/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060901.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 Friday, September 1, 2006, Vol. 7, No. 174 Headlines A U S T R I A AERO-SANITARANLAGENBAU: Claims Registration Period Ends Sept. 4 DEMCO: Creditors' Meeting Slated for September 7 DIPL.ING. STADLMAYR: Claims Registration Period Ends Sept. 9 ECO: Creditors' Meeting Slated for September 12 FRIEDRICH HESS: Eisenstadt Court Orders Business Shutdown GIBEMA: Creditors' Meeting Slated for September 6 HOLZ & MASCHINEN: Court Approves Property Manager's Decision ING. SCHERIAU: Creditors' Meeting Slated for September 5 LIEBETEGGER: Klagenfurt Court Shuts Down Business MOBIL REAL: Creditors' Meeting Slated for September 5 F I N L A N D BENEFON OYJ: Licenses Opna SoftWare Platform from Pollex STROMSDAL CORP: Sets Extraordinary General Meeting for Sept. 11 G E R M A N Y ANTON DAHM: Claims Registration Ends September 27 GRAF WERBETECHNIK: Claims Registration Ends September 26 GERHARD LAMBERJOHANN: Claims Registration Ends September 28 GRAWINKEL FAHRSCHULE: Claims Registration Ends September 28 IGA ISSELHORSTER: Claims Registration Ends September 26 PAK-ET HANDELS: Claims Registration Ends September 27 PELZVEREDELUNG KURT: Claims Registration Ends September 27 SCHEFENACKER AG: Underperformance Cues Moody's to Junk Ratings SCHEFENACKER AG: Breach Risk Cues S&P to Cut Rating to CCC+ SCHRAMM BAUUNTERNEHMEN: Claims Registration Ends September 22 SPS SCHLUECHTERNER: Claims Registration Ends September 29 STEINNAGEL GERUESTBAU: Claims Registration Ends September 30 I T A L Y KNOLL INC: Inks New Five-Year Labor Agreement with Carpenters K A Z A K H S T A N AK-JOL: Creditors Must File Claims by Sept. 22 ATYRAUSYSTEMCOMPLEKTTRUBSNAB: Claims Registration Ends Sept. 27 FLAMINGO: Creditors' Claims Due Sept. 22 INTER BEST: Karaganda Court Opens Bankruptcy Proceedings KREDO: Proof of Claim Deadline Slated for Sept. 22 RITM: Creditors Must File Claims by Sept. 26 SARYOBINSKOYE: Claims Registration Ends Sept. 27 STAFF: Creditors' Claims Due September 22 TAZA-KALA-CENTRE: Proof of Claim Deadline Slated for Sept. 22 K Y R G Y Z S T A N ENGINEERING-MANUFACTURING: Creditors' Claims Due Oct. 4 N E T H E R L A N D S ORTHOFIX INT'L: Acquisition Prompts Moody's to Cut Rating to Ba3 ORTHOFIX HOLDINGS: S&P Assigns BB- Rating to Credit Facility R U S S I A AGRO-KHIM-SERVICE: Court Names Y. Kushenko as Insolvency Manager ALFA BANK: Opens Three Mortgage-Lending Centers in Russia BELOVO: Kemerovo Court Names Y. Deriglazov as Insolvency Manager BOLSHEMURTINSKIY WOODWORKING: L. Sitkina to Manage Assets BUYSKIY DIARY: Court Names S. Bondarev as Insolvency Manager CENTERTELECOM OAO: Aims to Raise US$115 Million to Repay Debt CRYSTAL: Penza Court Names O. Belov as Insolvency Manager FORD MOTOR: Mulls Doubling Russian Car Sales in 2006 GAZPROM OAO: Extends Existing E.ON Contracts to 15 Years KHLEVENSKOYE TRANSPORT: K. Glodev to Manage Insolvency Assets KURSKAYA ROAD: Kursk Court Starts Bankruptcy Supervision KUYBYSHEVSKIY AGRO-SNAB: Court Starts Bankruptcy Supervision LYUBIMSKIY CHEESE-BUTTER-MAKING: Court Hearing Set for Sept. 13 MARYEVSKOYE: Court Names P. Baranov as Insolvency Manager MOBILE TELESYSTEMS: Appoints New Management Directors NAVIKA: Moscow Court Starts Bankruptcy Supervision NORTH-WEST TELECOM: Unveils Asset Management Update for 1H 2006 PROKHLADNOYE: Kaliningrad Court Starts Bankruptcy Supervision PROMSVYAZBANK JSCB: To Hike Capital by 34.6% via Share Issue SIBERIAN BUILDER: Court Names S. Lebedev as Insolvency Manager SIBIRSKOYE: Bankruptcy Hearing Slated for October 25 STORM: Kursk Court Names V. Skorikov as Insolvency Manager STROY-INVEST: Bankruptcy Hearing Slated for November 1 SUAL GROUP: RusAl Dismisses Merger Reports as Rumor SUAL INT'L: Merger Uncertainty Spurs S&P to Keep BB- Rating TATNEFT OAO: Says S&P Credit Rating Withdrawal Unjustified UKR-AGRO-KHIM-PROM-HOLDING: Court Hearing Slated for Oct. 10 VIKULOVSKIY TECHNOLOGY: Court Hearing Slated for September 14 WOOD MASTER: Arkhangelsk Court Starts Bankruptcy Supervision WOODWORKING COMBINE 2: V. Adamov to Manage Insolvency Assets ZNAMENSKIY FLAX: Court Names E. Esaulova as Insolvency Manager * Fitch Assigns Nizhniy Novgorod B+ LT Foreign Currency Rating S P A I N IM GRUPO: Moody's Rates EUR32.4-Mln Series E Notes at (P)C U K R A I N E AGROLEASING: Kyiv Court Names S. Kitsul as Insolvency Manager AVTOMOBILIST: Kyiv Court Starts Sanation Procedure AVTOSPECVODSERVICE: Court Names Mr. S. Nadeyev as Liquidator BIOSTIMULYATOR: Odessa Court Starts Bankruptcy Supervision BUILDING MATERIALS: Court Names Mr. U. Dunayevskij Liquidator ELECTRONIC COMPONENTS: District Tax Agency to Liquidate Assets HUDOZHNYE TKATSTVO: Oleksandr Malyovanij to Liquidate Assets MAYAK: Court Names Sergij Nazarenko as Insolvency Manager PIVDENNYI BANK: Fitch Lifts Junk Issuer Default Rating to B- RENDER: Court Names Romanov Kostyantin as Insolvency Manager STIMUL: Court Names Denis Matvijchuk as Insolvency Manager STOA: Ivano-Frankivsk Court Starts Bankruptcy Supervision ZOLOTONOSHA REINFORCED: Court Starts Bankruptcy Supervision * Political Stability Spurs S&P to Affirm Ukraine's Ratings U N I T E D K I N G D O M ABBEY GREEN: Appoints Chantrey Vellacott as Administrators ADCO PROTECTIVE: Brings In Vantis to Administer Assets A.M.L. KITCHEN: Appoints Liquidator from Begbies Traynor ANDY SMITH: Taps Bruce G. T. Rees to Liquidate Assets BANJO DESIGN: Appoints Louise Donna Baxter as Liquidator BBRC LIMITED: Taps Administrator from Horwath Clark BIOS EUROPE: Appoints Joint Administrators from P&A BITECVIEW LIMITED: Creditors Confirm Liquidator's Appointment BODYCARE INTERNATIONAL: Hires Joint Administrators from Kroll BULSAR ENGINEERING: Names Robert Gibbons Liquidator CAPITAL PRINT: Appoints Administrators from Chantrey Vellacott CORUS GROUP: Posts GBP82-Mln Net Profit for Second Quarter 2006 CTL PROJECTS: Brings In Joint Liquidators from Begbies Traynor DELLAMAX TRADING: Stephen Franklin Leads Liquidation Procedure DUNELM CONTRACTORS: Creditors' Meeting Slated for September 21 EYE QUALITY: Calls In Liquidator from Ward & Co. FLOORCARE SERVICES: Appoints T. Papanicola to Administer Assets FRANK P KIRK: Claims Filing Period Ends Sept. 29 FIELD TRANSPORT: Hires M. Arkin to Liquidate Assets GARTMORE INVESTMENT: Moody's Assigns Ba2 Corp. Family Rating GARTMORE INVESTMENT: S&P Assigns Low-B Ratings on High Leverage GROSVENOR INSULATION: Taps Liquidator from Tenon Recovery HALLMARK CERAMIC: Appoints Martin Williamson to Liquidate Assets HOMESTYLE GROUP: Reports GBP62 Mln Positive Equity at July 1 INDUSTRIAL PYROMETER: Taps Gerald Irwin to Administer Assets INSTRUCTUS LIMITED: Hires David Hughes to Liquidate Assets J D AGENCIES: J. N. Bleazard Leads Liquidation Procedure J S L INTERIORS: Names Liquidator to Wind Up Business KAT SERVICES: Names Eileen T. F. Sale Liquidator KEYHOLDERS LIMITED: Names David Kaye as Administrator L.J. SNOOKES: Brings In Tony Mitchell to Liquidate Assets LAKESIDE PUBLISHING: Calls In Liquidator from Begbies Traynor MAWS GALLERY: Creditors Confirm Liquidator's Appointment MDM INDEX: Hires Stephen M. Rout to Liquidate Assets MIDLAND ROLLCAGE: Brings In P. Nottingham to Liquidate Assets NATIONWIDE LOFT: Liquidator Sets Sept. 29 Claims Bar Date NORTHERN FOODS: Mulls Closing of Trafford Park Bakery PARMAR FOODS: Passes Resolution for Voluntary Liquidation PICTURE-FRAMING WAREHOUSE: Names M. C. Hepworth Liquidator PIONEER CARE: Brings In M. C. Bowker to Liquidate Assets PUDELKO CORRUGATED: Names Nigel Spearing as Administrator RAPID MOULDING: Taps Joint Liquidators from DTE Leonard Curtis REFCO INC: Chapter 11 Trustee's Settlement Agreement Draws Fire REFCO INC: Ch. 11 Trustee Wants Court Nod on RCM Settlement Pact REFCO INC: BofA Wants Final Approval on Cash Collateral Use ROOFTEC CONSERVATORY: Appoints Gary Bell as Administrator SANDUSKY WALMSLEY: Appoints PwC as Joint Administrators SOUTHERN FERRIES: Brings In Kikis Kallis as Administrator SPECIALIST RECRUITMENT: Hires Joint Liquidators from Lines Henry STREAMDOOR LIMITED: Taps Atherton Bailey as Administrators TAS PROPERTY: Brings In Kingston Smith to Administer Assets TMJ LIMITED: Creditors' Meeting Slated for September 7 TOWER RECORDS: Wants Until Nov. 20 to File Schedules & Statement VEGASTREAM LIMITED: Hires Administrators from Geoffrey Martin WEB WORKS: Creditors' Meeting Slated for September 6 WILFRED YOUNG: Brings In Theodolous Papanicola as Administrator WILKIE RECYCLING: Calls In Liquidator from Bridgers WOODFORD TRAVEL: Taps A. J. Clark to Liquidate Assets YEOMAN COMMERCIALS: Brings In M. J. Ryan to Liquidate Assets ********* ============= A U S T R I A ============= AERO-SANITARANLAGENBAU: Claims Registration Period Ends Sept. 4 --------------------------------------------------------------- Creditors owed money by LLC Aero-Sanitaranlagenbau (FN 57021f) have until Sept. 4 to file written proofs of claims to court- appointed property manager Heinz Bauer at: Mag. Heinz Bauer Wielandgasse 14-16 6th floor 8010 Graz, Austria Tel: 0316/810045-0 Fax: 0316/810045-14 E-mail: kanzlei@christandl.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Sept. 19 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Graz Room 205 Hall K 2nd Floor Graz, Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on July 11 (Bankr. Case No. 40 S 34/06g). Dr. Franz Krainer and the Debtor's manager Rudolf Tausend represent the Debtor in the bankruptcy proceedings. The Debtor's representative can be reached at: Dr. Franz Krainer Herrengasse 9/III 8010 Graz, Austria DEMCO: Creditors' Meeting Slated for September 7 ------------------------------------------------ Creditors owed money by LLC Demco (FN 262251p) are encouraged to attend the creditors' meeting at 9:30 a.m. on Sept. 7 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 11 (Bankr. Case No. 5 S 98/06f). Herbert Hochegger serves as the court-appointed compensation manager of the bankrupt estate. Bernhard Eder represents Dr. Hochegger in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Herbert Hochegger c/o Dr. Bernhard Eder Brucknerstrasse 4/5 1040 Vienna, Austria Tel: 505 78 61 Fax: 505 78 61 9 E-mail: office@hoch.co.at DIPL.ING. STADLMAYR: Claims Registration Period Ends Sept. 9 ------------------------------------------------------------ Creditors owed money by LLC & KEG Dipl.Ing. Stadlmayr profly (FN 260649h) have until Sept. 9 to file written proofs of claims to court-appointed property manager Gerhard Haslbauer at: Dr. Gerhard Haslbauer Main Place 7 4663 Laakirchen, Austria Tel: 07613/5588 Fax: 07613/5588-15 E-mail: rechtsanwalt@haslbauer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on Sept. 14 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Wels Hall 101 1st Floor Maria Theresia Str. 12 Wels, Austria Headquartered in Gmunden, Austria the Debtor declared bankruptcy on July 11 (Bankr. Case No. 20 S 86/06g). ECO: Creditors' Meeting Slated for September 12 ----------------------------------------------- Creditors owed money by LLC ECO (FN 54538d) are encouraged to attend the creditors' meeting at 10:30 a.m. on Sept. 12 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1707 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 11 (Bankr. Case No. 2 S 117/06b). Ulla Reisch serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Ulla Reisch Praterstrasse 62-64 1020 Vienna, Austria Tel: 212 55 00 E-mail: office.wien@ulsr.at FRIEDRICH HESS: Eisenstadt Court Orders Business Shutdown --------------------------------------------------------- The Land Court of Eisenstadt entered an order on July 7 shutting down the business of LLC Friedrich Hess (FN 123166b). Court- appointed property manager Robert Klein determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Robert Klein Main place 11 Atrium Top 16 A 7400 Oberwart, Austria Tel: 03352/31543 Fax: 03352/31543-20 E-mail: klein@lawcenter.at Headquartered in Neusiedl am See, Austria, the Debtor declared bankruptcy on June 29 (Bankr. Case No. 26 S 63/06a). An attorney from Proksch & Partner will represent the Debtor in the bankruptcy proceedings. The Debtor's representative can be reached at: Proksch & Partner Heumarkt 9/1/11 1030 Vienna, Austria GIBEMA: Creditors' Meeting Slated for September 6 ------------------------------------------------- Creditors owed money by LLC Gibema (FN 220066b) are encouraged to attend the creditors' meeting at 9:30 a.m. on Sept. 6 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 11 (Bankr. Case No. 4 S 111/06k). Franz Stefan Pechmann serves as the court-appointed compensation manager of the bankrupt estate. The property manager can be reached at: Dr. Franz Stefan Pechmann Gusshausstrasse 6 1040 Vienna, Austria Tel: 503 19 95 Fax: 503 19 95 12 E-mail: office@pechmann.cc HOLZ & MASCHINEN: Court Approves Property Manager's Decision ------------------------------------------------------------ The Land Court of Wiener Neustadt will approve the final decision and project by final allocation of court-appointed property manager, Mag. Gernot Faber for LLC Holz & Maschinen (FN 236405f). The property manager offered 2.2% recovery of the creditors' claim. Headquartered in Wiener Neustadt, Austria, the Debtor declared bankruptcy on Oct. 10, 2005 (Bankr. Case No. 11 S 108/05a). An attorney from Hule/Bachmayr-Heyda/Nordberg represents the Debtor in the bankruptcy proceedings. The property manager can be reached at: Mag. Gernot Faber Neunkirchner Str. 34 2700 Wiener Neustadt, Austria Tel: 02622/82118 Fax: 02622/82118-6 E-mail: Kanzlei@ra-faber.at ING. SCHERIAU: Creditors' Meeting Slated for September 5 -------------------------------------------------------- Creditors owed money by LLC Ing. Scheriau & Co (FN 38154i) are encouraged to attend the creditors' meeting at 9:50 a.m. on Sept. 5 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1609 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 11 (Bankr. Case No. 38 S 45/06d). Klemens Dallinger serves as the court-appointed compensation manager of the bankrupt estate. Guenther Hoedl represents Dr. Dallinger in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Klemens Dallinger c/o Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna, Austria Tel: 513 28 33 Fax: 513 28 33-22 E-mail: dallinger@anwaltsteam.at LIEBETEGGER: Klagenfurt Court Shuts Down Business ------------------------------------------------- The Land Court of Klagenfurt entered an order on July 7 shutting down the business of KEG Liebetegger (FN 261682b). Court- appointed property manager Peter Riedel determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Mag. Peter Riedel Pfarrplatz 3 9020 Klagenfurt, Austria Tel: 0463/500 246 Fax: 0463/500 246-8 E-mail: ra.riedel@aon.at Headquartered in Klagenfurt, Austria, the Debtor declared bankruptcy on June 28 (Bankr. Case No. 40 S 51/06z). MOBIL REAL: Creditors' Meeting Slated for September 5 ----------------------------------------------------- Creditors owed money by LLC Mobil Real Immobilien Real Estate Agency Vienna (FN 60094z) are encouraged to attend the creditors' meeting at 10:45 a.m. on Sept. 5 to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 2102 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 10 (Bankr. Case No. 45 S 22/06y). Markus Siebinger serves as the court-appointed compensation manager of the bankrupt estate. Karl Schirl represents Mag. Siebinger in the bankruptcy proceedings. The property manager and his representative can be reached at: Mag. Markus Siebinger c/o Dr. Karl Schirl Krugerstrasse 17/3 1010 Vienna, Austria Tel: 513 22 31 Fax: 513 22 31-1 E-mail: markus.siebinger@der-rechtsanwalt.at dr.karl.schirl@der-rechtsanwalt.at ============= F I N L A N D ============= BENEFON OYJ: Licenses Opna SoftWare Platform from Pollex -------------------------------------------------------- Benefon Oyj disclosed of its plans to further strengthen its in- house technology platform, by licensing the complete mobile software platform, Opna, from its long-standing technology partner, Pollex. The Opna is powering Benefon's first TWIG branded personal navigation device, the TWIG Discovery, which is intended to be launched across Europe in Q3 2006. "This is a significant milestone for Benefon, helping us to secure critical USP's for our personal navigation product roadmap for 2007 and beyond," commented Simon Button, Chief Technology Officer at Benefon. "The core functionality of Pollex Opna is easily portable across multiple product platforms, giving consistent high-performance functionality for TWIG users, and reliable economies of scale for sourcing purposes." Jonathan Bate, Chief Executive Officer at Benefon added: "We're continuing our investment in core technology that will successfully drive Benefon's products and solutions for 2007 and beyond, and it's an exciting milestone in our strategy to deliver world class personal navigation products." David Tian, Chief Executive Officer at Pollex added "Benefon was our first major European customer to adopt our solution in July 2005. This licensing agreement allows Benefon to further develop on our world class mobile software platform to power their exciting product roadmap". About Benefon Headquartered in Salo, Finland, Benefon Oyj -- http://www.benefon.com/-- provides mobile telematics solutions saving lives, securing assets and improving field management. At Dec. 31, 2005, Benefon Oyj's had EUR4.97 in total assets and EUR7.30 million in total liabilities, resulting in a EUR2.33 million stockholders' deficit. STROMSDAL CORP: Sets Extraordinary General Meeting for Sept. 11 --------------------------------------------------------------- Shareholders of Stromsdal Corp. will convene an Extraordinary General Meeting at 2:00 p.m. (Finnish time) on Sept. 11 at the company's conference room in Villa Patruunanm"ki, Puutarhatie 3, 73500 Juankoski, Finland. The EGM is related to the arrangements to be carried out in connection with the Company's restructuring program. Capital Loan and Stock Options The Board of Directors proposes that the EGM issues for subscription a capital loan and stock options to Finnvera Plc. The arrangement has been prepared according to the new Companies Act (624/2006) effective as of Sept. 1, 2006, and is substantially identical to provisions regarding issue of convertible loans under the Companies Act effective prior to Sept. 1, 2006. The maximum amount of the capital loan is EUR1.5 million. The loan period commences from the payment of the loan and ends on May 15, 2012. Finnvera Plc may use the principal amount of the loan and matured interest to set off the subscription price of shares upon use of its subscription rights for shares under the stock options to be issued to Finnvera Plc. The loan accrues yearly interest of 3.25%. No interest is paid during year 2006. The maximum amount of new stock options is 1,875,000. One stock option entitles to subscribe for a maximum of one new share of the Company. The subscription period of shares under the stock options commences upon registration of the stock options with the trade register and ends on May 15, 2012. The subscription price of shares is EUR0.80 per share and Finnvera Plc may use its receivable under the capital loan agreement to set off subscription price for the shares. Shares are paid for according to instructions of the Board of Directors of the Company. Upon use of subscription right for shares the number of shares of the Company may increase by a maximum of 1,875,000 shares and the share capital of the Company may increase by a maximum of EUR1.5 million. The subscription price for shares is registered to the share capital of the Company in full. The capital loan is created by converting existing receivables of Finnvera Plc from the Company into capital loan. The capital loan and the stock options may be transferred only together. Board of Directors The shareholders of the Company representing over 50% of the shares and votes of the Company have notified that they will propose to the general meeting of shareholders that: (1) the Board of Directors shall consist of six members; (2) Attorney-at-Law Juhani Erma, City Manager Petri Kangasperko and M.Sc. (Eng) Ossi Kokkonen will continue as Board members; and (3) M.Sc. (Eng) Pauli Hamalainen, Senior Vice President Pirjo Repo and Managing Director Markku Toivanen are elected as new Board members. The proposal of the Board of Directors and other documentation required by the Companies Act are available at: Stromsdal Corp. Juankoskentie 7 73500 Juankoski Finland A shareholder, who is registered as a shareholder into the Company's shareholders' register as maintained by the Finnish Central Securities Depository Ltd on Sept. 1, 2006, at the latest, is entitled to participate in the EGM. A Shareholder who owns shares through custodial nominee account may be registered temporarily in the shareholders' register on Sept. 1, 2006, for the participation in the EGM. A request for temporary registration shall be made to the administrator of the custodial nominee account. A Shareholder who wishes to participate in the EGM is requested to inform of his/her participation to the Company at 4:00 p.m. (Finnish time) on Sept. 4, 2006, at this address: Stromsdal Corporation Attn: Tuija Lepisto P.O. Box 33 73501 Juankoski Finland Tel: +358 (0)17 688 641 Fax: +358 (0)17 6886 466 E-mail: tuija.lepisto@stromsdal.fi A written registration letter or message must arrive before the registration period expires. Possible proxies are requested to be delivered to the above-mentioned address by the end of the registration period. Headquartered in Juankoski, Finland, Stromsdal Oyj -- http://www.stromsdal.fi/-- develops and manufactures graphical board to paper merchants, printers, publishers and producers of cartons and packages. Graphical board is used in greeting cards and postcards, posters, folders, and in covers of books, different publications and catalogues. Stromsdal also produces board for luxury packaging, which includes the consumer packages of liquor, cosmetics, chocolate and pharmaceutical. Its subsidiaries include Juantehtaan Ymparisto Oy and Stromsdal U.K. Ltd. Juantehtaan Ymparisto owns and leases industrial real estates and land areas. Stromsdal U.K. Ltd. (registered in Blackburn) is a sales company in charge of selling the parent company's products in the U.K. and Ireland. The company posted three consecutive annual net losses with EUR1.9 million in 2005, EUR4.8 million in 2004 and EUR1.1 million in 2003. The company blamed low profitability of its major investments made in 2003 and losses from the pulp hedging for its tight liquidity. ============= G E R M A N Y ============= ANTON DAHM: Claims Registration Ends September 27 ------------------------------------------------- Creditors of Anton Dahm GmbH have until Sept. 27 to register their claims with court-appointed provisional administrator Andreas Schulte-Beckhausen. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Oct. 30 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall W126 1. Stick William Route 21 53111 Bonn, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bonn opened bankruptcy proceedings against Anton Dahm GmbH on Aug. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Anton Dahm GmbH Attn: Alexander Dahm, Manager Koenigswinterer Str. 29 53227 Bonn, Germany The administrator can be contacted at: Dr. Andreas Schulte-Beckhausen Oxfordstr. 2 53111 Bonn, Germany Tel: 0228/98 52 10 Fax: 0228/98 52 122 GRAF WERBETECHNIK: Claims Registration Ends September 26 -------------------------------------------------------- Creditors of Graf Werbetechnik GmbH have until Sept. 26 to register their claims with court-appointed provisional administrator Roland-Stephan Lehnert. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Oct. 17 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 Coburg Meeting Room K I. Stick Auxiliary Building Coburg, 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 Coburg opened bankruptcy proceedings against Graf Werbetechnik GmbH on Aug. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Graf Werbetechnik GmbH Attn: Wolfgang Graf, Manager Stiftstr. 43 96215 Lichtenfels, Germany The administrator can be contacted at: Roland-Stephan Lehnert Michael-Och-Str. 5 96215 Lichtenfels-Schney, Germany Tel: 09571/83382 Fax: 09571/83083 GERHARD LAMBERJOHANN: Claims Registration Ends September 28 ----------------------------------------------------------- Creditors of Gerhard Lamberjohann GmbH & Co. KG have until Sept. 28 to register their claims with court-appointed provisional administrator Norbert Kuepper. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Oct. 19 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 4 Ebene Court Route 6 33602 Bielefeld, 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 Bielefeld opened bankruptcy proceedings against Gerhard Lamberjohann GmbH & Co. KG on Aug. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gerhard Lamberjohann GmbH & Co. KG Attn: Johannes-Gerhard Lamberjohann, Manager Kupferstr. 23 33378 Rheda-Wiedenbrueck, Germany The administrator can be contacted at: Dr. Norbert Kuepper Paderborner Str. 11 33415 Verl, Germany GRAWINKEL FAHRSCHULE: Claims Registration Ends September 28 ----------------------------------------------------------- Creditors of Grawinkel Fahrschule GmbH have until Sept. 28 to register their claims with court-appointed provisional administrator Wolfgang Lorisch. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Oct. 19 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court 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 Grawinkel Fahrschule GmbH on July 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Grawinkel Fahrschule GmbH Attn: Bernd Grawinkel, Manager Zeppelinstrasse 20 59229 Ahlen, Germany The administrator can be contacted at: Wolfgang Lorisch Kurt-Schumacher-Str. 48 45699 Herten, Germany IGA ISSELHORSTER: Claims Registration Ends September 26 ------------------------------------------------------- Creditors of IGA Isselhorster Gartenbau GmbH have until Sept. 26 to register their claims with court-appointed provisional administrator Frank M. Welsch. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Oct. 17 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 Bielefeld Hall 4065 4 Ebene Court Route 6 33602 Bielefeld, 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 Bielefeld opened bankruptcy proceedings against IGA Isselhorster Gartenbau GmbH on July 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: IGA Isselhorster Gartenbau GmbH Attn: Karl Theodor Mumperow, Manager Isselhorster Str. 349 33334 Guetersloh, Germany The administrator can be contacted at: Frank M. Welsch Barkeystrasse 30 33330 Guetersloh, Germany PAK-ET HANDELS: Claims Registration Ends September 27 ----------------------------------------------------- Creditors of PAK-ET Handels GmbH have until Sept. 27 to register their claims with court-appointed provisional administrator Sabine Feuerborn. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Oct. 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 Cologne Meeting Room 1240 12th Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against PAK-ET Handels GmbH on July 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: PAK-ET Handels GmbH Market Route 10 50968 Cologne, Germany Attn: Ercan Cengiz, Manager Altenkasseler Road 13 66115 Saarbruecken, Germany The administrator can be contacted at: Dr. Sabine Feuerborn Else-Lang-Str. 1 50858 Cologne, Germany PELZVEREDELUNG KURT: Claims Registration Ends September 27 ---------------------------------------------------------- Creditors of Pelzveredelung Kurt Geihsler GmbH have until Sept. 27 to register their claims with court-appointed provisional administrator Andreas Amelung. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Oct. 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 Cologne Meeting Room 1240 12th Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Pelzveredelung Kurt Geihsler GmbH on July 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Pelzveredelung Kurt Geihsler GmbH Attn: Helmut Willi Geihsler, Manager New Sandkaul 4 50859 Cologne, Germany The administrator can be contacted at: Andreas Amelung Media Park 6 B 50670 Cologne, Germany SCHEFENACKER AG: Underperformance Cues Moody's to Junk Ratings -------------------------------------------------------------- Moody's Investors Service downgraded Schefenacker AG's Corporate Family rating to Caa1 from B2 and the rating on the company's senior subordinated notes to Caa3 from Caa1. The outlook remains negative. The rating action has been prompted by these factors: 1) the company's operating performance and cash generation (pre-working capital) during the first six months of 2006, which are below levels in previous years and behind the company's expectations. The under-performance is a result of continued pricing pressures from original equipment manufacturers (OEM), raw material price increases, delays in the company's 'Transition' restructuring program and operational disruptions, notably driven by the production run-up for new products. 2) the company's downward revision of its medium-term forecasts, in contrast to Moody's expectations of a successful and sustainable turnaround in profitability and cash generation, combined with little visibility of a performance turnaround which could give comfort to current high leverage ratios and insufficient interest coverage. 3) uncertainty whether financial covenants can be met. 4) insufficient internal cash generation increasing the reliance on third party funding. The deterioration in operating performance is reflected in a decrease in the gross profit margin, which fell to 12.0% in the first half of 2006, down from 13.7% in the same period of 2005. Management expects the downward impact on gross profit in the first half of 2006 to continue throughout the year, resulting in a full year EBITDA below the 2005 level and a further reduction in the company's expectations for 2007. Ratings downgraded: -- Corporate Family Rating, from B2 to Caa1; -- Senior secured rating on the EUR205 million facility due 2011 and 2012, from B2 to Caa1; and -- Senior subordinated rating on the EUR200 million notes due 2014, from Caa1 to Caa3. The negative outlook reflects the uncertainty whether the trend decline in Schefenacker's financial profile can be turned around, notably by: -- an acceleration of the Transition restructuring program which so far is behind schedule, or -- by other measures the company can take to mitigate pricing pressure from OEMs and pass on rising raw material prices; and by -- a strengthening of Schefenacker's liquidity position and its ability to remain compliant with its financial covenants in light of the revised expectations. The outlook could be stabilized by a recovery of Schefenacker's operating margins to 2005 levels as well as visibility of positive funds from operations over the next 2 to 3 quarters. The Caa1 Corporate Family Rating takes into consideration Schefenacker's market position in vision and lighting systems, biased towards the premium and luxury segments, and its track record of product innovation. Moody's also recognizes the strong historic relationship between Schefenacker and certain of its customers. Downgrades: Issuer: Schefenacker AG -- Corporate Family Rating, to Caa1 from B2; -- Senior Secured Bank Credit Facility, to Caa1 from B2; and -- Senior Subordinated Regular Bond/Debenture, Downgraded to Caa3 from Caa1. Based in Schwaikheim, Germany, Schefenacker is a leading private Tier 1 automotive supplier of rear vision systems, lighting systems and a Tier 2 supplier of sound systems. For the twelve months ended Dec. 31, 2005, Schefenacker generated revenues of EUR930.4 million. Revenues in the first half of 2006 totaled EUR456.9 million. SCHEFENACKER AG: Breach Risk Cues S&P to Cut Rating to CCC+ ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on German automotive-parts supplier Schefenacker AG to 'CCC+' from 'B-'. The outlook remains negative. "The downgrade reflects our increased concern that Schefenacker's weakening operating and financial performance could result in a breach of debt covenants and restrictions on liquidity," said Standard & Poor's credit analyst Barbara Castellano. " This poses a serious risk to the sustainability of the company's highly leveraged financial structure, with fully adjusted total debt to capital increasingly exceeding 100%." Performance in the first half of 2006 was below our expectations, and Schefenacker's revised guidance for 2006 and 2007 does not leave room for the prospect of improvement in the near future. Reported net debt increased to EUR372 million at end-June, from EUR334 million at end-December 2005. "While a large part of this increase was caused by seasonal factors, the negative cash flow we expect for the full year will affect debt at year-end," said Ms. Castellano. "Under these circumstances, the company's ability to respect its covenants in the next quarters seems more difficult." Schefenacker faces challenges in improving its financial performance and credit profile. In 2006, we expect EBITDA fixed-charge coverage to fall to below 2x as a result of a higher interest burden, which will not be completely offset by EBITDA improvement. Schefenacker also needs to improve its extremely leveraged capital structure. SCHRAMM BAUUNTERNEHMEN: Claims Registration Ends September 22 ------------------------------------------------------------- Creditors of Schramm Bauunternehmen GmbH have until Sept. 22 to register their claims with court-appointed provisional administrator Stephan Haspel. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Oct. 24 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 Landau in der Pfalz Room 225 Marienring 13 76829 Landau in der Pfalz, 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 Landau in der Pfalz opened bankruptcy proceedings against Schramm Bauunternehmen GmbH on July 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Schramm Bauunternehmen GmbH Attn: Udo Schramm, Manager Mirabellenweg 1 76756 Beilheim, Germany The administrator can be contacted at: Stephan Haspel Friedrich-Ebert-Str. 7 76829 Landau in der Pfalz, Germany Tel: 06341/51020 Fax: 06341/510229 SPS SCHLUECHTERNER: Claims Registration Ends September 29 --------------------------------------------------------- Creditors of SPS Schluechterner Personalservice GmbH have until Sept. 29 to register their claims with court-appointed provisional administrator Frank Bayer. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Oct. 24 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 Hanau Area E09 Branch Office Insolvency Court Engelhardstrasse 21 63450 Hanau, 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 Hanau opened bankruptcy proceedings against SPS Schluechterner Personalservice GmbH on July 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SPS Schluechterner Personalservice GmbH Attn: Bernhard Schafer, Manager Fliedener Str. 10 36381 Schluechtern, Germany The administrator can be contacted at: Frank Bayer Kuhgasse 3 63571 Gelnhausen, Germany Tel: 06051/92020 Fax: 06051/920220 STEINNAGEL GERUESTBAU: Claims Registration Ends September 30 ------------------------------------------------------------ Creditors of Steinnagel Geruestbau GmbH have until Sept. 30 to register their claims with court-appointed provisional administrator Joachim Walterscheid. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Oct. 31 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 Detmold Hall 12 Gerichtsstr. 6 Auxiliary Building 32756 Detmold, 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 Detmold opened bankruptcy proceedings against Steinnagel Geruestbau GmbH on Aug. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Steinnagel Geruestbau GmbH Grosser Stein 44 32657 Lemgo-Lieme, Germany Attn: Harald Steinnagel, Manager Rintelner Str. 269 32657 Lemgo, Germany Juergen Himmelmann, Manager Ahornstr. 90 32105 Bad Salzuflen, Germany The administrator can be contacted at: Joachim Walterscheid Kurpark 2 32545 Bad Oeynhausen, Germany Tel: 05731/8422330 Fax: 05731/8422350 ========= I T A L Y ========= KNOLL INC: Inks New Five-Year Labor Agreement with Carpenters ------------------------------------------------------------- Knoll Inc. entered into a new five-year collective bargaining agreement with the Carpenters Union, Local 1615, of the United Brotherhood of Carpenters and Joiners of America, Affiliate of the Carpenters Industrial Council. The Collective Bargaining Agreement was ratified by the Union on Aug. 25, 2006 and became binding at that time. It sets forth the terms and conditions of employment for bargaining unit members working at the Company's Grand Rapids, Michigan facility and becomes effective on Aug. 27, 2006. The Collective Bargaining Agreement continues until Aug. 27, 2011, after which time it would continue on a year-to-year basis. A full text-copy of the new collective bargaining agreement may be viewed at no charge at http://ResearchArchives.com/t/s?10a8 Headquartered in East Greenville, Pennsylvania, Knoll Inc., (NYSE:KNL) designs and manufactures branded office furniture products and textiles, serves clients worldwide. It distributes its products through a network of more than 300 dealerships and 100 showrooms and regional offices. The Company operates four manufacturing sites in North America: East Greenville, Pennsylvania; Grand Rapids and Muskegon, Michigan; and Toronto, Ontario. In addition, it has plants in Foligno and Graffignana, Italy. * * * As reported in the Troubled Company Reporter on July 18, 2006 Standard & Poor's Ratings Services raised its corporate credit rating and senior secured bank loan ratings, on Knoll Inc., to 'BB' from 'BB-'. The outlook was revised to stable from positive. =================== K A Z A K H S T A N =================== AK-JOL: Creditors Must File Claims by Sept. 22 ---------------------------------------------- OJSC Ak-Jol has declared insolvency. Creditors have until Sept. 22 to submit written proofs of claim to: OJSC Ak-Jol Kisileva Str. 16 Georgievka Jarmynsky District East Kazakhstan Region Kazakhstan ATYRAUSYSTEMCOMPLEKTTRUBSNAB: Claims Registration Ends Sept. 27 --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region declared LLP Atyrausystemcomplekttrubsnab insolvent. Creditors have until Sept. 27 to submit written proofs of claim to: LLP Atyrausystemcomplekttrubsnab 3rd Floor Abai Str. 10a Atyrau Atyrau Region Kazakhstan FLAMINGO: Creditors' Claims Due Sept. 22 ---------------------------------------- LLP Air-Line Flamingo has declared insolvency. Creditors have until Sept. 22 to submit written proofs of claim to: LLP Air-Line Flamingo Micro District 2, 16-10 Enbekshykazahskyi District Almaty Region Kazakhstan INTER BEST: Karaganda Court Opens Bankruptcy Proceedings -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region commenced bankruptcy proceedings against LLP Inter Best (RNN 302000252939). KREDO: Proof of Claim Deadline Slated for Sept. 22 -------------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan Region declared LLP Kredo insolvent on June 12. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Sept. 22 to submit written proofs of claim to: LLP Kredo Boat-yard by the name of Chapaev, 63 Uralsk West Kazakhstan Region Kazakhstan Tel: 8 (3112) 28-09-21 RITM: Creditors Must File Claims by Sept. 26 -------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan Region declared LLP RITM insolvent on July 5. Creditors have until Sept. 26 to submit written proofs of claim to: LLP RITM Chapaev Str. 2 Podstepnoye Terektinsky District West Kazakhstan Region Kazakhstan Tel: 8 (232) 36-4-72 SARYOBINSKOYE: Claims Registration Ends Sept. 27 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Akmola Region declared OJSC Saryobinskoye insolvent on June 29. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Sept. 27 to submit written proofs of claim to: OJSC Saryobinskoye Abai Str. 89-308 Kokshetau Akmola Region Kazakhstan STAFF: Creditors' Claims Due September 22 ----------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan Region declared LLP Staff insolvent on June 16. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Sept. 22 to submit written proofs of claim to: LLP Staff Boat-yard by the name of Chapaev, 63 ` Uralsk West Kazakhstan Region Kazakhstan Tel: 8 (3112) 28-09-21 TAZA-KALA-CENTRE: Proof of Claim Deadline Slated for Sept. 22 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl Region declared LLP Taza-Kala-Centre insolvent on June 27. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Sept. 22 to submit written proofs of claim to: LLP Taza-Kala-Centre Suleimanov Str. 17 (11a) Taraz Jambyl Region Kazakhstan Tel: 8 (3262) 43-76-49 =================== K Y R G Y Z S T A N =================== ENGINEERING-MANUFACTURING: Creditors' Claims Due Oct. 4 ------------------------------------------------------- OJSC Engineering-Manufacturing Commercial Centre has declared insolvency. Creditors have until Oct. 4 to submit written proofs of claim. Inquiries can be addressed to (+996 3134) 3-31-00. ===================== N E T H E R L A N D S ===================== ORTHOFIX INT'L: Acquisition Prompts Moody's to Cut Rating to Ba3 ---------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of Orthofix International N.V. to Ba3 from Ba2. The outlook remains stable. Moody's also assigned a Ba3 rating to the proposed US$375 million senior secured credit facilities of Orthofix Holdings Inc. (U.S.), a subsidiary of Orthofix International N.V. These rating actions follow the Aug. 7 announcement that Orthofix announced that it signed a definitive agreement to acquire Blackstone Medical Inc. for a total transaction value of US$345 million, including fees and expenses. Moody's anticipates the transaction will be financed with a proposed US$330 million term loan and US$15 million cash. Moody's expects the company will have no borrowings under its proposed US$45 million senior secured revolving credit facility. Blackstone, with its headquarters in Springfield, Massachusetts, is a privately owned U.S. company that designs, develops and markets spinal implants and instruments used in spinal surgery. For the 12 months ended June 30, 2006, Blackstone generated over US$70 million in revenue. The downgrade primarily reflects a significant increase in the company's debt leverage, as measured primarily by its cash flow coverage of debt and EBIT coverage of interest expense, because the transaction is predominantly financed with the issuance of debt. At the same time, Moody's believes that the company's credit profile will be negatively affected by Blackstone's negative operating cash flow. The following ratings were assigned to Orthofix Holdings Inc. (U.S.), a subsidiary of Orthofix International N.V, in conjunction with the proposed Blackstone acquisition: -- US$45 million Senior Secured Revolver, due 2012: Ba3; and -- US$330 million Senior Secured Term Loan B, due 2013: Ba3. Moody's downgraed the Corporate Family Rating of Orthofix International N.V. to Ba3, from Ba2 Moody's will also withdraw these ratings assigned to Colgate Medical, Ltd., a subsidiary of Orthofix International, Inc., as all debt has been paid: -- US$110 million five-year term loan: Ba2; and -- US$15 million five-year revolver: Ba2. Orthofix International N.V., a limited liability company, organized under the laws of the Netherlands Antilles, is a provider of pre- and post-operative products to the orthopedic market place. The company reported US$313 million in net sales during 2005. ORTHOFIX HOLDINGS: S&P Assigns BB- Rating to Credit Facility ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its secured loan and recovery ratings to Orthofix Holdings Inc.'s proposed U$45 million revolving credit facility maturing in 2012 and $330 million term loan B maturing in 2013. The loan was rated 'BB-' with a recovery rating of '2', indicating the expectation for substantial (80%-100%) recovery of principal in the event of a payment default. The company intends to use the debt proceeds from the term loan and approximately US$15 million of on-hand cash to purchase Blackstone Medical Inc. for US$333 million and fund related fees and expenses. The acquisition should improve Orthofix's product offerings in the high-growth spine market. The 'BB-' corporate credit rating on Orthofix International N.V. was affirmed and removed from CreditWatch, where its was placed with negative implications Aug. 7 due to concerns about the company's post-acquisition debt leverage. The rating outlook is stable. "The 'BB-' rating is based on Orthofix's operation in highly competitive markets, potential integration difficulties, significant debt leverage, and the recent shortfall of operating cash flow in 2006," said Standard & Poor's credit analyst Jesse Juliano. "These factors are partially offset by the company's diverse revenue stream, solid niche positions, and history of aggressively reducing debt leverage." Huntersville, N.C.-based Orthofix is a leading provider of minimally invasive medical devices predominantly serving the spine (44% of pro forma revenue), reconstruction (31% of pro forma revenue), and trauma markets (16% of pro forma revenue). The company has leading positions and patent protection in the bone growth stimulation (BGS) market--Orthofix's largest product segment. The company also has specialty fixation, vascular therapy, bracing, biologics, cold therapy, and pain management products. =========== R U S S I A =========== AGRO-KHIM-SERVICE: Court Names Y. Kushenko as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Omsk Region appointed Ms. Y. Kushenko as Insolvency Manager for LLC Agro-Khim-Service. She can be reached at: Y. Kushenko Post User Box 4143 644089 Omsk-89 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A46-7175/2006. The Debtor can be reached at: LLC Agro-Khim-Service Yuzhnyj 6A Kormilovskiy Region 646970 Omsk Region Russia ALFA BANK: Opens Three Mortgage-Lending Centers in Russia --------------------------------------------------------- Alfa Bank reports that it has opened three mortgage-lending centers in Russia -- Moscow, St. Petersburg and Nizhny Novgorod -- and also launched an advertising campaign in national and regional mass media. These centers are fully fledged offices where Alfa-Bank's customers can receive consultation, obtain housing loans, finalize transactions, pay initial installments, and so on. The whole process of lending takes place under one roof. The facilities are in central city locations and offer comfortable customer areas, meeting rooms, cash desks, and depositories, all equipped to the highest standards. In just one year Alfa-Bank has set up and launched its mortgage- lending program from scratch. Alfa-Bank, known in Russia as a universal "Financial Supermarket," now offers a complete range of credit products distinguished by their beneficial advantages for individual customers. The application review time is three to five business days from receipt of a full documentation. Customers are not required to show their residence registration, and non-residents of the Russian Federation can also obtain mortgage loans. Another clear advantage of the products offered by Alfa-Bank is the extended range of loan repayment methods: loan payments can be made at any of the Bank's offices throughout the country, irrespective of the city where the loan was originally taken out. Today, Alfa-Bank offers mortgage loans, in both rubles and US dollars, for property purchase in the secondary housing market. Alfa-Bank's programs are affordable to buy accommodation in Moscow, Moscow region, St. Petersburg, Leningrad region and Nizhny Novgorod. Alfa-Bank plans to open three more fully- fledged centers for mortgage lending in the regions in 2006 and offer mortgage loans in all cities of more than 1 million residents over the next year. Alfa-Bank's specialists are working on new types of mortgage loans, improving customer service, increasing the number of partners, expanding the geographical market, and responding promptly to all changes and developments in the market. In addition, before the end of this year the Bank plans to offer loan products to buy new-build apartments -- a sector that the Company believes will see high demand in the mortgage-lending market -- as well as loan products for existing real estate. About Alfa Bank Headquartered in Moscow, Russia, Alfa Bank -- http://www.alfabank.com/-- provides services in every key sector of the financial service industry, including corporate banking, retail banking, investment banking, trade finance, insurance and asset management. Alfa-Bank's branch network has grown to 121, including subsidiary banks in Russia, Ukraine, Kazakhstan and the Netherlands. In 2005 total assets of the Alfa-Bank and its subsidiaries grew to US$9.8 billion, total equity increased to US$855.8 million, loan portfolio net of provisions increased to US$5.7 billion. The net profit for a year 2005 was US$180.6 million. * * * As reported in TCR-Europe on July 17, Moody's Investors Service upgraded Alfa Bank's Financial Strength Rating to D from D- and changed its outlook to stable from positive. At the same time, the bank's Ba2 long-term foreign currency deposit and senior unsecured debt ratings have been affirmed with their corresponding outlooks changed to stable. The bank's Not-Prime short-term foreign currency deposit and debt ratings and their outlook remain unchanged. Fitch Ratings has assigned Alfa Bond Issuance's issue of 10-year limited recourse loan participation notes a final Long-term 'B-' rating. The notes have been issued solely for financing a subordinated loan to Russia's Alfa Bank (Alfa, rated Long-term 'B+'/Stable, Short-term 'B', Support '4', Individual 'D', National Long-term 'A(rus)'/Stable). The issuer will only pay noteholders amounts (principal and interest), if any, received from Alfa under the loan agreement. BELOVO: Kemerovo Court Names Y. Deriglazov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Kemerovo Region appointed Mr. Y. Deriglazov as Insolvency Manager for OJSC Belovskiy Engineering Factory Belovo. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A27-8718/2006-4. The Arbitration Court of Kemerovo Region is located at: Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: OJSC Belovskiy Engineering Factory Belovo Aerodromnaya Str. 109 Belovo 652600 Kemerovo Region Russia BOLSHEMURTINSKIY WOODWORKING: L. Sitkina to Manage Assets --------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Ms. L. Sitkina as Insolvency Manager for LLC Bolshemurtinskiy Woodworking Factory. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-9503/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: LLC Bolshemurtinskiy Woodworking Factory Krasnoyarsk Region Russia BUYSKIY DIARY: Court Names S. Bondarev as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Kostroma Region appointed Mr. S. Bondarev as Insolvency Manager for OJSC Buyskiy Diary. He can be reached at: S. Bondarev Sovetskaya Str. 97-104 156005 Kostroma Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A31-2208/06-12. The Debtor can be reached at: OJSC Buyskiy Diary Obyezdnoj Proezd 17 Buy 157000 Kostroma Region Russia CENTERTELECOM OAO: Aims to Raise US$115 Million to Repay Debt ------------------------------------------------------------- OAO CenterTelecom (RTS:ESMO) is planning to raise US$115 million in the foreign markets to refinance and restructure its existing debt, RIA Novosti says. Yana Lavrentyeva, the director of CenterTelecom's information policy department, said the company has yet to decide whether to raise the amount via credit-linked notes or a syndicated loan, the Russian news agency relates. "Everything will depend on the market situation," Mr. Lavrentyeva to RIA Novosti. About CenterTelecom OAO CenterTelecom -- http://www.centertelecom.ru/eng-- provides fixed-line and mobile communications in the Russian Central Federal District. CenterTelecom had a charter capital of RUR6.31 billion (about US$234 million) as of July 1, 2006. The company's shares are listed on the Russian Trading System stock exchange and the Moscow Inter-Bank Currency Exchange, and its Level-1 American Depositary Receipts circulate on the U.S. over-the-counter market and the Berlin and Frankfurt stock exchanges. * * * As reported in TCR-Europe on Feb. 9, Fitch Ratings assigned Issuer Default ratings to companies in the European Telecommunications, Media and Technology sectors. Revised Senior Unsecured ratings now apply to the senior unsecured bond issues of these entities. CenterTelecom now carries Fitch's B- rating with a negative outlook. CRYSTAL: Penza Court Names O. Belov as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Penza Region appointed Mr. O. Belov as Insolvency Manager for OJSC Crystal. He can be reached at: Post User Box 2094 Proletarskaya Str. 6 440061 Penza Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A49-2587/2006-2566/3. The Debtor can be reached at: OJSC Crystal Zavodskaya Str. 16 Sakhzavod Bekovskiy Region Penza Region Russia FORD MOTOR: Mulls Doubling Russian Car Sales in 2006 ---------------------------------------------------- Ford Motor Co. is planning to nearly double its Russian sales from 60,654 vehicles to 120,000 cars this year, RIA Novosti says. Ford President Henrik Nenzen is optimistic that the company would improve its position in the Russian car market, the Russian news agency relates. Mr. Nenzen noted that Ford has doubled its first-half sales to 48,840 cars and expected the trend to continue for the whole year. Ford entered the Russian market in July 2002 when it opened its Vsevolozhsk site, with a US$150 million investment. The company is planning a US$250-million upgrade of the Vsevolozhsk site, increasing the site's annual production to 30,000 Ford Mondeos, 20,000 Ford Mavericks and 100,000 Ford Focus models. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Company -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees 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 and The Hertz Corporation. * * * As reported in the Troubled Company Reporter on Aug. 22, 2006, Dominion Bond Rating Service placed long-term debt rating of Ford Motor Company Under Review with Negative Implications following announcement that Ford will sharply reduce its North American vehicle production in 2006. DBRS lowered on July 21, 2006, Ford Motor Company's long-term debt rating to B from BB, and lowered its short-term debt rating to R-3 middle from R-3 high. DBRS also lowered Ford Motor Credit Company's long-term debt rating to BB(low) from BB, and confirmed Ford Credit's short-term debt rating at R-3(high). Fitch Ratings also downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered the Ford's senior unsecured rating to 'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB- /RR2' from 'BB/RR2'. The Rating Outlook remains Negative. Standard & Poor's Ratings Services also placed its 'B+' long- term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related entities on CreditWatch with negative implications. 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. The outlook for the ratings is negative. GAZPROM OAO: Extends Existing E.ON Contracts to 15 Years -------------------------------------------------------- Alexander Medvedev, Deputy Chairman of OAO Gazprom's Management Committee, and Burckhard Bergmann, Chairman of E.ON Ruhrgas AG, signed an Agreement to extend the existing contracts for gas supply via Waidhaus for a further 15 years from 2020 to 2035. An Agreement was also reached for supplying additional gas via the North-European Gas Pipeline. Under the extended contracts, the annual gas supplies will reach some 20 bcm, while the total gas supplies will amount to 300 bcm. The contract for gas deliveries via the NEGP stipulates that annual transmission will be some 4 bcm and total gas transit over the 2010/2011-2036 period will be around 100 bcm. "These contracts strengthen our partnership with the largest gas producer in the world," commented Mr. Bergmann. "At the same time we can compensate for decreasing gas deliveries from Western European resources and provide additional gas volumes for the growing European market." "This long-term cooperation in gas business operations not only enables current commitments to be met but also creates a basis for future development of the present-day infrastructure to ensure reliable gas supplies for the decades to come. The long- term contract for NEGP gas deliveries signed today has special significance. The new contract is further evidence of the successful development of the project," added Alexander Medvedev. The German company E.ON AG is one of the world's largest private energy and gas corporations with an annual revenue of up to ? 56 billion and some 80,000 personnel. It was formed in 2000 as a merger of VEBA and VIAG. From February 2003 E.ON Ruhrgas AG (known as Ruhrgas AG until June 1, 2004) is a part of the E.ON Group with responsibilities for the pan-European gas business including gas production, distribution, transmission and storage. The company operates 11,273 km of gas pipeline systems and has 12 of its own large underground gas storage facilities with a total active gas volume of 5.1 bcm. With overall sales of 690.2 billion kw/h, E.ON Ruhrgas AG is the largest gas distributor in Germany and is one of the three leading companies in Europe. The basis for cooperation between the company and Gazprom was laid in the early 70s when Ruhrgas AG, along with a number of German industrial companies and banks took part in developing the gas transit pipeline system for delivering Russian gas from Siberia to Western Europe. E.ON Ruhrgas AG, one of the largest foreign shareholders in Gazprom, with around a 6.5% share. Gazprom has successfully cooperated with E.ON Ruhrgas over a long period, including in the fields of gas pipeline corrosion protection, optimizing operation of gas compressor units and dispatching. On June 8, 2004, Gazprom and E.ON AG signed a Memorandum of Understanding on further cooperation in the companies' strategic projects for gas deliveries as well as for production, transmission, marketing and the power industry. On July 12, 2006, Gazprom and E.ON AG signed a framework Agreement for asset exchange in natural gas production, sales and trade and the power industry. The parties agreed to exchange 25% minus one share in the Yuzhno-Russkoye gas condensate field for a majority shareholding in E.ON Ruhrgas. This includes share participation in E.ON Ruhrgas' Hungarian gas companies, such as E.ON Fuldgaz Storage and E.ON Fuldgaz Trade (50% share minus one share in each company) as well as a 25% share plus one share in the E.ON Hungaria regional energy and gas company. Additionally, Gazprom and E.ON agreed on the implementation of joint projects for energy production at European gas-fired power stations. About Gazprom Headquartered in Moscow, Russia, OAO Gazprom (RTS: GAZP; MICEX: GAZP; LSE: OGZD) -- http://www.gazprom.ru/eng-- produces 94% of the country's natural gas, controls 25% of the world's reserves, and is also the world's largest gas producer. It focuses on gas exploration, processing, transport, and marketing. Standard & Poor's Services raised on Jan. 17, 2006, its long-term corporate credit rating on OAO Gazprom to 'BB+' from 'BB'. * * * As reported in TCR-Europe on Jan. 18, Standard & Poor's Services raised its long-term corporate credit rating on OAO Gazprom to 'BB+' from 'BB'. As reported in the TCR-Europe on Oct 27, 2005, Fitch upgraded Gazprom International S.A. Series 1 US$1.25-billion structured export notes due Feb. 1, 2020 (XS0197695009) to 'BBB' from 'BBB-'. The upgrade follows Fitch's upgrade of OAO Gazprom's, the world's largest gas company, Senior Unsecured local and foreign currency to 'BB+' from 'BB', and a change in Gazprom's going concern assessment, which is now equivalent to a 'BBB' rating compared to 'BBB-' previously. KHLEVENSKOYE TRANSPORT: K. Glodev to Manage Insolvency Assets ------------------------------------------------------------- The Arbitration Court of Lipetsk Region appointed Mr. K. Glodev as Insolvency Manager for OJSC Khlevenskoye Transport Enterprise. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A36-2984/2005. The Arbitration Court of Lipetsk Region is located at: Skorokhodova Str. 2 398019 Lipetsk Region Russia The Debtor can be reached at: OJSC Khlevenskoye Transport Enterprise Khlevnoye Khlevenskiy Region Lipetsk Region Russia KURSKAYA ROAD: Kursk Court Starts Bankruptcy Supervision -------------------------------------------------------- The Arbitration Court of Kursk Region has commenced bankruptcy supervision procedure on LLC Kurskaya Road Company. The case is docketed under Case No. A35-4145/06 g. The Temporary Insolvency Manager is: O. Parfenov Malykh Str. 44-b 305019 Kursk Region Russia The Debtor can be reached at: LLC Kurskaya Road Company Engelsa Str. 171-A 305047 Kursk Region Russia KUYBYSHEVSKIY AGRO-SNAB: Court Starts Bankruptcy Supervision ------------------------------------------------------------ The Arbitration Court of Novosibirsk Region has commenced bankruptcy supervision procedure on OJSC Kuybyshevskiy Agro- Snab. The case is docketed under Case No. A45-16437/05-27/279. The Temporary Insolvency Manager is: V. Rudenko Post User Box 124 630051 Novosibirsk Region Russia The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: OJSC Kuybyshevskiy Agro-Snab Kraskoma Str. 1 Kuybyshev 632387 Novosibirsk Region Russia LYUBIMSKIY CHEESE-BUTTER-MAKING: Court Hearing Set for Sept. 13 --------------------------------------------------------------- The Arbitration Court of Yaroslavl Region will convene on Sept. 13 to hear the bankruptcy supervision procedure on OJSC Lyubimskiy Cheese-Butter-Making Factory. The case is docketed under Case No. A82-2985/06-30-B/57. The Temporary Insolvency Manager is: A. Suchkov Pochtovaya Str. 12/2 150000 Yaroslavl Region Russia The Debtor can be reached at: OJSC Lyubimskiy Cheese-Butter-Making Factory Obnorskaya Str. 33/2 Lyubim 152470 Yaroslavl Region Russia MARYEVSKOYE: Court Names P. Baranov as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. P. Baranov as Insolvency Manager for OJSC Maryevskoye. He can be reached at: Mr. P. Baranov Lenina Str. 101 Balay Uyarskiy Region 663932 Krasnoyarsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-9591/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: OJSC Maryevskoye Maryevka Uyarskiy Region 663930 Krasnoyarsk Region Russia MOBILE TELESYSTEMS: Appoints New Management Directors ----------------------------------------------------- Mobile Telesystems OJSC disclosed new appointments as part of the company's reorganization of its management structure. The managerial staff list has been reorganized as approved by the Company's Board. The position has been created of Vice President, Director of Business unit MTS Russia has been created. Mikhail Shamolin, previously Vice President for Sales and Customer Service, was appointed to this position and will report directly to the company's president. These staff will report directly to MTS Russia's Head of Business unit, Mikhail Shamolin: -- Directors of all branches (macro-regions) of MTS: -- director of macro-region Moscow, Svetlana Shamzon, -- director of macro-region Centre, Konstantin Markov, -- director of macro-region North-West, Ivan Zolochevsky, -- director of macro-region Ural, Andrei Dubovskov, -- director of macro-region Sibi, Aleksander Marishin, -- director of macro-region Povolzhye South-East, Marat Ayupov, -- director of macro-region Povolzhey North-West, Aleksander Popovsky, -- director of macro-region Far East, Dmitry Lapitsky, -- director of macro-region South, Dmitry Vitchinka, and -- director of macro-region South-West, Leonid Denisov -- Chief Marketing Officer of Business unit MTS Russia, Garrett Johnston; -- Deputy Director for Technical Matters and IT of Business unit MTS Russia, Andrei Ushatsky; -- Deputy Sales Director of Business unit MTS Russia, Mrs. Maria Chinkova; -- Director for Regional Management of Business unit MTS Russia, Viacheslav Nikolaev; -- Director of Human Resources Department of Business unit MTS Russia, Ms. Natalya Strelkova, and -- Director of Customer Service Department of Business unit MTS Russia, Vladislav Pozdyshev. About Mobile TeleSystems Headquartered in Moscow, Russia, Mobile TeleSystems OJSC -- http://www.mtsgsm.com/-- company provides global system for mobile communications technology-based mobile telecommunications services in Russia, Belarus, Ukraine, Uzbekistan and Turkmenistan. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). As of Dec. 31, 2005, MTS had a working capital deficit of US$631.6 million, compared with a US$189 million working capital deficit at Dec. 31, 2004. MTS is rated to BB-/outlook stable by S&P in and Ba3/outlook stable by Moody's. NAVIKA: Moscow Court Starts Bankruptcy Supervision -------------------------------------------------- The Arbitration Court of Moscow has commenced bankruptcy supervision procedure on LLC Navika. The case is docketed under Case No. A40-31193/06-95-571B. The Temporary Insolvency Manager is: N. Zaytsev Leningradskoye Shosse 15-224 125171 Moscow Region Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: LLC Navika Furmannyj Per. 24 105062 Moscow Region Russia NORTH-WEST TELECOM: Unveils Asset Management Update for 1H 2006 --------------------------------------------------------------- North-West Telecom disclosed that its net income margin has reached 9% and EBITDA margin 26.8% in the first half of 2006. One of the basic goals of JSC North-West Telecom's long-term development strategy is to maintain the level of EBITDA margin growth at least 1 p.p. per year. To achieve the targets, the Company is implementing a strategy to improve the management efficiency of assets and subsidiaries. The main goal of JSC North-West Telecom's business reorganization is to liquidate investments in non-core or unprofitable assets and to develop the Company's participation in strategic profile companies. In 2005, as a result of withdrawal from 10 commercial and five non-profit companies, the income of JSC North-West Telecom from selling those assets made RUB4.1 million. In 2006, JSC North- West Telecom plans to terminate its participation in eight commercial and one non-profit organizations; the income from selling these interests are expected to amount to about RUR41 million. A significant part of Company's assets are real estate and land plots: at the moment, the property of North-West Telecom comprises 1,356,500 sq. m. in area (including 529,600 sq. m. in St. Petersburg) and 4,044,800 sq. m of land plots (including 507,600 sq. m. in St. Petersburg). The share of operating premises is 60%. As a result of network reorganization and updating in 2005, North-West Telecom: -- abandoned 6,100 sq. m. of leased premises, and another 21,500 sq. m in the 1H 2006; -- leased out 67,500 sq. m, and 74,900 sq. m in the same period. The income from leasing out the premises amounted to RUB187.8 million in 2005; and according to the plans for 2006 incomes will amount to RUR 200 million. To improve the efficiency of property management, JSC North-West Telecom has planned a minimum 3% annual reduction in the quantity of leased spaces. In 2005 North-West Telecom sold 28 sites of real estate, and another 31 sites in 1H 2006. It is expected that in 2006 over 25,000 sq. m. of Company's real estate will be sold. The income from real estate sale in 2005 amounted to RUR27.4 million and in 2006 it is expected to raise RUR68.2 million. About North-West Telecom OAO North-West Telecom (OTC: NWTEY; RTS: SPTL) is one of Russia's major telecommunication companies, and the leading operator in the North-West Federal District, providing traditional telephone services, as well as Internet and advanced data services. NWT originated from the merger of 10 regional fixed line operators and is ranked among the Financial Times' Top 100 major Eastern European companies. NWT ranks eighth in Standard & Poor's Transparency Index of the 50 largest MICEX- listed companies and fifth in the S & P Corporate governance rating. NWT international debt is rated by S&P B+ with stable outlook and domestic debt ruA+. * * * As reported in TCR-Europe on Aug. 14, Fitch affirmed Russia- based OAO North-West Telecoms' Issuer Default rating at B+ with a Stable Outlook and Short-term rating at B. The reflect NWT's dominant market position as a regional incumbent telecoms operator. The company controls about 76% of the local services market and is well positioned to retain its dominance in this segment. Although its market share is strong, it is smaller in the corporate segment where it controls about 55% of fixed lines. Standard & Poor's has assigned B+ ratings to North-West Telecom's long-term foreign issuer and local issuer credit ratings. PROKHLADNOYE: Kaliningrad Court Starts Bankruptcy Supervision ------------------------------------------------------------- The Arbitration Court of Kaliningrad Region has commenced bankruptcy supervision procedure on CJSC Prokhladnoye. The case is docketed under Case No. A21-2079/2006. The Temporary Insolvency Manager is Mr. O. Soldatov. He can be reached at: Leningradskoye Shosse 15-224. 125171 Moscow Region Russia The Arbitration Court of Kaliningrad Region is located at: Rokossovskogo Str. 2 Kaliningrad Region Russia The Arbitration Court of Kursk Region is located at: K. Marksa Str. 25 305004 Kursk Region Russia The Debtor can be reached at: CJSC Prokhladnoye Prokhladnoye Slavskiy Region Kaliningrad Region Russia PROMSVYAZBANK JSCB: To Hike Capital by 34.6% via Share Issue ------------------------------------------------------------ JSCB Promsvyazbank will issue 26,032 new ordinary bearer shares to prop up its authorized capital by 34.6% to RUR5.12 billion (US$190 million), RIA Novosti says. The shares will be placed on a closed subscription at a face value of RUR50,000 (US$1,800) each. Promsvyazbank's approved the capital increase at an emergency meeting last month. As reported in TCR-Europe on Aug. 31, Commerzbank AG has agreed to acquire a 15.3% stake in Promsvyazbank for an undisclosed amount in participation of the capital increase. About Promsvyazbank Headquartered in Moscow, Russia, JSCB Promsvyazbank -- http://www.psbank.ru/eng-- provides a wide range of banking services for the large communication enterprises. The bank is also an active player on the loan and investment markets, securities and interbank loans market as well as the international and Russian plastic cards market. * * * In February 2006, Fitch assigned the following ratings to the company, with a stable outlook: * Short-term: B; * Long-term: B; * Individual: D; * Support: 5; In December 2005, Moody's Investors Services assigned these ratings to the company: * Long and Short-term foreign currency deposits: Ba3/NP * Financial Strength Rating: D- * Stable outlook, while Standard & Poor's Ratings Services assigned these ratings in September 2005: * 'B/C' long- and short-term counterparty credit and certificate of deposit ratings; * Stable outlook. SIBERIAN BUILDER: Court Names S. Lebedev as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Novosibirsk Region appointed Mr. S. Lebedev as Insolvency Manager for CJSC Siberian Builder. He can be reached at: S. Lebedev Kamenskaya 64a Novosibirsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-8133/06-4/30. The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: CJSC Siberian Builder Mochinshenskoye Shosse 18-57 Novosibirsk Region Russia SIBIRSKOYE: Bankruptcy Hearing Slated for October 25 ---------------------------------------------------- The Arbitration Court of Novosibirsk Region will convene at 9:30 a.m. on Oct. 25 to hear the bankruptcy supervision procedure on OJSC Sibirskoye. The case is docketed under Case No. A45-11593/ 06-10/252. The Temporary Insolvency Manager is: Y. Gomerov Post User Box 325 Krasnoobsk-1 630501 Novosibirsk Region Russia The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: OJSC Sibirskoye Sibirskiy Kupinskiy Region 632744 Novosibirsk Region Russia STORM: Kursk Court Names V. Skorikov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Kursk Region appointed Mr. V. Skorikov as Insolvency Manager for CJSC Company Storm. He can be reached at: V. Skorikov Apartment 27 Radisheva Str. 8 305004 Kursk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A35-3787/06 g. The Arbitration Court of Kursk Region is located at: K. Marksa Str. 25 305004 Kursk Region Russia The Debtor can be reached at: CJSC Company Storm 3rd Peskovskaya Str. 14a Kursk Region Russia STROY-INVEST: Bankruptcy Hearing Slated for November 1 ------------------------------------------------------ The Arbitration Court of Ivanovo Region will convene at 1:00 p.m. on Nov. 1 to hear the bankruptcy supervision procedure on CJSC Stroy-Invest. The case is docketed under Case No. A17- 1391/06-10-B. The Temporary Insolvency Manager is: V. Zorov K. Marksa Str. 9 Kineshma 155800 Ivanovo Region Russia The Arbitration Court of Ivanovo Region is located at: B. Khmelnitskogo Str. 59B Ivanovo Region Russia The Debtor can be reached at: CJSC Stroy-Invest Kineshma, Vysokaya Str. 2. Ivanovo Region Russia SUAL GROUP: RusAl Dismisses Merger Reports as Rumor --------------------------------------------------- Russky Alyuminiyum (RusAl) dismissed recent press reports of a possible merger with Siberian-Urals Aluminium Company (SUAL) as a rumor, says RosBusinessConsulting. According to press reports, RusAl, SUAL, and Swiss company Glencore signed a non-binding agreement for a EUR23.5 billion merger. Press reports speculate that the combined entity would trade on the London Stock Exchange and would be headed by SUAL chief executive Brian Gilbertson. SUAL is currently reviewing two options: merge with RusAl or launch an initial public offering, RosBusinessConsulting reports citing an unnamed source. Meanwhile, analysts believed the merger reports might be true. Majority of the analysts, however, said the deal is possible but only in the future. Experts told RBC that the RusAl-SUAL merger would create the world's largest aluminum company with market capitalization of US$20 billion. About RusAl Headquartered in Moscow, Russia, Russky Alyuminiyum -- http://www.rusal.com/-- produces and smelts aluminium with US$6.65 billion in revenues in 2005. The group produced 2.714 million tons of primary aluminium in 2005. RusAl employs about 50,000 people in nine Russian regions and thirteen countries. About SUAL Headquartered in Moscow, Russia, Siberian-Urals Aluminium Company -- http://www.sual.com/-- produces and smelts aluminium and ranks amongst the world's top ten producers. It comprises 18 businesses that are located in nine Russian regions and in Ukraine, Zaporozhye City, are involved in the production of bauxite, alumina, primary aluminium, silicon, semi-finished and finished aluminium products. The Group's revenue for the year ended Dec. 31, 2005, was US$2.7 billion. It has 60,000 employees. * * * Standard & Poor's Ratings Services assigned its 'BB-'long-term corporate credit rating to SUAL International Ltd. The outlook is stable. Standard & Poor's also assigned its 'ruAA-' Russian national scale rating to SUAL. At the same time, Moody's Investors Service, assigned 'Ba3' corporate family rating to SUAL International Ltd. Outlook is stable. SUAL INT'L: Merger Uncertainty Spurs S&P to Keep BB- Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that the BB- long-term corporate credit rating (stable outlok) on Russia-based aluminum company Sual International Ltd. remain unchanged following press reports concerning a non-binding agreement for Sual to merge with Rusal, another Russian aluminum company, and Glencore International AG's alumina assets. There is a high amount of uncertainty about whether the deal will proceed and, if it does, what implications it would have for the combined group's financial profile and financial policy in areas such as acquisitions, dividends, and debt. If such a transaction were to occur, Standard & Poor's would treat it as a special event that is not currently factored in the ratings or outlook on Sual. Press reports about this transaction and related financial details (notably whether any pre-merger or merger-related cash payments are being considered) have not been confirmed by any of the companies involved. Although S&P believes that a combined entity would enjoy a strong business profile, with a diversified asset base and low cost profile, potential rating implications for Sual cannot be evaluated at this stage due to major uncertainty on the financial side. TATNEFT OAO: Says S&P Credit Rating Withdrawal Unjustified ---------------------------------------------------------- Standard & Poor's recently announced the withdrawal of the credit rating for OAO Tatneft due to, in the opinion of S&P, a continuing lack of information. OAO Tatneft expresses its surprise at S&P's decision and believes that the withdrawal of its credit rating is not justified, given its recent increased financial disclosure, actions taken and the Company's commitment to ongoing transparency. However, Tafneft stresses that it respects S&P's policy in taking decisions on credit ratings. The press release regarding withdrawal of the company's credit rating set by S&P says: "the rating withdrawal reflects a lack of information on the company's consolidated financial position and its strategy." The S&P statement further says: "for the third year in succession Tatneft has substantially delayed publishing its audited U.S. GAAP accounts, which have been much later compared with those of local peers. The 2004 accounts were published in June 2006, and the 2005 financials are not yet available. The nature of relationships with the government of the Republic of Tatarstan (BB-/Stable/-) and other related parties is increasingly unclear and there is a lack of clarity regarding financing of the major Nizhnekamsk refinery project (for a total estimated cost of U$4.8 billion)." On June 26, 2006, OAO Tatneft published 2004 consolidated financial statements for the Tatneft Group, prepared in accordance with U.S GAAP. These were supported with an unqualified auditor's report as well as unaudited U.S. GAAP financial statements of Tatneft Group for 1H 2005. In addition, the company, on a confidential basis, provided S&P with draft US GAAP financial statements for the Tatneft Group for 2005, as well as explanations of these statements. OAO Tatneft recognises and agrees with S&P's statement that "the rating withdrawal does not necessarily indicate a deterioration of the company's credit quality", particularly given the Company's increased cash and profit generation and the Group's improved liquidity and financial strength. The company has regularly provided S&P with information on OAO Tatneft's financial position. Information is regularly published in its issuer's quarterly reports on the financial position (under Russian Accounting Rules or RAR) of OAO Nizhnekamskshina, the largest of the Company's subsidiaries. Therefore, the company believes that S&P has a good deal of current information on OAO Tatneft's consolidated financial position. The Company has indeed delayed release of 2005 audited consolidated financial statements for the Tatneft Group and filing its annual report on Form 20-F for 2005 with the U.S. Securities and Exchange Commission. This was due to delays in the preparation of audited US GAAP financial statements for 2003 and 2004. These delays were primarily caused by an investigation into certain transactions involving Tatneft Group companies reflected in the US GAAP consolidated financial statements of Tatneft Group for 2003, which were completed only at the beginning of June 2005. The company, in numerous press releases, has discussed the reasons for the investigation, and the manner in which it has been resolved. The U.S. GAAP 2005 consolidated financial statements for the Tatneft Group are currently being audited independently, and the company expects the audit to be completed in Q4 2005. OAO Tatneft is planning to announce a more detailed timetable for completion of the audit of the U.S. GAAP consolidated financial statements for 2005 in the first half of September 2006. Annual reports of the company (including on Form 20-F) clearly define its strategic goals, which include, in particular: -- maintaining oil production levels at existing oil fields; -- increasing the resource base, including outside of the Republic of Tatarstan; -- strengthening vertical integration by developing the company's network of refining and petrol stations; and -- compliance with advanced principles of corporate governance. OAO Tatneft regularly informs investors and the public in press releases about its actions to reach these strategic goals. For example, the following steps to improve corporate governance have been taken in the last few years: -- independent directors were elected to the Board of Directors of OAO Tatneft; -- these committees of the Board of Directors were formed and are now operating: -- audit, -- human resources -- remuneration, -- disclosure and -- corporate governance; -- the department of internal audit was reorganized; -- the consolidated financial reporting department was expanded; and -- communication with investors and shareholders has been improved. OAO Tatneft discloses information on its transactions with related parties in compliance with regulatory requirements and applicable accounting standards. The company believes that it has provided S&P with explanations regarding related party transactions. The relationship with the Republic of Tatarstan, is premised on mutual benefit and observance of interests of all company shareholders. The Republic of Tatarstan (through OAO Svyazinvestneftekhim) is the largest shareholder of OAO Tatneft, holding 33.59% of all shares in the company. "Tatneft is the most important company in Tatarstan. The Republic of Tatarstan, as the largest shareholder, is interested more than anyone else in Tatneft's successful operations and that it reaches its primary goal -- making profit," said Rustam N. Minnikhanov, the Prime Minister of the Republic of Tatarstan and the Chairman of the Board of Directors of OAO Tatneft speaking at a Company BoD meeting. In particular, the Government of the Republic of Tatarstan supported the company in connection with the approval of amendments to the Russian Tax Code. This was related to differentiation of oil production tax and granting financing from the Investment Fund of the Russian Federation for the construction of infrastructure for the oil refining and petrochemical complex at Nizhnekamsk. In connection with financing of this latter project, as reported to S&P, ZAO Nizhnekamsk Refinery, together with financial advisors for the project, is developing a structure for financing the construction of the complex. As previously reported, a significant portion of the funds for the construction of the complex is expected to be attracted on a project finance basis. Until this work is completed, the company believes that it is not possible to provide S&P with finalised plans for financing the construction of the complex. In addition, on June 26, the Government Commission for Investment Projects of National Importance approved co-financing from the Investment Fund of the Russian Federation for construction and reconstruction of external transport infrastructure for the oil refining and petrochemical complex at Nizhnekamsk amounting to RUR16.5 billion. OAO Tatneft's investment program provides for an extension in 2006 of RURR6.7 billion for financing works related to the construction of the complex until external financing is obtained by ZAO Nizhnekamsk Refinery. As of 30 June 2006, cash of OAO Tatneft under RAR was RUR12.5 billion, while the long-term and short-term loans of OAO Tatneft under RAR as of June 30, 2006, were RUR2.3 billion and RUR1.3 billion, respectively. According to Evgeny A. Tikhturov, Head of Finance Department of OAO Tatneft, the company is currently in a position to repay all indebtedness under its loans and credits at the first request from creditors'. OAO Tatneft is repaying its debt under loans and credits in time and in strict compliance with the loan agreement terms. Long-term and short-term loans and credits of OAO Nizhnekamskshina, the largest subsidiary of OAO Tatneft, under RAR as of June 30, 2006, were RUR229 million and RUR1.8 billion respectively. OAO Tatneft's net income under RAR for 1H 2006 was RUR23.4 billion, and OAO Nizhnekamskshina's net income under RAR for the same period was RUR68 million. About the Company OAO Tatneft explores for, produces, refines and markets crude oil. The company operates a chain of retain gasoline filling stations and exports some of its petrochemical products to former Soviet Union countries and Europe. * * * As reported in TCR-Europe on Aug. 28, Standard & Poor's Ratings Services withdrew its 'B-' long-term corporate credit rating on Russia-based oil company Tatneft OAO. The rating had been placed on CreditWatch with negative implications on April 14, due to a continuing lack of consistent information on the company's financial position. UKR-AGRO-KHIM-PROM-HOLDING: Court Hearing Slated for Oct. 10 ------------------------------------------------------------ The Arbitration Court of Moscow will convene on Oct. 10 to hear the bankruptcy supervision procedure on LLC Ukr-Agro-Khim-Prom- Holding. The case is docketed under Case No. A40-33429/06-95- 650 B. The Temporary Insolvency Manager is: Y. Kalakutin Post User Box 18 111396 Moscow Region Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: LLC Ukr-Agro-Khim-Prom-Holding Glinishevskiy Per. 5/7 Moscow Region Russia VIKULOVSKIY TECHNOLOGY: Court Hearing Slated for September 14 ------------------------------------------------------------- The Arbitration Court of Tyumen Region will convene on Sept. 14 to hear bankruptcy supervision procedure on CJSC Vikulovskiy Technology Centre. The case is docketed under Case No. A-70- 4499/3-2006. The Temporary Insolvency Manager is: V. Kravchenko Apartment 56 50 Let Oktyabrya Str. 82 Tyumen Region Russia The Arbitration Court of Tyumen Region is located at: Khokhryakova Str. 77 627000 Tyumen Region Russia The Debtor can be reached at: CJSC Vikulovskiy Technology Centre Svobody Str. 181 Vikulovo Tyumen Region Russia WOOD MASTER: Arkhangelsk Court Starts Bankruptcy Supervision ------------------------------------------------------------ The Arbitration Court of Arkhangelsk Region has commenced bankruptcy supervision procedure on LLC Wood Master. The case is docketed under Case No. AO5-6106/2006-21. The Temporary Insolvency Manager is: A. Ugushev Lomonosova Pr. 119 163061 Arkhangelsk Region Russia Tel/Fax: 8(181-2) 65-35-59 The Debtor can be reached at: LLC Wood Master Office 1402 Lenin Square 4 163000 Arkhangelsk Region Russia WOODWORKING COMBINE 2: V. Adamov to Manage Insolvency Assets ------------------------------------------------------------ The Arbitration Court of Moscow appointed Mr. V. Adamov as Insolvency Manager for OJSC Woodworking Combine 2. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-25162/03-74-23/B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: OJSC Woodworking Combine 2 Staropetrovskiy Proezd 10 125130 Moscow Region Russia ZNAMENSKIY FLAX: Court Names E. Esaulova as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Kirov Region appointed Ms. E. Esaulova as Insolvency Manager for Municipal Unitary Enterprise Znamenskiy Flax Factory. She can be reached at: E. Esaulova Orlovskaya Str. 20a 610002 Kirov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A28-86/06-90/24. The Arbitration Court of Kirov Region is located at: K-Libknekhta Str. 102 610017 Kirov Region Russia The Debtor can be reached at: Municipal Unitary Enterprise Znamenskiy Flax Factory Orlovskaya Str. 20a 610002 Kirov Region Russia * Fitch Assigns Nizhniy Novgorod B+ LT Foreign Currency Rating -------------------------------------------------------------- Fitch Ratings assigned the Russian Nizhniy Novgorod Region Long- term foreign and local currency B+ ratings and a Short-term B rating. A National Long-term A rating is also assigned. All the rating Outlooks are Stable. The ratings reflect the strong local economy, which provides for tax revenue increase. This allows the region to strengthen both its budgetary performance and debt structure. However, the ratings factor in Nizhniy Novgorod's high degree of budget rigidity with transfers dominating its operating spending. They also take into account the region's high debt burden. The Stable Outlook reflects Fitch's expectations that the economic expansion will drive revenue growth, further improving budgetary performance and debt burden reduction. The region possesses a diversified local economy, which is almost equally divided between the service and production sectors. The industrial sector includes the country's leading car manufacturers. The economic growth has stimulated tax revenues over the last two years as public and private sector salaries have grown 25% on average in 2004-2005 while taxable profit increased 49% in 2004 and 56% in 2005. The region's budgetary performance has been improving over the last three years with the operating and current margins rising to 8.6% and 6.1% respectively in 2005 from 4% and 2.3% in 2003. The improvement of the budgetary performance is attributed to faster operating revenue growth over operating expenditure growth during 2004-2005. The region has repaid all formerly defaulted eurobonds and total debt as a proportion of current revenue significantly decreased to 29% in 2005 from 44.6% in 2001. At the same time the region's debt servicing remains high at an average of 31% of current revenue over the last three years while the average maturity of debt is low at two to three years. The region is exposed to significant refinancing risk with short-term bank loans representing 38% of the total direct debt in 2006 while significant debt amortizations are scheduled in 2007 and 2008. The region's budget is characterized by a high degree of rigidity since transfers amounted to 74.1% of total spending in 2005, while staff expenditure contributed another 15.1% of operating expenditure. The region's capital expenditure has been unstable during 2001-2005. Despite a recent increase to 9.4% in 2005 from 6% in 2004, total spending is still insufficient to compensate for the high level of infrastructure deterioration, which reportedly accounted for 60%-70% of infrastructural companies' fixed assets. Nizhniy Novgorod region is located in the central part of the Russian Federation. The region contributed 1.82% of the RF's gross domestic product in 2005 and accounted for 2.4% of country's population. ========= S P A I N ========= IM GRUPO: Moody's Rates EUR32.4-Mln Series E Notes at (P)C ---------------------------------------------------------- Moody's Investors Service assigned these provisional ratings to the debt to be issued by IM Grupo Banco Popular Empresas 1, FTA: -- EUR553.5 million Series A1 notes: (P)Aaa; -- EUR1.1 billion Series A2 notes: (P)Aaa; -- EUR28.8 million Series B notes: (P)Aa3; -- EUR27 million Series C notes: (P)A3; -- EUR54.9 million Series D notes: (P)Baa3; and -- EUR32.4 million Series E notes: (P)C; IM Grupo Banco Popular Empresas 1, FTA is a securitization of loans to small- and medium-sized enterprises (SMEs) carried out by six Spanish banks owned by Banco Popular group (Banco de Andalucia, Banco de Credito Balear, Banco de Castilla, Banco de Vasconia, Banco de Galicia and Banco Popular Espanol). Although the pool of loans meets the requirements of the Spanish government's FTPYME guarantee program for SME loan-backed deals, this transaction is not part of this program. Strong features within this deal include, among others: -- extensive historical default and recovery information provided by the originators; -- a 12-month artificial write-off mechanism; -- the fact that around 78% of the pool is secured by a first-lien mortgage guarantee; and -- the good performance of Banco Popular's previous SME deal. Weaker features include: -- partial hedging of the interest rate risk; -- partial funding of the cash reserve upfront; -- a high servicing fee compared with other Spanish securitization transactions; -- the presence of non-amortizing loans in the pool; -- the pro-rata amortization of the notes; and -- the negative impact of the interest deferral trigger on the subordinated series. These increased risks were reflected in the credit enhancement calculation. The provisional pool of underlying assets comprised, as of August 2006, a portfolio of 11,802 loans granted to 10,309 borrowers, all of which are Spanish SMEs. The loans have been originated between 1993 and May 2006, with a weighted average seasoning of 2.0 years and a weighted average remaining life of 9.0 years. The weighted average interest rate is 4.18%, with all the loans linked to floating reference rates, and the weighted average margin over the reference rate is 1.04%. 78% of the outstanding of the portfolio is secured by a first-lien mortgage guarantee over different types of properties (19% being residential properties), with a weighted average loan to value equal to 54%. The pool is well diversified in terms of geography, with a slight concentration in Andalusia (22%) given the location of the originators, and is around 41% concentrated in the buildings and real estate sector according to Moody's industry classification. At closing, there will be no loans more than 30 days in arrears. Moody's based the provisional ratings primarily on: -- an evaluation of the underlying portfolio of loans; -- historical performance information; -- the swap agreement partially hedging the interest rate risk; -- the credit enhancement provided through the GIC account, the pool spread, the reserve fund and the subordination of the notes; and -- the legal and structural integrity of the transaction. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only reflect Moody's preliminary credit opinions regarding the transaction. Upon a conclusive review of the final pool of assets and the final documentation, Moody's will endeavor to assign a definitive rating to the notes. A definitive rating, if any, may differ from a provisional rating. The provisional ratings address the expected loss posed to investors by the legal final maturity (21 March 2033). In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par with respect to the Series A1, A2, B, C and D notes, and for ultimate payment of interest and principal at par with respect to the Series E notes, on or before the final legal maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. ============= U K R A I N E ============= AGROLEASING: Kyiv Court Names S. Kitsul as Insolvency Manager ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. S. Kitsul as Liquidator/Insolvency Manager for LLC Production Company Agroleasing (code EDRPOU 31627498). The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 9. The case is docketed under Case No. 44/450-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Production Company Agroleasing Oboroni Str. 10/107 Geroiv 03127 Kyiv Region Ukraine AVTOMOBILIST: Kyiv Court Starts Sanation Procedure -------------------------------------------------- The Economic Court of Kyiv Region commenced sanation procedure on OJSC Avtomobilist on June 26. The case is docketed under Case No. 176/11 b-06. The Temporary Insolvency Manager is: Igor Golubij Teliga Str. 25-B/24 Kyiv Region Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: OJSC Avtomobilist Proskuri Str. 86 Ivankiv Kyiv Region Ukraine AVTOSPECVODSERVICE: Court Names Mr. S. Nadeyev as Liquidator ------------------------------------------------------------ The Economic Court of Herson Region appointed Mr. S. Nadeyev as Liquidator/Insolvency Manager for OJSC Avtospecvodservice (code EDRPOU 05460752). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 19. The case is docketed under Case No. 5/118-5-06. The Economic Court of Herson Region is located at: Gorkij Str. 18 73000 Herson Region Ukraine The Debtor can be reached at: OJSC Avtospecvodservice Berislavske Shose 42 73008 Herson Region Ukraine BIOSTIMULYATOR: Odessa Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Economic Court of Odessa Region commenced bankruptcy supervision procedure on Odessa Chemical-Pharmaceutical Enterprise Biostimulyator (code EDRPOU 32093887) on June 23. The case is docketed under Case No. 2/171-06-6019. The Temporary Insolvency Manager is: Igor Letnitskij Dobrovolskij Avenue 151/80 65111 Odessa Region Ukraine The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region Ukraine The Debtor can be reached at: Odessa Chemical-Pharmaceutical Enterprise Biostimulyator Hadzhibejska Doroga 2 Odessa Region Ukraine BUILDING MATERIALS: Court Names Mr. U. Dunayevskij Liquidator ------------------------------------------------------------- The Economic Court of Zhitomir Region appointed Mr. U. Dunayevskij as Liquidator/Insolvency Manager for LLC Building Materials Plant (code EDRPOU 31603615). The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 27. The case is docketed under Case No. 3/124. The Economic Court of Zhitomir Region is located at: Berdichivska Str. 25 Mala 10014 Zhitomir Region Ukraine The Debtor can be reached at: LLC building materials plant Perekopu Str. 32 Geroiv Novograd-Volinskij 11700 Zhitomir Region Ukraine ELECTRONIC COMPONENTS: District Tax Agency to Liquidate Assets -------------------------------------------------------------- The Economic Court of Kyiv Region appointed State Tax Inspection of Solomyanskij District of Kyiv Region as Liquidator for LLC Electronic Components (code EDRPOU 31169038). The Liquidator can be reached at: State Tax Inspection of Solomyanskij District of Kyiv Region Smilyanska Str. 6 03151 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. 23/275-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Electronic Components Narodnogo opolchennya Str. 1 03151 Kyiv Region Ukraine HUDOZHNYE TKATSTVO: Oleksandr Malyovanij to Liquidate Assets ------------------------------------------------------------ The Economic Court of Sumi Region appointed Oleksandr Malyovanij as Liquidator/Insolvency Manager for OJSC Krolevets Factory Hudozhnye Tkatstvo (code EDRPOU 02968487). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 13. The case is docketed under Case No. 12/20-04. The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: OJSC Krolevets Factory Hudozhnye Tkatstvo Petrovskij Str. 38 Krolevets 41300 Sumi Region Ukraine MAYAK: Court Names Sergij Nazarenko as Insolvency Manager --------------------------------------------------------- The Economic Court of Cherkassy Region appointed Sergij Nazarenko as Liquidator/Insolvency Manager for Agricultural LLC Mayak (code EDRPOU 05423202). He can be reached at: Sergij Nazarenko Dobrovolskij Str. 3/1-25 Cherkassy Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 27. The case is docketed under Case No. 14/729. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: Agricultural LLC Mayak Lenin Str. 1 Kocherzhintsi Uman District 20300 Cherkassy Region Ukraine PIVDENNYI BANK: Fitch Lifts Junk Issuer Default Rating to B- ------------------------------------------------------------ Fitch Ratings upgraded Ukraine-based Pivdennyi Bank's Issuer Default Rating to B- from CCC+ and Short-term rating to B from C. The Outlook for the IDR remains Stable. Pivdennyi's other ratings are affirmed at Support 5 and Individual D/E. The rating upgrade reflects Pivdennyi's strong, to date, credit performance and the continued development of the bank's regional franchise. n addition, the ratings are supported by conservative provisioning, satisfactory profitability and limited trading risks. The bank's capital position has also improved although its free capital is limited. The ratings also take into account potentially vulnerable liquidity, increased exposure to interest rate risk and significant concentration levels on both sides of the balance sheet. Upward pressure on Pivdennyi's ratings could result from a stronger liquidity position, a reduction in concentration levels, further successful franchise development and an improvement in the operating environment. Downward pressure on the ratings could result from a deterioration of capitalization or worsening asset quality. Pivdennyi was established in Odessa in 1993 and was purchased by the current shareholders in 1994. Since then, the bank has diversified its franchise and at end-Q206 was the 17th-largest bank in Ukraine. Control over the bank is ultimately in the hands of two individuals who also own industrial, agricultural, real estate and trading assets. At end-Q206, the bank had 15 branches and 73 outlets, with a franchise concentrated mainly in the Odessa region and neighboring areas of southern Ukraine. RENDER: Court Names Romanov Kostyantin as Insolvency Manager ------------------------------------------------------------ The Economic Court of Dnipropetrovsk Region appointed Romanov Kostyantin as Liquidator/Insolvency Manager for LLC Render (code EDRPOU 30261239). The Court commenced bankruptcy proceedings against the company after finding it insolvent on June 27. The case is docketed under Case No. B 40/177/05. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Render Topolya-1, 15/208 49040 Dnipropetrovsk Region Ukraine STIMUL: Court Names Denis Matvijchuk as Insolvency Manager ---------------------------------------------------------- The Economic Court of Donetsk Region appointed Denis Matvijchuk as Liquidator/Insolvency Manager for LLC Stimul (code EDRPOU 30454885). He can be reached at: Denis Matvijchuk a/b 189 Mariupol 87557 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. 5/70 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Stimul Skladska Str. 3 83059 Donetsk Region Ukraine STOA: Ivano-Frankivsk Court Starts Bankruptcy Supervision --------------------------------------------------------- The Economic Court of Ivano-Frankivsk Region commenced bankruptcy supervision procedure on CJSC Stoa (code EDRPOU 00435459) on April 26. The case is docketed under Case No. B-14/136. The Temporary Insolvency Manager is: Oleg Savchuk Vasil Stus Str. 9/6 Ivano-Frankivsk Region Ukraine The Economic Court of Ivano-Frankivsk Region is located at: Shevchenko Str. 16a 76000 Ivano-Frankivsk Region Ukraine The Debtor can be reached at: CJSC Stoa Dekabristiv Str. 45-A Ivano-Frankivsk Region Ukraine ZOLOTONOSHA REINFORCED: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Economic Court of Cherkassy Region commenced bankruptcy supervision procedure on OJSC Zolotonosha Reinforced Concrete Plant on June 22. The case is docketed under Case No. 01/3328. The Temporary Insolvency Manager is: Oleg Bilera Volkov Str. 59/35 Cherkassy Region Ukraine The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: OJSC Zolotonosha Reinforced Concrete Plant Zolotonosha Cherkassy Region Ukraine * Political Stability Spurs S&P to Affirm Ukraine's Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' long-term foreign, 'BB' long-term local, and 'B' short-term sovereign credit ratings on the Republic of Ukraine, as the economy continues to outperform expectations and the political environment has stabilized. The outlook is stable. "Despite a drawn-out political crisis since the March 2006 elections and the doubling of natural gas import prices earlier in the year, the Ukrainian economy has outperformed expectations," said Standard & Poor's credit analyst Moritz Kraemer. "Growth in 2006 is now forecast to be 5.6%, slowing only moderately in 2007. Foreign direct investment and export performance have also surpassed earlier estimates. The belated emergence of a majority government should improve investment sentiment and reduce immediate policy uncertainty." Nevertheless, Ukraine's comparatively low level of prosperity constrains the ratings. The rancorous political environment and the country's polarized society continue to reduce Ukraine's creditworthiness as they diminish policy consistency and predictability. The prospects for rigorous and coherent implementation of policy reform remain comparatively poor over the medium term, while risks of sudden policy reversals loom large. Standard & Poor's views the improved political environment on the one hand as being offset by structural vulnerabilities. Specifically, the positive economic developments in 2006 to date may be undermined by further increases in the price of natural gas supplies from Russia. Although the new government is bringing much needed political stability to Ukraine, it is unlikely to pursue radical structural economic reforms. Further progress with institutional and economic modernization would be required to ensure that the economy would be able to continue to grow at about 5% per year, especially as the Ukrainian labor force will continue to shrink. "Tangible progress on the reform front, the maintenance of prudent fiscal policies, and ensuring a gradual rise in gas import prices could provide positive momentum for Ukraine's ratings," said Mr. Kraemer. "Conversely, the outlook would be revised to negative if the government were to adopt policies that lead to significant fiscal slippage and/or increase the economy's external vulnerability. Likewise, a renewed eruption of a political crisis or worsening external conditions would exert downward pressure on the rating." =========================== U N I T E D K I N G D O M =========================== ABBEY GREEN: Appoints Chantrey Vellacott as Administrators ---------------------------------------------------------- Kenneth W. Touhey and David J. Oprey of Chantrey Vellacott were appointed joint administrators of Abbey Green Printers Limited (Company Number 05391048) on Aug. 8. Headquartered in Hove, East Sussex, Chantrey Vellacott DFK -- http://www.cvdfk.com/-- is one of the oldest firms of chartered accountants in the United Kingdom. It provides accounting, taxation and related advisory services. Headquartered in Woking, United Kingdom, Abbey Green Printers Limited is engaged in paper printing and publishing. ADCO PROTECTIVE: Brings In Vantis to Administer Assets ------------------------------------------------------ Geoffrey Paul Rowley and Nicholas Hugh O'Reilly of Vantis PLC were appointed joint administrators of Adco Protective Technologies Limited (Company Number 00382410) on Aug. 11. Headquartered in West Sussex, Vantis PLC -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. Headquartered in Bristol, United Kingdom, Adco Protective Technologies Limited wholesales and manufactures protective wear. A.M.L. KITCHEN: Appoints Liquidator from Begbies Traynor -------------------------------------------------------- David Hill of Begbies Traynor was appointed Liquidator of A.M.L. Kitchen Solutions Limited on July 14 for the purposes of the company's . The company can be reached at: A.M.L. Kitchen Solutions Limited 121 Stow Hill Newport Gwent NP204ED United Kingdom Tel: 01633 262 667 ANDY SMITH: Taps Bruce G. T. Rees to Liquidate Assets ----------------------------------------------------- Bruce G. T. Rees of Bruce G.T. Rees & Co. was appointed Liquidator of Andy Smith & Sons Limited on July 14 for the purposes of the company's . The company can be reached at: Andy Smith & Sons Limited 7 Aber Court Ferryboat Close West Glamorgan SA6 8PR United Kingdom Tel: 01639 630 114 BANJO DESIGN: Appoints Louise Donna Baxter as Liquidator -------------------------------------------------------- Louise Donna Baxter of Begbies Traynor was appointed Liquidator of Banjo (Design & Print) Limited on July 11 for the purposes of the company's . The company can be reached at: Banjo (Design & Print) Limited Cannon Wharf Business Centre 35 Evelyn Street London SE8 5RT United Kingdom Tel: 020 7231 7125 BBRC LIMITED: Taps Administrator from Horwath Clark --------------------------------------------------- Mark N. Ranson of Horwath Clark Whitehill (Yorkshire) LLP was named administrator of BBRC Limited (Company Number 03794758) on Aug. 9. Horwath Clark Whitehill -- http://www.horwathcw.com/-- is a leading national provider of accountancy and business advice. Its services include corporate finance, risk management, accounts audits, tax advice, outsourcing, pension scheme audit, forensic accounting and financial planning. Headquartered in London, United Kingdom, BBRC Limited is engaged in radio marketing. BIOS EUROPE: Appoints Joint Administrators from P&A --------------------------------------------------- Allan Cooper and Christopher Michael White of The P&A Partnership were appointed joint administrators of Bios Europe Limited (Company Number 03864097) on Aug. 8. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- is a member firm of the Insolvency Practitioners Association and the Association of Business Recovery Professionals (R3) and act for all clearing banks and a growing number of factors and asset lenders. Headquartered in Lancashire, United Kingdom, Bios Europe Limited supplies pharmaceutical products. BITECVIEW LIMITED: Creditors Confirm Liquidator's Appointment ------------------------------------------------------------- Christopher Ratten of Tenon Recovery was appointed Liquidator of Bitechview Limited on June 19 for the purposes of the company's voluntary winding-up procedure. The appointment of Ratten was confirmed a meeting of creditors held on the same day. The company can be reached at: Bitechview Limited Chatham Mill Chatham Street Wigan Lancashire WN1 3DB United Kingdom Tel: 01942 492 137 BODYCARE INTERNATIONAL: Hires Joint Administrators from Kroll ------------------------------------------------------------- Peter Charles Holder and Stuart Charles Edward Mackellar of Kroll Limited were appointed joint administrators of Bodycare International Limited (Company Number 03525183) on Aug. 15. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Headquartered in Darlington, United Kingdom, Bodycare International Limited is engaged in provision of tanning services and sale of related products. BULSAR ENGINEERING: Names Robert Gibbons Liquidator --------------------------------------------------- Robert Gibbons of Arrans was appointed Liquidator of Bulsar Engineering Limited on July 12 for the purposes of the company's voluntary wind-up. The company can be reached at: Bulsar Engineering Limited 1 Endemere Road Coventry West Midlands CV6 5PY United Kingdom Tel: 024 7663 8912 CAPITAL PRINT: Appoints Administrators from Chantrey Vellacott -------------------------------------------------------------- Kenneth W. Touhey and David J. Oprey of Chantrey Vellacott were appointed joint administrators of Capital Print Finishing Limited (Company Number 05176950) on Aug. 8. Headquartered in Hove, East Sussex, Chantrey Vellacott DFK -- http://www.cvdfk.com/-- is one of the oldest firms of chartered accountants in the United Kingdom. It provides accounting, taxation and related advisory services. Headquartered in London, Capital Print Finishing is engaged in paper printing and publishing. CORUS GROUP: Posts GBP82-Mln Net Profit for Second Quarter 2006 --------------------------------------------------------------- Corus Group PLC released its unaudited second-quarter results for the year ended July 1, 2006. The group posted GBP82 million net profit on GBP2.41 billion group turnover for the second quarter of 2006 compared with GBP171 million net profit on GBP2.49 billion group turn over for the same period in 2005. The group's operating profit for the quarter ended July 1, 2006, is GBP129 million compared with GBP267 million operating profit for second quarter in 2005. At July 1, 2006, the group's unaudited balance sheet showed GBP8.26 billion in total assets, GBP4.58 billion in total liabilities and GBP3.68 billion in shareholders' equity. "In the second quarter of 2006, Corus' financial performance has benefited from a combination of the improvement in market conditions and our Restoring Success program. The market outlook for the second half of the year is encouraging, although the blast furnace reline at Ijmuiden and seasonal production shutdowns will mitigate the benefits to our income statements over this period," Chief Executive Philippe Varin commented. "The completion of the sale of our downstream aluminum operations is an important milestone in allowing the Group to focus on carbon steel," Mr. Varin concluded. A full-text copy of Corus Group's second quarter results is available at no charge at http://ResearchArchives.com/t/s?10c7. About Corus Group Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. The group suffered six years ago from the crisis in British manufacturing, which prompted it to shake up management, close plants, cut jobs, and sell assets to lower debt. Its debt was thought to stand at GBP1.6 billion in 2002. After posting a net loss of GBP458 million in 2003, it embarked on a restructuring program, signed a new EUR1.2 billion banking facility, and issued GBP307 million worth of shares. It returned to operating profit in the first quarter of 2004. The recent recovery of steel prices and the strength of the euro are expected to help it achieve relatively strong earnings. * * * As reported by TCR-Europe on June 21, Standard & Poor's removed Corus Group PLC's CreditWatch and raised its long-term corporate credit rating to 'BB' from 'BB-', reflecting the group's improved financial risk profile. S&P said the Outlook is stable. As reported by Troubled Company Reporter-Europe on March 23, Fitch changed Corus Group PLC's Outlook to Positive from Stable and affirmed the Issuer Default Rating at BB- following the company's announcement of its 2005 results and plan to dispose its aluminium business for EUR826 million. Corus' affirmed debt instruments include: a) Corus Group PLC EUR800 mln 7.5% senior notes B+; b) Corus Group PLC EUR307 mln 3.0% convertible bonds B+; c) Corus Finance PLC GBP200 mln 6.75% guaranteed bonds B+; and d) Corus Finance PLC EUR20 mln 5.375% guaranteed bonds B+. As reported in the TCR-Europe on May 11, Moody's Investors Service upgraded Corus Group plc's corporate family rating to Ba2, upgraded its senior unsecured and supported unsecured obligations to B1 and raised senior secured bank facility to Ba1. CTL PROJECTS: Brings In Joint Liquidators from Begbies Traynor -------------------------------------------------------------- Ian Michael Rose and Robert Michael Young of Begbies Traynor were appointed Joint Liquidators of CTL Projects Limited on June 15 for the purposes of the company's voluntary wind-up. The company can be reached at: CTL Projects Limited 9 Portland Road Hucknall Nottingham NG157SL United Kingdom Tel: 0115 964 0111 DELLAMAX TRADING: Stephen Franklin Leads Liquidation Procedure -------------------------------------------------------------- Stephen Franklin of Panos Eliades, Franklin & Co. was appointed Liquidator of Dellamax Trading Limited on June 20 for the purposes of the company's voluntary wind-up. The appointment of Franklin was confirmed at a meeting of creditors held on the same day. The company can be reached at: Dellamax Trading Limited The Broadway London NW7 3TG United Kingdom Tel: 020 8959 0271 DUNELM CONTRACTORS: Creditors' Meeting Slated for September 21 -------------------------------------------------------------- Creditors of Dunelm Contractors (Building Maintenance) Limited (Company Number 01328039) will meet at 10:00 a.m. on Sept. 21 at: Grant Thornton U.K. LLP Enterprise House 115 Edmund Street Birmingham West Midlands B3 2HJ 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 Sept. 20 at: M O'Connor Joint Administrative Receiver Grant Thornton U.K. LLP Enterprise House 115 Edmund Street Birmingham B3 2HJ United Kingdom Tel: 0121 212 4000 Fax: 0121 212 4014 Headquartered in London, Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- is the U.K. 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. EYE QUALITY: Calls In Liquidator from Ward & Co. ------------------------------------------------ Barry John Ward of Ward & Co. was appointed Liquidator of Eye Quality Limited on June 22 for the purposes of the company's wind-up. The appointment of Ward was confirmed at a meeting of creditors held on the same day. The company can be reached at: Eye Quality Limited Unit 22 Lye Business Centre Enterprise Drive Stourbridge West Midlands DY9 8QH United Kingdom Tel: 01384 895 985 FLOORCARE SERVICES: Appoints T. Papanicola to Administer Assets --------------------------------------------------------------- T. Papanicola of Bond Partners LLP was appointed administrator of Floorcare Services Limited (Company Number 04757599) on Aug. 14. The administrator can be reached at: Bond Partners LLP The Grange 100 High Street London N14 6TG United Kingdom Tel: 020 8444 2000 Fax: 020 8444 3400 Headquartered in Lancashire, United Kingdom, Floorcare Services Limited retails household furniture. FRANK P KIRK: Claims Filing Period Ends Sept. 29 ------------------------------------------------ Creditors of Frank P Kirk Limited have until Sept. 29 to send their names and addresses and particulars of their debts or claims and the names and addresses of their Solicitors (if any), to appointed Joint Liquidators W. John Kelly and Timothy S. Cockcroft at: Begbies Traynor Newater House 11 Newhall Street Birmingham B3 3NY United Kingdom The company can be reached at: Frank P Kirk Limited 122 Queens Road East Beeston Nottingham Nottinghamshire NG9 2FD United Kingdom Tel: 0115 967 7330 FIELD TRANSPORT: Hires M. Arkin to Liquidate Assets --------------------------------------------------- M. Arkin of Arkin & Co. was appointed Liquidator of Field Transport Limited on Feb. 27 for the purposes of the company's voluntary winding-up proceeding. The appointment of Arkin was confirmed at a meeting of creditors held on March 10. The company can be reached at: Field Transport Limited Unit 10 Elizabeth Trading Estate Juno Way London SE145RW United Kingdom Tel: 020 7404 7755 Web: http://www.fieldtransport.co.uk/ GARTMORE INVESTMENT: Moody's Assigns Ba2 Corp. Family Rating ------------------------------------------------------------ Moody's Investors Service assigned a Ba2 corporate family rating (stable outlook) to Gartmore Investment Management plc. Concurrently, Moody's also assigned a Ba2 rating (stable outlook) to the proposed GBP300 million senior facility, due 2013, to be issued by Oxford Acquisition III Limited and guaranteed on a senior basis by Gartmore. While the debt instrument is issued by OAL, service of the debt is wholly reliant on the performance of the guarantor and its subsidiaries. Consequently the rating reflects Moody's view of the strength of Gartmore's franchise, particularly in the U.K. retail and alternative investments market. Other positive influences include the ownership of a substantial part of the firm by management and increased emphasis on equity based compensation, both establishing a more immediate link between the revenue and the cost base as well as providing a clear incentive to perform. Nevertheless, Gartmore maintains a substantially leveraged position and is heavily reliant on future earnings generation to service this debt. The relatively high concentration of assets under management in European equities and the fee based charging structure makes these future earnings flows sensitive to both a downturn in equity markets and damage to Gartmore's franchise in this asset class. In Moody's view this is a particularly critical rating factor in the early years of the loan when there are a number of liabilities falling due relating to employee retention payments which may reduce cash flows after debt service, albeit this risk is substantially offset by the Vendor Loan Facility. In respect of the loan arrangement, Moody's views positively the strong covenants under the facility that, inter alia, prevent the company making distributions to shareholders until such time as leverage is materially reduced. Additionally, a Vendor Loan Facility is in place, which ensures that retention payments junior to debt service can be made in circumstances where cash flow after debt service is low, providing additional resources to help Gartmore maintain a cash buffer on balance sheet. Gartmore Investment Management plc is a U.K.-based asset manager with GBP22.8 billion assets under management at the end of May 2006. Ratings assigned with a stable outlook: -- Gartmore Investment Management plc: Ba2; and -- Oxford Acquisition III Limited: Ba2. GARTMORE INVESTMENT: S&P Assigns Low-B Ratings on High Leverage --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+/B' long- and short-term counterparty credit ratings to Gartmore Investment Management PLC. At the same time, Standard & Poor's assigned its 'BB+' rating to Gartmore's GBP310 million senior credit facilities, raised by Oxford Acquisitions III Ltd., expected to be issued as part of the transaction with Hellman & Friedman. The outlook is stable. "The ratings on Gartmore reflect its high leverage relative to other rated asset managers. In addition, Gartmore's market position is relatively modest with a bias toward equity investments and a focus on U.K. clients, while the overall net sales trend is mixed," said Standard & Poor's credit analyst Nigel Greenwood. Gartmore has become a leaner organization in recent years, and has good potential for growth given its balanced business profile and more targeted focus as a specialist manager. In particular, Gartmore has developed a useful position in the hedge fund market. The rating on the GBP310 million senior credit facilities reflects the ratings on Gartmore itself. Although the debt is raised by a proposed holding company, Oxford Acquisitions III Ltd., mechanisms have been put in place to ensure that cash will flow from the operating companies to service the loan. Gartmore is being acquired by private equity firm H&F, together with Gartmore management. Total debt is thus expected by Gartmore to represent more than 3x 2006 EBITDA, and EBITDA to interest expense to be a very low 4x in 2007, and only forecast to rise toward 7x by 2010. The stable outlook reflects Standard & Poor's expectation that Gartmore will make steady progress to improve its interest coverage. "Standard & Poor's considers that Gartmore is now better positioned to convert its niche specialist market position and leaner cost base into more meaningful net sales and better financial performance," added Mr. Greenwood. This will be crucial given the level of the debt burden. The expected retention of key staff that the transaction should facilitate will be important in this respect. Failure to grow EBITDA or reduce the debt burden could lead to a lower rating. Scope for a ratings upgrade would primarily be driven by a sustained improvement in net sales across all business lines, a broadening of AUM beyond the U.K., and the maintenance of healthy management fees coupled with continued strong cost control or by a meaningful reduction in debt. GROSVENOR INSULATION: Taps Liquidator from Tenon Recovery --------------------------------------------------------- Ian William Kings of Tenon Recovery was appointed Liquidator of Grosvenor Insulation Services Limited on Aug. 10 for the purposes of the company's voluntary wind-up. The appointment of Kings was confirmed at a meeting of creditors held on the same day. The company can be reached at: Grosvenor Insulation Services Limited 44 Upper Belgrave Road Bristol Avon BS8 2XN United Kingdom Tel: 01932 831 040 HALLMARK CERAMIC: Appoints Martin Williamson to Liquidate Assets ---------------------------------------------------------------- Martin Williamson of DS Insolvency Services Ltd. was appointed Liquidator of Hallmark Ceramic Decals Limited on July 14 for the purposes of the company's voluntary winding-up proceeding. The appointment of Williamson was confirmed at a meeting of creditors held on the same day. The company can be reached at: Hallmark Ceramic Decals Limited Unit 5 Crabtree Close Fenton Industrial Estate Stoke-On-Trent ST4 2SW United Kingdom Tel: 01782 746 029 HOMESTYLE GROUP: Reports GBP62 Mln Positive Equity at July 1 ---------------------------------------------------------------- Homestyle Group Plc disclosed unaudited preliminary results for the 61 weeks to July 1, 2006. For the 61 weeks to July 1, 2006, Homestyle Group reported net loss of GBP25 million compared with net loss of GBP21.8 million for the 52 weeks to April 30, 2005. At July 1, 2006, the company's balance sheet showed a stockholders' equity of GBP62.5 million, compared with a stockholders' deficit of GBP14 million at April 30, 2005. The balance sheet has been strengthened with total assets of GBP220.3 million. Total liabilities for the period amounted to GBP157.8 million. Commenting on the period, Donald Macpherson, Chairman, said: "Following the re-financing of the Group in June 2005, the last year has been a period of stabilization and reinvigoration for our businesses. The result of this work is an improving profitability trend and trading operations that are much better positioned to deliver profitable long-term growth," Donald Macpherson, Chairman, said. Highlights: -- overall performance reflects legacy of previously announced historic problems -- much improved performance as year progressed with recovery initiatives being rolled out -- Harveys sales order growth of 15.5% in 52 weeks to July 1, 2006 -- progress on Harveys' legacy supply chain issues, but one- off distribution costs incurred in supporting sales growth -- Beds Division new management team appointed and business re-energized -- relationship with Steinhoff companies working well leading to improved product innovation and commercial terms Commenting on the outlook for the Company, Donald Macpherson, Chairman, said: "Against the backdrop of difficult trading conditions, we have taken a number of decisive actions to improve performance. As a result, our businesses are in more robust health than at any point for some years and are facing the future with fresh enthusiasm. "We have a strong balance sheet, rejuvenated trading businesses, a dedicated management team and an exciting commercial partnership with Steinhoff; the ingredients are now in place for long term success." Headquartered in the United Kingdom, Homestyle Group PLC specializes in furniture retailing through its Furniture Division (170 Harveys stores) and Beds Division (392 outlets across Bensons, Sleepmasters and Bed Shed brands). INDUSTRIAL PYROMETER: Taps Gerald Irwin to Administer Assets ------------------------------------------------------------ Gerald Irwin of Irwin & Company was appointed administrator of The Industrial Pyrometer Company Limited (Company Number 00432156) on Aug. 11. The administrator can be reached at: Irwin & Company Station House Midland Drive Sutton Coldfield Birmingham West Midlands B72 1TU United Kingdom Tel: 08700 111812 Fax: 08700 111813 E-mail: mail@irwinuk.net Headquartered in Birmingham, United Kingdom, The Industrial Pyrometer Company Limited manufactures of equipment for temperature measurement and control. INSTRUCTUS LIMITED: Hires David Hughes to Liquidate Assets ---------------------------------------------------------- David Hughes was appointed Liquidator of Instructus Limited on June 21 for the purposes of the company's voluntary winding-up proceeding. The company can be reached at: Instructus Limited 11 Spa Road Gloucester GL1 1UY United Kingdom Tel: 01452 411 333 J D AGENCIES: J. N. Bleazard Leads Liquidation Procedure -------------------------------------------------------- J. N. Bleazard of XL Business Solutions Ltd. was appointed Liquidator of J D Agencies Limited on July 17 for the purposes of the company's voluntary winding-up proceeding. The company can be reached at: J D Agencies Limited Bermuda House 64 Roseville Road Leeds West Yorkshire LS8 5DR United Kingdom Tel: 0113 245 0239 J S L INTERIORS: Names Liquidator to Wind Up Business ----------------------------------------------------- I. D. Holland of Ian Holland & Co. was appointed Liquidator of J S L Interiors Limited on Aug. 14 for the purposes of the company's voluntary wind-up. The company can be reached at: J S L Interiors Limited 5-7 Grafton Mews London W1T 5HY United Kingdom Tel: 020 7388 8682 KAT SERVICES: Names Eileen T. F. Sale Liquidator ------------------------------------------------ Eileen T. F. Sale of Sale Smith & Co. Limited was appointed Liquidator of Kat Services Limited (t/a Increase Decrease) on Aug. 8 for the purposes of the company's voluntary wind-up. The company can be reached at: Kat Services Limited 52 Cuckoo Road Birmingham West Midlands B7 5SY United Kingdom Tel: 0121 328 1797 KEYHOLDERS LIMITED: Names David Kaye as Administrator ----------------------------------------------------- David N. Kaye of Crawfords was named administrator of Keyholders (U.K.) Limited (Company Number 4411397) on Aug. 9. The administrator can be reached at: Crawfords Stanton House 41 Blackfriars Road Salford Manchester Greater Manchester M3 7DB United Kingdom Tel: 0161 828 1000 Fax: 0161 832 1829 Headquartered in Doncaster, United Kingdom, Keyholders (U.K.) Limited wholesales and retails lock and tools. L.J. SNOOKES: Brings In Tony Mitchell to Liquidate Assets --------------------------------------------------------- Tony Mitchell of Cranfield Recovery Limited was appointed Liquidator of L.J. Snookes Limited on July 13 for the purposes of the company's voluntary winding-up proceeding. The company can be reached at: L.J. Snookes Limited 7 Hainge Road Tividale Oldbury West Midlands B69 2NR United Kingdom Tel: 0121 557 1903 LAKESIDE PUBLISHING: Calls In Liquidator from Begbies Traynor ------------------------------------------------------------- Michael Francis Stevenson of Begbies Traynor was appointed Liquidator of Lakeside Publishing Services Limited on June 20 for the purposes of the company's voluntary winding-up proceeding. The company can be reached at: Lakeside Publishing Services Limited Unit 1C Tideway Industrial Estate 87 Kirtling Street London SW8 5BP United Kingdom Tel: 020 7720 6680 MAWS GALLERY: Creditors Confirm Liquidator's Appointment -------------------------------------------------------- Neil Francis Hickling of Smith & Williamson Limited was appointed Liquidator of Maws Gallery Limited on July 17 for the purposes of the company's voluntary winding-up proceeding. The appointment of Hickling was confirmed at a meeting of creditors held on the same day. The company can be reached at: Maws Gallery Limited Wharfage Ironbridge Telford Shropshire TF8 7AW United Kingdom Tel: 01952 433 663 MDM INDEX: Hires Stephen M. Rout to Liquidate Assets ---------------------------------------------------- Stephen M. Rout of Stephen M. Rout & Company was appointed Liquidator of MDM Index Limited on June 19 for the purposes of the company's voluntary winding-up proceeding. The company can be reached at: MDM Index Limited Unit 4 Lanwades Business Park Kennett Newmarket Suffolk CB8 7PN United Kingdom Tel: 01638 552 424 Web: http://www.mdmappointmentbooks.co.uk/ MIDLAND ROLLCAGE: Brings In P. Nottingham to Liquidate Assets ------------------------------------------------------------- P. Nottingham of Nottingham Watson Ltd. was appointed Liquidator of Midland Rollcage Engineers Limited on June 21 for the purposes of the company's voluntary winding-up proceeding. The company can be reached at: Midland Rollcage Engineers Limited Unit 9A Shrub Hill Industrial Estate Worcester Worcestershire WR4 9EL United Kingdom Tel: 01905 731 956 NATIONWIDE LOFT: Liquidator Sets Sept. 29 Claims Bar Date --------------------------------------------------------- Creditors of Nationwide Loft Conversions Limited, which is being voluntarily wound up, are required, on or before Sept. 29, to send in their names, addresses and the particulars of their debts and claims to appointed Liquidator M. Arkin at: Arkin & Co. Maple House High Street Potters Bar Hertfordshire EN6 5BS United Kingdom The company can be reached at: Nationwide Loft Conversions Limited 357 Katherine Road Newham London E7 8LT United Kingdom Tel: 020 8555 5055 NORTHERN FOODS: Mulls Closing of Trafford Park Bakery ----------------------------------------------------- Northern Foods plc disclosed plans to close its Trafford Park Bakery in Manchester. The company has informed its staff and an employee consultation process has now begun. The decision reflects Northern Foods' focus on improving the overall performance of the business and is being progressed at this time in preparation for the disposal of the Pastry category. The site produces a range of chilled pastry products and was acquired by Northern Foods in 1991. In 2005/06 the site had losses of over GBP3 million before interest and tax. The proposal is for a phased closure of the site, to be completed by December 2006, with the loss of 690 jobs. As a result, the company will incur a one-off charge before tax in the first half of the current financial year of approximately GBP12 million, including expected cash closure costs of GBP7 million. The expected closure cost will be partially offset by any proceeds from the future sale of the assets. The closure supports the proposed sale of the Pastry Products business and is consistent with the strategy, disclosed on May 31, to focus on businesses where Northern Foods has a competitive advantage. About the Company Headquartered in Leeds, Northern Foods PLC -- http://www.northern-foods.co.uk/-- is one of U.K.'s leading food producers with a turnover of GBP1.5 billion and over 22,000 employees based in sites across the U.K. and Ireland. Northern Foods began restructuring and refocusing its business in Autumn 2003. It has launched a comprehensive strategic review of the business, established a new management team, and simplified its business structure and factory organization. * * * As reported by TCR-Europe on June 5, Northern Foods PLC reported GBP5 million in net loss on GBP1.44 billion in revenues for the 52-weeks ended April 1, 2006, compared with GBP22.8 million in net profit on GBP1.42 billion in revenues for the same period in 2005. At April 1, 2006, Northern Foods had GBP928.2 million in total assets, GBP776.1 million in total liabilities and GBP152.1 million in shareholders' equity. PARMAR FOODS: Passes Resolution for Voluntary Liquidation --------------------------------------------------------- Parmar Foods & Wines Limited passed on June 19 a resolution for voluntary liquidation. The company could no longer continue its operations due to mounting liabilities. The company can be reached at: Parmar Foods & Wines Limited 19 Dartmouth Avenue Woking Surrey GU215PE United Kingdom Tel: 01483 727 627 PICTURE-FRAMING WAREHOUSE: Names M. C. Hepworth Liquidator ---------------------------------------------------------- M. C. Hepworth of Hepworth Joyce Associates Ltd. was appointed Liquidator of Picture-Framing Warehouse Limited on July 14 for the purposes of the company's voluntary wind-up. The company can be reached at: Picture-Framing Warehouse Limited Unit 3 The Hidings Love Lane Industrial Estate Cirencester Gloucestershire GL7 1YG United Kingdom Tel: 01285 655600 PIONEER CARE: Brings In M. C. Bowker to Liquidate Assets -------------------------------------------------------- M. C. Bowker of Unity Business Services LLP was appointed Liquidator of Pioneer Care North West Limited on July 12 for the purposes of the company's voluntary wind-up. The company can be reached at: Pioneer Care North West Limited Clarke Nicklin Grove House 227-233 London Road Hazel Grove Stockport Cheshire SK7 4HS United Kingdom Tel: 0161 480 7997 PUDELKO CORRUGATED: Names Nigel Spearing as Administrator --------------------------------------------------------- Nigel A. Spearing of Spearing Insolvency was appointed administrator of Pudelko Corrugated Cases Limited (Company Number 3351503) on Aug. 8. The administrator can be reached at: Spearing Insolvency Mulberry House John Street Stratford-Upon-Avon Warwickshire CV37 6UB United Kingdom Tel: 01789 299 299 Fax: 01789 205 898 Pudelko Corrugated Cases Limited can be reached at: Unit 20 Goldicote Business Park Banbury Road Goldicote Stratford Upon Avon Warwickshire CV37 7NB United Kingdom Tel: 01789 740 973 Fax: 01789 740 395 RAPID MOULDING: Taps Joint Liquidators from DTE Leonard Curtis -------------------------------------------------------------- J. M. Titley and S. G. Clancy of DTE Leonard Curtis were appointed Joint Liquidators of Rapid Moulding Technologies Limited on July 14 for the purposes of the company's voluntary wind-up. The company can be reached at: Rapid Moulding Technologies Limited 140 Station Road March Cambridgeshire PE158NH United Kingdom Tel: 01354 650 789 REFCO INC: Chapter 11 Trustee's Settlement Agreement Draws Fire --------------------------------------------------------------- Refco Inc., and its debtor-affiliates and several parties-in- interest ask the U.S. Bankruptcy Court for the Southern District of New York to deny the settlement agreement entered into by Marc Kirschner, the Chapter 11 trustee overseeing Refco Capital Markets, Ltd.'s estate, with various securities customers and unsecured creditors of RCM, on the main ground that it thwarts the global resolution of the Debtors' Chapter 11 cases. The objecting parties include: * Diana G. Adams, Acting United States Trustee for Region 2; * Albert Togut, Chapter 7 trustee for Refco, LLC; * Official Committee of Unsecured Creditors of Refco, Inc.; * FXCM Capital Markets, L.L.C. and FXCM Trading, L.L.C.; * JPMorgan Chase Bank, N.A.; * Bank of America, N.A., as administrative agent for Refco's prepetition secured lenders; * Wells Fargo Bank, National Association, as indenture trustee under an Indenture dated as of Aug. 5, 2004; * the Ad Hoc Refco F/X Customer Committee; * Beckenham Trading Company, Inc.; * Emerging Strategies Fund, L.P., and Debick Partners LLC; * Josefina Franco Siller; and * Bencorp Casa de Bolsa, C.A. RCM Trustee's Settlement Agreement AS reported in the Troubled Company Reporter on July 13, 2006, the Chapter 11 trustee asked the Court to approve a settlement agreement with certain securities customers and foreign exchange and metals customers of RCM. The Settlement Agreement resolves "litigation and creditor disputes at the RCM level that might otherwise have resulted in the freefall conversion of RCM's Chapter 11 case to a case under Subchapter III of Chapter 7," according to Mark W. Deveno, Esq., at Bingham McCutchen LLP, in New York. The Settlement Agreement achieves three primary goals: (a) Resolve a dispute regarding allocation of assets of the RCM estate and establish an agreed mechanism among the Settling Parties, whether as part of a global plan of reorganization for the Debtors or, if that plan is infeasible, as part of either a stand-alone plan applicable to RCM or a Chapter 7 distribution process; (b) Defer attempts to convert the RCM Chapter 11 case to a case in Chapter 7, and, if efforts to consummate the settlement in the RCM Chapter 11 case fail, cause the parties to convert to Chapter 7 on a more-efficient, significantly pre-planned basis; and (c) Implement a request for a continued stay of costly and time-consuming estate property litigation and to dismiss litigation in the event that the settlement becomes fully effective. Objections J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, asserts that the RCM Settlement and the proposed treatment of Rogers Raw Materials Fund, L.P., and Rogers International Raw Materials Fund, L.P., unfairly penalize the Refco, Inc. parties and other non-securities customer creditors of RCM. He adds that the RCM Settlement unfairly arrogates to RCM's "Estate Property" whose ownership is in dispute. Mr. Milmoe contends that the RCM Settlement is a sub rosa plan whose plan-related provisions do not comply with Section 1129 of the Bankruptcy Code and, hence, cannot be approved. Furthermore, Mr. Milmoe argues that the RCM Settlement, in effect, confers on certain RCM creditors the benefits of having the case converted to a case under subchapter III of Chapter 7 without an order ever being entered formally converting the RCM case. The result is to deprive litigants of the right to appellate review of an order granting RCM's proposed conversion by substituting an order approving a settlement agreement pursuant to Rule 9019, for which the appellate standard and issues on appeal would differ. Mr. Milmoe also avers that the RCM Settlement does not meet the standards required for approval under Rule 9019 of the Federal Rules of Civil Procedure, which require that the Court be advised "of all facts necessary for an intelligent and objective opinion of the probabilities of ultimate success should the claim be litigated." Further, the court should form an educated estimate of the complexity, expense, and likely duration of that litigation, the possible difficulties of collecting on any judgment which might be obtained, and all other factors relevant to a full and fair assessment of the wisdom of the proposed compromise. "Rather than resolve outstanding claims and eliminate or reduce pending or future litigation, the Settlement would simply shift the burden to defend in many cases from one defendant to another," Mr. Milmoe tells Judge Drain. Moreover, because the assets exclusively reserved for distribution to holders of "allowed Securities Customer Claims" is not diminished even if the pool of claimants is reduced, the RCM Settlement could promote litigation among those creditors who would seek to reduce the number of competing Securities Customer Claim holders to increase their individual recoveries, Mr. Milmoe maintains. The Debtors insist that the RCM Settlement does not advance the goal of resolving issues and reducing litigation on a global basis among the estates. Therefore, the Debtors ask the Court not to reach merits of the RCM Settlement at this time and to continue its consideration of the Settlement at a later date to afford the parties more time to reach a global resolution of the Debtors' cases. The U.S. Trustee, on the other hand, complains that the inter- claimant RCM Settlement contains incidental provisions allowing fees and expenses of counsel to the "Moving Customer Group" and the "Joinder Parties" in the RCM estate under substantial contribution provisions of Section 503(b)(3)(D). Considering that the RCM Settlement contains a "virtually automatic allowance of fees," the MCG/Joinders' attorney fees at issue totals $4,363,024, Andrew D. Velez-Rivera, the U.S. Trustee's Trial Attorney, notes. Even though it appears that the MCG and the Joinder Parties counsel have submitted their time details to the RCM Trustee, neither his request nor the RCM Settlement makes any provisions for the Court's or any other party-in-interest's review of time details, expense reports or other supporting materials, Mr. Velez-Rivera asserts. The counsel's attempts to obtain expedient allowance of the MCG's and the Joinder Parties' substantial contribution claims should not be countenanced. Concomitantly, Mr. Velez-Rivera says, even though Rule 9019(a) of the Federal Rules of Bankruptcy Procedure excuses litigants from putting on their case, Sections 330(a) and 503(b) contain none of the evidence-avoidance privileges of Rule 9019(a). Therefore, the U.S. Trustee asks the Court not to facilitate an end-run around those sections. Furthermore, FXCM argues that the RCM Settlement contains a conglomeration of numerous matters that reaches so far beyond a "settlement and compromise" between the parties that it is almost impossible to decipher and fully understand its impact and binding effect on the creditors of the RCM estate and, more importantly, on the creditors and parties-in-interest of the other related Debtor estates. FXCM insists that the RCM Settlement cannot and should not be approved as a stand-alone settlement for RCM without addressing, at a minimum, the disposition of a significant inter-company claim that exists and is owed by RCM to and in favor of Refco FX Associates, L.L.C. According to its records, RCM owes a net amount to FXA equal to $83,379,040. FXCM believes that the FX Receivable's substantial majority originated with amounts belonging to nearly 15,000 FXA retail customers, including FXCM. In addition, FXCM states that those funds were improperly transferred from FXA to RCM. Craig P. Rieders, Esq., at Genovese Joblove & Battista, P.A., in Miami, Florida, relates that if the RCM Trustee insists on pushing forward with the RCM Settlement as a stand-alone settlement, the inescapable reality of the RCM Settlement Agreement is that it: (i) violates the disclosure requirements of Section 1125 and the confirmation provisions and protections of Section 1129; (ii) disenfranchises numerous creditors who are not party to the RCM Settlement, including FXCM and the FXA creditors, and deprives them of their constitutional due process rights; and (iii) attempts to modify the statutory provisions of Subchapter III of Chapter 7 of the Bankruptcy Code, a task that is not within the power of the RCM Trustee or the Court, but rather is the sole province of Congress. JPMorgan holds a security interest in RCM assets in its possession and is "oversecured." JPMorgan opposes the RCM Settlement to the extent that it may impact the bank as a secured creditor. Without waiving any of its rights or remedies in respect of collateral to secure its claim, JPMorgan notes that if its secured claim is allowed, a principal amount of $79,500,000 with Court-approved interest, fees and charges will be reserved or paid to JPMorgan from proceeds of a SPhinX Settlement under the RCM Settlement. In the event that the ruling is reversed and the proceeds become unavailable or insufficient to satisfy its allowed secured claim, JPMorgan asserts that the RCM Settlement should not be construed in a manner that limits or impairs the bank's right as an oversecured creditor to adequate protection for its security interest. It should also not impair JPMorgan's right to be paid in full whether from JPMorgan's collateral or otherwise. The FXA Customer Committee denounces the RCM Settlement on the ground that it circumvents or alters the rights or interests of its members in the financial assets contained in certain accounts or otherwise held by RCM. Specifically, the FXA Customer Committee proposes that any order allowing the RCM Trustee to enter into or consummate the RCM Settlement should explicitly prohibit the use, transfer, conversion, dissipation, hypothecation, liquidation, or any other disposition of the property in which FXA and its members have a right, title or interest. Other parties insist that the RCM Settlement should not be approved because it is not "fair and equitable" to those creditors whose property was improperly obtained by RCM, and which the RCM Trustee intends to use to fund the Settlement. Shareholders, et al., Block RCM Settlement The Ad Hoc Committee of Equity Security Holders of Refco, Inc., complains that Refco Capital Markets, Ltd.'s settlement agreement with certain of its securities customers and general unsecured creditors improperly: (i) dictates terms of any future plan or liquidation proceeding; (ii) determines RCM and its customers' ownership of property; (iii) prohibits RCM from compromising intercompany disputes; and (iv) binds other debtors and parties-in-interest to a valuation of RCM's property performed by an appraiser chosen by RCM Trustee Marc S. Kirschner. John A. Lee, Esq., at Andrews Kurth LLP, in New York, tells the Bankruptcy Court that the RCM Settlement Agreement is a sub rosa Chapter 11 plan of reorganization or a Chapter 7 plan of distribution. A plan cannot be confirmed under Rule 9019 of the Federal Rules of Bankruptcy Procedure, and the plan embedded within the RCM Settlement does not appear confirmable. Mr. Lee notes that the RCM Settlement violates numerous standards applicable to plan confirmation, including solicitation and disclosure rules. In light of facts revealed in connection with an emergency request filed by RCM Members recently removed from the Official Committee of Unsecured Creditors, it appears questionable whether any negotiations between RCM and the other estates could have been conducted in good faith and at arm's-length. The Ad Hoc Equity Committee insists that the Court should closely scrutinize any aspects of the RCM Settlement that go beyond purely intra-RCM creditor affairs. Rule 7001(2) requires the filing of an adversary proceeding "to determine the validity, priority, or extent of a lien or other in interest in property." The RCM Settlement purports to bind all other parties-in-interest, including other debtors and their creditors and interest holders, to a determination that certain property belongs to RCM or its customers, Mr. Lee states. Moreover, the RCM Settlement requires that any claims asserted against RCM "be filed and proven in strict accordance with the Bankruptcy Code and Bankruptcy Rules." Thus, Mr. Lee says, the RCM Settlement would prevent RCM from resolving intercompany claims consensually, without amending the Settlement, which would require approval by the RCM Trustee and a supermajority of the parties to the Settlement. Mr. Lee asserts that the RCM Settlement would give the parties a disproportionate veto power over potential compromises of intercompany claims. In doing so, the Settlement would override Section 1129 of the Bankruptcy Code, which would require only two-thirds in amount of all voting RCM creditors to confirm a consensual plan embodying a compromise on intercompany claims. Accordingly, the Ad Hoc Equity Committee asks Judge Drain to deny the RCM Settlement and direct the RCM Trustee to conduct good faith, arm's-length negotiations with all parties over terms of a consensual global plan. The Ad Hoc Equity Committee consists of JMB Capital Partners, LP; Lonestar Capital Management, LLC; Mason Capital Management; Smith Management LLC; and Triage Management LLC. Stilton International Holdings Limited supports the Ad Hoc Equity Committee's position. Living Water Fund L.P., ABBA Funds, L.P., and RJ Trading, LLC -- plaintiffs in an adversary proceeding against RCM, FIMAT Alternative Strategies, Inc., and FIMAT USA, Inc. -- also ask Judge Drain to deny the RCM Settlement to the extent that it allows the seizure and use of proceeds aggregating $1,809,972 for actions related to certain EURO Option Contracts transactions. Mark A. Frankel, Esq., at Backenroth, Frankel & Krinsky, LLP, in New York, asserts that the Proceeds are property of Living Water and ABBA, and that RCM has no right in the Proceeds for payment of administrative and priority claims against the RCM estate. Until it is determined in the Adversary Complaint that the Proceeds are property of the RCM estate, there is no legal basis for "taking" and using the Proceeds, Mr. Frankel maintains. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported $16.5 billion in assets and $16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 38 & 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) REFCO INC: Ch. 11 Trustee Wants Court Nod on RCM Settlement Pact ---------------------------------------------------------------- Marc Kirschner, the Chapter 11 trustee overseeing Refco Capital Markets Ltd.'s estate, asks the Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York to overrule all the Objections and approve, in their entirety, the RCM Settlement and a settlement joinder by Rogers Raw Materials Fund, L.P. and Rogers International Raw Materials Fund, L.P. Some objecting parties sought assurance that the Settlement preserves their right to seek characterization of their claims as "Securities Customer Claims." The RCM Trustee relates that the requested assurance will be addressed through an amendment to the Settlement or reflected in a revised proposed order approving the Settlement. The RCM Trustee also assures the Court that nothing in the proposed order, as revised, approving the RCM Settlement would modify an April 26, 2006 Stipulation with the SPhinX Entities, which stipulation contains an unfortunate provision that makes its finality depend on exhaustion of appeals. Although the proceeds of the SPhinX recovery fall within the Settlement's "Assets in Place," the revised order will clarify that the RCM Trustee's right to distribute proceeds will have to abide conclusion of an appellate process on the SPhinX Stipulation. The RCM Trustee believes that neither the RCM Settlement nor the Revised Order would result in the allowance of substantial contribution claim amounts -- the subject of the U.S. Trustee's and Beckenham Trading Company, Inc.'s objections. Notwithstanding the RCM Trustee's support for allowance of the amounts as reasonable, the U.S. Trustee and other parties-in- interest would reserve the right to object to the reasonableness of the claim amounts asserted, which point would be confirmed in the Revised Order. With respect to JPMorgan Chase Bank, N.A.'s objection, the RCM Trustee confirms that the Settlement neither allows nor compromises JPMorgan's secured claim against RCM in any way. The Revised Order would confirm that JPMorgan's rights will not be affected by the Settlement approval in the event that the SPhinX Settlement is reversed or the proceeds of the SPhinX Settlement are otherwise unavailable or insufficient. Mr. Kirschner also contends that neither of these objectors claims a direct right against RCM: * FXCM Capital Markets, L.L.C., and its affiliate are contract parties with Debtor Refco F/X Associates, LLC; and * The Ad Hoc Refco F/X Customer Committee purports to represent FXA creditors. Mr. Kirschner explains that these objectors' interests depend on (i) FXA's claims against RCM being allowed; (ii) FXA establishing a net unsecured claim against RCM; and then (iii) the incorrect proposition that FXA's claim would be prejudiced by the Settlement. These objecting parties also have no legitimate economic stake in the outcome of the Settlement: * the Ad Hoc Committee of Equity Security Holders; * the Ad Hoc Committee of Senior Subordinated Noteholders, which represents holders of notes issued by Refco Finance Inc., and Refco Group Ltd., LLC; * Wells Fargo Bank, NA, as indenture trustee for the Noteholders; * Albert Togut, the Chapter 7 Trustee overseeing Refco, LLC's estate; * Bank of America, N.A., as agent to a group of lenders that has lent to RGL; and * the Official Committee of Unsecured Creditors. Tina L. Brozman, Esq., at Bingham McCutchen LLP, in New York, relates that a small core of objections -- from a tiny minority of discrete RCM constituents and certain other Debtors, represented by Skadden, Arps, Slate, Meagher & Flom LLP, that have asserted that they are RCM creditors -- have merits. With regard to customer claims to asset ownership, the RCM Trustee is seeking to settle disputes raised by Josefina Franco Siller and Winchester Preservation LLC, and is prepared to reserve the rights of Bencorp Casa de Bolsa, C.A., and Living Water for the time being. The RCM Trustee maintains that the Settlement does not constitute a sub rosa plan. Ms. Brozman points out that when a settlement agreement or sale of assets preserves the rights of other parties-in-interest to participate in a plan development and voting process, it will not constitute a "sub rosa" plan. In addition, Ms. Brozman argues, objections relating to the best interests of creditors test are "premature," since there is no way of prognosticating, in advance of promulgation of a global plan, whether a particular creditor will accept the plan under Section 1129(a)(7)(A)(i) of the Bankruptcy Code. The RCM ascertains that if the Settlement is implemented in a plan, then RCM's constituents will receive from the Assets in Place a substantially better return than they would obtain in a stockbroker liquidation. Moreover, the RCM Trustee asserts that approval of the RCM Settlement will appropriately treat the Rogers Funds Claims, which are among the largest claims in the Debtors' cases totaling around $382,000,000. The RCM Trustee says: (i) Rogers Funds was unlikely to prevail in its constructive trust claims; (ii) Rogers Funds was unlikely to prevail in claims brought against other Debtors; (iii) Rogers Funds was highly likely to establish substantial allowed claims at RCM; (iv) the Rogers Funds Claims were likely to be characterized as "securities customer" claims; and (v) it was possible, but unlikely, that the Rogers Funds Claims would be characterized as FX/Unsecured Claims. Rogers Funds, et al., Support Accord Rogers Funds want all the Objections overruled -- and the Settlements approved -- on the grounds that: (a) the Objecting Parties mischaracterize the scope and objective of the Rogers Settlement Joinder and ignore its importance as a "core condition" of the RCM Settlement; (b) Rule 9019 of the Federal Rules of Bankruptcy Procedure does not require a full adjudication of the Rogers Funds' Claims at RCM before the Settlement Joinder can be approved; and (c) Refco LLC has grossly mischaracterized the facts and law related to the "Rogers Funds Action." Guy S. Neal, Esq., at Sidley Austin LLP, in New York, points out that no party with a recognized claim against RCM has objected to the Rogers Settlement Joinder. More significantly, the super-majority of holders of both the Securities Customers Claims and the FX/Unsecured Claims support the Rogers Settlement Joinder and made it a condition precedent to going forward with the RCM Settlement. Certain foreign exchange customers of RCM and Leuthold Funds, Inc., and Leuthold Industrial Metals Fund, L.P., which hold in the aggregate approximately $400,000,000 in claims against RCM, want the Settlements approved on the basis that: -- the Creditors Committee's allegation that it was excluded from participating in negotiations surrounding the RCM Settlement is baseless; -- the objecting parties fail to demonstrate why the "customer property" allocation under the RCM Settlement is unreasonable; -- the Creditors Committee incorrectly analyzes both the risk of material "migration" of Securities Customer claims and the legal effect of migration if RCM's case was a stockbroker liquidation proceeding; and -- the Refco LLC/Rogers Funds risk is minimal and may benefit the FX/Unsecured Creditors. Securities customers holding approximately $1,700,000,000 in customer claims, and Abadi & Co. Securities, Ltd., also call for approval of the RCM Settlement and Rogers Settlement Joinder. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported $16.5 billion in assets and $16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 38 & 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) REFCO INC: BofA Wants Final Approval on Cash Collateral Use ----------------------------------------------------------- Bank of America, N.A., in its capacity as administrative agent for prepetition secured lenders under a Credit Agreement, dated Aug. 5, 2004, asks the Hon. Robert Drain of the U.S. Bankruptcy for the Southern District of New York to enter a final order: (1) authorizing Refco Group Ltd., LLC, and its affiliates to use the Prepetition Lenders' Cash Collateral; and (2) providing adequate protection to the Prepetition Lenders. BofA delivered to the Court a proposed Final Cash Collateral Order, pursuant to which the Debtors will be authorized to: (a) use up to US$83,333,000 in the aggregate of cash and cash investments of the Debtors other than Refco Capital Markets, LTD., for professional expenses related to RCM's Chapter 11 case -- Non-Lender Other Estate Expenses; and (b) use or distribute up to US$200,000,000 of Available Cash, provided that: -- with respect to the first US$100,000,000 used or distributed, 50% will be paid to BofA as adequate protection in respect of the Prepetition Credit Agreement; and -- with respect to the next US$100,000,000, 66-2/3% will be paid to BofA as Adequate Protection Payment. The balance of Available Cash used or distributed may be: (A) applied to the payment of Non-Lender Other Estate Expenses, to the extent accrued and payable in accordance with the Interim Compensation Order and with the Payment Allocation Methodology; or (B) reserved for the payment of future Non-Lender Other Estate Expenses accrued through the Termination Date when so accrued and payable. BofA proposes that no further Available Cash will be used or distributed without its written consent or further Court order, if: -- the aggregate amount of Available Cash paid or reserved for the payment of Non-Lender Other Estate Expenses reaches the US$83,333,000 Authorized Amount; or -- a plan of reorganization and corresponding disclosure statement for RCM has not been filed with the Court by Nov. 15, 2006. BofA also asks the Court to permit the Debtors to use, from Oct. 18, 2005, through the Termination Date, up to US$12,000,000 of Cash Collateral to pay administrative expenses other than Non-Lender Other Estate Expenses. "Termination Date" will mean the earlier of: * Dec. 15, 2006; and * seven business days after BofA notifies the Debtors in writing that it no longer consents to the use of Cash Collateral. BofA further asks Judge Drain to grant the Prepetition Lenders: 1. Adequate Protection Liens and Claims to the extent of their valid, perfected, and non-voidable security interests and liens in the Prepetition Collateral, for any diminution in value of their interests in the Prepetition Collateral from and after the Petition Date; and 2. to the extent of diminution, superpriority allowed claims pursuant to Section 507(b) of the Bankruptcy Code, with priority over administrative expenses and other claims allowable under Section 507(a)(2). BofA agrees to a US$1,000,000 carve-out to cover expenses of the Debtors and the statutory committees in connection with the investigation or evaluation of the validity, perfection, priority, extent or enforceability of the Prepetition Debt or the liens securing the Prepetition Debt. BofA asks Judge Drain to approve a scheme for allocating professional expenses of RCM, the Committee and other parties with professionals required to be compensated from RCM's estates. BofA adds that the Debtors should be required to continue providing weekly financial reports. A full-text copy of the Payment Allocation Methodology is available at no charge at http://ResearchArchives.com/t/s?107e BofA is represented in the Debtors' cases by Donald S. Bernstein, Esq., Karen E. Wagner, Esq., and Brian M. Resnick, Esq., at Davis Polk & Wardwell, in New York. A full-text copy of BofA's proposed Final Cash Collateral Order is available at no charge at: http://ResearchArchives.com/t/s?107f About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported $16.5 billion in assets and $16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 38 & 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ROOFTEC CONSERVATORY: Appoints Gary Bell as Administrator --------------------------------------------------------- Gary Bell of Cowgill Holloway Business Recovery LLP was appointed administrator of Rooftec Conservatory Roof Fabricators Limited (Company Number 03856030) on Aug. 10. The administrator can be reached at: Cowgill Holloway Business Recovery LLP Regency House 45-51 Chorley New Road Bolton Greater Manchester BL1 4QR United Kingdom Tel: 01204 414277 Fax: 01204 414244 E-mail: gary.bell@cowgills.co.uk Rooftec Conservatory Roof Fabricators Limited can be reached at: Cranfield Road Lostock Industrial Estate Lostock Bolton Lancashire BL6 4SB United Kingdom Tel: 01204 676 550 Fax: 01204 676 559 SANDUSKY WALMSLEY: Appoints PwC as Joint Administrators ------------------------------------------------------- Michael Horrocks and Russell Stewart Cash of PricewaterhouseCoopers LLP were appointed joint administrators of Sandusky Walmsley Limited (Company Number 03927308) on Aug. 14. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides, among others, auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. Headquartered in Bolton, United Kingdom, Sandusky Walmsley Limited imports and exports manufactured dairy products. SOUTHERN FERRIES: Brings In Kikis Kallis as Administrator --------------------------------------------------------- Kikis Kallis of Kallis & Co. was appointed administrator of Southern Ferries Limited (Company Number 05115010) on Aug. 14. The administrator can be reached at: Kallis & Co. Mountview Court 1148 High Road Whetstone London N20 0RA United Kingdom Tel: 020 8446 6699 Fax: 020 8492 6099 Southern Ferries Limited can be reached at: 30 Churton Street City of Westminster London SW1V 2LP United Kingdom Tel: 0870 499 1302 Fax: 0870 499 1304 SPECIALIST RECRUITMENT: Hires Joint Liquidators from Lines Henry ---------------------------------------------------------------- Neil Henry and Michael Simister of Lines Henry were appointed Joint Liquidators of Specialist Recruitment Solutions Limited on Aug. 15 for the purposes of the company's voluntary winding-up procedure. The company can be reached at: Specialist Recruitment Solutions Limited 8 Tilehouse Street Hitchin Hertfordshire SG5 2DU United Kingdom Tel: 01462 627711 STREAMDOOR LIMITED: Taps Atherton Bailey as Administrators ---------------------------------------------------------- Malcolm Peter Fillmore and Ranjit Bajjon of Atherton Bailey LLP were appointed joint administrators of Streamdoor Limited (Company Number 04694094) on Aug. 8. 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. Streamdoor Limited can be reached at: 114 Power Road Hounslow London W4 5PY United Kingdom Fax: 020 8994 9436 TAS PROPERTY: Brings In Kingston Smith to Administer Assets ----------------------------------------------------------- Ian Mark Defty of Kingston Smith & Partners LLP was appointed administrator of TAS Property Management Limited (Company Number 04126881) on Aug. 14. The administrator can be reached at: Kingston Smith & Partners LLP 105 St Peter's Street St Albans Hertfordshire AL1 3EJ United Kingdom Tel: 01727 896000 Fax: 01727 896028 TAS Property Management Limited can be reached at: 10 Devonshire Square City of London London EC2M 4YP United Kingdom Tel: 020 7283 7888 TMJ LIMITED: Creditors' Meeting Slated for September 7 ------------------------------------------------------ Creditors of TMJ (Durham) Limited (Company Number 05287485) will meet at 11:00 a.m. on Sept. 7 at: Tenon House Ferryboat Lane Sunderland SR5 3JN 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 Sept. 6 at: Ian William Kings Administrator Tenon Recovery Tenon House Ferryboat Lane Sunderland SR5 3JN United Kingdom Tel: 0191 511 5000 Fax: 0191 511 5001 Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. TOWER RECORDS: Wants Until Nov. 20 to File Schedules & Statement ---------------------------------------------------------------- MTS Inc., dba Tower Records, and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to extend, until Nov. 20, 2006, the deadline to file their Schedules of Assets and Liabilities and Statements of Financial Affairs. The Debtors tell the Court that due to the: a. substantial size and scope of their businesses, b. complexity of their financial affairs, c. limited staffing available to perform the required internal review of their accounts and affairs, and d. press of business incident to the commencement of their chapter 11 cases, they were unable to assemble all the information necessary to complete and file their Schedules and Statements before filing for bankruptcy. The Debtors contend that they won't be able to complete the Schedules and Statements within the time specified in Bankruptcy Rule 1007 and Local Rule 1007-1(b) due to the numerous critical operational matters that their limited staff of accounting and legal personnel must address in the early days of their chapter 11 cases. The Debtors say that completing the Schedules and Statements for each of the eight debtors will require collection, review and assembly of information from multiple locations throughout the United States. The Debtors however say that they recognize the importance the Schedules and Statements and assures the Court that they intend to complete it as quickly as possible. About Tower Records Headquartered in Sacramento, California, Tower Records -- http://www.towerrecords.com/-- owns and operates 89 stores in the U.S. with 144 additional stores run by licensees in nine different countries including Hong Kong, Malaysia, Philippines, Republic of Ireland, Israel, Colombia, Ecuador and Mexico. The Company opened one of the first Internet music stores on America Online in June 1995 and followed a year later with the launch of Tower.com. The Debtor and its affiliates previously filed for chapter 11 protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No. 04-10394) due to heavy debt incurred during its aggressive expansion in the 1990s, growing competition from mass discounters, and internet piracy. It has exited Argentina, Canada and the United Kingdom market and has sold off its profitable Japanese operation, which has split off from the main chain and is now an independent entity. The Debtors filed its second Chapter 11 bankruptcy protection on Aug. 20 (Bankr. Del. Case No. 06-10891). Mark D. Collins, Esq., of Richards Layton & Finger, represents the Debtors in the reorganization proceedings. When the Debtors filed for protection from their creditors, they estimated more than US$100 million in assets and debts. VEGASTREAM LIMITED: Hires Administrators from Geoffrey Martin ------------------------------------------------------------- Stephen Goderski and Geoffrey Martin of Geoffrey Martin & Co. were appointed joint administrators of Vegastream Limited (Company Number 03479914) on Aug. 14. The administrators can be reached at: Geoffrey Martin & Co. 7-8 Conduit Street London W1S 2XF United Kingdom Tel: 020 7495 1100 Fax: 020 7495 1144 E-mail: stephen.goderski@geoffreymartin.co.uk Vegastream Limited can be reached at: Unit 4 First Floor Western Road Bracknell Berkshire RG12 1RW United Kingdom Tel: 01344 784 900 Fax: 01344 784 901 WEB WORKS: Creditors' Meeting Slated for September 6 ---------------------------------------------------- Creditors of The Web Works New Media Limited (Company Number 02715102) will meet at 11:00 a.m. on Sept. 6 at: Tenon House Ferryboat Lane Sunderland SR5 3JN 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 Sept. 5 at: Ian William Kings Administrator Tenon Recovery Tenon House Ferryboat Lane Sunderland SR5 3JN United Kingdom Tel: 0191 511 5000 Fax: 0191 511 5001 Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. WILFRED YOUNG: Brings In Theodolous Papanicola as Administrator --------------------------------------------------------------- Theodolous Papanicola of Bond Partners LLP was appointed administrator of Wilfred Young Homes Limited (Company Number 04003943) on Aug. 15. The administrator can be reached at: Bond Partners LLP The Grange 100 High Street London N14 6TG United Kingdom Tel: 020 8444 2000 Fax: 020 8444 3400 Headquartered in Derbyshire, United Kingdom, Wilfred Young Homes Limited is engaged in general construction and civil engineering. WILKIE RECYCLING: Calls In Liquidator from Bridgers --------------------------------------------------- Peter Bridger of Bridgers was appointed Liquidator of Wilkie Recycling Systems Limited on July 13 for the purposes of the company's . The company can be reached at: Wilkie Recycling Systems Limited Unit 9 Brick Kiln Silchester Road Tadley Hampshire RG263PX United Kingdom Tel: 0118 981 6588 Web: http://www.wilkierecycling.com/ WOODFORD TRAVEL: Taps A. J. Clark to Liquidate Assets ----------------------------------------------------- A. J. Clark of Carter Clark was appointed Liquidator of Woodford Travel Agency Limited on June 16 for the purposes of the company's voluntary winding-up proceeding. The company can be reached at: Woodford Travel Agency Limited 26 The Broadway Woodford Green Essex IG8 0HQ United Kingdom Tel: 020 8505 4235 YEOMAN COMMERCIALS: Brings In M. J. Ryan to Liquidate Assets ------------------------------------------------------------ M. J. Ryan of M. J. Ryan & Co. was appointed Liquidator of Yeoman Commercials Limited on July 14 for the purposes of the company's . The company can be reached at: Yeoman Commercials Limited Guild House Rollins Street London SE151EP United Kingdom Tel: 020 7639 6660 ********* Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. 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. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. 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