/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060915.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 15, 2006, Vol. 7, No. 184 Headlines A U S T R I A EAT AND BEAT: Creditors' Meeting Slated for October 2 IGENEON: Vienna Court Orders Business Shutdown KANA SOFTWARE: Forms Financial Services Vertical Sales Team KANA SOFTWARE: Posts US$383,000 Net Loss for Second Quarter 2006 KANA SOFTWARE: Files Registration Statement for Stock Sale LEDERER: Wiener Neustadt Court Orders Business Shutdown MEINVORTEIL: Claims Registration Period Ends October 9 PERSONALBEREITSTELLUNG: Klagenfurt Court Closes Business REIXNER GASTRONOMIE: Wiener Neustadt Court Shuts Down Business WIDL & MAYRHOFER: Salzburg Court Orders Business Shutdown B E L G I U M SAMSONITE CORP: Posts US$6-Mln Net Loss in Second Quarter 2006 SAMSONITE CORP: Moody's Places Low-B Ratings Under Review C R O A T I A AGROKOR D.D.: Restructuring Spurs Moody's to Change Outlook F I N L A N D METSO CORP: Inks EUR100 Million Supply Pact with Guangzhou Paper G E R M A N Y AGENS ENGINEERING: Claims Registration Ends October 1 BRAMBACH GEBAUDEREINIGUNG: Claims Registration Ends October 2 BUSCH GMBH: Creditors' Meeting Slated for October 5 CARRE VERTRIEBS: Claims Registration Ends September 29 ELG GEBAUDETECHNIK: Claims Registration Ends October 1 ERNST SCHILLING: Creditors' Meeting Slated for September 29 FRIEDRICH-MULTIFORMA: Claims Registration Ends September 29 HERMANN HEINZ: Claims Registration Ends October 2 HOME BETREUTES: Claims Registration Ends October 4 PROVIDE HOME: Fitch Affirms BB Rating on Class E Tranche UNI-STEIN: Claims Registration Ends October 2 I T A L Y FIAT SPA: Acquires Vehicle-Related Business of Yuejin Motor K A Z A K H S T A N 4K: Creditors Must File Claims by Oct. 10 DOSKEN: Creditors Must File Claims by Oct. 10 DUET LTD: Almaty Court Opens Bankruptcy Proceedings IVIKON KURYLYS: Almaty Court Begins Bankruptcy Proceedings LIFE: Proof of Claim Deadline Slated for Oct. 6 MEGAPOLIS-ST: Proof of Claim Deadline Slated for Oct. 10 NARYN-KALA: Claims Registration Ends Oct. 10 ORION 2001: Claims Registration Ends Oct. 6 ORNEK: Akmola Court Commences Bankruptcy Proceedings SKIF: Creditors' Claims Due Oct. 10 K Y R G Y Z S T A N TRAVELCOM: Proof of claim Deadline Slated for Oct. 20 FORGE: Creditors Must File Claims by Oct. 20 M A C E D O N I A LUKOIL OAO: Eyes 40 Petrol Stations in Macedonia in Four Years M O L D O V A LION-GRI: June 30 Balance Sheet Upside-Down by US$440,255 N E T H E R L A N D S PLAYLOGIC ENT: June 30 Balance Sheet Upside-Down by US$2.6 Mln P O L A N D NETIA SA: Third Avenue Raises Equity Stake to 14.27% NETIA SA: Hunts for New Management President to Replace Madalski P O R T U G A L UNITED BISCUITS: Completes Sale of European Unit to Kraft Foods R U S S I A ALITET: Amur Court Commences Bankruptcy Supervision ALMETYEVSK-AGRO-PROM-SNAB: Bankruptcy Hearing Slated for Oct. 5 AMBER: Pskov Court Names N. Vereshak as Insolvency Manager ANASHINSKOYE: Krasnoyarsk Bankruptcy Hearing Slated for Oct. 26 ANKUR: Krasnodar Court Starts Bankruptcy Supervision ASTAKHANSKIY DISTILLERY: B. Govorov to Manage Assets BELOVO-TORG-COAL: Court Names L. Frantseva as Insolvency Manager BELOZERSKIY FISHING: G. Pogosyan to Manage Insolvency Assets BREAD: Rostov Court Names G. Kolesnikov as Insolvency Manager BRYANSK-PACKAGE: Court Names A. Terekhov as Insolvency Manager CHERNOVSKIY WOOD: Court Names I. Babenko to Manage Assets CREDIT BANK: Fitch Changes Outlook to Positive & Keeps IDR at B- FACTORY BULAT: Court Names I. Zolotukhin as Insolvency Manager GAZPROM OAO: Mulls Listing on Asian Exchanges INVESTMENT RESOURCE: M. Vasilega to Manage Insolvency Assets ISETSK-AGRO: Court Names N. Chelapko to Manage Insolvency Assets KOMSOMOLSKOYE: Rostov Court Starts Bankruptcy Supervision LENINGRADSKAYA-2: Krasnodar Court Starts Bankruptcy Supervision LUKOIL OAO: Eyes 40 Petrol Stations in Macedonia in Four Years LYSVA-WOOD: Perm Court Starts Bankruptcy Supervision Procedure NOVNIKOLAEVSKIY AGRO-SERVICE: E. Savchenko to Manage Assets NOVOLIPETSK STEEL: Board Okays Parameters of Upgrading Program NOVOLIPETSK STEEL: Earns US$944 Million for First Half 2006 PETROPAVLOVSKOYE: Court Starts Bankruptcy Supervision PRIVOLZHSKOYE: Court Names N. Senchenko as Insolvency Manager PSYGANSU: Court Names V. Kibishev as Insolvency Manager REINFORCED-CONCRETE PRODUCTS: V. Emelyanov to Manage Assets ROSBANK: Fitch Assigns Issuer Default Rating at B+ RZHAKSA-AGRO-PROM-KHIMIYA: S. Agapov to Manage Assets SEVERO-LYUBINSKIY: Omsk Court Starts Bankruptcy Supervision SOCHINSKIY FACTORY: Court Names R. Shubin as Insolvency Manager TMK OAO: Creates Joint Venture with Hydril Company LP TRANS-COAL-INVEST: Court Names P. Tumbasov as Insolvency Manager TRANSNEFT OAO: Drafting Documents for October Eurobond Issue UFIMSKIY: Bashkortostan Bankruptcy Hearing Slated for Oct. 26 WEST-ENERGO: Court Names A. Zamaraev as Insolvency Manager YUKOS OIL: Court to Resume Hearing on Tax Claims on Sept. 28 YUKOS OIL: Court Drops Yugansk's US$8.5 Billion Damages Suit S P A I N UNITED BISCUITS: Completes Sale of European Unit to Kraft Foods S W E D E N DOLE FOOD: Weak Performance Cues Moody's to Review Ratings U K R A I N E ALFA BANK: Moody's Assigns B1 Rating to UAH150-Mln Bond Issue AGROMIR: Zaporizhya Court Names Vasil Ishenko as Liquidator BITOVIK: Sumi Court Names Andrij Savochka as Insolvency Manager DRUZHBA: Sumi Court Names Yevgen Chuprun as Insolvency Manager GLUHIV BREAD: Sumi Court Starts Bankruptcy Supervision INDUSTRIALBANK: Merger Prompts Moody's to Assign Low-B Ratings INTEGRATION: Kyiv Court Starts Bankruptcy Supervision LMK: Volinska Court Starts Bankruptcy Supervision Procedure PASAR: Donetsk Court Names Oleksij Mernik as Insolvency Manager TECHNICS: Lviv Court Starts Bankruptcy Supervision Procedure U N I T E D K I N G D O M A MOMENT: Creditors Confirm Voluntary Liquidation AMBIENCE FURNITURE: Brings In Liquidator from Sharma & Co. ARMSTRONG FOUR: Names Paul John Webb as Administrator ATLANTIC GLAZING: Appoints Joint Liquidators from Harrisons CAPITAL STAFFING: Taps Leonard Curtis as Joint Administrators DECOR CENTRE: Taps M. D. Hardy to Liquidate Assets ENTERGY UK: Proof of Claim Deadline Slated for Oct. 12 EXEL RECRUITMENT: Creditors' Meeting Slated for September 18 EXSPECT LIMITED: Appoints Leonard Curtis as Liquidator FACTORY FABRICS: Claims Filing Period Ends September 23 FLOWERS LV: Hires C. H. I. Moore to Liquidate Assets FORD MOTOR: UAW Agrees to Voluntary, System-Wide Buyouts FROG NETWORKING: A. J. Clark Leads Liquidation Procedure FUTON DESIGN: Taps Cresswall Associates to Administer Assets FUTUREMEDIA PLC: Auditors Express Going Concern Doubt GENESIS INTEGRATED: Appoints Administrators from Begbies Traynor GLOBAL 20: Creditors' Meeting Slated for September 22 GLOSCAN LIMITED: Creditors Confirm Liquidator's Appointment GUARDIAN DOORS: Creditors' Meeting Slated for September 21 HARRINGTONS OF WILTSHIRE: Taps Laurence Russel as Administrator HEIZER LIMITED: Nominates Liquidator from Mayfields Insolvency IGO DIRECT: Nominates Andreas Georgiou Kakouris as Liquidator INTERIOR BUILDING: Creditors Ratify Voluntary Liquidation J & A BUILDING: Brings In Liquidator from Tenon Recovery KANA SOFTWARE: Forms Financial Services Vertical Sales Team KANA SOFTWARE: Posts US$383,000 Net Loss for Second Quarter 2006 KANA SOFTWARE: Files Registration Statement for Stock Sale KEYCHAIN LIMITED: Taps Lloyd Biscoe to Liquidate Assets KINDRACE LIMITED: Appoints Liquidators from Harrisons LABOUR FORCE: Gagen Dulari Sharma Leads Liquidation Procedure LEAFORD CONSTRUCTION: Names Anthony David Kent Liquidator LEIGH ELECTRICAL: Creditors' Meeting Slated for September 21 LET'S HAVE IT: Creditors' Meeting Slated for September 29 M F TOOLS: Brings In Liquidators from Dains MADISONS DELI: Appoints H. J. Sorsky to Liquidate Assets METAFOR LIMITED: Taps Tony Mitchell to Liquidate Assets MIDLAND BUILDING: Creditors Confirm Voluntary Liquidation NURSERY RESTAURANT: Joint Liquidators Take Over Operations OAKMACE SYSTEMS: Nominates C. M. Iacovides as Liquidator OPTIMUM PERSONNEL: Taps Begbies Traynor to Liquidate Assets ORGANIC EVOLUTION: Hires Joint Liquidators from Baker Tilly P & R MARKETING: Creditors Confirm Liquidator's Appointment PHOENIX TAPES: Calls In Liquidator from Elwell Watchorn PREMIER FOODS: Terminates United Biscuits' Acquisition Plan PREMIER FOODS: Repays GBP450-Million Bridge Facility in Full PROTEC MOTOR: Brings In Joint Administrators from F A Simms QUIDDINGTON REVELL: Creditors Confirms Liquidator's Appointment RAPHAEL EXECUTIVE: Names Louise Donna Baxter Liquidator S P BEATON: Passes Resolution for Voluntary Liquidation SAMSONITE CORP: Posts US$6-Mln Net Loss in Second Quarter 2006 SAMSONITE CORP: Moody's Places Low-B Ratings Under Review SECURE WINDOW: Creditors Confirm Liquidators' Appointment SOUTHERN PACIFIC: Fitch Affirms BB Ratings on Class E Tranches SUPARAMA SUPAMONKEY: Hires Ian Franses to Liquidate Assets TBL MARINE: Calls In Joint Liquidators from Acre House THERMAL SOLUTIONS: Names Graham Lindsey Down Liquidator TOTAL CONVEYOR: Hires Liquidators from Jacksons Jollife Cork TOTAL FABRICS: Taps Liquidation from Begbies Traynor UNITED BISCUITS: Completes Sale of European Unit to Kraft Foods WAYNE KEEPIN: Nominates Alun Evans as Liquidator WESCO AIRCRAFT: Moody's Rates First Lien Credit Facility at Ba3 WHITEFIELD PLANT: Names Liquidator from Begbies Traynor YORKSHIRE QUADS: Creditors Confirm Liquidator's Appointment * Moody's Eyes New Covenant Research & Assessment Framework * BOOK REVIEW: Panic on Wall Street: A History of America's Financial Disasters ********* ============= A U S T R I A ============= EAT AND BEAT: Creditors' Meeting Slated for October 2 ----------------------------------------------------- Creditors owed money by LLC Eat and Beat Gastro (FN 267063s) are encouraged to attend the creditors' meeting at 10:50 a.m. on Oct. 2 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Innsbruck Conference Hall 212 2nd Floor New Building Maximilianstrasse 4 6020 Innsbruck, Austria Headquartered in Brixental, Austria, the Debtor declared bankruptcy on July 31 (Bankr. Case No. 19 S 79/06z). Peter Planer serves as the court-appointed property manager of the bankrupt estate. Gerhard Thaler represents the Debtor in the bankruptcy proceedings. The property manager can be reached at: Dr. Peter Planer Klostergasse 1 Villa Margit 6370 Kitzbuehel, Austria Tel: 05356/66883 Fax: 05356/668844 E-mail: p.planer@aon.at The Debtor's representative can be reached at: Dr. Gerhard Thaler Larch Way 14 6322 Kirchbichl, Germany Tel: 05332/77625 Fax: 05332/76185 E-mail: thaler.gerhard@aon.at IGENEON: Vienna Court Orders Business Shutdown ---------------------------------------------- The Trade Court of Vienna entered an order on July 26 shutting down the business of LLC Igeneon (FN 181136b). Court-appointed property manager Herbert Hochegger determined that the continuing operation of the business would reduce the value of the estate. The property manager and his representative can be reached at: Dr. Herbert Hochegger c/o Dr. Bernhard Eder Brucknerstrasse 4/5 1040 Vienna, Austria Tel: 505 78 61 E-mail: office@hoch.co.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 18 (Bankr. Case No. 2 S 121/06s). Bernhard Eder represents Dr. Hochegger in the bankruptcy proceedings. KANA SOFTWARE: Forms Financial Services Vertical Sales Team ----------------------------------------------------------- KANA Software Inc. disclosed a series of organizational changes in its global sales and service operations, which will enable the company to accelerate its revenue growth and meet aggressive sales targets worldwide. In order to build upon its tremendous growth and customer adoption within the financial services market, KANA has established a global financial services vertical sales team. Daniel Turano, a seasoned veteran, joins KANA as the newly appointed Vice President of Global Financial Services and will work to build a sales team that is focused specifically on financial services accounts worldwide. As part of Mr. Turano's expanding financial services group, Lindsay McEwan has joined KANA as the regional sales manager for financial services in the United Kingdom, bringing ten years of direct sales and management experience within the investment banking, retail and capital markets vertical along with senior relationships with large financial institutions. "As a strategic alliance partner, we are very pleased and excited about KANA's new financial services initiative. With KANA's increased focus and investment in Financial Services, our joint relationship will further accelerate the delivery of market leading solutions to Financial Services organizations," said Mark Greene, Vice President, IBM Financial Services Sector. Enhancing Worldwide Sales Team Bill Rowe, who joined the organization in January, will expand his current role with a promotion to Senior Vice President of Worldwide Sales and Service. Mr. Rowe has been responsible for KANA's sales and professional services operations in the Americas region and will now expand that role to include Europe and Asia. Alf Saggese, Senior Vice President of Sales & Service for International Operations, will report into Mr. Rowe. Eric Ward will move into the role of Western Region Sales Director, with responsibility for expanding sales and services as well as continuing to build strong customer relationships. Edwin Kuhn will join KANA as the Eastern Region Sales Director. Mr. Kuhn has nineteen years of sales experience, most recently having served as the Identity Management (IDM) Sales Manager at Oracle Corporation, receiving recognition as the top IDM sales representative of the year. Both the Western and Eastern Region Sales Directors will report to Bill Rowe. In order to fully capitalize on the tremendous market opportunity stemming from rapid adoption of eService channels, KANA is expanding its worldwide sales organization and by the end of 2006 the Company will have doubled its sales force over the year ended 2005. As a result of this significant organizational expansion, KANA will have the necessary resources in place to ensure excellent customer service, pursue new transactions as well as focus on cultivating cross-sell and up- sell opportunities within its extensive install base. With more than 600 customers, including approximately half of the world's 100 largest companies, KANA is in an exceptional position to fuel its continued financial growth and success through this sales approach. "Elevating and expanding a worldwide sales team is an exciting initiative for any company. KANA has seen a substantial increase in demand for its multi-channel customer service solutions, especially in the financial services industry. This expansion is not only exciting but necessary for us to stay ahead of market demand as well as continue to give our customers the high levels of service and support they have come to expect," said Bill Rowe, Senior Vice President of Worldwide Sales and Service, KANA. Going Concern Doubt As reported in the Troubled Company Reporter on July 12, 2006, KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statement for the year ending Dec. 31, 2005. Burr Pilger pointed to the Company's recurring losses from operations, net capital deficiency, negative cash flow from operations and accumulated deficit. About KANA KANA Software, Inc., provides multi-channel customer service software applications. KANA's integrated solutions allow companies to deliver service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. The Company's target market is the Global 2000 with a focus on large enterprises with high volumes of customer interactions, such as banks, telecommunications companies, high- tech manufacturers, healthcare organizations and government agencies. The Company is headquartered in Menlo Park, California, with offices in Japan, Hong Kong, Korea and throughout the United States and Europe, including Austria, Germany, the Netherlands and the United Kingdom. KANA SOFTWARE: Posts US$383,000 Net Loss for Second Quarter 2006 ---------------------------------------------------------------- KANA Software Inc. reported a net loss in accordance with generally accepted accounting principles of US$383,000, for the quarter ended June 30, 2006, versus a GAAP net loss of US$1.9 million for the quarter ended June 30, 2005. The Company reported a GAAP net loss of US$1.5 million for the six months ended June 30, 2006, versus a GAAP net loss of US$15.7 million for the six months ended June 30, 2005. KANA's total revenues for the quarter ended June 30, 2006 were US$14.5 million, including license revenues of US$5.9 million. These revenue numbers represent increases of 36% in total revenue and 150% in license revenue over the second quarter 2005. This is KANA's fifth consecutive quarter of total revenue growth. KANA's total revenues for the six months ended June 30, 2006 were US$26 million, including license revenues of US$8.8 million. These revenue numbers represent increases of 25% and 125%, respectively, from the total and license revenue numbers reported for the six months ended June 30, 2005. "We are very pleased with our second quarter results, as they reflect the significant strides KANA has made over the last year to streamline the organization and focus on its core competencies," said Michael Fields, chief executive officer of KANA. "KANA's consistent revenue growth over the last five quarters is indicative of the overall market demand for multi- channel customer service software. More importantly, though, it's a testament to the depth and scalability of our solutions, the quality and commitment of our people and the mission and focus of our company. As a result, KANA is well positioned for profitability and continued success and leadership in the multi- channel customer service market." Based on the demand the Company is seeing and anticipating for its multi-channel customer service solutions with new and existing customers and integrator partners, KANA expects that total revenues for 2006 will range between US$56 million and US$58 million. This represents a growth of 30% to 34% percent over 2005 total revenues. Going Concern Doubt As reported in the Troubled Company Reporter on July 12, 2006, KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statement for the year ending Dec. 31, 2005. Burr Pilger pointed to the Company's recurring losses from operations, net capital deficiency, negative cash flow from operations and accumulated deficit. About KANA KANA Software, Inc., provides multi-channel customer service software applications. KANA's integrated solutions allow companies to deliver service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. The Company's target market is the Global 2000 with a focus on large enterprises with high volumes of customer interactions, such as banks, telecommunications companies, high- tech manufacturers, healthcare organizations and government agencies. The Company is headquartered in Menlo Park, California, with offices in Japan, Hong Kong, Korea and throughout the United States and Europe, including Austria, Germany, the Netherlands and the United Kingdom. KANA SOFTWARE: Files Registration Statement for Stock Sale ---------------------------------------------------------- KANA Software Inc. filed with the U.S. Securities and Exchange Commission on Sept 8, a registration statement on Form S-1 relating to the offer and sale of up to 5,277,665 outstanding shares of the common stock and 2,393,233 shares of common stock that may be issued on the exercise of outstanding warrants by: * NightWatch Capital Partners, LP; * NightWatch Capital Partners II, LP; and * RHP Master Fund, Ltd. including an additional 478,647 shares of common stock of which may be issued on the exercise of the warrants that may be issued upon the occurrence of an event of dilution resulting from stock splits, stock dividends or similar transactions or change in the exercise price by the selling stockholders. KANA will not receive any of the proceeds from the sales by the Selling Stockholders of the shares covered by the September 8 prospectus. The Company will pay the expenses related to the registration of the Shares covered by this prospectus. The Selling Stockholders will pay commissions and selling expenses, if any, incurred by them. As of Aug. 31, 2006, there were 34,517,637 shares of common stock outstanding and issued, excluding shares exercisable under warrants that KANA has issued. The Shares offered in the prospectus, represents 22.2% of the total outstanding and issued shares of the Company's common stock as of Aug. 31, 2006, excluding shares exercisable under warrants that the Company has issued. A full-text copy of the prospectus is available for free at http://researcharchives.com/t/s?11a0 Going Concern Doubt As reported in the Troubled Company Reporter on July 12, 2006, KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statement for the year ending Dec. 31, 2005. Burr Pilger pointed to the Company's recurring losses from operations, net capital deficiency, negative cash flow from operations and accumulated deficit. About KANA KANA Software, Inc., provides multi-channel customer service software applications. KANA's integrated solutions allow companies to deliver service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. The Company's target market is the Global 2000 with a focus on large enterprises with high volumes of customer interactions, such as banks, telecommunications companies, high- tech manufacturers, healthcare organizations and government agencies. The Company is headquartered in Menlo Park, California, with offices in Japan, Hong Kong, Korea and throughout the United States and Europe, including Austria, Germany, the Netherlands and the United Kingdom. LEDERER: Wiener Neustadt Court Orders Business Shutdown ------------------------------------------------------- The Land Court of Wiener Neustadt entered an order on July 26 shutting down the business of Construction LLC Lederer (FN 52237w). Court-appointed property manager Rudolf Vogrin determined that the continuing operation of the business would reduce the value of the estate. The property manager and his representative can be reached at: Mag. Rudolf Vogrin c/o Dr. Andreas Wippel Triesterstrasse 15 2620 Neunkirchen, Austria Tel: 02635/62860 Fax: 02635/6286114 E-mail: kanzlei.wippel@aon.at Headquartered in Enzenreith, Austria, the Debtor declared bankruptcy on June 16 (Bankr. Case No. 11 S 58/06z). Andreas Wippel represents Mag. Vogrin in the bankruptcy proceedings. MEINVORTEIL: Claims Registration Period Ends October 9 ------------------------------------------------------ Creditors owed money by LLC meinVORTEIL (FN 269892a) have until Oct. 9 to file written proofs of claims to court-appointed property manager Annemarie Kosesnik-Wehrle at: Dr. Annemarie Kosesnik-Wehrle c/o Dr. Stefan Langer Oelzeltgasse 4/6 1030 Vienna, Austria Tel: 713 61 92 Fax: 713 61 92 22 E-mail: annemarie.kosesnik-wehrle@kosesnik-langer.at stefan.langer@kosesnik-langer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on Oct. 23 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 2102 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 9 (Bankr. Case No. 45 S 52/06k). The Trade Court of Vienna ordered to shut down the Debtor's business on Aug. 25. PERSONALBEREITSTELLUNG: Klagenfurt Court Closes Business -------------------------------------------------------- The Land Court of Klagenfurt entered an order on July 26 closing the business of KEG Personalbereitstellung Kollmann (FN 253825y). Court-appointed property manager Heinz Sacher determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Heinz Sacher Freidlgasse 12 9400 Wolfsberg, Austria Tel: 04352/3441 Fax: 04352/3441-16 E-mail: ra.sacher@aon.at Headquartered in Wolfsberg, Austria, the Debtor declared bankruptcy on June 22 (Bankr. Case No. 40 S 49/06f). REIXNER GASTRONOMIE: Wiener Neustadt Court Shuts Down Business -------------------------------------------------------------- The Land Court of Wiener Neustadt entered an order on July 26 shutting down the business of LLC Reixner Gastronomie (FN 211080m). Court-appointed property manager Edwin Stangl determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Mag. Edwin Stangl Neunkirchner Str. 34/7 2700 Wiener Neustadt,, Austria Tel: 02622/84714 Fax: 02622/84714-22 E-mail: anwaelte@stangl-ferstl.com Headquartered in Sollenau, Austria, the Debtor declared bankruptcy on July 11 (Bankr. Case No. 10 S 63/06b). WIDL & MAYRHOFER: Salzburg Court Orders Business Shutdown --------------------------------------------------------- The Land Court of Salzburg entered an order on July 26 shutting down the business of KEG Widl & Mayrhofer (FN 20011d). Court- appointed property manager Christian Adam determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Christian Adam Sigma -Haffner-Gasse 3 5020 Salzburg, Austria Tel: 0662-841222-0 Fax: 0662-841222-6 E-mail: office@ra-adam.at Headquartered in Salzburg, Austria, the Debtor declared bankruptcy on July 14 (Bankr. Case No. 44 S 27/06d). ============= B E L G I U M ============= SAMSONITE CORP: Posts US$6-Mln Net Loss in Second Quarter 2006 -------------------------------------------------------------- Samsonite Corp. reported revenues for the six months ended July 31, 2006, of US$498.5 million compared to revenues of US$468.9 million during the same six-month period in the prior year. Operating income for the first six months of the year was US$33.1 million compared to US$40.2 million during the prior year period. Operating income for the first six months of the year was affected by charges of US$4.9 million for the write-off of deferred offering costs related to a postponed secondary stock offering and US$4.4 million for operational restructuring activities and associated asset impairment. Loss to common stockholders before the cumulative effect of an accounting change for the first six months of the year was US$6.4 million, or US$0.03 per share, which compares to net income of US$2.6 million, or US$0.01 per share, during the prior year period. Net income (loss) to common stockholders included charges of US$7.8 million in the current year period and US$7.3 million in the prior year period for preferred stock dividends. For the second quarter of fiscal year 2007, revenues were US$257.5 million, operating income was US$13.9 million and net loss to common stockholders was US$6.0 million or US$0.03 per common share. These results compare to revenues of US$236.5 million, operating income of US$18.0 million and net loss to common stockholders of US$1.3 million, or a loss of US$0.01 per share, for the second quarter of the prior year. Adjusted EBITDA (earnings before interest expense, taxes, depreciation and amortization adjusted for preferred stock dividends, certain items of other income and expense, minority interests, stock offering costs, restructuring charges, asset impairment charges, stock-based compensation expense, ERP project expenses, and to include realized currency hedge gains and losses), for the first six months of the current year was US$59.9 million versus US$55.7 million for the same period in the prior year. Included in the prior year results was US$3.2 million of revenue and Adjusted EBITDA from the sale of an apparel trademark for the U.S. market. Adjusted EBITDA was US$30.7 million for the second quarter compared to US$26.6 million for the second quarter of the prior year. Chief Executive Officer, Marcello Bottoli, stated: "I'm very pleased with the Company's progress on its major initiatives. Sales growth during the quarter was a robust 8.5% on a constant currency basis with solid progress in each major region. During the second quarter, the Company also acquired controlling interests in three companies: we entered into a majority-owned joint venture with our Thailand distributor; we acquired a majority interest in the operations of our Australian distributor; and in the U.S. we acquired a majority interest in Lambertson Truex, a premier luxury handbag and shoe designer label. These investments mark continued progress in the implementation of our long-term business plan." Richard Wiley, Chief Financial Officer, commented: "The Company's strategy of streamlining its operations while achieving top line growth is resulting in increased Adjusted EBITDA. Driven by price increases and lower fixed manufacturing and direct product cost, second quarter gross profit margins improved 140 basis points over the prior year to 50.2% and second quarter Adjusted EBITDA increased to US$30.7 million, or 15.3% over the prior year quarter. The improvement in gross margins has been achieved well ahead of our long-term gross margin target of 50%. The Company's working capital efficiency and capital structure also continue to improve. In the last twelve months, average net working capital efficiency improved 330 basis points over the prior year second quarter to 15.7% of sales and the Company repurchased and retired US$10.0 million in Senior Subordinated Notes during the quarter." About the Company Samsonite Corporation (OTCBB: SAMC.OB) - http://www.samsonite.com/-- -- designs, manufactures and distributes luggage, casual bags, business cases and travel related products throughout the world. The Company also licenses its brand names and is involved with the design and sale of apparel. * * * Moody's Investors Service placed the long-term ratings of Samsonite Corporation, under review for possible upgrade. The review was triggered by the sustained improvement in the company's operating performance and credit metrics, which has been largely driven by: -- management's strategy to drive profitable growth through geographic expansion, new product development, and brand building, -- ongoing cost reduction initiatives, and -- improved cash flow generation as a result of better efficiencies and working capital management. SAMSONITE CORP: Moody's Places Low-B Ratings Under Review --------------------------------------------------------- Moody's Investors Service placed the long-term ratings of Samsonite Corp., under review for possible upgrade. The review was triggered by the sustained improvement in the company's operating performance and credit metrics, which has been largely driven by: -- management's strategy to drive profitable growth through geographic expansion, new product development, and brand building, -- ongoing cost reduction initiatives, and -- improved cash flow generation as a result of better efficiencies and working capital management. The review for upgrade will focus on: -- the sustainability of Samsonite's success under the operating and financial plan; -- the impact of recent growth initiatives on overall earnings and cash flow stability; and -- management's future financial policy as it relates to debt reduction, acquisitions, and shareholder initiatives, including the completion of the potential US$300 million common stock offering in exchange for its existing preferred shares. Ratings placed on review for possible upgrade are: * Samsonite Corporation -- B1 corporate family rating; -- B1 on the senior unsecured notes; and -- B3 on the 8.875% subordinated notes. Samsonite manufactures, markets and distributes luggage and travel-related products. The company's owned and licensed brands, including Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren, Lacoste and Timberland, are sold globally through external retailers and 284 company-owned stores. Net sales for the twelve-month period ended April 30, 2006 were US$976 million. Executive offices are located in London, England. ============= C R O A T I A ============= AGROKOR D.D.: Restructuring Spurs Moody's to Change Outlook ----------------------------------------------------------- Moody's changed the outlook of the B2 corporate family rating of Agrokor D.D. to positive. The change in outlook reflects: -- the company's recent initiatives to improve the structure of its balance sheet, notably by extending its debt maturity profile with longer-dated instruments to alleviate short-term refinancing risk; -- the cash injection and broadening of the shareholder base following the recently-announced equity participation of the EBRD, with which financial targets as well as corporate governance policies have been agreed; and -- a strengthening business profile which should enable management to improve the financial profile of the company as it consolidates past acquisitions. In July 2006 Agrokor repaid its EUR230 million Eurobond maturing 2007 and replaced it with a 5-year syndicated loan (EUR325 million) and bridge facility (EUR150 million) with better terms, while lengthening its debt maturity profile. In addition, the EBRD injected EUR110 million in equity capital in Agrokor for an 8.33% stake in the company, of which EUR90 million was used to pay down debt. The EBRD, as the sole external shareholder (Mr. Ivica Todoric continues to retain 91.67% of the company), will be represented on the Supervisory Board, and participate in approving acquisitions. Agrokor's strong top line growth continues to be fueled by organic growth coupled with the integration of past acquisitions. The EBITDA margin in the twelve months to June 30, 2006 was at 7.2%, lower than in earlier years as the company has transitioned from being a food company to largely a food retailer. Margins are expected to benefit from the consolidation of recent acquisitions. The company's free cash flow, however, remains negative on account of the growth in working capital and capital expenditures to fund growth, although Moody's expects the company to pursue a less aggressive acquisition strategy. The current positive outlook therefore does not factor in any major acquisitions. The refinancing and capital injection have improved the company's liquidity and significantly reduced short-term liabilities. The company reports approximately HRK300 million in cash on hand (c. EUR41 million) in addition to HRK800 million (EUR110 million) in undrawn committed facilities. The positive outlook reflects the company's recent success in restructuring and lengthening its debt profile, the EBRD equity participation, and greater clarity with regards to financial policies and governance. Moody's believes that any deleveraging is likely to be achieved through top line growth and stronger operating cash flows rather than a reduction in nominal debt, as both working capital and capex continue to absorb substantial cash. Adj. Total Debt/EBITDA in the year to June 30, 2006 was at 4.87x, although this is expected to be slightly lower after the debt paydown using EBRD funds. Should the company achieve a deleveraging to around 4x on a sustainable basis, while improving its operating cash flows through stabilization in working capital, which is expected in the current year, the rating could be revised upward. Alternatively, if the company were to resume its past level of acquisitions and increase adjusted leverage to above 5x, this would likely lead to a reconsideration of the positive outlook. Agrokor, based in Zagreb, Croatia, is the largest food producing and retailing group in Croatia and the largest privately owned company in the country. Agrokor D.D., the parent and holding company, is majority owned by Ivica Todoric, the founder of the Group. In the twelve months to June 30, 2006 the company reported revenues of HRK 13.76 billion (EUR1.9 billion) and EBITDA of HRK987.8 million (c. EUR136 million). ============= F I N L A N D ============= METSO CORP: Inks EUR100 Million Supply Pact with Guangzhou Paper ---------------------------------------------------------------- Metso Paper, a subsidiary of Metso Corp., will supply Guangzhou Paper in Guangdong province, China, with a close to 400,000 tpy printing paper production line. Start-up is scheduled for end of 2007. The total value of the order is well over EUR100 million. The single-supplier delivery will include a complete 10.2-m-wide (wire), 2,000 m/min (design) OptiConcept paper machine, a parent reel cart, two winders and a roll wrapping machine, together with related stock preparation equipment, wet end chemical preparation and air systems. Metso Automation will supply an extensive automation package, including machine, process and quality controls, systems for runnability and condition monitoring, and a system for web runnability monitoring. Guangzhou Paper is one of China's oldest and most respected newsprint makers. It is also the site of Metso Paper's first paper machine delivery to the People's Republic of China, 50 years ago. Currently the company operates five newsprint machines with a combined capacity of 470,000 tpy. The Metso- supplied OptiConcept PM 1 was successfully started up in May 2006. Recently Guangzhou Paper placed an order with Metso Paper for an extensive rebuild of the mill's PM 8. Headquartered in Helsinki, Finland, Metso Corporation -- http://www.metso.com/-- is a global engineering and technology corporation with 2005 net sales of approximately EUR4.2 billion. Its 22,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. * * * The Company's 5-1/8% Senior Notes due 2009 carry Moody's Investors Service's Ba1 rating and Standard & Poor's BB rating. ============= G E R M A N Y ============= AGENS ENGINEERING: Claims Registration Ends October 1 ----------------------------------------------------- Creditors of AGENS Engineering GmbH have until Oct. 1 to register their claims with court-appointed provisional administrator Stephan Jaeger. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on Oct. 25 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 Munich, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Munich opened bankruptcy proceedings against AGENS Engineering GmbH on Aug. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: AGENS Engineering GmbH Oskar-Messter-Str. 25 85737 Ismaning, Germany The administrator can be contacted at: Stephan Jaeger Leopoldstr. 139 80804 Munich, Germany Tel: 089/361930-750 Fax: 089/361930-999 BRAMBACH GEBAUDEREINIGUNG: Claims Registration Ends October 2 ------------------------------------------------------------- Creditors of Brambach Gebaudereinigung GmbH have until Oct. 2 to register their claims with court-appointed provisional administrator Christian Frystatzki. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Nov. 9 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 Room W 1.24 C 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 Brambach Gebaudereinigung GmbH on Aug. 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Brambach Gebaudereinigung GmbH Johannesstr. 19 53721 Siegburg, Germany Attn: Michael Wellmann, Manager Sand 8 53773 Hennef, Germany The administrator can be contacted at: Dr. Christian Frystatzki Sankt Augustiner Road 94 a 53225 Bonn, Germany Tel: 0228/ 40 09 40 Fax: 0228/ 40 09 479 BUSCH GMBH: Creditors' Meeting Slated for October 5 --------------------------------------------------- The court-appointed provisional administrator for Busch GmbH Sanitar- und Gasheizungstechnik, Bernd Peters, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:30 a.m. on Oct. 5. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Court House (New Building) Ostertorstr. 25-31 28195 Bremen, Germany The Court will also verify the claims set out in the administrator's report at 10:00 a.m. on Dec. 21 at the same venue. Creditors have until Nov. 7 to register their claims with the court-appointed provisional administrator. The District Court of Bremen opened bankruptcy proceedings Busch GmbH Sanitar- und Gasheizungstechnik on Aug. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Busch GmbH Sanitar- und Gasheizungstechnik Waller Army Route 219 28219 Bremen, Germany Attn: Sven Busch, Manager Upper Borg 118A 28357 Bremen, Germany The administrator can be reached at: Dr. Bernd Peters Wall 146 28195 Bremen, Germany Tel: 0421/2440090 Fax: 0421/24400929 CARRE VERTRIEBS: Claims Registration Ends September 29 ------------------------------------------------------ Creditors of "Carre" Vertriebs-GmbH have until Sept. 29 to register their claims with court-appointed provisional administrator Joern Weitzmann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 1 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 Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, 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 Hamburg opened bankruptcy proceedings against "Carre" Vertriebs-GmbH on Aug. 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: "Carre" Vertriebs-GmbH Waitzstrasse 16-18 22607 Hamburg, Germany Attn: Klaas-Olaf Joachim Ernst, Manager Avenariusstrasse 16 22587 Hamburg, Germany The administrator can be contacted at: Joern Weitzmann Arnold-Heise-Road 9 20249 Hamburg, Germany Tel: 460797-0 Fax: 460797-25 ELG GEBAUDETECHNIK: Claims Registration Ends October 1 ------------------------------------------------------ Creditors of ELG Gebaudetechnik GmbH have until Oct. 1 to register their claims with court-appointed provisional administrator Rolf G. Pohlmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 13 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 Munich, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Munich opened bankruptcy proceedings against ELG Gebaudetechnik GmbH on Aug. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ELG Gebaudetechnik GmbH Klausnerring 15 85551 Heimstetten, Germany The administrator can be contacted at: Rolf G. Pohlmann Richard-Strauss-Str. 69 81677 Munich, Germany Tel: 089/548033-0 Fax: 089/548033-111 ERNST SCHILLING: Creditors' Meeting Slated for September 29 ----------------------------------------------------------- The court-appointed provisional administrator for Ernst Schilling GmbH & Co KG, Sandra Mitter, will present her first report on the Company's insolvency proceedings at a creditors' meeting at 9:00 a.m. on Sept. 29. The meeting of creditors and other interested parties will be held at: The District Court of Goettingen Hall B 8 Berliner Road 8 37073 Goettingen, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on Oct. 20 at the same venue. Creditors have until Sept. 30 to register their claims with the court-appointed provisional administrator. The District Court of Goettingen opened bankruptcy proceedings Ernst Schilling GmbH & Co KG on July 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ernst Schilling GmbH & Co KG Attn: Heinz Juergen Schilling, Manager Hedemuendener Road 15 34346 Hann, Germany The administrator can be reached at: Sandra Mitter Wilhelmshoeher Avenue 270 34131 Kassel, Germany Tel: 0561/3166311 Fax: 0561/3166312 FRIEDRICH-MULTIFORMA: Claims Registration Ends September 29 ----------------------------------------------------------- Creditors of Friedrich-Multiforma-Vertriebs GmbH have until Sept. 29 to register their claims with court-appointed provisional administrator Rainer Eckert. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 7 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt/Main opened bankruptcy proceedings against Friedrich-Multiforma-Vertriebs GmbH on Aug. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Friedrich-Multiforma-Vertriebs GmbH Attn: Kaarlo Friedrich, Manager Robert-Bosch-Str. 12 61184 Karben, Germany The administrator can be contacted at: Dr. Rainer Eckert Schumannstrasse 34b 60325 Frankfurt/Main, Germany Tel: 069/74748980 Fax: 069/747489810 HERMANN HEINZ: Claims Registration Ends October 2 ------------------------------------------------- Creditors of Hermann Heinz Baugeschaft GmbH have until Oct. 2 to register their claims with court-appointed provisional administrator Frank Bassermann. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 Karlsruhe Hall IV 1st Floor Schlossplatz 23 76131 Karlsruhe, 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 Karlsruhe opened bankruptcy proceedings against Hermann Heinz Baugeschaft GmbH on Aug. 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Hermann Heinz Baugeschaft GmbH Attn: Markus Heinz, Manager Katzentach 8 76275 Ettlingen, Germany The administrator can be contacted at: Frank Bassermann Lorenzstr. 29 76135 Karlsruhe, Germany Tel: 0721/160080 HOME BETREUTES: Claims Registration Ends October 4 -------------------------------------------------- Creditors of HOME Betreutes Wohnen gemeinnuetzige GmbH have until Oct. 4 to register their claims with court-appointed provisional administrator Rainer Eckert. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 1 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 Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle, 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 Halle-Saalkreis opened bankruptcy proceedings against HOME Betreutes Wohnen gemeinnuetzige GmbH on Aug. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: HOME Betreutes Wohnen gemeinnuetzige GmbH Attn: Traugott Kemmesies, Manager Pestalozzistr. 17 08371 Glauchau, Germany The administrator can be contacted at: Dr. Rainer Eckert Emil-Eichhorn-Str. 1 D-06114 Halle, Germany Tel: 0345/530490 Fax: 0345/5304926 PROVIDE HOME: Fitch Affirms BB Rating on Class E Tranche -------------------------------------------------------- Fitch Ratings placed two tranches of Provide Home 2001-1 PLC on Rating Watch Negative following continued poor collateral performance and limited information as to the nature of defaulted reference claims. The remaining three tranches from this transaction have been affirmed. Fitch also affirmed 12 tranches of Provide Home 2002- 1 PLC and Process Home 2003 PLC. All three deals are originated by Aareal Bank AG. The rating actions are: Provide Home 2001-1: -- Class A+ (ISIN XS0139884711) affirmed at AAA; -- Class A (ISIN XS0139881451) affirmed at AAA; -- Class B (ISIN XS0139885015) affirmed at AA; -- Class C (ISIN XS0139885361) A on RWN; and -- Class D (ISIN XS0139885957) BBB on RWN. Provide Home 2002-1: -- Class A1+ (ISIN XS0152406103) affirmed at AAA; -- Class A2+ (ISIN XS0152407176) affirmed at AAA; -- Class B (ISIN XS0152408497) affirmed at AA; -- Class C (ISIN XS0152408570) affirmed at A; -- Class D (ISIN XS0152408737) affirmed at BBB; and -- Class E (ISIN XS0152408901) affirmed at BB. Process Home 2003: -- Class A+ (ISIN XS0182067735) affirmed at AAA; -- Class A (ISIN XS0182068113) affirmed at AAA; -- Class B (ISIN XS0182068386) affirmed at AA; -- Class C (ISIN XS0182068543) affirmed at A; -- Class D (ISIN XS0182068972) affirmed at BBB; and -- Class E (ISIN XS0182069350) affirmed at BB. Fitch has been monitoring the performance of these German residential mortgage-backed securities closely throughout 2006 as the agency has been concerned with the increasing level of reported defaulted reference claims, particularly in PH1. Fitch has been requesting additional data from Aareal and in the absence of further information being received would have downgraded Class C and Class D of PH1. The agency now expects to receive additional data from Aareal shortly and as a consequence, Class C and Class D have been placed on RWN pending further analysis of the information to be received. Fitch expects to resolve the RWN on completion of this analysis at which point further comment will be made. The additional data are expected to include a breakdown of the current status of the loans in default or classed as credit events. For example, if the property is in the restructuring stage, if foreclosure is scheduled and also if the foreclosure is complete. The information to be received will allow an analysis of the non-performing loans within the portfolio. At the August interest payment date, 7.05% of loans were reported as being defaulted reference claims. However, to date, Fitch has been unable to determine to what extent this reported figure is non-performing, given that all claims defined as defaulted, even if they have subsequently become performing again, remain in this category. The level of credit events in this transaction has remained relatively stable and currently account for 0.62% of the outstanding balance. A credit event is defined as bankruptcy of the borrower or failure to pay. Failure to pay is defined as amounts due not having been paid within 120 days of the due date, subject to certain minimum limits. In the event that a credit event is not remedied, defaulted reference claims are deemed to be where a credit event has occurred and the trustee has been notified. Reported losses for PH1 have remained remarkably low, which suggests that maybe not all of the defaulted loans remain non- performing. To date, only 0.01% of losses have crystallized. Currently EUR61.32 million are reported as defaulted claims. PH1 has a high proportion of loans secured on properties that Fitch considers to be key drivers of default. According to the latest investor report, 19.48% of the portfolio is secured on multi-family housing and 42.34% is secured on investment properties. The agency will be particularly concentrating on proportions of such features in defaulted reference claims in its analysis, which are expected to be higher than proportions in the portfolio as a whole. Further, Fitch expects the 33.92% of loans that are second-lien will have a significant impact on loss severities. All first liens must be paid in full before any recovery proceeds can flow to the second-lien. Given that second-lien claims rank junior to the first lien, in terms of the distribution of enforcement proceeds, lower recoveries and higher loss severities can be expected. Given the seasoning of the PH1 portfolio at 9.8 years, it is amortizing relatively slowly compared to other German RMBS transactions, with an average principal payment rate of 11.39%. This means that the deal has not de-leveraged as quickly as other deals with credit enhancement rates building relatively slowly. Overall 39% of the note principal has repaid to date. PH2 is performing better than its predecessor. Current delinquencies, defined as two months or more in arrears account for 1.04% of the outstanding balance, compared to 2.23% in PH1. Aggregate credit events account for 0.24% in the later transaction, and defaulted reference claims account for 3.71% of the outstanding portfolio balance. No losses have yet been reported. The proportion of second-lien loan in the portfolio is considerably lower than that of PH1. Given this, loss severities can be expected to be lower in this transaction. The portfolio has amortized approximately 40%, at an average principal payment rate of 10.37% per annum, which like PH1 is relatively low for the German RMBS sector as a whole. Consequently, there has been an increase in credit enhancement levels for all tranches; however, this has been relatively slow given the PPR. Process Home 2003 transaction consists of three sub-portfolios. Total delinquencies account for 2.04%, while aggregate credit events and defaults are currently at 0.36% and 3.09% of the outstanding balance respectively. Although they continue to show a rise since closing in December 2003, the rate at which they are increasing remains less than PH1 and PH2 at the same stage of transaction life. Almost 35% of the portfolio has amortized since closing, largely resulting from repayments and pre-payments in the commercial and multi-family sub-portfolios. This has had a beneficial impact in increasing the current credit enhancement available to the outstanding rated notes. UNI-STEIN: Claims Registration Ends October 2 --------------------------------------------- Creditors of Uni-Stein Baustoffhandel GmbH i. L. have until Oct. 2 to register their claims with court-appointed provisional administrator Christian Scholz. Creditors and other interested parties are encouraged to attend the meeting at 9:10 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 Tostedt Area CE.02 Linden 23 21255 Tostedt, 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 Tostedt opened bankruptcy proceedings against Uni-Stein Baustoffhandel GmbH i. L. on Aug. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Uni-Stein Baustoffhandel GmbH i. L. Attn: Wolfgang Taeger, Liquidator Kantstr. 6 a 2l62l Neu Wulmstorf, Germany The administrator can be contacted at: Christian Scholz Heuberg 1 20354 Hamburg, Germany Tel: 040/3501690 Fax: 040/35016915 ========= I T A L Y ========= FIAT SPA: Acquires Vehicle-Related Business of Yuejin Motor ----------------------------------------------------------- Naveco Iveco, a unit of Fiat S.p.A., signed a joint venture agreement with Nanjing Automotive Corp. where Naveco acquires the commercial vehicle-related business of Yuejin Motor Corp., controlled by NAC. The Joint Venture contract has been signed in the presence of the President of the Council of Ministers of the Republic of Italy, Romano Prodi, of the Governor of Jiangsu Province, Liang Baohua, of the President of the Italian Confederation of Industry and of Fiat Group, Luca Cordero di Montezemolo and of the CEO of the Fiat Group, Sergio Marchionne. "Naveco's acquisition of Yuejin Motor Company completes Iveco's strategy of having a full range of commercial vehicles in China which, in addition to the vehicles we have mentioned, will also comprehend heavy vehicles to be produced in Chongqing under a long-term cooperation with SAIC Motor Corporation," Paolo Monferino, Iveco CEO disclosed. Naveco currently manufactures over 20,000 commercial vehicles per year. Through the new Naveco, Iveco will participate in the Chinese market's high-volume segments of light and medium commercial vehicles for goods transport. The new Naveco's anticipated volumes at start-up will be about 70,000 units per year. The medium-term plan envisages a further increase up to 100,000 units. The new Naveco will couple the current production of the high- grade commercial vehicle Daily with the current Yuejin range, the latter currently undergoing an aggressive product improvement plan through the introduction of Iveco technologies. This plan will bring substantial enhancements to the Yuejin products that will be gradually equipped with Iveco components and engines compliant with future emission requirements. The Iveco activities in China date back to the mid- 1980s with the launch of light commercial vehicles based on the Daily platform. These vehicles were produced by the newly established Joint Venture NAC-Iveco, called Naveco, whose current product range is positioned in the high-end, premium market segment, mainly focused upon passenger transport, but limited in terms of volumes. About Naveco Naveco Ltd., a Sino-Italian Joint Venture established by Nanjing Automotive Corporation and Iveco, is a light commercial vehicle and engine manufacturer. The JV's product offerings comprise more than 200 models in 6 segments, from 3 to 6 tons, including light and medium buses, military off-road vehicles, and special vehicles. Over the years, the company has built up a reliable and effective quality system certified in accordance with several international quality standards. About Yuejin Motor Corporation Yuejin Motor Corporation is one of the largest automotive enterprises in China. At present, Yuejin Motor Corporation possesses an annual production capacity of 180,000 vehicles of various models and oversees three major vehicle production bases, namely, Nanjing Yuejin, Nanjing Iveco and Nanjing Fiat. About Iveco Iveco designs, manufactures, and sales a broad range of light, medium and heavy commercial vehicles, off-road trucks, city and intercity buses and coaches as well as special vehicles for applications such as fire fighting, off-road missions, defence and civil protection. Iveco employs 32,000 people and runs 43 production units in 18 Countries in the world using excellent technologies developed in 15 research centres. Besides Europe, the company operates in China, Russia, Turkey, Australia, Argentina, Brazil, and South Africa. About Fiat S.p.A Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported in TCR-Europe on Aug. 8, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Italian industrial group Fiat S.p.A. to 'BB' from 'BB-'. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Fiat. S&P said the outlook is stable. "The upgrade reflects Fiat's strong debt reduction achievements, positive trends in the auto sector, and improvements in the group's profitability and cash generation," said Standard & Poor's credit analyst Nicolas Baudouin. As reported in TCR-Europe on Aug. 7, Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from Stable. Its Issuer Default rating and senior unsecured rating are affirmed at BB-. The Short-term rating is affirmed at B. Around EUR6 billion of debt is affected by this rating action. The Outlook change is underpinned by the consistent improvement of the group's financial profile, the pick-up in Fiat Auto's market shares and earnings since late 2005 and positive expectations for the CNH and Iveco divisions. Fiat carries Moody's Ba3 long-term corporate family rating since July 14, 2003. =================== K A Z A K H S T A N =================== 4K: Creditors Must File Claims by Oct. 10 ----------------------------------------- LLP 4K has declared insolvency. Creditors have until Oct. 10 to submit written proofs of claim at: LLP 4K Shevchenko Str. 5-19 Almaty, Kazakhstan Tel: 8 (3272) 91-71-59 DOSKEN: Creditors Must File Claims by Oct. 10 --------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Dosken insolvent on July 13. Creditors have until Oct. 10 to submit written proofs of claim to: LLP Dosken Micro District Samal, 15-29 Taldykorgan Almaty Region Kazakhstan Tel: 8 (3282) 25-43-90 DUET LTD: Almaty Court Opens Bankruptcy Proceedings --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region commenced bankruptcy proceedings against LLP Duet Ltd. (RNN 600700196497) on July 24. IVIKON KURYLYS: Almaty Court Begins Bankruptcy Proceedings ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region commenced bankruptcy proceedings against LLP Ivikon Kurylys (RNN 600500513437) on July 25. LIFE: Proof of Claim Deadline Slated for Oct. 6 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region entered an order placing LLP Life into compulsory liquidation. Creditors have until Oct. 6 to submit written proofs of claim to: LLP Life Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan MEGAPOLIS-ST: Proof of Claim Deadline Slated for Oct. 10 -------------------------------------------------------- LLP Megapolis-ST has declared insolvency. Creditors have until Oct. 10 to submit written proofs of claim to: LLP Megapolis-ST Momyshuly Str. 17 Astrahanka Astrahanskyi District Akmola Region Kazakhstan NARYN-KALA: Claims Registration Ends Oct. 10 -------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region LLP Naryn-Kala has declared insolvency. Creditors have until Oct. 10 to submit written proofs of claim to: LLP Naryn-Kala 3rd Floor Abai Str. 10a Atyrau Atyrau Region Kazakhstan ORION 2001: Claims Registration Ends Oct. 6 ------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region entered an order placing LLP Orion 2001 into compulsory liquidation. Creditors have until Oct. 6 to submit written proofs of claim to: LLP Orion 2001 Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan ORNEK: Akmola Court Commences Bankruptcy Proceedings ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region commenced bankruptcy proceedings against LLP Ornek on July 13. SKIF: Creditors' Claims Due Oct. 10 ------------------------------------ LLP Skif has declared insolvency. Creditors have until Oct. 10 to submit written proofs of claim to: Momyshuly Str. 17 Astrahanka Astrahanskyi District Akmola Region Kazakhstan =================== K Y R G Y Z S T A N =================== TRAVELCOM: Proof of claim Deadline Slated for Oct. 20 ----------------------------------------------------- LLC Travelcom (RNN 02605200510154) has declared insolvency. Creditors have until Oct. 20 to submit written proofs of claim to: LLC Travelcom Moskovskaya Str. 49 Bishkek, Kyrgyzstan Tel: (+996 312) 66-22-17 FORGE: Creditors Must File Claims by Oct. 20 -------------------------------------------- LLC Forge has declared insolvency. Creditors have until Oct. 20 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 64-10-26. ================= M A C E D O N I A ================= LUKOIL OAO: Eyes 40 Petrol Stations in Macedonia in Four Years -------------------------------------------------------------- OAO Lukoil (RTS: LKOH) will open 40 petrol stations in Macedonia over the next four years, RIA Novosti says. Lukoil agreed to supply oil products to Macedonia under a memorandum of cooperation signed in June 2005. Lukoil acquired a 5,600 cubic meter-capacity oil storage facility in August 2006, which would receive oil products from the company's refineries in Bulgaria and Romania. Lukoil opened its first petrol station in Skopje, Macedonia on Sept. 8. About Lukoil Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX, RTS: LKOH) is the country's largest vertically integrated oil & gas company in terms of reserves, and one of the largest oil & gas companies in the world. In the first nine months of 2005, the group produced 1.92 million barrels of oil equivalent (boe) per day and in 2004 had refinery throughput of 44 million tons. Total SPE reserves in 2004 were just over 20 billion boe. The group's 2005 nine-month revenues were US$40.6 billion. * * * As reported in TCR-Europe on July 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Lukoil OAO to 'BB+' from 'BB'. S&P said the outlook is positive. As reported in the TCR-Europe on Jan. 26, Moody's Investors Service has changed the outlook of OAO Lukoil's Ba1 Corporate Family Rating and Ba2 Issuer Rating to positive from stable. Moody's last rating action on LUKOIL was on April 26, when the agency upgraded the company's ratings from Ba2/Ba3 to Ba1/Ba2. ============= M O L D O V A ============= LION-GRI: June 30 Balance Sheet Upside-Down by US$440,255 --------------------------------------------------------- Lion-Gri International Inc. (nka Promotora Valle Hermoso Inc.) disclosed its unaudited financial results for the quarter ended June 30, 2006. At June 30, 2006, the company's balance sheet showed US$440,255 in stockholders' deficit, compared with a US$532,256 deficit at Dec. 31, 2005. For the three months ended June 30, 2006, the company posted a US$222,915 net loss on US$506,955 of net sales. On June 6, Promotora Valle entered into a share exchange with Lion Gri, which calls for Lion Gri to acquire the assets and assume the liabilities of Promotora. As provided for in the share acquisition agreement, Promotora's stockholders received 4 million shares of Lion Gri common stock, representing 64% of the outstanding stock after the acquisition, in exchange for the outstanding shares of Promotora's common stock they held, which was accounted for as a reverse acquisition. Immediately following the share acquisition, Lion Gri had a total 6,352,500 common shares issued and outstanding. The financial statements show a retroactive restatement of Promotora Valle Hermoso's historical stockholders' equity (deficiency) to reflect the equivalent number of common shares issued in the acquisition. The acquisition of Promotora Valle Hermoso was reported as a purchase with no goodwill, with book values considered to be fair value. Promotora Valle Hermoso was then liquidated and Lion Gri changed its name to Promotora Valle Hermoso, Inc. Change of Auditors On Aug. 14, Promotora dismissed Sherb & Co. LLP as its independent accountant and engaged Wiener, Goodmand & Co. PC to replace the firm. Going Concern Doubt Sherb previously expressed substantial doubt about Lion-Gri's ability to continue as a going concern after auditing the Company's consolidated financial statements for the year ended Dec. 31, 2005. The auditing firm pointed to the Company's claim that the Russian government may ban alcohol imports from Moldova, claiming impurities in the drinks posed a threat to public health. Management believes that these claims are politically motivated and is related to worsening relations with both countries. Management believes that these claims are false and that these issues will be resolved in the near future. Headquartered in Chisinau, Moldova, Lion-Gri International Inc. (nka Promotora Valle Hermoso Inc.) and its subsidiaries produce, market and sell premium Moldovan wines in countries outside the Republic of Moldova, with approximately 90% of revenue coming from the Russian Federation. ===================== N E T H E R L A N D S ===================== PLAYLOGIC ENT: June 30 Balance Sheet Upside-Down by US$2.6 Mln -------------------------------------------------------------- Playlogic Entertainment Inc. incurred a US$3,965,285 net loss on US$3,132,671 of revenues on the second quarter ending June 30, 2006, the Company disclosed in a Form 10-QSB report filed with the U.S. Securities and Exchange Commission. As of June 30, 2006, the Company's balance sheet showed assets amounting to US$9,518,266 and liabilities aggregating US$12,182,312. The Company's equity position slid from a US$1,255,826 positive equity as of June 30, 2005, to a US$2,664,046 equity deficit at June 30, 2006. As of June 30, 2006, the Company had US$151,593 of cash on hand. Willem M. Smit, the Company's Chief Executive Officer, said that to cover the Company's working capital requirements through the third quarter of 2006, the Company needs to obtain additional financing from third parties. The cash flow from operating activities could not be sufficient to cover the existing commitments and the development costs for both externally and internally developed games. As of June 30, 2006, the Company had US$3,905,993 in current assets to pay for US$11,934,409 in current debts. A full-text copy of the regulatory filing is available for free at http://ResearchArchives.com/t/s?1109 Going Concern Doubt S. W. Hatfield, CPA, the Company's auditor, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ending Dec. 31, 2005. The auditor pointed to the Company's net operating losses and reliance on outside sources of working capital to meet current obligations. Change of Auditors On Aug. 16, 2006, the company appointed Rothstein, Kass & Company, P. C. as its new independent registered public accounting firm to audit the Company's 2006 financial statements. Concurrently with the appointment of the new independent accountant, S. W. Hatfield CPA ceased to be the Company's independent accountant. These decisions were approved by the Board of Directors of the Company. About Playlogic Entertainment Headquartered in Amsterdam, Netherlands, Playlogic Entertainment Inc. publishes interactive entertainment products, such as video game software and other digital entertainment products. The Company publishes for most major interactive entertainment hardware platforms, like Sony's PlayStation2, Microsoft's Xbox and Nintendo's Game Cube, PCs, next generation consoles and handheld (such as Nintendo's Game Boy, Nintendo DS, and PSP) and mobile devices. =========== P O L A N D =========== NETIA SA: Third Avenue Raises Equity Stake to 14.27% ---------------------------------------------------- Netia S.A. received a notification on Sept. 12 filed on behalf of Third Avenue Management LLC that ownership of Netia's shares, held by Third Avenue Management on behalf of its clients, has increased above the threshold of 14% of the total number of votes at Netia's General Meeting of Shareholders. As a result of the settlement on Sept. 8 of a purchase of Netia shares effected on the Warsaw Stock Exchange, Third Avenue Management holds 55,539,769 Netia shares, representing 14.27% of Netia's share capital and entitling the holder thereof to exercise 55,539,769 votes, which represents 14.27% of the total number of votes at Netia's General Meeting of Shareholders. Prior to this transaction, Third Avenue Management held 54,731,154 Netia shares, which represented 14.06% of Netia's share capital, and was entitled to 54,731,154 votes, representing 14.06% of the total number of votes at Netia's General Shareholder Meeting. About the Company Headquartered in Warsaw, Poland, Netia S.A. (B+/Stable/) -- http://netia.pl/-- is an alternative fixed-line telecommunications operator in Poland. It operates on the basis of its own, state-of-the-art fiber-optic backbone network that connects the largest Polish cities as well as its local access networks. Netia provides a broad range of telecommunications services, including voice, data and network wholesale services. NETIA SA: Hunts for New Management President to Replace Madalski ---------------------------------------------------------------- Netia S.A. disclosed the resignation of the President of its Management Board, Wojciech Madalski, effective Sept. 13. Mr. Madalski left Netia after four years in the post of President of the Management Board. He was instrumental in leading Netia after its financial restructuring, which took place in 2002-2003, and played an important role in the progress that the Company has made in recent years. He was also the central figure in the establishment of Netia's mobile affiliate P4 Sp. z o.o., the award of Poland's fourth mobile telephony license to P4, and the recent signing of the agreement on national roaming between P4 and Polkomtel. The Supervisory Board of Netia has asked Pawel Karlowski to assume the role of Acting President of the Management Board of Netia. Mr. Karlowski is currently the Chief Commercial Officer of Netia and a Member of the Management Board. He has had a long career in the telecommunication industry in Poland and brings significant experience to the role. In parallel with the appointment of Mr. Karlowski, the Supervisory Board of Netia has engaged an executive search firm to assist it in evaluating its options in identifying a permanent replacement for Mr. Madalski. Mr. Karlowski will be one of the candidates under consideration for the position. "I am looking forward to the challenge of strengthening Netia's position as the leading alternative operator in the currently- liberalizing Polish telecoms market and thus bringing greater choice and more competition to both business and residential customers," Mr. Karlowski said. "Netia is well-placed with both a fixed-line and mobile strategy, and human and financial resources, to implement that strategy." Mr. Karlowski assumed the position of Acting President of the Management Board of Netia as of Sept. 14, 2006. About the Company Headquartered in Warsaw, Poland, Netia S.A. (B+/Stable/) -- http://netia.pl/-- is an alternative fixed-line telecommunications operator in Poland. It operates on the basis of its own, state-of-the-art fiber-optic backbone network that connects the largest Polish cities as well as its local access networks. Netia provides a broad range of telecommunications services, including voice, data and network wholesale services. =============== P O R T U G A L =============== UNITED BISCUITS: Completes Sale of European Unit to Kraft Foods --------------------------------------------------------------- United Biscuits has completed the sale of its Southern European business to Kraft Foods Inc. for an enterprise value of GBP575 million. The Sale also returns to Kraft the rights to all Nabisco trademarks, including Oreo and Ritz, in the European Union, Eastern Europe, the Middle East and Africa. UB's Southern European business is the largest biscuit manufacturer in Spain and Portugal with approximately 26% and 37% market share respectively. UB purchased the Southern European business from Nabisco Holdings in July 2000 and became the market leader in Portugal in 2004 with the acquisition of Triunfo Productos Alimentares S.A. In connection with the consummation of the Sale, UB has issued a notice of redemption in respect of the outstanding 10.625% Euro- denominated and 10.75% Sterling-denominated Senior Subordinated Notes due 2011 issued by United Biscuits Finance plc. UB has simultaneously defeased the Notes by depositing funds with the trustee for the Notes sufficient for the redemption of the Notes on the Redemption Date. By defeasing the Notes, UB is no longer obligated to comply with most of the covenants contained in the indenture governing the Notes. Redemption of the Notes will occur on Oct. 6, 2006. The aggregate redemption prices for the 10.625% Euro-denominated Notes and 10.75% Sterling-denominated Notes are EUR212.4 million and GBP182.3 million, respectively, which constitute the principal amount and interest payable on such Notes up to, but not including, the redemption date, and the call premium of 105.313% in the case of the Euro-denominated Notes and 105.375% in the case of the Sterling-denominated Notes. UB previously announced on July 11, 2006 its intent to defease and redeem the Notes. Headquartered in London, United Kingdom, United Biscuits -- http://www.unitedbiscuits.com/-- is the country's leading biscuit manufaturer and second largest snack maker. The company is a leading biscuit and snack maker in Spain, Portugal. UB's biscuit and snack cake brands include stalwarts BN, Carr's, Cream Crackers, Delacre, Jacob's, Krackawheet, and McVitie's Digestive Biscuits. Its nut and snack brands include KP Nuts, McCoy's, and Hula Hoops. * * * As reported in TCR-Europe on July 17, Fitch Ratings placed the ratings of U.K.-based United Biscuits on Rating Watch Positive, following the announcement of the sale of its Southern European business to Kraft Foods Inc and the stated intention to redeem UB's high-yield notes. The following ratings are affected: -- Regentrealm Limited Issuer Default rating: B- on RWP; -- Regentrealm Limited senior secured debt: BB-/RR1 on RWP; -- United Biscuits Finance PLC IDR: B- on RWP; and -- United Biscuits Finance PLC senior subordinated notes due 2011 B-/RR4 on RWP. In a TCR-Europe report on July 14, Moody's affirmed the B1 corporate family rating of United Biscuits Finance Plc with a stable outlook, following the announced transaction with Kraft Foods Inc. =========== R U S S I A =========== ALITET: Amur Court Commences Bankruptcy Supervision --------------------------------------------------- The Arbitration Court of Amur Region commenced bankruptcy supervision procedure on CJSC Alitet (TIN 2801092617). The case is docketed under Case No. A 04-639/06-4/12B. The Temporary Insolvency Manager is: A. Mazur Post User Box 74/7 680030 Khabarovsk Russia The Debtor can be reached at: CJSC Alitet Verkhneblagoveshenskoye Blagoveshensk Amur Region Russia ALMETYEVSK-AGRO-PROM-SNAB: Bankruptcy Hearing Slated for Oct. 5 --------------------------------------------------------------- The Arbitration Court of Tatarstan Republic will convene at 2:30 p.m. on Oct. 5 to hear the bankruptcy supervision procedure on OJSC Almetyevsk-Agro-Prom-Snab. The case is docketed under Case No. A65-10926/2006-SG4-21. The Temporary Insolvency Manager is: Y. Afanasyev Post User Box 128 GOS-1 Almetyevsk 423451 Tatarstan Republic Russia The Debtor can be reached at: OJSC Almetyevsk-Agro-Prom-Snab Tekhsnab Almetyevsk Tatarstan Republic Russia AMBER: Pskov Court Names N. Vereshak as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Pskov Region appointed Mr. N. Vereshak as Insolvency Manager for LLC Amber. He can be reached at: N. Vereshak Post User Box 169 Post Office Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A52-683/2006/4. The Debtor can be reached at: LLC Amber Zakharkino Ostrovskiy Region 181312 Pskov Region Russia ANASHINSKOYE: Krasnoyarsk Bankruptcy Hearing Slated for Oct. 26 --------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region will convene at 10:00 a.m. on Oct. 26 to hear the bankruptcy supervision procedure on CJSC Anashinskoye. The case is docketed under Case No. A33-10734/2006. The Temporary Insolvency Manager is: B. Stepanov Post User Box 28495 660020 Krasnoyarsk Region Russia The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC Anashinskoye Oktyabrskaya Str. 18 Anash Novoselovskiy Region 662433 Krasnoyarsk Region Russia ANKUR: Krasnodar Court Starts Bankruptcy Supervision ---------------------------------------------------- The Arbitration Court of Krasnodar Region commenced bankruptcy supervision procedure on OJSC Trading House Ankur. The case is docketed as under Case No. A-32-67376/2006/-37/23B. The Temporary Insolvency Manager is: Y. Archibasov Sovetskaya Str. 82 Staronizhesteblievskaya St Krasnoarmeyskiy Region 353840 Krasnodar Region Russia The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: OJSC Trading House Ankur Komsomolskaya Str. 95 Kurganinsk 352430 Krasnodar Region Russia ASTAKHANSKIY DISTILLERY: B. Govorov to Manage Assets ---------------------------------------------------- The Arbitration Court of Astrakhan Region appointed Mr. B. Govorov as Insolvency Manager for OJSC Astakhanskiy Distillery (TIN 3016026842). He can be reached at: B. Govorov Post User Box 81 Post Office 280 Avtozavodskaya Str. 5 115280 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A06-6460 b/3-11k/2005. The Debtor can be reached at: OJSC Astakhanskiy Distillery Energeticheskaya Str. 5 414032 Astrakhan Region Russia BELOVO-TORG-COAL: Court Names L. Frantseva as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Kemerovo Region appointed Ms. L. Frantseva as Insolvency Manager for CJSC Belovo-Torg-Coal. She can be reached at: L. Frantseva Lenina Pr. 5-8 650000 Kemerovo Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A27-10574/2006-4. The Arbitration Court of Kemerovo Region is located at: Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: CJSC Belovo-Torg-Coal Teleut Str. 1 Belovo Kemerovo Region Russia BELOZERSKIY FISHING: G. Pogosyan to Manage Insolvency Assets ------------------------------------------------------------ The Arbitration Court of Vologda Region appointed Mr. G. Pogosyan as Insolvency Manager for OJSC Belozerskiy Fishing Factory. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A13-4333/2006-25. The Arbitration Court of Vologda Region is located at: Hall 4 Gertsena Str. 1a Vologda Region Russia The Debtor can be reached at: OJSC Belozerskiy Fishing Factory Maeksa Belozerskiy Region Vologda Region Russia BREAD: Rostov Court Names G. Kolesnikov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Rostov Region appointed Mr. G. Kolesnikov as Insolvency Manager for LLC Bread. He can be reached at: G. Kolesnikov Lenina Str. 110 Kruchenaya Balka Salskiy Region 347618 Rostov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A53-3827/2006-S2-8. The Arbitration Court of Rostov Region is located at: Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: LLC Bread Komsomolskaya Str. 165 Orlovskiy Rostov Region Russia BRYANSK-PACKAGE: Court Names A. Terekhov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Bryansk Region appointed Mr. A. Terekhov as Insolvency Manager for OJSC Bryansk-Package. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A09-4723/06-28. The Arbitration Court of Bryansk Region is located at: Room 602 Trudovoy Per. 5 Bryansk Region Russia The Debtor can be reached at: OJSC Bryansk-Package Moskovskiy Proezd 4 Bryansk Region Russia CHERNOVSKIY WOOD: Court Names I. Babenko to Manage Assets --------------------------------------------------------- The Arbitration Court of St. Petersburg and the Leningrad Region appointed Mr. I. Babenko as Insolvency Manager for CJSC Chernovskiy Wood-Prom-Khoz. He can be reached at: I. Babenko Post User Box 6 194214 St-Petersburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-56101/2005. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Chernovskiy Wood-Prom-Khoz Chernovskoye Slantsevskiy Region Leningrad Region Russia CREDIT BANK: Fitch Changes Outlook to Positive & Keeps IDR at B- ---------------------------------------------------------------- Fitch Ratings changed Russia-based Credit Bank of Moscow's Outlooks on Issuer Default and National Long-term ratings to Positive from Stable. CBOM's ratings are affirmed at Issuer Default B-, National Long-term BB+, Short-term B, Individual D and Support 5. "Enhancement of profitability, as the bank expands into the new segments of SME and mortgage lending and new regions, coupled with planned increased diversification of funding could result in a rating upgrade for CBOM," Alexei Kechko, Associate Director in Fitch's Financial Institutions team disclosed. "Although not expected in the currently favorable environment, a liquidity crisis or significant asset quality deterioration could exert downward pressure on CBOM's ratings," Mr. Kechko added. CBOM's ratings reflect its improved but still potentially vulnerable liquidity and currently modest profitability, as well as certain weaknesses in the Russian operating environment. However, capitalization is adequate, customer concentration levels have fallen and the bank has made some progress in diversifying its funding base. CBOM was ranked the 57th-largest Russian bank by total assets at end-H106. Its core business lies in providing banking services to medium-sized trading companies and also retail customers in Moscow and the Moscow region. FACTORY BULAT: Court Names I. Zolotukhin as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Chelyabinsk Region appointed Mr. I. Zolotukhin as Insolvency Manager for OJSC Factory Bulat. He can be reached at: I. Zolotukhin Post User Box 103 Main Post Office Zlatoust 456200 Chelyabinsk Region The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-3273/2005-48-3. The Debtor can be reached at: OJSC Factory Bulat 3rd Internatsionala Square Zlatoust 456200 Chelyabinsk Region Russia GAZPROM OAO: Mulls Listing on Asian Exchanges --------------------------------------------- OAO Gazprom (RTS: GAZP) might list its shares on stock exchanges in Asia, RIA Novosti cites Pyotr Bakayev, head of the company's Department for Work on Financial Markets. "We do not have plans to obtain a listing on New York stock exchanges, but we are looking at several Asian exchanges," Mr. Bakayev told RIA Novosti. Mr. Bakayev added Gazprom will decide on the matter within a year, but declined to specify the target exchanges. Gazprom currently has American Depositary Receipts, which account for 10% of the company's charter capital. According to the Russian news and information agency, Gazprom's venture into other exchanges followed after Russia allowed foreigners to acquire shares starting December 2005. 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. INVESTMENT RESOURCE: M. Vasilega to Manage Insolvency Assets ------------------------------------------------------------ The Arbitration Court of Moscow Region appointed Mr. M. Vasilega as Insolvency Manager for CJSC Investment Resource (TIN 7730054019). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-29443/06-78-642 B. The Arbitration Court of Moscow Region is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Investment Resource Filevskiy Avenue 21 Moscow Region Russia ISETSK-AGRO: Court Names N. Chelapko to Manage Insolvency Assets ---------------------------------------------------------------- The Arbitration Court of Tyumen Region appointed Mr. N. Chelapko as Insolvency Manager for OJSC Isetsk-Agro-Prom-Khimiya. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-70-2896/3-2006. The Arbitration Court of Tyumen Region is located at: Khokhryakova Str. 77 627000 Tyumen Region Russia The Debtor can be reached at: OJSC Isetsk-Agro-Prom-Khimiya Stroiteley Str. 43 Isetskoye Tyumen Region Russia KOMSOMOLSKOYE: Rostov Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Rostov Region has commenced bankruptcy supervision procedure on CJSC Komsomolskoye. The case is docketed under Case No. A53-9009/06-S2-8. The Temporary Insolvency Manager is: S. Kononov Lermontovskaya Str. 83 344010 Rostov-na-Donu Russia The Debtor can be reached at: CJSC Komsomolskoye Komsomolskiy Morozovskiy Region Rostov Region Russia LENINGRADSKAYA-2: Krasnodar Court Starts Bankruptcy Supervision --------------------------------------------------------------- The Arbitration Court of Krasnodar Region commenced bankruptcy supervision procedure on OJSC Leningradskaya-2. The case is docketed under Case No. A-32-1946/2006-2/14-B. The Temporary Insolvency Manager is: A. Borisenko Yubileynaya Str. 51 353862 Primorsko-Akhtarsk Russia The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: OJSC Leningradskaya-2 Leningradskaya St. Krasnodar Region Russia LUKOIL OAO: Eyes 40 Petrol Stations in Macedonia in Four Years -------------------------------------------------------------- OAO Lukoil (RTS: LKOH) will open 40 petrol stations in Macedonia over the next four years, RIA Novosti says. Lukoil agreed to supply oil products to Macedonia under a memorandum of cooperation signed in June 2005. Lukoil acquired a 5,600 cubic meter-capacity oil storage facility in August 2006, which would receive oil products from the company's refineries in Bulgaria and Romania. Lukoil opened its first petrol station in Skopje, Macedonia on Sept. 8. About Lukoil Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX, RTS: LKOH) is the country's largest vertically integrated oil & gas company in terms of reserves, and one of the largest oil & gas companies in the world. In the first nine months of 2005, the group produced 1.92 million barrels of oil equivalent (boe) per day and in 2004 had refinery throughput of 44 million tons. Total SPE reserves in 2004 were just over 20 billion boe. The group's 2005 nine-month revenues were US$40.6 billion. * * * As reported in TCR-Europe on July 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Lukoil OAO to 'BB+' from 'BB'. S&P said the outlook is positive. As reported in the TCR-Europe on Jan. 26, Moody's Investors Service has changed the outlook of OAO Lukoil's Ba1 Corporate Family Rating and Ba2 Issuer Rating to positive from stable. Moody's last rating action on LUKOIL was on April 26, when the agency upgraded the company's ratings from Ba2/Ba3 to Ba1/Ba2. LYSVA-WOOD: Perm Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------------- The Arbitration Court of Perm Region has commenced bankruptcy supervision procedure on CJSC Lysva-Wood. The case is docketed under Case No. A50-11680/2006-B. The Temporary Insolvency Manager is: E. Shumilov Raskovoy Str. 1. 618540 Solikamsk Region Russia The Debtor can be reached at: CJSC Lysva-Wood Galyagina Str. 1 Kormovishe Lysvenskiy Region Perm Region Russia NOVNIKOLAEVSKIY AGRO-SERVICE: E. Savchenko to Manage Assets ----------------------------------------------------------- The Arbitration Court of Volgograd Region appointed Mr. E. Savchenko as Insolvency Manager for OJSC Novnikolaevskiy Agro- Service (TIN 3420000030). He can be reached at: E. Savchenko Post User Box 3195 400039 Volgograd Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-35488/05-s50. The Debtor can be reached at: OJSC Novnikolaevskiy Agro-Service Rabochaya Str. 239 Novonikolaevskiy Region Volgograd Region Russia NOVOLIPETSK STEEL: Board Okays Parameters of Upgrading Program -------------------------------------------------------------- The Board of Directors of Novolipetsk Steel has approved the key parameters of the second phase of the Technical Upgrading Program, covering the period from 2007 to 2011. The Program was developed in accordance with the company's sustainable growth strategy, which is aimed at maintaining the Group's position among the world's most efficient steel companies. Key strategic goals of the second phase of the Technical Upgrading Program are: 1. to increase crude steel production from 9 million tons per year up to 12.4 million tons per year. The Technical Upgrading Program foresees growth of crude steel production to 12.4 million tons per year (+40%) by 2011. The increase in crude steel production volumes will primarily be achieved by the construction of new blast furnace 7, with capacity of 3.4 million tons per year. NLMK is also planning to renovate three out of five blast furnaces and BOF (Basic Oxygen Furnace) Shops #1 and #2. The major investments in the segment are: -- blast furnace division -- US$0.9 billion; -- steelmaking division -- US$1 billion; and -- infrastructure and auxiliary facilities investments (over US$0.1 billion). 2. to develop iron ore and coking coal assets to achieve 100% self-sufficiency of the steelmaking segment in major raw materials, taking into account the projected increase in steel production volumes. Implementation of the second phase of the Technical Upgrading Program foresees the construction of an iron-ore pellet plant at Stoilensky GOK with production capacity of three million tons per year by 2009. It is planned to increase production of iron-ore concentrate in Stoilensky GOK from 12.5 million tons up to 15 million tons per year. According to the Technical Upgrading Program, 100% self- sufficiency in coking coal will be reached by 2009, while the annual production increases to 11 million tons by 2011. The major investments in the segment are: -- Stoilensky GOK - US$0.5 billion; -- Altai-koks - US$35 million; and -- Zhernovskoe-1 - US$0.5 billion. 3. to increase production of finished flat steel products from 5 million tons up to 9.5 million tons per year through the modernization of rolling facilities in Lipetsk and acquisition of new rolling assets. NLMK will increase production of finished flat steel products and balance its value chain through pursuing strategic acquisition opportunities with respect to high quality rolling facilities in the company's core export markets. NLMK plans to acquire rolling facilities with capacity of at least three million tons per year. In addition, NLMK will enhance its own production facilities. At NLMK's facilities in Lipetsk, the Technical Upgrading Program provides for substantial investments into the renovation of rolling plants, with both upgrading of existing and building new technological production units. as for the recently acquired rolling facilities, NLMK plans to modernize production of electrical steel at VIZ Stal facilities in Yekaterinburg as well as the production facilities of DanSteel. The total investments into modernization of existing rolling assets under second phase of the Technical Upgrading Program are US$0.9 billion. The major projects are: -- modernization of hot-rolling mill and construction of reversing mill in Lipetsk; -- modernization of electrical steel production; and -- DanSteel development program. 4. to enhance fuel and energy facilities in Lipetsk The second phase of the Technical Upgrading Program foresees an increase in capacity of the electricity generating facilities in Lipetsk. NLMK will generate 60% of its electricity requirements on site by 2011 compared to 37% in 2005. The 60% of generated electric power will be based on blast furnace and coke gas processing. The company also plans additional projects with respect to fuel and energy facilities. The total investments into modernization and enhancement of fuel and energy facilities are US$0.3 billion. Total investments in the second phase of the Technical Upgrading Program will amount to US$4.4 billion by 2011. The second phase of the Technical Upgrading Program is planned to be financed from cash flow from operating activities and existing cash funds. The estimated IRR for projects under the second phase of the Technical Upgrading Program is 18%. Vladimir Lisin, Chairman of the Board of Directors of NLMK, comments: "NLMK's sustainable growth strategy is oriented towards maximizing our key competitive advantage; low cost steel production platform in Lipetsk. The substantial increase in crude steel production in Lipetsk will be balanced by the development of raw materials assets and strategic acquisitions of high quality rolling facilities. The projected increase in the production of finished flat steel products will be based on rolling our own slabs with 100% self-sufficiency of raw materials. Along with our Technical Upgrading Program, enhancing the profitability of the Company remains our key objective. All our actions in the M&A area and development of production facilities will be directed to the improvement of NLMK's financial results." NLMK has completed the first phase of the Technical Upgrading Program covering the period from 2000 to 2005, committing total investments of US$1.3 billion. These principal objectives were accomplished: -- increase the efficiency of the production process and maintain low cost production structure. The cost of production per ton of slabs on a consolidated basis was US$163 in H1 2006; -- 10% growth of steel production volumes resulted in increasing NLMK's sales revenue and profitability; -- 30% growth of production in high value-added segment from 2001 to 2005; -- IMPROVEMENTS in quality. The whole NLMK's product portfolio has complied with requirements set forth in ISO 9000 (2000 edition) since 2003 as well as International Standard ISO/TU 16949:2002 since 2004; -- lessen environmental impact of company's operations. The reduction of atmospheric emissions from 2001 to 2005 accompanied by growing production volumes was 13.5%. About the Company Headquartered in the Lipetsk Region of the Russian Federation, Novolipetsk Steel (LSE: NLMK), a Russian open joint-stock company, was established as a state owned enterprise in 1931 and was privatized in 1993, as part of the Russian privatization program. NLMK is the fourth largest Russian steel producer in terms of tonnage. It operates an integrated plant with complete metallurgical cycle with a total crude steel output of 9.1 million tons (in 2004). About 73% of NLMK's output is exported, mainly to South East Asia (representing 21% of exports), the European Union (29%) and North America (23%). * * * As reported in TCR-Europe on July 14, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia- based steelmaker OJSC Novolipetsk Steel to 'BB+' from 'BB'. S&P said the outlook is stable. The Russia national scale rating was also raised to 'ruAA+' from 'ruAA'. "The upgrade reflects the company's continuing strong performance and conservative financial policies," said Standard & Poor's credit analyst Tatiana Kordyukova. NOVOLIPETSK STEEL: Earns US$944 Million for First Half 2006 ----------------------------------------------------------- OJSC Novolipetsk Steel released its financial results for the second quarter and first half ended June 30, 2006. For the second quarter of 2006, Novolipetsk Steel posted US$398 million in net profit on US$1.48 billion in revenues, compared with US$546 million in net profit on US$1.12 billion in revenues for the same period in 2005. For the first half of 2006, Novolipetsk Steel posted US$944 million in net profit on US$2.6 billion in revenues, compared with US$838 million in net profit on US$2.38 billion in revenues for the same period in 2005. The Board of Directors recommended dividend payment in respect of the first six months of 2006 of RUR1.5 per ordinary share. The dividend payment is subject for the approval of shareholders meeting on Sept. 29. The Annual General Meeting held on June 6 has approved final dividends for 2005 of RUR2.0 per ordinary share. Including earlier paid interim dividend of RUR1.0 per ordinary share for the first six months of 2005, the total dividend for 2005 is RUR3.0 per ordinary share. As of June 30, 2006, Novolipetsk Steel US$7.37 billion in total assets, US$1.40 billion in total liabilities and US$5.97 billion in total equity. About the Company Headquartered in the Lipetsk Region of the Russian Federation, Novolipetsk Steel (LSE: NLMK), a Russian open joint-stock company, was established as a state owned enterprise in 1931 and was privatized in 1993, as part of the Russian privatization program. NLMK is the fourth largest Russian steel producer in terms of tonnage. It operates an integrated plant with complete metallurgical cycle with a total crude steel output of 9.1 million tons (in 2004). About 73% of NLMK's output is exported, mainly to South East Asia (representing 21% of exports), the European Union (29%) and North America (23%). * * * As reported in TCR-Europe on July 14, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia- based steelmaker OJSC Novolipetsk Steel to 'BB+' from 'BB'. The outlook is stable. The Russia national scale rating was also raised to 'ruAA+' from 'ruAA'. "The upgrade reflects the company's continuing strong performance and conservative financial policies," said Standard & Poor's credit analyst Tatiana Kordyukova. PETROPAVLOVSKOYE: Court Starts Bankruptcy Supervision ----------------------------------------------------- The Arbitration Court of Krasnoyarsk Region has commenced bankruptcy supervision procedure on CJSC Petropavlovskoye. The case is docketed under Case No. A33-9799/2006. The Temporary Insolvency Manager is: A. Kozhematov Post User Box 20647. 660017 Krasnoyarsk Region Russia The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC Petropavlovskoye Petropavlovka Balakhtinskiy Region 662346 Krasnoyarsk Region Russia PRIVOLZHSKOYE: Court Names N. Senchenko as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Mariy El Republic appointed Mr. N. Senchenko as Insolvency Manager for OJSC Privolzhskoye. He can be reached at: N. Senchenko Zavodskaya Str. 1 Privolzhskiy Volzhskiy Region 425000 Mariy El Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-38-7819-11/9-2006. The Debtor can be reached at: OJSC Privolzhskoye Zavodskaya Str. 1 Privolzhskiy Volzhskiy Region 425000 Mariy El Republic Russia PSYGANSU: Court Names V. Kibishev as Insolvency Manager ------------------------------------------------------- The Arbitration Court of Kabardino Balkariya Republic appointed Mr. V. Kibishev as Insolvency Manager for OJSC Tinned Food Factory Psygansu. He can be reached at: V. Kibishev Baksanskoye Shosse 3 Chegem Kabardino Balkariya Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A20-547/2006. The Debtor can be reached at: OJSC Tinned Food Factory Psygansu Psygansu Urvanskiy Region Kabardino Balkariya Republic Russia REINFORCED-CONCRETE PRODUCTS: V. Emelyanov to Manage Assets ----------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. V. Emelyanov as Insolvency Manager for LLC Combine of Reinforced- Concrete Products. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-6811/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: LLC Combine of Reinforced-Concrete Products Krasnopresnenskaya Str. 1 Krasnoyarsk Region Russia ROSBANK: Fitch Assigns Issuer Default Rating at B+ -------------------------------------------------- Fitch Ratings assigned Russia's Rosbank a local currency Issuer Default rating of B+ with a Positive Outlook. Rosbank's other ratings are foreign currency IDR B+/Positive Outlook, National Long-term A-/Positive Outlook, Short-term B, Support 4 and Individual D. At the same time, Fitch has assigned to the Series 23 upcoming issue of fixed-rate RUB notes of Dali Capital PLC's ("Dali") an expected ratings of Long-term B+ and Recovery rating of RR4. The notes are to finance an unsecured loan made by Barclays Bank PLC to Rosbank. Dali will only pay noteholders principal and interest received by Barclays from Rosbank. The final rating is contingent on receipt of final documents conforming materially to information already received. The issue is structured such that Dali, a special-purpose vehicle domiciled in Ireland, issues RUB denominated notes payable in US$, the proceeds from which are converted into RUB by authorized FX exchange agents, Barclays and Credit Suisse Securities (Europe) Limited, and placed with Barclays for the subsequent loan to Rosbank. The Bank of New York acts as trustee and as issuing and paying for Dali. Interest and principal amounts on the loan from Barclays to Rosbank are calculated and paid in RUB, converted to US$ using the same foreign exchange agents and placed with Dali for the payments to the noteholders. Noteholders are therefore subject to the risk of a depreciation of the RUB against the US$. Rosbank has an option to repay the loan early, on annual interest period dates; however, this can be done only at a certain premium for noteholders. The loan agreement between Barclays Bank and Rosbank contains a negative pledge clause. It also has numerous other covenants, which among others, limit mergers, acquisitions and disposals by Rosbank, as well as transactions with affiliated parties, and require Rosbank to maintain a minimum consolidated Basel total capital ratio of 8%. The negative pledge clause allows for a degree of securitization by Rosbank, and Fitch comments that the nature and extent of any over-collateralization would be assessed by the agency for any potential impact on unsecured creditors. Rosbank was founded in 1992 and ranks among the top 10 banks in Russia by total assets. About 80% of its shares are ultimately controlled by Interros, one of Russia's largest financial industrial groups, with interests in the metals, power-machine building, agricultural and insurance sectors. Another 10% stake is owned by Societe Generale (IDR AA/Outlook Stable), which also signed a cooperation agreement with Interros potentially allowing it to increase the stake to 20%. RZHAKSA-AGRO-PROM-KHIMIYA: S. Agapov to Manage Assets ----------------------------------------------------- The Arbitration Court of Tambov Region appointed Mr. S. Agapov as Insolvency Manager for OJSC Rzhaksa-Agro-Prom-Khimiya (TIN 6816003494). He can be reached at: S. Agapov Proletarskaya Str. 337 392033 Tambov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A64-1727/06-18. The Debtor can be reached at: OJSC Rzhaksa-Agro-Prom-Khimiya Rzhaksa Rzhaksinskiy Region Tambov Region Russia SEVERO-LYUBINSKIY: Omsk Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Omsk Region has commenced bankruptcy supervision procedure on CJSC Breeding Factory Severo-Lyubinskiy (TIN 5519000026). The case is docketed under Case No. A46-8991/2006. The Temporary Insolvency Manager is: A. Grabovetskiy Marshala Zhukova Str. 76 644010 Omsk Region Russia The Debtor can be reached at: CJSC Breeding Factory Severo-Lyubinskiy Severo-Lyubinskiy Lyubinskiy Region 646177 Omsk Region Russia SOCHINSKIY FACTORY: Court Names R. Shubin as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Krasnodar Region appointed Mr. R. Shubin as Insolvency Manager for CJSC Sochinskiy Factory Of Building Materials. He can be reached at: The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Court will convene at 2:30 p.m. on June 18, 2007. The case is docketed under Case No. A32- 15710/2005-38/233-B. The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: CJSC Sochinskiy Factory Of Building Materials Krasnodonskaya Str. 77 Sochi 354055 Krasnodar Region Russia TMK OAO: Creates Joint Venture with Hydril Company LP ----------------------------------------------------- OAO TMK and Hydril Company LP (United States) have created a joint company called TMK-Hydril CJSC. The charter capital of the new company will be divided equally between the two participants in the joint venture. As part of the project, the companies plan to acquire, build and use equipment, technologies and infrastructure on the basis of the production site of Pipe Production Unit No. 1 (TPTs-1) of the Volzhsky Pipe Plant, a subsidiary of TMK. The joint venture will engage in the cutting of Hydril's premium threaded connections on casing pipes used in oil and gas drilling and production (OCTG, Oil Country Tubular Goods). Casing pipe will be provided by TMK mills. It will be the first company in Russia and the CIS to provide oil & gas sector with tubular goods of such quality. TMK-Hydril CJSC will produce the entire line of premium connections offered by Hydril. The planned production capacity of the joint venture will be up to 38,000 metric tons of OCTG pipes with threaded connections per year. It will meet the requirements of Russian and the CIS companies for premium OCTG products. The agreement between TMK and Hydril also stipulates the possibility of installing additional capacity. Production is scheduled to begin in 2007. Premium threaded connections for OCTG pipes (casing, pump and compressor, and drilling) differ from American Petroleum Institute standard threading in their high level of gas tightness and reliability. Premium connections are used in drilling environments where extreme pressure, temperature, corrosion and mechanical stresses are encountered, as well as in environmentally sensitive drilling. These harsh drilling conditions are typical for deep-formation, deepwater and horizontal or extended reach wells. The average growth rate of the consumption of such pipes is 10%, which is due to the increasing complexity of oil and gas extraction in the world. Currently 100% of the casing pipes used in offshore drilling, as well as more than 80% of casing pipes being used in gas wells, have Premium class threaded connections. About TMK Headquartered in Moscow, Russia, OAO TMK -- http://www.tmkgroup.ru/eng/-- manufactures the entire product range of existing pipe products, which are used in the oil-and- gas industry, the chemical and petrochemical industries, the energy and machine-building industries, construction and the municipal housing economy, shipbuilding, aviation, space and rocket equipment, and agriculture. TMK has production facilities located in Russia and Romania which unite the four leading enterprises in the Russian pipe industry. * * * As reported in TCR-Europe on Sept. 11, Moody's Investors Service assigned a B1 corporate family rating to TMK and a (P)B2 senior unsecured rating to the loan participation notes issued by TMK Capital S.A., guaranteed by the operating subsidiaries of TMK. Moody's said the outlook on both ratings is positive. On Sept. 9, the TCR-Europe reported that Standard & Poor's Ratings Services assigned a 'B+' long-term corporate credit rating to OAO TMK. Standard & Poor's also assigned its 'B+' preliminary senior unsecured debt rating to TMK's proposed Eurobond, which will be issued by special-purpose vehicle TMK Capital S.A. TRANS-COAL-INVEST: Court Names P. Tumbasov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Moscow Region appointed for LLC Trans- Coal-Invest (TIN 7704146464). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-15474/06-71-95B. The Arbitration Court of Moscow Region is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: LLC Trans-Coal-Invest Dovatora Str. 1/28. 119048 Moscow Region Russia TRANSNEFT OAO: Drafting Documents for October Eurobond Issue ------------------------------------------------------------ OAO Transneft (RTS: TRNF) is preparing pertinent documents for its first Eurobond issue in October, RIA Novosti says. "We'll start drafting documentation for the debut Eurobond issue in October," Yevgeny Astafyev, Transneft Vice-President, told RIA Novosti. Mr. Astafyev said Transneft would use the proceeds from the issue to fund the first stage of building the East Siberia- Pacific Ocean oil pipeline -- a project that is expected to come on-stream in the second half of 2008. As reported in TCR-Europe on Aug. 23, Transneft and the Savings Bank of Russia signed an agreement involving a six-year Framework for a Revolving Credit Facility with an upper limit of RUR65 billion. A contract was also signed to launch a closed- end credit facility with a RUR20 billion ceiling. About the Company Headquartered in Moscow, Russia, OAO Transneft -- http://www.transneft.ru/-- operates one of the largest networks of oil pipelines in the world. The company moves crude oil through more than 30,000 miles of pipeline stretching across Eastern Europe and Asia. Transneft operates a transportation network consisting of more than 30,000 miles of pipeline, about 330 pump stations, and 934 tankers capable of storing more than 13 million cu. meters of petroleum product. The company transports about 93% of the oil produced in Russia. * * * Transneft carries 'BB' rating from Fitch and BB+ local and foreign issuer credit ratings from Standard & Poor's. UFIMSKIY: Bashkortostan Bankruptcy Hearing Slated for Oct. 26 ------------------------------------------------------------- The Arbitration Court of Bashkortostan Republic will convene at 10:00 a.m. on Oct. 26 to hear the bankruptcy supervision procedure commenced against OJSC Ufimskiy Combine of Building Materials. The case was docketed under Case No. A07-39422/ 2005-PAV. The Temporary Insolvency Manager is: V. Osipov Post User Box 114 Kazan-87 Russia The Arbitration Court of Bashkortostan Republic is located at: Room 123 Oktyabrskoy Revolyutsii Str. 63 Ufa Russia The Debtor can be reached at: OJSC Ufimskiy Combine Of Building Materials Ufa Bashkortostan Republic Russia WEST-ENERGO: Court Names A. Zamaraev as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Mr. A. Zamaraev as Insolvency Manager for CJSC Company West-Energo. He can be reached at: A. Zamaraev Zoologicheskaya Str. 9 620149 Ekaterinburg Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-11228/2006-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Company West-Energo Zavodskaya Str. 20 Kamensk-Uralskiy 623400 Sverdlovsk Region Russia YUKOS OIL: Court to Resume Hearing on Tax Claims on Sept. 28 ------------------------------------------------------------ The Moscow Arbitration Court has postponed until Sept. 28 hearings relating to an additional 2004 tax claim against OAO Yukos Oil Co. due to lack of documents, RIA Novosti reports. On March 17, the Federal Tax Service claimed that Yukos owed RUR108 billion (US$3.99 billion) in back taxes for 2004. On June 14, a court ruling found the 2004 claim legitimate and declared that the claim should be included in the list of creditors' claims against Yukos. According to the Russian news and information service, the debt and interest penalty have been charged from Yukos in an extra- judicial manner, while over RUR42 billion (US$1.57 billion) in fines will be charged via the arbitration court. As reported in TCR-Europe on Aug. 15, the Arbitration Appeal Court in Moscow reduced the tax regulator's claims against Yukos from RUR353.8 billion (US$13.2 billion) to RUR$311.8 billion (US$11.6 billion). Up to US$16.2 billion in claims have been asserted against the company by 20 creditors, among others: Yuganskneftegas US$4.07 billion Federal Tax Service US$11.6 billion OAO Rosneft Oil Co. US$482 million Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for $9.35 billion, as payment for $27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than $12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a $1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a $1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. The expected court ruling paves the way for the company's liquidation and auction. YUKOS OIL: Court Drops Yugansk's US$8.5 Billion Damages Suit ------------------------------------------------------------ The Moscow Arbitration Court rejected a lawsuit filed by Yuganskneftegaz claiming US$8.5 billion in damages against its former parent, OAO Yukos Oil Co., according to published reports. Yugansk, the former core production unit of Yukos, was bought by state-owned Rosneft in December 2004 after the Russian government seized the asset as payment for more than US$30 billion in tax arrears for 2000-2003. Yukos, declared bankrupt on Aug. 1, retains a stake in Yugansk. Yugansk filed the suit in March 2005 claiming at least RUR304 billion (US$11.4 billion) in damages, including RUR163 billion (US$6.1 billion) for losses suffered as a result of Yukos' lower transfer pricing schemes in oil deals in 1999-2003, RIA Novosti says. A court later raised the amount to RUR226 billion (US$8.46 billion). Yugansk was seeking the remainder of a RUB141 billion (US$5.28 billion) sum to compensate for losses arising from the tax settlement, the Russian news agency relates. Eduard Rebgun, Yukos' bankruptcy receiver, insisted that all claims should be considered within bankruptcy procedures following the court's bankruptcy ruling against the company. Up to US$16.2 billion in claims have been asserted against the company by 20 creditors, among others: Yuganskneftegas US$4.07 billion Federal Tax Service US$11.6 billion OAO Rosneft Oil Co. US$482 million About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. The expected court ruling paves the way for the company's liquidation and auction. ========= S P A I N ========= UNITED BISCUITS: Completes Sale of European Unit to Kraft Foods --------------------------------------------------------------- United Biscuits has completed the sale of its Southern European business to Kraft Foods Inc. for an enterprise value of GBP575 million. The Sale also returns to Kraft the rights to all Nabisco trademarks, including Oreo and Ritz, in the European Union, Eastern Europe, the Middle East and Africa. UB's Southern European business is the largest biscuit manufacturer in Spain and Portugal with approximately 26% and 37% market share respectively. UB purchased the Southern European business from Nabisco Holdings in July 2000 and became the market leader in Portugal in 2004 with the acquisition of Triunfo Productos Alimentares S.A. In connection with the consummation of the Sale, UB has issued a notice of redemption in respect of the outstanding 10.625% Euro- denominated and 10.75% Sterling-denominated Senior Subordinated Notes due 2011 issued by United Biscuits Finance plc. UB has simultaneously defeased the Notes by depositing funds with the trustee for the Notes sufficient for the redemption of the Notes on the Redemption Date. By defeasing the Notes, UB is no longer obligated to comply with most of the covenants contained in the indenture governing the Notes. Redemption of the Notes will occur on Oct. 6, 2006. The aggregate redemption prices for the 10.625% Euro-denominated Notes and 10.75% Sterling-denominated Notes are EUR212.4 million and GBP182.3 million, respectively, which constitute the principal amount and interest payable on such Notes up to, but not including, the redemption date, and the call premium of 105.313% in the case of the Euro-denominated Notes and 105.375% in the case of the Sterling-denominated Notes. UB previously announced on July 11, 2006 its intent to defease and redeem the Notes. Headquartered in London, United Kingdom, United Biscuits -- http://www.unitedbiscuits.com/-- is the country's leading biscuit manufaturer and second largest snack maker. The company is a leading biscuit and snack maker in Spain, Portugal. UB's biscuit and snack cake brands include stalwarts BN, Carr's, Cream Crackers, Delacre, Jacob's, Krackawheet, and McVitie's Digestive Biscuits. Its nut and snack brands include KP Nuts, McCoy's, and Hula Hoops. * * * As reported in TCR-Europe on July 17, Fitch Ratings placed the ratings of U.K.-based United Biscuits on Rating Watch Positive, following the announcement of the sale of its Southern European business to Kraft Foods Inc and the stated intention to redeem UB's high-yield notes. The following ratings are affected: -- Regentrealm Limited Issuer Default rating: B- on RWP; -- Regentrealm Limited senior secured debt: BB-/RR1 on RWP; -- United Biscuits Finance PLC IDR: B- on RWP; and -- United Biscuits Finance PLC senior subordinated notes due 2011 B-/RR4 on RWP. In a TCR-Europe report on July 14, Moody's affirmed the B1 corporate family rating of United Biscuits Finance Plc with a stable outlook, following the announced transaction with Kraft Foods Inc. =========== S W E D E N =========== DOLE FOOD: Weak Performance Cues Moody's to Review Ratings ---------------------------------------------------------- Moody's Investors Service placed the long-term ratings of Dole Food Company Inc. and the B1 corporate family rating of its wholly owned subsidiary Solvest Ltd. under review for possible downgrade. The review reflects Dole's weaker than expected operating performance and the deterioration in its debt protection measures. It also reflects the uncertainty surrounding the longer-term impact that structural changes in the key EU banana market will have on Dole's operating performance. Moody's review will focus on: -- the degree to which Dole's European banana business is being impacted as the company adjusts to the new EU banana regulatory structure, including how long it may take for the company to adjust to this new framework as well as the possible impact on its financial performance; -- efforts the company is making to address continuing weakness in its fresh flower business; and -- near term actions the company can take to strengthen debt protection measures to levels appropriate to its current ratings. Ratings placed under review for possible downgrade are: * Dole Food Company, Inc. -- Corporate family rating at B1; -- US$225 million senior secured 7-year term loan at Ba3; -- US$50 million senior secured 7-year pre-funded letter of credit facility at Ba3; -- Senior unsecured notes at B3; -- Senior unsecured shelf at (P)Caa1; -- Senior subordinated shelf at (P)Caa2; and -- Junior subordinated shelf at (P)Caa2. * Solvest, Ltd. -- US$750 million senior secured 7-year term loan at Ba3; and -- US$50 million senior secured 7-year pre-funded letter of credit facility at Ba3. Dole Food Company, Inc., headquartered in Westlake Village, California, has revenues of US$5.8 billion. ============= U K R A I N E ============= ALFA BANK: Moody's Assigns B1 Rating to UAH150-Mln Bond Issue ------------------------------------------------------------- Moody's Investors Service assigned a B1 global local currency long-term senior unsecured debt rating as well as an Aa2.ua long-term National Scale Rating to the local currency- (hryvnia) denominated bonds to be issued by Alfa Bank Ukraine, which will represent a senior unsecured claim on the bank. The planned issue size is UAH150 million (approximately US$30 million) with a final maturity of five years. The outlook for the global rating is stable, while the NSR carries no specific outlook. According to Moody's, the B1 global scale local currency rating reflects global default and loss expectation and is not constrained by any foreign currency transfer risk, while the Aa2.ua NSR reflects the standing of the bank's credit quality relative to its domestic peers. Moody's B1 rating for the bonds is based on ABU's fundamental credit quality and factors in the bank's ability to fulfill both its long-term and short-term obligations. The latter obligations include those associated with the put option that the bondholders will, according to the terms of the issue, be able to exercise in order to sell the bonds back to the bank on the first, second, third and fourth anniversaries of the issue. Moody's notes that if the bank's credit quality were to deteriorate at these times, exercise of the put options might exert additional pressure on its financial condition. Headquartered in Kiev, Ukraine, ABU reported total IFRS assets of US$422 million as at year-end 2005 and net loss of US$1.9 for the year 2005. AGROMIR: Zaporizhya Court Names Vasil Ishenko as Liquidator ----------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Vasil Ishenko as Liquidator/Insolvency Manager for Agricultural LLC Agromir (code EDRPOU 31400736). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 14. The case is docketed under Case No. 25/282. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: Agricultural LLC Agromir Radyanska Str. 12 Trudove Melitopol District 72354 Zaporizhya Region Ukraine BITOVIK: Sumi Court Names Andrij Savochka as Insolvency Manager --------------------------------------------------------------- The Economic Court of Sumi Region appointed Andrij Savochka as Liquidator/Insolvency Manager for LLC Bitovik (code EDRPOU 03062023). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 27. The case is docketed under Case No. 8/377-06. The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: LLC Bitovik Pushkin Str. 1 Krolevets 41300 Sumi Region Ukraine DRUZHBA: Sumi Court Names Yevgen Chuprun as Insolvency Manager -------------------------------------------------------------- The Economic Court of Sumi Region appointed Yevgen Chuprun as Liquidator/Insolvency Manager for LLC Agrofirm Druzhba (code EDRPOU 03778312). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 7. The case is docketed under Case No. 6/47-06. The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: LLC Agrofirm Druzhba Sosnivka Gluhiv District 41822 Sumi Region Ukraine GLUHIV BREAD: Sumi Court Starts Bankruptcy Supervision ------------------------------------------------------- The Economic Court of Sumi Region commenced bankruptcy supervision procedure on OJSC Gluhiv Bread Receiving Enterprise (code EDRPOU 00955905) on Aug. 14. The case is docketed under Case No. 12/97. The Temporary Insolvency Manager is: Andrij Sisoyev Korotchenko Str. 37/20 40030 Sumi Region Ukraine The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: OJSC Gluhiv Bread Receiving Enterprise Industrialna Str. 4 Gluhiv 42830 Sumi Region Ukraine INDUSTRIALBANK: Merger Prompts Moody's to Assign Low-B Ratings -------------------------------------------------------------- Moody's Investors Service assigned these ratings to Industrialbank (Ukraine): -- B3 long-term and Not-Prime short-term foreign currency deposit ratings; -- B3 long-term and Not-Prime short-term local currency deposit ratings; -- E+ financial strength rating; and -- Baa2.ua long-term National Scale Rating. The outlooks on all global scale ratings are stable, while the bank's NSR carries no specific outlook. According to Moody's, the global scale deposit ratings reflect global default and loss expectation, while the Baa2.ua NSR reflects the bank's average credit standing relative to its domestic peers. According to its management, the bank is beneficially controlled by several individuals who presently own a significant stake in Zaporizhstal, the fourth-largest Ukrainian steelmaker in terms of output. Apart from their interests in Zaporizhstal, they operate some other businesses and are also engaged in M&A activities in the Ukrainian banking sector. In 2004 the bank's owners acquired a majority stake in Kremenchug-based MT-Bank and in 2005 merged it with Industrialbank in a move to create a larger and potentially more viable institution. Quite recently they also gained control of Express-bank (house bank for the Ukrainian Railways), which could also be potentially merged with Industrialbank in the foreseeable future. While through these acquisitions the shareholders are making efforts to transform the bank from a captive institution primarily servicing the accounts of Zaporizhstal into a bank with a wider franchise, Industrialbank's B3/NP local and foreign currency deposit ratings currently do not factor in any shareholder support in case of need. While such support cannot be ruled out, its predictability is fairly low and its extent could be rather limited. Hence the bank's deposit ratings are based on its intrinsic strength and are unconstrained by the Ukrainian B2 country ceiling for foreign currency bank deposits. The bank's E+ FSR, which is a measure of its intrinsic financial strength, is constrained by its very limited although strengthening regional franchise, associated with a high level of balance sheet concentrations, especially on the funding side, exposing the bank to higher than average liquidity risk. Post- merger risks associated with running a considerably expanded institution also constrain the FSR. At the same time, the FSR is underpinned by the bank's good profitability although this may not be sustainable at its historical levels, and by its limited history of credit losses. Although the merger with MT-bank resulted in an elevated level of problem exposures, especially those stemming from agricultural lending, impaired loans were generously provisioned for. The bank's balance sheet had grown dramatically by the end of 2005, mostly inorganically, due to merger with MT-Bank. The combined loan portfolio and deposit base became more diverse both geographically and sectorally, but still remains fairly restricted compared to banks with less limited franchises. On the liabilities side Industrialbank was to a large degree funded by two groups of customers related to the bank, including Zaporizhstal, which was the single largest depositor. The ratings reflect the expectation that the bank's conversion into an institution with a more nationwide franchise would not be a straightforward process. For some time the bank operated predominantly in Zaporizhzhia, its hometown, where it lent to the trading sector. Therefore, making inroads into other markets and sectors beyond its area of expertise may be fraught with additional risks. The merger with MT-Bank paved the way for operation in other territories and provided access to customers from a broader range of industries, but in future only organic growth will show how successful the bank will be in generating new business and developing its franchise, while keeping its risks under control. The bank has displayed fairly robust, although volatile, profitability over the last few years. However, its earning power -- especially with regard to fee and commission income -- remains heavily reliant on a number of related-party customers. Also, Moody's expects the bank's profitability to come under some pressure in 2006 following the merger with MT-Bank and significant expansion of the branch network, with an accompanying increase in the burden of operating costs. Headquartered in Zaporizhzhia, administrative center of Zaporizhzhia region in Eastern Ukraine, Industrialbank reported total IFRS assets of UAH1,776 million (US$351.7 million) as at year-end 2005. INTEGRATION: Kyiv Court Starts Bankruptcy Supervision ----------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC Trade House Integration (code EDRPOU 31240005) on July 6. The case is docketed under Case No. 43/467. The Temporary Insolvency Manager is: Oleg Nechayenko Kahovska Str. 60 Kyiv Region Ukraine The Debtor can be reached at: LLC Trade House Integration Vasilkivska Str. 28 03022 Kyiv Region Ukraine LMK: Volinska Court Starts Bankruptcy Supervision Procedure ----------------------------------------------------------- The Economic Court of Volinska Region commenced bankruptcy supervision procedure on LLC LMK (code EDRPOU 31670770). The case is docketed under Case No. 1/65-B. The Economic Court of Volinska Region is located at: Voli Avenue 54-a 43010 Lutsk Volinska Region Ukraine The Debtor can be reached at: LLC LMK Lidavska Str. 2 43000 Lutsk Volinska Region Ukraine PASAR: Donetsk Court Names Oleksij Mernik as Insolvency Manager --------------------------------------------------------------- The Economic Court of Donetsk Region appointed Oleksij Mernik as Liquidator/Insolvency Manager for LLC Pasar (code EDRPOU 30962544). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 9. The case is docketed under Case No. 27/117 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Pasar Sechenov Str. 31/10 83023 Donetsk Region Ukraine TECHNICS: Lviv Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------ Creditors of LLC Scientific-Production Company Technics (code EDRPOU 25238174) have until Sept. 22 to submit written proofs of claim to: Nadiya Slidzyona Novoznesenska Str. 103 Lviv Region Ukraine The Economic Court of Lviv Region commenced bankruptcy supervision procedure on the company on July 6. The case is docketed under Case No. 6/105-8/198. The Economic Court of Lviv Region is located at: Lichakivska Str. 81 79010 Lviv Region Ukraine The Debtor can be reached at: LLC Scientific-Production Company Technics Lvivska Str. 2 Veliki Mosti Sokalskij District 80074 Lviv Region Ukraine =========================== U N I T E D K I N G D O M =========================== A MOMENT: Creditors Confirm Voluntary Liquidation ------------------------------------------------- Creditors of A Moment In Time Limited confirmed on July 7 the company's voluntary liquidation and the appointment of I. P. Sykes of Begbies Traynor as Liquidator. The company can be reached at: A Moment In Time Limited 10 Wentworth Close Worthing West Sussex BN13 2LQ United Kingdom Tel: 01903 260035 AMBIENCE FURNITURE: Brings In Liquidator from Sharma & Co. ---------------------------------------------------------- Gagen Dulari Sharma of Sharma & Co. was appointed Liquidator of Ambience Furniture Limited on July 4 for the creditors' voluntary winding-up procedure. The company can be reached at: Ambience Furniture Limited 30 Witton Street Stourbridge West Midlands DY8 3YE United Kingdom Tel: 01384 236 222 ARMSTRONG FOUR: Names Paul John Webb as Administrator ----------------------------------------------------- Paul John Webb of Mayfields Insolvency Practitioners was named administrator of Armstrong Four Limited (Company Number 04882447) on Aug. 23. The administrator can be reached at: Mayfields Insolvency Practitioners Church Steps House Queensway Halesowen West Midlands B63 4AB United Kingdom Tel: 0121 550 0011 Armstrong Four Limited can be reached at: 12 York Place Leeds West Yorkshire LS1 2DS United Kingdom ATLANTIC GLAZING: Appoints Joint Liquidators from Harrisons ----------------------------------------------------------- P. R. Boyle and J. C. Sallabank of Harrisons were appointed Joint Liquidators of Atlantic Glazing Solutions Limited on July 11 for the creditors' voluntary winding-up procedure. The company can be reached at: Atlantic Glazing Solutions Limited 3 Barton Cottages Newton Tracey Barnstaple Devon EX313PL United Kingdom Tel: 01271 379 379 CAPITAL STAFFING: Taps Leonard Curtis as Joint Administrators ------------------------------------------------------------- N. A. Bennett and A. Poxon of Leonard Curtis were appointed joint administrators of Capital Staffing Services Limited (Company Number 04055663) on Aug. 31. The administrators can be reached at: Leonard Curtis & Co One Great Cumberland Place Marble Arch London W1H 7LW United Kingdom Tel: 020 7535 7000 Fax: 020 7723 6059 E-mail: solutions@leonardcurtis.co.uk Web site: http://www.leonardcurtis.co.uk Headquartered in London, United Kingdom, Capital Staffing Services Limited is an employment agency. DECOR CENTRE: Taps M. D. Hardy to Liquidate Assets -------------------------------------------------- M. D. Hardy of Poppleton & Appleby was appointed Liquidator of D,cor Centre Plus Limited on July 13 for the creditors' voluntary winding-up procedure. The company can be reached at: Decor Centre Plus Limited Sparkbrook Street Sparkbrook Street Industrial Estate Coventry West Midlands CV1 5LB United Kingdom Tel: 024 7622 4398 ENTERGY UK: Proof of Claim Deadline Slated for Oct. 12 ------------------------------------------------------ Entergy U.K. Enterprises Limited was placed into Members' Voluntary Liquidation on Aug. 31. Peter Spratt was appointed Liquidator. The company is expected to be able to pay its known liabilities in full. Creditors have until Oct. 12 to send their proofs of debt in writing to: Peter Spratt PricewaterCoopers Advisory & Restructuring LLC 300 Madison Avenue New York NY 10017 United States Creditors are requested to provide details or produce such documentary or other evidence deemed necessary by the Liquidator. The Liquidator intends to declare a first and final distribution to creditors of 100 pence in the pound within the period of four months from the last date. The Liquidator has the right to make any distributions, which they may think fit, without further regard to creditors' claims not proved within the specified period. EXEL RECRUITMENT: Creditors' Meeting Slated for September 18 ------------------------------------------------------------ Creditors of Exel Recruitment Limited will meet at 11:00 a.m. on Sept. 18 to consider the Administrators' proposals. The meeting will be held at: The P&A Partnership 93 Queen Street Sheffield S1 1WF United Kingdom The joint administrators can be reached at: Christopher Michael White and Derek Leslie Woolley Joint Administrators The P&A Partnership 93 Queen Street Sheffield S1 1WF United Kingdom Tel: (0114) 275 5033 Fax: (0114) 276 8556 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. Its clients include multinational PLCs, SMEs, financial institutions, accountants, solicitors and business advisors. EXSPECT LIMITED: Appoints Leonard Curtis as Liquidator ------------------------------------------------------ N. A. Bennett of Leonard Curtis was appointed liquidator of Exspect Limited on June 28 for the purposes of creditors' voluntary liquidation proceedings. The company can be reached at: Exspect Limited Suite 305 Grosvenor House Hollinswood Road Central Park Telford Shropshire TF2 9TW United Kingdom Tel: 01952 216166 FACTORY FABRICS: Claims Filing Period Ends September 23 ------------------------------------------------------- Creditors of Factory Fabrics LLP have until Sept. 23 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 Liquidator Jeremy Berman at: Berley 76 New Cavendish Street London W1G 9TB United Kingdom The company can be reached at: Factory Fabrics LLP 12 Market Square Bicester Oxfordshire OX26 6AD United Kingdom Tel: 01869 244 877 FLOWERS LV: Hires C. H. I. Moore to Liquidate Assets ---------------------------------------------------- C. H. I. Moore of K.J. Watkin & Co. was appointed Liquidator of Flowers LV Supplies Limited on July 7 on for the creditors' voluntary winding-up procedure. The company can be reached at: Flowers LV Supplies Limited Dunstall Hill Trading Estate Gorsebrook Road Wolverhampton West Midlands WV6 0PJ United Kingdom Tel: 01902 424147 FORD MOTOR: UAW Agrees to Voluntary, System-Wide Buyouts -------------------------------------------------------- The United Auto Workers has reached agreement on voluntary, system-wide buyouts for more than 75,000 UAW-represented hourly workers at Ford Motor Company. "Once again, our members are stepping up to make hard choices under difficult circumstances," said UAW President Ron Gettelfinger. "Now, it's Ford Motor Company's responsibility to lead this company in a positive direction -- which means using the skills, experience and dedication to quality that UAW members demonstrate every day in order to deliver quality vehicles to customers." A variety of buyout and incentive packages will be available, depending on length of service and other eligibility factors. All active UAW Ford hourly workers will be eligible for at least one of the programs, which will be offered on a one-time basis only due to current conditions in the industry, including Ford's continued loss of market share. The buyout packages include retirement incentives, early retirement, pre-retirement leave, incentives for workers to terminate their employment at Ford and special educational opportunities. UAW Ford workers currently assigned to Automotive Components Holding facilities will have the opportunity to flow back to any job openings created at Ford as a result of the buyout packages. No UAW Ford hourly worker will have his or her contractual rights compromised as a result of these buyout packages, and no worker will be involuntarily separated from Ford Motor Company, the union disclosed. A summary of the terms and conditions of the packages is available for free at http://researcharchives.com/t/s?11ad The buyouts are part of Ford's move to accelerate its "Way Forward" turnaround plan initiated early this year. The Company is set to announce details of the accelerated Plan today. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE: F) -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With 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. FROG NETWORKING: A. J. Clark Leads Liquidation Procedure -------------------------------------------------------- A. J. Clark of Carter Clark was appointed Liquidator of Frog Networking Solutions Limited on July 5 for the creditors' voluntary winding-up procedure. The company can be reached at: Frog Networking Solutions Limited Unit 1 Lion Works Station Road Whittlesford Cambridge Cambridgeshire CB2 4NL United Kingdom Tel: 0870 444 3994 Web: http://www.frog.co.uk/ FUTON DESIGN: Taps Cresswall Associates to Administer Assets ------------------------------------------------------------ Gordon Craig and Daniel Paul Hennessy of Cresswall Associates Limited were appointed joint administrators of Futon Design Limited (Company Number 3191788) on Aug. 25. The administrators can be reached at: Cresswall Associates Limited West Lancashire Investment Centre Maple View Whitemoss Business Park Skelmersdale Lancashire WN8 9TG United Kingdom Tel: 01695 712683 Headquartered in Suffolk, United Kingdom, Futon Design Limited manufactures furniture. FUTUREMEDIA PLC: Auditors Express Going Concern Doubt ----------------------------------------------------- BDO Stoy Hayward LLP expressed substantial doubt about Futuremedia PLC's ability to continue as a going concern after auditing the company's financial statements for the fiscal years ended April 30, 2006 and 2005. The auditing firm pointed to the company's recurring losses from operations and net capital deficit. At April 30, 2006, the company's balance sheet showed US$2 million in stockholders' deficit, compared with a US$1.6 million deficit at April 30, 2005. For the 12-month period ended April 2006, the company posted US$12.3 million of net losses on US$6 million of gross profit, compared with US$3.9 million of net losses on US$1.2 million of profits for the same period in 2005. Financial Resources Since its initial public offering, the Company has incurred net losses and experienced negative cash flows from operating activities. Net losses since its IPO have resulted in an accumulated deficit of GBP28,481,000 as of April 30, 2006. "At Aug. 30, 2006, the Company's cash resources and available borrowings are insufficient to fund the current level of operations for the next twelve months," the company disclosed in a regulatory filing with the U.S. Securities and Exchange Commission. Management is engaged in various activities to secure the additional funding required by the company to meet its working capital needs for the next twelve months, including: -- cost reductions on the integration of its recent acquisitions; -- the securing of bank overdraft facilities; -- generation of cash from future trading operations; and -- the provision of further equity or debt funding. Headquartered in West Sussex, United Kingdom, Futuremedia PLC develops on-line branded learning business. Branded learning is the application of eLearning to marketing communications through online learning communities, academies and portals. GENESIS INTEGRATED: Appoints Administrators from Begbies Traynor ---------------------------------------------------------------- D. R. Acland and S. J. Williams of Begbies Traynor were appointed joint administrators of Genesis Integrated Security Limited (Company Number 04401432) on Aug. 29. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Accrington, United Kingdom, Genesis Integrated Security Limited -- http://www.genesis-sys.com/-- provides a complete range of safety and protection solutions to homes, businesses, local authorities and a wealth of medium and high- risk environments across the U.K. GLOBAL 20: Creditors' Meeting Slated for September 22 ----------------------------------------------------- Creditors of Global 20 PLC (Company Number 3098150) will meet at 3:00 p.m. on Sept. 22 at: Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ 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. 21 at: Carl Stuart Jackson and Nigel Ian Fox Joint Administrators Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ United Kingdom Tel: 023 8064 6464 Fax: 023 8064 6666 E-mail: southampton@tenongroup.com Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. GLOSCAN LIMITED: Creditors Confirm Liquidator's Appointment ----------------------------------------------------------- Creditors of Gloscan Limited confirmed on July 12 the appointment of Neil Francis Hickling of Smith & Williamson Limited as the company's Liquidator. The company can be reached at: Gloscan Limited Unit 10 Forest Vale Road Forest Vale Industrial Estate Cinderford Gloucestershire GL142PH United Kingdom Tel: 01594 825 888 Web: http://www.gloscan.co.uk/ GUARDIAN DOORS: Creditors' Meeting Slated for September 21 ---------------------------------------------------------- Creditors of Guardian Doors Limited (Company Number 05198324) will meet at 10:30 a.m. on Sept. 21 at: KPMG LLP 37 Hills Road Cambridge Cambridgeshire CB2 1XL 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: Allan Watson Graham and Richard James Philpott Joint Administrators KPMG LLP 37 Hills Road Cambridge Cambridgeshire CB2 1XL United Kingdom Tel: (01223) 366692 Fax: (01223) 460701 KPMG -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the U.K. providing audit, tax and advisory services. HARRINGTONS OF WILTSHIRE: Taps Laurence Russel as Administrator --------------------------------------------------------------- Laurence Russell of Albert Goodman was appointed administrator of Harringtons of Wiltshire Limited (Company Number 04617956) on Aug. 31. The administrator can be reached at: Albert Goodman Mary Street House Mary Street Taunton Somerset TA1 3NW United Kingdom Tel: 01823 286096 Fax: 01823 257319 Headquartered in Wiltshire, United Kingdom, Harringtons of Wiltshire Limited supplies food. HEIZER LIMITED: Nominates Liquidator from Mayfields Insolvency -------------------------------------------------------------- Paul John Webb of Mayfields Insolvency Practitioners was nominated Liquidator of Heizer (U.K.) Limited on July 4 for the creditors' voluntary winding-up proceeding. The company can be reached at: Heizer (U.K.) Limited 10 Mountain Ash Road Clayhanger Walsall WS8 7QS United Kingdom Tel: 01922 478 777 IGO DIRECT: Nominates Andreas Georgiou Kakouris as Liquidator ------------------------------------------------------------- Andreas Georgiou Kakouris was nominated Liquidator of Igo Direct Limited on July 14 for the creditors' voluntary winding-up proceeding. The company can be reached at: Igo Direct Limited Blake Industrial Park Brue Avenue Bridgwater Somerset TA6 5LT United Kingdom Tel: 01278 426 226 INTERIOR BUILDING: Creditors Ratify Voluntary Liquidation --------------------------------------------------------- Creditors of Interior Building Systems Limited ratified on May 27 the resolutions for voluntary liquidation together with the appointment of Neil Brackenbury and Michael E G Saville of Begbies Traynor as Joint Liquidators of the company. The company can be reached at: Interior Building Systems Limited Lund House Farm Walshford Wetherby LS22 5HX United Kingdom Tel: 01423 359 213 J & A BUILDING: Brings In Liquidator from Tenon Recovery -------------------------------------------------------- Duncan R. Beat of Tenon Recovery was appointed liquidator of J & A Building and Construction Limited on June 26 for the purposes of creditors voluntary winding-up procedure. The company can be reached at J & A Building & Construction Limited Mountnessing Road Billericay Essex CM12 0TS United Kingdom Tel: 01277 624 538 KANA SOFTWARE: Forms Financial Services Vertical Sales Team ----------------------------------------------------------- KANA Software Inc. disclosed a series of organizational changes in its global sales and service operations, which will enable the company to accelerate its revenue growth and meet aggressive sales targets worldwide. In order to build upon its tremendous growth and customer adoption within the financial services market, KANA has established a global financial services vertical sales team. Daniel Turano, a seasoned veteran, joins KANA as the newly appointed Vice President of Global Financial Services and will work to build a sales team that is focused specifically on financial services accounts worldwide. As part of Mr. Turano's expanding financial services group, Lindsay McEwan has joined KANA as the regional sales manager for financial services in the United Kingdom, bringing ten years of direct sales and management experience within the investment banking, retail and capital markets vertical along with senior relationships with large financial institutions. "As a strategic alliance partner, we are very pleased and excited about KANA's new financial services initiative. With KANA's increased focus and investment in Financial Services, our joint relationship will further accelerate the delivery of market leading solutions to Financial Services organizations," said Mark Greene, Vice President, IBM Financial Services Sector. Enhancing Worldwide Sales Team Bill Rowe, who joined the organization in January, will expand his current role with a promotion to Senior Vice President of Worldwide Sales and Service. Mr. Rowe has been responsible for KANA's sales and professional services operations in the Americas region and will now expand that role to include Europe and Asia. Alf Saggese, Senior Vice President of Sales & Service for International Operations, will report into Mr. Rowe. Eric Ward will move into the role of Western Region Sales Director, with responsibility for expanding sales and services as well as continuing to build strong customer relationships. Edwin Kuhn will join KANA as the Eastern Region Sales Director. Mr. Kuhn has nineteen years of sales experience, most recently having served as the Identity Management (IDM) Sales Manager at Oracle Corporation, receiving recognition as the top IDM sales representative of the year. Both the Western and Eastern Region Sales Directors will report to Bill Rowe. In order to fully capitalize on the tremendous market opportunity stemming from rapid adoption of eService channels, KANA is expanding its worldwide sales organization and by the end of 2006 the Company will have doubled its sales force over the year ended 2005. As a result of this significant organizational expansion, KANA will have the necessary resources in place to ensure excellent customer service, pursue new transactions as well as focus on cultivating cross-sell and up- sell opportunities within its extensive install base. With more than 600 customers, including approximately half of the world's 100 largest companies, KANA is in an exceptional position to fuel its continued financial growth and success through this sales approach. "Elevating and expanding a worldwide sales team is an exciting initiative for any company. KANA has seen a substantial increase in demand for its multi-channel customer service solutions, especially in the financial services industry. This expansion is not only exciting but necessary for us to stay ahead of market demand as well as continue to give our customers the high levels of service and support they have come to expect," said Bill Rowe, Senior Vice President of Worldwide Sales and Service, KANA. Going Concern Doubt As reported in the Troubled Company Reporter on July 12, 2006, KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statement for the year ending Dec. 31, 2005. Burr Pilger pointed to the Company's recurring losses from operations, net capital deficiency, negative cash flow from operations and accumulated deficit. About KANA KANA Software, Inc., provides multi-channel customer service software applications. KANA's integrated solutions allow companies to deliver service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. The Company's target market is the Global 2000 with a focus on large enterprises with high volumes of customer interactions, such as banks, telecommunications companies, high- tech manufacturers, healthcare organizations and government agencies. The Company is headquartered in Menlo Park, California, with offices in Japan, Hong Kong, Korea and throughout the United States and Europe, including Austria, Germany, the Netherlands and the United Kingdom. KANA SOFTWARE: Posts US$383,000 Net Loss for Second Quarter 2006 ---------------------------------------------------------------- KANA Software Inc. reported a net loss in accordance with generally accepted accounting principles of US$383,000, for the quarter ended June 30, 2006, versus a GAAP net loss of US$1.9 million for the quarter ended June 30, 2005. The Company reported a GAAP net loss of US$1.5 million for the six months ended June 30, 2006, versus a GAAP net loss of US$15.7 million for the six months ended June 30, 2005. KANA's total revenues for the quarter ended June 30, 2006 were US$14.5 million, including license revenues of US$5.9 million. These revenue numbers represent increases of 36% in total revenue and 150% in license revenue over the second quarter 2005. This is KANA's fifth consecutive quarter of total revenue growth. KANA's total revenues for the six months ended June 30, 2006 were US$26 million, including license revenues of US$8.8 million. These revenue numbers represent increases of 25% and 125%, respectively, from the total and license revenue numbers reported for the six months ended June 30, 2005. "We are very pleased with our second quarter results, as they reflect the significant strides KANA has made over the last year to streamline the organization and focus on its core competencies," said Michael Fields, chief executive officer of KANA. "KANA's consistent revenue growth over the last five quarters is indicative of the overall market demand for multi- channel customer service software. More importantly, though, it's a testament to the depth and scalability of our solutions, the quality and commitment of our people and the mission and focus of our company. As a result, KANA is well positioned for profitability and continued success and leadership in the multi- channel customer service market." Based on the demand the Company is seeing and anticipating for its multi-channel customer service solutions with new and existing customers and integrator partners, KANA expects that total revenues for 2006 will range between US$56 million and US$58 million. This represents a growth of 30% to 34% percent over 2005 total revenues. Going Concern Doubt As reported in the Troubled Company Reporter on July 12, 2006, KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statement for the year ending Dec. 31, 2005. Burr Pilger pointed to the Company's recurring losses from operations, net capital deficiency, negative cash flow from operations and accumulated deficit. About KANA KANA Software, Inc., provides multi-channel customer service software applications. KANA's integrated solutions allow companies to deliver service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. The Company's target market is the Global 2000 with a focus on large enterprises with high volumes of customer interactions, such as banks, telecommunications companies, high- tech manufacturers, healthcare organizations and government agencies. The Company is headquartered in Menlo Park, California, with offices in Japan, Hong Kong, Korea and throughout the United States and Europe, including Austria, Germany, the Netherlands and the United Kingdom. KANA SOFTWARE: Files Registration Statement for Stock Sale ---------------------------------------------------------- KANA Software Inc. filed with the U.S. Securities and Exchange Commission on Sept 8, a registration statement on Form S-1 relating to the offer and sale of up to 5,277,665 outstanding shares of the common stock and 2,393,233 shares of common stock that may be issued on the exercise of outstanding warrants by: * NightWatch Capital Partners, LP; * NightWatch Capital Partners II, LP; and * RHP Master Fund, Ltd. including an additional 478,647 shares of common stock of which may be issued on the exercise of the warrants that may be issued upon the occurrence of an event of dilution resulting from stock splits, stock dividends or similar transactions or change in the exercise price by the selling stockholders. KANA will not receive any of the proceeds from the sales by the Selling Stockholders of the shares covered by the September 8 prospectus. The Company will pay the expenses related to the registration of the Shares covered by this prospectus. The Selling Stockholders will pay commissions and selling expenses, if any, incurred by them. As of Aug. 31, 2006, there were 34,517,637 shares of common stock outstanding and issued, excluding shares exercisable under warrants that KANA has issued. The Shares offered in the prospectus, represents 22.2% of the total outstanding and issued shares of the Company's common stock as of Aug. 31, 2006, excluding shares exercisable under warrants that the Company has issued. A full-text copy of the prospectus is available for free at http://researcharchives.com/t/s?11a0 Going Concern Doubt As reported in the Troubled Company Reporter on July 12, 2006, KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statement for the year ending Dec. 31, 2005. Burr Pilger pointed to the Company's recurring losses from operations, net capital deficiency, negative cash flow from operations and accumulated deficit. About KANA KANA Software, Inc., provides multi-channel customer service software applications. KANA's integrated solutions allow companies to deliver service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. The Company's target market is the Global 2000 with a focus on large enterprises with high volumes of customer interactions, such as banks, telecommunications companies, high- tech manufacturers, healthcare organizations and government agencies. The Company is headquartered in Menlo Park, California, with offices in Japan, Hong Kong, Korea and throughout the United States and Europe, including Austria, Germany, the Netherlands and the United Kingdom. KEYCHAIN LIMITED: Taps Lloyd Biscoe to Liquidate Assets ------------------------------------------------------- Lloyd Biscoe and Jamie Taylor of Begbies Traynor was appointed Liquidator of Keychain Limited on July 7 for the creditors' voluntary winding-up proceeding. The company can be reached at: Keychain Limited 1 Delancey Street London NW1 7NL United Kingdom Tel: 020 7419 4646 KINDRACE LIMITED: Appoints Liquidators from Harrisons ----------------------------------------------------- P. R. Boyle and J. C. Sallabank of Harrisons were appointed liquidators of Kindrace Limited on June 26 for the purposes of creditors voluntary winding-up proceedings. The company can be reached at: Kindrace Limited Addison Road Port Talbot West Glamorgan SA12 6HZ United Kingdom Tel: 01639 898 946 LABOUR FORCE: Gagen Dulari Sharma Leads Liquidation Procedure ------------------------------------------------------------- Gagen Dulari Sharma of Sharma & Co. was appointed Liquidator of Labour Force Services Limited on June 29 for the creditors' voluntary winding-up proceeding. The company can be reached at: Labour Force Services Limited 533 Moseley Road Birmingham B12 9BU United Kingdom Tel: 0121 440 4408 LEAFORD CONSTRUCTION: Names Anthony David Kent Liquidator --------------------------------------------------------- Anthony David Kent of Maidment Judd was appointed Liquidator of Leaford Construction Limited on July 12 for the creditors' voluntary winding-up proceeding. The company can be reached at: Leaford Construction Limited 91 Leaford Crescent Watford WD245JQ United Kingdom Tel: 01923 254 901 LEIGH ELECTRICAL: Creditors' Meeting Slated for September 21 ------------------------------------------------------------ Creditors of Leigh Electrical Controls Limited (Company Number 2154783) will meet at 11:00 a.m. on Sept. 21 at: Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ 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: Carl Stuart Jackson and Nigel Ian Fox Joint Administrators Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ United Kingdom Tel: 023 8064 6464 Fax: 023 8064 6666 E-mail: southampton@tenongroup.com Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. LET'S HAVE IT: Creditors' Meeting Slated for September 29 --------------------------------------------------------- Creditors of Let's Have It Limited (Company Number 03846103) will meet at 12:00 noon on Sept. 29 at: DTE Leonard Curtis DTE House Hollins Mount Hollins Lane Bury BL9 8AT United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at 12:00 noon on Sept. 28 at: J M Titley and A Poxon Joint Administrators DTE Leonard Curtis DTE House Hollins Mount Bury BL9 8AT United Kingdom Tel: 0161 767 1200 Fax: 0161 767 1201 DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. M F TOOLS: Brings In Liquidators from Dains ------------------------------------------- M. F. P. Smith and N. J. Hawksley of Dains were appointed liquidators of M F Tools Limited on June 23 for the purposes of creditors' voluntary liquidation. The company can be reached at: M F Tools Limited Unit V Aven Industrial Park Tickhill Road Maltby Rotherham South Yorkshire S66 7QR United Kingdom Tel: 01709 818 579 MADISONS DELI: Appoints H. J. Sorsky to Liquidate Assets -------------------------------------------------------- H. J. Sorsky of SPW Poppleton & Appleby was appointed Liquidator of Madisons Deli & Salt Beef Bar Ltd. on July 5 for the creditors' voluntary winding-up procedure. The company can be reached at: Madisons Deli & Salt Beef Bar Ltd. Buckingham Parade The Broadway Stanmore Middlesex HA7 4EB United Kingdom Tel: 020 8954 9998 METAFOR LIMITED: Taps Tony Mitchell to Liquidate Assets ------------------------------------------------------- Tony Mitchell of Cranfield Recovery Limited was appointed liquidator of Metafor Limited on June 26 for the purposes of the creditors voluntary winding-up proceedings. The company can be reached at: Metafor Limited 17 The Square Kenilworth Warwickshire CV8 1EF United Kingdom Tel: 01603 821 084 MIDLAND BUILDING: Creditors Confirm Voluntary Liquidation --------------------------------------------------------- Creditors of Midland Building Restoration Services Limited confirmed on June 29 the resolutions for voluntary liquidation and the appointment of Martin Williamson of DS Insolvency Services Ltd. as the company's liquidator. The company can be reached at: Midland Building Restoration Services Limited Unit 19 Horton Court Hortonwood 50 Telford Shropshire TF1 7GY United Kingdom Tel: 01952 677 612 NURSERY RESTAURANT: Joint Liquidators Take Over Operations ---------------------------------------------------------- Bernard Hoffman and Ian Douglas Yerrill of Gerald Edelman Business Recovery were appointed Joint Liquidators of The Nursery Restaurant Limited on July 5 for the creditors' voluntary winding-up procedure. The company can be reached at: The Nursery Restaurant Limited Nursery Restaurant Dunn Street Bredhurst Gillingham Kent ME7 3ND United Kingdom Tel: 01634 360 588 OAKMACE SYSTEMS: Nominates C. M. Iacovides as Liquidator -------------------------------------------------------- C. M. Iacovides of Jeffreys Henry Jacobs was nominated Liquidator of Oakmace Systems Ltd. on June 30 for the creditors' voluntary winding-up procedure. The company can be reached at: Oakmace Systems Ltd. Aimes Green Farm Aimes Green Waltham Abbey Essex EN9 2AU United Kingdom Tel: 020 8886 3672 OPTIMUM PERSONNEL: Taps Begbies Traynor to Liquidate Assets ----------------------------------------------------------- Paul Finnity and Peter A. Blair of Begbies Traynor were appointed liquidators of Optimum Personnel Limited on June 23 for the purposes of creditors' voluntary winding-up proceedings. The company can be reached at: Optimum Personnel Limited Guild Street Burton On Trent Staffordshire DE14 1NA United Kingdom Tel: 01283 547 600 ORGANIC EVOLUTION: Hires Joint Liquidators from Baker Tilly ----------------------------------------------------------- Andrew White and Susan Agnes Maund of Baker Tilly were appointed Joint Liquidators of Organic Evolution Limited on July 11 for the creditors' voluntary winding-up procedure. The company can be reached at: Organic Evolution Limited 112 Malling Street Lewes East Sussex BN7 2RJ United Kingdom Tel: 01273 897 361 P & R MARKETING: Creditors Confirm Liquidator's Appointment ----------------------------------------------------------- Creditors of P & R Marketing Limited confirmed on July 7 the appointment of Andrew James Nichols of Redman Nichols as the company's Liquidator. The company can be reached at: P & R Marketing Limited Windsor Court 3 La Route Du Mont Mado St. John Jersey JE3 4DN United Kingdom Tel: 01534 861 710 PHOENIX TAPES: Calls In Liquidator from Elwell Watchorn ------------------------------------------------------- Paul Anthony Saxton of Elwell Watchorn & Saxton LLP was appointed Liquidator of Phoenix Tapes Limited on July 13 for the creditors' voluntary winding-up procedure. The company can be reached at: Phoenix Tapes Limited 113 Tower Drive Neath Hill Milton Keynes MK146JX United Kingdom Tel: 01908 667 085 PREMIER FOODS: Terminates United Biscuits' Acquisition Plan ----------------------------------------------------------- Premier Foods Plc disclosed that discussions regarding its potential acquisition of the U.K. and Ireland biscuits and snacks businesses of United Biscuits have terminated. As previously reported in TCR-Europe on Sept. 12, Premier Foods confirmed press speculation that it is evaluating making an offer to United Biscuits' current owners to acquire the U.K. and Ireland biscuits and snacks business of United Biscuits. The company continues to consider acquisitions to be an important part of its overall strategy and evaluates potential acquisition opportunities according to its strict set of acquisition criteria. Headquartered in Birmingham, England, Premier Foods -- http://www.premierfoods.co.uk/-- manufactures Ambrosia custard and rice pudding, Branston pickle, Hartley's jams and marmalade and Sarsons vinegar. At Dec. 31, 2005, Premier Foods PLC's balance sheet showed GBP858.4 million in total assets and GBP876.4 in total liabilities, resulting in an GBP18 million stockholders' deficit. PREMIER FOODS: Repays GBP450-Million Bridge Facility in Full ------------------------------------------------------------ Premier Foods plc disclosed that following the closing of the Rights Issue in connection with the acquisition of the U.K. and Irish businesses of Campbell Soup Company from Campbell Soup Company, the bridge facility of GBP450 million has been repaid in full. The bridge facility was provided by Merrill Lynch International and ABN AMRO Bank N.V. in order to facilitate completion of the Acquisition on Aug. 15, following shareholder approval of the Acquisition and before the Rights Issue closed. As previously reported in TCR-Europe on Sept. 12, Premier Foods received valid acceptances in respect of 242,378,218 New Ordinary Shares, representing approximately 97.79% of the total number of New Ordinary Shares offered to Shareholders pursuant to the fully underwritten Rights Issue disclosed by the Company on July 12. A total of 247,848,157 New Ordinary Shares were offered to Shareholders in the Rights Issue, which closed at 11.00 a.m. on Sept. 7. Merrill Lynch International acted as sole global co-ordinator, sole bookrunner, joint underwriter and joint broker to the Rights Issue. Hoare Govett Limited acted as joint underwriter and joint broker to the Rights Issue. It is expected that definitive share certificates in respect of New Ordinary Shares in certificated form will be dispatched to shareholders by Sept. 15. Headquartered in Birmingham, United Kingdom, Premier Foods -- http://www.premierfoods.co.uk/-- manufactures Ambrosia custard and rice pudding, Branston pickle, Hartley's jams and marmalade and Sarsons vinegar. At Dec. 31, 2005, Premier Foods PLC's balance sheet showed GBP858.4 million in total assets and GBP876.4 in total liabilities, resulting in an GBP18 million stockholders' deficit. PROTEC MOTOR: Brings In Joint Administrators from F A Simms ----------------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss of F A Simms & Partners PLC were appointed joint administrators of Protec Motor Care Limited (Company Number 5137927) on Aug. 25. The administrators can be reached at: F A Simms & Partners PLC Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP ited Kingdom Tel: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com Headquartered in Milton Keynes, United Kingdom, Protec Motor Care Limited maintains and repairs motors. QUIDDINGTON REVELL: Creditors Confirms Liquidator's Appointment --------------------------------------------------------------- Creditors of Quiddington Revell Limited confirmed on July 5 the appointment of Anthony Harry Hyams of Marriotts LLP as the company's Liquidator. The company can be reached at: Quiddington Revell Limited Signet House 41-49 Farringdon Road London EC1M3JP United Kingdom Tel: 020 7831 6400 Web: http://www.quiddingtonrevell.co.uk/ RAPHAEL EXECUTIVE: Names Louise Donna Baxter Liquidator ------------------------------------------------------- Louise Donna Baxter of Begbies Traynor was appointed Liquidator of Raphael Executive Chauffeuring Limited on July 7 for the creditors' voluntary winding-up proceeding. The company can be reached at: Raphael Executive Chauffeuring Limited 11-17 Fowler Road Hainault Business Park Ilford Essex IG6 3UJ United Kingdom Tel: 020 8501 4411 S P BEATON: Passes Resolution for Voluntary Liquidation ------------------------------------------------------- S P Beaton Plumbing & Heating Services Limited passed on July 5 a resolution placing the company into creditors' voluntary liquidation. The company can be reached at: S P Beaton Plumbing & Heating Services Limited 67 Manor House Road Glastonbury Somerset BA6 9DG United Kingdom Tel: 01458 443 024 SAMSONITE CORP: Posts US$6-Mln Net Loss in Second Quarter 2006 -------------------------------------------------------------- Samsonite Corp. reported revenues for the six months ended July 31, 2006, of US$498.5 million compared to revenues of US$468.9 million during the same six-month period in the prior year. Operating income for the first six months of the year was US$33.1 million compared to US$40.2 million during the prior year period. Operating income for the first six months of the year was affected by charges of US$4.9 million for the write-off of deferred offering costs related to a postponed secondary stock offering and US$4.4 million for operational restructuring activities and associated asset impairment. Loss to common stockholders before the cumulative effect of an accounting change for the first six months of the year was US$6.4 million, or US$0.03 per share, which compares to net income of US$2.6 million, or US$0.01 per share, during the prior year period. Net income (loss) to common stockholders included charges of US$7.8 million in the current year period and US$7.3 million in the prior year period for preferred stock dividends. For the second quarter of fiscal year 2007, revenues were US$257.5 million, operating income was US$13.9 million and net loss to common stockholders was US$6.0 million or US$0.03 per common share. These results compare to revenues of US$236.5 million, operating income of US$18.0 million and net loss to common stockholders of US$1.3 million, or a loss of US$0.01 per share, for the second quarter of the prior year. Adjusted EBITDA (earnings before interest expense, taxes, depreciation and amortization adjusted for preferred stock dividends, certain items of other income and expense, minority interests, stock offering costs, restructuring charges, asset impairment charges, stock-based compensation expense, ERP project expenses, and to include realized currency hedge gains and losses), for the first six months of the current year was US$59.9 million versus US$55.7 million for the same period in the prior year. Included in the prior year results was US$3.2 million of revenue and Adjusted EBITDA from the sale of an apparel trademark for the U.S. market. Adjusted EBITDA was US$30.7 million for the second quarter compared to US$26.6 million for the second quarter of the prior year. Chief Executive Officer, Marcello Bottoli, stated: "I'm very pleased with the Company's progress on its major initiatives. Sales growth during the quarter was a robust 8.5% on a constant currency basis with solid progress in each major region. During the second quarter, the Company also acquired controlling interests in three companies: we entered into a majority-owned joint venture with our Thailand distributor; we acquired a majority interest in the operations of our Australian distributor; and in the U.S. we acquired a majority interest in Lambertson Truex, a premier luxury handbag and shoe designer label. These investments mark continued progress in the implementation of our long-term business plan." Richard Wiley, Chief Financial Officer, commented: "The Company's strategy of streamlining its operations while achieving top line growth is resulting in increased Adjusted EBITDA. Driven by price increases and lower fixed manufacturing and direct product cost, second quarter gross profit margins improved 140 basis points over the prior year to 50.2% and second quarter Adjusted EBITDA increased to US$30.7 million, or 15.3% over the prior year quarter. The improvement in gross margins has been achieved well ahead of our long-term gross margin target of 50%. The Company's working capital efficiency and capital structure also continue to improve. In the last twelve months, average net working capital efficiency improved 330 basis points over the prior year second quarter to 15.7% of sales and the Company repurchased and retired US$10.0 million in Senior Subordinated Notes during the quarter." About the Company Samsonite Corporation (OTCBB: SAMC.OB) - http://www.samsonite.com/-- -- designs, manufactures and distributes luggage, casual bags, business cases and travel related products throughout the world. The Company also licenses its brand names and is involved with the design and sale of apparel. * * * Moody's Investors Service placed the long-term ratings of Samsonite Corporation, under review for possible upgrade. The review was triggered by the sustained improvement in the company's operating performance and credit metrics, which has been largely driven by: -- management's strategy to drive profitable growth through geographic expansion, new product development, and brand building, -- ongoing cost reduction initiatives, and -- improved cash flow generation as a result of better efficiencies and working capital management. SAMSONITE CORP: Moody's Places Low-B Ratings Under Review --------------------------------------------------------- Moody's Investors Service placed the long-term ratings of Samsonite Corp., under review for possible upgrade. The review was triggered by the sustained improvement in the company's operating performance and credit metrics, which has been largely driven by: -- management's strategy to drive profitable growth through geographic expansion, new product development, and brand building, -- ongoing cost reduction initiatives, and -- improved cash flow generation as a result of better efficiencies and working capital management. The review for upgrade will focus on: -- the sustainability of Samsonite's success under the operating and financial plan; -- the impact of recent growth initiatives on overall earnings and cash flow stability; and -- management's future financial policy as it relates to debt reduction, acquisitions, and shareholder initiatives, including the completion of the potential US$300 million common stock offering in exchange for its existing preferred shares. Ratings placed on review for possible upgrade are: * Samsonite Corporation -- B1 corporate family rating; -- B1 on the senior unsecured notes; and -- B3 on the 8.875% subordinated notes. Samsonite manufactures, markets and distributes luggage and travel-related products. The company's owned and licensed brands, including Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren, Lacoste and Timberland, are sold globally through external retailers and 284 company-owned stores. Net sales for the twelve-month period ended April 30, 2006 were US$976 million. Executive offices are located in London, England. SECURE WINDOW: Creditors Confirm Liquidators' Appointment --------------------------------------------------------- Creditors of Secure Window & Door Systems Limited confirmed on July 4 the appointment of Nigel Price and Mark Bowen of Moore Stephens LLP as the company's Joint Liquidators. The company can be reached at: Secure Window & Door Systems Limited Unit 1 Hayseech Road Halesowen West Midlands B63 3PD United Kingdom Tel: 0121 585 9797 SOUTHERN PACIFIC: Fitch Affirms BB Ratings on Class E Tranches -------------------------------------------------------------- Fitch Ratings upgraded 13 tranches of the Southern Pacific Securities and the Southern Pacific Financing series of non- conforming residential mortgage transactions issued by Southern Pacific Mortgage Limited including detachable coupons. At the same time, Fitch affirmed 59 other tranches. Fitch has remodeled all the transactions using its U.K. residential mortgage default and cash flow models. The SPS deals featuring upgraded tranches are those issued from the earlier vintages of 2002 through to mid-2003 (SPS D through SPS G), which have experienced a healthy growth in credit enhancement levels. The switch to pro rata amortization initially slowed the growth but the high prepayment rates have had a positive impact on de- leveraging the deals and building levels of CE. Also, SPF 04-A, a transaction that consists of fewer loans to borrowers who have demonstrated adverse credit in the past, has also had its mezzanine and junior notes upgraded. With the exception of SPF 04-A and SPF 05-B whose portfolios are made up of near-prime collateral, the later SPS transactions, issued in H203 through to 2005 (SPS H through SPS 05-2) have experienced high levels of arrears, with many serious arrears cases now proceeding to repossession and sale. However, the remodeling of these deals has given Fitch the comfort that the current ratings remain appropriate for all tranches within these transactions. It has shown that CE is sufficient to support the ratings of all tranches at their current levels. However, while the ratings have been affirmed, Fitch notes there remains potential for reserve fund drawings in some of the less seasoned transactions where the A DACs are set to step up in the coming quarters. In SPS 05-1 and SPS 05-2, rising arrears, repossessions and losses, as well as the presence of DACs all contribute to a depression of excess spread. In SPS 05-1, at the June 2006 interest payment date, the DAC stripped out much of the excess spread. As a result, the June performance report showed excess spread fall to just over GBP202,000 from GBP4.3 million. The rate payable on DAC increased to 2.45% from 0.1% over this period. It has increased further to 2.75% in the sixth quarter and then will increase further still to 3.45% from the seventh to the 12th quarter. SPS 05-1 is experiencing higher-than-average arrears levels given the seasoning of the portfolio collateral. At the June IPD, 16 months after close, it had 19.87% of loans more than three months in arrears, compared with an average of 10.53% for similarly seasoned U.K. non-conforming RMBS transactions as per Fitch's U.K. non-conforming index. Similarly, SPS 05-2 is also experiencing high arrears and repossessions. Only 11 months after closing, some 16% of loans are in arrears of more than three months, compared to an average of 8.12% as per the Fitch index. The DAC is yet to step up in this transaction, but will increase to 2.2% from 0.1% at the fifth IPD. These transactions are generally structured so that the increase in the DAC coincides with the timing of discounted loan reversion. Reversion to the full stabilized rate from the discounted margins should theoretically benefit the transactions through increased excess spread, but stretched affordability at the higher loan rate may potentially cause a further increase in arrears levels for those borrowers that remain in the pool. With the DAC taking a significant proportion of excess spread, avoiding possible future reserve fund draws will depend on the impact on available revenue funds from arrears levels - arrears are expected to increase further as the deals season - and whether loss levels continue to remain low and stable. With the exception of SPS 05-1, SPF 05-B, SPS 05-2, and the more recent SPS 05-3, SPF 06-A, SPS 06-1 and Eurosail 06-1, which have cash collateralization in the first year, SPML does not post cash collateral to cover the difference between the stabilized rate and the discounted rate. The extent of available excess spread during such times is therefore restricted, although the start rate of the DAC is minimal. Currently, the losses remain relatively low for all outstanding deals. At this point, the highest weighted average loss severity being displayed is 7.86% in the Southern Pacific Financing 04-A transaction. This is not unexpected given the transaction consists of near-prime borrowers and therefore demonstrates a higher average original loan-to-value ratio than for sub-prime transactions, where lower LTVs are required according to underwriting criteria. For the other transactions, the WA loss severities range from 3.11% in SPS D to 7.33% in SPS 05-1. Prepayment rates have been relatively high in these deals, and also tend to pick up after the end of a discounted loan period. In the earlier transactions, Fitch expects the prepayment rate to remain high as those borrowers who are able to refinance do so at more attractive rates, while serious arrears cases get pushed to repossession and sale. For the portfolios where discounted loans are still present, the prepayment is likely to pick up as more borrowers see their teaser rates expire, leaving them free to refinance. For the earlier transactions, arrears of more than three months, inclusive of current possessions should start to stabilize and improve according to historical trends. This, however, should be viewed in context with the rise in sold repossessions. As these properties are worked out of the portfolios, Fitch foresees that more losses will crystallize. This trend is becoming apparent across the U.K. non-conforming sector. Neither the latest round of utility bill rises nor the most recent August rate rise has yet had time to bite on borrowers' affordability. Further interest rate rises cannot be ruled out over the next few months as the Bank of England grapples with inflation and house price data shows signs of house prices accelerating again. The impact of these factors could spell further difficulty in affordability and contribute to further rises in arrears. The rating actions are: Southern Pacific Securities D PLC: -- Class A (ISIN XS0148238081) affirmed at AAA; -- Class M (ISIN XS0148241036) upgraded to AA+ from A+; and -- Class B (ISIN XS0148241200) upgraded to AA from BBB. At June 2006, 8.95% of the notes remain outstanding. The deal can be expected to be called shortly, as there is call option to call the deal when outstanding notes drop to 10% of initial. Southern Pacific Securities E PLC: -- Class A (ISIN XS0155827313) affirmed at AAA; -- Class M1 (ISIN XS0155828048) upgraded to AA+ from A+; -- Class M2 (ISIN XS0155901068) upgraded to AA+ from A+; -- Class B1 (ISIN XS0155828477) upgraded to AA from BBB; and -- Class B2 (ISIN XS0155901225) upgraded to AA from BBB. At the June 2006, 10.45% of the notes remain outstanding. The deal can be expected to be called shortly, as there is call option to call the deal when outstanding notes drop to 10% of initial. Southern Pacific Securities F PLC: -- Class A2 (ISIN XS0163532566) affirmed at AAA; -- Class A3 (ISIN XS0163534182) affirmed at AAA; -- Class M1 (ISIN XS0163536120) upgraded to AA from A; and -- Class M2 (ISIN XS0163537524) upgraded to AA from A. The AAA-rated notes benefit from a guarantee provided by AMBAC Assurance U.K. Ltd. (rated AAA). The underlying rating of the notes has been upgraded to AAA from AA at close. Southern Pacific Securities G PLC: -- Class A2 (ISIN XS0170183700) affirmed at AAA; -- Class A3 (ISIN XS0170186711) affirmed at AAA; -- Class M (ISIN XS0170187016) upgraded to AA from AA-; and -- Class B (ISIN XS0170187792) upgraded to A+ from A. The AAA-rated notes benefit from a guarantee provided by AMBAC Assurance U.K. Ltd. (rated AAA). The underlying rating of the notes has been upgraded to AAA from AA at close. Southern Pacific Securities H PLC: -- Class A2 (ISIN XS0179982698) affirmed at AAA; -- Class A2 DAC (ISIN XS0179982938) affirmed at AAA; -- Class M1 (ISIN XS0179983159) affirmed at BBB+; -- Class M2 (ISIN XS0179983316) affirmed at BBB+; and -- Class B (ISIN XS0179984397) affirmed at BB+. The AAA-rated notes benefit from a guarantee provided by MBIA Assurance S.A. (rated AAA). The underlying rating of the notes has been upgraded to AAA from AA at close. Southern Pacific Securities 04-1 PLC: -- Class A1a (ISIN XS0186711585) affirmed at AAA; -- Class A1b (ISIN XS0186713102) affirmed at AAA; -- Class A2 (ISIN XS0186713797) affirmed at AAA; -- Class A2 DAC (ISIN XS0186714092) affirmed at AAA; -- Class M (ISIN XS0186714506) affirmed at BBB+; and -- Class B (ISIN XS0186715222) affirmed at BB+. The AAA-rated notes benefit from a guarantee provided by MBIA Assurance S.A. (rated AAA). The credit quality of the notes underlying the guarantee is consistent with a AA rating level. Fitch has affirmed the underlying rating at AA. Southern Pacific Financing 04-A PLC: -- Class A (ISIN XS0190203124) affirmed AAA; -- Class A DAC (ISIN XS0190204106) affirmed at AAA; -- Class B (ISIN XS0190204445) affirmed at AA; -- Class C (ISIN XS0190205178) upgraded to A+ from A; -- Class D (ISIN XS0190205681) upgraded to BBB+ from BBB; and -- Class E (ISIN XS0190206143) upgraded to BB+ from BB. Southern Pacific Securities 04-2 PLC: -- Class A1a (ISIN XS0196609829 ) affirmed at AAA; -- Class A1b (ISIN XS0196610835) affirmed at AAA; -- Class A1c (ISIN XS0196611569) affirmed at AAA; -- Class A2a (ISIN XS0196612021) affirmed at AAA; -- Class A2c (ISIN XS0196612963) affirmed at AAA; -- A2c DAC (ISIN XS0197412736) affirmed at AAA; -- Class B1b (ISIN XS0196613425) affirmed at AA; -- Class B1c (ISIN XS0196614829) affirmed at AA; -- Class C1a (ISIN XS0196615396) affirmed at A; -- Class C1c (ISIN XS0196616360) affirmed at A; -- Class D1a (ISIN XS0196616527) affirmed at BBB+; -- Class D1c (ISIN XS0196618069) affirmed at BBB+; and -- Class E (ISIN XS0196618499) affirmed at BB+. Southern Pacific Securities 05-1 PLC: -- Class A1a (XS0212690696) affirmed at AAA; -- Class A1c (XS0212690852) affirmed at AAA; -- Class A2a (XS0212691157) affirmed at AAA; -- Class A2c (XS0212691314) affirmed at AAA; -- A2c DAC (XS0212691405) affirmed at AAA; -- Class B1c (XS0212691660) affirmed at AA; -- Class C1c (XS0212691744) affirmed at A; -- Class D1c (XS0212692122) affirmed at BBB; and -- Class E (XS0212692478) affirmed at BB. Southern Pacific Financing 05-B PLC: -- Class A (ISIN XS0221839318) affirmed at AAA; -- Class B (ISIN XS0221840324) affirmed at AA; -- Class C (ISIN XS0221840910) affirmed at A; -- Class D (ISIN XS0221841561) affirmed at BBB; and -- Class E (ISIN XS0221842023) affirmed at BB. Southern Pacific Securities 05-2 PLC: -- Class A1a (XS0225842359) affirmed at AAA; -- Class A1b (XS0225843670) affirmed at AAA; -- Class A1c (XS0225851186) affirmed at AAA; -- Class A2c (XS0225858512) affirmed at AAA; -- A2c DAC (XS0226046604) affirmed at AAA; -- Class B1a (XS0225861490) affirmed at AA; -- Class B1c (XS0225862894) affirmed at AA; -- Class C1a (XS0225865483) affirmed at A; -- Class C1c (XS0225876688) affirmed at A; -- Class D1a (XS0225877652) affirmed at BBB; -- Class E1c (XS0225879278) affirmed at BB; and -- Class E2c (XS0225879518) affirmed at BB. SUPARAMA SUPAMONKEY: Hires Ian Franses to Liquidate Assets ---------------------------------------------------------- Ian Franses of Ian Franses Associates was appointed Liquidator of Suparama Supamonkey Limited (formerly Superama Supermonkey Limited) on July 13 for the creditors' voluntary winding-up proceeding. The company can be reached at: Suparama Supamonkey Limited 11 Poland Street London W1F 8QA United Kingdom Tel: 020 7287 1783 TBL MARINE: Calls In Joint Liquidators from Acre House ------------------------------------------------------ David Birne and Stephen Katz of Acre House were appointed Joint Liquidators of TBL Marine Limited (formerly Thoth Bullpett Limited) on July 10 for the creditors' voluntary winding-up proceeding. The company can be reached at: TBL Marine Limited Unit 24 South Hampshire Industrial Park Totton Southampton SO403SA United Kingdom Tel: 023 8066 9024 THERMAL SOLUTIONS: Names Graham Lindsey Down Liquidator ------------------------------------------------------- Graham Lindsey Down of BN Jackson Norton was appointed Liquidator of Thermal Solutions (U.K.) Limited on July 11 for the creditors' voluntary winding-up proceeding. The company can be reached at: Thermal Solutions (U.K.) Limited 3 Orchard Avenue Poole Dorset BH148AH United Kingdom Tel: 01202 715 792 TOTAL CONVEYOR: Hires Liquidators from Jacksons Jollife Cork ------------------------------------------------------------ Matthew Colin Bowker and David Antony Willis of Jacksons Jolliffe Cork were appointed Joint Liquidators of Total Conveyor Services Limited on July 10 for the creditors' voluntary winding-up proceeding. The company can be reached at: Total Conveyor Services Limited Ravensbridge Indstrial Estate Bridge Street Dewsbury West Yorkshire WF133EN United Kingdom Tel: 01924 488 355 TOTAL FABRICS: Taps Liquidation from Begbies Traynor ---------------------------------------------------- Lloyd Biscoe of Begbies Traynor was appointed Liquidator of Total Fabrics Limited on July 5 for the creditors' voluntary winding-up procedure. The company can be reached at: Total Fabrics Limited Maitland House Warrior Square Southend-On-Sea SS1 2JY United Kingdom Tel: 01702 610 030 UNITED BISCUITS: Completes Sale of European Unit to Kraft Foods --------------------------------------------------------------- United Biscuits has completed the sale of its Southern European business to Kraft Foods Inc. for an enterprise value of GBP575 million. The Sale also returns to Kraft the rights to all Nabisco trademarks, including Oreo and Ritz, in the European Union, Eastern Europe, the Middle East and Africa. UB's Southern European business is the largest biscuit manufacturer in Spain and Portugal with approximately 26% and 37% market share respectively. UB purchased the Southern European business from Nabisco Holdings in July 2000 and became the market leader in Portugal in 2004 with the acquisition of Triunfo Productos Alimentares S.A. In connection with the consummation of the Sale, UB has issued a notice of redemption in respect of the outstanding 10.625% Euro- denominated and 10.75% Sterling-denominated Senior Subordinated Notes due 2011 issued by United Biscuits Finance plc. UB has simultaneously defeased the Notes by depositing funds with the trustee for the Notes sufficient for the redemption of the Notes on the Redemption Date. By defeasing the Notes, UB is no longer obligated to comply with most of the covenants contained in the indenture governing the Notes. Redemption of the Notes will occur on Oct. 6, 2006. The aggregate redemption prices for the 10.625% Euro-denominated Notes and 10.75% Sterling-denominated Notes are EUR212.4 million and GBP182.3 million, respectively, which constitute the principal amount and interest payable on such Notes up to, but not including, the redemption date, and the call premium of 105.313% in the case of the Euro-denominated Notes and 105.375% in the case of the Sterling-denominated Notes. UB previously announced on July 11, 2006 its intent to defease and redeem the Notes. Headquartered in London, United Kingdom, United Biscuits -- http://www.unitedbiscuits.com/-- is the country's leading biscuit manufaturer and second largest snack maker. The company is a leading biscuit and snack maker in Spain, Portugal. UB's biscuit and snack cake brands include stalwarts BN, Carr's, Cream Crackers, Delacre, Jacob's, Krackawheet, and McVitie's Digestive Biscuits. Its nut and snack brands include KP Nuts, McCoy's, and Hula Hoops. * * * As reported in TCR-Europe on July 17, Fitch Ratings placed the ratings of U.K.-based United Biscuits on Rating Watch Positive, following the announcement of the sale of its Southern European business to Kraft Foods Inc and the stated intention to redeem UB's high-yield notes. The following ratings are affected: -- Regentrealm Limited Issuer Default rating: B- on RWP; -- Regentrealm Limited senior secured debt: BB-/RR1 on RWP; -- United Biscuits Finance PLC IDR: B- on RWP; and -- United Biscuits Finance PLC senior subordinated notes due 2011 B-/RR4 on RWP. In a TCR-Europe report on July 14, Moody's affirmed the B1 corporate family rating of United Biscuits Finance Plc with a stable outlook, following the announced transaction with Kraft Foods Inc. WAYNE KEEPIN: Nominates Alun Evans as Liquidator ------------------------------------------------ Alun Evans of Bevan & Buckland was nominated Liquidator of Wayne Keepin Limited on July 5 for the creditors' voluntary winding-up procedure. The company can be reached at: Wayne Keepin Limited 6-7 Duke Street Cardiff CF101AY United Kingdom Tel: 01443 476 176 WESCO AIRCRAFT: Moody's Rates First Lien Credit Facility at Ba3 --------------------------------------------------------------- Moody's Investors Service assigned a Ba3 first time rating to Wesco Aircraft Hardware, Corp.'s US$510 million first lien credit facility consisting of a US$435 million term loan due 2013 and a US$75 million revolver due 2012, a Caa1 rating to the company's US$165 million second lien term loan due 2014, and a B2 Corporate Family Rating. The ratings for the two facilities reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B3, and a loss given default of LGD 2 for the first lien secured facility and LGD 5 to the second lien facility. The rating outlook is stable. The purpose of the proposed credit facilities is to partially fund the acquisition of the company by Falcon Aerospace Holdings LLC, an affiliate of The Carlyle Group. Management will own a significant portion of equity upon close. Wesco's B2 Corporate Family Rating reflects the company high debt levels and leverage that will ensue from the acquisition, its relatively small revenue base, as well as the company's reliance on OEM production levels supporting its business. The ratings also positively consider Wesco's strong operating and gross margins and adequate cash flow generation at those margins, the company's lead position in the aerospace hardware distribution segment, and its long operating history in this segment prior to the Falcon acquisition. The stable ratings outlook reflects Moody's expectations that the company will be able to maintain gross margins adequate to generate moderate levels of free cash flows to cover all but extraordinary working capital or CAPEX requirements over the next 12 months, possibly resulting in modest levels of debt repayment. Ratings or their outlook could be subject to downward revision if gross margins were to decline for a sustained period, or if debt were increased for any reason, such that leverage (Debt/EBITDA as measured per Moody's standard methodologies) were to exceed 6.5 times, if EBIT coverage of interest were to fall below 1.3 times, or if compliance with financial covenants currently prescribed by the proposed credit facilities were to become doubtful. Conversely, the ratings or their outlook could be positively adjusted if Wesco were to undertake accelerated debt repayment while experiencing a period of strong cash flow generation, possibly resulting in Debt/EBITDA of below 5.2 times or EBIT/Interest of greater than 1.7 times. The Ba3 rating of the first lien senior secured credit facilities reflects an LGD 2 loss given default assessment as this facility is secured by a pledge of all of the company's assets, while there is a significant amount of junior debt (US$165 million, or 24% of total debt commitments) behind these facilities in priority. The Caa1 rating of the second lien facilities reflects an LGD 5 loss given default assessment given that it is effectively subordinated to Wesco's first lien senior creditors. Both the first and second lien facilities are guaranteed by parent Wesco Holdings, Inc. and by all of Wesco's subsidiaries. Wesco Aircraft Hardware Corp., headquartered Valencia, CA, is a wholly-owned subsidiary of Wesco Holdings Inc. Wesco is a leading provider of integrated Just-in-Time inventory management services and distributor of aerospace components to the global aerospace industry. WHITEFIELD PLANT: Names Liquidator from Begbies Traynor ------------------------------------------------------- David Acland of Begbies Traynor was appointed Liquidator of Whitefield Plant Hire Limited on June 30 for the creditors' voluntary winding-up procedure. The company can be reached at: Whitefield Plant Hire Limited 5 Charnley Street Whitefield Manchester M45 6BG United Kingdom Tel: 0161 796 6926 YORKSHIRE QUADS: Creditors Confirm Liquidator's Appointment ----------------------------------------------------------- Creditors of Yorkshire Quads Limited confirmed on July 14 the appointment of A. Graham of Hamilton Insolvency Practitioners Limited as the company's Liquidator. The company can be reached at: Yorkshire Quads Limited 210-216 Newhall Road Sheffield S9 2QL United Kingdom Tel: 0114 242 6799 * Moody's Eyes New Covenant Research & Assessment Framework ----------------------------------------------------------- Moody's Investors Service plans this fall to introduce a new covenant research and assessment framework for non-financial corporate issuers. For a 30-day period, the rating agency is inviting comment from market participants on the new framework for evaluating bond covenants. Moody's has noted in recent years that as corporate strategies have become more aggressive, inadequate document protections have weakened the positions of bondholders vis-a-vis shareholders. "The lack of meaningful covenants in bond indentures as event risk has accelerated is an increasing concern among investors," said Managing Director Michael Rowan, citing the greater roles currently being played in the marketplace by shareholder activists and private equity firms in the current cycle of mergers and acquisitions. Following a trend that began in the early 1980's, a relatively standard set of protective covenants has given way to those which are less restrictive. In Europe, this trend was aided by much improved liquidity in the market following the introduction of the Euro. Typically, the most protective covenants are found in bonds issued by speculative-grade rated companies. As more investment grade companies migrate to the speculative grade universe, protective covenants are lacking. "A burgeoning leveraged buyout market has indicated a need for covenant assessments in Europe," said Michael West, Moody's London-based managing director for European corporate finance. "The increasing amounts of leverage in transactions make us concerned about investor protections in an adverse economy." Moody's plan looks to implement a more systematic approach to analyzing indenture covenants. The result also will include analyst commentary on the relative protection provided by each covenant in a particular bond issue as well as an overall assessment of the covenant package. Moody's will focus on certain key covenants it believes are critical for bondholder protection without overly hampering a company's flexibility and ability to access liquidity. For example, Moody's places a high value on restricted payments tests and change of control provisions. Moody's has established guidelines to gauge the level of protection offered by each key covenant, defining it as strong to weak covenant quality (CQ) on a scale of CQ-1 through CQ-3 while also noting the absence of covenants. In addition to analyzing individual covenants, Moody's will use this framework to determine the degree of protection afforded by the entire covenant package. The need for such assessments is supported by Moody's data indicating that the stability of the corporate landscape is being affected by the increasing leveraged buy out activity of private equity firms and shareholder activists. During 2005, 46% of fallen angel rating actions by Moody's were driven by leveraged buyouts, mergers, and share repurchases. From 2004 to 2005, private equity transactions rose 18% to US$500 billion. In order to encourage the fullest possible discussion, Moody's is inviting comment on topics including, but not limited to: the importance of covenants in investing decisions, the types of covenants of particular interest to investors, situations where detailed covenant information is not available, the need for ranking individual covenants, considering covenants as a package, etc. Called "Request for Comment on: Moody's Indenture Covenant Research & Assessment Framework," this document is available at http://www.moodys.com/ The rating agency will be accepting comments from market participants until Oct. 12. Comments should be addressed to the Credit Policy Committee at cpc@moodys.com. * BOOK REVIEW: Panic on Wall Street: A History of America's Financial Disasters ----------------------------------------------------------- Author: Robert Sobel Publisher: Beard Books Paperback: 469 pages List Price: $34.95 Order your personal copy at: http://amazon.com/exec/obidos/ASIN/1893122468/internetbankrupt "Mere anarchy is loosed upon the world, the blood-dimmed tide is loosed, and everywhere the ceremony of innocence is drowned; the best lack all conviction, while the worst are full of passionate intensity." What a terrific quote to find at the beginning of a book on a financial catastrophe! First published in 1968. Panic on Wall Street covers 12 of the most painful episodes in American financial history between 1768 and 1962. Author Robert Sobel chose these particular cases, among a dozen or so others, to demonstrate the complexity and array of settings that have led to financial panics, and to show that we can only make the vaguest generalizations" about financial panic as a phenomenon. In his view, these 12 all had a great impact on Americans of the time, "they were dramatic, and drama is present in most important events in history." They had been neglected by other financial historians. They are: William Duer Panic, 1792 Crisis of Jacksonian Finances, 1837 Western Blizzard, 1857 Post-Civil War Panic, 1865-69 Crisis of the Gilded Age, 1873 Grant's Last Panic, 1884 Grover Cleveland and the Ordeal of 183-95 Northern Pacific Corner, 1901 The Knickerbocker Trust Panic, 1907 Europe Goes to War, 1914 Great Crash, 1929 Kennedy Slide, 1962 Sobel tells us there is no universally accepted definition of financial panic. He quotes William Graham Sumner, who died long before the Great Crash of 1929, describing a panic as ". . . a wave of emotion, apprehension, alarm. It is more or less irrational. It is superinduced upon a crisis, which is real and inevitable, but it exaggerates, conjures up possibilities, take away courage and energy." Sobel could find no "law of panics" which might allow us to predict them, but notes their common characteristics. Most occur during periods of optimism ("irrational exuberance?"). Most arise as "moments of truth," after periods of self- deception, when players not only suddenly recognize the magnitude of their problems, but are also stunned at their inability to solve them. He also notes that strong financial leaders may prove a mitigating factor, citing Vanderbilt and J.P. Morgan. Sobel concludes by saying that although financial panics have proven as devastating in some ways as war, and while much research has been carried out on war and its causes, little research has been done on financial panics. Panics on Wall Street stands as a solid foundation for later research on the topic. ********* 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. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel Laureno, Julybien Atadero, Carmel Zamesa Paderog, and Joy Agravante, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *