be affected by the reorganization. GCE has historical links with the public sector through Caisse des Depots et Consignations, which retains a 35% shareholding in CNCE. These links are being disbanded and CDC will sell its investment by latest September 2008. The proposed restructuring of ICIB is considered positive for GCE and the expected exit of CDC as a shareholder is not considered detrimental to GCE's IDR since the latter is driven by the group's stand-alone credit fundamentals. The EC is investigating GCE's and La Banque Postale's exclusive rights over the distribution of the 'Livret A' savings accounts and Fitch views there is a strong possibility that, in time, these privileges will be lost. This is not considered a threat to GCE's IDR as commissions earned from this business represent just 7% of operating income. Scope for upside potential in the group's IDR in the short-term is minimal since costly restructurings continue to have an impact on management time. IXIS CORPORATE: Fitch Maintains Individual Rating at C ------------------------------------------------------ Fitch Ratings affirmed the Issuer Default Ratings and Short-term ratings on Groupe Caisse d'Epargne, its central body Caisse Nationale des Caisses d'Epargne et de Prevoyance and its affiliate, Banque Palatine respectively at AA and F1+. The Outlook for GCE's, CNCE's and BP's IDRs are Stable. IXIS Corporate & Investment Bank is an affiliate of GCE. Its IDR is maintained on Rating Watch Negative, pending the 'rapprochement' of GCE's and Groupe Banque Populaire's wholesale and investment banking interests, expected to be in place by end-2006. The Support ratings on GCE, CNCE, ICIB and BP are affirmed at 1, while the Individual ratings are affirmed, respectively at B for GCE and C for ICIB and BP. No Individual rating is assigned to CNCE. GCE is a leading French cooperative banking group, controlling 17% of savings deposits, around 9% of sight deposits and some 18% of housing loans. The group's ratings reflect a low risk profile, enviable retail franchise, strong capital base and steady development, propelled by acquisitions and significant internal reorganization. Controlled (97.55%) by CNCE, ICIB is the group's wholesale and investment-banking subsidiary while BP (60%) specializes in the SME sector. According to French Banking Law, CNCE is responsible for guaranteeing the liquidity and solvency of every one of the 28 regional retail banks. A legally binding agreement is in place ensuring that the equity of each CEP is available to support all 'affiliated' parties. As such, GCE's 'affiliates', which are strategic entities including ICIB and BP, benefit from the IDR and Short-term ratings of GCE. A thorough reorganization of the corporate and investment banking activities undertaken by ICIB and Natexis Banques Populaires, which is part of GBP, is uderway. The intention is to create a new bank, NatIxis, to be controlled equally (34%) by GCE and GBP. The plan is that ICIB will become a subsidiary of NatIxis. The RWN reflects that ICIB's affiliation status is likely to be affected by the reorganization. GCE has historical links with the public sector through Caisse des Depots et Consignations, which retains a 35% shareholding in CNCE. These links are being disbanded and CDC will sell its investment by latest September 2008. The proposed restructuring of ICIB is considered positive for GCE and the expected exit of CDC as a shareholder is not considered detrimental to GCE's IDR since the latter is driven by the group's stand-alone credit fundamentals. The EC is investigating GCE's and La Banque Postale's exclusive rights over the distribution of the 'Livret A' savings accounts and Fitch views there is a strong possibility that, in time, these privileges will be lost. This is not considered a threat to GCE's IDR as commissions earned from this business represent just 7% of operating income. Scope for upside potential in the group's IDR in the short-term is minimal since costly restructurings continue to have an impact on management time. ============= G E O R G I A ============= METROMEDIA INTERNATIONAL: Delays Filing of First Quarter Results ---------------------------------------------------------------- Metromedia International Group, Inc. (trading as: PINK SHEETS: MTRM, Common Stock and MTRMP, Preferred Stock), the owner of interests in communications businesses in the country of Georgia, is unable to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2006. The filing of the Company's: -- Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2004; -- its Quarterly Report on Form 10-Q for the fiscal quarters ended March 31, June 30, and Sept. 30, 2005; -- its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2005; -- its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2006, -- along with the Company's completion of its work effort for compliance with Section 404, "Management Assessment of Internal Controls" of the Sarbanes-Oxley Act of 2002 with respect to the filing of its 2005 Form 10-K, are a prerequisite for the filing of the 2006 second quarter Form 10-Q. At present, the Company cannot predict with confidence when it will file either the 2004 Form 10-K, the 2005 Quarterly Reports, the 2005 Form 10-K, or the 2006 Q1 Form 10-Q and thus its 2006 Q2 Form 10-Q. About Metromedia International Headquartered in Charlotte, North Carolina, Metromedia International Group -- http://www.metromedia-group.com/-- through its subsidiary, Metromedia International Telecommunications, owns interests in telecom and cable TV operations in Russia, Georgia, and elsewhere in Eastern Europe. Since the first quarter of 2003, the Company has focused its principal attentions on the continued development of its core telephony businesses, and has substantially completed a program of gradual divestiture of its non-core cable television and radio broadcast businesses. The Company's core businesses includes Magticom, Ltd., the leading mobile telephony operator in Tbilisi, Georgia, and Telecom Georgia, a well-positioned Georgian long distance telephony operator. * * * Moody's Investors Service has placed Metromedia's subordinated debt rating at B3 and junior subordinated debt rating at B2. ============= G E R M A N Y ============= ALERIS INT'L: Merging with Texas Pacific in US$3.3-Bln Deal ----------------------------------------------------------- Aleris International Inc. entered into a definitive merger agreement under which Texas Pacific Group, wherein Texas Pacific will acquire all of the outstanding stock of Aleris International for approximately US$1.7 billion plus the assumption of or repayment of approximately US$1.6 billion of debt. Under the terms of the agreement, Aleris stockholders will receive US$52.50 in cash for each share of Aleris common stock they hold, representing a premium of 27% to Aleris's closing share price on Aug. 7, 2006. The board of directors of Aleris has unanimously approved the merger agreement and has resolved to recommend that Aleris's stockholders adopt the agreement. Steven J. Demetriou, Aleris's Chairman and Chief Executive Officer, said, "After careful analysis, our board of directors has unanimously endorsed this transaction as being in the best interests of our stockholders." Pending the receipt of stockholder approval and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as well as satisfaction of other customary closing conditions, including regulatory approvals, the transaction is expected to be completed early in 2007. The transaction will be financed through a combination of equity contributed by TPG and debt financing that has been committed by Deutsche Bank. The Company's global headquarters will remain in Beachwood, Ohio. Citigroup Global Markets Inc. is acting as financial advisor to Aleris, while Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal advisor to the Company. Deutsche Bank is acting as financial advisor to TPG and Cleary Gottlieb Steen & Hamilton LLP is acting as their legal advisor. About Texas Pacific Group Texas Pacific Group -- http://www.texaspacificgroup.com/-- is a private investment partnership that was founded in 1992 and currently has more than US$30 billion of assets under management. With offices in San Francisco, London, and Fort Worth, TPG has extensive experience with public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. TPG seeks to invest in world-class franchises across a range of industries, including branded consumer franchises (Bally, Del Monte Foods, Ducati), retail (Debenhams, J. Crew, Neiman Marcus, Petco), airlines (America West, Continental), media and communications (Findexa, MGM TIM Hellas), industrials (Altivity Packaging, British Vita, Grohe, Kraton Polymers, Texas Genco), technology (Lenovo, MEMC, Seagate), financial services (Endurance Specialty Holdings, Fidelity National Information Services, Linsco/Private Ledger) and healthcare (IASIS Healthcare, Oxford Health Plans, Quintiles Transnational), among others. 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. ASV MANAGEMENT: Claims Registration Ends August 25 -------------------------------------------------- Creditors of ASV Management Company LTD & Co. Systemmontagen KG have until Aug. 25 to register their claims with court-appointed provisional administrator Hartwig Albers. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on Oct. 11 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Potsdam Hall 301 3rd Floor Branch Linden Road 6 14467 Potsdam, 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 Potsdam opened bankruptcy proceedings against ASV Management Company LTD & Co. Systemmontagen KG on July 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ASV Management Company LTD & Co. Systemmontagen KG Attn: Dr. Eberhard Boese, Manager Jahnstrasse 8 14712 Rathenow, Germany The administrator can be contacted at: Hartwig Albers Luetzowstrasse 100 10785 Berlin, Germany CROTTENDORFER METALLWARENFABRIK: Claims Bar Date Ends Sept. 1 ------------------------------------------------------------- Creditors of Crottendorfer Metallwarenfabrik GmbH have until Sept. 1 to register their claims with court-appointed provisional administrator Dirk Herzig. 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 Chemnitz Hall 28 Law Courts Prince Road 21 Chemnitz, 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 Chemnitz opened bankruptcy proceedings against Crottendorfer Metallwarenfabrik GmbH on June 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Crottendorfer Metallwarenfabrik GmbH Attn: Joachim Georgi, Manager Oberwiesenthaler Road 10b 09474 Crottendorf, Germany The administrator can be contacted at: Dr. Dirk Herzig Promenadenstr. 3 09111 Chemnitz, Germany Web: http://www.schubra.de/ CUL-CLEMENS: Claims Registration Ends September 4 ------------------------------------------------- Creditors of CUL-Clemens Umweltlogistik GmbH have until Sept. 4 to register their claims with court-appointed provisional administrator Dirk Obermueller. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Sept. 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 Bonn Area Room W 1.25 1 Stick William Route 21 53111 Bonn, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on Nov. 3 at the same venue. The District Court of Bonn opened bankruptcy proceedings against CUL-Clemens Umweltlogistik GmbH on June 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: CUL-Clemens Umweltlogistik GmbH Attn: Renate Clemens, Manager Monastery Mountain Route 72 53177 Bonn, Germany The administrator can be contacted at: Dirk Obermueller Godesberger Avenue 125-127 53175 Bonn, Germany Tel: 81 000 45 Fax: 81 000 820 DYCKERHOFF AG: S&P Revises Rating Outlook to Positive ----------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Germany-based cement producer Dyckerhoff AG to positive from stable, reflecting further improvements in the group's performance in the first half of 2006. At the same time, the 'BB+' long-term and 'B' short-term corporate credit ratings, and the ratings on all outstanding debt of Dyckerhoff and its related entities were affirmed. "The positive outlook reflects our expectation of further improvements in Dyckerhoff's financial profile, as probable continued growth in Eastern Europe will bolster free cash flow generation," said Standard & Poor's credit analyst Eve Greb. The ratings on Dyckerhoff reflect the group's moderately aggressive financial structure and satisfactory business profile, stemming from its substantial exposure to the structurally difficult German market, as well as its limited geographic diversity. These factors are somewhat mitigated by the company's good market positions and healthy margins achieved outside Germany, its positive free cash flow generation overall, and the expectation that its financial profile will steadily improve. In addition, Dyckerhoff's credit quality benefits from its progressive integration into Italy-based Buzzi Unicem SpA. Buzzi Unicem, the second-largest Italian cement manufacturer, has acquired 91.2% of voting rights and 62.2% of preferred shares of Dyckerhoff over the past four years, thereby becoming the majority shareholder, with 76.7% of total capital. With sales of EUR1.3 billion in 2005, Dyckerhoff is the second- largest cement producer in Germany, behind HeidelbergCement AG, and has strong positions in a number of regions across Western and Eastern Europe and in the U.S. In the first half of 2006, Dyckerhoff posted a 6% increase in sales compared with the same period of 2005, due to volume and price increases in the U.S. and Eastern Europe, which offset volume decreases in Germany. Credit protection measures therefore further improved in the first half ended June 30, 2006, and are currently strong for the rating category, with funds from operations (FFO) to pension- adjusted net debt of about 40% for the 12 months to June 30, 2006. "The ratings on Dyckerhoff would likely be raised if the company continues to strengthen its financial profile and improve its FFO-to-net debt ratio--adjusted for operating leases and post- tax unfunded pension liabilities--to a range of 30%-35% on a sustainable basis," said Ms. Greb. "The rating could also be raised should Buzzi more fully integrate the company into the group." FALK BUEROGEBAUDE: Claims Registration Ends September 4 ------------------------------------------------------- Creditors of Falk Buerogebaude Objekt Koln/Colonia-Allee I GmbH & Co. KG have until Sept. 4 to register their claims with court- appointed provisional administrator Josef Nachmann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Oct. 5 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 Munich, 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 Munich opened bankruptcy proceedings against Falk Buerogebaude Objekt Koln/Colonia-Allee I GmbH & Co. KG on July 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Falk Buerogebaude Objekt Koln/Colonia-Allee I GmbH & Co. KG Westendstr. 160 80339 Munich, Germany The administrator can be contacted at: Josef Nachmann Theatinerstr. 32 80333 Munich, Germany Tel: 089/24217737 Fax: 089/24217738 FUNK-MIETWAGEN: Claims Registration Ends August 30 -------------------------------------------------- Creditors of Funk-Mietwagen-Taxi-Zentrale Sarno Rainer Kater GmbH have until Aug. 30 to register their claims with court- appointed provisional administrator Thomas Schmitz. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on Sept. 21 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Area C315 3rd Floor Cardinal Galen Road 124-132 47058 Duisburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Duisburg opened bankruptcy proceedings against Funk-Mietwagen-Taxi-Zentrale Sarno Rainer Kater GmbH on July 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Funk-Mietwagen-Taxi-Zentrale Sarno Rainer Kater GmbH Charlottenstr. 79 b 47053 Duisburg, Germany Attn: Rainer Kater, Manager Roonstr. 33 47198 Duisburg, Germany The administrator can be contacted at: Thomas Schmitz Flohbusch 1 47802 Krefeld, Germany GP GEWERBEBAU: Claims Registration Ends August 30 ------------------------------------------------- Creditors of GP Gewerbebau und Projektierung GmbH have until Aug. 30 to register their claims with court-appointed provisional administrator Andreas Schulte-Beckhausen. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Sept. 29 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall S 2.22 2. Stick William Route 21 53111 Bonn, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bonn opened bankruptcy proceedings against GP Gewerbebau und Projektierung GmbH on July 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: GP Gewerbebau und Projektierung GmbH Wesselheideweg 41 53123 Bonn, Germany Attn: Gilbert van Overberghe, Manager Basteistrasse 42 53173 Bonn, Germany The administrator can be contacted at: Dr. Andreas Schulte-Beckhausen Oxfordstr. 2 53111 Bonn, Germany Tel: 0228 /985210 Fax: 0228 /9852122 HEIDELBERGCEMENT AG: Earns EUR415-Mln Profit in 2006 First Half -------------------------------------------------------------- HeidelbergCement AG reports its interim financial results for the first half of 2006. HeidelbergCement reported a EUR415 million net profit for the first half of 2006, compared with a EUR138 million net profit for the first half of 2005. Group share in profit increased to EUR375 million. The global economic recovery has broadened. The US, China and India are continuing to show strong growth; demand and production have also recovered to a noticeable extent in Europe. High energy prices, imbalances in the global economy and the development of the US dollar exchange rate and US property market remain ongoing risks. In the first half of 2006, cement and clinker sales volumes rose by 16% to 36.6 million tons. Excluding changes in the consolidation scope, the increase amounted to 10.8%. Demand in the European countries and the Africa-Asia-Mediterranean Basin Group area experienced particularly lively development. In North America, sales volumes in the second quarter increased only slightly, but remained at a high level overall. In the first half of 2006, ready-mixed concrete sales volumes grew by just under 14% in total to 14.2 million cubic meters. An increase of 17.2% was recorded in sales volumes of aggregates, which reached 44.6 million tons. Turnover rose by 22.3% to EUR4,276 million in the first half of 2006. Excluding exchange rate and consolidation effects, Group turnover grew by 16.7%. All major countries achieved double- digit growth. Operating income before depreciation in the first half of 2006 rose by 52.4% to EUR814 million. Operating income increased to EUR562 million. The increases are attributable to the broad recovery in the European countries and the continuing high level of demand in North America. The positive effects of the consistent implementation of the win project are markedly reflected in the results. Clear organization structures, consistent leadership and streamlined hierarchies with short reporting processes contributed significantly to the noticeably increased productivity, markedly reduced administrative costs and extended running times of the kilns. The company's French participation Vicat exerted a considerable influence on the growth in results from participations, to EUR82 million. The additional ordinary result of EUR61 million includes sales of CO2 emission permits. The financial results improved, with a decrease in interest cost. Taxes on income in the first half of 2006 rose to EUR188 million as a result of the improved development of results in all Group areas. Expansion Strategy Continued In recent months, HeidelbergCement has continued its expansion in growth markets. Important steps were taken to expand the Group's strong market position in Eastern Europe and Central Asia, with the market entry in Georgia and further investments in Russia. In May, the company acquired a participation of 51% in the Georgian cement company Kartuli Tsementi, which operates a grinding plant with a capacity of 100,000 tons; by the beginning of 2008, the plant's production capacity is expected to be increased to 500,000 tons. In July, it signed an agreement for the acquisition of a majority participation in the Volsk cement plant in the Volga region of Russia with a capacity of 210,000 tons. "Together with a local partner, we will modernize the production facilities and, by the end of 2008, construct a new cement plant with a capacity of 2 million tons," the company said. "In addition, we intend to further expand our presence in India and take over the majority share in the cement manufacturer Mysore Cements. The company based in Bangalore operates two cement plants and a grinding plant in central and southern India with a total capacity of 2.6 million tons. Mysore Cements provides a good base for supplying the rapidly developing markets in the western part of India," the company added. Employees In the first half of the year, the number of employees rose to 43,050 (previous year: 42,055). The increase from the consolidation of its activities in Kazakhstan and the expansion in the Ukraine outweighed the decrease resulting from restructuring measures in Europe and Asia. Investments In the first half of the year, cash flow investments amounted to EUR304 million (previous year: EUR421 million). Investments in tangible fixed assets, which primarily relate to maintenance and optimization measures in our cement plants, totaled EUR213 million, compared with the previous year's EUR208 million. Investments in financial fixed assets decreased to EUR91 million from last year's EUR213 million. "The impact of our expansion measures in growing markets, which we have already published, will not be seen until the second half of the year," the company said. Europe Experiences Strong Growth As a result of the stronger demand and, to some extent, new consolidations, the company's cement deliveries in all countries increased in the first half of the year, with significant growth in most cases. The highest growth rates were recorded by the countries of Eastern Europe, with the exception of the Czech Republic. Germany, Sweden, the Benelux countries and the United Kingdom also achieved noticeable increases in sales volumes. In total, the company's cement and clinker sales volumes in Europe rose by 20.7% to 17.8 million tons (previous year: 14.8). Excluding the new consolidations, this corresponds to a growth of 12.4%. Sales volumes of ready-mixed concrete and aggregates also developed positively in almost all countries, with considerable increases in most cases. The turnover of the Europe Group area rose by 21.5% to EUR1.8 billion from EUR1.537 million of the previous year. About HeidelbergCement Based in Heidelberg, Germany, HeidelbergCement AG -- http://www.heidelbergcement.com/-- was founded in 1873 and is publicly traded. The company produces cement as well as building materials and building chemicals. The group's fiscal 2004 revenue amounted to EUR6.9 billion. * * * As reported in TCR-Europe on May 9, Standard & Poor's Ratings Services revised its outlook on Germany-based cement producer HeidelbergCement AG to positive from stable. At the same time, the 'BB+' long-term and 'B' short-term corporate credit ratings, and the ratings on all outstanding debt of HeidelbergCement and its related entities were affirmed. "This reflects further improvements in the group's financial profile in 2005 and the first quarter of 2006, as well as reduced leverage at the Spohn Cement GmbH level," said Standard & Poor's credit analyst Eve Greb. J. FRITZ: Claims Registration Ends September 1 ---------------------------------------------- Creditors of J. Fritz Automobile GmbH have until Sept. 1 to register their claims with court-appointed provisional administrator Dirk Stadler. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Oct. 11 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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 J. Fritz Automobile GmbH on June 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: J. Fritz Automobile GmbH Attn: Joachim Fritz, Manager Raiffeisenstrasse 6 30938 Burgwedel, Germany The administrator can be contacted at: Dirk Stadler Callinstr. 43 30167 Hanover, Germany Tel: 0511/4739080 Fax: 0511/47390811 KARSTADTQUELLE AG: Eyes Zero Debt at 2006 Year-End -------------------------------------------------- In two of three segments, KarstadtQuelle AG (Essen) improved its operating business and earnings targets in the first six months of 2006. "In the first six months of the year, the Department Store business was considerably up on the previous years, with the Premium Group stores in particular generating high growth rates. It was the best first six months in years," reported Thomas Middelhoff, Chairman of the Management Board. "We can report a considerably positive impact as a result of the World Cup in our country. The Tourism segment is continuing to post very good results. We can state that the Department Stores and Tourism segments have taken a turn for the better. On the other hand Universal Mail Order Germany is behind schedule and down on the previous year." Mr. Middelhoff recalled that two years ago the group was in a dangerous situation as a result of financial problems. Currently, it could be said that the worst was over for the company. There was no comparison in the financial situation, with most group subsidiaries being on track to healthy growth and the remaining realignment-steps of German Universal Mail Order being intensively pursued so as to be concluded by 2007. There had been a fundamental change to the situation with the sale of the real estate package for EUR4.5 billion to the Whitehall Fund (London) five months ago, "For some weeks now, we are virtually debt-free, we have increased the equity ratio to an impressive 16.7 percent -- after a period not so long ago of it being almost zero -- and are now working on aligning the group for the future." Making the group free of debt gives new scope for development and growth on the basis of a less capital- intensive business model. Department Store In the Department Store segment, the positive trend from the Christmas business continued in the first six months. Karstadt posted the best half-year result for years. Positive factors here were both a brightening of the general economic situation and the slightly positive impact on purchasing behaviour as well as the non-recurring impact of the World Cup, the effect of which will only fully show in the third quarter. "What is particularly pleasing is the development of the department stores we combined in the Premium Group. For example, KaDeWe in Berlin and Alsterhaus in Hamburg posted high growth rates. This confirms our assumption that we can and must post further gains in this segment," stated Mr. Middelhoff, who also presented the new Management Board member responsible for the Department Store segment, Peter Wolf. Wolf has moved from Tchibo to Karstadt at the beginning of the month. Thomas Cook The Thomas Cook tourism business continues to be up on the previous year performing better than the market. In the German tour operator market, Europe's second largest tourism group reported a 5.6 percent upturn in bookings to the middle of July in comparison to the previous year. In view of market growth of just under 2 percent, the group sees a gain of market share in Germany. The key brand, Neckermann Reisen contributed to the success with bookings up 5.5 percent. For the 2005/06 financial year, which ends on Oct. 31, the joint KarstadtQuelle and Lufthansa subsidiary is targeting a 4.0 percent sales growth on the German market. Mail Order The Mail Order segment is still in the middle of a restructuring process which will last to the end of 2007 and which is being intensified with a new package of measures. EUR200 million is to be deployed for this non-recurring expenditure, financed from savings in working capital and from cash flow. "We want to move away from being a universal provider into being a specialist, away from the big book in the direction of e- commerce and from the German focus to a more international orientation -- in an ideal case with a ratio of 50:50 for each situation." The Chairman of the Management Board announced that in the second half-year there would be a marketing campaign that will considerably push Mail Order sales. "In the first six months, we had reduced marketing expenditure by some 20 percent, since previous activities were not appropriately being directed to the customers. This initially meant a downturn in sales, but a scheduled one." "Our overriding objective remains making the company fit for the future", stated Middelhoff. "The core businesses are department stores, home shopping and travel. In all of these areas we must achieve even stronger operating success than has previously been the case, with clear customer orientation, service and advice in precisely defined buyer segments." Operating Results In the first six months of 2006, adjusted group sales totaled EUR6.5 billion (previous year: EUR6.8 billion). Adjusted for the sales effect from the catalogue pages in Mail Order no longer published, sales in the first half-year of 2006 are only 1.2 percent below the level of the previous year and in the second quarter at the same level as the previous year. Consolidated earnings (after minority interests) reached EUR558.1 million (previous year: -EUR271.9 million). With the inflow of EUR2.7 billion from the first tranche of the disposal of real estate, the equity ratio (pro forma) increased to 16.7 percent (previous year: 2.8 percent) and is set to be 20 percent by the end of the year. To June 30, 2006, net financial liabilities (pro forma) were only EUR600 million. To the end of the year, the group will have no financial debt. Partly due to the sale of real estate, adjusted EBITDA declined to -EUR41.7 million (previous year: - EUR19.4 million). The guidance given by the group for adjusted EBITDA is a year-on-year increase of 10 percent. KarstadtQuelle Headquartered in Essen, Germany, KarstadtQuelle AG -- http://www.karstadtquelle.com/-- operates department stores and mail order businesses. It has annual sales of EUR15.5 billion and employs around 70,000. The retailer has been suffering from sluggish consumption and high unemployment rate in Germany. KarstadtQuelle posted an EBITDA of -EUR428 million in 2004. The group is currently restructuring operations by selling off non- core assets and implementing cost-saving measures. The group achieved and exceeded its targets for the 2005 financial year. Group sales, adjusted for the strong impact of the realignment, were EUR15.45 billion, compared to EUR16.14 billion in the previous year, down 4.2 percent. Adjusted EBITDA improved by 5.1 percent to EUR544 million, compared to EUR518 million in the previous year. In 2005, net financial liabilities were reduced by a third to EUR3.0 billion (including Thomas Cook), down from EUR4.5 billion in the previous year. KUEHNE IMMOBILIEN: Claims Registration Ends August 30 ----------------------------------------------------- Creditors of Kuehne Immobilien GmbH have until Aug. 30 to register their claims with court-appointed provisional administrator Sandra Weimann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Oct. 4 at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder), Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt (Oder) opened bankruptcy proceedings against Kuehne Immobilien GmbH on July 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kuehne Immobilien GmbH Wood Market 7 15230 Frankfurt (Oder), Germany The administrator can be contacted at: Sandra Weimann Breite Road 9 A 14467 Potsdam, Germany KUNSTSTOFF-FERTIGUNGSTECHNIK: Claims Registration Ends Sept. 1 -------------------------------------------------------------- Creditors of Kunststoff-Fertigungstechnik GmbH have until Sept. 1 to register their claims with court-appointed provisional administrator Peter Jost. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on Sept. 18 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 Bad Homburg Room 302 3rd Floor District Court Building Auf der Steinkaut 10-12 61352 Bad Homburg v. d. Hoehe, 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 Bad Homburg opened bankruptcy proceedings against Kunststoff-Fertigungstechnik GmbH on July 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kunststoff-Fertigungstechnik GmbH Attn: Bruno Wendt, Manager Otto-Hahn-Str. 16 61381 Friedrichsdorf/Ts., Germany The administrator can be contacted at: Peter Jost Pfingsweidstr. 3 60316 Frankfurt, Germany Tel: 069/2097390 Fax: 069/20973929 VEREINS BERGAKADEMISCHER: Claims Registration Ends September 1 -------------------------------------------------------------- Creditors of Vereins Bergakademischer Studentenclub "Das Fuellort" e.V. have until Sept. 1 to register their claims with court-appointed provisional administrator Stefan Kahnt. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on Sept. 27 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 24 Law Courts Prince Road 21 Chemnitz, 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 Chemnitz opened bankruptcy proceedings against Vereins Bergakademischer Studentenclub "Das Fuellort" e.V. on July 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Vereins Bergakademischer Studentenclub "Das Fuellort" e.V. Attn: Erik Teubel, Joern Raue and Martin Preiss, Managers Peter Road 5 09599 Freiberg, Germany The administrator can be contacted at: Stefan Kahnt Leipziger Str. 62 09113 Chemnitz, Germany Web: http://www.pluta.net/ =========== G R E E C E =========== EMPORIKI BANK: Owners Tender 71.97% Stake to Credit Agricole ------------------------------------------------------------ Credit Agricole S.A. revealed that its public cash offer to the shareholders in Emporiki Bank of Greece S.A. to tender shares in Emporiki Bank to the Company has been successful. Upon settlement of the transfers, Credit Agricole S.A.'s total ownership will reach 71.97% of Emporiki's share capital: -- 1,300 shareholders of Emporiki that hold a total of 69,574,826 shares have accepted the offer at the close on Aug. 7, 2006, representing approximately 52.55% of the Emporiki share capital; -- together with Credit Agricole S.A.'s direct shareholding of 25,702,456 shares, which includes 14,002,359 shares purchased in the market from the announcement of the offer, representing 19.41% of Emporiki's share capital, Credit Agricole S.A. will reach upon settlement of the transfers 71.97% of Emporiki's share capital; -- the completion of the off-the-exchange transfer and the settlement of Emporiki shares duly tendered by Aug. 7 is expected to occur on Aug. 17; -- The Bank of Greece has approved the acquisition by Credit Agricole S.A. of control of Emporiki, in accordance with L. 2076/1992; -- The offer was notified, under the simplified procedure, to the European Commission, which is expected to issue its decision at the latest on Aug. 21. "I am delighted at the success of the offer for Emporiki and want to express my appreciation in the confidence the Greek government and all other shareholders have shown us by tendering their shares to the offer, Rene Carron, chairman, Credit Agricole S.A. said. "This transaction marks a major step in our international strategy and will contribute to our objective to increase our net banking income from non-French operations. We very much look forward to strengthening the bank in Greece and in the region to the benefit of Emporiki's activities, customers and employees. "Strategically this acquisition is a perfect fit for us, it allows us to extend our geographical footprint and gives us access to a growing market in a rapidly expanding region," Georges Pauget, chief executive, Credit Agricole S.A. said. "It also meets all our financial acquisition criteria. We will now focus on developing Emporiki's operating procedures, including risk management, marketing and customer facing activities as well as employee relations and training in line with Credit Agricole S.A. best practice. Morgan Stanley & Co. Limited acted as financial advisor to Credit Agricole S.A. in connection with the offer. As reported in TCR-Europe on Aug 2, Credit Agricole S.A. had increased its takeover offer for Emporiki Bank of Greece S.A. from EUR23.5 per share to EUR25 per share after the Greek government said the French bank's offer was too low. The raised offer values Emporiki at around EUR3.3 billion. Bank of Cyprus, which offered EUR6 per share in cash and 3.25 BOC shares for every Emporiki share, withdrew its bid in July after failing to get approval from the Central Bank of Cyprus. About Credit Agricole Headquartered in Paris, France, Credit Agricole S.A. (Euronext Paris: ACA) -- http://www.credit-agricole-sa.fr/-- offers retail and business banking, lending, and deposit services at more than 9,000 locations throughout the country, including those of subsidiary Le Credit Lyonnais (LCL), which it acquired in 2003. Credit Agricole is the country's largest bank, owning a 25% stake each in about 40 regional banks, which in turn own more than half of Cr,dit Agricole. About Emporiki Bank Headquartered in Athens, Greece, Emporiki Bank of Greece S.A. -- http://www.emporiki.gr/-- offers banking services in Greece through a network of 374 branches, through the Emporiki Bank branch operating in London as well as through the Group's subsidiaries in Albania, Armenia, Bulgaria, Cyprus, Germany, Georgia and Romania. The extensive network of Emporiki Bank is a major advantage for the Group in the distribution of the products and services it offers. * * * As reported in TCR-Europe on June 19, Moody's Investors Service has placed on review for possible upgrade the Baa1/Prime-2 deposit, Baa1 senior debt and Baa2 subordinated debt ratings of Emporiki Bank of Greece SA. In addition, the Baa1 senior debt and Baa2 subordinated debt ratings assigned to Emporiki Finance Group were also placed on review for possible upgrade. In a rating action not related to this transaction, Moody's has confirmed Emporiki's D+ financial strength rating. As reported in TCR-Europe on June 15, Fitch Ratings placed Greece-based Emporiki Bank's Issuer Default Rating of BBB, Short-term rating of F3 and Support rating of 2 on Rating Watch Positive. Emporiki's Individual rating of C/D is affirmed. ============= I R E L A N D ============= SANDISK CORP: Acquiring msystems in All-Stock Deal -------------------------------------------------- SanDisk Corporation and msystems Ltd. have entered into definitive agreements for SanDisk to acquire msystems in an all- stock transaction. In the transaction, each msystems ordinary share will be converted into 0.76368 of a share of the Company's common stock, or a 26% premium over the average closing price of msystems' shares for the last thirty trading days. The transaction is expected to close in the fourth quarter of 2006. Eli Harari, the Company's chairman and chief executive officer said, "SanDisk and msystems, over the past 18 years, have been leading innovators in the flash storage market. This strategic acquisition will give us the critical mass and complementary products, customers, channels, technology and manufacturing base to take our shared vision to the next level. The NAND flash data storage business is in its early stages and we believe the market opportunity is largely untapped," Mr. Harari further said, "msystems is a leader in flash memory systems addressing mobile, portable and embedded markets and they have a strong team, significant IP and important OEM customers. SanDisk has a record of creating new market categories, world-class manufacturing capabilities and leading market share in the retail channel. Both companies are noted for their relentless innovation, and this acquisition is intended to further accelerate our pace of innovation. In the near term, this transaction better positions SanDisk to serve the expanding storage needs of handset manufacturers and mobile network operators. In the long term, the combination with msystems will be a catalyst in the development of next generation flash enabled consumer applications. We are extremely excited about joining forces with the msystems team to achieve our shared vision. We are committed to serving msystems' OEM customers after the transaction closes." msystems also reported its intention to release its second quarter 2006 financial results on Aug. 7, 2006. About msystems Ltd. msystems (NASDAQ:FLSH) has been transforming raw flash into smarter storage solutions since 1989. From embedded flash drives deployed in mobile handsets to U3 USB smart drives designed for leading global brands, msystems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications. Headquartered in Milpitas, Calif., SanDisk Corp. (NASDAQ:SNDK) -- http://www.sandisk.com/-- manufactures various formats of flash memory cards for use in consumer electronics products, including digital cameras, mobile phones, and game systems. In addition, the company produces devices such as USB drives and MP3 music players. SanDisk has worldwide locations in China, Ireland, India, Israel, Japan, Korea and Taiwan. * * * As reported in the Troubled Company Reporter on May 11, 2006, Standard & Poor's Ratings Services assigned its 'BB-' rating to Sunnyvale, California-based SanDisk Corp.'s proposed issue of US$1.0 billion of senior unsecured convertible notes due 2013. The 'BB-' corporate credit rating on SanDisk was affirmed. S&P said the rating outlook is stable. SANDISK CORP: Posts US$96 Million Net Income in Second Quarter -------------------------------------------------------------- SanDisk Corp. has reported net income of US$96 million for the second quarter ended July 2, 2006. The Company disclosed that total second quarter revenues increased 40% on a year-over-year basis to US$719 million. The Company also reported GAAP operating income for the second quarter of 2006 of US$129 million or 18% of revenues and non- GAAP operating income of US$159 million or 22% of revenue compared to US$106 million or 21% of revenue in the second quarter of 2005. Cash flow from operations was US$59 million, and total cash and investments increased sequentially by US$933 million to US$2.7 billion. At July 2, 2006 the Company's balance sheet showed total assets of US$4.8 billion and total liabilities of US$1.7 billion. The Company also disclosed that it signed with Toshiba a definitive agreement to build a new 300-millimeter NAND wafer fabrication facility in Yokkaichi, Japan with initial production expected to begin in the fourth quarter of 2007. Headquartered in Milpitas, Calif., SanDisk Corp. (NASDAQ:SNDK) -- http://www.sandisk.com/-- manufactures various formats of flash memory cards for use in consumer electronics products, including digital cameras, mobile phones, and game systems. In addition, the company produces devices such as USB drives and MP3 music players. SanDisk has worldwide locations in China, Ireland, India, Israel, Japan, Korea and Taiwan. * * * As reported in the Troubled Company Reporter on May 11, 2006, Standard & Poor's Ratings Services assigned its 'BB-' rating to Sunnyvale, California-based SanDisk Corp.'s proposed issue of US$1.0 billion of senior unsecured convertible notes due 2013. The 'BB-' corporate credit rating on SanDisk was affirmed. S&P said the rating outlook is stable. ========= I T A L Y ========= PARMALAT SPA: Popolare Italiana Settles Suit for EUR69 Million -------------------------------------------------------------- Parmalat SpA and Banca Popolare Italiana Scrl agreed to settle lawsuits over the bank's alleged role in the Italian dairy's collapse. Pursuant to the settlement, BPI will pay Parmalat EUR59.5 million in cash and EUR10 million in receivables. The parties will withdraw claims against each other. BPI is just one of the many financial institutions that Parmalat has asserted claw-back claims. Parmalat expects to recover up to EUR7,500,000,000 from banks for their part in Parmalat's going to bankruptcy. In 2004, Nextra Investment Management SGR, or Intesa Group, settled with the Italian dairy for EUR160 million. In mid-2005, Morgan Stanley paid Parmalat EUR155 million for a global settlement of their mutual claims. Parmalat could reach settlements totaling EUR2 billion with banks including Capitalia SpA, Banca Intesa SpA, UniCredit SpA and Deutsche Bank AG, Dow Jones Newswire says, citing the Il Corriere newspaper. Parties' Statement Parmalat SpA, assisted by Studio Maffei Alberti, and Banca Popolare Italiana Societa Cooperativa, assisted by Studio Iannaccone e Associati, communicate that agreement was reached and two contracts have been signed by which there will be a settlement of all reciprocal claims that had led to litigation arising from operations in the period preceding placement of the Parmalat Group in Extraordinary Administration (December 2003). The contracts, which cover BPI and its direct and indirect subsidiaries, and Parmalat and its originating "procedures", bring all pending revocatory actions and all further reciprocal claims to an end, according to the following structural framework: First Contract 1. The BPI Group will pay Parmalat EUR59.5 million in two installments: -- at the execution of the agreement, the first installment of EUR44.5 million will be paid; and -- the remaining EUR15 million will be paid by March 31, 2007; 2. Receivables towards third parties, approximating EUR10 million -- which had been assigned as collateral to BPI -- will revert to Parmalat; 3. BPI withdraws the objections that it filed against the proof of claims of Parmalat Finanziaria in Extraordinary Administration for credit claims in excess of EUR30 million and will abstain from claiming in bankruptcy credits originated as a result of restitution of the agreed upon amounts; Effective as of the date of full and timely payment of the first installment of EUR44.5 million, Parmalat and its originating "procedures" will withdraw from all actions and complaints it had initiated before the Tribunal of Parma, and will abstain from submitting against the BPI Group, new complaints aiming to obtain claw back of preferential payments effected during the period provided for in Art. 67 of the B.L. Furthermore, Parmalat and the originating "procedures" undertake, effective the date of payment of the first installment: -- to abstain from filing as a "private party" against the BPI Group in any of the pending and future criminal proceedings that are linked in whatever manner to the Parmalat Group insolvency; and -- to withdraw from all revocatory, restitution and/or damages and/or indemnity actions, and from all other actions of whatever nature or title, including actions that have resulted from facts that might hypothetically have criminal relevance and are referable to the declaration of insolvency of the Parmalat Group. Second Contract Parmalat will take the share parts of Sata Srl (a company traceable to the Tanzi family, presently in receivership) from which it claims credits of EUR149 million compared to total Sata debits of EUR157 million. The assignment of the share parts will take place for a consideration of EUR1. The Parmalat credit is presently objected to by a third party creditor, as per Art. 100 B.L. In this connection, in furtherance of today's contracts, the BPI Group undertakes to support the emergence of Sata from bankruptcy through: (i) waiver of a credit of approximately EUR2.5 million it claims against the above mentioned third party creditor, and (ii) cancellation of a mortgage collateral valued EUR28 million recorded against the real estate of Azienda Agricola Pisorno Srl, a company controlled by Sata, upon payment by this company and/or by Parmalat, in favor of BPI, of an amount of EUR15 million by March 31, 2007, this term being of the essence. Parmalat communicates that Sata has liquidity of EUR28 million, and that the Azienda Agricola Pisorno has an estimated value of EUR40 million. BPI Also Settles Parmatour Claims The BPI Group communicates further that it has executed a contract with the companies Parmatour S.p.A. in a.s., Nuova Holding S.p.A. in a.s., Hit S.p.A. in a.s., Hit International S.p.A. in a.s., assisted by Studio Tracanella. In accordance with said contract, the BPI Group undertakes to pay Parmatour EUR12 million in full satisfaction of all and any claims filed, or to be filed, by the Parmatour Procedures, to renounce its credits that have been admitted as unsecured credits in the claims role of Parmatour for EUR26,912,783.15, and to return to Parmatour EUR715,194.15 which is being held in a certain restricted bank account that was opened according to a Interbank Treaty dated April 29, 2003, among some banking institutions and Parmatour. The Parmatour Procedures: -- undertake to abstain from filing as a "private party" against the BPI Group in any of the pending and future criminal proceedings that are linked in whatever manner to the Parmatour insolvency; and -- withdraw, with respect to the BPI Group, from all revocatory, restitution and/or damages and/or indemnity actions, and from all other actions of whatever nature or title, including actions that have resulted from facts that might hypothetically have criminal relevance, which are referable to the declaration of insolvency of Parmatour, and from whatever claim which may consist of possible charges of responsibility in the causation and/or the deepening and/or the delayed declaration of insolvency of Parmatour. The Boards of Parmalat and Banca Popolare Italiana have expressed their satisfaction that agreement has been reached. About Banca Popolare Italiana Headquartered in Lodi, Italy, Banca Popolare Italiana -- http://www.bancapopolareitaliana.it/-- attracts deposits and offers commercial banking services. The Bank offers securities brokerage, asset management, mortgage loans, insurance, lease financing and treasury services and manages mutual funds. Through a subsidiary, Banca Popolare Italiana offers merchant banking services and medium- and long-term lending. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. POPOLARE ITALIANA: Settles Parmalat Suits for US$69 Million ----------------------------------------------------------- Parmalat SpA and Banca Popolare Italiana Scrl agreed to settle lawsuits over the bank's alleged role in the Italian dairy's collapse. Pursuant to the settlement, BPI will pay Parmalat EUR59.5 million in cash and EUR10 million in receivables. The parties will withdraw claims against each other. BPI is just one of the many financial institutions that Parmalat has asserted claw-back claims. Parmalat expects to recover up to EUR7,500,000,000 from banks for their part in Parmalat's going to bankruptcy. In 2004, Nextra Investment Management SGR, or Intesa Group, settled with the Italian dairy for EUR160 million. In mid-2005, Morgan Stanley paid Parmalat EUR155 million for a global settlement of their mutual claims. Parmalat could reach settlements totaling EUR2 billion with banks including Capitalia SpA, Banca Intesa SpA, UniCredit SpA and Deutsche Bank AG, Dow Jones Newswire says, citing the Il Corriere newspaper. Parties' Statement Parmalat SpA, assisted by Studio Maffei Alberti, and Banca Popolare Italiana Societa Cooperativa, assisted by Studio Iannaccone e Associati, communicate that agreement was reached and two contracts have been signed by which there will be a settlement of all reciprocal claims that had led to litigation arising from operations in the period preceding placement of the Parmalat Group in Extraordinary Administration (December 2003). The contracts, which cover BPI and its direct and indirect subsidiaries, and Parmalat and its originating "procedures", bring all pending revocatory actions and all further reciprocal claims to an end, according to the following structural framework: First Contract 1. The BPI Group will pay Parmalat EUR59.5 million in two installments: -- at the execution of the agreement, the first installment of EUR44.5 million will be paid; and -- the remaining EUR15 million will be paid by March 31, 2007; 2. Receivables towards third parties, approximating EUR10 million -- which had been assigned as collateral to BPI -- will revert to Parmalat; 3. BPI withdraws the objections that it filed against the proof of claims of Parmalat Finanziaria in Extraordinary Administration for credit claims in excess of EUR30 million and will abstain from claiming in bankruptcy credits originated as a result of restitution of the agreed upon amounts; Effective as of the date of full and timely payment of the first installment of EUR44.5 million, Parmalat and its originating "procedures" will withdraw from all actions and complaints it had initiated before the Tribunal of Parma, and will abstain from submitting against the BPI Group, new complaints aiming to obtain claw back of preferential payments effected during the period provided for in Art. 67 of the B.L. Furthermore, Parmalat and the originating "procedures" undertake, effective the date of payment of the first installment: -- to abstain from filing as a "private party" against the BPI Group in any of the pending and future criminal proceedings that are linked in whatever manner to the Parmalat Group insolvency; and -- to withdraw from all revocatory, restitution and/or damages and/or indemnity actions, and from all other actions of whatever nature or title, including actions that have resulted from facts that might hypothetically have criminal relevance and are referable to the declaration of insolvency of the Parmalat Group. Second Contract Parmalat will take the share parts of Sata Srl (a company traceable to the Tanzi family, presently in receivership) from which it claims credits of EUR149 million compared to total Sata debits of EUR157 million. The assignment of the share parts will take place for a consideration of EUR1. The Parmalat credit is presently objected to by a third party creditor, as per Art. 100 B.L. In this connection, in furtherance of today's contracts, the BPI Group undertakes to support the emergence of Sata from bankruptcy through: (i) waiver of a credit of approximately EUR2.5 million it claims against the above mentioned third party creditor, and (ii) cancellation of a mortgage collateral valued EUR28 million recorded against the real estate of Azienda Agricola Pisorno Srl, a company controlled by Sata, upon payment by this company and/or by Parmalat, in favor of BPI, of an amount of EUR15 million by March 31, 2007, this term being of the essence. Parmalat communicates that Sata has liquidity of EUR28 million, and that the Azienda Agricola Pisorno has an estimated value of EUR40 million. BPI Also Settles Parmatour Claims The BPI Group communicates further that it has executed a contract with the companies Parmatour S.p.A. in a.s., Nuova Holding S.p.A. in a.s., Hit S.p.A. in a.s., Hit International S.p.A. in a.s., assisted by Studio Tracanella. In accordance with said contract, the BPI Group undertakes to pay Parmatour EUR12 million in full satisfaction of all and any claims filed, or to be filed, by the Parmatour Procedures, to renounce its credits that have been admitted as unsecured credits in the claims role of Parmatour for EUR26,912,783.15, and to return to Parmatour EUR715,194.15 which is being held in a certain restricted bank account that was opened according to a Interbank Treaty dated April 29, 2003, among some banking institutions and Parmatour. The Parmatour Procedures: -- undertake to abstain from filing as a "private party" against the BPI Group in any of the pending and future criminal proceedings that are linked in whatever manner to the Parmatour insolvency; and -- withdraw, with respect to the BPI Group, from all revocatory, restitution and/or damages and/or indemnity actions, and from all other actions of whatever nature or title, including actions that have resulted from facts that might hypothetically have criminal relevance, which are referable to the declaration of insolvency of Parmatour, and from whatever claim which may consist of possible charges of responsibility in the causation and/or the deepening and/or the delayed declaration of insolvency of Parmatour. The Boards of Parmalat and Banca Popolare Italiana have expressed their satisfaction that agreement has been reached. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. About Banca Popolare Italiana Headquartered in Lodi, Italy, Banca Popolare Italiana -- http://www.bancapopolareitaliana.it/-- attracts deposits and offers commercial banking services. The Bank offers securities brokerage, asset management, mortgage loans, insurance, lease financing and treasury services and manages mutual funds. Through a subsidiary, Banca Popolare Italiana offers merchant banking services and medium- and long-term lending. * * * As reported in TCR-Europe on April 3, Fitch Ratings downgraded Banca Popolare Italiana's Issuer Default and Short-term ratings to BBB from BBB+ and F3 from F2 respectively. Its Individual and Support rating are affirmed at C and 3 respectively. Its senior debt and trust preferred stock are also downgraded to BBB and BB+ respectively from BBB+ and BBB-. The Issuer Default, Short-term and Individual ratings are removed from Rating Watch Negative. A Stable Outlook is assigned for the Issuer Default rating. =================== K A Z A K H S T A N =================== AKSUSKY HLEBOZAVOD: Creditors Must File Claims by Sept. 15 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region declared OJSC Aksusky Bread-Baking Plant Aksusky Hlebozavod insolvent. Creditors have until Sept. 15 to submit written proofs of claim to: OJSC Aksusky Hlebozavod Donentaeva Str. 8 Aksu, Kazakhstan Tel: 8 (7015) 11-59-77 FERRUM INC: Creditors Must File Claims by Sept. 15 -------------------------------------------------- LLP Ferrum Inc. has declared insolvency. Creditors have until Sept. 15 to submit written proofs of claim to: LLP Ferrum Inc. Erubaeva Str. 52/2-4 Kazybek bi District Karaganda Karaganda Region Kazakhstan JAKSY-2003: Proof of Claim Deadline Slated for Sept. 15 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Jaksy-2003 insolvent. Creditors have until Sept. 15 to submit written proofs of claim to: LLP Jaksy-2003 Micro District 28, 35-25 Aktau Mangistau Region Kazakhstan Tel: 8 (3292) 40-21-53 8 (3005) 22-81 61 KARABURA-2030: Proof of Claim Deadline Slated for Sept. 15 ---------------------------------------------------------- LLP Karabura-2030 has declared insolvency. Creditors have until Sept. 15 to submit written proofs of claim to: LLP Karabura-2030 Jailau 7/ 30 Taraz Jambyl Region Kazakshtan PRODSTAL: Claims Registration Ends Sept. 15 ------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Prodstal insolvent on June 30. Creditors have until Sept. 15 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Region Gogol Str.177a Kostanai Kostanai Region Kazakhstan RIGEL 2003: Claims Registration Ends Sept. 15 --------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Rigel 2003 insolvent on June 30. Creditors have until Sept. 15 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Region Gogol Str.177a Kostanai Kostanai Region Kazakhstan TAISOYGAN-AGRO: Creditors' Claims Due Sept. 15 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Taisoygan-Agro insolvent on June 30. Creditors have until Sept. 15 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Region Gogol Str.177a Kostanai Kostanai Region Kazakhstan YE-OIL: Creditors' Claims Due Sept. 15 -------------------------------------- LLP Ye-Oil has declared insolvency. Creditors have until Sept. 15 to submit written proofs of claim to: LLP Ye-Oil Aksai-1, 1a/10 Almaty, Kazakhstan Tel: 8 (3272) 24-37-44 * Fitch Lifts Long-Term Rating of Almaty City to BB+ ---------------------------------------------------- Fitch Ratings upgraded the Kazakhstan City of Almaty's Long-term rating to BB+ from BB and affirmed the Short-term rating at B. The city's local currency long-term rating is also upgraded to BB+. Following the upgrade, the Outlook is now Stable. The upgrade reflects the positive impact that the growing and diversified local economy has had and will continue to have on the city's budget. Taxes contributed 83% of the city's operating income in 2005. The local economy is dominated by the service sector at 85% of gross city product in 2005. Almaty is home to the national financial sector with many domestic and foreign commercial banks, the National Bank of Kazakhstan and the country's only stock exchange located in the city. The city recorded a high level of capital expenditure in 2005, at 23.8% of total spending, up from 7.2% in 2000. A significant proportion of the capital investment (more than 30%) has been financed by Almaty's capital revenues over the last two years. The share of capital revenue in total revenue has grown to 8.4% in 2005 from under 1% in 2000. The debt burden is low, reaching only 6.3% of the current revenue in 2005 while the debt servicing declined to 1.3% of current revenue in 2005 from 6.3% in 2002. The average payback period has remained below six months for the last four years. The city's budgetary framework is heavily dependant on the central government's decisions. The budgetary framework of Kazakhstan is characterized by strong bias towards centralized decision-making and funds distribution. Although the city derives a significant share of its revenue from local tax sources, the budgetary framework is unpredictable with regards to transfer volumes, deficit funding and regulatory decisions. The city's budget is characterized by a high degree of rigidity. Transfers of all kinds averaged almost 60% of the city's operating expenditure over the last five years, while financing possibilities have been limited since new legislation was implemented in 2003. The city is prohibited from issuing bonds or borrowing from banks. The only financing option is credits from the central government. The City of Almaty is the largest city in Kazakhstan and is located in the south-eastern part of the country. The city contributes 18.5% to national GDP (2004) and makes up about 8% of Kazakhstan total population. =================== K Y R G Y Z S T A N =================== KEREMET: Proof of Claim Deadline Slated for Sept. 18 ---------------------------------------------------- JSC Keremet has declared insolvency. Creditors have until Sept. 18 to submit written proofs of claim to: JSC Keremet Chatyrkol Str. 120 Balykchy, Kyrgyzstan =================== L U X E M B O U R G =================== NORTEL NETWORKS: Second Qtr. Revenues Up 5% to US$2.74 Billion -------------------------------------------------------------- Nortel Networks Corp. disclosed that it and its principal operating subsidiary Nortel Networks Limited or NNL have reported their unaudited financial results for the second quarter of 2006 prepared in accordance with accounting principles generally accepted in the United States. Second Quarter 2006 Results Revenues were US$2.74 billion for the second quarter of 2006 compared to US$2.62 billion for the second quarter of 2005 and US$2.38 billion for the first quarter of 2006. The Company reported net earnings in the second quarter of 2006 of US$366 million, or US$0.08 per common share on a diluted basis, compared to a net loss of US$33 million, or (US$0.01) per common share on a diluted basis, in the second quarter of 2005 and a net loss of US$167 million, or (US$0.04) per common share on a diluted basis, in the first quarter of 2006. Net earnings in the second quarter of 2006 included a shareholder litigation recovery of US$510 million reflecting a mark-to-market adjustment of the share portion of the global class action settlement, special charges of US$45 million for restructuring and a loss of US$10 million on the sale of assets. Net loss in the second quarter of 2005 included special charges of US$92 million related to restructuring activities and US$11 million of costs related to the sale of businesses and assets. Net loss in the first quarter of 2006 included a benefit of US$35 million in gains on the sale of businesses and assets and a shareholder litigation expense of US$19 million reflecting a mark-to-market adjustment. "Our second quarter performance underscores both the challenges and good progress we are making with Nortel's transformation. On the plus side we saw strong order growth of 22% and increased sales momentum but gross margin was up only modestly and not at the 40% target we have set for ourselves," said Mike Zafirovski, president and chief executive officer, Nortel. "We remain intensely focused on delivering improved financial performance and there's solid traction on significant business transformation initiatives including the go-to-market supporting our Enterprise business, the development of our Services business, our strategic alliance with Microsoft, and across the board cost management programs. Together, these efforts are enabling us to deliver greater customer value and substantially enhance Nortel's competitiveness." Breakdown of Second Quarter 2006 Revenues Mobility and Converged Core Networks revenues were US$1.59 billion, an increase of 7 percent compared with the year-ago quarter and an increase of 12 percent sequentially. Enterprise Solutions and Packet Networks revenues were US$1.07 billion, a decrease of 1% compared with the year-ago quarter and an increase of 23% sequentially. Deferred revenues decreased sequentially by US$14 million and backlog increased by approximately US$194 million. Gross Margin Gross margin was 39 percent of revenue in the second quarter of 2006, primarily impacted by geographic and product mix, and competitive pricing pressures. This compares to gross margin of 43 percent for the second quarter of 2005 and 38 percent for the first quarter of 2006. Compared to the second quarter of 2005, gross margin was impacted primarily by pricing pressures and unfavourable product mix, which was partially offset by higher sales volumes. Selling, General and Administrative SG&A expenses were US$596 million in the second quarter of 2006, reflecting incremental costs related to our acquisition of PEC and the LG-Nortel joint venture and unfavorable foreign exchange impacts, offset by cost containment initiatives. This compares to SG&A expenses of US$588 million for the second quarter of 2005, and US$595 million for the first quarter of 2006. Research and Development R&D expenses were US$489 million in the second quarter of 2006, reflecting increased investment in targeted product areas, the consolidation of the LG-Nortel joint venture and unfavorable foreign exchange impacts, offset by the favorable impact of the savings associated with its 2004 restructuring program. This compares to US$488 million for the second quarter of 2005 and US$478 million for the first quarter of 2006. Special Charges Special charges in the second quarter of 2006 of US$45 million included US$43 million for the restructuring program announced June 27, 2006. Other income (expense) - net Other income (expense) - net was net income of US$51 million for the second quarter of 2006, which primarily related to investment income of US$29 million and foreign exchange gains of US$16 million. Cash Cash balance at the end of the second quarter of 2006 was US$1.90 billion, down from US$2.70 billion at the end of the first quarter of 2006. This decrease in cash was primarily driven by an outflow of US$580 million (US$575 million plus accrued interest of US$5 million) deposited into escrow on June 1, 2006, under the global class action settlement (pending satisfactory completion of all conditions) and US$150 million for the repayment at maturity of the outstanding aggregate principal amount of the 7.40% Notes due June 15, 2006, and a cash outflow from operations of US$108 million, partially offset by cash proceeds of US$70 million related to the Flextronics transfer. On July 5, 2006, Nortel announced the closing of the offering of US$2 billion aggregate principal amount of senior notes and that it has used US$1.3 billion of the proceeds to prepay the US$1.3 billion one-year credit facility that it entered into in February 2006. First Half 2006 Results For the first half of 2006, revenues were US$5.13 billion compared to US$5.01 billion for the same period in 2005. The Company reported net earnings for the first half of 2006 of US$199 million, or US$0.05 per common share on a diluted basis, compared to a net loss of US$137 million, or (US$0.03) per common share on a diluted basis, for the same period in 2005. Net earnings in the first half of 2006 included a shareholder litigation recovery of US$491 million reflecting a mark-to- market adjustment of the share portion of the global class action settlement, special charges of US$50 million related to restructuring activities and a benefit of US$25million related to the sale of businesses and assets. The first half 2005 results included special charges of US$106 million related to restructuring activities and US$33 million of costs related to the sale of businesses and assets. Outlook Commenting on the Company's financial expectations, Peter Currie, executive vice president and chief financial officer, Nortel, said, "For the full year 2006, we continue to expect strong revenue momentum for the rest of 2006, resulting in high single digit growth for the full year 2006 compared to 2005, gross margin to be around 40% as a percentage of revenue and operating expenses to be flat to up slightly from 2005, with foreign exchange and growth related expenses offsetting productivity and efficiencies. For the third quarter of 2006, we expect revenue growth in excess of 10 percent compared to the third quarter of 2005 and gross margin and operating expenses to be in-line with our full year guidance." Recent Business Highlights New Strategic Relationships Nortel and Microsoft announced a strategic alliance to accelerate the transformation of business communications towards a shared vision for unified communications. The agreement engages the companies at the technology, marketing and business levels and includes joint product development, solutions and systems integration, and go-to-market initiatives. Liberty Global, the world's leading international cable operator, has signed a 3-year global purchase agreement with Nortel for cable VoIP and optical solutions and services. With this agreement, Nortel is now an approved vendor across Liberty Global's cable subsidiaries that serve 15 million customers in 18 countries around the world. Nortel Government Solutions has teamed up with NextiraOne Federal to work together to propose joint solutions for the U.S. Army Infrastructure Modernization program or IMOD. NextiraOne Federal, an authorized Nortel reseller, was awarded one of 10 Indefinite Delivery/Indefinite Quantity contracts to provide converged voice and data solutions for bases worldwide under the U.S. Army IMOD program. In addition, Fortress Technologies and Nortel Government Solutions have formed a strategic relationship to provide government agencies worldwide with a joint solution for secure wireless voice, video and data networking. Revenue Momentum Nortel's enterprise customer momentum has resulted in new customers such as: -- Hong Kong Exchanges and Clearing Ltd., one of Asia's largest international stock exchanges, -- China's University of Petroleum to improve communications and ensure easy online access to advanced learning resources for 40,000 students, -- Israel's Migdal Insurance and Financial Holdings Ltd., -- Macquarie University in Australia for a network security solution from Nortel, and -- Langham Hotel Hong Kong for IP phone systems. The Bahamas Telecommunications Company Ltd., the primary telecom operator in the Bahamas will deploy network enhancements to extend the availability of next-generation, voice, data and multimedia services with Nortel GSM/GPRS wireless technology. The GSM/GPRS solution from Nortel will enable BTC to achieve operational efficiencies through reduced network complexity and operating expenses as well as the availability to introduce new services quickly. Nortel's Global Services will provide full lifecycle services for the Rolls-Royce telephone network under a seven-year management services agreement. Rolls-Royce will transform its entire telephone network into a single, advance network providing VoIP services based on Nortel solutions including the Nortel Communication Server 1000 and Nortel CallPilot for unified voice, fax and e-mail accessible from any location, and Nortel mobility services. Nortel Global Services will also provide network design, integration, management and maintenance services to Suddenlink Communications, one of the 10 largest cable operators in the United States. Suddenlink will provide VoIP-based telephony services based on Nortel PacketCable- qualified Communications Server 2000-Compact as the exclusive softswitch on their Suddenlink backbone. Recent momentum in Nortel's Government Solutions business includes selection by the U.S. Department of Homeland Security for program management, acquisition and administrative services to the U.S. Citizenship and immigration Service, and a contract for systems engineering and software development for ground systems with the U.S. National Oceanic and Atmospheric Administration. Russia's alternative telecommunications service provider Pride has launched 'triple play' voice, video and multimedia services with a newly deployed Metro Ethernet network from Nortel. The solution is based on Nortel's Metro Ethernet portfolio and enables Pride to make available services such as IPTV with video on demand; VoIP; and high-speed Internet access. Leading Next-Generation Solutions Nortel has been selected to supply Verizon Wireless with one of the industry's most advanced CDMA 1xEV-DO Revision A technology beginning in the third quarter of 2006. This upgrade will provide data speeds significantly faster than current capabilities and meet customer demand for more high-bandwidth, real-time wireless services such as VoIP, video telephony and advanced multimedia applications. KTF, one of South Korea's leading cellular providers, has launched a next-generation ultra high speed 3.5G wireless network in Seoul and cities across South Korea using wireless broadband technology from LG-Nortel. The network supports advanced handset capabilities including high-definition video, video chatting, messaging and remote monitoring. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. * * * As reported in the Troubled Company Reporter on July 10, 2006, Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. As reported in the Troubled Company Reporter on June 20, 2006, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed US$2 billion senior note issue; downgraded the US$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed $2 billion notes. S&P said the outlook is stable. YUKOS OIL: Russian Prosecutors Begin Bankruptcy Fraud Probe ----------------------------------------------------------- The Russian Prosecutor General's Office is investigating a possible fraud stemming from the bankruptcy proceedings of OAO Yukos Oil Co., the Itar-Tass news agency says. The Moscow Arbitration Court declared what was once Russia's largest oil producer bankrupt on Aug. 1, upholding creditors' vote to liquidate the company. According to the Jurist, Russian prosecutors have accused former Yukos officials of embezzling money by securing a US$4.5 billion loan from Yukos Capital SARL, a Luxembourg-based unit and major creditor for Yukos, through legal entities affiliated with the company. Investigators alleged that the ex-Yukos officials masterminded a plan to sell crude oil through trading companies Fargoil and Ratibor under their control, acting both as fictitious owners and buyers, RIA Novosti relates. Prosecutors told the Russian news agency that "proceeds yielded from the scheme through affiliated entities were then offered as loans to Yukos and its subsidiaries." Authorities are now seizing related documents from the offices of Yukos, Yuganskneftegaz, Samarneftegaz, Tomskneft, Yukos Vostok Trade, and Energotrade, MosNews.com reveals. 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. =========== R U S S I A =========== AGRO-INVEST: Court Names S. Lebed as Insolvency Manager ------------------------------------------------------- The Arbitration Court of Rostov Region appointed Mr. S. Lebed as Insolvency Manager for CJSC Agro-Invest. He can be reached at: S. Lebed Post User Box 981 344029 Rostov-na-Donu Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A53-2004/2006-S2-7. The Arbitration Court of Rostov Region is located at: Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: CJSC Agro-Invest 40-letiya Pobedy Pr. 53-e 344072 Rostov-na-Donu Russia AGRO-SERVICE: Court Names N. Mikhnev as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Stavropol Region appointed Mr. N. Mikhnev as Insolvency Manager for LLC Agro-Service (TIN 2627018480). He can be reached as: N. Mikhnev Sotsialisticheskaya Str. 18/3 Stavropol Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A63-3179/06-S5. The Arbitration Court of Stavropol Region is located at: Mira Str. 4586 Stavropol Region Russia The Debtor can be reached at: LLC Agro-Service Sotsialisticheskaya Str. 18/3 Stavropol Region Russia ALROSA CO: Improved Finances Spur S&P to Raise Rating to BB- ------------------------------------------------------------ Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian diamond mining company ALROSA Co. Ltd. to 'BB-' from 'B+', following the release of 2005 results confirming positive trends in the company's operations and financials. The outlook is positive. At the same time, the 'B' short-term corporate credit rating was affirmed. "The upgrade reflects Alrosa's improving free operating cash flows in 2005 and our expectation that this trend will continue in the coming years," said Standard & Poor's credit analyst Elena Anankina. After several years of posting significantly negative free operating cash flows (FOCF), the company reported broadly neutral FOCF in 2005 thanks to limiting working capital outlays, gradually stabilizing profits, and investments. On the back of recent capital expenditures, stabilized production volumes since 2004, and favorable conditions in the diamond industry, Alrosa's 2005 EBITDA increased by 5% to RUR33.6 billion (US$1.2 billion; 32% margin), EBITDA interest coverage was a healthy 6x, and funds from operations to adjusted debt was 32%. In addition, the company's successful diversification of its export routes is helping it to capture higher margins in sorting and valuation and mitigate the impact of the European Commission's ruling prohibiting Alrosa sales to South Africa- based mining company De Beers after 2008. Debt continued to increase, however. At Dec. 31, 2005, Alrosa's adjusted debt was RUR65.0 billion, including RUR50.7 billion of on-balance sheet debt, RUR8.5 billion in asset retirement obligations, and the RUR5.9 billion postretirement deficit, compared with RUR6.2 billion of cash. "The ratings could be raised if and when the Russian government takes direct majority control of Alrosa, and if this were to bring benefits for the company's financial profile," Ms. Anankina added. The extent of an upgrade would depend on our analysis of Alrosa's prospects for shareholder support. An upgrade would also require further strengthening of the company's cash flow pattern. Rating upside would be limited if Alrosa announces investments in large noncore projects, as this would increase the company's debt. Following the shareholding change, there is a possibility that a degree of state support would need to be factored into the ratings. It is more likely, however, that the ratings will continue to be based largely on the company's stand-alone credit characteristics, as state support in Russia most often focuses on business development rather than extraordinary support in the form of tangible benefits to creditors. DALNEVOSTOCHNAYA BUILDING: A. Mikhaylovskiy to Manage Assets ------------------------------------------------------------ The Arbitration Court of Khabarovsk Region appointed Mr. A. Mikhaylovskiy as Insolvency Manager for OJSC Dalnevostochnaya Building Corporation. He can be reached as: A. Mikhaylovskiy Post User Box 43/3 680013 Khabarovsk-13 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-7750/2006. The Debtor can be reached at: OJSC Dalnevostochnaya Building Corporation Promyshlennaya Str. 12. Khabarovsk Region Russia EURO-TOBACCO: Court Names A. Spirkin as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Kaliningrad Region appointed Mr. A. Spirkin as Insolvency Manager for CJSC Euro-Tobacco. He can be reached at: A. Spirkin Post User Box 634 236010 Kaliningrad Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A21-1323/2006. The Debtor can be reached at: CJSC Euro-Tobacco Pogranichnaya Str. 27 Mamonovo Kaliningrad Region Russia KHLEBNIKOVSKOYE: Court Starts Bankruptcy Supervision ---------------------------------------------------- The Arbitration Court of Kaliningrad Region has commenced bankruptcy supervision procedure on CJSC Khlebnikovskoye. The case is docketed under Case No. A21-1478/2006. The Temporary Insolvency Manager is: S. Sergeychuk Room 209 Donskogo Str. 7 Kaliningrad Region Russia The Debtor can be reached at: CJSC Khlebnikovskoye Room 209 Donskogo Str. 7 Kaliningrad Region Russia KOMSOMOLSKIY WOODWORKING 2: V. Shvedko to Manage Assets ------------------------------------------------------- The Arbitration Court of Khabarovsk Region appointed Mr. V. Shvedko as Insolvency Manager for OJSC Komsomolskiy Woodworking Combine 2 (TIN 2727020130). He can be reached at: V. Shvedko Office 106 Frunze Str. 126 680028 Khabarovsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A73-13760/2005-38. The Debtor can be reached at: OJSC Komsomolskiy Woodworking Combine 2 Lesozavodskaya Str. 4 Komsomolsk-na-Amure Russia LAZOVSKIY SPIRTOVIK: Court Starts Bankruptcy Supervision -------------------------------------------------------- The Arbitration Court of Khabarovsk Region has commenced bankruptcy supervision procedure on OJSC Lazovskiy Spirtovik (TIN 2713013101). The case is docketed under Case No. A73-3779/2006-9. The Temporary Insolvency Manager is: V. Biryukov Office 104 Dovatora Str. 24a 680000 Khabarovsk Region Russia The Debtor can be reached at: OJSC Lazovskiy Spirtovik Stepnoy Per. 1 Khor Lazo Region 682920 Khabarovsk Region Russia PERVOMAYSKIY WOOD-PROM-KHOZ: I. Gorn to Manage Assets ----------------------------------------------------- The Arbitration Court of Tomsk Region appointed Mr. I. Gorn as Insolvency Manager for CJSC Pervomayskiy Wood-Prom-Khoz (TIN 7012004161). He can be reached at: I. Gorn Post User Box 2513 634045 Tomsk-45 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-9740/05. The Debtor can be reached at: CJSC Pervomayskiy Wood-Prom-Khoz Uzen Pervomayskiy Region 636984 Tomsk Region Russia SANITAR: Kursk Court Starts Bankruptcy Supervision -------------------------------------------------- The Arbitration Court of Kursk Region has commenced bankruptcy supervision procedure on OJSC Sanitar. The case is docketed under Case No. A35-11786/05 G. The Temporary Insolvency Manager is: A. Zapryagaev Post User Box 36 Voroshilova Str. 35 394055 Voronezh 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: OJSC Sanitar Uslanka Oboyanskiy Region 306235 Kursk Region Russia SIBERIA: Krasnoyarsk Court Starts Bankruptcy Supervision -------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region has commenced bankruptcy supervision procedure on CJSC Siberia. The case is docketed under Case No. A33-31125/2005. The Temporary Insolvency Manager is: I. Morlang Lenina Str. 62a-10 634045 Krasnoyarsk Region Russia The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC Siberia: Novouspenka Abanskiy Region Krasnoyarsk Region Russia SUZEMSKIY CHEESE: V. Golovchenko to Manage Insolvency Assets ------------------------------------------------------------ The Arbitration Court of Bryansk Region appointed Mr. V. Golovchenko as Insolvency Manager for LLC Suzemskiy Cheese Factory. He can be reached at: V. Golovchenko Post User Box 14 394038 Voronezh Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A09-2983/06-26. The Arbitration Court of Bryansk Region is located at: Room 602 Trudovoy Per. 5 Bryansk Region Russia The Debtor can be reached at: LLC Suzemskiy Cheese Factory Bryanskaya Str. 14 Suzemka Bryansk Region Russia SYRSKOYE-SEL-KHOZ-KHIMIYA: Court Starts Bankruptcy Supervision -------------------------------------------------------------- The Arbitration Court of Lipetsk Region has commenced bankruptcy supervision procedure on OJSC Syrskoye-Sel-Khoz-Khimiya. The case was docketed under Case No. A36-4658/2005. The Temporary Insolvency Manager is: L. Bogomazova Post User Box 1252 398059 Lipetsk Region Russia Tel: 8(4742) 43-58-71 The Arbitration Court of Lipetsk Region is located at: Skorokhodova Str. 2. 398019 Lipetsk Region Russia The Debtor can be reached at: OJSC Syrskoye-Sel-Khoz-Khimiya Syrskoye Lipetsk Region Russia VERKHNE-KHAVA-AGRO-PROM-KHIMIYA: N. Vysotskaya to Manage Assets --------------------------------------------------------------- The Arbitration Court of Voronezh Region appointed Ms. N. Vysotskaya as Insolvency Manager for OJSC Verkhne-Khava-Agro- Prom-Khimiya. She can be reached at: N. Vysotskaya Room 12 Lizyukova Str. 66-a Voronezh Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A14-29209-2005-193/16b. The Debtor can be reached at: OJSC Verkhne-Khava-Agro-Prom-Khimiya Kalinina Str. 1 V.Khava Verkhnekhavskiy Region Voronezh Region Russia YUKOS OIL: Russian Prosecutors Begin Bankruptcy Fraud Probe ----------------------------------------------------------- The Russian Prosecutor General's Office is investigating a possible fraud stemming from the bankruptcy proceedings of OAO Yukos Oil Co., the Itar-Tass news agency says. The Moscow Arbitration Court declared what was once Russia's largest oil producer bankrupt on Aug. 1, upholding creditors' vote to liquidate the company. According to the Jurist, Russian prosecutors have accused former Yukos officials of embezzling money by securing a US$4.5 billion loan from Yukos Capital SARL, a Luxembourg-based unit and major creditor for Yukos, through legal entities affiliated with the company. Investigators alleged that the ex-Yukos officials masterminded a plan to sell crude oil through trading companies Fargoil and Ratibor under their control, acting both as fictitious owners and buyers, RIA Novosti relates. Prosecutors told the Russian news agency that "proceeds yielded from the scheme through affiliated entities were then offered as loans to Yukos and its subsidiaries." Authorities are now seizing related documents from the offices of Yukos, Yuganskneftegaz, Samarneftegaz, Tomskneft, Yukos Vostok Trade, and Energotrade, MosNews.com reveals. 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. ZOLOTOE RUNO: Amur Court Starts Bankruptcy Supervision ------------------------------------------------------ The Arbitration Court of Amur Region has commenced bankruptcy supervision procedure on CJSC Zolotoe Runo. The case was docketed under Case No. A04-1327/06-10/102 B. The Temporary Insolvency Manager is: O. Fillipova Room 205 Pervomayskaya Str. 1 Blagoveshensk Amur Region Russia The Debtor can be reached at: CJSC Zolotoe Runo Room 217 Shevchenko Str. 6 Blagoveshensk Amur Region Russia ============= U K R A I N E ============= BAHTINOK: Court Names District Tax Agency as Liquidator ------------------------------------------------------- The Economic Court of Vinnitsya Region appointed for LLC Bahtinok (code EDRPOU 30805335). The Liquidator can be reached at: Bar' District State Tax Inspection Karl Marks Str. 5/2 Bar 23000 Vinnitsya Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on May 25. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: LLC Bahtinok Bahtinok Murovanokurilovetskij District 23412 Vinnitsya Region Ukraine DNIPROTEHPROMBIZNES: Court Names Igor Morozov as Liquidator ----------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Igor Morozov as Liquidator/Insolvency Manager for LLC Dniprotehprombiznes (code EDRPOU 32882466). He can be reached at: Igor Morozov a/b 2734 49044 Dnipropetrovsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 29. The case is docketed under Case No. B 24/157-06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Dniprotehprombiznes Stalingradu Str. 149 Geroiv 49008 Dnipropetrovsk Region Ukraine FORTUNA: Court Names Bankruptcy Agency to Liquidate Assets ---------------------------------------------------------- The Economic Court of Vinnitsya Region appointed for Vinnitsya Regional Sector of Bankruptcy Questions as Liquidator LLC Fortuna (code EDRPOU 03730710). The Liquidator can be reached at: Vinnitsya Regional Sector of Bankruptcy Questions Hmelnitske Shose Str. 7 21036 Vinnitsya Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on May 12. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: LLC Fortuna Stepanki Murovanokurilovetskij District 23444 Vinnitsya Region Ukraine HERSON' MEAT: Herson Court Names S. Milovskij as Liquidator ----------------------------------------------------------- The Economic Court of Herson Region appointed Mr. S. Milovskij as Liquidator/Insolvency Manager for OJSC Herson' Meat Combine (code EDRPOU 00444205). The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 20. The case is docketed under Case No. 5/16-B. The Economic Court of Herson Region is located at: Gorkij Str. 18 73000 Herson Region Ukraine The Debtor can be reached at: OJSC Herson' Meat Combine Naftovikiv Str. 10 73000 Herson Region Ukraine INFARMA-WEST: Kyiv Court Names I. Gusar as Insolvency Manager ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. I. Gusar as Liquidator/Insolvency Manager for CJSC Infarma-West (code EDRPOU 22954970). He can be reached at: I. Gusar a/b 29 01030 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 7. The case is docketed under Case No. 15/35-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: CJSC Infarma-West Yaroslaviv Val Str. 21 Kyiv Region Ukraine KARAT: Lugansk Court Starts Bankruptcy Supervision -------------------------------------------------- The Economic Court of Lugansk Region commenced bankruptcy supervision procedure on LLC Karat (code EDRPOU 24203149) on May 19. The case is docketed under Case No. 22/35 b. The Temporary Insolvency Manager is: Oleksandr Klinchev Lermontov Str. 1-g/301 91022 Lugansk Region Ukraine The Economic Court of Lugansk Region is located at: Geroiv VVV Square 3a 91000 Lugansk Region Ukraine The Debtor can be reached at: LLC Karat Gagarin Str. 44 N. Vilhova Stanichno-Luganskij District Lugansk Region Ukraine MAGIRUS: Court Names District Tax Agency to Liquidate Assets ------------------------------------------------------------ The Economic Court of Kyiv Region appointed State Tax Inspection of Golosiyivskij District of Kyiv Region as Liquidator for LLC MAGIRUS (code EDRPOU 31722540). The Court commenced bankruptcy proceedings against the company after finding it insolvent on May 23. The case is docketed under Case No. 23/207-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 Magirus Zhovtnya Avenue 120 40-richya Kyiv Region Ukraine METROMEDIA INTERNATIONAL: Delays Filing of First Quarter Results ---------------------------------------------------------------- Metromedia International Group, Inc. (trading as: PINK SHEETS: MTRM, Common Stock and MTRMP, Preferred Stock), the owner of interests in communications businesses in the country of Georgia, is unable to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2006. The filing of the Company's: -- Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2004; -- its Quarterly Report on Form 10-Q for the fiscal quarters ended March 31, June 30, and Sept. 30, 2005; -- its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2005; -- its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2006, -- along with the Company's completion of its work effort for compliance with Section 404, "Management Assessment of Internal Controls" of the Sarbanes-Oxley Act of 2002 with respect to the filing of its 2005 Form 10-K, are a prerequisite for the filing of the 2006 second quarter Form 10-Q. At present, the Company cannot predict with confidence when it will file either the 2004 Form 10-K, the 2005 Quarterly Reports, the 2005 Form 10-K, or the 2006 Q1 Form 10-Q and thus its 2006 Q2 Form 10-Q. About Metromedia International Headquartered in Charlotte, North Carolina, Metromedia International Group -- http://www.metromedia-group.com/-- through its subsidiary, Metromedia International Telecommunications, owns interests in telecom and cable TV operations in Russia, Georgia, and elsewhere in Eastern Europe. Since the first quarter of 2003, the Company has focused its principal attentions on the continued development of its core telephony businesses, and has substantially completed a program of gradual divestiture of its non-core cable television and radio broadcast businesses. The Company's core businesses includes Magticom, Ltd., the leading mobile telephony operator in Tbilisi, Georgia, and Telecom Georgia, a well-positioned Georgian long distance telephony operator. * * * Moody's Investors Service has placed Metromedia's subordinated debt rating at B3 and junior subordinated debt rating at B2. PODILSKIJ KRAJ: Court Names Bankruptcy Agency as Liquidator ----------------------------------------------------------- The Economic Court of Vinnitsya Region appointed Vinnitsya Regional Sector of Bankruptcy Questions as Liquidator for LLC Podilskij Kraj (code EDRPOU 03728268). The Liquidator can be reached at: Vinnitsya Regional Sector of Bankruptcy Questions Hmelnitske Shose Str. 7 21036 Vinnitsya Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on May 12. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: LLC Podilskij Kraj Kotuzhani Murovanokurilovetskij District 23440 Vinnitsya Region Ukraine PUBLIC TRANSPORT: Lviv Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Economic Court of Lviv Region commenced bankruptcy supervision procedure on CJSC Public Transport Plant (code EDRPOU 32483661). The case is docketed under Case No. 6/77-5/100. The Temporary Insolvency Manager is: Igor Bolyak Strijska Str. 45 Lviv Region Ukraine The Economic Court of Lviv Region is located at: Lichakivska Str. 81 79010 Lviv Region Ukraine The Debtor can be reached at: CJSC Public Transport Plant Strijska Str. 45 Lviv Region Ukraine REKA: Kyiv Court Names District Tax Agency as Liquidator -------------------------------------------------------- The Economic Court of Kyiv Region appointed State Tax Inspection of Golosiyivskij District of Kyiv Region as Liquidator for LLC Reka (code EDRPOU 30303632). The Court commenced bankruptcy proceedings against the company after finding it insolvent on May 23. The case is docketed under Case No. 23/206-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 Reka Zhovtnya Avenue 100/2 40-richya 03127 Kyiv Region Ukraine STRIJ' NOODLE: Court Names Yaroslav Onushkanich as Liquidator ------------------------------------------------------------- The Economic Court of Lviv Region appointed Yaroslav Onushkanich as Liquidator/Insolvency Manager for OJSC Strij' Noodle Factory (code EDRPOU 00376490). He can be reached at: Yaroslav Onushkanich Strijska Str. 71-b/3 79031 Lviv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 20. The case is docketed under Case No. 6/41-8/67. The Economic Court of Lviv Region is located at: Lichakivska Str. 81 79010 Lviv Region Ukraine The Debtor can be reached at: OJSC Strij' Noodle Factory Uspenska Str. 40 Strij 82400 Lviv Region Ukraine TRANS-AH: Court Names Igor Morozov as Insolvency Manager -------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Igor Morozov as Liquidator/Insolvency Manager for LLC Trans-Ah (code EDRPOU 30584974). He can be reached at: Igor Morozov a/b 2734 49044 Dnipropetrovsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 29. The case is docketed under Case No. B 24/156-06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Trans-Ah Kedrin Str. 66/72 49008 Dnipropetrovsk Region Ukraine UKRMETSOYUZ: Court Names O. Tomashevskij as Liquidator ------------------------------------------------------ The Economic Court of Mikolaiv Region appointed Mr. O. Tomashevskij as Liquidator/Insolvency Manager for LLC Ukrmetsoyuz (code EDRPOU 32755886). He can be reached at: O. Tomashevskij Robocha Str. 7 54029 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 20. The case is docketed under Case No. 5/260/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: LLC Ukrmetsoyuz Nikolska Str. 80 Mikolaiv Region Ukraine UNIVERS: Court Names Olga Shikilo as Insolvency Manager ------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Olga Shikilo as Liquidator/Insolvency Manager for LLC Univers (code EDRPOU 32692596). The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 13. The case is docketed under Case No. B 24/121/06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Univers Nahimov Str. 22B Krivij Rig Dnipropetrovsk Region Ukraine UROZHAJ: Court Names Oleksij Gula as Insolvency Manager ------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Oleksij Gula as Liquidator/Insolvency Manager for LLC Agrofirm Urozhaj (code EDRPOU 30755968). He can be reached at: Oleksij Gula Radyanska Str. 43/134 Novomoskovsk 51200 Dnipropetrovsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 15. The case is docketed under Case No. B 15/92/06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Agrofirm Urozhaj Centralna Str. 1 Magdalinivskij District Polivanivka 51150 Dnipropetrovsk Region Ukraine VOSHOD: Sumi Court Names Grigorij Ponomarenko as Liquidator ----------------------------------------------------------- The Economic Court of Sumi Region appointed Grigorij Ponomarenko as Liquidator/Insolvency Manager for LLC Voshod (code EDRPOU 30902967). He can be reached at: Grigorij Ponomarenko Office 5 Privokzalna Square 9 40011 Sumi Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 8. The case is docketed under Case No. 12/135-05. The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: LLC Voshod Mitrofanov Str. Pozhnya V. Pisarivskij District Sumi Region Ukraine ZAPORIZHYA' BREAD: Court Starts Bankruptcy Supervision ------------------------------------------------------ The Economic Court of Zaporizhya Region commenced bankruptcy supervision procedure on OJSC Zaporizhya' Bread Products Combine (code EDRPOU 00951586) on June 6. The case is docketed under Case No. 16/35/06. The Temporary Insolvency Manager is: P. Chulakov a/b 7683 69050 Zaporizhya Region Ukraine The Debtor can be reached at: OJSC Zaporizhya' Bread Products Combine Komsomolska Str. 30 69063 Zaporizhya Region Ukraine =========================== U N I T E D K I N G D O M =========================== 4 FRONT: Appoints J. N. Bleazard as Liquidator ---------------------------------------------- J. N. Bleazard of XL Business Solutions Limited was appointed Liquidator of 4 Front Management Company Limited at an extraordinary general meeting on May 15. The company can be reached at: 4 Front Management Company Limited 28 Kirkgate Huddersfield HD1 1QQ United Kingdom Tel: 01484 421 950 ABSOLUTE RECRUITMENT: Hires Liquidator from Begbies Traynor ----------------------------------------------------------- Louise Donna Baxter of Begbies Traynor was appointed Liquidator of Absolute Recruitment (Surrey) Limited at an extraordinary general meeting on May 12. The company can be reached at: Absolute Recruitment (Surrey) Limited 92 The Street Puttenham Guildford Surrey GU3 1AU United Kingdom Tel: 020 7404 6292 ACE ENGINEERING: Brings In Baker Tilly as Joint Administrators -------------------------------------------------------------- Adrian David Allen and Philip Edward Pierce of Baker Tilly were appointed joint administrators of Ace Engineering & Fencing (U.K.) Limited (Company Number 2897958) on July 6. Headquartered in Birmingham, United Kingdom, Baker Tilly -- http://www.bakertilly.co.uk/-- is a leading independent firm of chartered accountants and business advisers in the United Kingdom. The firm's annual fee income is over GBP168 million and is part of a global network, which has 122 member firms in 85 countries as an independent member of Baker Tilly International. Headquartered in Pontefract, United Kingdom Ace Engineering & Fencing (U.K.) Limited is engaged in general mechanical engineering. ALTERNA LIMITED: Taps M. S. E. Solomons to Liquidate Assets ----------------------------------------------------------- M. S. E. Solomons of SPW Poppleton & Appleby was appointed Liquidator of Alterna Limited on May 11. The company can be reached at: Alterna Limited Suite 9 81 Old Church Road London E4 6ST United Kingdom Tel: 020 8529 0222 Fax: 020 8529 4222 ANDREWS SKIPS: Louise Donna Baxter Leads Liquidation Procedure -------------------------------------------------------------- Louise Donna Baxter of Begbies Traynor was appointed Liquidator of Andrews Skips Limited at an extraordinary general meeting on May 11. The company can be reached at: Andrews Skips Limited Burrow Farm Brentwood Road Bulphan Upminster Essex RM143TL United Kingdom Tel: 01375 892 070 AOL LLC: Eyes 5,000 Job Cuts Over Next Six Months, Report Says -------------------------------------------------------------- AOL LLC is expected to reduce more than a quarter of its current 19,000 work force as it struggles to transform itself into a major broadband provider, Antony Savvas writes for ComputerWeekly.com. According to the report, around 5,000 employees will be affected by the planned job cuts that will hit AOL operations worldwide, including a large number of its European operations, over the next six months. The redundancies were announced during a Web cast last week but did not specify what positions would be eliminated, Megan Kuhn of Leesburg Today relates. Mr. Savvas says AOL is expected to sell its European internet access business as it concentrates more on offering free services to help generate greater advertising revenues to its web portal business. According to Ms. Kuhn, AOL and France- based Neuf Cegetel are negotiating the sale of AOL's French Access Services, which includes its narrowband and broadband Internet Access operations and a customer service in Marseille. The transaction is expected to close by the end of the year, the paper relates. Headquartered in Dulles, Virginia, AOL LLC (fka America Online, Inc.) is an online service provider, bulletin board system, and media company operated by Time Warner. In June, the company launched portals in the UK, France and Germany. AOL also offers access and Web services in Canada. In 2000, AOL and Time Warner announced plans to merge, in a deal approved by the Federal Trade Commission on Jan. 11, 2001. Since its merger with Time Warner, the value of AOL has dropped from its US$200 billion high and it has seen similar losses among its subscription rate. BLACKFIELD PROPERTY: Names Arif Anwar Liquidator ------------------------------------------------ Arif Anwar of Rifsons was named Liquidator of Blackfield Property Services Limited at an extraordinary general meeting on May 11. The company can be reached at: Blackfield Property Services Limited Leywood House 47 Woodside Road Amersham Buckinghamshire HP6 6AA United Kingdom Tel: 01494 728 210 Fax: 01494 431 175 BOSWORTH TOOLS: Brings In Liquidator from Bottomley & Co. --------------------------------------------------------- David Halstead Bottomley of Bottomley & Co. was appointed Liquidator of Bosworth Tools (Cutters) Limited on May 12 by resolutions of members and creditors. The company can be reached at: Bosworth Tools (Cutters) Limited Workshops Sketchley Meadows Hinckley Leicestershire LE103ES United Kingdom Tel: 01455 250 066 BREMADENT LIMITED: Creditors Confirm Liquidator's Appointment ------------------------------------------------------------- Creditors of Bremadent Limited confirmed the appointment of Stephen Franklin of Panos Eliades, Franklin & Co. as Liquidator on May 10. The company can be reached at: Bremadent Limited 25a St. James's Street London E17 7PJ United Kingdom Tel: 020 8520 8528 Fax: 020 8520 2751 Web: http://www.bremadent.co.uk/ BURALL FLORAPRINT: Appoints Grant Thornton as Administrators ------------------------------------------------------------ Andrew David Conquest and Ian Stewart Carr of Grant Thornton U.K. LLP were appointed joint administrators of Burall Floraprint Limited (Company Number 00987629) on July 6. 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. Burall Floraprint Limited can be reached at: Wisbech Cambridgeshire PE13 2TH United Kingdom Tel: 0870 728 7222 Fax: 0870 728 7277 CARDINAL TAP: Names Gagen Dulari Sharma as Administrator -------------------------------------------------------- Gagen Dulari Sharma of Sharma & Co. was named administrator of Cardinal Tap & Die Ltd. (Company Number 04331821) on July 4. The administrator can be reached at: Sharma & Co. 50 Newhall Street Birmingham West Midlands B3 3QE United Kingdom Tel: 0121 248 5007 Fax: 0121 248 5010 E-mail: gagen@sharmaandco.com Headquartered in Sleaford, United Kingdom, Cardinal Tap & Die Ltd. manufactures metalworking tools. CORRIE ENTERPRISE: Creditors Agree to Voluntary Liquidation ----------------------------------------------------------- Creditors of Corrie Enterprise Limited agreed on May 15 to place the company into voluntary liquidation. A. J. Clark of Carter Clark was appointed Liquidator. The company can be reached at: Corrie Enterprise Solutions Limited 160 Bedford Hill London SW129HW United Kingdom Tel: 020 8675 4488 Fax: 020 8675 4499 D.C.S. COMPUTERS: Joint Liquidators Take Over Operations -------------------------------------------------------- Neil Henry and Michael Simister of Lines Henry were appointed Joint Liquidators of D.C.S. Computers Limited on May 10. The company can be reached at: D.C.S. Computers Limited 51 Walton Road Stockton Heath Warrington WA4 6NW United Kingdom Tel: 01925 266 612 Fax: 01925 269 275 D.E.S. ENVIRONMENTAL: Nominates Liquidator from Marks Bloom ----------------------------------------------------------- Philip Weinberg of Marks Bloom was nominated Liquidator of D.E.S. Environmental Systems Limited on May 15. The company can be reached at: D.E.S. Environmental Systems Limited 4 Camphill indstrial Estate West Byfleet Surrey KT146EW United Kingdom Tel: 01932 356 101 Fax: 01932 356 088 INCO LTD: Teck Cominco Won't Negotiate on Merger Plans Anymore -------------------------------------------------------------- Teck Cominco Limited is not in, and has no plans to enter into, discussions or negotiations with Inco Limited regarding Teck Cominco's offer to acquire all of the outstanding shares of Inco. As reported in the Troubled Company Reporter on Aug. 1, Teck Cominco revised its cash and share offer to acquire all the outstanding shares of Inco. Under the revised offer, Inco shareholders will receive, subject to proration, CDN$82.50 per Inco share in cash, or 1.1293 Teck Cominco Class B subordinate voting shares plus CDN$0.05 per Inco share. The revised offer represents CDN$40 in cash and 0.5821 of a Teck Cominco Class B subordinate voting share per Inco share at full proration. Teck Cominco will pay up to a maximum of CDN$9.1 billion in cash and will issue up to 132.3 million Teck Cominco Class B subordinate voting shares pursuant to the revised offer. This represents an increase in the cash component of the offer of CDN$2.7 billion or 43%, and a decrease of 10.7 million shares or 7.5% in comparison to Teck Cominco's original offer. Teck Cominco will fund the cash portion of the offer out of its CDN$3.6 billion of cash on hand and a committed term loan facility. Teck Cominco President and Chief Executive Officer, Don Lindsay, said: "We believe that our offer for Inco is clearly superior to the highly conditional Phelps Dodge offer. The Teck Cominco offer includes almost twice as much cash as the Phelps Dodge offer and the Phelps Dodge offer is also subject to regulatory approval and Phelps Dodge shareholder approval." The Teck Cominco offer expires at midnight (Toronto time) on Aug. 16, 2006. About Teck Cominco Headquartered in Vancouver, Canada, Teck Cominco Limited (TSX: TCK.A; TCK.B; NYSE: TCK) -- http://www.teckcominco.com/-- is a diversified mining company. The Company focuses in the production of zinc and metallurgical coal and also produces copper, gold and specialty metals. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. GENEMEDIX PLC: Enters Into Exclusive Restructuring Arrangement -------------------------------------------------------------- GeneMedix plc entered into a voluntary exclusive arrangement with a major company in relation to its proposed restructuring. In connection with the exclusivity arrangement, a bridging loan will be paid in installments to GeneMedix, the first part of which has already been received. The Company has also received a second interim payment out of the total GBP1.6 million it expects to receive on the sale of its Chinese facility and is looking to complete the sale over the coming months, once approvals have finally been obtained from the Chinese authorities. These payments have allowed the Company to continue operating at full pace with its EPO program, and to make progress on the development of its G-CSF. As reported in TCR-Europe on Oct. 10, 2005, Management and the Directors continue to believe strongly that the Company has an attractive and valuable program for EPO, a high quality manufacturing and development facility in Ireland; exciting opportunities with its G-CSF program and further commercial potential with its Monomeric Insulin analogues and interferon- alfa. About the Company Headquartered in the U.K., GeneMedix -- http://www.genedmedix.com/-- is a globally focused biopharmaceutical company, specializing in the development and manufacture of cost effective treatments for some of the world's most serious diseases. At Feb. 28, 2006, the company's balanced sheet showed a GPP331,791 stockholder's deficit, compared with a stockholder's equity of GBP2,735,205 at Feb. 28, 2005. The company also experienced strained liquidity for the period with GBP1.68 million of current assets available to pay GBP2.62 million of debts within the year. MILLFIELD SURELINE: Brings In PwC as Joint Administrators --------------------------------------------------------- Michael John Andrew Jervis and Dan Yoram Schwarzmann of PricewaterhouseCoopers LLP were appointed joint administrators of Millfield Sureline Limited (Company Number 04563448) on July 10. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides, among others, auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. Headquartered in Croydon, United Kingdom, Millfield Sureline Limited are independent financial advisors. N H NORTH: Names Joint Administrators from Deloitte & Touche ------------------------------------------------------------ Dominic Lee Zoong and Christopher James Farringdon of Deloitte & Touche LLP were appointed joint administrators of N H North Limited (Company Number 01953130) on July 10. Headquartered in London, Deloitte & Touche LLP -- http://www.deloitte.com/-- is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. It provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. Headquartered in Basford, United Kingdom, N H North Limited wholesales and retails computers. PARK LANE: Appoints Joint Administrators from Parkin S Booth ------------------------------------------------------------ Robert M. Rutherford and Jonathan R. Booth of Parkin S. Booth & Co. were appointed joint administrators of Park Lane Bakery Limited (Company Number 5158005) on July 10. Parkin S. Booth & Co http://www.parkinsbooth.co.uk/-- independent Accountants Licensed Insolvency Practitioners is a medium sized firm with particular expertise in its own field. Dealing entirely with insolvency matters, we do not, for example, undertake any audit or taxation work. Park Lane Bakery Limited can be reached at: Abbots Quay Monks Ferry Birkenhead Merseyside CH41 5LH United Kingdom RSW LIMITED: Taps Leonard Curtis to Administer Assets ----------------------------------------------------- N. A. Bennett and A. Poxon of Leonard Curtis were appointed joint administrators of RSW Limited (formerly Extreme Shops (UK) Limited) (Company Number 5194607) on July 6. DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. Headquartered in Warwick, United Kingdom, RSW Limited retails textiles and clothing. SDL RECRUITMENT: Begins Liquidation Procedure --------------------------------------------- SDL Recruitment Limited is voluntarily liquidating its assets after creditors decided on May 10 to wind up the company. Vincent A. Simmons was appointed Liquidator. The company can be reached at: SDL Recruitment Limited 22 Cairo Street Warrington WA1 1EH Tel: 01925 573 222 Fax: 01925 576 916 SEI REALISATIONS: Names P. R. Boyle as Administrator ---------------------------------------------------- P. R. Boyle of Harrisons was appointed administrator of SEI Realisations 2006 Limited (formerly Sara Eden Introductions) (Company Number 03076850) on June 30. Harrisons -- http://www.harrisons.uk.com/-- provide advice and solutions to professional advisors who found their clients experiencing financial difficulties. Originally trading from offices in Reading and has added London, Manchester, Bristol and Derby and has associate offices in Grantham and Stockton on Tees. Headquartered in London and Windsor, United Kingdom, Sara Eden Introductions -- http://sara-eden.co.uk/-- is an introduction and dating agency. SELECT ADVANCE: Appoints Joint Liquidators to Wind Up Business -------------------------------------------------------------- David Hill and John Davies of Begbies Traynor were appointed Joint Liquidators of Select Advance Seating Limited on May 12. The company can be reached at: Select Advance Seating Limited Unit 9 Sirhowy Industrial Estate Sirhowy Tredegar Gwent NP22 4QZ Tel: 01495 718660 SKYEPHARMA PLC: PricewaterhouseCoopers Raise Going Concern Doubt ---------------------------------------------------------------- PricewaterhouseCoopers LLP in London, disclosed that there is uncertainty as to when Skyepharma PLC's certain strategic initiatives may be concluded and their effect on the Company's working capital requirements. PwC says that this raises substantial doubt on the Company's ability to continue as a going concern. PwC disclosed this explanatory paragraph after auditing the Company's financial statement for the year ended Dec. 31, 2005. The Company's management reported that its working capital requirements continue to be affected by the timing and receipt of milestone payments and payments received on the signing of new contracts. The Company's future cash flows will also be impacted by the change in strategy, principally its stated aim of moving to sustainable profitability in the near term and its refocus to concentrate on oral and pulmonary products. The Company relates that its near term working capital requirements are uncertain and sensitive to the timing of a number of initiatives required to provide the financial flexibility to implement the new strategy. These initiatives include the: * licensing of Flutiform(TM) in Europe, * divestment of the Company's injectable business interests, which is expected to require shareholder approval, or * U.S. licensing for DepoBupivacaine. In 2005, SkyePharma reported a full year net loss of GBP50.9 million compared to a 2004 full year net loss of GBP18.6 million. As a result of these losses, the Company's consolidated net assets at Dec. 31, 2005 declined to GBP31.9 million, compared with GBP36.5 million at December 31, 2004. A full-text copy of the Company's Annual Report is available for free at http://ResearchArchives.com/t/s?e98 Headquartered in London, England, SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world-leading drug delivery technologies that provide easier-to-use and more effective drug formulations. There are now twelve approved products incorporating SkyePharma's technologies in the areas of oral, injectable, inhaled and topical delivery, supported by advanced solubilization capabilities. TRANS-AM CONTRACTING: Taps B & C Associates as Administrators ------------------------------------------------------------- Filippa Connor and Jeffrey Mark Brenner of B & C Associates were appointed joint administrators of Trans-Am Contracting Limited (Company Number 02867964) on July 6. The joint administrators can be reached at: B & C Associates Trafalgar House Grenville Place Mill Hill London NW7 3SA United Kingdom Tel: 0208 906 7730 Fax: 0208 906 7731 Headquartered in London, United Kingdom, Trans-Am Contracting Limited is engaged in stone masonry services. W GREEN: Taps Mark S. Goldstein to Administer Assets ---------------------------------------------------- Mark S. Goldstein of DCM Insolvency Service Limited was appointed administrator of W Green Son & Waite Limited (Company Number 00581467) on July 6. The administrator can be reached at: DCM Insolvency Service Limited Kingswood Court 1 Hemlock Close Kingswood Surrey KT20 6QW United Kingdom Tel: 01737 830763 Fax: 01737 83081 E-mail: markmga@aol.com Headquartered in Kent, United Kingdom, W Green Son & Waite Limited manufactures general machinery. WH SMITH: Fitch Withdraws Issuer Default Rating at BB- ------------------------------------------------------ Fitch Ratings has withdrawn WH Smith PLC's Issuer Default and senior unsecured BB- and Short-term B ratings that were on Rating Watch Negative. Fitch will no longer provide rating coverage of WH Smith PLC. * Moody Reports Increased EMEA CMBS Issuance in the First Half -------------------------------------------------------------- The Commercial Mortgage-Backed Securities and multi-family bond market in Europe, the Middle East and Africa grew at a healthy pace in the first half of 2006, with issuance volume rising 8.3% year-on-year to EUR18.0 billion. The increase is all the more impressive given that 2005 was a record year for CMBS issuance in EMEA, says Moody's Investors Service in its 2006 First Half Review and Second Half Outlook report on this market. For 2006 as a whole, Moody's expects issuance volume to exceed EUR50 billion. Moody's also notes that, while the number of CMBS and multi- family transactions dropped marginally to 27 in H1 2006 from 28 in H1 2005, the average size rose to EUR664 million from EUR592 million. The U.K. retained its leading position, in terms of both volume and number of transactions, accounting for EUR8.8 billion in 13 deals. "However, the most remarkable development was the sharp increase in issuance from Germany, which totaled EUR4.9 billion, the same level as was recorded in the whole of 2005," says Ifigenia Palimeri, a Moody's Vice-President. "Germany's share is anticipated to increase further in the second half of 2006, due to some large transactions that came to the market in July," she adds. The next largest jurisdictions in terms of issuance volumes were Italy with EUR1.7 billion and France with EUR880 million. Ireland, meanwhile, made its first ever CMBS transaction in H1 2006, with EUR375 million of issuance. Also notable was the strength of pan-European transactions, five of which closed in H1 2006, with Moody's anticipating a further increase in the coming months as conduit lenders expand their operations into additional countries. In terms of asset composition, retail was the dominant property type backing CMBS transactions in EMEA in H1 2006, overtaking the office sector. Three transactions involving UK retailer Sainsbury's Supermarkets Ltd. contributed to the increase, including the market's single largest deal -- the EUR1.74 billion Eddystone Finance plc transaction. "Moody's expects the CMBS market to remain extremely strong in the second half of the year, given the significant activity in July," says Kamini Pithia, a Moody's Associate Analyst and co- author of the report. "The pipeline for the next few months is also solid." Following the launch of two synthetic transactions during H1 2006, compared with none in H1 2005, the rating agency believes that traditional balance sheet lenders will continue to use such structures in the future, with a view to mitigating some of the concerns raised by non-securitization-friendly clauses in seasoned commercial loans. Overall, while a greater contribution is expected from Germany, especially from multi-family transactions, and from pan-European transactions, CMBS loan origination in the U.K. is likely to remain dominant. Moody's expects issuance volume by year-end to surpass EUR50 billion. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel Laureno, Julybien Atadero, Carmel Zamesa Paderog, and Joy Agravante, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *