/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060815.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, August 15, 2006, Vol. 7, No. 161 Headlines A U S T R I A D&J ENTERTAINMENT: Creditors' Meeting Slated for August 24 RETL: Wels Court Orders Closing of Business SENDER: Creditors' Meeting Slated for August 17 V.P.M.: Claims Registration Period Ends August 22 F R A N C E EUROTUNNEL GROUP: Paris Court Appoints Judicial Administrators G E R M A N Y ANTON OSSWALD: Claims Registration Ends September 5 ASB-REINIGUNGSGESELLSCHAFT: Claims Registration Ends September 6 B. WENGORSCH: Claims Registration Ends September 6 COSMO CONSULT: Claims Registration Ends September 8 EINKAUFSGESELLSCHAFT DEUTSCHER: Claims Filing Ends Sept. 6 IMPERIAL SPORTS: Claims Registration Ends September 15 ENAS ELEKTROTECHNIK: Claims Registration Ends September 6 KEYOWA GMBH: Claims Registration Ends September 10 MENSCH-TIER-GARTEN RITTERGUT: Claims Registration Ends Sept. 11 SIBBE ELEKTROANLAGENBAU: Claims Registration Ends September 1 TUI AG: Weak Performance Spurs Moody's to Review Low -B Ratings VISTEON CORP: Earns US$50 Million in Second Quarter 2006 I T A L Y PARMALAT SPA: Board Reviews First Half 2006 Preliminary Results K A Z A K H S T A N JERMOLA: Creditors Must File Claims by Sept. 11 ORIENT-ENERGO: Proof of Claim Deadline Slated for Sept. 11 STATE INSURANCE: Moody's Lifts Financial Strength Rating to Baa1 N E T H E R L A N D S ARGO PANTES: Amsterdam Court Rules on Bankruptcy STATS CHIPPAC: Earns US$18 Million Net Income in Second Quarter STATS CHIPPAC: Now Listed With NASDAQ Global Select Market R O M A N I A ARDAF SA: Shareholders Need EUR51.5-Mln to Continue Operations R U S S I A AUTO-TRANS: Voronezh Court Starts Bankruptcy Supervision BALAKHTINSKIY AGRO: E. Kazyurin to Manage Assets BAR-COIL: Kareliya Court Names N. Surmin as Insolvency Manager BEREZOVSKOYE: Court Names Y. Melyakov as Insolvency Manager BOLKHOVSKIY ENGINEERING: A. Volchkov to Manage Assets CEDAR: Kirov Court Starts Bankruptcy Supervision CONFECTIONARY GUBERNSKAYA: V. Vologzhin to Manage Assets ENERGETIK: Krasnoyarsk Court Starts Bankruptcy Supervision GRANITE: Kareliya Court Names N. Surmin as Insolvency Manager KEMEROVSKIY WINERY: Kemerovo Court Starts Bankruptcy Supervision KOLPNYANSKAYA: Orel Court Starts Bankruptcy Supervision LIVNY-GAS-STROY: Orel Court Starts Bankruptcy Supervision METAL-PLAST: Penza Court Starts Bankruptcy Supervision RUBY: Perm Court Names A. Tarabrin as Insolvency Manager SELIVANOVSKIY WOOD-COMBINE: N. Kochugov to Manage Assets TERON-OIL: Moscow Court Names I. Mamatov as Insolvency Manager VITA-TRANSPORT: Court Names I. Stepanov as Insolvency Manager VTOR-MET: Kursk Court Names A. Zabornyj as Insolvency Manager YUKOS OIL: Court to Decide on Bankruptcy Ruling on Aug. 23 YUKOS OIL: Appellate Court Reduces Tax Claims by US$1.6 Billion U K R A I N E LVIV' CENTRAL: Lviv Court Starts Bankruptcy Supervision MTK: Court Names Oleksij Zabrodin as Insolvency Manager MUSTANG: Court Commences Bankruptcy Supervision PARITET: Court Names Ivan Popov as Insolvency Manager ROSNAFTOPRODUKT: Court Starts Bankruptcy Supervision STIROL: Moody's Puts B3 Corp. Family Rating Under Review UKRTORG: Court Names LLC Dnipropromtehbud as Liquidator ULYANOVSKE BREAD: Court Names Sergij Bragar as Liquidator U N I T E D K I N G D O M ARENA ZME: Appoints Milner Boardman as Joint Administrators ASSIST MAINTENANCE: Names David Horner as Administrator BENJYS GROUP: Taps Deloitte & Touche to Administer Assets BOLTON SIGNS: Brings In Administrators from Cresswall BURALL LIMITED: Appoints Grant Thornton as Administrators BURGESS BOOKS: Creditors Opt to Voluntarily Liquidate Assets CENTRAL CRANE: Names Alisdair Findlay as Administrator CONSTELLATION BRANDS: Moody's Rates Credit Facilities at Low-B CORBY WINDOWS: Taps Baker Tilly to Administer Assets DESIGN & DISPLAY: Hires Atherton Bailey as Administrators DIVINE INNOVATION: Hires Joint Liquidators from PKF (UK) LLP EURO MEDICARE: Brings In Begbies Traynor as Administrators EUROTUNNEL GROUP: Paris Court Appoints Judicial Administrators FIREFLY SPECIAL: J. Harvey Madden Leads Liquidation Procedure FLEXTRONICS INT'L: Earns US$85 Million in First Quarter 2006 FORD MOTOR: Investing US$1 Billion in Michigan Facilities GSD SECURITY: Appoints James Bonney as Liquidator GRANDACTION LIMITED: Hires Liquidator from Butcher Woods GREAT NORTH: Sea Containers Extends Financial Support GREAT NORTH: Bleak Prospect Prompts Sea Container to Mull Sale INGLEY CONSTRUCTION: Names Liquidator to Wind Up Business J A LEESON: Brings In Liquidator from Mazars LLP J.F.BARDOLPH: Appoints Liquidator from Geoffrey Martin & Co. LIQUID IT: Creditors Confirm Joint Liquidators' Appointment LOADBACK LIMITED: Nominates Liquidator from Stones & Co. M W PENSIONS: Calls In Liquidator from Butcher Woods MACKENZIE ASBESTOS: Taps David Paul Hudson to Liquidate Assets MIDLANDS TRADING: Joint Liquidators Take Over Operations MOBILE PHONE: Names Alan Simon Liquidator MORTONS LABELS: Creditors Confirm Voluntary Liquidation MOSAIC CARE: Taps Liquidator from Marlor Walls NOVELIS INC: Lenders Extend Waiver Period Until Sept. 18 PROACT UK: Creditors Resolve to Voluntary Liquidation SEA CONTAINERS: Restructuring Program Continues as Planned SEA CONTAINERS: Restructuring Spurs S&P to Keep Junk Rating STATS CHIPPAC: Earns US$18 Million Net Income in Second Quarter STATS CHIPPAC: Now Listed With NASDAQ Global Select Market WEST'S ENGINEERING: Creditors' Meeting Slated for August 18 * Large Companies with Insolvent Balance Sheets ********* ============= A U S T R I A ============= D&J ENTERTAINMENT: Creditors' Meeting Slated for August 24 ---------------------------------------------------------- Creditors owed money by LLC D&J Entertainment (FN 257800v) are encouraged to attend the creditors' meeting at 9:30 a.m. on Aug. 24 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 26 (Bankr. Case No. 5 S 86/06s). Josef Ebner serves as the court-appointed property manager of the bankrupt estate. Andrea Eisner represents Dr. Ebner in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Josef Ebner c/o Mag. Andrea Eisner Mahlerstrasse 7 1010 Vienna, Austria Tel: 512 29 94 Fax: 512 29 04 E-mail: rae.ebner.eisner@aon.at RETL: Wels Court Orders Closing of Business ------------------------------------------- The Land Court of Wels entered an order on June 23 closing the business of LLC RETL (FN 144569b). Court-appointed property manager Heinz Haupl determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Heinz Haupl Stockwinkl 18 4865 Nussdorf am Attersee, Austria Tel: 07666/8300-0 Fax: 07666/8300-5 E-mail: office@anwaltskanzlei-nussdorf.at Headquartered in Attersee, Austria, the Debtor declared bankruptcy on June 19 (Bankr. Case No. 20 S 75/06i). SENDER: Creditors' Meeting Slated for August 17 ----------------------------------------------- Creditors owed money by LLC Sender (FN 66364w) are encouraged to attend the creditors' meeting at 10:00 a.m. on Aug. 17 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Feldkirch Conference Hall 45 Feldkirch, Austria Headquartered in Lustenau, Austria, the Debtor declared bankruptcy on June 26 (Bankr. Case No. 14 S 28/06i). Gerhard Mueller serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Gerhard Mueller Maria-Theresien-Road 8 6890 Lustenau, Austria Tel: 05577/88644 Fax: 05577/88644-3 E-mail: kanzlei@grabher-mueller.jet2web.ataon.at V.P.M.: Claims Registration Period Ends August 22 ------------------------------------------------- Creditors owed money by Construction LLC V.P.M. (FN 238562b) have until Aug. 22 to file written proofs of claims to court- appointed property manager Richard Proksch at: Dr. Richard Proksch c/o Dr. Edmund Roehlich Heumarkt 9/I/11 1030 Vienna, Austria Tel: 713 46 51 Fax: 713 84 35 E-mail: proksch@eurojuris.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Sept. 5 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 2102 Vienna, Austria Headquartered in Vienna, Austria the Debtor declared bankruptcy on June 26 (Bankr. Case No. 45 S 41/06t). Edmund Roehlich represents Dr. Proksch in the bankruptcy proceedings. =========== F R A N C E =========== EUROTUNNEL GROUP: Paris Court Appoints Judicial Administrators -------------------------------------------------------------- The Paris Commercial Court appointed Maitre Laurent Le Guerneve and Maitre Emmanuel Hess as Judicial Administrators for Eurotunnel Group. They are jointly responsible for assisting the group's management in order to present to the Court and the Creditors a recovery plan for the business. As previously reported, Eurotunnel obtained on Aug. 2 an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). The procedure is designed to protect 17 of the companies, which form Eurotunnel, from their creditors while seeking to facilitate the design and implementation of a restructuring plan necessary for Eurotunnel to carry on as a going concern. Such plan could result from ongoing negotiations with Eurotunnel's lenders. The court has also appointed Maitre Jean-Claude Pierrel and Maitre Valerie Leloup-Thomas as Judicial Representatives to: -- represent creditors; -- oversee the compilation of the complete list of Eurotunnel's liabilities; and -- audit the accuracy of claims with the possibility of only admitting part thereof and/or contest some of them. The court designated Bernard Soutumier as overseeing judge (juge-commissaire) and Jean-Philippe Klotz as deputy. Mr. Soutumier is tasked to ensure a speedy application of the procedure and the protection of the interests of all the parties. The procedure is initially opened for a period of six months. The Judicial Administrators will contact known creditors to invite them to declare their debts. Creditors are informed that they must declare their debts to the Judicial Representatives within two months of the publication date of the judgment. Creditors outside France are provided with a further two months to do so. By virtue of Council Regulation (EC) 1348/2000 of May 29, 2000, the judgments of the Paris Commercial Court are applicable in respect of companies within Eurotunnel, which are registered in England & Wales. Restructuring Proposals Eurotunnel had turned down, on June 27, a restructuring plan prepared by a group of secured bondholders led by Deutsche Bank AG asserting that it requires too much debt and gives too much to bondholders. The bondholders' restructuring plan, which values the company at EUR7.99 billion, aimed to reduce 60% of total debt to EUR3.7 billion and issue a EUR2.175 billion convertible hybrid note with a 4% coupon. The plan rivaled the preliminary restructuring agreement backed by Eurotunnel, Goldman Sachs Group Inc., Macquarie Bank Ltd. and Barclays PLC. The plan dated May 23, valued the company at around EUR7.03 billion and included a EUR1.5 billion hybrid issue with a 6% to 9% coupon and would reduce debt by 54%. Under the agreement, bondholders will get a GBP75 million return for their GBP1.9 billion bond holdings. On July 12, Eurotunnel presented an ultimate proposal to reach a compromise between the May 23 preliminary restructuring agreement and the demands made by its subordinated creditors represented by ARCO. The company claimed that the majority of these demands were satisfied by the substantial efforts jointly made by the company and the Ad Hoc Committee, which represents the group's senior creditors. The subordinated creditors, led by Deutsche Bank, rejected this final attempt to reach a consensual deal. The Joint Board of Eurotunnel unanimously decided to cancel the General Meetings of Shareholders of Eurotunnel PLC and Eurotunnel SA, planned for July 27. Absent a final agreement, the Group may default in January 2007 under a 1998 debt agreement. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. * * * Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. ============= G E R M A N Y ============= ANTON OSSWALD: Claims Registration Ends September 5 --------------------------------------------------- Creditors of Anton Osswald Gesellschaft mit beschrankter Haftung have until Sept. 5 to register their claims with court-appointed provisional administrator Dipl.-Kfm. Arndt Geiwitz. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Sept. 26, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kempten Residenzplatz 4-6 87435 Kempten 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 Kempten opened bankruptcy proceedings against Anton Osswald Gesellschaft mit beschrankter Haftung on July 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Anton Osswald Gesellschaft mit beschrankter Haftung Hartnagel 2 87439 Kempten Germany The administrator can be contacted at: Dipl.-Kfm. Arndt Geiwitz Bahnhofstrasse 39 89231 Neu-Ulm Germany Tel: 0731/970180 Fax: 0731/97018650 ASB-REINIGUNGSGESELLSCHAFT: Claims Registration Ends September 6 ---------------------------------------------------------------- Creditors of ASB-Reinigungsgesellschaft mbH have until Sept. 6 to register their claims with court-appointed provisional administrator Dr. Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on Sept. 28, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Area C205 2nd 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 ASB-Reinigungsgesellschaft mbH on July 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ASB-Reinigungsgesellschaft mbH Hochfeldstr. 85 47053 Duisburg Germany Ali Kemal Bahcivan, Manager Hochfeldstr. 101 47053 Duisburg Germany The administrator can be contacted at: Dr. Sebastian Henneke Muelheimer Str. 100 47057 Duisburg Germany B. WENGORSCH: Claims Registration Ends September 6 -------------------------------------------------- Creditors of B. Wengorsch Bau GmbH have until Sept. 6 to register their claims with court-appointed provisional administrator Niklas Lutcke. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Friedberg Hall 20a District Court Building Homburger Road 18 61169 Friedberg (Hessen) 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 Friedberg (Hessen) opened bankruptcy proceedings against B. Wengorsch Bau GmbH on June 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: B. Wengorsch Bau GmbH Schottener Strasse 35 35410 Hungen Germany Attn: Benedikt Wengorsch, Amanager Obertorstrasse 35410 Hungen Germany The administrator can be contacted at: Niklas Lutcke Carl-Theodor-Reiffenstein-Platz 6 60313 Frankfurt Germany Tel: 069/4056697-45 Fax: 069/4056697-12 E-mail: niklas.luetcke@dithmar-westhelle.de COSMO CONSULT: Claims Registration Ends September 8 --------------------------------------------------- Creditors of Cosmo Consult Commerce GmbH have until Sept. 8 to register their claims with court-appointed provisional administrator Dipl.-Kaufmann Erich Hoelzemann. Creditors and other interested parties are encouraged to attend the meeting at 8:45 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 Dortmund Hall 3.201 2nd Floor Court Place 1 44135 Dortmund Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Dortmund opened bankruptcy proceedings against Cosmo Consult Commerce GmbH on July 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Cosmo Consult Commerce GmbH Gottlieb Daimler Str. 2 59439 Holzwickede Germany Bodo Clever, Manager Gottlieb Daimler Str. 2 59439 Holzwickede Germany The administrator can be contacted at: Dipl.-Kaufmann Erich Hoelzemann Goethestrasse 2 59065 Hamm Germany EINKAUFSGESELLSCHAFT DEUTSCHER: Claims Filing Ends Sept. 6 ---------------------------------------------------------- Creditors of Einkaufsgesellschaft deutscher Getreidebrennereien GmbH have until Sept. 6 to register their claims with court- appointed provisional administrator Achim Thomas Thiele. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Oct. 10, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 2nd Floor Court Place 1 44135 Dortmund Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Dortmund opened bankruptcy proceedings against Einkaufsgesellschaft deutscher Getreidebrennereien GmbH on July 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Einkaufsgesellschaft deutscher Getreidebrennereien GmbH Hemmerder Dorfstr. 43 59427 Unna Germany Michael Bruns, Manager Hermann-Loens-Weg 18 48317 Drensteinfurt Germany The administrator can be contacted at: Achim Thomas Thiele Bronnerstrasse 7 44141 Dortmund Germany IMPERIAL SPORTS: Claims Registration Ends September 15 ------------------------------------------------------ Creditors of Imperial Sports GmbH & Co.have until Sept. 15 to register their claims with court-appointed provisional administrator Dr. Kay Hassler. Creditors and other interested parties are encouraged to attend the meeting at 9:55 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 Flensburg Hall A 220 Flensburg 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 Flensburg opened bankruptcy proceedings against Imperial Sports GmbH & Co. on July 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Imperial Sports GmbH & Co. KG Attn: Falk Redlich, Manager Industriestrasse 13 24848 Kropp Germany The administrator can be contacted at: Dr. Kay Hassler Wrangelstrasse 17-19 24937 Flensburg Germany ENAS ELEKTROTECHNIK: Claims Registration Ends September 6 --------------------------------------------------------- Creditors of ENAS - Elektrotechnik GmbH have until Sept. 6 to register their claims with court-appointed provisional administrator Dr. Stephan Thiemann. Creditors and other interested parties are encouraged to attend the meeting at 11:30 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 Muenster Meeting Room 13 B Gerichtsstr. 2-6 48149 Muenster 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 Muenster opened bankruptcy proceedings against ENAS - Elektrotechnik GmbH on July 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ENAS - Elektrotechnik GmbH Westkirchener Strasse 90 59320 Ennigerloh Germany Ursula Aufderheide, Manager Oelder Str. 81 59320 Ennigerloh Germany The administrator can be contacted at: Dr. Stephan Thiemann Lublinring 12 48147 Muenster Germany KEYOWA GMBH: Claims Registration Ends September 10 -------------------------------------------------- Creditors of KEYOWA GmbH have until Sept. 10 to register their claims with court-appointed provisional administrator Ralf Sinz. Creditors and other interested parties are encouraged to attend the meeting at 11:52 a.m. on Sept. 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 Cologne Meeting Room 142 1st Floor Luxemburger Road 101 50939 Cologne Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against KEYOWA GmbH on June 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: KEYOWA GmbH Gottfried-Hagen-Str. 60 51105 Cologne The administrator can be contacted at: Dr. Ralf Sinz Zeughausstrasse 28-38 50667 Cologne Germany MENSCH-TIER-GARTEN RITTERGUT: Claims Registration Ends Sept. 11 --------------------------------------------------------------- Creditors of Mensch-Tier-Garten Rittergut Hoppensen gGmbH have until Sept. 4 to register their claims with court-appointed provisional administrator Thomas Kehe. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Sept. 28, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Goettingen Hall B8 Berliner Road 8 37073 Goettingen 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 Goettingen opened bankruptcy proceedings against Mensch-Tier-Garten Rittergut Hoppensen gGmbH on July 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Mensch-Tier-Garten Rittergut Hoppensen gGmbH Attn: Alexander Tyka, Manager Am Rittergut 2 37586 Dassel Germany The administrator can be contacted at: Thomas Kehe Braunschweiger Strasse 15a 38723 Seesen Tel: 05381/93560 Fax: 05381/935644 SIBBE ELEKTROANLAGENBAU: Claims Registration Ends September 1 ------------------------------------------------------------- Creditors of Sibbe Elektroanlagenbau GmbH have until Sept. 1 to register their claims with court-appointed provisional administrator Dr. Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 11:15 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 Dortmund Hall 3.201 2nd Floor Court Place 1 44135 Dortmund Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Dortmund opened bankruptcy proceedings against Sibbe Elektroanlagenbau GmbH on July 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Sibbe Elektroanlagenbau GmbH Attn: Christian Sibbe Neu-Iserlohn-Str. 17 33288 Dortmund Germany The administrator can be contacted at: Dr. Sebastian Henneke Muelheimer Str. 100 47057 Duisburg Germany TUI AG: Weak Performance Spurs Moody's to Review Low -B Ratings --------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the Ba2/B1 ratings of TUI Aktiengesellschaft as a result of the company's announcement that the Shipping division's full-year earnings for 2006 will be impacted by higher operating costs and lower-than-expected freight rates. The ratings affected by the review are TUI's Ba2 Corporate Family Rating, the Ba2 Senior Unsecured Long-Term ratings, and the B1 Subordinated ratings. Moody's rating review is prompted principally by the anticipated impact on credit metrics of TUI's weaker-than-expected operating performance in the first half of 2006 and the change in the full-year outlook for the Shipping division. Moody's cautions that the company may not succeed in de- leveraging the business as quickly as had been expected when the initial rating was assigned. As a result, Moody's is concerned that credit metrics may not improve to the levels previously anticipated, i.e. that Gross Adjusted Debt to EBITDAR moves to below 5.8 and that Retained Cash Flow to Net Adjusted debt progressively strengthens over the intermediate term. The rating review will focus on: -- TUI's operating performance in the Shipping division, including the anticipated evolution of freight rates, bunker costs and transport volumes; -- the progress of the integration of CP Ships and related synergies and one-off costs; -- the anticipated booking levels and operating performance in the company's Tourism division; -- the anticipated evolution of TUI's credit metrics over the intermediate term; and -- any management reassessment of capital expenditure, funding plans and capital structure over the short and intermediate term. Moody's most recent rating action on TUI was a change to negative from stable in the rating outlook on the Ba2/B1 ratings on June 7. Headquartered in Hanover, Germany, TUI is Europe's largest integrated tourism group and a leading provider of container shipping services, with sales of EUR18.2 billion in 2005. VISTEON CORP: Earns US$50 Million in Second Quarter 2006 -------------------------------------------------------- Visteon Corp. reported its second quarter results demonstrating continued progress toward achieving its three-year improvement plan. For the second quarter 2006, Visteon reported US$50 million of net income, compared with a US$1.2 billion loss in the second quarter 2005. "We are pleased with our strong second quarter results and our momentum in implementing our three-year plan," said Michael F. Johnston, chairman and chief executive officer. "Our operating results were better than both the second quarter of 2005 and the first quarter of this year, and we continue to make solid progress in our restructuring efforts, in improving our base operations and in growing our global business." Second Quarter 2006 Results For the second quarter 2006, product sales were US$2.86 billion and services sales were US$138 million. Sales for the same period a year ago totaled US$5.0 billion. Product sales were lower by US$2.14 billion due to the Oct. 1, 2005, transaction with Ford that transferred 23 Visteon facilities to Automotive Components Holdings, LLC, a Ford-managed business entity. Visteon's net income of US$50 million for the current quarter included US$22 million of non-cash asset impairments related to the company's restructuring actions and an extraordinary gain of US$8 million associated with the acquisition of a lighting facility in Mexico. Also as previously indicated, Visteon recognized a US$49 million benefit in the quarter related to the relief of post-employment benefits for Visteon salaried employees associated with two ACH manufacturing facilities transferred to Ford Motor Company. Income tax expense of US$17 million in the quarter included a US$14 million benefit from the restoration of deferred tax assets related to the company's Brazilian operations. EBIT-R, as defined, was US$119 million for the second quarter 2006, an increase of US$47 million from the US$72 million reported in the first quarter 2006. EBIT-R for the second quarter 2005 was a loss of US$33 million. Half-Year Results For the first half 2006, product sales were US$5.7 billion and services sales were US$283 million. More than half of the company's product sales were generated from customers other than Ford, demonstrating continued progress in diversifying Visteon's customer base. Sales for the same period a year ago totaled US$10.0 billion, of which non-Ford sales were 35 percent. Product sales were lower by US$4.3 billion due to the sale of certain plants in North America pursuant to the ACH transactions completed in October 2005. Visteon's net income of US$53 million for the first six months reflects improved operating performance and the financial benefit of the ACH transactions with Ford. The half-year results include US$22 million of non-cash asset impairments related to the company's restructuring actions and an extraordinary gain of US$8 million associated with the acquisition of a lighting facility in Mexico. Also as previously indicated, Visteon recognized a cumulative benefit of US$72 million in the first half of 2006 related to the relief of post-employment benefits for Visteon salaried employees associated with two ACH manufacturing facilities transferred to Ford. For the first half 2005, Visteon reported a net loss of US$1.401 billion. These results included US$1.176 billion of non-cash asset impairments. EBIT-R for the first half 2006 totaled US$191 million, increasing US$329 million from a first half 2005 EBIT-R loss of US$138 million. Free Cash Flow and Financing Activities Free cash flow of US$10 million for the quarter was an improvement of US$127 million over the first quarter 2006. Free cash flow was lower than the second quarter 2005 in which Visteon received the benefit of accelerated payment terms from Ford as part of the funding agreement. During the second quarter 2006, Visteon closed on a seven-year US$800 million secured term loan. Proceeds from the loan were used to repay amounts outstanding under the company's existing credit facilities that were scheduled to expire in June 2007, including a US$350 million 18-month term loan and a US$241 million delayed draw term loan. In connection with this financing, Visteon repaid US$50 million of borrowings under the company's US$772 million multi-year secured revolving credit facility and reduced the amount available under that facility to US$500 million. Visteon expects to eliminate the multi-year revolver upon completion of new U.S. and European five-year revolving credit facilities. The company has received commitments for these facilities totaling US$700 million from JPMorgan Chase Bank, N.A. and Citigroup Global Markets Inc., and expects to complete these transactions in the third quarter, subject to market conditions. Proceeds were also used to repurchase US$150 million of the company's 8.25 percent notes that are due in 2010. This repurchase resulted in a gain of US$8 million in the second quarter which was offset by expense associated with debt issuance costs related to the extinguished credit facilities. As of June 30, 2006, Visteon had US$836 million of cash and total debt of US$2.0 billion and was well within the limits of its financial covenants in its existing credit facilities. "Effectively managing the drivers of free cash flow is a top priority for everyone within the Visteon organization," said James F. Palmer, executive vice president and chief financial officer. "We are taking steps at every level to continue strengthening our cash flow position, while appropriately investing in the business for the future." New Business Wins The company continues to win new business from a diverse range of customers across each of the company's key product lines. Significant wins in North America include DaimlerChrysler programs in Climate and Lighting and a program with an Asian vehicle manufacturer in Interiors. Additionally during this period, Visteon was awarded Climate business in Asia from Hyundai and in Europe from Ford. "Our business wins speak to the strength of our focused product portfolio and our ability to deliver the innovation and quality our customers expect," said Donald J. Stebbins, president and chief operating officer. "These wins demonstrate that we are executing on every aspect of our three-year plan, including growing the business through product innovation, customer diversification, profitable sales growth and leveraging technology for global competitive advantage." Outlook Third quarter 2006 is expected to be challenging, reflecting seasonally low production volumes globally. Visteon is raising its estimate for 2006 full year EBIT-R to a range of US$170 million to US$200 million. Additionally, the company still expects to generate about US$50 million of free cash flow and expects 2006 full-year product sales of approximately US$11.0 billion. "Our momentum and the actions we are taking to address the business dynamics we are facing give us confidence that we will continue to make progress in achieving and, where possible, accelerating our three-year plan," Mr. Johnston added. "We are increasing our outlook for earnings, reaffirming our outlook for positive free cash flow and reiterating our expectation for continued year-over-year improvement during the three-year improvement plan." At June 30, 2006, Visteon's balance sheet showed USUS$57 million in positive equity, compared with a USUS$48 million deficit at Dec. 31, 2005. About the Company Visteon Corp. (NYSE: VC) is a leading global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Kerpen, Germany; the company has more than 170 facilities in 24 countries and employs approximately 47,000 people. * * * As reported in TCR-Europe on June 19, Fitch Ratings placed a rating of B/RR1 to the senior secured bank debt announced by Visteon Corp. In addition, Fitch affirmed Visteon's Senior unsecured debt at CCC-/RR5. The Issuer Default Rating is unchanged at CCC. Fitch said the Rating Outlook is Negative. ========= I T A L Y ========= PARMALAT SPA: Board Reviews First Half 2006 Preliminary Results --------------------------------------------------------------- Parmalat S.p.A.'s Board of Director, with the chairmanship of Raffaele Picella, has examined the preliminary figures at June 30, 2006. These figures confirm that the Company's operating performance is continuing to improve. The Group In the first half of 2006, consolidated net revenues totaled EUR1.97 billion, or 6.8% more than the EUR1.84 billion booked in the same period last year. EBITDA increased by 21.4% to EUR159.9 million, compared with EUR131.7 million at June 30, 2005. The return on sales was also up, rising to 8.1% (7.1% in 2005) also due to lower provisioning equal to a reduction by EUR6 million compared to 2005. This improvement mainly reflects a strong performance in Italy, Africa and Venezuela and favorable developments in foreign exchange parities, particularly the exchange rate of the Canadian dollar versus the euro. A breakdown of the results by country: First Half 2006 (In Millions) As a % Net Net Revenues EBITDA Revenues --------- -------- -------- Italy EUR585.0 EUR48.1 8.2 Canada 648.1 54.1 8.4 Australia 218.4 14.7 6.7 Africa (consolidated) 178.2 19.4 10.9 Spain 99.7 2.2 2.2 Portugal 39.0 4.1 10.5 Russia 26.5 3.9 14.8 Romania 5.5 1.2 21.7 Nicaragua 13.2 2.0 14.9 Cuba 3.6 1.0 28.0 Venezuela 91.1 15.0 16.4 Ecuador 1.0 (0.3) (28.1) Colombia 55.5 5.5 9.9 Other 8.1 (10.9) n.a. ---------- -------- -------- Group EUR1,972.8 EUR159.9 8.1 ========== ======== ======== Specifically: -- in Italy, following the optimization of product mix, which caused a sales decrease of non typical products for an amount of EUR19.6 million, consolidated revenues totaled EUR585.0 million, slightly less (-2.2%) than the EUR598.0 million reported in the first half of 2005. The reason for this shortfall is a decrease in revenues from the sale of non-Core Program products, which had a negative impact of EUR19.6 million, offset in part by higher sales of functional/healthy living products with greater added value. The optimization of product mix, coupled with a strict cost control policy, produced an expansion in EBITDA, which rose to EUR48.1 million, or EUR10.7 million more than in the first six months of 2005 (EUR37.4 million). The return on sales also improved, rising from 6.3% in 2005 to 8.2% this year. -- in Canada, consolidated revenues, aided also by the positive impact of a favorable exchange rate, increased to EUR648.1 million, a gain of 7.4% compared with the EUR603.4 million booked in the first half of 2005. EBITDA improved to EUR54.1 million, or EUR10.3 million more (+23.2%) than the EUR43.9 million earned in the first six months of 2005, causing the return on sales to rise to 8.4% (7.3% in 2005). Even though there were fewer delivery and billing days than in the first half of 2005 (one week less), the Canadian operations were able to report higher revenues and EBITDA thanks to a price increase implemented earlier in the year and a change in the product mix. -- in Australia, consolidated revenues reached EUR218.4 million at June 30, 2006, up 13.6% from the EUR192.2 million booked in the first six months of 2005. EBITDA decreased by EUR1.7 million, falling from EUR16.4 million to EUR14.7 million. The return on sales contracted by 1.8%. The decrease of EBITDA will be recovered during the following semester due to the improvement of product mix and to targeted publicity expenses. -- in Africa, consolidated revenues were up a healthy 19.5%, rising from EUR149.1 million in the first half of 2005 to EUR178.2 million in the same period this year. EBITDA were also up (from EUR15.4 million to EUR19.4 million) and the return on sales improved from 10.3% to 10.9%. An increase in unit sales, made possible by a rapidly growing local economy, and a change in product mix accounted for this improvement. Aside from the Spanish companies, which are continuing to experience a difficult situation, the operations in the other countries reported excellent operating results compared with the first half of 2005. The companies in South America (Colombia and Venezuela) performed especially well. At June 30, 2006, the Group's net financial position showed indebtedness of EUR316.5 million, down sharply from the EUR369.3 million owed at the end of 2005. The net indebtedness of the Venezuelan operations alone amounted to about EUR150 million. Parmalat S.p.A. The Group's Parent Company reported net revenues of EUR504.5 million, or 4% less than the EUR525.7 million booked in the first half of 2005. In this case as well, lower sales of non- core products, offset in part by higher shipments of functional/healthy living products with greater added value, account for this decrease. EBITDA totaled EUR32 million, a gain of EUR8.6 million compared with the EUR23.4 million earned in the first six months of 2005. The return on sales rose to 6.3%, compared with 4.5% in 2005. This improvement was made possible by a greater preponderance of functional/healthy living products within the product mix and by the fact that the loss incurred by the network of Group-owned licensees, which in 2005 was included in the EBITDA of the Group's Parent Company, is now being allocated to Parmalat Distribuzione Alimenti (a company that is being reorganized to increase its efficiency), which is part of the Italian Strategic Business Unit. During the first half of 2006, net financial assets decreased from EUR324.5 million to EUR291.6 million, even though the Company's operations were cash flow positive. The decrease is attributable to extraordinary transactions, which included the payment of preferential and pre-deduction claims by the Group's Parent Company, expenses incurred in connection with the extraordinary administration proceedings and legal fees, offset only in part by nonrecurring gains and dividends received from subsidiaries. * * * Parmalat says the first half 2006 results will be approved on Sept. 13, 2006, for submission to the shareholders meeting. In addition, the approved results will be presented to the financial community in a meeting to be held in Milan, Italy. The meeting will represent the start of a road show planned to take place in the last two weeks of September. 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. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. 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. =================== K A Z A K H S T A N =================== JERMOLA: Creditors Must File Claims by Sept. 11 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Jermola insolvent. Creditors have until Sept. 11 to submit written proofs of claim to: LLP Jermola 8 Marta Str. 4 Borovoi Mendykarinsky District Kostanai Region Kazakhstan Tel: 8 (2432) 10-30 ORIENT-ENERGO: Proof of Claim Deadline Slated for Sept. 11 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Orient-Energo insolvent on June 19. Creditors have until Sept. 11 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Region Gogol Str. 177a Kostanai Kostanai Region Kazakhstan STATE INSURANCE: Moody's Lifts Financial Strength Rating to Baa1 ---------------------------------------------------------------- Moody's Investors Service upgraded the insurance financial strength rating of the State Insurance Corporation for the Insurance of Export Credit and Investment of Kazakhstan (Kecic) to Baa1 from Ba1. This concludes the review for possible upgrade announced in our press release on July 12. The outlook on the new rating is stable. Headquartered in Almaty, Kazakhstan, Kecic was founded in August 2003 and started operations in February 2004. It is 100% owned by the Republic of Kazakhstan and is mandated to be the primary provider of export credit insurance in the country, both commercial and political. In addition, Kecic is writing inward reinsurance business in the Kazakh market. Commenting on the upgrade, Moody's said that a key factor that added positive pressure on the rating was the upgrade of Kazakhstan's foreign currency bond rating to Baa2 from Baa3 on June 9. Furthermore, Moody's said that the company's current plans foresaw a more limited rate of growth than previously expected, ensuring that the company's strong capitalization will be maintained. Finally, Moody's concluded that Kecic enjoyed very substantial support from the Government of Kazakhstan, as a result of which the degree of implied support for the purposes of Moody's GRI (Government Related Issuer) methodology was increased from 20% to 60%. In accordance with Moody's GRI (Government Related Issuer) rating methodology, the current rating of Kecic reflects a combination of the following inputs: -- baseline credit assessment of 9 (on a scale of 1 to 21, where 1 represents the lowest credit risk), -- 100% dependence, reflecting the company's operating and financial proximity to the Government -- 60% support, reflecting the importance of Kecic in its capacity as Export Credit Agency (ECA), somewhat offset by its status as an underwriter of inwards reinsurance business which is associated with more limited support from the Government. Moody's said that further upward pressure on Kecic's rating was highly unlikely to develop in the absence of positive rating actions on the Republic of Kazakhstan bond ratings. Commenting on what could move Kecic's rating down, Moody's mentioned: -- faster than expected growth, particularly in the non-core inwards reinsurance business, -- failure to develop adequate risk management systems to accommodate growing exposure, -- a change in asset allocation strategy resulting in a decline of the credit quality of invested assets, as well as -- any evidence of weakening support by the Government of Kazakhstan. The date of the preceding rating action was July 12, when Kecic's insurance financial strength rating was placed on review for possible upgrade. Kecic had shareholders equity of KZT8,792.8 million and total assets of KZT9,038.4 million as of Dec. 31, 2005. For FY 2005, it reported net income of KZT205.5 million. ===================== N E T H E R L A N D S ===================== ARGO PANTES: Amsterdam Court Rules on Bankruptcy ------------------------------------------------ An Amsterdam court has approved the bankruptcy petition filed by Indo Plus BV against Argo Pantes Finance BV, a subsidiary of Indonesia's PT Argo Pantes Tbk, AFX News Limited reports citing XFN-Asia as its source. Creditors have until Sept. 11 to submit their written proofs of claims to the company's administrator, Sjoerd Postma, at: Sjoerd Postma Delflandlaan 1 Postbus 1031 1000 BA Amsterdam Netherlands Tel: +31 (0)20 2060700 Fax: +31 (0)20 2060750 E-mail: SPostma@devos.nl The first meeting of creditors will be held on Sept. 12 at the administrator's address. About Argo Pantes Headquartered in Jakarta, Indonesia, PT Argo Pantes Tbk manufactures textile. The Company is comprised of four business units: Spinning, Yarn Dying, Weaving and Dying Finishing. It sells its products to both domestic and international markets, including countries in Asia, North America and Europe. The Company also operates one production facility in each of Tangerang and Bekasi. The Company's subsidiaries include Argo Pantes Finance B.V., Argo Pantes (HK) Ltd. and PT Mega Sentra Propertindo, which are engaged in the financial services, sales and general trading industries. STATS CHIPPAC: Earns US$18 Million Net Income in Second Quarter --------------------------------------------------------------- STATS ChipPAC Ltd. has announced results for the second quarter ended June 30, 2006. Revenue for the three months ended June 30, 2006 increased 58% to US$418.1 million, compared with US$264.3 million of revenues in the same quarter a year ago or an increase of 8% compared to the prior quarter. On a U.S. GAAP basis, net income for the three months ended June 30, 2006, was US$18.0 million, compared with a US$15.1 million net loss in the same quarter a year ago. US GAAP results for the second quarter of 2006 include US$16.0 million in special items and costs associated with the merger of STATS and ChipPAC. US GAAP results for the second quarter of 2005 include US$14.1 million in special items and costs associated with the merger of STATS and ChipPAC. Excluding the special items and including certain adjustments, non-US GAAP adjusted net income for the three months ended June 30, 2006 was US$34.1 million, compared with a net loss of US$1.0 million in the same quarter a year ago. Results for the second quarter of 2006 include approximately US$2.8 million in share-based compensation expenses as required under SFAS 123(R). Outlook Tan Lay Koon, president and chief executive officer of STATS ChipPAC said, "In terms of guidance for the third quarter of 2006, we expect revenue in the third quarter of 2006 will be approximately 2% to 7% lower than the second quarter of 2006, with US GAAP net income in the range of US$13.0 million to US$24.0 million, which represents US GAAP net income per diluted ADS of US$0.06 to US$0.11, including the impact of US$0.02 per ADS for the expensing of share-based compensation and the impact of approximately US$0.01 per ADS due to restructuring activities in the quarter. Non-US GAAP adjusted net income is expected to be in the range of US$21.5 million to US$32.5 million or in the range of US$0.10 to US$0.15 per diluted ADS, including the impact of US$0.02 per ADS for the expensing of share-based compensation. Non-US GAAP adjusted net income is calculated without the effect of certain merger and integration expenses, purchase accounting adjustments and restructuring activities." A full-text copy of STATS ChipPac's second quarter financials is available at no charge at http://ResearchArchives.com/t/s?f92 About STATS ChipPAC Headquartered in Singapore, STATS ChipPAC Ltd. -- http://www.statschippac.com/-- provides semiconductor test and assembly services. The company assembles leaded and laminate packages and provides related services such as package design and leadframe and substrate designs. The company provides these tests and assembly services to semiconductor companies which do not have their own manufacturing facilities. The company's offices outside the United States are located in South Korea, Singapore, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom. * * * Moody's Investors Service gave STATS ChipPAC a Long-Term Corporate Family Rating of 'Ba2" effective on October 21, 2004 and the company's Senior Unsecured Debt a 'Ba2' rating on October 28, 2004. Standard and Poor's Ratings Services gave the company a 'BB' for both its Long-Term Foreign Issuer Credit Rating and Long-Term Local Issuer Credrit Rating effective on October 7, 2004. STATS CHIPPAC: Now Listed With NASDAQ Global Select Market ---------------------------------------------------------- STATS ChipPAC Ltd. disclosed the listing of its shares in the new NASDAQ Global Select Market. The NASDAQ Global Select Market has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. Prior to the change, the company had been listed on the NASDAQ National Market. Beginning July 3, NASDAQ-listed companies will be classified under three listing tiers - NASDAQ Global Select Market, NASDAQ Global Market, and NASDAQ Capital Market. NASDAQ also plans to launch indexes based on these new tiers. Tan Lay Koon, president and chief executive officer, STATS ChipPAC, "Achieving the NASDAQ Global Select market designation is the latest acknowledgement of STATS ChipPAC's global leadership, our support of the world's most prestigious and innovative customers, and our commitment to our investors." NASDAQ announced the new three tier listing classification in February 2006. All three market tiers will maintain rigorous listing and corporate governance standards. About STATS ChipPAC Headquartered in Singapore, STATS ChipPAC Ltd. -- http://www.statschippac.com/-- provides semiconductor test and assembly services. The company assembles leaded and laminate packages and provides related services such as package design and leadframe and substrate designs. The company provides these tests and assembly services to semiconductor companies which do not have their own manufacturing facilities. The company's offices outside the United States are located in South Korea, Singapore, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom. * * * Moody's Investors Service gave STATS ChipPAC a Long-Term Corporate Family Rating of 'Ba2" effective on October 21, 2004 and the company's Senior Unsecured Debt a 'Ba2' rating on October 28, 2004. Standard and Poor's Ratings Services gave the company a 'BB' for both its Long-Term Foreign Issuer Credit Rating and Long-Term Local Issuer Credrit Rating effective on October 7, 2004. ============= R O M A N I A ============= ARDAF SA: Shareholders Need EUR51.5-Mln to Continue Operations -------------------------------------------------------------- Shareholders of Asigurare Reasigurare Ardaf S.A. decided to raise the company's share capital by RON181.2 million (EUR51.5 million) in cash contributions in order for the company to stay afloat, Ziarul Financiar reports. The company's shareholders include, among others: -- Ovidiu Tender, through Tender SA company (70.69%); -- Clairmont Holding Ltd., an offshore of Cyprus held by Firebird investment fund (12.71%); and -- Raiffeisen Zentralbank Austria (10.19%). According to the report, the company's shareholders also opted to oust the members of its Board of Directors. Receivership Procedure On July 18, Comisiei de Supraveghere a Asigurarilor, Romania's Insurance Monitoring Commission, placed Ardaf under special administration and appointed lawyer Radu Cocea as receiver, derStandard reports. CSA ruled that Ardaf has jeopardized the possibility of satisfying its obligations to its clients and creditors, derStandard relates. The insurance commission said the proposed measures were meant to boost Ardaf's financial recovery and protect the rights of the insured. CSA noted that Ardaf's insurance contracts remains in force on under normal conditions. Following CSA's ruling, market regulators suspended Ardaf shares from trading on the Bucharest Stock Exchange. Ardaf underwent similar proceedings in October 2005. The group recovered within two months following a EUR5 million capital hike. About Ardaf Headquartered in Cluj-Napoca, Romania, Asigurare Reasigurare Ardaf S.A. -- http://www.ardaf.ro/-- offers insurance contracts, including all types of general facultative and life insurance. The company controls 5.28% of the Romanian insurance market. =========== R U S S I A =========== AUTO-TRANS: Voronezh Court Starts Bankruptcy Supervision -------------------------------------------------------- The Arbitration Court of Voronezh Region has commenced bankruptcy supervision procedure on CJSC Auto-Trans. The case is docketed under Case No. A14-3857-2006/88/27b. The Temporary Insolvency Manager is: A. Sushkov Post User Box 54 394030 Voronezh Region Russia The Debtor can be reached at: OJSC Auto-Trans Petropavlovka Petropavlovskiy Region Voronezh Region Russia BALAKHTINSKIY AGRO: E. Kazyurin to Manage Assets ------------------------------------------------ The Arbitration Court of Krasnoyarsk Region appointed Mr. E. Kazyurin as Insolvency Manager for OJSC Balakhtinskiy Agro Service (TIN 2403004700). He can be reached at: E. Kazyurin Post User Box 12305 660041 Krasnoyarsk Region Russia The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A33-7239/2006. The Debtor can be reached at: OJSC Balakhtinskiy Agro Service Surikova Str. 1 Balakhta Balakhtinskiy Region 662340 Krasnoyarsk Region Russia BAR-COIL: Kareliya Court Names N. Surmin as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Kareliya Republic appointed Mr. N. Surmin as Insolvency Manager for OJSC Fuel Company Bar-Coil. He can be reached at: N. Surmin Post User Box 171 Petrozavodsk 185035 Kareliya Republic Russia The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A26-2262/2006-18. The Debtor can be reached at: OJSC Fuel Company Bar-Coil Petrozavodsk Kareliya Republic Russia BEREZOVSKOYE: Court Names Y. Melyakov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Voronezh Region appointed Mr. Y. Melyakov as Insolvency Manager for CJSC Berezovskoye (TIN 3605000266). He can be reached at: Y. Melyakov Sredne-Moskovskaya Str. 6a Voronezh Region Russia The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A14-2625/2006/32/27b. The Debtor can be reached at: CJSC Berezovskoye Chekhova Str. 18a Buturlinovka Voronezh Region Russia BOLKHOVSKIY ENGINEERING: A. Volchkov to Manage Assets ----------------------------------------------------- The Arbitration Court of Orel Region appointed Mr. A. Volchkov as Insolvency Manager for CJSC Bolkhovskiy Engineering Factory. He can be reached at: A. Volchkov 3rd Kurskaya Str. 15 302004 Orel Region Russia The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A48-6977/05-17B. The Debtor can be reached at: CJSC Bolkhovskiy Engineering Factory K. Marksa Str. 2 Bolkhov 303142 Orel Region Russia CEDAR: Kirov Court Starts Bankruptcy Supervision ------------------------------------------------ The Arbitration Court of Kirov Region has commenced bankruptcy supervision procedure on LLC Cedar (TIN 4314004290). The case is docketed under Case No. A28-139/06-181/20. The Temporary Insolvency Manager is: V. Krygin Post User Box 1836 20 os 610020 Kirov Region Russia The Debtor can be reached at: LLC Cedar Gagarina Str. 26 Kumyeny Kirov Region Russia CONFECTIONARY GUBERNSKAYA: V. Vologzhin to Manage Assets -------------------------------------------------------- The Arbitration Court of Irkutsk Region appointed Mr. V. Vologzhin as Insolvency Manager for CJSC Confectionary Gubernskaya (TIN 3808100241). He can be reached at: V. Vologzhin Post User Box 406 S. Razina Str. 23 664025 Irkutsk Region Russia The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A19-10997/06-29. The Debtor can be reached at: CJSC Confectionary Gubernskaya Kashtakovskaya Str. 17 664019 Irkutsk Region Russia ENERGETIK: Krasnoyarsk Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region has commenced bankruptcy supervision procedure on OJSC Energetik. The case was docketed under Case No. A33-30949/2005. The Temporary Insolvency Manager is: S. Vasilyev Post User Box 20647 660017 Krasnoyarsk Region Russia The Debtor can be reached at: OJSC Energetik Prombaza SDK-7 Pionernyj Location Sharypovo 662320 Krasnoyarsk Region Russia GRANITE: Kareliya Court Names N. Surmin as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Kareliya Republic appointed N. Surmin as Insolvency Manager for LLC Granite. He can be reached at: N. Surmin Post User Box 171 Petrozavodsk 185035 Kareliya Republic Russia The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A26-2245/2006-183. The Debtor can be reached at: LLC Granite Belomorsk Kareliya Republic Russia KEMEROVSKIY WINERY: Kemerovo Court Starts Bankruptcy Supervision ---------------------------------------------------------------- The Arbitration Court of Kemerovo Region has commenced bankruptcy supervision procedure on OJSC Kemerovskiy Winery. The case is docketed under Case No. A27-8694/2006-4 k. The Temporary Insolvency Manager is: E. Nemkina Stroiteley Avenue 44-159 650003 Kemerovo Region Russia The Debtor can be reached at: OJSC Kemerovskiy Winery Bakha Str. 15. 650905 Kemerovo Region Russia KOLPNYANSKAYA: Orel Court Starts Bankruptcy Supervision ------------------------------------------------------- The Arbitration Court of Orel Region has commenced bankruptcy supervision procedure on Agro Company Kolpnyanskaya. The case was docketed under Case No. A48-1166/06-17B. The Temporary Insolvency Manager is: E. Galstyan Sovkhoznaya Str. 18A Lipetsk Region Russia The Debtor can be reached at: Agro Company Kolpnyanskaya Sovetskaya Str. 14 Kolpny Orel Region Russia LIVNY-GAS-STROY: Orel Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Orel Region has commenced bankruptcy supervision procedure on OJSC Livny-Gas-Stroy. The case was docketed under Case No. A48-1488/06-20B. The Temporary Insolvency Manager is: V. Goltsov Office 24 Gorkogo Str. 45 302028 Orel Region Russia The Debtor can be reached at: OJSC Livny-Gas-Stroy Industrialnaya Str. 2G. Livny Orel Region Russia METAL-PLAST: Penza Court Starts Bankruptcy Supervision ------------------------------------------------------ The Arbitration Court of Penza Region has commenced bankruptcy supervision procedure on CJSC Factory Metal-Plast. The case is docketed under Case No. A29-2424/06-3B. The Temporary Insolvency Manager is: D. Altukhov Room 612 Ryazanskaya Str. 1 300026 Tula Region Russia The Debtor can be reached at: CJSC Factory Metal-Plast Serdobskaya Str. 1 Kolyshley Penza Region Russia RUBY: Perm Court Names A. Tarabrin as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Perm Region appointed Mr. A. Tarabrin as Insolvency Manager for CJSC Ruby. He can be reached at: A. Tarabrin Gorkogo Str. 60-5 614060 Perm Region Russia The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A50-7904/2006-B. The Debtor can be reached at: CJSC Ruby Mekhanicheskaya Str. 11 Chusovoy 618204 Perm Region Russia SELIVANOVSKIY WOOD-COMBINE: N. Kochugov to Manage Assets -------------------------------------------------------- The Arbitration Court of Vladimir Region appointed Mr. N. Kochugov as Insolvency Manager for OJSC Selivanovskiy Wood- Combine. He can be reached at: N. Kochugov Universitetskaya Str. 6 600024 Vladimir Region Russia Tel/Fax: 8(4922) 340678 The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A11-17933/2005-K1-93B/3B. The Debtor can be reached at: OJSC Selivanovskiy Wood-Combine Krasnaya Gorbatka Selivanovskiy Region 601384 Vladimir Region Russia TERON-OIL: Moscow Court Names I. Mamatov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Moscow Region appointed Mr. I. Mamatov as Insolvency Manager for CJSC Teron-Oil. He can be reached at: I. Mamatov Post User Box 96 2nd Dubrovskaya Str. 1 109044 Moscow Region Russia The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A40-67115/05-123-153 B. The Debtor can be reached at: CJSC Teron-Oil Building 1 B. Yakimanka Str. 25-27/2 119049 Moscow Region Russia VITA-TRANSPORT: Court Names I. Stepanov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. I. Stepanov as Insolvency Manager for CJSC Insurance Company Vita-Transport (TIN 7708088968). He can be reached at: I. Stepanov Office 218 Moskovskaya Str. 127 429820 Voronezh Region Russia The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A40-15415/06-101-65 B. The Debtor can be reached at: CJSC Insurance Company Vita-Transport Room 1 Asheulov Per. 9 107045 Moscow Region Russia VTOR-MET: Kursk Court Names A. Zabornyj as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Kursk Region appointed Mr. A. Zabornyj as Insolvency Manager for CJSC Vtor-Met. He can be reached at: A. Zabornyj S. Razina Str. 96. 305000 Kursk Region Russia The Court commenced bankruptcy proceedings against at the company after finding it insolvent. The case is docketed under Case No. A35-3158/06 g. The Debtor can be reached at: CJSC Vtor-Met S. Razina Str. 96 305000 Kursk Region Russia YUKOS OIL: Court to Decide on Bankruptcy Ruling on Aug. 23 ---------------------------------------------------------- The Arbitration Court of Moscow will hear on Aug. 23 the legitimacy of a creditors' decision to recognize OAO Yukos Oil Co. bankrupt and start liquidation proceedings, ANTARA News reports. The Hon. Pavel Markov of the Moscow Arbitration Court upheld the July 25 vote by creditors to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt on Aug. 1. Company executives filed a motion with the court against the vote on the same day. The court also appointed former Yukos temporary manager Eduard Rebgun as bankruptcy receiver. As reported in TCR-Europe on Aug. 2, Yukos's creditors, led by the Federal Tax Service and state-owned OAO Rosneft Oil Company, will oversee the liquidation and distribution of the company's assets. 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. YUKOS OIL: Appellate Court Reduces Tax Claims by US$1.6 Billion --------------------------------------------------------------- The Arbitration Appeal Court in Moscow has reduced the Federal Tax Service's claims against OAO Yukos Oil Co. from RUB353.8 billion (US$13.2 billion) to RUB$311.8 billion (US$11.6 billion), RIA Novosti relates. According to the report, the court's decision partially upheld Yukos's motion against a RUB108 billion claim the tax agency was demanding in back taxes for 2004. As widely reported, the Hon. Pavel Markov of the Moscow Arbitration Court declared what was once Russia's largest oil producer bankrupt on Aug. 1 upholding a creditors' July 25 vote to liquidate the company. Up to US$16.6 billion in claims have been asserted against the company by its creditors, among others: Yuganskneftegas US$4.07 billion Federal Tax Service US$11.6 billion OAO Rosneft Oil Co. US$482 million As reported in TCR-Europe on Aug. 10, Russian prosecutors have accused former Yukos officials of embezzling money by securing a US$4.5 billion loan from its Luxembourg-based unit and major creditor, Yukos Capital SARL, through legal entities affiliated with the company. According to the report, 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. About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On July 25, Yukos creditors voted to liquidate the oil firm after rejecting a management rescue plan, which valued the company's assets at about US$30 billion. This would have permitted Yukos to continue its operations and attempt to pay off US$18 billion in debts through asset sales. ============= U K R A I N E ============= LVIV' CENTRAL: Lviv Court Starts Bankruptcy Supervision ------------------------------------------------------- The Economic Court of Lviv Region commenced bankruptcy supervision procedure on CJSC Lviv' Central Department Store (code EDRPOU 01560474) on June 22. The case is docketed under Case No. 6/97-8/172. The Temporary Insolvency Manager is: Yaroslav Onushkanich Strijska Str. 71 b/3 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 Lviv' Central Department Store Danilishin Str. 6 79007 Lviv Region Ukraine MTK: Court Names Oleksij Zabrodin as Insolvency Manager ------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Oleksij Zabrodin as Liquidator/Insolvency Manager for LLC MTK (code EDRPOU 31051186). He can be reached at: Oleksij Zabrodin a/b 6335 69121 Zaporizhya Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 27. The case is docketed under Case No. 25/130/06. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC MTK Zhukovskij Str. 82 69095 Zaporizhya Region Ukraine MUSTANG: Court Commences Bankruptcy Supervision ----------------------------------------------- The Economic Court of Sumi Region commenced bankruptcy supervision procedure on LLC Auto Transport Company Mustang (code EDRPOU 32462070) on April 11. The case is docketed under Case No. 12/3-06. The Temporary Insolvency Manager is: Shevich Oleksandr Office 1418 Nezalezhnosti Square, 1 Sumi Region Ukraine The Economic Court of Sumi Region is located at: Shevchenko Avenue, 18/1 Sumi Region Ukraine The Debtor can be reached at: LLC Auto Transport Company Mustang Kurska Str. 26 Sumi Region Ukraine PARITET: Court Names Ivan Popov as Insolvency Manager ----------------------------------------------------- The Economic Court of Donetsk Region appointed Ivan Popov as Liquidator/Insolvency Manager for LLC Insurance Company Paritet (code EDRPOU 33186453). He can be reached at: Ivan Popov Tayozhna Str. 1 Makiyivka 86123 Donetsk Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 27. The case is docketed under Case No. 5/112 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Insurance Company Paritet Shevchenko Str. 23 Makiyivka 86157 Donetsk Region Ukraine ROSNAFTOPRODUKT: Court Starts Bankruptcy Supervision ---------------------------------------------------- The Economic Court of Vinnitsya Region commenced bankruptcy supervision procedure on CJSC Rosnaftoprodukt (code EDRPOU 24895846). The case is docketed under Case No. 5/149-05. The Temporary Insolvency Manager is: Lina Demets 40-richya Peremogi Str. 27A/57 Vinnitsya Region Ukraine The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: CJSC Rosnaftoprodukt Pogrebishe 22200 Vinnitsya Region Ukraine STIROL: Moody's Puts B3 Corp. Family Rating Under Review -------------------------------------------------------- Moody's Investors Service placed the B3 corporate family rating of OJSC Concern Stirol and the B3 rating on the loan participation notes issued by UkrChem Capital BV under review for possible downgrade. The rating action has been prompted by recently released audited 2005 financial results which indicated that the company was in breach of a number of covenants under both a US$10 million bank loan and the US$125million loan participation notes, giving the bank and note investors the right to accelerate the repayment. The review will focus upon: -- availability of cash to meet possible acceleration of repayments; and -- impact of such possible acceleration on company's funding flexibility and liquidity profile. OKSC Concern Stirol is a leading Ukrainian manufacturer of ammonia and its derivatives, with sales at FYE 2005 of UAH2.3 billion. UKRTORG: Court Names LLC Dnipropromtehbud as Liquidator ------------------------------------------------------- The Economic Court of Donetsk Region appointed LLC Dnipropromtehbud (code EDRPOU 33159943) as Liquidator for LLC Ukrtorg (code EDRPOU 32743975). The Court commenced bankruptcy proceedings against the company after finding it insolvent on May 17. The case is docketed under Case No. 27/79 B. The Liquidator can be reached at: LLC Dnipropromtehbud Novoukrainska Str. 28/1 49000 Dnipropetrovsk Region Ukraine The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Ukrtorg Hirurgichna Str. 22 83096 Donetsk Region Ukraine ULYANOVSKE BREAD: Court Names Sergij Bragar as Liquidator --------------------------------------------------------- The Economic Court of Kyiv Region appointed Sergij Bragar as Liquidator/Insolvency Manager for LLC Ulyanovske Bread Receiving Enterprise (code EDRPOU 33193345). He can be reached at: Sergij Bragar Harkivske shose Str. 2/6 02160 Kyiv Region Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 21. The case is docketed under Case No. 23/97-b. The Debtor can be reached at: LLC Ulyanovske Bread Receiving Enterprise Kostyantinivska Str. 37-A 04071 Kyiv Region Ukraine =========================== U N I T E D K I N G D O M =========================== ARENA ZME: Appoints Milner Boardman as Joint Administrators ----------------------------------------------------------- Colin Burke and Gary Corbett of Milner Boardman & Partners were appointed joint administrators of Arena ZME Limited (Company Number 2592742) on July 14. Headquartered on Hale, Altrincham, South Manchester, Milner Boardman -- http://www.milnerboardman.co.uk/-- is an independent firm of chartered accountants and business advisers. Headquartered in Nottingham, United Kingdom, Arena ZME Limited -- http://www.arenazme.co.uk/-- manufactures plastic products. ASSIST MAINTENANCE: Names David Horner as Administrator ------------------------------------------------------- David Anthony Horner of David Horner & Co. was named administrator of Assist Maintenance Services Limited (Company Number 04142373) on July 12. David Horner & Co. -- http://www.davidhornerandco.co.uk/-- is a firm of insolvency practitioners based at three different locations, which together cover the whole of Yorkshire and the North East. It also has offices in York, Doncaster and Middlesbrough. The firm offers practical advice and solutions to all types of businesses, individuals and creditors, often enabling formal insolvency to be avoided. Headquartered in County Durham, United Kingdom, Assist Maintenance Services Limited provides labor services. BENJYS GROUP: Taps Deloitte & Touche to Administer Assets --------------------------------------------------------- Nicholas Guy Edwards and Lee Antony Manning of Deloitte & Touche LLP were appointed joint administrators of Benjys Group Holdings Limited (Company Number 04006739), BGL Realisations Limited (Company Number 01975878) and BDL Realisations Limited (Company Number 04840882) on July 14. 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 London, Benjys Group Holdings Limited, BGL Realisations Limited and BDL Realisations Limited are sandwich retailers. BOLTON SIGNS: Brings In Administrators from Cresswall ----------------------------------------------------- Gordon Craig and Daniel Paul Hennessy of Cresswall Associates Limited were appointed joint administrators of Bolton Signs Contractors Limited (Company Number 02575303) on June 22. The administrators can be reached at: Cresswall Associates Limited West Lancashire Investment Centre Maple View Whitemoss Business Park Skelmersdale Lancashire WN8 9TG United Kingdom Tel: 01695 712683 Bolton Sign Contractors Limited can be reached at: Unit 4 Bradshaw Works Printers Lane Bolton BL2 3DW United Kingdom Tel: 01204 594 700 Fax: 01204 595 424 BURALL LIMITED: Appoints Grant Thornton as Administrators --------------------------------------------------------- Andrew David Conquest and Ian Stewart Carr of Grant Thornton U.K. LLP were appointed joint administrators of Burall Limited (Company Number 02215687) on July 13. 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. Headquartered in Wisbech, United Kingdom, Burall Limited supplies print and packaging products. BURGESS BOOKS: Creditors Opt to Voluntarily Liquidate Assets ------------------------------------------------------------ Robert Day of Robert Day and Company Limited was appointed Liquidator of Burgess Books (Hitchin) Limited after creditors opted on May 18 to voluntarily wind up the company. The company can be reached at: Burgess Books (Hitchin) Limited 1 Churchyard Hitchin Hertfordshire SG5 1HR United Kingdom Tel: 01462 452 108 Fax: 01462 452 108 Web: http://www.hitchin-directory.co.uk/ http://www.lion-publishing.co.uk/ CENTRAL CRANE: Names Alisdair Findlay as Administrator ------------------------------------------------------ Alisdair J. Findlay of Findlay James was appointed administrator of Central Crane & Hoist Limited (Company Number 03763029) on July 13. The administrator can be reached at: Findlay James Saxon House Saxon Way Cheltenham Gloucestershire GL52 6QX United Kingdom Tel: 01242 576555 Fax: 01242 576999 E-mail: ajf@finjam.com Headquartered in West Midlands, United Kingdom, Central Crane & Hoist Limited is engaged in crane hire. CONSTELLATION BRANDS: Moody's Rates Credit Facilities at Low-B -------------------------------------------------------------- Moody's Investors Service assigned a (P) Ba2 rating to Constellation Brands, Inc.'s new shelf and concurrently, a Ba2 rating to Constellation's new US$500 million senior unsecured note, due 2016. Constellation's existing ratings are not affected by these actions, and have been affirmed. The ratings outlook remains negative. The notes will be fully and unconditionally guaranteed by the subsidiaries that are guarantors under Constellation Brands senior bank credit facility. Proceeds from the debt issuance are to be used to reduce a corresponding amount of borrowings under the revolver and permanent reduction in term loans. Moody's assessment of Constellation's liquidity remains unchanged given that free cash flow is expected to be pressured throughout the next twelve months thus offsetting the benefits of the refinancing. Moody's previous rating action on Constellation was the June 15 rating affirmation and assignment of bank facility ratings Following the Vincor acquisition. Constellation's ratings remain constrained by its aggressive acquisition strategy, which gives rise to considerable integration and event risk and high pro forma financial leverage. Offsetting these risks are: -- Constellation's scale and market diversification, -- its broad portfolio of brands covering the wine, spirits and imported beer categories at all price points, and -- franchise strength and growth potential, and solid profitability and efficiency. The ratings also consider the company's demonstrated ability to quickly integrate acquisitions, repay debt and restore credit metrics. Leverage improvement following the most recent acquisition will be further delayed due to the company's recently announced restructuring program Fiscal 2007 Wine Plan, which will reduce cash flow due to one time cash charges of approximately US$40 million and increased capital spending of approximately US$25 million. These projects are expected to reduce net operating expenses by approximately US$5 million in fiscal 2008 and by more than US$15 million annually beginning in fiscal 2009. Despite the shortfall in expected free cash flow to debt levels, the ratings affirmation reflects Moody's belief that such tightening should be temporary given the longer term benefit of the announced restructuring plan. The negative ratings outlook continues to reflect Moody's concern about Constellation's aggressive acquisition strategy, integration risk, and the resulting pressures on its financial and business profile. Any further deviation from current financial or strategic expectations could result in a downgrade of the ratings. Upward rating movement - absent an exogenous event - is unlikely at this time. Stabilization of the outlook could result over time from evidence that the company has successfully integrated Vincor, sufficiently paid down debt and is committed to sustained levels of improved credit metrics. Ratings assigned: Shelf ratings: -- Senior unsecured: (P) Ba2; -- Subordinated: (P) Ba3; -- Preferred stock: (P) B1; and -- US$500 million senior unsecured debt issuance due 2016: Ba2. Ratings affirmed: -- US$3.5 billion secured (stock pledge only) bank credit facilities consisting of a US$1.2 billion Term Loan A due June 2011: Ba2; -- US$1.8 billion Term Loan B due June 2013: Ba2; -- US$500 million revolving credit facility due June 2011$3.5 billion senior secured bank facilities: Ba2; -- US$200 million 8% senior unsecured notes, due 2008: Ba2; -- GBP80 million 8.5% senior unsecured notes, due 2009: Ba2; -- GBP75 million 8.5% senior unsecured notes, due 2009: Ba2; -- US$250 million 8.125% senior subordinated notes, due 2012: Ba3; -- Corporate Family Rating: Ba2; and -- The SGL-2 Speculative Grade Liquidity rating. Headquartered in Fairport, New York, Constellation Brands, Inc. is a leading international producer and marketer of beverage alcohol brands with a broad portfolio across the wine, spirits, and imported beer categories. For the fiscal year ended February 28, 2006, consolidated net revenue was approximately US$4.6 billion. Vincor International Inc. is one of the world's top ten wine companies with revenue for the twelve months ended Dec. 31, 2005 exceeding C$724 million. CORBY WINDOWS: Taps Baker Tilly to Administer Assets ---------------------------------------------------- Graham Paul Bushby, Bruce Alexander Mackay and Michael David Rollings of Baker Tilly were appointed joint administrators of Corby Windows Limited (Company Number 05187442), Corwin Limited (Company Number 02669417) and Rockingham Glass Limited (Company Number 02860823) on July 13. 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 Northamptonshire, United Kingdom, Corby Windows Limited, Corwin Limited and Rockingham Glass Limited -- http://www.cwg-uk.com/-- is engaged in windows installation. DESIGN & DISPLAY: Hires Atherton Bailey as Administrators --------------------------------------------------------- Macolm Peter Fillmore and Ranjit Bajjon of Atherton Bailey LLP Were appointed joint administrators of Design & Display Systems Limited (Company Number 04647038) on July 12. Headquartered in West Sussex, Atherton Bailey -- http://www.athertonbailey.com/-- is a U.K. insolvency practice with an innovative and effective approach to tackling both business rescue and recovery and personal financial problems. Design & Display Systems Limited can be reached at: Bridge House 181 Queen Victoria Street London EC4V 4DZ United Kingdom Tel: 020 8652 5221 DIVINE INNOVATION: Hires Joint Liquidators from PKF (UK) LLP ------------------------------------------------------------ Edward T. Kerr and Ian J. Gould of PKF (U.K.) LLP were appointed Joint Liquidators of Divine Innovation Limited on May 12 by resolutions of members and creditors. The company can be reached at: Divine Innovation Limited 38 Countesthorpe Road Wigston Leicestershire LE184PF United Kingdom Tel: 0116 247 7105 Fax: 0116 277 3419 Web: http://www.divineinnovations.co.uk/ EURO MEDICARE: Brings In Begbies Traynor as Administrators ---------------------------------------------------------- D. F. Wilson and J. N. R. Pitts of Begbies Traynor were appointed joint administrators of Euro Medicare Clinic Ltd. (Company Number 03599073) on July 11. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Newcastle Upon Tyne, United Kingdom, Euro Medicate Clinic Ltd. -- http://www.emc-ne.co.uk/-- is a private medical clinic. EUROTUNNEL GROUP: Paris Court Appoints Judicial Administrators -------------------------------------------------------------- The Paris Commercial Court appointed Maitre Laurent Le Guerneve and Maitre Emmanuel Hess as Judicial Administrators for Eurotunnel Group. They are jointly responsible for assisting the group's management in order to present to the Court and the Creditors a recovery plan for the business. As previously reported, Eurotunnel obtained on Aug. 2 an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). The procedure is designed to protect 17 of the companies, which form Eurotunnel, from their creditors while seeking to facilitate the design and implementation of a restructuring plan necessary for Eurotunnel to carry on as a going concern. Such plan could result from ongoing negotiations with Eurotunnel's lenders. The court has also appointed Maitre Jean-Claude Pierrel and Maitre Valerie Leloup-Thomas as Judicial Representatives to: -- represent creditors; -- oversee the compilation of the complete list of Eurotunnel's liabilities; and -- audit the accuracy of claims with the possibility of only admitting part thereof and/or contest some of them. The court designated Bernard Soutumier as overseeing judge (juge-commissaire) and Jean-Philippe Klotz as deputy. Mr. Soutumier is tasked to ensure a speedy application of the procedure and the protection of the interests of all the parties. The procedure is initially opened for a period of six months. The Judicial Administrators will contact known creditors to invite them to declare their debts. Creditors are informed that they must declare their debts to the Judicial Representatives within two months of the publication date of the judgment. Creditors outside France are provided with a further two months to do so. By virtue of Council Regulation (EC) 1348/2000 of May 29, 2000, the judgments of the Paris Commercial Court are applicable in respect of companies within Eurotunnel, which are registered in England & Wales. Restructuring Proposals Eurotunnel had turned down, on June 27, a restructuring plan prepared by a group of secured bondholders led by Deutsche Bank AG asserting that it requires too much debt and gives too much to bondholders. The bondholders' restructuring plan, which values the company at EUR7.99 billion, aimed to reduce 60% of total debt to EUR3.7 billion and issue a EUR2.175 billion convertible hybrid note with a 4% coupon. The plan rivaled the preliminary restructuring agreement backed by Eurotunnel, Goldman Sachs Group Inc., Macquarie Bank Ltd. and Barclays PLC. The plan dated May 23, valued the company at around EUR7.03 billion and included a EUR1.5 billion hybrid issue with a 6% to 9% coupon and would reduce debt by 54%. Under the agreement, bondholders will get a GBP75 million return for their GBP1.9 billion bond holdings. On July 12, Eurotunnel presented an ultimate proposal to reach a compromise between the May 23 preliminary restructuring agreement and the demands made by its subordinated creditors represented by ARCO. The company claimed that the majority of these demands were satisfied by the substantial efforts jointly made by the company and the Ad Hoc Committee, which represents the group's senior creditors. The subordinated creditors, led by Deutsche Bank, rejected this final attempt to reach a consensual deal. The Joint Board of Eurotunnel unanimously decided to cancel the General Meetings of Shareholders of Eurotunnel PLC and Eurotunnel SA, planned for July 27. Absent a final agreement, the Group may default in January 2007 under a 1998 debt agreement. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. * * * Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. FIREFLY SPECIAL: J. Harvey Madden Leads Liquidation Procedure ------------------------------------------------------------- J. Harvey Madden was appointed Liquidator of Firefly Special Vehicles Limited on May 8 by resolutions of members and creditors. The company can be reached at: Firefly Special Vehicles Limited 1 Regent Court Walkerville Industrial Estate Catterick Garrison North Yorkshire DL9 4XE United Kingdom Tel: 01748 831 177 Fax: 01748 831 188 Web: http://www.firevehicles.co.uk/ FLEXTRONICS INT'L: Earns US$85 Million in First Quarter 2006 ------------------------------------------------------------ For the first quarter ended June 30, 2006, Flextronics International Ltd. reported net sales from continuing operations of US$4.1 billion, which represents an increase of US$236 million, or 6%, over the first quarter ended June 30, 2005. "There has been a reacceleration of significant growth in our core EMS business, which includes design, vertically-integrated manufacturing services, components and logistics," Mike McNamara, Flextronics' chief executive officer said. "Fiscal 2006 was a very strong year in terms of incremental business wins from both new and existing customers. As a result, we exceeded revenue and earnings expectations in the June quarter and have increased our revenue growth rate expectations for fiscal 2007 to approximately 25%." Excluding intangibles amortization, restructuring and other charges which includes stock based compensation, net income for the first quarter ended June 30, 2006 increased 4% to US$104 million, compared to US$100 million, in the year ago quarter. After-tax amortization, restructuring and other charges which includes stock based compensation amounted to US$19 million in the current quarter compared to US$41 million in the year ago quarter. GAAP net income amounted to US$85 million, in the first quarter ended June 30, 2006, compared to US$59 million, in the year ago quarter. Headquartered in Singapore, Flextronics International Ltd. -- http://www.flextronics.com/-- provides electronics manufacturing services through a network of facilities in over 30 countries worldwide. Its European locations include operations in Finland, Hungary, Sweden and the United Kingdom. * * * As reported in the Troubled Company Reporter on Nov 16, 2004, Moody's Investors Service assigned a Ba2 rating to Flextronics International Ltd.'s US$500 million 6.25% senior subordinated notes, due 2014. At the same time, the company was assigned a liquidity rating of SGL-1, reflecting Flextronics' significant on-hand liquidity, unfettered access to the sizeable US$1.1 billion revolver and the expectation for generating moderately positive free cash flow (pre-Nortel payments) over the next twelve months. As reported in the Troubled Company Reporter on Nov. 12, 2004, Standard & Poor's Ratings Services assigned its 'BB-' rating to Flextronics' private offering of US$500 million, senior subordinated notes due 2014. The notes were offered under Rule 144A, with registration rights. Proceeds of the offering will be used to repay outstanding debt under its revolving credit facilities and for general corporate purposes. The company's 'BB+/Stable/--' corporate credit rating was affirmed. FORD MOTOR: Investing US$1 Billion in Michigan Facilities --------------------------------------------------------- Ford Motor Company will increase the pace of new product introductions and respond to fast-changing consumer-buying trends as it accelerates its Way Forward turnaround plan and considers investing up to US$1 billion in several of the company's Michigan facilities. Mark Fields, Ford's president of the Americas, disclosed, on Aug. 9, 2006, to industry leaders at the Center for Automotive Research's 41st annual Management Briefing Seminars. "We are rebuilding our business for the future with an emphasis on more new products faster -- and that includes more customer features and advanced technologies throughout our entire lineup," said Mr. Fields. "Even as we reduce our overall capacity in line with demand and make the tough but necessary cutbacks throughout our business to secure our future, we are not retreating one bit from the necessary investments to bring out more products for our customers. The competitive landscape and our future demand it." Investments on Manufacturing Expansion & New Products Ford's potential US$1 billion investment would be dedicated to expanding flexible manufacturing at several Ford facilities in Michigan and be used for the research and development of future products, advanced powertrain technologies and hybrid vehicles. The investment is being considered in partnership with a Michigan Economic Development Corporation incentive package designed to encourage investment in the state and retain jobs. "Today, the auto industry represents the single greatest engine of economic activity in the world. And nowhere is the impact more profound than here in our back yard," Mr. Fields said. "Ford is proud to be part of Michigan, and our work to keep Ford's future part of this great state's future underscores our serious commitment to the people and the communities that have helped make us great for more than a century." The new investments are not yet finalized, Mr. Fields said, but Ford will continue to work with the state and the company's various facilities, and make decisions as part of its Way Forward turnaround plan. "There is no vision for Michigan's new economy that does not include Ford cars and trucks designed, engineered and made in Michigan," said Michigan Governor Jennifer M. Granholm. "For more than a century, Ford and the state of Michigan have been partners, and today we are affirming that our partnership will continue far into the future." More New Products Faster As part of plans to accelerate its turnaround, Ford will emphasize the introduction of new products as core to going "further and faster" throughout its business. "We'll have more to say on the specifics of what we're accelerating in September. But I can confirm that our plans include more new products, features and technologies throughout our lineup," said Mr. Fields. "We have nine new Ford and Lincoln Mercury products going on sale in the next six months alone, and we are rebuilding our business for the future with an emphasis on new products." Among the new products are the Ford Shelby GT -- on sale in January -- and Lincoln MKS flagship sedan, which will arrive in showrooms in 2008. Ford Shelby GT The 4.6-liter, 325-horsepower Ford Shelby GT will occupy a niche between the Mustang GT and the Ford Shelby GT500 both in performance and appearance. It is a retail version of the Ford Shelby GT-H Mustang developed for Hertz that was the surprise hit of the 2006 New York International Auto Show. "We know the combination of Mustang and Shelby is magic, and we proved it again when we revealed the Ford Shelby GT-H. The car received such rave reviews that our dealers and customers asked for a version of their own," Mr. Fields explained. "We listened, and we're delivering." The Ford Shelby GT will be on sale in January. Lincoln MKS The Lincoln MKS full-size flagship sedan will be based on the concept vehicle first shown at the North American International Auto Show in January. "The Lincoln MKS will take Lincoln craftsmanship and comfort beyond anything we've built before," Mr. Fields said. "Its design communicates power, motion and speed, and it will be packed with more technology and features than any Lincoln before it." One new technology on the Lincoln flagship comes straight from Ford racing and the Ford GT: a capless fuel filler. It eliminates the inconvenience of forgetting to put the gas cap back on after refueling and is better for the environment because no gas fumes escape. Ford's industry first technology that eliminates the fuel filler cap was originally put into production on the Ford GT and is set to debut across the company's product lineup starting with the 2008 Lincoln MKS. The capless system is a tangible example of how Ford is developing innovative product solutions to satisfy the unmet needs of consumers. The Lincoln MKS will be the next major step in establishing Lincoln as America's luxury brand. Lincoln is building momentum -- with retail sales up 8% for the first half of 2006. The new Lincoln MKS flagship is designed to continue to introduce a new face of Lincoln to the American public, building on the hallmarks of design, a business class experience and a smooth, confident ride. Fuel Economy Ford has identified two customer trends that will take future products across the auto industry into new directions. The first is a growing, worldwide demand for sustainability and a smart energy policy. The second is a set of profound demographic changes already affecting the auto industry that will accelerate during the next decade. "Consumers are speaking loud and clear. They're telling us that the social and environmental trade-offs associated with automobiles are increasingly unacceptable," said Mr. Fields. "They want cleaner, safer, more efficient vehicles that don't compromise on function or value. The auto companies best able to deliver vehicles that meet these needs will reap the rewards of increased market share and the financial rewards of technology innovation and leadership." Ford research shows that the percentage of Americans who say they are very concerned about the environment is approximately 70%, up nearly 10 points in the last five years. Fuel efficiency is now among the top three purchase drivers, along with quality and safety. The rapid rise of fuel prices also has accelerated another trend that began with the aging of the Baby Boomer generation, Mr. Fields said. "Baby Boomers are downsizing every aspect of their lives - including their homes - and they are moving to smaller cars, crossovers, small SUVs and small premium utilities," Mr. Fields added. "They're also buying fewer medium and large SUVs -- a trend that actually started in 2003 and accelerated last year, when gas prices increased." This population shift will result in dramatic growth for crossovers and small cars, as well as for premium utility vehicles, Fields explained. People-movers -- including medium and large SUVs and minivans -- will decline because there will be a smaller pool of family-oriented buyers purchasing vehicles that their aging parents had been driving. "The lesson we take from this tectonic shift is that listening to our customers has never been more important. We as an industry can't sit back and complain about these changes. We have to act on them - and quickly," Mr. Fields said. "The old saying 'If you build it, they will buy it' needs to be put to rest. 'If they will buy it, we will build it' is the way we need to approach the future." Products for New Customers and a Changing Marketplace With the fast-changing marketplace and the rise in demand for more fuel-efficient vehicles, Ford has kicked off its new-model year with a lineup of new cars, crossovers, hybrids, SUVs and trucks that puts the company in its best position ever to attract new customers. "Ford never has been in a better position than this model year to compete for customers in an environment of rising gas prices and higher demand for more power, more performance and more features," said Mr. Fields. "We're also leading the way with bold American designs and innovations in our new vehicles hitting the market this summer and fall." Key new products include: * Ford Edge and Lincoln MKX crossovers, which are expected to shake up this fast growing market when they go on sale in November. * Ford Shelby GT500, which is now on sale as the most powerful production Mustang ever. * Lincoln MKZ, with its new 3.5-liter V-6 engine -- which eventually will power one of every five Ford and Lincoln Mercury vehicles. * Ford Expedition, Expedition EL and Lincoln Navigator, which go on sale in September, and the new Lincoln Navigator L in December. The new SUVs offer more standard safety equipment, best-in-class towing for Expedition, a usable third row and additional cargo space. * Ford Explorer Sport Trac, which is now on sale with one of the segment's only V-8 engines. * Ford F-150 with increased towing to a best-in-class 10,500 pounds, new FX2 Sport edition and new 6.5-foot box for the Super Crew. * New all-wheel-drive versions of the popular Ford Fusion, Mercury Milan and Lincoln MKZ -- a technology that more than half of new buyers say they want in their next vehicle. Ford also this year is: delivering more standard safety equipment on more vehicles, with a focus on rapidly increasing standardization of side air bags and side air curtains; doubling the number of vehicles available with DVD-based navigation systems; and quadrupling the number of vehicles available with SIRIUS satellite radio. Drivers can now easily plug their iPod into the car thanks to new audio features being introduced in new 2007-model Ford and Lincoln Mercury vehicles. Ford also is responding to the skyrocketing customer demand to bring electronic devices into cars and trucks by building in iPod connectivity in half of the Ford and Lincoln Mercury lineup. The company predicts that iPod and other MP3 player sales will reach 132 million units in 2009 -- more than double the 57.7 million sold in 2005. For the 2007-model year, built-in auxiliary audio-input jacks will be offered on the Ford Edge, Explorer, Expedition, Mustang, Fusion, Sport Trac, Ranger, F-150, Mercury Milan, Mountaineer, Lincoln MKX, Lincoln MKZ, Navigator and Lincoln Mark LT. The jacks allow customers to bring any iPod or other MP3 player with a standard 3.5-millimeter audio output into their vehicle and play it through the audio system. In addition, early next year, Ford and Lincoln Mercury dealers throughout the U.S. will begin offering Ford's TripTunes Advanced audio system -- an iPod integration feature that provides drivers with top sound quality and recharging at the same time. TripTunes Advanced allows the driver to store the iPod in the vehicle's glove box and select music using the steering wheel or radio controls -- including shuffling songs and skipping between tracks and play lists. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE: F) -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With about 300,000 employees and more than 100 plants worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on July 24, 2006, Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating of Ford Motor Credit Company to Ba3 from Ba2. The Speculative Grade Liquidity rating of Ford has been confirmed at SGL-1, indicating very good liquidity over the coming 12-month period. Moody's said the outlook for the ratings is negative. GSD SECURITY: Appoints James Bonney as Liquidator ------------------------------------------------- James Bonney of BN Jackson Norton was appointed Liquidator of GSD Security Services Limited on May 11 after creditors agreed to voluntarily wind up the company. The company can be reached at: GSD Security Services Limited Unit 5F Kendal Road Shrewsbury Shropshire SY1 4EN United Kingdom Tel: 01743 465 115 Fax: 01753 465 116 Web: http://www.gsd-security.net/ GRANDACTION LIMITED: Hires Liquidator from Butcher Woods -------------------------------------------------------- Roderick Graham Butcher of Butcher Woods was appointed Liquidator of Grandaction Limited at an extraordinary general meeting on May 16. The appointment was confirmed at a meeting of creditors held on the same day. The company can be reached at: Grandaction Limited Unit 3 Stamford Street Stourbridge West Midlands DY8 4HR United Kingdom Tel: 01384 442 525 Fax: 01384 444 959 GREAT NORTH: Sea Containers Extends Financial Support ----------------------------------------------------- Sea Containers Ltd. is providing certain financial support arrangements for its UK rail subsidiary, Great North Eastern Railway. Under the franchise agreement, there is a bond in favor of the U.K. Department for Transport (DfT) securing GNER's performance under the agreement. This can be used by the DfT in limited circumstances for specific purposes. A bank has issued the bond pursuant to a facility with GNER, which the Company has guaranteed. The amount of the performance bond is currently US$27.5 million (GBP15.3 million) rising to US$51.7 million (GBP28.7 million) in May 2007. It is a condition of the franchise that GNER has in place a US$54 million(GBP30 million) standby credit facility during the term of the franchise, callable by GNER in the event of liquidity need. The Company has provided this facility to GNER, but it is undrawn as of press time. It is also a condition of the franchise that GNER has an US$18 million(GBP10 million) overdraft facility to provide additional working capital if needed. This facility is provided by a bank and guaranteed by the Company. To date, no funds had been drawn. GNER's Underperformance Sea Containers has disclosed that GNER has underperformed the financial projections in its franchise plan. The most important variance to date arises from a shortfall in passenger revenue, but additional pressure on financial performance is expected from higher costs as well. Passenger Revenue In the first 14 months of the new franchise to June 30, 2006, several significant events outside GNER's control have materially adversely affected GNER's financial results over that period and its future prospects over the franchise period. These include: -- the terrorist activity in London in July 2005; -- the decision by the U.K. Office of Rail Regulation to allow additional open access operators to compete with GNER; -- a weakening in the U.K. GDP growth; -- significant increases in electricity prices; and -- improvement in Network Rail's performance. Passenger revenue for the period May 1, 2005 to June 30, 2006 was US$918 million (GBP510 million; unaudited). This represents a 3.3% increase compared to the projected 9.9% increase in the franchise plan, causing passenger revenue to be US$60 million (GBP33 million) lower than projected for the 14-month period. GNER believes that just more than half of the shortfall is due to the July 2005 terrorist activity in London. GNER was disproportionately affected by the terrorist activity compared to other UK rail operators due to GNER's greater dependence on the long-distance travel market to and from London and the focus of the terrorist activity around Kings Cross Station in London. A claim has been submitted to the DfT for the partial recovery of lost revenue under the force majeure mechanism of the franchise agreement. This mechanism will not compensate GNER fully, however, and the DfT has not concluded its review of that claim GNER expects that its revenue projections may also be materially adversely affected in the future by the ORR's decision in connection with open access arrangements for competitors, recently upheld by the High Court in London. Infrastructure Payments GNER's ability to meet its original projections will also be materially impacted by the variable infrastructure payments to or from Network Rail, which are largely outside GNER management control. The two components of the infrastructure payment relates to: (1) payments to GNER by Network Rail for its performance failure or disruption to timetable through planned maintenance work by Network Rail; and (2) payments from GNER to Network Rail for providing improved rail infrastructure performance. Network Rail's performance is now expected to be better than anticipated in GNER's franchise plan so that net payments to Network Rail should continue at a higher level than planned. Electricity Charges A further issue, which is likely to affect materially GNER's profitability relates to electricity charges. These rose in April 2006 by 26%, considerably more than forecast in GNER's franchise plan. GNER has also received initial notification that a further 65% increase is likely to occur in April 2007, far in excess of the assumptions made at the time of the bid. Taken together the 2006 increase and expected 2007 increase would have an average annual cost impact compared with the original franchise plan assumption of approximately US$20 million (GBP11 million) per annum from April 2007. GNER understands there is a further increase possible in April 2008. Although GNER management has begun to implement initiatives to reduce aggregate controllable costs, these costs are not sufficiently large to provide scope for improvements, which could significantly offset the potential shortfall in profitability relating to the factors described above. In light of this, GNER currently expects to make a profit or loss result much lower than the net profit margin before tax of 3.75% originally estimated in its plan. In order to make dividend payments to the Company, GNER must earn distributable profits and also meet certain financial criteria under the franchise agreement. GNER does not presently expect to make any dividend payments for the short to medium term. The Company has raised with the DfT the financial impact on GNER of these adverse factors and will discuss them further, although the timing and outcome of these discussions with the DfT are uncertain, as is the future value of the GNER franchise to Sea Containers. Under the direction of Bob MacKenzie, who becomes Executive Chairman of GNER on Aug. 31, GNER will continue to seek to grow revenue and reduce operating costs. In the meantime, GNER continues to exceed its operating performance criteria and delivers excellent customer service. About GNER Headquartered in London, United Kingdom -- Great North Eastern Railway (GNER) Limited -- http://www.gner.co.uk/-- operates high-speed express train services on the East Coast Main Line. Most of their trains run between London King's Cross and either Edinburgh Waverley or Leeds. About Sea Containers Headquartered in London, United Kingdom, Sea Containers -- http://www.seacontainers.com/-- engages in passenger and freight transport and marine container leasing. The Bermuda registered company is primarily owned by U.S. shareholders and its common shares have been listed on the New York Stock Exchange (SCRA and SCRB) since 1974. * * * In June 2006, Moody's Investors Service downgraded the senior unsecured ratings and confirmed the senior secured rating of Sea Containers -- Senior Unsecured to Caa3, Senior Secured at B3. Moody's said the outlook is negative. The downgrades were due to the increased probability of a payment default following Sea Containers' disclosure that it is unable to confirm whether it will pay the $115 million principal amount of 10-3/4% senior unsecured notes due October 2006. As reported in the Troubled Company Reporter on May 4, 2006, Standard & Poor's Ratings Services lowered its ratings on Sea Containers, including lowering the corporate credit rating to 'CCC-' from 'CCC+'. All ratings remain on CreditWatch with negative implications. The rating action followed the company's announcement that it is continuing to evaluate a range of strategic and financial alternatives, including the "appropriate level of debt capacity, with the intent to engage the public note holders and other stakeholders." GREAT NORTH: Bleak Prospect Prompts Sea Container to Mull Sale -------------------------------------------------------------- Train operator Great North Eastern Railway is reportedly a target of a takeover deal by a rival, The Scotsman says. Sea Containers Ltd., GNER's parent, admitted the train operator has been underperforming financially -- particularly a shortfall in passenger revenue and higher costs. Sea Containers, The Scotsman reports, said it might place GNER on the sale table. Following the announcement, Sea Containers received approaches from a number of potential buyers, including some U.K. transport companies. According to the report, a rival company -- likely FirstGroup, Stagecoach, Virgin, or National Express -- also made an approach. Aside from the sale, Sea Container is also reviewing other options that include cost cutting. Bob MacKenzie, Sea Container's CEO and GNER's executive chairman, mulls asking the Department for Transport a discount for its GBP1.3 billion franchise fee over the next ten years, The Scotsman adds. The DfT, however, will not renegotiate railway franchises. "There cannot be a re-negotiation, but there are many ways of skinning a cat and it is not beyond the DfT to think if a way that this can be done without breaking the rules," an industry source told the Scotsman. Should the mulled sale goes on, Sea Container might not be able to sell GNER at a favorable price, due to the train operator's declining profitability, Douglas Friedli of The Scotsman says. GNER could also return its franchise to the DfT, but would incur a GBP15-million penalty. About GNER Headquartered in London, United Kingdom -- Great North Eastern Railway (GNER) Limited -- http://www.gner.co.uk/-- operates high-speed express train services on the East Coast Main Line. Most of their trains run between London King's Cross and either Edinburgh Waverley or Leeds. About Sea Containers Headquartered in London, United Kingdom, Sea Containers -- http://www.seacontainers.com/-- engages in passenger and freight transport and marine container leasing. The Bermuda registered company is primarily owned by U.S. shareholders and its common shares have been listed on the New York Stock Exchange (SCRA and SCRB) since 1974. * * * In June 2006, Moody's Investors Service downgraded the senior unsecured ratings and confirmed the senior secured rating of Sea Containers -- Senior Unsecured to Caa3, Senior Secured at B3. Moody's said the outlook is negative. The downgrades were due to the increased probability of a payment default following Sea Containers' disclosure that it is unable to confirm whether it will pay the $115 million principal amount of 10-3/4% senior unsecured notes due October 2006. As reported in the Troubled Company Reporter on May 4, 2006, Standard & Poor's Ratings Services lowered its ratings on Sea Containers, including lowering the corporate credit rating to 'CCC-' from 'CCC+'. All ratings remain on CreditWatch with negative implications. The rating action followed the company's announcement that it is continuing to evaluate a range of strategic and financial alternatives, including the "appropriate level of debt capacity, with the intent to engage the public note holders and other stakeholders." INGLEY CONSTRUCTION: Names Liquidator to Wind Up Business --------------------------------------------------------- A. Turpin of Poppleton & Appleby was appointed Liquidator of Ingley Construction Limited at an extraordinary general meeting on May 15. Subsequently, creditors confirmed the appointment on the same day. The company can be reached at: Ingley Construction Limited 2 Old Road Branston Burton-on-Trent Staffordshire DE143ET Tel: 01283 512 605 J A LEESON: Brings In Liquidator from Mazars LLP ------------------------------------------------ Creditors of J A Leeson Limited ((t/a Simkins & Leeson) appointed Martin Dominic Pickard of Mazars LLP as Liquidator of the company at an extraordinary general meeting on May 16. The company can be reached at: J.A. Leeson Limited Ivinghoe Business Centre Blackburn Road Houghton Regis Dunstable Bedfordshire LU5 5BQ United Kingdom Tel: 01582 472 933 J.F.BARDOLPH: Appoints Liquidator from Geoffrey Martin & Co. ------------------------------------------------------------ Stephen Goderski of Geoffrey Martin & Co. was appointed Liquidator of J.F. Bardolph & Partners Limited (t/a Bardolph Aircraft Tools) on May 17 by resolutions of members and creditors. J.F. Bardolph & Partners Limited Silverthorne Road London SW8 3HE United Kingdom Tel: 020 7622 4435 Fax: 020 7720 4852 Web: http://www.bardolph.co.uk/ LIQUID IT: Creditors Confirm Joint Liquidators' Appointment ----------------------------------------------------------- Creditors of Liquid IT Limited confirmed the appointment of Nigel Ian Fox and Carl Stuart Jackson of Tenon Recovery as Joint Liquidators of the company on May 4. The company can be reached at: Liquid IT Limited Bristol & West House Post Office Road Bournemouth Dorset BH1 1BL United Kingdom Tel: 0870 754 7843 Web: http://www.liquidittech.co.uk/ LOADBACK LIMITED: Nominates Liquidator from Stones & Co. -------------------------------------------------------- Gary Stones of Stones & Co. was nominated Liquidator of Loadback Limited at an extraordinary general meeting of members on May 17. The company can be reached at: Loadback Limited Unit 8B Bedwas House Industrial Estate Bedwas Caerphilly Mid Glamorgan CF838DW United Kingdom Tel: 029 2045 2111 M W PENSIONS: Calls In Liquidator from Butcher Woods ---------------------------------------------------- The appointment of Roderick Graham Butcher of Butcher Woods as Liquidator of M W (Pensions & Investments) Limited was confirmed at a meeting of creditors on May 16. The company can be reached at: M W (Pensions & Investments) Limited 8-9 Lovat Lane London EC3R8DW United Kingdom Tel: 020 7621 1133 Fax: 020 7621 0203 MACKENZIE ASBESTOS: Taps David Paul Hudson to Liquidate Assets -------------------------------------------------------------- David Paul Hudson of Begbies Traynor was appointed Liquidator of MacKenzie Asbestos Air Monitoring Limited on May 16 after creditors decided to voluntarily wind up the company. The company can be reached at: MacKenzie Asbestos Air Monitoring Limited Benfleet Business Centre 184 High Road Benfleet Essex SS7 5LD United Kingdom Tel: 01268 795 100 Fax: 01268 795 119 MIDLANDS TRADING: Joint Liquidators Take Over Operations -------------------------------------------------------- Philip Anthony Brooks and Julie Willetts of Blades Insolvency Services were appointed Joint Liquidators of Midlands Trading Limited on May 17 by resolutions of members and creditors. The company can be reached at: Midlands Trading Limited Uttoxeter Road Mickleover Derby DE3 9GE United Kingdom Tel: 01332 518 096 MOBILE PHONE: Names Alan Simon Liquidator ----------------------------------------- Alan Simon was appointed Liquidator of Mobile Phone (U.K.) Limited after creditors resolved on May 17 to voluntarily wind up the company. The company can be reached at: Mobile Phone (U.K.) Limited 377 Mare Street London E8 1HR United Kingdom Tel: 020 8525 9445 MORTONS LABELS: Creditors Confirm Voluntary Liquidation ------------------------------------------------------- Creditors of Mortons (Labels) Limited confirmed on May 17 resolutions for voluntary liquidation and the appointment of Andrew Philip Wood and John Russell of The P&A Partnership as Liquidators of the company. The company can be reached at: Mortons (Labels) Limited Unit 11 Denny Road King's Lynn Norfolk PE304HG United Kingdom Tel: 01553 763 847 Fax: 01553 766 182 MOSAIC CARE: Taps Liquidator from Marlor Walls ---------------------------------------------- E. Walls of Marlor Walls was appointed Liquidator of Mosaic Care Services Limited on May 18 by resolutions of members and creditors. The company can be reached at: Mosaic Care Services Limited 174 Newcastle Road Sunderland SR5 1NW United Kingdom Tel: 01665 510 531 NOVELIS INC: Lenders Extend Waiver Period Until Sept. 18 -------------------------------------------------------- Lenders under Novelis Inc.'s Credit Agreement have agreed to extend until Sept. 18, 2006, the deadline for filing the company's 2005 Annual Report on Form 10-K and its 2006 first quarter report on Form 10-Q. The filing deadlines for these two reports had become accelerated to Aug. 18, 2006, following the receipt of an effective notice of default on July 21, in connection with the Company's Senior Notes due 2015. The Credit Agreement lenders also agreed to extend the deadlines for filing the Company's 2006 second and third quarter reports on Form 10-Q. The second quarter report will be due the earlier of 59 days after the receipt of a new notice of default, should one occur in connection with the second quarter filings, and Nov. 30, 2006. The third quarter report will be due the earlier of 30 days after the receipt of a new notice of default, should one occur in connection with the third quarter filings, and Dec. 29, 2006. Based in Atlanta, Georgia, Novelis Inc. (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. Novelis Europe provides its markets with value-added sheet and light gauge products through a network of 14 plants. The construction and industrial market represents Novelis Europe's largest end-use application. The company supplies plain and painted sheet for building products such as roofing, siding, panel walls and shutters. In addition, Novelis Europe is a global leader in the production of lithographic sheet, a specialized product requiring technical production. It is a leading supplier as well of foil and beverage can sheet in Europe, and is one of the major suppliers for ultra thin gauge foil for aseptic liquid packaging for milk and juices. And finally, Novelis is a leading supplier to the European transportation end-use market. Furthermore, Novelis is a leading recycler of aluminum with Europe's largest dedicated beverage can recycling plant at Latchford, U.K. * * * As reported in the Troubled Company Reporter on May 18, 2006, Moody's Investors Service placed the ratings of Novelis Inc., and its subsidiary, Novelis Corp., under review for possible downgrade. In a related rating action, Moody's changed Novelis Inc's speculative grade liquidity rating to SGL-3 from SGL-2. Novelis Corporation's Ba2 senior secured bank credit facility rating was placed on review for possible downgrade. Novelis Inc.'s Ba3 corporate family rating; Ba2 senior secured bank credit facility and B1 senior unsecured regular bond/debenture were placed on review for possible downgrade. PROACT UK: Creditors Resolve to Voluntary Liquidation ----------------------------------------------------- Creditors of Proact U.K. Limited resolved on May 9 to voluntarily wind up the company. Ian Franses of Ian Franses Associates was appointed Liquidator. The company can be reached at: Proact U.K. Limited Aura House 53 Oldridge Road London SW128PP United Kingdom Tel: 020 8672 8896 Fax: 020 8672 9848 SEA CONTAINERS: Restructuring Program Continues as Planned ---------------------------------------------------------- Sea Containers Ltd. is providing updates on its operations and financial position including its UK rail subsidiary, Great North Eastern Railway. The Company has not yet completed its 2005 annual report on SEC Form 10-K or its first and second 2006 quarterly reports on SEC Form 10-Q. Commenting on Sea Containers' current financial position, Bob MacKenzie, President and Chief Executive Officer, said: "Our priority is to tackle the underperforming operations, simplify and reduce the cost base and place the Company on a sound footing through necessary financial restructuring. GNER in particular faces significant challenges, as outlined below, and I believe the original projections for the franchise now appear optimistic. I intend to devote attention over the coming months to address this situation, spending time in the business and with the U.K. Government's Department for Transport. "Armed with the business plan which the Company has prepared over the past few months, we are now able to engage in dialogue with financial stakeholders and embark on the active phase of our restructuring program. We are pleased to have achieved the sale of Silja within the desired timeframe and that the disposal of other ferry and non-core assets is well underway. Both partners in the GE SeaCo joint venture are firmly focused on improving the competitiveness through reduced cost and improved technology. But the anticipation that we will not be able to pay the senior notes due on October 15, unless we have adequate working capital and can be sure of our ability to pay the other public notes maturing in subsequent years, puts a critical time pressure on the restructuring process. Although the seas are rough, we are navigating a route through this." Cash Flow during the First Six Months of 2006 Sea Containers' total consolidated cash position at June 30, 2006 was US$178 million. Of this amount, approximately US$79 million was restricted as security for obligations to third parties, and approximately US$57 million was held in subsidiaries and could not be remitted back to the Company for various legal, regulatory or bank covenant reasons. The combined US$136 million (US$79 million restricted plus US$57 million not readily available) is described herein as unavailable cash while the remaining US$42 million at June 30, 2006, is described as free cash. The Company has not applied this free cash to retire its public notes and is treating it as available to meet ongoing operating requirements. Management regards the measure of free cash as a useful indicator of liquidity while progressing its financial restructuring plans. At July 31, 2006, the Company's total cash was approximately $144 million, a reduction of $34 million from total cash of $178 million at June 30, 2006. Of the $144 million at July 31, 2006, $64 million was unavailable cash and $80 million was free cash. Unavailable cash has therefore reduced by $72 million, and free cash has increased by $38 million. The reduction in unavailable cash reflected principally the application of restricted cash of $51 million to repay partially one of the Company's secured container debt facilities. A further $7 million was paid from restricted cash to repay partially a second secured container debt facility. In addition, there was a release from unavailable cash to free cash of $14 million held within Silja on completion of the sale. The main contribution to the increase in free cash during July was $65 million from the sale of Silja, offset by payment of $14 million to settle the GE SeaCo arbitration with GE Capital and a $13 million net outflow for operating, interest and capital expenditure payments. Status of Ferry Sales As reported on July 19, 2006, the Company completed the sale of its Baltic ferry subsidiary Silja Oy Ab and the six vessels deployed on Silja's core routes. Sea Containers has separately completed the sale of the Walrus, Rapide and SuperSeaCat 1 for a total of $48 million, all of which was used to repay debt secured by the vessels Sea Containers is continuing its efforts to sell its remaining ferry assets and businesses and is in active dialogue with a number of parties regarding the sale of several of its vessels. To maximize value, the Company may decide to continue operating or chartering certain vessels for a period of time before ultimately selling them. The Company estimates that the ferry vessels shown in the table above are presently valued in a range $127 million to $137 million. At July 31, 2006, Sea Containers had $610 million of consolidated debt outstanding associated with these businesses: Business Debt Outstanding -------- ---------------- Rail (largely GNER) $15 Million Containers $140 Million Ferries $68 Million Public Notes $385 Million Other $2 Million ---------------- Total $610 Million In addition to the outstanding debt to financial institutions and public note holders, the Company has a $20 million unsecured liability to a shipyard that is due for payment by Sept. 29. Except for GNER, the Company is either the primary obligor or the guarantor of substantially all of this outstanding debt. Pursuant to a forbearance agreement signed earlier this year with one of its container banking syndicates, the Company formally granted a security interest over cash balances held on deposit with the banks over which the banks had legal rights of set off. The Company further agreed in exchange for continued forbearance to apply the pledged cash, after the completion of the Silja sale, to repay in part secured debt outstanding to the syndicate. Accordingly, after Silja was sold, the Company repaid approximately $51 million of debt secured by containers. The Company is in active discussions with a number of financial institutions to refinance its existing container debt facilities. The primary purpose of a refinancing would be to replace liquidity used to repay secured container debt following the Silja sale. The Company remains in default under many of its secured credit facilities due to breaches of certain financial covenants and other requirements contained in these facilities. The Company's secured and other credit facilities also generally include cross-default provisions so that non-compliance with a covenant in one secured credit facility constitutes a default under substantially all other credit facilities. No lender has taken any action to exercise remedies in respect of any events of default, and the Company is in continuing discussions with its remaining lenders regarding such defaults. The Company is also in default under various covenants in its public note indentures including failure to apply asset sale proceeds to retire public notes. As previously reported on June 12, 2006, the Company has not made an "excess proceeds offer" under those indentures to retire public notes. The Company's free cash balance at July 31, 2006 of $80 million included the benefit of approximately $100 million of excess proceeds as described in its news release of June 12, 2006. No action has been taken against the Company under the public note indentures. The Company has prepared a business plan which includes certain strategic and financial alternatives for the Company, including a potential refinancing or permanent restructuring of the Company's unsecured financial obligations. The Company has provided financial projections and other information under confidentiality agreements to advisors who act for an ad hoc committee of public note holders and, separately, to advisors for pension trustees. The Company intends in the next few weeks to begin discussions with these advisors in respect of a potential restructuring of the Company's unsecured financial obligations. The Company is due to pay the $115 million principal amount of its 10�% senior notes on October 15. Payment will not be made unless the Company concludes that it will be able to pay in full when due its other public notes maturing in 2008, 2009 and 2012 and all other unsecured creditors, and to retain sufficient working capital. The interest coupon on the Company's 7.875% senior notes due on August 15 will be paid. GNER's Underperformance Sea Containers has disclosed that GNER has underperformed the financial projections in its franchise plan. The most important variance to date arises from a shortfall in passenger revenue, but additional pressure on financial performance is expected from higher costs as well. Passenger Revenue In the first 14 months of the new franchise to June 30, 2006, several significant events outside GNER's control have materially adversely affected GNER's financial results over that period and its future prospects over the franchise period. These include: -- the terrorist activity in London in July 2005; -- the decision by the U.K. Office of Rail Regulation to allow additional open access operators to compete with GNER; -- a weakening in the U.K. GDP growth; -- significant increases in electricity prices; and -- improvement in Network Rail's performance. Passenger revenue for the period May 1, 2005 to June 30, 2006 was US$918 million (GBP510 million; unaudited). This represents a 3.3% increase compared to the projected 9.9% increase in the franchise plan, causing passenger revenue to be US$60 million (GBP33 million) lower than projected for the 14-month period. GNER believes that just more than half of the shortfall is due to the July 2005 terrorist activity in London. GNER was disproportionately affected by the terrorist activity compared to other UK rail operators due to GNER's greater dependence on the long-distance travel market to and from London and the focus of the terrorist activity around Kings Cross Station in London. A claim has been submitted to the DfT for the partial recovery of lost revenue under the force majeure mechanism of the franchise agreement. This mechanism will not compensate GNER fully, however, and the DfT has not concluded its review of that claim GNER expects that its revenue projections may also be materially adversely affected in the future by the ORR's decision in connection with open access arrangements for competitors, recently upheld by the High Court in London. Infrastructure Payments GNER's ability to meet its original projections will also be materially impacted by the variable infrastructure payments to or from Network Rail, which are largely outside GNER management control. The two components of the infrastructure payment relates to: (1) payments to GNER by Network Rail for its performance failure or disruption to timetable through planned maintenance work by Network Rail; and (2) payments from GNER to Network Rail for providing improved rail infrastructure performance. Network Rail's performance is now expected to be better than anticipated in GNER's franchise plan so that net payments to Network Rail should continue at a higher level than planned. Electricity Charges A further issue, which is likely to affect materially GNER's profitability relates to electricity charges. These rose in April 2006 by 26%, considerably more than forecast in GNER's franchise plan. GNER has also received initial notification that a further 65% increase is likely to occur in April 2007, far in excess of the assumptions made at the time of the bid. Taken together the 2006 increase and expected 2007 increase would have an average annual cost impact compared with the original franchise plan assumption of approximately US$20 million (GBP11 million) per annum from April 2007. GNER understands there is a further increase possible in April 2008. Although GNER management has begun to implement initiatives to reduce aggregate controllable costs, these costs are not sufficiently large to provide scope for improvements, which could significantly offset the potential shortfall in profitability relating to the factors described above. In light of this, GNER currently expects to make a profit or loss result much lower than the net profit margin before tax of 3.75% originally estimated in its plan. In order to make dividend payments to the Company, GNER must earn distributable profits and also meet certain financial criteria under the franchise agreement. GNER does not presently expect to make any dividend payments for the short to medium term. The Company has raised with the DfT the financial impact on GNER of these adverse factors and will discuss them further, although the timing and outcome of these discussions with the DfT are uncertain, as is the future value of the GNER franchise to Sea Containers. Under the direction of Bob MacKenzie, who becomes Executive Chairman of GNER on Aug. 31, GNER will continue to seek to grow revenue and reduce operating costs. In the meantime, GNER continues to exceed its operating performance criteria and delivers excellent customer service. Financial Support for GNER Sea Containers Ltd. is providing certain financial support arrangements for its UK rail subsidiary, Great North Eastern Railway. Under the franchise agreement, there is a bond in favor of the U.K. Department for Transport (DfT) securing GNER's performance under the agreement. This can be used by the DfT in limited circumstances for specific purposes. A bank has issued the bond pursuant to a facility with GNER, which the Company has guaranteed. The amount of the performance bond is currently US$27.5 million (GBP15.3 million) rising to US$51.7 million (GBP28.7 million) in May 2007. It is a condition of the franchise that GNER has in place a US$54 million(GBP30 million) standby credit facility during the term of the franchise, callable by GNER in the event of liquidity need. The Company has provided this facility to GNER, but it is undrawn as of press time. It is also a condition of the franchise that GNER has an US$18 million(GBP10 million) overdraft facility to provide additional working capital if needed. This facility is provided by a bank and guaranteed by the Company. To date, no funds had been drawn. About Sea Containers Headquartered in London, United Kingdom, Sea Containers -- http://www.seacontainers.com/-- engages in passenger and freight transport and marine container leasing. The Bermuda registered company is primarily owned by U.S. shareholders and its common shares have been listed on the New York Stock Exchange (SCRA and SCRB) since 1974. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. * * * In June 2006, Moody's Investors Service downgraded the senior unsecured ratings and confirmed the senior secured rating of Sea Containers -- Senior Unsecured to Caa3, Senior Secured at B3. Moody's said the outlook is negative. The downgrades were due to the increased probability of a payment default following Sea Containers' disclosure that it is unable to confirm whether it will pay the $115 million principal amount of 10-3/4% senior unsecured notes due October 2006. As reported in the Troubled Company Reporter on May 4, 2006, Standard & Poor's Ratings Services lowered its ratings on Sea Containers, including lowering the corporate credit rating to 'CCC-' from 'CCC+'. All ratings remain on CreditWatch with negative implications. The rating action followed the company's announcement that it is continuing to evaluate a range of strategic and financial alternatives, including the "appropriate level of debt capacity, with the intent to engage the public note holders and other stakeholders." SEA CONTAINERS: Restructuring Spurs S&P to Keep Junk Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on Sea Containers Ltd., including the 'CCC-' corporate credit rating, remain on CreditWatch with negative implications. Ratings were lowered to current levels May 1; they were initially placed on CreditWatch with negative implications on Aug. 25, 2005. The CreditWatch update follows Sea Containers' update today on its operational and financial restructuring efforts, including the statement that it will not pay its US$115 million due Oct. 15, on the 10�% senior notes unless the company concludes that it will be able to pay its other public notes maturing in 2008, 2009, and 2012, and all other unsecured creditors, and retain sufficient working capital. Sea Containers also said it intends in the next few weeks to begin discussions with advisors in respect of a potential restructuring of the company's unsecured financial obligations. "If a restructuring is undertaken that does not provide full value to the noteholders, we would lower our ratings on the affected notes to 'D' and the corporate credit rating to 'SD' (selective default)," said Standard & Poor's credit analyst Betsy Snyder. Sea Containers provided also an update on various other ongoing restructuring efforts: -- sale of its Silja ferry unit was completed July 19, and proceeds applied to reduce debt which has declined by US$648 million since Dec. 31, 2005, to US$610 million at July 31, 2006; -- three ferries were sold for US$48 million, which was used to repay secured debt on the vessels, and the company is seeking to sell other ferries with an estimated value of US$127 million to US$137 million; -- cash used in operating activities was US$88 million for the first six months of the year, almost double the US$46 million cash consumption of the prior-year period; and -- the Great North Eastern Railway is significantly underperforming original projections, due to lower-than- forecast revenues, including the effect of terrorist attacks in London in July 2005 and higher-than-forecast costs. The company noted also that it remains in covenant default on various debt instruments, including its public notes, though no creditors has taken action to exercise remedies. STATS CHIPPAC: Earns US$18 Million Net Income in Second Quarter --------------------------------------------------------------- STATS ChipPAC Ltd. has announced results for the second quarter ended June 30, 2006. Revenue for the three months ended June 30, 2006 increased 58% to US$418.1 million, compared with US$264.3 million of revenues in the same quarter a year ago or an increase of 8% compared to the prior quarter. On a US GAAP basis, net income for the three months ended June 30, 2006, was US$18.0 million, compared with a US$15.1 million net loss in the same quarter a year ago. US GAAP results for the second quarter of 2006 include US$16.0 million in special items and costs associated with the merger of STATS and ChipPAC. US GAAP results for the second quarter of 2005 include US$14.1 million in special items and costs associated with the merger of STATS and ChipPAC. Excluding the special items and including certain adjustments, non-US GAAP adjusted net income for the three months ended June 30, 2006 was US$34.1 million, compared with a net loss of US$1.0 million in the same quarter a year ago. Results for the second quarter of 2006 include approximately US$2.8 million in share-based compensation expenses as required under SFAS 123(R). Outlook Tan Lay Koon, president and chief executive officer of STATS ChipPAC said, "In terms of guidance for the third quarter of 2006, we expect revenue in the third quarter of 2006 will be approximately 2% to 7% lower than the second quarter of 2006, with US GAAP net income in the range of US$13.0 million to US$24.0 million, which represents US GAAP net income per diluted ADS of US$0.06 to US$0.11, including the impact of US$0.02 per ADS for the expensing of share-based compensation and the impact of approximately US$0.01 per ADS due to restructuring activities in the quarter. Non-US GAAP adjusted net income is expected to be in the range of US$21.5 million to US$32.5 million or in the range of US$0.10 to US$0.15 per diluted ADS, including the impact of US$0.02 per ADS for the expensing of share-based compensation. Non-US GAAP adjusted net income is calculated without the effect of certain merger and integration expenses, purchase accounting adjustments and restructuring activities." A full-text copy of STATS ChipPac's second quarter financials is available at no charge at http://ResearchArchives.com/t/s?f92 About STATS ChipPAC Headquartered in Singapore, STATS ChipPAC Ltd. -- http://www.statschippac.com/-- provides semiconductor test and assembly services. The company assembles leaded and laminate packages and provides related services such as package design and leadframe and substrate designs. The company provides these tests and assembly services to semiconductor companies which do not have their own manufacturing facilities. The company's offices outside the United States are located in South Korea, Singapore, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom. * * * Moody's Investors Service gave STATS ChipPAC a Long-Term Corporate Family Rating of 'Ba2" effective on October 21, 2004 and the company's Senior Unsecured Debt a 'Ba2' rating on October 28, 2004. Standard and Poor's Ratings Services gave the company a 'BB' for both its Long-Term Foreign Issuer Credit Rating and Long-Term Local Issuer Credrit Rating effective on October 7, 2004. STATS CHIPPAC: Now Listed With NASDAQ Global Select Market ---------------------------------------------------------- STATS ChipPAC Ltd. disclosed the listing of its shares in the new NASDAQ Global Select Market. The NASDAQ Global Select Market has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. Prior to the change, the company had been listed on the NASDAQ National Market. Beginning July 3, NASDAQ-listed companies will be classified under three listing tiers - NASDAQ Global Select Market, NASDAQ Global Market, and NASDAQ Capital Market. NASDAQ also plans to launch indexes based on these new tiers. Tan Lay Koon, president and chief executive officer, STATS ChipPAC, "Achieving the NASDAQ Global Select market designation is the latest acknowledgement of STATS ChipPAC's global leadership, our support of the world's most prestigious and innovative customers, and our commitment to our investors." NASDAQ announced the new three tier listing classification in February 2006. All three market tiers will maintain rigorous listing and corporate governance standards. About STATS ChipPAC Headquartered in Singapore, STATS ChipPAC Ltd. -- http://www.statschippac.com/-- provides semiconductor test and assembly services. The company assembles leaded and laminate packages and provides related services such as package design and leadframe and substrate designs. The company provides these tests and assembly services to semiconductor companies which do not have their own manufacturing facilities. The company's offices outside the United States are located in South Korea, Singapore, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom. * * * Moody's Investors Service gave STATS ChipPAC a Long-Term Corporate Family Rating of 'Ba2" effective on October 21, 2004 and the company's Senior Unsecured Debt a 'Ba2' rating on October 28, 2004. Standard and Poor's Ratings Services gave the company a 'BB' for both its Long-Term Foreign Issuer Credit Rating and Long-Term Local Issuer Credrit Rating effective on October 7, 2004. WEST'S ENGINEERING: Creditors' Meeting Slated for August 18 ----------------------------------------------------------- Creditors of West's Engineering Design Limited (Company Number 04315337) will meet at 12:00 noon on Aug. 18 at: DTE Leonard Curtis DTE House Hollins Mount Bury BL9 8AT United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Aug. 17 at: J. M. Titley and A. Poxon Joint Administrators DTE Leonard Curtis DTE House Hollins Mount Bury BL9 8AT United Kingdom Tel: 0161 767 1200 Fax: 0161 767 1201 DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (182) Rhi AG (214) 1,756 183 BELGIUM ------- City Hotels CITY.BR (7) 210 (15) Real Software REAL.BR (49) 142 (34) Sabena S.A. (86) 2,215 (297) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Acces Industrie (8) 106 (35) Arbel PA.ARB (98) 222 (72) Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Charbo De France (3,872) 4,738 (2,868) Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Compagnies de Machines Bull (139) 137 (6) Dollfus Mieg & Cie S.A. DS (11) 165 (29) Euro Computer System (110) 682 377 Genesys S.A. GNS.PA (15) 136 3 Grande Paroisse S.A. (927) 629 330 Immob Hoteliere (68) 233 29 Labo Dolisos DOLI.PA (28) 110 (33) Matussiere et Forest S.A. MTF (78) 294 (28) Metaleurop S.A. PA.PA (24) 181 (30) Oeneo S.A. SABT.PA (12) 292 38 Pneumatiques Kleber S.A. (34) 480 139 SDR Centrest (132) 252 N.A. SDR Picardie (135) 413 N.A. Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Teamlog TLO (19) 109 (3) Trouvay Cauvin (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Cognis Deutschland GmbH & Co. KG (102) 3,409 (503) Dortmunder Actien-Brauerei DABG (13) 118 (29) EM.TV AG EV4G.BE (22) 849 15 F.A. Guenther & Son AG GUSG (8) 111 N.A. Kaufring AG KAUG (19) 151 (51) Maternus Kliniken AG MAK.F (3) 207 (30) Nordsee AG (8) 195 (31) Primacom AG PRIG (268) 1,257 (1,048) Rinol AG RLIG (64) 104 (15) Schaltbau Hold SLTG (23) 144 (7) Senator Entertainment AG SENGk.BE (153) 126 (148) SinnLeffers AG WHGG (4) 454 (145) Spar Handels- AG SPAG (442) 1,433 (234) Vivanco Gruppe (55) 131 (31) HUNGARY ------- NABI Rt. NABHY (2) 229 (8,950) ICELAND ------- Decode Genetics Inc. DCGN (9) 229 141 ITALY ----- Binda S.p.A. BND (11) 129 (20) Cirio Finanziaria S.p.A. (422) 1,583 (396) Credito Fondiario e Industriale S.p.A. (200) 4,218 N.A. Finpart S.p.A. (152) 732 (322) Gruppo Coin S.p.A. GC (150) 4,218 N.A. I Viaggi del Ventaglio S.p.A. VVE.MI (61) 487 (58) Olcese S.p.A. OLCI.MI (13) 180 (64) Parmalat Finanziaria S.p.A. (18,419) 4,121 (12,481) Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (24) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Mostostal Zabrze MECOF.PK (6) 227 (366) ROMANIA ------- Oltchim RM Valce OLT (45) 232 321) RUSSIA ------ OAO Samaraneftegas (332) 892 (16,942) Zil Auto (168) 409 (10,680) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 Sniace S.A. (16) 136 (34) SWITZERLAND ----------- Wedins Skor Accessoarer AB (10) 139 (129) TURKEY ------ Nergis Holding (24) 125 26 Yasarbank (948) 623 N.A. UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) AEA Technology Plc AAT.L (24) 340 (50) Alldays Plc (120) 252 (202) Amey Plc (49) 932 (47) Anker PLC ANK.L (22) 115 13 Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) British Energy Plc BGY (5,823) 4,921 434 British Nuclear Fuels Plc (4,248) 40,326 977 British Sky Broadcasting Group Plc BSY (61) 4,157 139 Compass Group CPG (668) 2,972 (298) Costain Group COST (39) 567 (5) Danka Bus System DNK.L (108) 540 34 Dawson Holdings DWN.L (12) 158 (19) Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (1,411) 3,235 (331) Euromoney Institutional Investor Plc ERM.L (88) 297 (56) European Home Retail Plc EHRL (14) 111 (37) Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Gondola Holdings Plc GND.L (239) 987 (396) Heath Lambert Fenchurch Group Plc (10) 4,109 (10) HMV Group Plc HMV (9) 875 (190) Homestyle Group Plc HME (29) 409 (124) Imperial Chemical Industries Plc ICI (835) 8,881 (49) Invensys PLC (963) 4,861 913 IPC Media Ltd. (685) 254 16 Jarvis Plc JRVS.L (683) 492 (371) Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United LDSUF.PK (73) 144 (29) M 2003 Plc (2,204) 7,205 (756) Manchester City (17) 154 (21) Micro Focus International Plc MCRO.L (14) 115 (11) Misys Plc MSY (460) 906 60 Mytravel Group MT.L (283) 1,159 (410) Orange Plc ORNGF (594) 2,902 7 Park Group Plc PKG.L (5) 111 (13) Partygaming Plc PRTY (46) 398 (110) Premier Foods Plc PFD.L (31) 1,475 16 Probus Estates Plc PBE.L (28) 113 (49) Regus Plc RGU.L (46) 367 (60) Rentokil Initial Plc RTO (1,134) 2,678 (45) RHM Plc RHM (586) 2,411 59 Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 SFI Group (108) 178 (162) Telewest Communications Plc TLWT (3,702) 7,581 (5,361) UK Coal Plc UKC (25) 865 (62) Virgin Mobile Holdings Plc VMOB.L (101) 278 (80) Each Tuesday edition of the TCR-Europe contains a list of companies with insolvent balance sheets based on the latest publicly available balance sheet available to our editors at the time of publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel Laureno, Julybien Atadero, Carmel Zamesa Paderog, and Joy Agravante, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *