/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060922.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 22, 2006, Vol. 7, No. 189 Headlines A U S T R I A CHRISTIAN STURM: Eisenstadt Court Shuts Down Business CINADR: Korneuburg Court Orders Closing of Business DALIBOR KNEZEVIC: Creditors' Meeting Slated for October 16 GABRAIL: Property Manager Declares Insufficient Assets GAE LEBENSMITTEL: Creditors' Meeting Slated for October 11 KOMBITHERM: Creditors' Meeting Slated for October 16 MOLAND: Property Manager Declares Insufficient Assets STA: Property Manager Declares Insufficient Assets STYROPLAN OHLER: Wels Court Orders Closing of Business VAMA: Claims Registration Period Ends October 10 B E L G I U M MILACRON CORP: Contributes US$30 Million to Pension Obligation B U L G A R I A BULGARIAN POST: Fitch Keeps Individual C/D Rating UNITED BULGARIAN: Fitch Keeps Individual Rating at C/D F I N L A N D METSO CORP: Paper Unit to Supply Tissue Line to Fujian HengAn METSO CORP: To Strengthen Aftermarket Business in Sweden F R A N C E ALCATEL SA: Moody's Expects to End Review for Lucent Merger NOVASAUR S.A.S: Solid Performance Cues Moody's to Change Outlook G E R M A N Y AKANTHUS BAU: Creditors' Meeting Slated for October 4 ARCHITEKT DR. BRUNO: Claims Registration Ends October 6 ATZ AUTOMOTIVE: Claims Registration Ends October 5 CIPMI AG: Claims Registration Ends October 2 EWEN F. GMBH: Creditors' Meeting Slated for October 4 GEORG BEHRENS: Creditors' Meeting Slated for October 5 KAMPS AG: Fitch Affirms & Withdraws B- Issuer Default Rating MEDIASERVICE GESELLSCHAFT: Claims Registration Ends Oct. 6 METERKUECHE GMBH: Claims Registration Ends October 4 NAPSTER: Engages UBS Investment to Assist in Possible Sale NOSTRO GRUNDSTUECKS: Creditors' Meeting Slated for October 5 RAMBUS INC: Receives Notice of Purported Defaults From U.S. Bank TORGISCHE OBJEKTENTWICKLUNG: Claims Registration Ends Oct. 6 H U N G A R Y AES CORP: Regulator's Study on Concession Requests Almost Done I T A L Y CLINICAL DATA: Posts US$6.1-Mln Net Loss in Quarter Ended 2006 CELL THERAPEUTICS: Inks Exclusive Licensing Pact with Novartis K A Z A K H S T A N ALIYA: Creditors' Claims Due Oct. 13 BAU SULTAN: Creditors Must File Claims by Oct. 13 KM & COMPANY: Proof of Claim Deadline Slated for Oct. 13 TSESNABANK: Fitch Assigns Issuer Default Rating at B- VALENTINA: Creditors Must File Claims by Oct. 13 VERENKA-LTD: Claims Registration Ends Oct. 13 K Y R G Y Z S T A N SERGORUS: Proof of Claim Deadline Slated for Oct. 27 L U X E M B O U R G RSHB CAPITAL: Parent Issues US$500-Mln Subordinated Eurobonds P O L A N D NETIA SA: Transport Minister Amends License Fee Decisions R U S S I A ALEKSINSKOYE GRAIN: Court Names R. Kutlin as Insolvency Manager ASKO: Moscow Court Starts Bankruptcy Supervision Procedure BUSINESS INCOME: Court Names L. Titova as Insolvency Manager CBOM FINANCE: Moody's Rates Senior Unsecured Notes at B1 CONCRETE GOODS: Irkutsk Court Starts Bankruptcy Supervision INFORM-INVEST: Court Names A. Maltabar as Insolvency Manager IVANOVSKIY BAKERY: Court Names A. Provorov as Insolvency Manager KARAKULINO-AGRO-PROM-KHIMIYA: M. Sergeeva to Manage Assets KASHKHATAUSKIY: Court Starts Bankruptcy Supervision Procedure KRASNOSELSKAYA POULTRY: Creditors Must File Claims by Oct. 12 LAKASHINSKIY DISTILLERY: V. Motorzhin to Manage Assets MALYSHEVSKIYE EMERALDS: Court Starts Bankruptcy Supervision MILK: Irkutsk Court Names O. Lukina as Insolvency Manager MONOLITH: Court Names S. Lemeshkin as Insolvency Manager MOSENERGO: Improved Liquidity Spurs S&P to Lift Rating to B MUROM-AGRO-TORG: Vladimir Court Starts Bankruptcy Supervision NEFTEKUMSKIY: Stavropol Bankruptcy Hearing Slated for Dec. 7 OBIDIMSKIY BRICKWORKS: V. Semochkin to Manage Assets POLYGRAPH-MASH: Court Sets Bankruptcy Hearing for Oct. 16 PRIOKSKAYA FUEL: Court Names E. Bogdanov as Insolvency Manager ROSNEFT: Russia Eyes Full Privatization in 3-10 Years, Aid Says ROSSELKHOZBANK: Issues US$500-Million Subordinated Eurobonds RUSSIAN FLAX: Court Names N. Tkachenko as Insolvency Manager SEMENOVSKOYE: Moscow Bankruptcy Hearing Slated for Nov. 15 SENGILEEVSKIY WOOD: O. Berdnikova to Manage Insolvency Assets STONE WORKING: Court Names I. Nesterov as Insolvency Manager STROY-INVEST: Creditors Must File Claims by October 12 SUVOROV: Tambov Court Starts Bankruptcy Supervision SUVOROVSKIY SECONDARY: O. Trynkova to Manage Insolvency Assets TOMSKAYA ENERGY: Court Names A. Maltabar as Insolvency Manager VECTOR: Ryazan Bankruptcy Hearing Slated for Nov. 21 VIMPELCOM OJSC: Elects Alexander Izosimov to Continue as CEO WEEAVING-MILL: Court Names A. Lyasman as Insolvency Manager * Fitch Revises Lipetsk's Outlook to Stable & Affirms BB- Rating S P A I N MILACRON CORP: Contributes US$30 Million to Pension Obligation S W I T Z E R L A N D BOOKHAM INC: Investors Buy 2.8-Mln Shares in Private Placement BOOKHAM INC: Ernst & Young Raises Going Concern Doubt U K R A I N E AES CORP: Regulator's Study on Concession Requests Almost Done AVTOSHTAMP: Kirovograd Court Names V. Kosarenko as Liquidator EUROLANDER: Kyiv Court Names Yurij Bilik as Insolvency Manager FORTUNA: Court Names Igor Ivanishin as Insolvency Manager INDEXBANK: Moody's Keeps E+ Financial Strength Rating KONOTOP ELECTRIC-MECHANICAL: Court Starts Bankruptcy Supervision KOSMETIC TRADE: Court Names Igor Ferberov as Insolvency Manager KURAHOVEENRGOBUD: Donetsk Court Starts Bankruptcy Supervision NAFTOGAZ UKRAINY: Posts US$368 Million Loss for 2005 NIZHNYOGIRSKE RTP: AR Krym Court Names Vasil Kuhta as Liquidator NOVO SVIT: Kyiv Court Names Yurij Bilik as Liquidator PEREMOGA: Court Names Yevgenij Shtepenko as Insolvency Manager VEZUVIJ: Kyiv Court Names Yurij Bilik as Insolvency Manager U N I T E D K I N G D O M ADVANCED SCAFFOLDING: Joint Liquidators Take Over Operations ALBION SPRING: Metal Spring Manufacturer up for Sale ASHAMOOR LIMITED: Names Andrew T. Clay as Liquidator AVIALL INC: Completes US$1.7-Bln Merger Agreement with Boeing AVIALL INC: Acquisition Prompts S&P to Withdraw Ratings B J ROLAND: Brings In Joint Liquidators from Portland Business BENSONMILL LIMITED: Taps Lloyd Biscoe to Liquidate Assets BOFF LIMITED: Appoints Joint Liquidators to Wind Up Business BOOKHAM INC: Investors Buy 2.8-Mln Shares in Private Placement BOOKHAM INC: Ernst & Young Raises Going Concern Doubt BOURNVILLE.NET: Creditors Confirm Voluntary Liquidation BOYDS COLLECTION: Hires Liquidators from Benedict Mackenzie BRIARSOFT LIMITED: Creditors Confirm Liquidators' Appointment BRITISH UNITED: Shoe Machinery Manufacturer Up for Sale BURNLEY CAR: Calls In Joint Liquidators from BWC Business C & J MIDDLETON: Brings In A. Turpin to Liquidate Assets CASTLE HOSIERY: Appoints Joint Liquidators from Ashcrofts CGSI LIMITED: Creditors Ratify Liquidator's Appointment CHAPEL FURNISHINGS: Creditors Confirm Voluntary Liquidation CINRAM INT'L: Urged to Retain Financial Advisor and Explore Sale CLINICAL DATA: Posts US$6.1-Mln Net Loss in Quarter Ended 2006 CUT AND DRY: Names Paul Appleton as Liquidator D.B. CLOTHING: Names Claire L. Dwyer Liquidator DURA AUTOMOTIVE: Operating Pressures Cue Moody's to Cut Ratings ELECTRICAL DISTRIBUTORS: Taps Paul John Webb as Administrator FARM HOUSE: Names Joint Liquidators from Chantrey Vellacott FARSIGHT SECURITY: Brings In Administrators from Grant Thornton FENNTURN PROPERTY: Appoints Liquidator from Haines Watts FIBRE DEPOT: Claims Filing Period Ends Sept. 29 FORD MOTOR: Attorney General Lockyer Files Global Warming Suit FORD MOTOR: Mulls Purchase of Rover Brand Name From BMW GENERAL MOTORS: Talks with Nissan and Renault Enter Final Phase GENERAL MOTORS: Fitch Gauges 34% Recovery Rate for Debtholders GENERAL MOTORS: Atty. General Lockyer Files Global Warming Suit GIS CONTRACT: Taps Administrators from Carter Backer GLIDEMORE LIMITED: Simon John Lowes Leads Liquidation Procedure GOODFELLOWS LIMITED: Taps Liquidators from Smith & Williamson HOMEBUY GROUP: Administrators Place Appliance Supplier on Sale HORNMANOR LIMITED: Appoints Colin Burke as Liquidator HOTELOC PLC: Moody's Cuts Rating on GBP88-Mln Class D Notes HUNSTON JOINERY: Names Jeffrey Mark Brenner Liquidator HYLIC LIMITED: Brings In Liquidator from Bishop Fleming INCO LTD: Revises Earnings Outlook for 2006 Third Quarter INSPIRED HR: Paul Appleton Leads Liquidation Procedure IPC ACQUISITION: Moody's Assigns Loss-Given-Default Ratings JIGSAW PRINT: Creditors Confirm Liquidators' Appointment JOWETT ARTSTONE: Brings In XL Business to Administer Assets LEADING EDGE: Liquidator Sets Oct. 3 Claims Bar Date LOADBETTER LIMITED: Names Joint Liquidators to Wind Up Business MATTHEW CORNISH: Hires Administrators from Smith & Williamson MORETTI LIMITED: Claims Registration Ends Oct. 10 MOTORIST CENTRE: Hires Joint Administrators from Critchleys MURDER MYSTERY: Hires Joint Liquidators from Portland Business NAPSTER: Engages UBS Investment to Assist in Possible Sale NOVA FITNESS: Taps Julian Clive Rendell to Liquidate Assets OAK TREE: Nominates Alex Kachani as Liquidator ORGANICINDIA.CO: Creditors' Meeting Slated for September 25 PACIFIC TRADING: Names Liquidator from Parkin S. Booth & Co. PARADIGM LIMITED: Appoints John C. Moran to Liquidate Assets PARAGON CONCESSIONS: Brings In Joint Administrators from Kroll PDP ELECTRICAL: Claims Filing Period Ends Nov. 30 PLASTIC DESIGN: Brings In Joint Liquidators from Vantis POBOX LIMITED: Taps Liquidator from Levy & Partners R.P.L. PRODUCTIONS: Taps Menzies to Administer Assets REGAL FLOWERS: Hires Martin Charles Armstrong as Liquidator RESTAURANT. MEMBERS: Administrators Place Club Operator for Sale SHARPE MCKENNA: Filippa Connor Leads Liquidation Procedure SHARPMOVE LIMITED: Appoints Joint Liquidators from Kelmanson STAR LOGISTICS: Appoints Smith & Williamson as Administrators STATUS PRODUCTS: Hires Jeffrey Mark Brenner as Liquidator SUTLERS STORES: Brings In Administrators from Tenon Recovery SWITCH MEDIA: Calls In Liquidator from Rooney Associates TEDDYFONE LIMITED: Mobile Service Provider Up for Sale THORNYCROFT LIMITED: Hires BDO Stoy as Administrators TIGER GARDEN: Appoints Joint Liquidators from Ashcrofts TRADEFRAME UPVC: Taps Ian C. Brown to Liquidate Assets TY MANUFACTURING: Brings In Administrator from Crawfords TYSON FOODS: Moody's Assigns Loss-Given-Default Ratings VALUELIST LIMITED: Nominates Liquidator from Hodgsons WATERSIDE KITCHENS: Alison M. Byrne Leads Liquidation Procedure WESCO AIRCRAFT: Moody's Assigns Loss-Given-Default Ratings WESTON PLANT: Appoints Joint Administrators from Baker Tilly WIREBINDING COMPANY: Creditors' Meeting Slated for September 28 * BOOK REVIEW: Grounded: Frank Lorenzo and the Destruction of Eastern Airlines ********* ============= A U S T R I A ============= CHRISTIAN STURM: Eisenstadt Court Shuts Down Business ----------------------------------------------------- The Land Court of Eisenstadt entered an order on Aug. 31 shutting down the business of KEG Christian Sturm (FN 185826z). Court-appointed property manager Christian Supper determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Christian Supper Main Place 1 7350 Oberpullendorf, Austria Tel: 02612/43543 Fax: 02612/43543-10 E-mail: op@rss.at Headquartered in Marz, Austria, the Debtor declared bankruptcy on Aug. 23 (Bankr. Case No. 26 S 88/06b). CINADR: Korneuburg Court Orders Closing of Business --------------------------------------------------- The Land Court of Korneuburg entered an order on Aug. 31 closing the business of LLC Cinadr (FN 67363p). Court-appointed property manager Brigitte Stampfer determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Brigitte Stampfer Stadlergasse 27 1130 Vienna, Austria Tel: 01/877 33 30 Fax: 01/877 33 30 33 E-mail: ra-stampfer@utanet.at Headquartered in Petronell, Austria, the Debtor declared bankruptcy on July 7 (Bankr. Case No. 36 S 73/06m). DALIBOR KNEZEVIC: Creditors' Meeting Slated for October 16 ---------------------------------------------------------- Creditors owed money by KEG Dalibor Knezevic (FN 234511w) are encouraged to attend the creditors' meeting at 11:00 a.m. on Oct. 16 to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 23 (Bankr. Case No. 3 S 76/06f). Wolfgang Winkler serves as the court-appointed property manager of the bankrupt estate. Maximilian Schludermann represents Mag. Winkler in the bankruptcy proceedings. The property manager and his representative can be reached at: Mag. Wolfgang Winkler c/o Dr. Maximilian Schludermann Reisnerstrasse 32/12 1030 Vienna, Austria Tel: 715 50 45 Fax: 715 50 474 E-mail: office@anwalt-vienna.at GABRAIL: Property Manager Declares Insufficient Assets ------------------------------------------------------ Dr. Helmut Salzbrunn, the court-appointed property manager for KEG Gabrail (FN 208595h), declared on Aug. 31 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 3, 2005 (Bankr. Case No. 4 S 121/05d). The property manager can be reached at: Dr. Helmut Salzbrunn Zelinkagasse 12 1010 Vienna, Austria Tel: 533 36 69 Fax: 533 36 19 E-mail: salzbrunnanwalt@aon.at GAE LEBENSMITTEL: Creditors' Meeting Slated for October 11 ---------------------------------------------------------- Creditors owed money by LLC GAE Lebensmittel-Analyse- Service (FN 194766x) are encouraged to attend the creditors' meeting at 2:00 p.m. on Oct. 11 to consider the compulsory payment of compensation. The creditors' meeting will be held at: The Land Court of Innsbruck Room 112 1st Floor Conference Hall Maximilianstrasse 4 6020 Innsbruck, Austria Headquartered in Kufstein, Austria, the Debtor declared bankruptcy on May 22 (Bankr. Case No. 7 S 16/06x). Markus Komarek serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Markus Komarek Sparkassengasse 1 6060 Hall in Tirol, Austria Tel: 05223/57266 Fax: 05223/5726676 E-mail: komarek@a1.net KOMBITHERM: Creditors' Meeting Slated for October 16 ---------------------------------------------------- Creditors owed money by LLC Kombitherm (FN 259460i) are encouraged to attend the creditors' meeting at 10:00 a.m. on Oct. 16 to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 3 (Bankr. Case No. 3 S 93/06f). Helmut Platzgummer serves as the court-appointed property manager of the bankrupt estate. Caroline Klus represents Dr. Platzgummer in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Helmut Platzgummer c/o Caroline Klus Kohl Market 14 1010 Vienna, Austria Tel: 533 19 39 Fax: 533 19 39-39 E-mail: helmut.platzgummer@lp-law.at MOLAND: Property Manager Declares Insufficient Assets ----------------------------------------------------- Dr. Bernhard Eder, the court-appointed property manager for LLC Moland (FN 60787v), declared on Aug. 31 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 24 (Bankr. Case No. 45 S 33/06s). The property manager and his representative can be reached at: Dr. Bernhard Eder c/o Dr. Herbert Hochegger Brucknerstrasse 4 1040 Vienna, Austria Tel: 505 78 61 Fax: 505 78 61 9 E-mail: eder@rechtsanwaelte.co.at STA: Property Manager Declares Insufficient Assets -------------------------------------------------- Mag. Christian Koechl, the court-appointed property manager for LLC STA (FN 199080s), declared on Aug. 3 that the Debtor's property is insufficient to cover creditors' claim. The Land Court of Klagenfurt is yet to rule on the property manager's claim. Headquartered in Arnoldstein, Austria, the Debtor declared bankruptcy on April 20 (Bankr. Case No. 41 S 49/06p). The property manager can be reached at: Mag. Christian Koechl 10. Oktober Road 17/I 9500 Villach, Austria Tel: 04242/27 18 3-0 Fax: 04242/214925 E-mail: ra.office@koechl.com STYROPLAN OHLER: Wels Court Orders Closing of Business ------------------------------------------------------ The Land Court of Wels entered an order on Aug. 3 closing the business of KEG Styroplan Ohler (FN 139626h). Court-appointed property manager Klaus Schiller determined that the continuing operation of the business would reduce the value of the estate. The property manager can be reached at: Dr. Klaus Schiller Stadtplatz 27 4690 Schwanenstadt, Austria Tel: 07673/6720 Fax: 07673/6720-20 E-mail: office@kanzlei-schiller.at Headquartered in Vorchdorf, Austria, the Debtor declared bankruptcy on June 6 (Bankr. Case No. 20 S 70/06d). VAMA: Claims Registration Period Ends October 10 ------------------------------------------------ Creditors owed money by LLC VAMA (FN 123632m) have until Oct. 10 to file written proofs of claims to court-appointed property manager Hubert Just at: Dr. Hubert Just Main Place 7 4560 Kirchdorf/Krems, Austria Tel: 07582/62 0 74 E-mail: ra.just.kirchdorf@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:30 p.m. on Oct. 24 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Steyr Hall 7 2nd Floor Steyr, Austria Headquartered in Molln, Austria, the Debtor declared bankruptcy on Aug. 17 (Bankr. Case No. 14 S 46/06x). Julius Bitter represents Dr. Just in the bankruptcy proceedings. The property manager's representative can be reached at: Dr. Julius Bitter Schmideggstrasse 5 4560 Kirchdorf/Krems, Austria Tel: 07582/60040 Fax: 07582600404 E-mail: ra.bitter@aon.at The Land Court of Steyr entered an order on Aug. 31 closing the Debtor's LLC Gruene Erde, LLC Optima Schlafsysteme, and LLC Rosenauer Holzwarenverarbeitung branches. ============= B E L G I U M ============= MILACRON CORP: Contributes US$30 Million to Pension Obligation -------------------------------------------------------------- Milacron Inc. launched a voluntary advance contribution to its U.S.-defined benefit plan of approximately US$30 million on Sept. 15. Credit for this pre-funding will eliminate any contributions required in 2007, currently estimated at approximately US$57 million. Milacron raised the bulk of the prepayment, approximately US$18 million, through the liquidation of investments for non- qualified retirement plans for executives. The company also used approximately US$2 million in proceeds from the recent sale of a previously closed facility as well as approximately US$6 million in cash repatriated from outside the U.S. The balance, approximately US$4 million, was borrowed through its revolving credit facility. Milacron is currently in the process of selling various other non-core, non-operating assets such as land, facilities and equipment made redundant through current and previous consolidations. Headquartered in Cincinnati, Ohio, Milacron Inc. (NYSE: MZ) -- http://www.milacron.com/-- is a leading global manufacturer and supplier of plastics-processing equipment and related supplies. Milacron is also one of the largest global manufacturers of synthetic water-based industrial fluids used in metalworking applications. The company has major manufacturing facilities in Brazil, North America, Europe, and Asia. In Europe, the company maintains operations in Belgium, Germany, Italy, the Netherlands, Spain, and England. Milacron's annual revenues approximated US$805 million over the last twelve months. * * * As reported in the Troubled Company Reporter on Jan. 12, 2006, Moody's Investors Service affirmed the Caa1 corporate family ratings of Milacron Inc. and the Caa1 rating of the Company's US$225 million of 11.5% guaranteed senior secured notes due 2011. =============== B U L G A R I A =============== BULGARIAN POST: Fitch Keeps Individual C/D Rating ------------------------------------------------- Fitch Ratings affirmed Bulgarian Post Bank's Issuer Default rating at BBB+, Short-term rating at F2, Individual rating at C/D and Support rating at 2. The Outlook is Positive, reflecting that of its parent Efg Eurobank Ergasias. The IDR, Short-term and Support ratings for BPB reflect the support it is likely to receive from Eurobank, its 99.6% shareholder, in case of need, as well as the bank's close integration and cooperation with its parent. Any change in Eurobank's ability and/or propensity to support the bank could affect BPB's IDR, Outlook and Support rating. "An upgrade of BPB's Individual rating could be driven by the bank establishing a strong track record of asset quality in light of its changing risk profile," Francesca Vasciminno, Associate Director in Fitch's Financial Institutions Group disclosed. "Conversely, a downgrade would most likely result from a sharp deterioration in capitalization, particularly given the bank's aggressive growth plans, or in asset quality," he added. The Individual rating considers BPB's reasonable franchise and the benefits it derives from being part of the Eurobank group, in terms of risk management practices and product expertise. Profitability is also improving on the back of strong loan growth notably in higher-yielding, but more risky, retail lending and despite ongoing investments to expand and modernize its branch network. In addition, capitalization is reasonable, although the 18.6% Tier 1 ratio at end-May 2006 could be slightly overstated given that BPB booked a proportion of its lending with other group companies in early 2006 following the Bulgarian National Bank restrictions on loan growth. However, BPB's Individual rating also considers rising credit risk resulting from rapid growth, notably in retail lending where BPB has more limited experience. Loans overdue by 90 days have also risen to account for 3.4% of gross loans at end-July 2006. Furthermore, this ratio could be understated given rapid loan growth. BPB has been part of Eurobank since July 2004 and is important to the latter's expansion strategy in Eastern Europe. BPB provides a broad range of banking services through its domestic branch network. It ranked seventh among Bulgarian banks by total assets at end-2005. UNITED BULGARIAN: Fitch Keeps Individual Rating at C/D ------------------------------------------------------ Fitch Ratings affirmed United Bulgarian Bank's Issuer Default rating at BBB+, Short-term rating at F2, Individual rating at C/D, and Support rating at 2. The Outlook remains Stable. The IDR, Short-term and Support ratings for United Bulgarian Bank reflect the high potential support it can expect to receive in case of need from its 99.9%- owner, National Bank of Greece. The Stable Outlook on UBB's IDR reflects that of NBG. Any change in NBG's ability and/or propensity to support the bank could affect UBB's IDR, Outlook and Support rating. "UBB's Individual rating could be upgraded if it was successful in establishing a strong track record in managing its increasing credit risk," Francesca Vasciminno, Associate Director in Fitch's Financial Institutions Group disclosed. "Conversely, a sharp deterioration in asset quality could result in downward pressure," he added. The Individual rating reflects UBB's good franchise and reasonable profitability, which is supported by rising business volumes and the increasing proportion of higher-yielding, but higher-risk, retail loans. In addition, UBB's capitalization is also reasonable, with an eligible capital-to-weighted risks ratio of 19.4% at end-2005. The funding base, although still largely short-term, is adequately diversified, and market risk is limited. However, the Individual rating also considers the risks associated with rapid loan growth in the retail and SME segments in which UBB has less experience. Asset quality ratios have deteriorated slightly since 2004, with 2.8% of loans overdue by 90 days as at end-June 2006. Given rapid loan growth, asset quality ratios may underestimate actual loan quality. UBB was Bulgaria's third-largest bank by total assets at end- March 2006 with a market share of around 10%. It has the fifth- largest branch network and one of the largest ATM networks in the country. Despite historically being a corporate bank, UBB has built up reasonable market shares in retail lending that represented nearly 50% of gross loans at end-2005. UBB is an important part of NBG's operations in Central and Eastern Europe. ============= F I N L A N D ============= METSO CORP: Paper Unit to Supply Tissue Line to Fujian HengAn ------------------------------------------------------------- Metso Paper will supply a second complete Advantage DCT 200 tissue production line to Fujian HengAn Paper Co., Ltd in China. The line is scheduled to start up at their Anhai mill in Fujian province in the beginning of 2008. The value of the order approaches EUR20 million. The order follows the successful start-up of a similar Advantage DCT 200 tissue line at the same mill in July 2006. The new Metso delivery comprises a complete tissue production line with Metso stock preparation equipment. The delivery will also include Metso Paper's new pressing technology, which saves energy and enhances final product quality. Metso Automation will supply an extensive automation package including metsoDNA machine and process controls, PaperIQ Plus scanner and quality controls, as well as a IQDilutionPro Lite basis weight profiling system. With a width of 5.6 meter and an operating speed of 2,000 m/min, the new machine will add another 60,000 tons a year of high- quality facial, toilet and towel grades to HengAn Group's total production. This will consolidate their position as China's leading tissue producer. The raw material for the new machine will be virgin pulp. HengAn is the leading, fast-growing Chinese consumer product company with a nationwide sales and distribution network. It is a fully owned subsidiary of HengAn International, whose shares are listed on the Hong Kong stock exchange. Their turnover is HKD4 billion (approx. EUR 400 million) and they have 16,000 employees. 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. METSO CORP: To Strengthen Aftermarket Business in Sweden -------------------------------------------------------- Metso Corp. has signed contracts to acquire the business assets of Svensk Gruvteknik AB and Svensk Pappersteknik AB in Sweden to strengthen Metso's aftermarket business. The business group that SGT and SPT belong to is owned by P"r-Anders Johansson and Conny Johansson. The business assets will be transferred to Metso on Oct. 1, 2006. The debt-free purchase price is approximately EUR4 million. The total net sales of the acquired business in 2005 were EUR11 million. Svensk Gruvteknik employs some 70 people and Svensk Pappersteknik approximately 40 people. Svensk Gruvteknik provides maintenance and service parts to mines in northern Sweden. Its biggest customer is New Boliden. The acquired business is based in G"llivare and will be merged with Metso Minerals' Swedish sales company. Svensk Pappersteknik offers mechanical services and maintenance for the pulp and paper industry in northern Sweden. It has a long-term agreement for mechanical maintenance with Mondi Packaging Paper Dyn"s in V"ja, which is its main customer. The acquired business will be a part of the Metso-owned Scandinavian Mill Service AB, which provides maintenance operations and development for the pulp and paper industry. The acquisitions are in line with Metso's strategy of profitable growth and they will complement and further strengthen Metso's position as a life cycle service provider for the pulp and paper industry and the mining industry in Sweden. One of Metso's strategic goals is to increase aftermarket services and strengthen its service network close to customers. 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. =========== F R A N C E =========== ALCATEL SA: Moody's Expects to End Review for Lucent Merger ----------------------------------------------------------- Moody's Investors Service expects to conclude the review of the Corporate Family Ratings for Alcatel (rated Ba1, review for downgrade) and for Lucent Technologies (B1, review for upgrade) upon closing of the merger of the two companies. The rating agency also indicated that the CFR for Lucent will be withdrawn upon completion of the merger. The ratings for Alcatel's and Lucent's debt instruments will likely remain on review until the ranking and possible support mechanisms for the various classes of debt within the group's capital structure are clarified. Alcatel and Lucent Technologies are currently arranging the final steps of their merger process. To date all approvals material for the group merger have been received from shareholders and regulators, but for the agreement of the Committee on Foreign Investments in the U.S. Afterwards the merger will require only a set of legal steps for the transaction to close, upon which Moody's expects to conclude its rating review on the CFR for Alcatel Lucent, the combined group. At that time, the Lucent CFR will be withdrawn and the ratings for its debt instruments will be assessed with regard to their creditor position and their ranking in the group capital structure. Moody's expects completion of the transaction in the fourth calendar quarter of 2006. The last rating actions of April 3 placed the Ba1 ratings for Alcatel on review for possible downgrade and the B1 ratings for Lucent on review for possible upgrade following the merger announcement. Headquartered in Paris, France, Alcatel had sales of EUR13.1 billion and a net profit of EUR930 million in fiscal year 2005 and is one of the world leaders in providing advanced solutions for telecommunications systems and equipment. Lucent Technologies Inc., headquartered in Murray Hill, New Jersey is also a global provider of telecommunications equipment and services with revenues of US$9.4 billion in its fiscal year ending 30 September 2005. Alcatel will change its name into Alcatel Lucent and remain headquartered in Paris, France, and will be the global leader in communication solutions with 2005 pro-forma sales of !18.6 billion. NOVASAUR S.A.S: Solid Performance Cues Moody's to Change Outlook ---------------------------------------------------------------- Moody's Investors Service changed the outlook on the Ba2 Corporate Family Rating of Novasaur S.A.S., the ultimate holding company for Saur S.A.S., to positive from stable due to its solid operating and financial performance. At the same time, Moody's also changes to positive from stable the outlook on the B1 rating of the EUR265 million senior subordinated notes issued by FG4 S.A., a finance subsidiary of Novasaur. Moody's rating action reflects Saur's ongoing robust operating performance since it was divested last year by the French construction group Bouygues, as evidenced by a robust increase in both sales and reported EBITDA compared to the pro-forma period of the previous year (+6.5% and +17.8%, respectively) as well as by a significant reduction in working capital. As a result, current financial metrics are somewhat stronger than anticipated earlier by Moody's, with RCF to net adjusted debt of 12.8% and net adjusted debt to EBITDA of 4.7x in 2005/06. In Moody's view, Novasaur's ratings could be upgraded by no more than one notch in the next twelve months, provided that the company continues: -- to demonstrate solid operating performance, and -- to reduce its leverage, resulting in ratios of net adjusted debt to EBITDA below 4.0x, RCF to net adjusted debt in excess of 15% and adjusted EBITDA minus capex to net cash interest above 1.7x. Conversely, failure to maintain adjusted EBITDA minus capex to net cash interest above 1.1x and net adjusted debt to EBITDA below 6.0x would exert downward pressure on ratings. Moody's last rating action on Novasaur was on April 12, 2005, when the agency assigned ratings for the first time to the group. Novasaur S.A.S., headquartered in Guyancourt, France, is the third largest provider of water and sanitation services as well as waste management services in France. In 2005/06, the group reported net sales of EUR1.4 billion. ============= G E R M A N Y ============= AKANTHUS BAU: Creditors' Meeting Slated for October 4 ----------------------------------------------------- The court-appointed provisional administrator for Akanthus Bau GmbH, Joachim Voigt-Salus, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:20 a.m. on Oct. 4. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:15 a.m. on Jan. 3, 2007, at the same venue. Creditors have until Nov. 15 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings Akanthus Bau GmbH on Aug. 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Akanthus Bau GmbH Forest Route 5-7 12555 Berlin, Germany The administrator can be reached at: Joachim Voigt-Salus Rankestrasse 33 10789 Berlin, Germany ARCHITEKT DR. BRUNO: Claims Registration Ends October 6 ------------------------------------------------------- Creditors of Architekt Dr. Bruno Wasser GmbH have until Oct. 6 to register their claims with court-appointed provisional administrator Klaus Bollig. Creditors and other interested parties are encouraged to attend the meeting at 11:20 a.m. on Nov. 10 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 142 1st Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Architekt Dr. Bruno Wasser GmbH on Aug. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Architekt Dr. Bruno Wasser GmbH Attn: Dr. Bruno Wasser, Manager Yorckstr. 12 50733 Cologne, Germany The administrator can be contacted at: Klaus Bollig Duerener Str. 189 50931 Cologne, Germany ATZ AUTOMOTIVE: Claims Registration Ends October 5 -------------------------------------------------- Creditors of ATZ Automotive GmbH have until Oct. 5 to register their claims with court-appointed provisional administrator Joerg Bornheimer. Creditors and other interested parties are encouraged to attend the meeting at 11:05 a.m. on Nov. 10 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 142 1st Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against ATZ Automotive GmbH on Aug. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ATZ Automotive GmbH Hauptstr. 99 42929 Wermelskirchen, Germany Attn: Gabriele Paas, Manager Heisterstr. 7 42929 Wermelskirchen, Germany The administrator can be contacted at: Dr. Joerg Bornheimer Sporergasse 7 50667 Cologne, Germany CIPMI AG: Claims Registration Ends October 2 -------------------------------------------- Creditors of cipmi AG have until Oct. 2 to register their claims with court-appointed provisional administrator Arno Wolf. Creditors and other interested parties are encouraged to attend the meeting at 2:10 p.m. on Nov. 30 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Koenigstein/Ts. Area 106 A Law Courts Castle Way 9 61462 Koenigstein/Ts., 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 Koenigstein/Ts. opened bankruptcy proceedings against cipmi AG on Aug. 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: cipmi AG Haingraben 3 A 65779 Kelkheim, Germany Attn: Hans Seitz, Manager Eibenweg 3 65779 Kelkheim, Germany The administrator can be contacted at: Arno Wolf Minnholzweg 2b 61476 Kronberg, Germany Tel: 06173/7834-0 Fax: 06173/7834-22 EWEN F. GMBH: Creditors' Meeting Slated for October 4 ----------------------------------------------------- The court-appointed provisional administrator for Ewen F. GmbH Bitburg, Thomas B. Schmidt, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 2:00 p.m. on Oct. 4. The meeting of creditors and other interested parties will be held at: The District Court of Bitburg Hall 128 Court Road 2/4 54634 Bitburg, Germany The Court will also verify the claims set out in the administrator's report at 10:00 a.m. on Nov. 6 at the same venue. Creditors have until Oct. 10 to register their claims with the court-appointed provisional administrator. The District Court of Bitburg opened bankruptcy proceedings Ewen F. GmbH Bitburg on Aug. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ewen F. GmbH Bitburg Attn: Felix Ewen, Manager Raiffeisenstr. 13 54636 Idenheim, Germany The administrator can be reached at: Dr. Thomas B. Schmidt Kalenfelsstr. 5 a 54290 Trier, Germany GEORG BEHRENS: Creditors' Meeting Slated for October 5 ------------------------------------------------------ The court-appointed provisional administrator for Georg Behrens Holzelementebau GmbH, Haro Helms, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:30 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 9:00 a.m. on Dec. 6 at the same venue. Creditors have until Oct. 23 to register their claims with the court-appointed provisional administrator. The District Court of Bremen opened bankruptcy proceedings Georg Behrens Holzelementebau GmbH on Aug. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Georg Behrens Holzelementebau GmbH Attn: Marc Behrens, Manager March Route 10B 28309 Bremen, Germany The administrator can be reached at: Haro Helms Schillerstr. 10 28195 Bremen, Germany Tel: 0421/337790 Fax: 0421/3377933 Web: http://www.dr-stankewitz.de/ E-mail: helms@drstankewitz.de KAMPS AG: Fitch Affirms & Withdraws B- Issuer Default Rating ------------------------------------------------------------ Fitch Ratings affirmed Germany-based Kamps AG's Issuer Default and senior unsecured ratings at B- and simultaneously withdrawn them. The B-/RR4 ratings on Kamps EUR325 million bond due 2009, which has been prepaid by the company, are also withdrawn. The Issuer Default rating had a Negative Outlook. Fitch will no longer provide rating coverage of Kamps AG. MEDIASERVICE GESELLSCHAFT: Claims Registration Ends Oct. 6 ---------------------------------------------------------- Creditors of MEDIASERVICE Gesellschaft fuer digitale Dienstleistungen mbH have until Oct. 6 to register their claims with court-appointed provisional administrator Andreas Mueller- Stein. Creditors and other interested parties are encouraged to attend the meeting at 11:00 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 Cologne Meeting Room 142 1st Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against MEDIASERVICE Gesellschaft fuer digitale Dienstleistungen mbH on Aug. 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: MEDIASERVICE Gesellschaft fuer digitale Dienstleistungen mbH Leyboldstrasse 14 50354 Huerth, Germany Attn: Mirjam Schmitz, Manager 53332 Bornheim, Germany The administrator can be contacted at: Andreas Mueller-Stein Schuetzenstr. 5 50126 Bergheim, Germany METERKUECHE GMBH: Claims Registration Ends October 4 ---------------------------------------------------- Creditors of Meterkueche GmbH have until Oct. 4 to register their claims with court-appointed provisional administrator Thomas Illy. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 Wiesbaden E 36 A 3rd Floor Building E Moritzstrasse 5 Hinterhaus 65185 Wiesbaden, 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 Wiesbaden opened bankruptcy proceedings against Meterkueche GmbH on Aug. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Meterkueche GmbH Feldbergstrasse 10 65239 Hochheim am Main, Germany Attn: Klaus Peter Bezold, Manager Weiher 27 65239 Hochheim, Germany Stefan Birkenbach, Manager Illinger Str. 84 66299 Friedrichsthal, Germany The administrator can be contacted at: Thomas Illy Kanzlei Thierhoff, Illy + Partner Welle 5 60322 Frankfurt/M., Germany Tel: 069/979953-0 Fax: 069/979953-99 NAPSTER: Engages UBS Investment to Assist in Possible Sale ---------------------------------------------------------- Napster has retained UBS Investment Bank to assist the Board and management in its evaluation of strategic alternatives. The company said the move is in response to recent third party interest in establishing strategic partnerships or potentially acquiring the company. "Napster is in a strong position to continue aggressively building our business as an independent company and we are pleased to also have the opportunity to thoughtfully examine potential combinations that may further enhance Napster's unique strategic and brand position in the center of digital media," Chris Gorog, Napster's Chairman & CEO, said. "Our goal is to enhance shareholder value which could potentially lead to a new strategic partnership or the sale of the company but in any event our primary focus will remain on growing Napster." Nand Gangwani, Napster's CFO, said, "Napster has a strong balance sheet with a healthy cash position of US$97 million as of the close of the first quarter and we are currently generating annual revenues in excess of US$100 million. For the second half of our fiscal year, we project a strong up-tick in subscription growth from a base of more than half a million subscribers and a significant expansion of our mobile business, including the addition of new tier one wireless partners. We are also looking forward to launching in Japan this fall as scheduled, expanding our global footprint to include the top four music markets in the world." The company advised that it has not set a definitive timetable for completion of its evaluation and further that there can be no assurances that the evaluation process will result in any specific transaction. The company also advised that it does not intend to disclose developments regarding its evaluation of strategic alternatives unless and until its Board of Directors approves a definitive transaction. Napster (Nasdaq: NAPS) -- http://www.napster.com/-- is committed to making great music experiences more accessible to all music fans. Napster.com gives web users the power to legally listen on-demand to a massive catalog of music from major and independent labels, wherever they are on the Web -- for FREE. The Napster music subscription service offers a premium experience that includes unlimited access to CD-quality music and advanced discovery, community and programming features in an advertising-free environment. Napster To Go subscribers also enjoy unlimited transfer of music to a compatible MP3 player. Napster Light, an a la carte download store, and Napster Mobile, a hosted music service featuring artist images, ring tones and full-length songs, round out the Napster digital music lineup. Napster is headquartered in Los Angeles with sales offices in Frankfurt and London. Napster along with its affiliates filed for chapter 11 protection on June 6, 2002 (Bankr. D. Del. Case No. 02-11573). Daniel J. DeFranceschi, Esq., Russell C. Silberglied, Esq., at Richards, Layton & Finger and Richard M. Cieri, Esq., Michelle Morgan Harner, Esq., at Jones, Day, Reavis & Pogue represented the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed debts of more than US$100 million. The Debtors chapter 11 plan of liquidation was confirmed on Apr. 20, 2004. The court entered an order formally closing the Debtor's chapter 11 petition on Jan. 10, 2005. NOSTRO GRUNDSTUECKS: Creditors' Meeting Slated for October 5 ------------------------------------------------------------ The court-appointed provisional administrator for NOSTRO Grundstuecks-GmbH & Co. Mariendorfer Weg KG, Wolfgang Schroeder, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:15 a.m. on Oct. 5. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:05 a.m. on Jan. 11, 2007, at the same venue. Creditors have until Nov. 16 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings NOSTRO Grundstuecks-GmbH & Co. Mariendorfer Weg KG on Aug. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: NOSTRO Grundstuecks-GmbH & Co. Mariendorfer Weg KG Scharnweberstrasse 1 13405 Berlin, Germany The administrator can be reached at: Dr. Wolfgang Schroeder Genthiner Str. 48 10785 Berlin, Germany RAMBUS INC: Receives Notice of Purported Defaults From U.S. Bank ---------------------------------------------------------------- Rambus Inc. received a notice of purported defaults from U.S. Bank National Association, as trustee for the Company's Zero Coupon Convertible Senior Notes due 2010. The Notice asserted that the Company's failure to file its Form 10-Q for the quarter ended June 30, 2006, to the U.S. Securities and Exchange Commission, constituted defaults under Sections 7.2 and 14.1 of the Indenture, dated as of Feb. 1, 2005, between the Company and the Trustee governing the Notes. The Notice indicated that if the Company does not cure these purported defaults under the Indenture within 60 days of Aug. 17, 2006, which is the date of the Trustee's first communication with the Company on this matter, an Event of Default would occur. The Company believes that it is not in default under the terms of the Indenture. The Notice states that Section 7.2 of the Indenture required the Company to file with the Securities and Exchange Commission, and provide copies to the Trustee within 15 days after such filing, its annual report and such other information, documents and other reports which the Company is required to file with the SEC pursuant to Sections 13 or 15(d) of the Securities Exchange Act of 1934. In fact, Section 7.2(a) of the Indenture states that: "(a) The Company shall file with the Trustee, within 15 days after it files them with the SEC, copies of its annual report and the information, documents and other reports which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act." The Company believes that the plain words of Section 7.2 of the Indenture only require the Company to file with the Trustee reports that have been filed with the SEC, and, since the Company's Form 10-Q for the quarter ended June 30, 2006, has not been filed with the SEC, the Company is under no obligation to file it with the Trustee. Therefore, the Company is not in breach of Section 7.2 of the Indenture. Furthermore, even if Section 7.2 of the Indenture requires the Company to file a Form 10-Q for the quarter ended June 30, 2006, with the Trustee within 15 days of the time such filing is required to be filed with the SEC, the Company would have 60 days from receiving notice of an actual default before such failure to file would ripen into an "Event of Default." Thus, because the Company did not receive the Notice until Sept. 8, 2006, the Company would have until Nov. 7, 2006, to file its Form 10-Q for the quarter ended June 30, 2006, with the Trustee, instead of the Oct. 17, 2006, referenced in the Notice. In addition, the Notice states that Section 14.1 of the Indenture requires the Company to comply with Section 314(a) of the Trust Indenture Act of 1939, including filing with the SEC and the Trustee annual reports and such information, documents and other reports which the Company is required to file with the SEC pursuant to the Section 13 or 15(d) of the Exchange Act. The Company does not agree with the Trustee's assertion in the Notice that the Indenture and the TIA "incorporates by reference" the filing obligations and deadlines of the Exchange Act, or with the implicit assertion that a failure to comply with the TIA could result in an "Event of Default" under the Indenture. Therefore, the Company believes its failure to file its Form 10-Q with the SEC is not a default under Section 14.1 of the Indenture. If an "Event of Default" were to occur under the Indenture, the Trustee or holders of at least 25% in aggregate principal amount of the Notes then outstanding would have the contractual right to declare all unpaid principal, and any accrued, default or additional interest, on the Notes then outstanding to be due and payable. As of the date hereof, there is US$160 million in aggregate principal amount of the Notes outstanding and no accrued but unpaid interest. If an "Event of Default" were to occur, the noteholders would have a right to receive the US$160 million in aggregate principal amount outstanding plus any additional interest or default interest (which would accrue at a rate of 2% per annum from the date on which full payment of the Notes was due to the date that full payment is made) which may have accrued. The Company believes that, if an Event of Default were to occur and the Notes were accelerated, it has adequate financial resources to pay any unpaid principal, and any accrued, default or additional interest due on the Notes. Headquartered in Los Altos, Calif., Rambus Inc. -- http://www.rambus.com/-- is one of the world's premier technology licensing companies specializing in the invention and design of high-speed chip interfaces. Rambus licenses both its world-class patent portfolio as well as its family industry- standard interface products. Rambus has regional offices in North Carolina, India, Germany, Japan, and Taiwan. TORGISCHE OBJEKTENTWICKLUNG: Claims Registration Ends Oct. 6 ------------------------------------------------------------ Creditors of Torgische Objektentwicklung und Baubetreuung GmbH have until Oct. 6 to register their claims with court-appointed provisional administrator Rainer Eckert. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 8 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Hall 145 Leipzig, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Leipzig opened bankruptcy proceedings against Torgische Objektentwicklung und Baubetreuung GmbH on Aug. 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Torgische Objektentwicklung und Baubetreuung GmbH Gueterbahnhofstr. 11a 04860 Torgau, Germany The administrator can be contacted at: Dr. Rainer Eckert Kathe-Kollwitz-Road 9 04109 Leipzig, Germany ============= H U N G A R Y ============= AES CORP: Regulator's Study on Concession Requests Almost Done -------------------------------------------------------------- An official of Autoridad Nacional de los Servicios Publicos or ANSP -- Panama's public service regulator -- told Business News Americas that the agency's review on AES Corp.'s three hydroelectric concession requests is almost done. BNamericas relates that the official said the projects, which would use water from the Changuinola River in Bocas del Toro, are: -- 158-megawatt Gavilan, -- 132-megawatt Cauchero II, and -- 126-megawatt Chan-220. The official told BNamericas that ANSP will award the concessions soon. In general terms, once a concession has been awarded, the developer has a year to finalize project details and up to four years to construct the project. A report posted in AES Corp.'s Web site says that the firm currently runs four hydro plants with 470-megawatt total installed capacity and one 43-megawatt thermal plant. About the Company AES Corporation -- http://www.aes.com/-- is a global power company. The Company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the Company delivers electricity through 15 distribution companies. AES has been in Eastern Europe for nearly ten years, since it acquired three power plants in Hungary in 1996. Today, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * As reported in the Troubled Company Reporter on May 25, Fitch affirmed The AES Corporation's Issuer Default Rating at 'B+'. Fitch also affirmed and withdrew the ratings for the company's junior convertible debt. Fitch said the rating outlook for all remaining instruments is stable. In March, Standard & Poor's Ratings Services raised its corporate credit rating on diversified energy company The AES Corp. to 'BB-' from 'B+'. S&P said the outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, Moody's affirmed the ratings of The AES Corporation, including its Ba3 Corporate Family Rating and the B1 rating on its senior unsecured debt. Moody's said the rating outlook remains stable. ========= I T A L Y ========= CLINICAL DATA: Posts US$6.1-Mln Net Loss in Quarter Ended 2006 -------------------------------------------------------------- Clinical Data Inc. filed its quarter financial statements for the three months ended June 30, 2006, with the U.S. Securities and Exchange Commission. The Company reported a US$6,185,000 net loss on US$24,816,000 of revenues for the three months ended June 30, 2006. The Company generated net cash flow of US$11.7 million in the three months ended June 30, 2006, as compared to US$1 million in the same period last year. The increased net cash flow in 2006 was because of the issuance of common stock and other equity instruments partially offset by the Company's operating losses, debt repayments and purchases of equipment. At June 30, 2006, the Company's balance sheet showed US$116,833,000 in total assets and US$35,691,000 in total liabilities resulting in US$72,245,000 stockholders' equity. A full-text copy of the regulatory filing is available for free at http://ResearchArchives.com/t/s?11dd Going Concern Doubt As reported in the Troubled Company Reporter on July 7, 2006, Deloitte & Touche, LLP, expressed substantial doubt about Clinical Data, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the fiscal years ended March 31, 2006 and 2005. The auditing firm pointed to the Company's accumulated deficit, negative cash flows from operations and the expectation that the Company will continue to incur losses in the future. About Clinical Data Clinical Data, Inc. (NASDAQ: CLDA) -- http://www.clda.com/-- is a worldwide leader in providing comprehensive molecular and pharmacogenomics services as well as genetic tests to improve patient care. The Company, founded in 1972, is organized under three worldwide divisions segmented by service offerings and varying client constituents: PGxHealth(TM); Cogenics(TM); and Vital Diagnostics(TM). Clinical Data currently employs a staff of over 430. The Company is headquartered in Newton, Massachusetts with operations in Texas, Connecticut, RTP - North Carolina, Rhode Island, and California as well as internationally in the UK, France, the Netherlands, Italy and Australia. CELL THERAPEUTICS: Inks Exclusive Licensing Pact with Novartis -------------------------------------------------------------- Cell Therapeutics Inc. entered into an exclusive worldwide licensing agreement with Novartis for the development and commercialization of XYOTAX(TM), an investigational agent in Phase III for the treatment of non-small cell lung cancer and other cancers. The Company disclosed that total product registration and sales milestones for XYOTAX under the agreement could reach as much as US$270 million. Novartis has also agreed to make a US$15 million equity investment in the Company. The Company will have the option of co-detailing XYOTAX in the United States under the direction of Novartis, under a separate agreement if the Company exercises the option. The closing of the transaction is subject to antitrust regulatory clearance and certain other closing conditions. The agreement also provides Novartis with an option to develop and commercialize Pixantrone, an investigational agent designed to potentially increase anti-tumor activity and decrease the potential for cardiac toxicity associated with the currently marketed anthracyclines. If Novartis exercises its option on Pixantrone, it would pay the Company a US$7.5 million fee and up to US$104 million in registration and sales related milestones. "This agreement brings the strength of one of the most innovative leaders in oncology to the development and commercialization of XYOTAX, an agent that could be demonstrated in ongoing trials to prolong survival in women with lung cancer and potentially become the first gender specific therapy for this disease," James A. Bianco, M.D., president and chief executive officer, said. "It also provides pixantrone with potential access to a market leader in blood related cancer therapeutics to fully maximize its commercial potential." Dr. Bianco, added: "This collaboration takes CTI one step closer to rebuilding its commercial presence in the United States and its goal of becoming a profitable cancer focused company. It also allows us to continue our growth through an acquisition strategy looking for other novel targeted agents to add to our development pipeline and into our future commercial infrastructure." The common stock to be issued to Novartis has not been registered under the Securities Act of 1933, as amended, or any state securities laws. The common stock may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, and any applicable state laws. About Novartis Headquartered in Basel, Switzerland, Novartis, AG, (NYSE: NVS) -- http://www.novartis.com/-- is a world leader in offering medicines to protect health, treat disease and improve well- being. Its goal is to discover, develop and successfully market innovative products to treat patients, ease suffering and enhance the quality of life. Novartis Group companies employ approximately 97,000 people and operate in over 140 countries around the world. About Cell Therapeutics Based in Seattle, Washington, Cell Therapeutics, Inc., (NASDAQ and MTAX: CTIC) -- http://www.cticseattle.com/-- engages in the development, acquisition, and commercialization of treatments for cancer. The company was co-founded by James A. Bianco, Louis A. Bianco, and Jack W. Singer in 1991. The company maintains research and development facilities, Cell Therapeutics Europe S.r.l, in Bresso (Milan), Italy. At June 30, 2006, the Company's equity deficit narrowed to US$102.2 million from a US$107.1 equity deficit at Dec. 31, 2005. =================== K A Z A K H S T A N =================== ALIYA: Creditors' Claims Due Oct. 13 ------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region declared LLP Aliya insolvent on July 24. Creditors have until Oct. 13 to submit written proofs of claim to: LLP Aliya Room 228 Auelbekova Str. 139a Kokshetau Akmola Region Kazakhstan Tel: 8 (3162) 25-79-32 BAU SULTAN: Creditors Must File Claims by Oct. 13 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region declared LLP Bau-Sultan-Service insolvent. Creditors have until Oct. 13 to submit written proofs of claim at: LLP Bau-Sultan-Service Floor 3 Abai Str. 10a Atyrau Atyrau Region Kazakhstan KM & COMPANY: Proof of Claim Deadline Slated for Oct. 13 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region declared LLP KM & Company insolvent on July 19. Creditors have until Oct. 13 to submit written proofs of claim at: LLP KM & Company Ilyaeva Str. 24 Shymkent South Kazakhstan Region Kazakhstan Tel: 8 (3252) 54-02-36 TSESNABANK: Fitch Assigns Issuer Default Rating at B- ----------------------------------------------------- Fitch Ratings assigned Kazakhstan-based Tsesnabank ratings of Issuer Default B- with Stable Outlook, Short-term B, Support 5, and Individual D/E. The ratings reflect TSB's small absolute size by international standards, significant, albeit declining, business and regional concentration levels on both sides of the balance sheet, notable liquidity risk exposure as well as certain weaknesses in the operating environment. However, they also take into account TSB's strong regional submarket positions, reasonable revenue generation and asset quality. Upside to the ratings could result from further growth of the bank's national franchise, helping to reduce regional and customer concentration levels. Narrower asset/liability mismatches would also be positive for TSB's ratings. Downward pressure could be triggered by asset quality problems arising from the rapid lending growth and portfolio seasoning. TSB was established in 1992 by Tsesna Corporation in Astana as a bank predominantly serving captive companies within the same group. Shortly after the movement of the Kazakhstani capital to Astana, the bank underwent a period of business revival in an almost competition-free environment. However, Tsesna Corporation's position in the region has weakened and TSB has faced tougher competition from new market entrants. This has forced the bank to expand its activities beyond the group's regionally confined business and seek a more national presence. Nevertheless, the bank was able to retain its leading position in the region. TSB was the 13th-largest bank in Kazakhstan at end-July 2006, with only a small, but increasing, market share. Today, the bank is ultimately owned by Adylbek Djaksybekov (who has a 70% stake), the current chairman of the president's administration, and his family. VALENTINA: Creditors Must File Claims by Oct. 13 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Jambyl Region declared LLP Valentina insolvent on July 21. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Oct. 13 to submit written proofs of claim to: LLP Valentina Suleymenova Str. 17 (11a) Taraz Jambyl Region Kazakhstan Tel: 8 (3262) 43-76-49 VERENKA-LTD: Claims Registration Ends Oct. 13 --------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region declared LLP Verenka-Ltd insolvent on July 24. Creditors have until Oct. 13 to submit written proofs of claim to: LLP Verenka-Ltd Room 228 Auelbekova Str. 139a Kokshetau Akmola Region Kazakhstan Tel: 8 (3162) 25-79-32 =================== K Y R G Y Z S T A N =================== SERGORUS: Proof of Claim Deadline Slated for Oct. 27 ---------------------------------------------------- LLC Sergorus has declared insolvency. Creditors have until Oct. 27 to submit written proofs of claim at: LLC Sergorus Mira Ave. 63-45 Bishkek, Kyrgyzstan =================== L U X E M B O U R G =================== RSHB CAPITAL: Parent Issues US$500-Mln Subordinated Eurobonds ------------------------------------------------------------- Rosselkhozbank, also known as the Russian Agricultural Bank, through Luxembourg-based unit RSHB Capital S.A., has placed a 10-year US$500-million subordinated Eurobond issue, RIA Novosti says. Rosselkhozbank placed the bonds, issued at par value and 6.97% coupon rate, among 122 European and Asian companies and banks. The proceeds of the placement will be used to finance a subordinated loan. The Eurobond issue carries Baa1 rating from Moody's and BBB rating from Fitch. Barclays Capital and HSBC investment banks serve as organizer for the bond issues. About Rosselkhozbank Headquartered in Moscow, Russia, Rosselkhozbank -- http://www.rshb.ru/english-- provides banking services nationwide to over 170,000 clients, especially from the agrarian sector. Rosselkhozbank had more than RUR75 billion in assets and RUR11.3 billion in equity. * * * The company carries these ratings: Moody's: -- Long-term Baa2, positive; -- Short-term Prime-2, stable; -- Financial strength E+, stable; -- National scale Aaa.ru long-term, and -- RUS-1 short-term. Fitch: -- Long-term BBB, stable; -- Short-term F3; Support 2; -- Individual D/E; -- National Scale AAA (rus) long-term, stable. =========== P O L A N D =========== NETIA SA: Transport Minister Amends License Fee Decisions --------------------------------------------------------- Netia S.A. received the decisions of the Minister of Transport, dated Sept. 14, 2006, amending the previous decisions of: -- the Minister of Infrastructure, dated July 12, 2004; and -- the Minister of Transport and Construction, dated March 28, 2006, with regard to the deferral and promise to cancel the license fee obligations of Regionalne Sieci Telekomunikacyjne El-Net SA, a company that merged with Netia on July 31, 2006. The amendments to the decisions follow Netia's motion and enable conducting the restructuring of license fee obligations based on the capital investments incurred by Netia from January 1, 2003, to July 31, 2006. The receipt of the above decisions constitutes a significant element in the ongoing process of El-Net's license fee liabilities' cancellation. The nominal value of outstanding license fee obligations and prolongation fees amounts to EUR74.5 million and PLN25.6 million, respectively, while capital expenditures declared for the purpose of license fees conversion amount to EUR88.6 million. As reported in TCR-Europe on June 29, the El-Net S.A. received the decision of the Polish Minister of Transportation on June 26, which cancels part of outstanding obligations including: -- EUR9.17 million in local license fees, and -- PLN3.56 million in prolongation fees, in exchange for investments in the telecommunications infrastructure incurred in years 2004 and 2005. On March 21, the company obtained a decision from the Polish Minister of Transportation and Construction canceling EUR20.9 million of license fee obligations and PLN8.6 million of prolongation fees, with regard to cancellation of outstanding license fee obligations of El-Net. 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. =========== R U S S I A =========== ALEKSINSKOYE GRAIN: Court Names R. Kutlin as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Tula Region appointed Mr. R. Kutlin as Insolvency Manager for OJSC Aleksinskoye Grain Receiving Enterprise. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as A68-55/ B-06. The Arbitration Court of Tula Region is located at: Hall 35 Sovetskaya Str. 112 Tula Region Russia The Debtor can be reached at: OJSC Aleksinskoye Grain Receiving Enterprise Dzerzhinskogo Str. 21A Aleksin Tula Region Russia ASKO: Moscow Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------- The Arbitration Court of Moscow Region commenced bankruptcy supervision procedure on OJSC Insurance Company Asko. The case is docketed under Case No. A40-12190/06-86-25b. The Temporary Insolvency Manager is: D. Yablonovskaya Sovetskaya Str. 25 170100 Tver Region Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: OJSC Insurance Company Asko Mozhayskoye Shosse, 10 121374 Moscow Region Russia BUSINESS INCOME: Court Names L. Titova as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Moscow appointed Ms. L. Titova as Insolvency Manager for CJSC Business Income Expert (TIN 7722213699). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as A40-35492/ 06-74-582b. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Business Income Expert Building 4 Perovskiy Proezd 2 111021 Moscow Region Russia CBOM FINANCE: Moody's Rates Senior Unsecured Notes at B1 -------------------------------------------------------- Moody's Investors Service assigned a rating of B1 to the Loan Participation Notes to be issued on a limited recourse basis by CBOM Finance p.l.c. for the sole purpose of funding a loan to Credit Bank of Moscow. The outlook for the rating is stable. Moody's notes that the rating for the Notes is based on the fundamental credit quality of CBM -- the ultimate obligor under the transaction -- as well as on the key features of the Notes, which will constitute senior unsecured obligations of the bank. According to Moody's, the B1 long-term foreign currency rating for the Notes does not incorporate any support in the event of need from the bank's shareholders given that, while such support cannot be ruled out, its scope and timeliness are somewhat uncertain. Support from the Russian financial authorities is unlikely. Under the terms of the issue, CBM must comply with certain covenants, such as negative pledge, limitation on mergers and disposals as well as on transactions with its affiliates. In addition, it must maintain a minimum total capital adequacy ratio (CAR) of 12% and a minimum Tier-1 CAR of 8%, and its maximum single-party exposure may not exceed 25% of the bank's net asset value. The loan agreement, the Notes and the trust deed will be governed by and construed in accordance with English law, and the courts of England will have exclusive jurisdiction to settle any dispute, arising from or connected with the loan agreement. CBM is incorporated in Moscow, Russia, and reported total consolidated assets of US$747 million in accordance with US GAAP as at June 30, 2006. CONCRETE GOODS: Irkutsk Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Irkutsk Region commenced bankruptcy supervision procedure on LLC Combine of Reinforced Concrete Goods. The case is docketed as A19-15023/06-38. The Temporary Insolvency Manager is: N. Kuzakov Post User Box 357 664025 Irkutsk-25 Russia The Arbitration Court of Irkutsk Region is located at: Room 303 Gagarina Avenue 70 664025 Irkutsk Region Russia The Debtor can be reached at: LLC Combine of Reinforced Concrete Goods Korostova 20 Usolye-Sibirskoye Irkutsk Region Russia INFORM-INVEST: Court Names A. Maltabar as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Moscow appointed Mr. A. Maltabar as Insolvency Manager for CJSC Inform-Invest. He can be reached at: A. Maltabar Post User Box 619 170006 Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-22692/06-78-280B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Inform-Invest Room 2 Panfenova Str. 5 Moscow Region Russia IVANOVSKIY BAKERY: Court Names A. Provorov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Ivanovo Region appointed Mr. A. Provorov as Insolvency Manager for OJSC Ivanovskiy Bakery 4 (OGRN 1023700535528). He can be reached at: A. Provorov Post User Box 1866 153000 Ivanovo Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A17-1221/04-14-B. The Arbitration Court of Ivanovo Region is located at: B. Khmelnitskogo Str. 59B Ivanovo Region Russia The Debtor can be reached at: OJSC Ivanovskiy Bakery 4 Parizhskoy Kommuny Str. 62 153005 Ivanovo Region Russia KARAKULINO-AGRO-PROM-KHIMIYA: M. Sergeeva to Manage Assets ---------------------------------------------------------- The Arbitration Court of Udmurtiya Republic appointed Ms. M. Sergeeva as Insolvency Manager for OJSC Karakulino-Agro-Prom- Khimiya. She can be reached at: M. Sergeeva Post User Box 2194 Izhevsk 426063 Udmurtiya Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A71-17010/2005-G21. The Debtor can be reached at: OJSC Karakulino-Agro-Prom-Khimiya Kamanina Str. 50 Karakulino Karakulinskiy Region Udmurtiya Republic Russia KASHKHATAUSKIY: Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------- The Arbitration Court of Kabardino Balkariya Republic commenced bankruptcy supervision procedure on OJSC Kashkhatauskiy Tinned Food Factory. The case was docketed under Case No. A20-1202/2006. The Temporary Insolvency Manager is: E. Semenova Post User Box 153 Baysultanova Str. Nalchik Kabardino Balkariya Republic Russia The Debtor can be reached at: OJSC Kashkhatauskiy Tinned Food Factory Mechieva Str. 147 Karasu Cherekskiy Region Kabardino Balkariya Republic Russia KRASNOSELSKAYA POULTRY: Creditors Must File Claims by Oct. 12 ------------------------------------------------------------- Creditors of OJSC Krasnoselskaya Poultry Farm have until Oct. 12 to submit written proofs of claim to: O. Veretelnik, Insolvency Manager B. Tatarskaya Str. 26/28 115184 Moscow Region Russia The Arbitration Court of Kostroma Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as A31-9686/2005-18. The Debtor can be reached at: OJSC Krasnoselskaya Poultry Farm Krasnoye-na-Volge Krasnoselskiy Region Kostroma Region Russia LAKASHINSKIY DISTILLERY: V. Motorzhin to Manage Assets ------------------------------------------------------- The Arbitration Court of Ryazan Region appointed Mr. V. Motorzhin as Insolvency Manager for OJSC Lakashinskiy Distillery. He can be reached at: V. Motorzhin Building 1 Polonskogo Str. 19 390000 Ryazan Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A54-1005/2006-S1. The Arbitration Court of Ryazan Region is located at: Pochtovaya Str. 43/44 Ryazan Region Russia The Debtor can be reached at: OJSC Lakashinskiy Distillery Lakash Spasskiy Region Ryazan Region Russia MALYSHEVSKIYE EMERALDS: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Sverdlovsk Region commenced bankruptcy supervision procedure on OJSC Malyshevskiye Emeralds. The case is docketed under Case No. A60-4389/2006-S11. The Temporary Insolvency Manager is: S. Domas Post User Box 137 Taganskaya Str. 51 620051 Ekaterinburg Russia The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: OJSC Malyshevskiye Emeralds Azina Str. 1 Malysheva Asbest 624286 Sverdlovsk Region Russia MILK: Irkutsk Court Names O. Lukina as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Irkutsk Region appointed Ms. O. Lukina as Insolvency Manager for OJSC Milk (TIN 3819002278). She can be reached at: Ms. O.Lukina 440027 Irkutsk Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A19-39613/05-38. The Arbitration Court of Irkutsk Region is located at: Room 303 Gagarina Avenue 70 664025 Irkutsk Region Russia The Debtor can be reached at: OJSC Milk Burlova Str. 2 Usolye-Sibirskoye 665470 Irkutsk Region Russia MONOLITH: Court Names S. Lemeshkin as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Stavropol Region appointed Mr. S. Lemeshkin as Insolvency Manager for LLC Monolith. He can be reached at: S. Lemeshkin Uritskogo Str. 78 Zelenokumsk 357910 Stavropol Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A63-6893/06-S5. The Arbitration Court of Stavropol Region is located at: Mira Str. 4586 Stavropol Region Russia The Debtor can be reached at: LLC Monolith Soldato-Aleksandrovskoye Sovetskiy Region Stavropol Region Russia MOSENERGO: Improved Liquidity Spurs S&P to Lift Rating to B ----------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based electricity and heat generator Mosenergo (AO) to 'B' from 'B-', and its Russia national scale rating on the entity to 'ruA-' from 'ruBBB+'. The outlook is positive. "The upgrade reflects Mosenergo's improved liquidity position following the issuance of Russian ruble 5 billion of unsecured bonds," said Standard & Poor's credit analyst Eugene Korovin. "The company is using the proceeds mainly to refinance its short-term debt." The ratings are supported by: -- Mosenergo's strong competitive position in the relatively lucrative, and growing, Moscow region; -- its diversified combined heat and power generation portfolio; and -- technical limitations on competition from alternative power and heat producers. The ratings are constrained, however, by: -- unsupportive tariff regulation that is exposed to political influence, and -- the inherent risks of ongoing Russian power sector reform. Other risk factors include: -- the company's ambitious investment program that creates significant external funding requirements, and -- significant contingent liabilities. Mosenergo is the fourth-largest Russian electricity generator by installed capacity (10.6 gigawatts {GW}) and the largest by installed heat capacity (39.8 GW). Standard & Poor's expects Mosenergo to raise sufficient additional equity capital through a forthcoming share issue to finance the majority of its investment program, and that it will maintain a moderately aggressive financial profile. "The improvement of the Russian regulatory framework, and deregulation of the country's power markets, should improve Mosenergo's business profile and create additional upside potential for the rating," added Mr. Korovin. The company's credit quality could also benefit from a likely change of control, in view of the forthcoming restructuring of its 50.9% owner, vertically integrated power and heat utility RAO UES of Russia. MUROM-AGRO-TORG: Vladimir Court Starts Bankruptcy Supervision ------------------------------------------------------------- The Arbitration Court of Vladimir Region commenced bankruptcy supervision procedure on OJSC Murom-Agro-Torg. The case is docketed as A11-3724/2006-K1-147B. The Temporary Insolvency Manager is: V. Shelchkov Stroiteley Str. 39 Kovrov 601911 Vladimir Region Russia The Arbitration Court of Vladimir Region is located at: Oktyabrskiy Pr. 14 Vladimir Region Russia The Debtor can be reached at: OJSC Murom-Agro-Torg Melenkovskoye Shosse 23 Murom Vladimir Region Russia NEFTEKUMSKIY: Stavropol Bankruptcy Hearing Slated for Dec. 7 ------------------------------------------------------------ The Arbitration Court of Stavropol Region will convene at 11:00 a.m. on Dec. 7 to hear the bankruptcy supervision procedure on OJSC Meat Combine Neftekumskiy. The case is docketed under Case No.A63-8845/06-S5. The Temporary Insolvency Manager is: S. Rudomanov Krasnoflotskaya Str. 46 355003 Stavropol Region Russia The Arbitration Court of Stavropol Region is located at: Mira Str. 4586 Stavropol Region Russia The Debtor can be reached at: OJSC Meat Combine Neftekumskiy Kosmonavtov Str. Neftekumsk Stavropol Region Russia OBIDIMSKIY BRICKWORKS: V. Semochkin to Manage Assets ---------------------------------------------------- The Arbitration Court of Tula Region appointed Mr. V. Semochkin as Insolvency Manager for OJSC Obidimskiy Brickworks. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as A68-208/ B-06. The Arbitration Court of Tula Region is located at: Hall 35 Sovetskaya Str. 112 Tula Region Russia The Debtor can be reached at: OJSC Obidimskiy Brickworks Leninskiy Region Tula Region Russia POLYGRAPH-MASH: Court Sets Bankruptcy Hearing for Oct. 16 --------------------------------------------------------- The Arbitration Court of Dagestan Republic will convene at 10:00 a.m. on Oct. 16 to hear the bankruptcy supervision procedure on OJSC Polygraph-Mash. The case is docketed as A15-773/2006. The Temporary Insolvency Manager is: D. Ramazanov Umakhanova Str. 12 Makhachkala Dagestan Republic Russia The Debtor can be reached at: OJSC Polygraph-Mash Shamilya Pr. 4 Kizilyurt Dagestan Republic Russia PRIOKSKAYA FUEL: Court Names E. Bogdanov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Ryazan Region appointed Mr. E. Bogdanov as Insolvency Manager for OJSC Priokskaya Fuel Company. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as A54-2694/ 2006-S1. The Arbitration Court of Ryazan Region is located at: Pochtovaya Str. 43/44 Ryazan Region Russia The Debtor can be reached at: OJSC Priokskaya Fuel Company Ryazan Region Russia ROSNEFT: Russia Eyes Full Privatization in 3-10 Years, Aid Says --------------------------------------------------------------- The Russian government is planning to privatize state-owned oil company OAO Rosneft in the near future, says RIA Novosti citing presidential aide Igor Shuvalov. "Rosneft will be privatized in full sooner or later . . . in the next three to 10 years," Mr. Shuvalov told RIA Novosti. Mr. Shuvalov said the government would limit the stakes of investors up to 10% in Rosneft. Rosneft went public on both London and Moscow stock exchanges on July 19, raising US$10.4 billion. Largest subscribers include U.K.'s BP PLC (US$1 billion), Malaysia's Petroliam Nasional Berhad (US$1.5 billion), and China National Petroleum Corporation (US$500 million). About Rosneft Headquartered in Moscow, Russia, OAO Rosneft -- http://www.rosneft.ru/eng-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * As reported in TCR-Europe on Aug. 2, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Russia-based OJSC Oil Company Rosneft to 'BB' from 'B+'. S&P said the outlook is stable. ROSSELKHOZBANK: Issues US$500-Million Subordinated Eurobonds ------------------------------------------------------------ Rosselkhozbank, also known as the Russian Agricultural Bank, through Luxembourg-based unit RSHB Capital S.A., has placed a 10-year US$500-million subordinated Eurobond issue, RIA Novosti says. Rosselkhozbank placed the bonds, issued at par value and 6.97% coupon rate, among 122 European and Asian companies and banks. The proceeds of the placement will be used to finance a subordinated loan. The Eurobond issue carries Baa1 rating from Moody's and BBB rating from Fitch. Barclays Capital and HSBC investment banks serve as organizer for the bond issues. About Rosselkhozbank Headquartered in Moscow, Russia, Rosselkhozbank -- http://www.rshb.ru/english-- provides banking services nationwide to over 170,000 clients, especially from the agrarian sector. Rosselkhozbank had more than RUR75 billion in assets and RUR11.3 billion in equity. * * * The company carries these ratings: Moody's: -- Long-term Baa2, positive; -- Short-term Prime-2, stable; -- Financial strength E+, stable; -- National scale Aaa.ru long-term, and -- RUS-1 short-term. Fitch: -- Long-term BBB, stable; -- Short-term F3; Support 2; -- Individual D/E; -- National Scale AAA (rus) long-term, stable. RUSSIAN FLAX: Court Names N. Tkachenko as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Moscow appointed Mr. N. Tkachenko as Insolvency Manager for CJSC Russian Flax. He can be reached at: N. Tkachenko M. Ekaterininskaya Str. 17/21 129110 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as A40-27314/ 06-103-443B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Russian Flax M. Ekaterininskaya Str. 17/21 129110 Moscow Region Russia SEMENOVSKOYE: Moscow Bankruptcy Hearing Slated for Nov. 15 ---------------------------------------------------------- The Arbitration Court of Moscow Region will convene at 2:00 p.m. on Nov. 15 to hear the bankruptcy supervision procedure on CJSC Semenovskoye. The case is docketed as A41-K2-12140/06. The Temporary Insolvency Manager is: A. Yastrebov Post User Box 12 115597 Moscow Region Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Semenovskoye Semenovskoye. Mozhayskiy Region 143273 Moscow Region Russia SENGILEEVSKIY WOOD: O. Berdnikova to Manage Insolvency Assets ------------------------------------------------------------- The Arbitration Court of Ulyanovsk Region appointed Ms. O. Berdnikova as Insolvency Manager for State Enterprise Sengileevskiy Wood Combine. She can be reached at: O. Berdnikova Office 408A Goncharova Str. 32A 432063 Ulyanovsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as A72-1765/ 06-19/22-B. The Debtor can be reached at: State Enterprise Sengileevskiy Wood Combine Krasnoarmeyskaya Str. 53 Sengiley Ulyanovsk Region Russia STONE WORKING: Court Names I. Nesterov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Saratov Region appointed Mr. I. Nesterov as Insolvency Manager for OJSC Stone Working. He can be reached at: I. Nesterov Post User Box 147 Balakovo-23 413863 Saratov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A57-389B/05-23. The Arbitration Court of Saratov Region is located at: Babushkin Vvoz 1 Saratov Region Russia The Debtor can be reached at: OJSC Stone Working Balakovo Saratov Region Russia STROY-INVEST: Creditors Must File Claims by October 12 ------------------------------------------------------ Creditors of CJSC Stroy-Invest have until Oct. 12 to submit written proofs of claim to: S. Galakhov, Insolvency Manager Pugacheva Str. 93 302004 Orel Region Russia The Arbitration Court of Orel Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as A48-2608/06-16b. The Arbitration Court of Orel Region is located at: Gorkogo Str. 42 302000 Orel Region Russia The Debtor can be reached at: CJSC Stroy-Invest Komsomolskaya Str. 231 Orel Region Russia SUVOROV: Tambov Court Starts Bankruptcy Supervision --------------------------------------------------- The Arbitration Court of Tambov Region commenced bankruptcy supervision procedure on CJSC Named After Suvorov. The case was docketed as A64-3214/06-10. The Temporary Insolvency Manager is: A. Khludentsov Magistralnaya Str. 4 392024 Tambov Region Russia The Debtor can be reached at: CJSC Named After Suvorov Ulyanovka Uvarovskiy Region Tambov Region Russia SUVOROVSKIY SECONDARY: O. Trynkova to Manage Insolvency Assets -------------------------------------------------------------- The Arbitration Court of Tula Region appointed Ms. O. Trynkova as Insolvency Manager for LLC Suvorovskiy Secondary Metal (TIN 7133002225). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as A68-2230/ 06-217/B. The Arbitration Court of Tula Region is located at: Hall 35 Sovetskaya Str. 112 Tula Region Russia The Debtor can be reached at: LLC Suvorovskiy Secondary Metal Suvorov 201430 Tula Region Russia TOMSKAYA ENERGY: Court Names A. Maltabar as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. A. Maltabar as Insolvency Manager for CJSC Tomskaya Energy Company. He can be reached at: A. Maltabar Post User Box 619 170006 Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-17848/06-71-161B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Tomskaya Energy Company Filevskiy Avenue 21 Moscow Region Russia VECTOR: Ryazan Bankruptcy Hearing Slated for Nov. 21 ---------------------------------------------------- The Arbitration Court of Ryazan Region will convene at 11:30 a.m. on Nov. 21 to hear the bankruptcy supervision procedure on OJSC Vector. The case is docketed under Case No. A54-2828/ 06-S6. The Temporary Insolvency Manager is: G. Bogdanova Letter O Mayakovskogo Str. 1a 390046 Ryazan Region Russia The Arbitration Court of Ryazan Region is located at: Pochtovaya Str. 43/44 Ryazan Region Russia The Debtor can be reached at: OJSC Vector Gagarina Str. 26 Voslebovo Skopinskiy Region 391833 Ryazan Region Russia VIMPELCOM OJSC: Elects Alexander Izosimov to Continue as CEO ------------------------------------------------------------ OJSC Vimpel-Communications decided to enter into a new two-year employment agreement with its current CEO Alexander Izosimov, following a majority vote by its Board of Directors. After being informed of the Board's vote by David J. Haines, the Chairman of the Board of Directors, Mr. Izosimov agreed to continue to serve as VimpelCom's CEO. Following Thursday's Board meeting, Mr. Haines expressed his pleasure that a solution was reached which enabled VimpelCom to retain the services of Mr. Izosimov. "I am pleased that Alexander has agreed to stay on and I am very confident that Alexander will continue to lead this company in the same successful manner as he has in the past. While it is regrettable that we were unable to get all the members of the Board to unanimously agree on the decision to keep Alexander, I am convinced that we, as a Board, have arrived at the best possible solution for the Company, its shareholders and employees and its more than 50 million customers." After being informed of the Board's decision, Mr. Izosimov stated that, "I look forward to continuing my duties as CEO of VimpelCom and remain fully committed." He added that, "clearly today's vote demonstrates that there are still issues which need to be resolved among the Board and VimpelCom's strategic shareholders. However, I truly appreciate the support I have received from a majority of the Board." Mr. Izosimov will continue in office as CEO in accordance with Russian law as he was neither dismissed nor reappointed as CEO at today's meeting by the 80% vote of the Board required under the Company's charter. Certain members of the Board or shareholders of the Company may disagree with and challenge this interpretation of Russian law. The Company intends to vigorously contest any challenges. Headquartered in Moscow, Russia, VimpelCom -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. * * * As reported in TCR-Europe on Feb. 16, Standard & Poor's Ratings Services said that its ratings and outlook on Russian mobile telecommunications operator Vimpel-Communications (VimpelCom; BB/Positive/--) are unaffected by the company's announcement that it has launched a bid for Ukraine-based mobile telecommunications operator CJSC Kyivstar GSM (BB-/Watch Positive/--) for a consideration of US$5 billion in VimpelCom common registered shares plus assumed debt. WEEAVING-MILL: Court Names A. Lyasman as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Omsk Region appointed Ms. A. Lyasman as Insolvency Manager for LLC Weeaving-Mill. She can be reached at: A. Lyasman Kuybysheva Str. 81-103 644010 Omsk-10 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A46-8250/2006. The Debtor can be reached at: LLC Weeaving-Mill Kirova Str. 2 Kalachinsk 646900 Omsk Region Russia * Fitch Revises Lipetsk's Outlook to Stable & Affirms BB- Rating ---------------------------------------------------------------- Fitch Ratings changed the Russian Region of Lipetsk's Long-term rating and National rating Outlooks to Stable from Positive. The ratings are affirmed at Long-term foreign and local currency BB- and Short-term B. The National Long-term rating is affirmed at AA-. The change in Outlook reflects the deterioration in the region's budgetary performance as a result of a revenue decline in its largest taxpayer, the Novolipetsk steel smelting plant. The regional economy is heavily weighted towards ferrous metallurgy, and NLMK is the single largest contributor to the regional budget. The dominance of a single taxpayer leaves the budget vulnerable to the fluctuations of market conditions for NLMK. The metal market price conditions deteriorated last year, resulting in a 30% decline in operating profit before tax for NLMK in 2005 and a further 15% decline in H106. The region's budgetary performance deteriorated in 2005 with operating and current margins declining to 3.9% and 4.1% respectively from 38% in 2004. The operating revenue growth has fallen sharply to 6.3% from average of 50% in the 2002-2004 period while the operating expenditure growth rate doubled to 64.9% in 2005 from 33.6% in 2004. Social expenditure pressure on the regional budget has increased as the region acquired new responsibilities for financing social allowances and other social expenses. Healthcare and sports expenditure increased 76% in 2005 while education spending grew 115%. As a result the region recorded budget deficit and was forced to resort to debt issuance. At the same time, the region has been successful in attracting foreign capital including foreign direct investment. In 2005 the total volume of foreign capital invested in the region exceeded US$1.2 billion. The region is home to Italy's "Indesit International" factory, which has also constructed a logistics center in the region and created the largest industrial home appliance- producing area in Europe. Contrary to budgeted operating and current balance deficits in 2006, the region demonstrated a recovery in its budgetary performance during H106, recording positive operating and current margins of 15.2% and 15.1% respectively. The debt burden of the region remains manageable with total debt reaching 3.7% of revenue in 2005 and is projected to reach 11.1% by end- 2006. The interest expense and debt servicing remained below 1% of operating and current revenue respectively during the last two years. The Region of Lipetsk is located in the center of the European part of Russia and accounts for 1.0% of the GDP and 0.8% of country's total population. ========= S P A I N ========= MILACRON CORP: Contributes US$30 Million to Pension Obligation -------------------------------------------------------------- Milacron Inc. launched a voluntary advance contribution to its U.S.-defined benefit plan of approximately US$30 million on Sept. 15. Credit for this pre-funding will eliminate any contributions required in 2007, currently estimated at approximately US$57 million. Milacron raised the bulk of the prepayment, approximately US$18 million, through the liquidation of investments for non- qualified retirement plans for executives. The company also used approximately US$2 million in proceeds from the recent sale of a previously closed facility as well as approximately US$6 million in cash repatriated from outside the U.S. The balance, approximately US$4 million, was borrowed through its revolving credit facility. Milacron is currently in the process of selling various other non-core, non-operating assets such as land, facilities and equipment made redundant through current and previous consolidations. Headquartered in Cincinnati, Ohio, Milacron Inc. (NYSE: MZ) -- http://www.milacron.com/-- is a leading global manufacturer and supplier of plastics-processing equipment and related supplies. Milacron is also one of the largest global manufacturers of synthetic water-based industrial fluids used in metalworking applications. The company has major manufacturing facilities in Brazil, North America, Europe, and Asia. In Europe, the company maintains operations in Belgium, Germany, Italy, the Netherlands, Spain, and England. Milacron's annual revenues approximated US$805 million over the last twelve months. * * * As reported in the Troubled Company Reporter on Jan. 12, 2006, Moody's Investors Service affirmed the Caa1 corporate family ratings of Milacron Inc. and the Caa1 rating of the Company's US$225 million of 11.5% guaranteed senior secured notes due 2011. ===================== S W I T Z E R L A N D ===================== BOOKHAM INC: Investors Buy 2.8-Mln Shares in Private Placement -------------------------------------------------------------- Bookham Inc. disclosed Tuesday that certain institutional investors have exercised their right to purchase 2,898,667 shares of common stock and warrants to purchase up to 724,667 shares of common stock pursuant to a second closing of a private placement contemplated by a securities purchase agreement dated Aug. 31, 2006. In the initial closing on Sept. 1, 2006, investors purchased 8,696,000 newly issued shares of common stock at US$2.70 per share, and warrants to purchase up to 2,174,000 shares of common stock. The warrants have a term of five years and become exercisable after March 1, 2007, at an exercise price of US$4.00 per share. In the second closing, Bookham will receive additional gross proceeds of US$7.9 million resulting in total gross proceeds of US$31.4 million for this private placement. Cowen and Company, LLC, acted as the sole placement agent for this offering. Pursuant to an agreement with the investors, the Company will file a registration statement with the U.S. Securities and Exchange Commission covering the resale of the shares of common stock issued to the investors as well as the shares of common stock issuable upon exercise of the warrants, subject to certain terms and conditions. The securities offered in the private placement were not registered under the Securities Act of 1933, as amended or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act and applicable state securities laws. About Bookham Inc. Bookham, Inc. -- http://www.bookham.com/-- designs, manufactures and markets optical components, modules and subsystems that generate, detect, amplify, combine and separate light signals principally for use in high-performance fiber optics communications networks. The Company has manufacturing facilities in the UK, US, Canada, China and Switzerland; and offices in the US, UK, Canada, France and Italy and employs approximately 2000 people worldwide. BOOKHAM INC: Ernst & Young Raises Going Concern Doubt ----------------------------------------------------- Ernst & Young LLP expressed substantial doubt about Bookham, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the fiscal year ended July 1, 2006. The auditing firm pointed to the Company's recurring operating losses. Bookham posted an US$87.5 million net loss for the fiscal year ended July 1, 2006, compared with a net loss of US$248 million in fiscal 2005. Net revenue for fiscal 2006 was US$231.6 million, compared with US$200.3 million in fiscal 2005. "We achieved 16% revenue growth in fiscal 2006 and significantly improved our overall financial structure with the elimination of our long-term debt," said Dr. Giorgio Anania, president and chief executive officer of Bookham. "On the operations front, we extended our supply agreement with Nortel through calendar 2006 and completed the move of our assembly and test manufacturing to Shenzhen, which is already delivering better performance and substantial cost savings. In addition, we introduced several new products, including wideband tunable laser products, next generation high power 980 pumps, new optical amplifiers and extended temperature XFPs and SFP DWDM transceiver products, all of which, we believe, will be key to our revenue growth in fiscal 2007." Revenue in the fourth quarter of fiscal 2006 was US$55 million, compared with US$53.4 million in the third quarter of fiscal 2006 and US$61 million in the fourth quarter of fiscal 2005. Revenue from customers other than Nortel increased 25% sequentially to $36.5 million from US$29.3 million last quarter. Revenue from Nortel in the fourth quarter declined as previously forecast to $18.5 million compared with US$24.1 million in the prior quarter. Net loss in the fourth quarter was US$270 million. Included in fourth quarter GAAP net loss are restructuring charges of approximately US$5.2 million. Fourth quarter net loss compares with a net loss of US$48 million in the third quarter and a net loss of US$39 million in the fourth quarter of fiscal 2005. "We are making good progress on the cost reduction plans we announced in May. Our lasers prototype line with associated engineering support will be transferring to our Shenzhen, China facility in the August to October timeframe, and our chip-on- carrier line will be starting up in Shenzhen in September with the move to be completed before year-end. We are also in the process of transferring a certain number of development, manufacturing support and administrative functions to Shenzhen to continue driving down our overhead cost structure. This will result in significant reductions in Western-world staff, especially in our Paignton, U.K. site, which will occur between the middle of August and November of this year," said Dr. Anania. "We initially expected these moves would result in quarterly cost savings of between US$5 million and US$6 million per quarter. We now expect cost savings of about US$4 million per quarter in the December quarter with an additional US$1.5 million to US$2.5 million achieved by the March 2007 quarter," added Dr. Anania. A full-text copy of the Company's annual report is available for free at http://researcharchives.com/t/s?11fa Outlook and Guidance "The market outlook for telecom optical components remains strong and as a key player in the telecom optical components space we are experiencing the benefits from this positive momentum," said Dr. Anania. "We are seeing solid demand for our new products and believe this will translate into additional growth for these products over the next several quarters." About Bookham Inc. Bookham, Inc. -- http://www.bookham.com/-- designs, manufactures and markets optical components, modules and subsystems that generate, detect, amplify, combine and separate light signals principally for use in high-performance fiber optics communications networks. The Company has manufacturing facilities in the UK, US, Canada, China and Switzerland; and offices in the US, UK, Canada, France and Italy and employs approximately 2000 people worldwide. ============= U K R A I N E ============= AES CORP: Regulator's Study on Concession Requests Almost Done -------------------------------------------------------------- An official of Autoridad Nacional de los Servicios Publicos or ANSP -- Panama's public service regulator -- told Business News Americas that the agency's review on AES Corp.'s three hydroelectric concession requests is almost done. BNamericas relates that the official said the projects, which would use water from the Changuinola River in Bocas del Toro, are: -- 158-megawatt Gavilan, -- 132-megawatt Cauchero II, and -- 126-megawatt Chan-220. The official told BNamericas that ANSP will award the concessions soon. In general terms, once a concession has been awarded, the developer has a year to finalize project details and up to four years to construct the project. A report posted in AES Corp.'s Web site says that the firm currently runs four hydro plants with 470-megawatt total installed capacity and one 43-megawatt thermal plant. About the Company AES Corporation -- http://www.aes.com/-- is a global power company. The Company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the Company delivers electricity through 15 distribution companies. AES has been in Eastern Europe for nearly ten years, since it acquired three power plants in Hungary in 1996. Today, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * As reported in the Troubled Company Reporter on May 25, Fitch affirmed The AES Corporation's Issuer Default Rating at 'B+'. Fitch also affirmed and withdrew the ratings for the company's junior convertible debt. Fitch said the rating outlook for all remaining instruments is stable. In March, Standard & Poor's Ratings Services raised its corporate credit rating on diversified energy company The AES Corp. to 'BB-' from 'B+'. S&P said the outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, Moody's affirmed the ratings of The AES Corporation, including its Ba3 Corporate Family Rating and the B1 rating on its senior unsecured debt. Moody's said the rating outlook remains stable. AVTOSHTAMP: Kirovograd Court Names V. Kosarenko as Liquidator ------------------------------------------------------------- The Economic Court of Kirovograd Region appointed Mr. V. Kosarenko as Liquidator/Insolvency Manager for CJSC Avtoshtamp (code EDRPOU 14368956). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 4. The case is docketed under Case No. 10/155. The Economic Court of Kirovograd Region is located at: Lunacharski Str. 29 25006 Kirovograd Region Ukraine The Debtor can be reached at: CJSC Avtoshtamp Yoganson Lane 1 Oleksandriya Kirovograd Region Ukraine EUROLANDER: Kyiv Court Names Yurij Bilik as Insolvency Manager -------------------------------------------------------------- The Economic Court of Kyiv Region appointed Yurij Bilik as Liquidator/Insolvency Manager for LLC Eurolander (code EDRPOU 32138037). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 337/3b-05/14. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Eurolander V. Kiltseva Str. 4-b Kiyevo-Svyatoshinskij District Kyiv Region Ukraine FORTUNA: Court Names Igor Ivanishin as Insolvency Manager --------------------------------------------------------- The Economic Court of Ivano-Frankivsk Region appointed Igor Ivanishin as Liquidator/Insolvency Manager for LLC Fortuna (code EDRPOU 32295139). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 20. The case is docketed under Case No. B-7/41-19/227. The Economic Court of Ivano-Frankivsk Region is located at: Shevchenko Str. 16a 76000 Ivano-Frankivsk Region Ukraine The Debtor can be reached at: LLC Fortuna Brin Galitskij District Ivano-Frankivsk Region Ukraine INDEXBANK: Moody's Keeps E+ Financial Strength Rating ----------------------------------------------------- Moody's Investors Service upgraded the global local currency long-term and short-term deposit ratings of Indexbank (Ukraine) to Baa1/P-2 as result of the successful acquisition of a 99.9% stake of the latter by Credit Agricole. The global foreign currency deposit ratings and E+ Financial Strength Rating remain unchanged. The outlook for all the bank's ratings is stable. At the same time, Moody's has assigned a long-term national scale rating of Aaa.ua, which corresponds to the bank's Baa1 long-term local currency rating. According to Moody's, the upgrade reflects an increased likelihood of support from the financially sound and experienced new controlling shareholder. The global long-term foreign currency deposit rating remains constrained by Ukraine's B2 foreign currency deposit ceiling. The bank's global foreign currency long-term rating would be likely to be upgraded as a result of a rise in Ukraine's foreign currency deposit ceiling. The E+ FSR is likely to benefit from the acquisition, although not in the short run, as the bank's restructuring and the development of the new strategy still have to take place and the outcome is yet to be seen. At the current stage a negative rating action is not very likely, unless in the case of a significant asset quality problem, or losses caused by operational risk stemming from the previous uncontrolled growth. Indexbank is headquartered in Kyiv, Ukraine, and as of Dec. 31, 2005 reported total assets of US$448 million and equity of US$34 million under IFRS. KONOTOP ELECTRIC-MECHANICAL: Court Starts Bankruptcy Supervision ---------------------------------------------------------------- The Economic Court of Sumi Region commenced bankruptcy supervision procedure on OJSC Konotop Electric-Mechanical Plant (code EDRPOU 31716652) on July 21. The case is docketed under Case No. 12/106-05. The Temporary Insolvency Manager is: Boris Krivenko Nezalezhnosti Square 1 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 Konotop Electric-Mechanical Plant Chervonozavodska Str. 5 Konotop 41600 Sumi Region Ukraine KOSMETIC TRADE: Court Names Igor Ferberov as Insolvency Manager --------------------------------------------------------------- The Economic Court of Donetsk Region appointed Igor Ferberov as Liquidator/Insolvency Manager for LLC Kosmetic Trade (code EDRPOU 30189933). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 10. The case is docketed under Case No. 27/67 b. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Kosmetic Trade Eryomenko Str. 24/1-a 83007 Donetsk Region Ukraine KURAHOVEENRGOBUD: Donetsk Court Starts Bankruptcy Supervision ------------------------------------------------------------- The Economic Court of Donetsk Region commenced bankruptcy supervision procedure on Building-Erection Department Kurahoveenrgobud (code EDRPOU 00119793) on Aug. 2. The case is docketed under Case No. 42/157 B. The Temporary Insolvency Manager is: Vitalij Paterilov a/b 6915 83050 Donetsk Region Ukraine The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: Building-Erection Department Kurahoveenrgobud Plehanov Str. 1 Kurahove Maryinskij District 85612 Donetsk Region Ukraine NAFTOGAZ UKRAINY: Posts US$368 Million Loss for 2005 ---------------------------------------------------- NJSC Naftogaz Ukrainy has released its audited financial results for the year ended Dec. 31, 2005, RIA Novosti says. Naftogaz posted UAH1.842 billion (US$368 million) in losses for 2005. The figure was better than forecasted by ratings agency Fitch, which said losses could reach as high as US$1 billion, RIA Novosti reports. As of Dec. 31, 2005, Naftogaz had -UAH9.014 billion (-US$1.8 billion) in net current assets. The figure includes UAH5.168 billion (US$1 billion) in tax arrears. In 2005, Naftogaz almost doubled it long-term loans to UAH7.862 billion (US$1.37 billion). The company took around US$1 billion in loans from foreign banks to fund its operations, make investments, and repay short-term debt. The company, RIA Novosti reports, accumulated US$700 million in debts for natural gas supplied by Gazprom unit RosUkrEnergo in February and March, after Ukraine's Finance Ministry rejected a price hike proposal. The rejection forced Naftogaz to sell imported gas at prices lower than the acquisition price, spurring US$500-US$600 million in losses for the first quarter of 2006. As reported in TCR-Europe on Sept. 14, Gazprom is mulling to hike its gas prices in Ukraine after sealing a deal early this month with Turkmenistan. Under the contract, Gazprom will buy 50 billion cubic meters of gas from Turkmenistan at US$100 per 1,000 cubic meters, up from previous price of US$65 per 1,000 cubic meters. With the higher cost, Gazprom is demanding that Ukraine's Naftogaz pay between US$135 and US$140 per 1,000 cubic meters of gas. Naftogaz, however, is offering to repay US$322 million debt in three installments: -- US$150 million on Sept. 17, -- US$150 million on Sept. 25, and -- US$22 million in early October. to keep the gas prices at US$95 in the fourth quarter of 2006. About Naftogaz Ukrainy Headquartered in Kiev, Ukraine, NJSC Naftogaz Ukrainy -- http://www.naftogaz.com/-- processes gas, oil and condensate at the Company's five gas processing plants, which produce LPG, motor fuels and other types of petroleum products. Over 97% of the oil and gas in Ukraine is produced by the enterprises of the Company. In 2005, NJSC Naftogaz of Ukraine produced one-seventh of the gross domestic product of Ukraine and brought US$2.25 billion in state budget revenues. The Company employs around 170,000 people, roughly one percent of Ukraine's working population. * * * As reported in TCR-Europe on May 26, Moody's Investor Service upgraded Naftogaz's Corporate Family Rating (foreign currency) to Ba3 from B1, with Stable Outlook. Moody's also affirmed the group's Ba2 Senior Unsecured Debt Rating. As reported in TCR-Europe on April 26, Fitch Ratings lowered OJSC Naztogaz of Ukraine's local and foreign currency Issuer Default Ratings to B+ from BB- due to the company's deteriorating financial condition. The Outlooks for the IDRs remain Negative. The senior unsecured rating on the company's US$500 million Eurobond maturing in 2007 is also downgraded to B+ from BB-. NIZHNYOGIRSKE RTP: AR Krym Court Names Vasil Kuhta as Liquidator ---------------------------------------------------------------- The Economic Court of AR Krym Region appointed Vasil Kuhta as Liquidator/Insolvency Manager for OJSC Nizhnyogirske RTP (code EDRPOU 03565582). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 3. The case is docketed under Case No. 2-6/3220-2006. The Economic Court of AR Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region Ukraine The Debtor can be reached at: OJSC Nizhnyogirske RTP Zhelyabovka Nizhnyogirskij District Pridorozhnya Str. 24 96033 AR Krym Region Ukraine NOVO SVIT: Kyiv Court Names Yurij Bilik as Liquidator ----------------------------------------------------- The Economic Court of Kyiv Region appointed Yurij Bilik as Liquidator/Insolvency Manager for LLC Novo Svit (code EDRPOU 32227294). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 3. The case is docketed under Case No. 242/14b-05. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Novo Svit Lesya Ukrainka Str. 64 Vishneve Kiyevo-Svyatoshinskij District Kyiv Region Ukraine PEREMOGA: Court Names Yevgenij Shtepenko as Insolvency Manager -------------------------------------------------------------- The Economic Court of Poltava Region appointed Yevgenij Shtepenko as Liquidator/Insolvency Manager for LLC Peremoga (code EDRPOU 31327709). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 6. The case is docketed under Case No. 18/157. The Economic Court of Poltava Region is located at: Zigina Str. 1 36000 Poltava Region Ukraine The Debtor can be reached at: LLC Peremoga Giryavi Iskivtsi Lohvitskij District Poltava Region Ukraine VEZUVIJ: Kyiv Court Names Yurij Bilik as Insolvency Manager ----------------------------------------------------------- The Economic Court of Kyiv Region appointed Yurij Bilik as Liquidator/Insolvency Manager for LLC Vezuvij (code EDRPOU 31425441). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 123/14b-06. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Vezuvij Balukov Str. 6 Vishneve Kiyevo-Svyatoshinskij District Kyiv Region Ukraine =========================== U N I T E D K I N G D O M =========================== ADVANCED SCAFFOLDING: Joint Liquidators Take Over Operations ------------------------------------------------------------ John C. Sallabank and Paul R. Boyle of Harrisons were appointed Joint Liquidators of Advanced Scaffolding (NW) Limited on Aug. 22 for the creditors' voluntary winding-up procedure. The company can be reached at: Advanced Scaffolding (NW) Limited 216-222 County Road Walton Liverpool Merseyside L4 5PJ United Kingdom Tel: 0151 523 9100 ALBION SPRING: Metal Spring Manufacturer up for Sale ---------------------------------------------------- Rob Hunt and Mark Hopkins, Joint Administrative Receivers, offer for sale the business and assets of Albion Spring Company Limited. Albion Spring is a long established West Bromwich-based company. The group manufactures springs, clips and pressings for the automotive, medical, white goods and pharmaceutical sectors. The assets for sale features: -- GBP2 million in annual turnover; -- established customer base; -- skilled workforce; and -- plant and machinery. Inquiries can be addressed to: Scott Bevan Paul Edwards PricewaterhouseCoopers LLP Cornwall Court 19 Cornwall Street Birmingham B3 2DT United Kingdom Tel: 0121 200 3000 Fax: 0121 265 5650 PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides, among others, auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. ASHAMOOR LIMITED: Names Andrew T. Clay as Liquidator ---------------------------------------------------- Andrew T. Clay Andrew Michaels & Co. Ltd. was named liquidator of Ashamoor Limited on Aug. 11 for the purposes of the creditors' voluntary winding-up procedure. The company can be reached at: Ashamoor Limited 7 Walsall Street Willenhall West Midlands WV13 2ES United Kingdom Tel: 01902 637 072 AVIALL INC: Completes US$1.7-Bln Merger Agreement with Boeing ------------------------------------------------------------- The Boeing Company has concluded its purchase of Aviall Inc., the largest independent provider of new aviation parts and related aftermarket services in the aerospace industry. Aviall supports Boeing's strategy of providing a wide array of value-added products and services that helps commercial and military customers operate more efficiently. Boeing has purchased Aviall Inc. for US$48 per share or US$1.7 billion, plus the assumption of debt, net of cash existing on Aviall's balance sheet, of US$448 million. Aviall's capabilities include global parts distribution and supply chain services for aerospace, defense and marine industries worldwide. "We are excited to welcome the Aviall team to Boeing," said Lou Mancini, vice president and general manager of Boeing Commercial Aviation Services. "We will add Aviall's great products and people to our expanding Integrated Materials Management program that is so important to our customers." "We are delighted to become part of The Boeing Company," said Paul Fulchino, chairman, president and chief executive officer of Aviall. "Our combined industry knowledge creates a dynamic team that will continue to enable our customers to achieve greater efficiency, operational savings and profitability." Aviall will report to Boeing Commercial Aviation Services and operate as a wholly owned subsidiary. Commercial Aviation Services offers Integrated Materials Management services to airline customers. Through this program, Boeing and selected suppliers maintain an airline's inventory of maintenance supplies - including spare parts - and provide items only as needed, reducing the airline's cost and complexity of doing business. Aviall's parts ordering and supply chain management capabilities will also be utilized by Boeing's Integrated Defense Systems' Support Systems business. "This is an exciting time for Boeing with the addition of Aviall's capabilities," said Pat Finneran, president of Support Systems. "Their strengths and abilities are well aligned with our current business strategies and I look forward to leveraging our combined strengths to improve our supply chain services for our customers." Headquartered in Dallas, U.S.A., with customer service centers located in North America, Europe and Asia, Aviall Inc. (NYSE: AVL) -- http://www.aviall.com/-- is the world's largest independent provider of new aviation parts and related aftermarket services. Aviall markets and distributes products for approximately 220 manufacturers and offers approximately 700,000 catalog items. Aviall also offers a full line of aviation batteries, hoses, wheels and brakes, and paint services. * * * As reported in the Troubled Company Reporter on May 3, 2006, Standard & Poor's Ratings Services placed its ratings on Aviall Inc., including the 'BB' corporate credit rating, on CreditWatch with positive implications. As reported in the Troubled Company Reporter on Mar. 22, 2006, Moody's Investors Service raised the ratings Aviall, Inc., Corporate Family Rating to Ba2 from Ba3, prompted by a continuing trend towards improvement in operating results as well as by the company's recent successful win of a long term distribution agreement with Smiths Aerospace LLC. The rating outlook has been changed to stable from positive. AVIALL INC: Acquisition Prompts S&P to Withdraw Ratings ------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings, including the 'BB' corporate credit rating, on Aviall Inc. and removed the ratings from CreditWatch, where they were placed with positive implications on May 1. The aircraft parts distributor was acquired by Boeing Co. for US$2 billion and its rated debt has been repaid. B J ROLAND: Brings In Joint Liquidators from Portland Business -------------------------------------------------------------- Carl Derek Faulds and Peter Robin Bacon of Portland Business & Financial Solutions Ltd. were appointed Joint Liquidators of B J Roland Management Company Limited on July 21 for the creditors' voluntary winding-up procedure. The company can be reached at: B J Roland Management Company Limited 2 Eastern Industrial Centre Jackson Close Portsmouth PO6 1QW United Kingdom Tel: 023 9238 5595 BENSONMILL LIMITED: Taps Lloyd Biscoe to Liquidate Assets --------------------------------------------------------- Lloyd Biscoe of Begbies Traynor was appointed Liquidator of Bensonmill Limited on Aug. 15 for the creditors' voluntary winding-up procedure. The company can be reached at: Bensonmill Limited 47 Thundersley Grove Benfleet Essex SS7 3EB United Kingdom Tel: 01268 799496 BOFF LIMITED: Appoints Joint Liquidators to Wind Up Business ------------------------------------------------------------ Richard Frank Simms and Martin Richard Buttriss of Insol House were appointed Joint Liquidators of Boff Limited (formerly Digital Marketing Limited and Visuality 2000 Limited) on Aug. 17 for the creditors' voluntary winding-up procedure. The company can be reached at: Boff Limited 24 Wells Street London W1T 3PH United Kingdom Tel: 020 7580 8922 Fax: 020 7580 8933 Web: http://www.boffgroup.com/ BOOKHAM INC: Investors Buy 2.8-Mln Shares in Private Placement -------------------------------------------------------------- Bookham Inc. disclosed Tuesday that certain institutional investors have exercised their right to purchase 2,898,667 shares of common stock and warrants to purchase up to 724,667 shares of common stock pursuant to a second closing of a private placement contemplated by a securities purchase agreement dated Aug. 31, 2006. In the initial closing on Sept. 1, 2006, investors purchased 8,696,000 newly issued shares of common stock at US$2.70 per share, and warrants to purchase up to 2,174,000 shares of common stock. The warrants have a term of five years and become exercisable after March 1, 2007, at an exercise price of US$4.00 per share. In the second closing, Bookham will receive additional gross proceeds of US$7.9 million resulting in total gross proceeds of US$31.4 million for this private placement. Cowen and Company, LLC, acted as the sole placement agent for this offering. Pursuant to an agreement with the investors, the Company will file a registration statement with the U.S. Securities and Exchange Commission covering the resale of the shares of common stock issued to the investors as well as the shares of common stock issuable upon exercise of the warrants, subject to certain terms and conditions. The securities offered in the private placement were not registered under the Securities Act of 1933, as amended or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act and applicable state securities laws. About Bookham Inc. Bookham, Inc. -- http://www.bookham.com/-- designs, manufactures and markets optical components, modules and subsystems that generate, detect, amplify, combine and separate light signals principally for use in high-performance fiber optics communications networks. The Company has manufacturing facilities in the UK, US, Canada, China and Switzerland; and offices in the US, UK, Canada, France and Italy and employs approximately 2000 people worldwide. BOOKHAM INC: Ernst & Young Raises Going Concern Doubt ----------------------------------------------------- Ernst & Young LLP expressed substantial doubt about Bookham, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the fiscal year ended July 1, 2006. The auditing firm pointed to the Company's recurring operating losses. Bookham posted an US$87.5 million net loss for the fiscal year ended July 1, 2006, compared with a net loss of US$248 million in fiscal 2005. Net revenue for fiscal 2006 was US$231.6 million, compared with US$200.3 million in fiscal 2005. "We achieved 16% revenue growth in fiscal 2006 and significantly improved our overall financial structure with the elimination of our long-term debt," said Dr. Giorgio Anania, president and chief executive officer of Bookham. "On the operations front, we extended our supply agreement with Nortel through calendar 2006 and completed the move of our assembly and test manufacturing to Shenzhen, which is already delivering better performance and substantial cost savings. In addition, we introduced several new products, including wideband tunable laser products, next generation high power 980 pumps, new optical amplifiers and extended temperature XFPs and SFP DWDM transceiver products, all of which, we believe, will be key to our revenue growth in fiscal 2007." Revenue in the fourth quarter of fiscal 2006 was US$55 million, compared with US$53.4 million in the third quarter of fiscal 2006 and US$61 million in the fourth quarter of fiscal 2005. Revenue from customers other than Nortel increased 25% sequentially to $36.5 million from US$29.3 million last quarter. Revenue from Nortel in the fourth quarter declined as previously forecast to $18.5 million compared with US$24.1 million in the prior quarter. Net loss in the fourth quarter was US$270 million. Included in fourth quarter GAAP net loss are restructuring charges of approximately US$5.2 million. Fourth quarter net loss compares with a net loss of US$48 million in the third quarter and a net loss of US$39 million in the fourth quarter of fiscal 2005. "We are making good progress on the cost reduction plans we announced in May. Our lasers prototype line with associated engineering support will be transferring to our Shenzhen, China facility in the August to October timeframe, and our chip-on- carrier line will be starting up in Shenzhen in September with the move to be completed before year-end. We are also in the process of transferring a certain number of development, manufacturing support and administrative functions to Shenzhen to continue driving down our overhead cost structure. This will result in significant reductions in Western-world staff, especially in our Paignton, U.K. site, which will occur between the middle of August and November of this year," said Dr. Anania. "We initially expected these moves would result in quarterly cost savings of between US$5 million and US$6 million per quarter. We now expect cost savings of about US$4 million per quarter in the December quarter with an additional US$1.5 million to US$2.5 million achieved by the March 2007 quarter," added Dr. Anania. A full-text copy of the Company's annual report is available for free at http://researcharchives.com/t/s?11fa Outlook and Guidance "The market outlook for telecom optical components remains strong and as a key player in the telecom optical components space we are experiencing the benefits from this positive momentum," said Dr. Anania. "We are seeing solid demand for our new products and believe this will translate into additional growth for these products over the next several quarters." About Bookham Inc. Bookham, Inc. -- http://www.bookham.com/-- designs, manufactures and markets optical components, modules and subsystems that generate, detect, amplify, combine and separate light signals principally for use in high-performance fiber optics communications networks. The Company has manufacturing facilities in the UK, US, Canada, China and Switzerland; and offices in the US, UK, Canada, France and Italy and employs approximately 2000 people worldwide. BOURNVILLE.NET: Creditors Confirm Voluntary Liquidation ------------------------------------------------------- Creditors of Bournville.Net Limited confirmed on Aug. 16 the resolution for voluntary liquidation and the appointment of Lyn Marie Green of Ward & Co. as liquidator of the company. The company can be reached at: Bournville.Net Limited 35 Barbourne Road Worcester Worcestershire WR1 1SA United Kingdom Tel: 0870 236 2360 Web: http://www.commsconnect.net/ BOYDS COLLECTION: Hires Liquidators from Benedict Mackenzie ----------------------------------------------------------- Ian Donald Williams and Laurence Pagden of Benedict Mackenzie LLP were appointed Joint Liquidators of The Boyds Collection Limited on Aug. 18 for the creditors' voluntary winding-up procedure. The company can be reached at: The Boyds Collection Limited Unit J Dunkeswell Airfield Dunkeswell Business Park Honiton Devon EX144LE United Kingdom Tel: 01404 891 404 Fax: 01404 891 818 BRIARSOFT LIMITED: Creditors Confirm Liquidators' Appointment ------------------------------------------------------------- Creditors of Briarsoft Limited confirmed on Aug. 16 the appointment of Gordon Smythe Goldie and Allan David Kelly of Tait Walker as the company's Liquidators. The company can be reached at: Briarsoft Limited Unit 1C Hownsgill Industrial Park Knitsley Lane Consett County Durham DH8 7NU United Kingdom Tel: 01207 583 562 Fax: 01207 583 952 BRITISH UNITED: Shoe Machinery Manufacturer Up for Sale ------------------------------------------------------- The Directors of British United Shoe Machinery Limited is offering to sell the group's business and assets either as a complete group or as separate trading businesses comprising of: * BUSM -- designs and manufactures shoe machines and cutting machines, including trade names Samco Strong and Exact, and -- owns a manufacturing facility in Asia. * USM International Limited -- produces Computer Aided Design software for shoe manufacture applications * Shoemat -- supplies of footwear materials and components The Group has consolidated turnover of GBP6,141,000. The long established businesses have an enviable reputation within the worldwide shoe manufacturing industry having developed, over many years, a substantial customer base utilizing "BUSM" machinery which it still supplies with spares. In addition new developments in single point cutting technology have resulted in exciting new opportunities in material cutting for the aerospace, automotive and other industries. The group or individual businesses are offered for sale by way of a sale of assets to include brand and trading styles, Intellectual Property Rights relating to machinery designs and software and technical development, production plant machinery and equipment, stock, customer lists and order books. Inquiries can be addressed to: Charterfields Limited The Lodge Westbrook Court 2 Sharrow Vale Road Sheffield S11 8YZ United Kindom Tel: 0870 0434170 Fax: 0870 0434172 E-mail: enquiries@charterfields.com Headquartered in London and Sheffield, United Kingdom, Charterfields Limited -- http://www.charterfields.com/-- provides a broad range of valuation and asset management services to corporate clients and professional intermediaries throughout the world. BURNLEY CAR: Calls In Joint Liquidators from BWC Business --------------------------------------------------------- Paul A. Whitwam and Gary E. Blackburn of BWC Business Solutions were appointed Joint Liquidators of Burnley Car Audio Limited on Aug. 25 for the creditors' voluntary winding-up procedure. The company can be reached at: Burnley Car Audio Limited Parker Lane Burnley Lancashire BB112BY United Kingdom Tel: 01282 433 344 C & J MIDDLETON: Brings In A. Turpin to Liquidate Assets -------------------------------------------------------- A. Turpin of Poppleton & Appleby was appointed liquidator of C & J Middleton Limited on Aug. 15 for the purposes of creditors' voluntary liquidation. The company can be reached at: C & J Middleton Limited Bedworth Road Longford Coventry West Midlands CV6 6BP United Kingdom Tel: 024 7636 5598 CASTLE HOSIERY: Appoints Joint Liquidators from Ashcrofts --------------------------------------------------------- Harjinder Johal and George Michael of Ashcrofts were appointed Joint Liquidators of Castle Hosiery (London) Limited on Aug. 31 for the creditors' voluntary winding-up procedure. The company can be reached at: Castle Hosiery (London) Limited 6 White Church Lane Tower Hamlets London E1 7QR United Kingdom Tel: 020 7375 2146 Fax: 020 7247 4138 CGSI LIMITED: Creditors Ratify Liquidator's Appointment ------------------------------------------------------- Creditors of CGSI Limited ratified on Aug. 15 the appointment of Ian C. Schofield of PKF (U.K.) LLP as liquidator after they decided to wind-up the business. The company can be reached at: CGSI Limited Unit 2 Royds Lane Leeds West Yorkshire LS12 6DU United Kingdom Tel: 0113 387 5700 CHAPEL FURNISHINGS: Creditors Confirm Voluntary Liquidation ----------------------------------------------------------- Creditors of Chapel Furnishings Limited confirmed on Aug. 16 the resolutions for voluntary liquidation and the appointment of John Russell and Brendan Ambrose Guilfoyle as Liquidators. The company can be reached at: Chapel Furnishings Limited 14 Crown Point Road Leeds West Yorkshire LS101HU United Kingdom Tel: 0113 243 3638 Fax: 0113 243 4529 CINRAM INT'L: Urged to Retain Financial Advisor and Explore Sale ---------------------------------------------------------------- Amaranth Canada Trust advised the Trustees of Cinram International Income Fund Monday that the trustees of Cinram should immediately retain financial advisors to explore a sale of Cinram, including a going private transaction. Amaranth told the Cinram Trustees that they could materially enhance unitholder value by concluding that Cinram simply will not receive an appropriate valuation in the public markets. Amaranth issued the memorandum after the Amaranth investment fund group announced significant trading losses in its natural gas trading business. Following Amaranth's disclosure, the trust units of Cinram came under intense selling pressure. Manos Vourkoutiotis of Amaranth told the Cinram Trustees that given the absence of any fundamental news about Cinram, Amaranth has concluded that the selling was due to market participants speculating about Amaranth Canada Trust's intentions with respect to its Cinram holdings. Mr. Vourkoutiotis said that the public markets have failed to recognize the value of Cinram's business for quite some time. Given that the Cinram unit price has dropped 5% on Monday without any fundamental news, Mr. Vourkoutiotis explained that Amaranth has concluded that this fact will persist for the foreseeable future. Amaranth Canada Trust has beneficial ownership of 8,000,000 trust units of Cinram representing approximately 15.3% of the issued and outstanding trust units, and is the largest equity holder in the fund. Amaranth LLC indirectly beneficially owns all units beneficially owned by the Amaranth Canada Trust. In addition, Amaranth has an economic interest in 2,654,895 Units. About Cinram Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/ -- an indirect wholly owned subsidiary Cinram International Income Fund, provides pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, VHS video cassettes, audio CDs, audio cassettes and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. * * * As reported in the Troubled Company Reporter on Aug. 3, 2006, Moody's Investors Service assigned a definitive B1 senior secured rating to the US$825 million credit facility of Cinram International Inc. dated May 5, 2006, removing the provisional status from this rating. Moody's also withdrew the B1 senior secured rating from Cinram's prior credit facility, originally dated October 2003. Moody's said Cinram's Corporate Family Rating is B1 and the outlook is stable. As reported in the Troubled Company Reporter on May 11, 2006, Standard & Poor's Ratings Services lowered its corporate credit rating on prerecorded multimedia manufacturer Cinram International Inc. to 'BB-' from 'BB' following the company's announcement that it had successfully converted into an income trust. The ratings were removed from CreditWatch with negative implications, where they were placed March 3, 2006. CLINICAL DATA: Posts US$6.1-Mln Net Loss in Quarter Ended 2006 -------------------------------------------------------------- Clinical Data Inc. filed its quarter financial statements for the three months ended June 30, 2006, with the U.S. Securities and Exchange Commission. The Company reported a US$6,185,000 net loss on US$24,816,000 of revenues for the three months ended June 30, 2006. The Company generated net cash flow of US$11.7 million in the three months ended June 30, 2006, as compared to US$1 million in the same period last year. The increased net cash flow in 2006 was because of the issuance of common stock and other equity instruments partially offset by the Company's operating losses, debt repayments and purchases of equipment. At June 30, 2006, the Company's balance sheet showed US$116,833,000 in total assets and US$35,691,000 in total liabilities resulting in US$72,245,000 stockholders' equity. A full-text copy of the regulatory filing is available for free at http://ResearchArchives.com/t/s?11dd Going Concern Doubt As reported in the Troubled Company Reporter on July 7, 2006, Deloitte & Touche, LLP, expressed substantial doubt about Clinical Data, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the fiscal years ended March 31, 2006 and 2005. The auditing firm pointed to the Company's accumulated deficit, negative cash flows from operations and the expectation that the Company will continue to incur losses in the future. About Clinical Data Clinical Data, Inc. (NASDAQ: CLDA) -- http://www.clda.com/-- is a worldwide leader in providing comprehensive molecular and pharmacogenomics services as well as genetic tests to improve patient care. The Company, founded in 1972, is organized under three worldwide divisions segmented by service offerings and varying client constituents: PGxHealth(TM); Cogenics(TM); and Vital Diagnostics(TM). Clinical Data currently employs a staff of over 430. The Company is headquartered in Newton, Massachusetts with operations in Texas, Connecticut, RTP - North Carolina, Rhode Island, and California as well as internationally in the UK, France, the Netherlands, Italy and Australia. CUT AND DRY: Names Paul Appleton as Liquidator ---------------------------------------------- Paul Appleton of David Rubin & Partners was named liquidator of Cut and Dry Limited on Aug. 16 for the purposes of creditors' voluntary winding-up proceedings. The company can be reached at: Cut and Dry Limited Shires Walk High Street Leicester Leicestershire LE1 4FR United Kingdom Tel: 0116 262 0815 D.B. CLOTHING: Names Claire L. Dwyer Liquidator ----------------------------------------------- Claire L. Dwyer was appointed Liquidator of D.B. Clothing Co. Limited on Aug. 29 for the creditors' voluntary winding-up procedure. The company can be reached at: D.B. Clothing Co. Limited 169 Great Ducie Street Manchester Lancashire M3 1FF United Kingdom Tel: 0161 834 5769 Fax: 0161 832 0190 DURA AUTOMOTIVE: Operating Pressures Cue Moody's to Cut Ratings --------------------------------------------------------------- Moody's Investors Service lowered the ratings of Dura Operating Corp., and its direct parent, Dura Automotive Systems, Inc. Dura Automotive's Corporate Family Rating has been lowered to Ca from Caa1. Moody's also assigned a probability of default rating of Caa3 to Dura Automotive. Dura Operating Corp.'s senior secured second lien ratings were lowered to Caa2 (LGD 3, 35%) from Caa1, the senior unsecured notes were lowered to Ca (LGD 4, 61%) from Caa3; and the senior subordinated notes were lowered to C (LGD 6, 92%) from Ca. Dura Automotive Systems Capital Trust's preferred securities also were lowered to C (LGD 6, 98%) from Ca. The lowered ratings reflect the company's ongoing operating pressures in the automotive supplier sector, which have recently been exacerbated by the announcement of additional production declines in the second half of 2006. Sales to Ford and GM approximate 23% and 20% of revenue, respectively, with roughly half of Ford exposure, and 75% of GM exposure derived in the US. Combined with the company's announced restructuring program and interest payments on its senior unsecured and senior subordinated notes in the fourth quarter, the lower expected production in the second half of 2006 will increase the cash flow pressure on the company. The company's Atwood division is expected to be impacted by non- recurring FEMA sales resulting from hurricane Katrina and higher fuel cost. The outlook remains negative reflecting the continuing industry pressures of lower Big 3 production in North America, raw material pricing pressures, and published reports indicating the company has hired restructuring advisors. Ratings Assigned: -- Probability-of-Default rating of Caa3 Ratings lowered: * Dura Automotive Systems, Inc. -- Corporate Family Rating to Ca from Caa1; * Dura Operating Corp. -- US$150 million guaranteed senior secured second-lien term loan due May 2011, to Caa2 (LGD 3, 35%) from Caa1; -- US$75 million guaranteed senior secured second-lien add-on term loan due May 2011, to Caa2 (LGD 3, 35%) from Caa1; -- US$400 million of 8.625% guaranteed senior unsecured notes due April 2012 (consisting of US$350 million and US$50 million tranches), to Ca (LGD 4, 61%) from Caa3; -- US$456 million of 9% guaranteed senior subordinated notes due May 2009, to C (LGD 6, 92%) from Ca; -- EUR100 million of 9% guaranteed senior subordinated notes due May 2009, to C (LGD 6, 92%) from Ca; and * Dura Automotive Systems Capital Trust -- US$55.25 million of 7.5% convertible trust preferred securities due 2028, to C (LGD 6, 98%) from Ca. Ratings affirmed: -- SGL-4 Speculative Grade Liquidity Rating Dura Automotive's US$175 million guaranteed senior secured first-lien asset-based revolving credit is not rated by Moody's. The last rating action was July 28 when the ratings were lowered. Dura Automotive, headquartered in Rochester Hills, Michigan, designs and manufactures components and systems primarily for the global automotive industry including driver control systems, structural door modules, glass systems, seating control systems, exterior trim systems, and mobile products. Annual revenues approximate US$2.3 billion. ELECTRICAL DISTRIBUTORS: Taps Paul John Webb as Administrator ------------------------------------------------------------- Paul John Webb of Mayfields Insolvency Practitioners was appointed administrator of Electrical Distributors (W-Ton) Limited (Company Number 05597557) on Sept. 1. The administrator can be reached at: Mayfields Insolvency Practitioners Church Steps House Queensway Halesowen West Midlands B63 4AB United Kingdom Tel: 0121 550 0011 Headquartered in Wolverhampton, United Kingdom, Electrical Distributors (W-Ton) Limited wholesales electric household goods. FARM HOUSE: Names Joint Liquidators from Chantrey Vellacott ----------------------------------------------------------- J. C. Heath and D. J. Oprey of Chantrey Vellacott DFK were appointed Joint Liquidators of Farm House Pine (GB) Limited on Aug. 1 for the creditors' voluntary winding-up procedure. The company can be reached at: Farm House Pine (GB) Limited Norfolk House Sterling Close Loddon Industrial Estate Loddon Norwich Norfolk NR14 6UG Tel: 01508 521198 FARSIGHT SECURITY: Brings In Administrators from Grant Thornton --------------------------------------------------------------- Richard M Hawes and Nigel Morrison of Grant Thornton U.K. LLP were appointed joint administrators of Farsight Security Limited (Company Number 03152277) on Sept. 6. Headquartered in London, Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- is the U.K. member of Grant Thornton International, one of the world's leading international organizations of independently owned and managed accounting and consulting firms. These firms provide a comprehensive range of business advisory services from around 540 offices in over 110 countries worldwide. Headquartered in Peterborough, United Kingdom, Farsight Security Limited -- http://www.farsight.co.uk/-- is a subsidiary of Farsight PLC and is engaged in security video surveillance and consultancy. FENNTURN PROPERTY: Appoints Liquidator from Haines Watts -------------------------------------------------------- Timothy Calverley of Haines Watts was appointed Liquidator of Fennturn Property Services Limited on Aug. 24 for the creditors' voluntary winding-up procedure. The company can be reached at: Fennturn Property Services Limited Unit 11 Newcomen Road Skippers Lane Industrial Estate Middlesbrough Cleveland TS6 6PS Tel: 01642 469 342 FIBRE DEPOT: Claims Filing Period Ends Sept. 29 ----------------------------------------------- Creditors of Fibre Depot Limited (formerly Blueland Management Limited) have until Sept. 29 to send in their names, addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Joint Liquidator Peter Alan Kubik of UHY Hacker Young at: Peter Alan Kubik UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH United Kingdom The company can be reached at: Fibre Depot Limited 1 Magellan Terrace Gatwick Road Crawley West Sussex RH109PJ United Kingdom Tel: 0870 141 7125 Fax: 0870 141 7126 FORD MOTOR: Attorney General Lockyer Files Global Warming Suit -------------------------------------------------------------- Attorney General Bill Lockyer filed a lawsuit against U.S. and Japanese auto manufacturers on Sept. 21, alleging their vehicles' emissions have contributed significantly to global warming, harmed the resources, infrastructure and environmental health of California, and cost the state millions of dollars to address current and future effects. "Global warming is causing significant harm to California's environment, economy, agriculture and public health. The impacts are already costing millions of dollars and the price tag is increasing," said Mr. Lockyer. "Vehicle emissions are the single most rapidly growing source of the carbon emissions contributing to global warming, yet the federal government and automakers have refused to act. It is time to hold these companies responsible for their contribution to this crisis." Filed in U.S. District Court for the Northern District of California, the complaint names as defendants: Chrysler Motors Corporation, General Motors Corporation, Ford Motor Company, Toyota Motor North America, Inc., Honda North America, and Nissan North America. The lawsuit is the first of its kind to seek to hold manufacturers liable for the damages caused by greenhouse gases that their products emit. Mr. Lockyer filed the lawsuit on behalf of the People of the State of California. The complaint alleges that under federal and state common law the automakers have created a public nuisance by producing "millions of vehicles that collectively emit massive quantities of carbon dioxide," a greenhouse gas that traps atmospheric heat and causes global warming. Under the law, a "public nuisance" is an unreasonable interference with a public right, or an action that interferes with or causes harm to life, health or property. The complaint asks the court to hold the defendants liable for damages, including future harm, caused by their ongoing, substantial contribution to the public nuisance of global warming. As stated in the complaint, the automakers produce vehicles that emit a combined 289 million metric tons of carbon dioxide in the United States each year. Those emissions, the complaint alleges, currently account for nearly 20 percent of the carbon dioxide emissions in the United States and more than 30 percent in California. The defendants rank "among the world's largest contributors to global warming and the adverse impacts on California," according to the complaint. The filing comes as Mr. Lockyer fights the auto industry's attempt to invalidate California's landmark global warming regulations curbing tailpipe emissions. In their federal-court lawsuit, the automakers claim the regulations, adopted in 2005 through legislation sponsored by Assembly Member Fran Pavley, are pre-empted by federal law. Lockyer is defending the rules against the industry's legal challenge. Mr. Lockyer noted the Bush Administration's inaction on global warming has forced California and other states to take action on their own. The U.S. Supreme Court is currently reviewing a lawsuit filed by Lockyer, 11 other Attorneys General, two cities and major environmental groups challenging the U.S. Environmental Protection Agency's refusal to regulate greenhouse gas emissions. Numerous parties have submitted amicus briefs supporting the states, including climate scientists, three former EPA Administrators, former Secretary of State Madeleine Albright, and environmental and religious groups. In addition, Mr. Lockyer, along with nine other state Attorneys General, the District of Columbia and the City of New York, filed a lawsuit earlier this year challenging the Bush Administration's new fuel economy standards for SUVs and light trucks. That complaint alleges the rules fail to address the effects on the environment and global warming. "We are seeing the harmful impacts of global warming today, and if we continue with 'business as usual,' we can expect to see more and larger impacts in the future," said Mr. Lockyer. "As a coastal state, an agricultural state, and a state that relies on its Sierra snow pack, California has an enormous stake in acting now to combat global warming." 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 TCR-Europe on Sept. 21, Moody's Investors Service lowered Ford Motor Company's corporate family rating and senior unsecured to B3 from B2, and Ford Motor Credit Company's senior unsecured to B1 from Ba3. Ford's Speculative Grade Liquidity rating has also been lowered to SGL-3 from SGL-1. The rating outlook is negative. These rating actions conclude a review for possible downgrade that was initiated on Aug. 18. At the same time, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on Ford Motor Co., Ford Motor Credit Co. and all related units -- except FCE Bank PLC -- to 'B' from 'B+' and its short-term ratings on these entities to 'B-3' from 'B-2.' The ratings on FCE Bank, Ford Credit's European bank, were lowered to 'B+/B-3' from 'BB-/B-2', maintaining the one-notch rating differential between FCE and its parent that was established in July. FORD MOTOR: Mulls Purchase of Rover Brand Name From BMW ------------------------------------------------------- Ford Motor Co. will exercise its right to purchase the "Rover" brand name from BMW AG, in order to prevent confusion regarding the brand among customers, Newratings.com reports. Ford purchased the Land Rover brand from BMW in 2000 and holds the option to acquire the Rover brand as part of that deal. Land Rover is part of Ford's Premier Automotive Group, which includes other brands like Volvo, Jaguar and Aston Martin. The segment incurred a US$180 million net loss in Ford's second quarter results. According to Newratings.com, BMW has agreed to sell the Rover brand to Shanghai Automotive Industry Corp for GBP11 million if Ford won't exercise its right. SAIC had previously acquired the right to the designs for the Rover cars from BMW. James Doran, writing for The Times, reports that while Ford does not intend to roll out the Rover in its original form, the company is planning to introduce Rover vehicles under the Land Rover series. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Company -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. * * * As reported in TCR-Europe on Sept. 21, Moody's Investors Service lowered Ford Motor Company's corporate family rating and senior unsecured to B3 from B2, and Ford Motor Credit Company's senior unsecured to B1 from Ba3. Ford's Speculative Grade Liquidity rating has also been lowered to SGL-3 from SGL-1. The rating outlook is negative. These rating actions conclude a review for possible downgrade that was initiated on Aug. 18. At the same time, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on Ford Motor Co., Ford Motor Credit Co. and all related units -- except FCE Bank PLC -- to 'B' from 'B+' and its short-term ratings on these entities to 'B-3' from 'B-2.' The ratings on FCE Bank, Ford Credit's European bank, were lowered to 'B+/B-3' from 'BB-/B-2', maintaining the one-notch rating differential between FCE and its parent that was established in July. GENERAL MOTORS: Talks with Nissan and Renault Enter Final Phase --------------------------------------------------------------- Talks on the planned collaboration between General Motors Corporation and the Nissan Motor Company-Renault S.A. alliance have entered the final stage as the Oct. 15, 2006, preliminary deadline for the parties to complete a review on the potential benefits of the tie-up approaches, The Yomiuri Shimbun reveals. According to the Yomiuri, General Motors' interest in the deal has waned, especially over the idea of forming a capital alliance. Consequently, the nature of the tie-up may turn out to be much less comprehensive than the Nissan-Renault bloc had initially planned. In July, the three carmakers agreed to conduct a 90-day study of the potential benefits of an alliance that could create an automobile giant with a combined annual production of 15 million vehicles, The Associated Press reports. The study came after GM shareholder Kirk Kerkorian, who owns a 9.9% stake in the company through his investment firm Tracinda Corp., called for the carmakers to pursue an alliance. Carlos Ghosn, the chief executive of Renault and Nissan, has said the benefits from an alliance would be similar to the gains from the Renault-Nissan alliance, which have included cost savings from joint purchases of auto parts, AP relates. The Troubled Company Reporter - Asia Pacific reported on Sept. 8, 2006, that Renault S.A. has named BNP Paribas to advise on a possible three-way alliance with General Motors Corp. and Nissan Motor Co. According to AFX, the French carmaker has also drawn up a shortlist of around eight British and US banks from which it will choose a second adviser. If the firms reach a comprehensive tie-up deal with capital involvement, the alliance would create a giant that produces 25% of all automobiles in the world, the Yomiuri says. General Motors, however, has been cautious since the talks began, whereas the Nissan-Renault side has been consistently positive over the prospective deal. The opposition of the United Auto Workers' Union may be a factor behind General Motors' reluctance, according to the Yomiuri. Alarmed by Mr. Ghosn's past record on aggressive corporate restructuring, union head Ron Gettelfinger has publicly said he wants talks on the three-way alliance to be put away forever. With the rise of such resistance in the United States, Mr. Ghosn now seems to have backed down from his initial goal of acquiring a capital stake in General Motors to maximize the synergy effect of the alliance, and has said a capital tie-up is not a precondition to the deal. About General Motors General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. * * * As reported in the Troubled Company Reporter on July 28, 2006, Standard & Poor's Ratings Services held all of its ratings on General Motors Corp. -- including the 'B' corporate credit rating, but excluding the '1' recovery rating -- on CreditWatch with negative implications, where they were placed March 29, 2006. The CreditWatch update followed GM's announcement of second quarter results and other recent developments involving its bank facility and progress on the GMAC sale. As reported in the Troubled Company Reporter on July 27, 2006, Dominion Bond Rating Service downgraded the long-term debt ratings of General Motors Corporation and General Motors of Canada Limited to B. The commercial paper ratings of both companies are also downgraded to R-3 (low) from R-3. As reported in the Troubled Company Reporter on June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new US$4.48 billion senior secured bank facility. The 'RR1' is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. As reported in the Troubled Company Reporter on June 21, 2006, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corporation, affirmed the company's B3 corporate family and SGL- 3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. GENERAL MOTORS: Fitch Gauges 34% Recovery Rate for Debtholders -------------------------------------------------------------- Fitch Ratings has modified the details of its March 1, 2006, recovery analysis for General Motors. Fitch now estimates a 34% recovery rate for unsecured debtholders versus an original estimate of 41% published earlier this year. The revision primarily reflects GM's recent establishment of a secured revolving credit agreement, which impairs expected recoveries for unsecured holders in the event of a default. Fitch has also modified its recovery analysis to reflect GM's ongoing restructuring efforts and updated financials. Fitch estimates that unsecured claims would total approximately US$74 billion and that GM's enterprise value available to service those claims, after extensive administrative claims, would be approximately US$25 billion -- a recovery rate of 34%. This recovery rate remains within the historic corporate average of recovery values, which in Fitch's methodology translates into a Recovery Rating of 'RR4' (expected recovery of 30%-50%) for the senior unsecured debt. The primary factor behind the lower recovery rate versus the initial scenario was the replacement of GM's unsecured revolving credit facility with a US$6 billion secured credit facility, thereby subordinating the remaining unsecured debt. Fitch has assigned the new senior secured bank facility an 'RR1' (recovery of 90%-100%) based on expected full recovery for this facility in the event of a bankruptcy filing. Fitch's analysis assumes that the sale of a 51% interest in GMAC is completed prior to any bankruptcy scenario, with GM's retained 49% interest added to the recovery values. In a bankruptcy scenario, Fitch believes that General Motors would not seek to terminate its U.S. hourly or salaried pension plans by attempting to offload them to the Pension Benefit Guaranty Corp. The high asset levels and potential future asset returns on these funds, as compared to current benefit payout rates, provide some flexibility to negotiate changes to the current defined benefit program under any new labor agreement with the UAW. Fitch's recovery analysis provides a framework for expected recoveries in the event of a bankruptcy scenario and is not meant to be a predictor of when or if a default will occur. Recovery Ratings (RR) are assigned to corporate issuers that have an Issuer Default Rating of 'B+' or below. Fitch has an IDR of 'B' on General Motors with a Negative Rating Watch. GENERAL MOTORS: Atty. General Lockyer Files Global Warming Suit --------------------------------------------------------------- Attorney General Bill Lockyer filed a lawsuit against U.S. and Japanese auto manufacturers on Sept. 21, alleging their vehicles' emissions have contributed significantly to global warming, harmed the resources, infrastructure and environmental health of California, and cost the state millions of dollars to address current and future effects. "Global warming is causing significant harm to California's environment, economy, agriculture and public health. The impacts are already costing millions of dollars and the price tag is increasing," said Mr. Lockyer. "Vehicle emissions are the single most rapidly growing source of the carbon emissions contributing to global warming, yet the federal government and automakers have refused to act. It is time to hold these companies responsible for their contribution to this crisis." Filed in U.S. District Court for the Northern District of California, the complaint names as defendants: Chrysler Motors Corporation, General Motors Corporation, Ford Motor Company, Toyota Motor North America, Inc., Honda North America, and Nissan North America. The lawsuit is the first of its kind to seek to hold manufacturers liable for the damages caused by greenhouse gases that their products emit. Mr. Lockyer filed the lawsuit on behalf of the People of the State of California. The complaint alleges that under federal and state common law the automakers have created a public nuisance by producing "millions of vehicles that collectively emit massive quantities of carbon dioxide," a greenhouse gas that traps atmospheric heat and causes global warming. Under the law, a "public nuisance" is an unreasonable interference with a public right, or an action that interferes with or causes harm to life, health or property. The complaint asks the court to hold the defendants liable for damages, including future harm, caused by their ongoing, substantial contribution to the public nuisance of global warming. As stated in the complaint, the automakers produce vehicles that emit a combined 289 million metric tons of carbon dioxide in the United States each year. Those emissions, the complaint alleges, currently account for nearly 20 percent of the carbon dioxide emissions in the United States and more than 30 percent in California. The defendants rank "among the world's largest contributors to global warming and the adverse impacts on California," according to the complaint. The filing comes as Mr. Lockyer fights the auto industry's attempt to invalidate California's landmark global warming regulations curbing tailpipe emissions. In their federal-court lawsuit, the automakers claim the regulations, adopted in 2005 through legislation sponsored by Assembly Member Fran Pavley, are pre-empted by federal law. Lockyer is defending the rules against the industry's legal challenge. Mr. Lockyer noted the Bush Administration's inaction on global warming has forced California and other states to take action on their own. The U.S. Supreme Court is currently reviewing a lawsuit filed by Lockyer, 11 other Attorneys General, two cities and major environmental groups challenging the U.S. Environmental Protection Agency's refusal to regulate greenhouse gas emissions. Numerous parties have submitted amicus briefs supporting the states, including climate scientists, three former EPA Administrators, former Secretary of State Madeleine Albright, and environmental and religious groups. In addition, Mr. Lockyer, along with nine other state Attorneys General, the District of Columbia and the City of New York, filed a lawsuit earlier this year challenging the Bush Administration's new fuel economy standards for SUVs and light trucks. That complaint alleges the rules fail to address the effects on the environment and global warming. "We are seeing the harmful impacts of global warming today, and if we continue with 'business as usual,' we can expect to see more and larger impacts in the future," said Mr. Lockyer. "As a coastal state, an agricultural state, and a state that relies on its Sierra snow pack, California has an enormous stake in acting now to combat global warming." About General Motors General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. * * * As reported in the Troubled Company Reporter on July 28, 2006, Standard & Poor's Ratings Services held all of its ratings on General Motors Corp. -- including the 'B' corporate credit rating, but excluding the '1' recovery rating -- on CreditWatch with negative implications, where they were placed March 29, 2006. The CreditWatch update followed GM's announcement of second quarter results and other recent developments involving its bank facility and progress on the GMAC sale. As reported in the Troubled Company Reporter on July 27, 2006, Dominion Bond Rating Service downgraded the long-term debt ratings of General Motors Corporation and General Motors of Canada Limited to B. The commercial paper ratings of both companies are also downgraded to R-3 (low) from R-3. As reported in the Troubled Company Reporter on June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new US$4.48 billion senior secured bank facility. The 'RR1' is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. As reported in the Troubled Company Reporter on June 21, 2006, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corporation, affirmed the company's B3 corporate family and SGL- 3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. The rating outlook is negative. GIS CONTRACT: Taps Administrators from Carter Backer ---------------------------------------------------- John Alfred George Alexander and Melvyn Julian Carter of Carter Backer Winter were appointed joint administrators of GIS Contract Services Limited (Company Number 04669445) on Sept. 8. Headquartered in London, United Kingdom, Carter Backer Winter -- http://www.cbw.co.uk/-- is an independent firm of Chartered Accountants, business advisers and tax specialists established for over 50 years. Its client base varies and ranges from private clients through to overseas multi-national companies with U.K. branches and activities. Headquartered in London, United Kingdom, GIS Contract Services Limited provides investigation and security services. GLIDEMORE LIMITED: Simon John Lowes Leads Liquidation Procedure --------------------------------------------------------------- Simon John Lowes was appointed Liquidator of Glidemore Limited (t/a Virgin Windows) on Aug. 17 for the creditors' voluntary winding-up procedure. The company can be reached at: Glidemore Limited Winchester Road Fair Oak Eastleigh Hampshire SO507HD United Kingdom Tel: 023 8060 0810 GOODFELLOWS LIMITED: Taps Liquidators from Smith & Williamson ------------------------------------------------------------- Stephen John Tancock and Vincent John Green of Smith & Williamson Limited were appointed Joint Liquidators of Goodfellows (U.K.) Limited on Aug. 21 for the creditors' voluntary winding-up proceeding. The company can be reached at: Goodfellows (U.K.) Limited 26 Commercial Road Paddock Wood Tonbridge Kent TN126EL United Kingdom Tel: 01892 837 799 Fax: 01892 833 333 HOMEBUY GROUP: Administrators Place Appliance Supplier on Sale -------------------------------------------------------------- The Joint Administrators of Homebuy Group PLC, David Hargrave, Rob Hunt, Graham Martin and Zelf Hussain, are offering the company's business and assets for sale as a going concern. The assets for sale features: -- turnover of around GBP92 million for the year end April 2006; -- trading as homebuy and PerfectHome; and -- approximately 100,000 customers. Headquartered in Glasgow, United Kingdom, Homebuy -- http://www.homebuy-direct.com/-- is the U.K.'s No.1 supplier of top quality electrical goods and home furnishing products on personal credit. Inquiries can be addressed to: Stefano Perfumo PricewaterhouseCoopers LLP Plumtree Court London EC4A 4HT United Kingdom Tel: 020 7804 8905 Fax: 020 7804 5566 E-mail: stefano.s.perfumo@uk.pwc.com PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. HORNMANOR LIMITED: Appoints Colin Burke as Liquidator ----------------------------------------------------- Colin Burke of Milner Boardman & Partners was appointed Liquidator of Hornmanor Limited on Aug. 30 for the creditors' voluntary winding-up proceeding. The company can be reached at: Hornmanor Limited Higher Road Urmston Manchester Lancashire M41 9BQ United Kingdom Tel: 0161 748 4664 Fax: 0161 748 4664 HOTELOC PLC: Moody's Cuts Rating on GBP88-Mln Class D Notes ----------------------------------------------------------- Moody's Investors Service downgraded Class A, Class B, Class C and Class D Notes issued by HOTELoC plc. All Classes of Notes issued by Hoteloc remain on review for further downgrade. Moody's rating action in detail (amounts reflecting current outstandings): -- Class A, GBP103,740,945 Floating Rate Notes, due May 2007: downgraded to Aa3 from Aaa and on further review for possible downgrade; -- Class B, GBP100,000,000 Floating Rate Notes, due May 2007: downgraded to A3 from Aa3 and on further review for possible downgrade; -- Class C, GBP43,000,000 Floating Rate Notes, due May 2007: downgraded to Ba1 from Baa2 and on further review for possible downgrade; and -- Class D, GBP88,000,000 Floating Rate Notes, due May 2007, downgraded to B3 from B2 and on further review for possible downgrade. Class E1, E2 and E3 Notes remain on review for possible downgrade. The Notes are backed by one loan secured by a portfolio of 28 hotels located throughout the United Kingdom. Each of the hotels is operated by Thistle Hotels (Management) Limited. In May 2005 the loan matured and the borrower failed to make the required payment. Since then the borrower and the Special Servicer have been working towards a sale of the assets. The legal final maturity for all Classes of Notes is May 10, 2007. Moody's rating action has been triggered by: -- the increasing uncertainty that full note repayment will be received by Noteholders by the approaching legal final maturity date; and -- the further deterioration in the financial performance of the hotels. Moody's ratings address the expected loss posed to investors by the legal final maturity. Accordingly, the ratings reflect the likelihood of full and timely payment to the Noteholders by May 2007. According to the investor reports, the Special Servicer is still working with the preferred bidder, the borrower and the Operator to achieve a sale of the portfolio. Moody's notes that: -- the performance of the hotels has further deteriorated, -- that approximately only GBP20 million has been spent as capital expenditure over the last three years and -- the consent of the Operator is required for the sale of the hotels, which may result in delaying a resolution. The preferred bidder was selected in September 2005. In the past negotiations between the Operator and the borrower took significant time and Moody's notes that it took approximately 15 months to complete the sale of three other hotels in the portfolio. Moody's considers that the current uncertainty regarding a sale completion by the legal final maturity date is not commensurate with the highest rating levels. At the same time, Moody's notes that the prospects of full recovery on the Class A Notes is very strong, however that may occur after the legal final maturity date. Moody's will continue to take into account the ability to commence enforcement as well as the relatively lower leverage of the more senior classes in any rating actions in the future. Moody's will monitor the transaction closely and may take further rating actions based on either: -- new information regarding the asset sale process or -- any further adjustments in the probability that recoveries will be received by the legal final maturity. HUNSTON JOINERY: Names Jeffrey Mark Brenner Liquidator ------------------------------------------------------ Jeffrey Mark Brenner of B & C Associates was appointed Liquidator of Hunston Joinery Limited on Aug. 25 for the creditors' voluntary winding-up proceeding. The company can be reached at: Hunston Joinery Limited Southover Way Hunston Chichester West Sussex PO20 1NY United Kingdom Tel: 01243 789368 HYLIC LIMITED: Brings In Liquidator from Bishop Fleming ------------------------------------------------------- Jeremiah Anthony O'Sullivan of Bishop Fleming was appointed Liquidator of Hylic Limited on Aug. 30 for the creditors' voluntary winding-up proceeding. The company can be reached at: Hylic Limited Unit 6A Webbers Way Dartington Totnes Devon TQ9 6JY United Kingdom Tel: 01803 849090 INCO LTD: Revises Earnings Outlook for 2006 Third Quarter --------------------------------------------------------- Inco Ltd. anticipates record earnings for the third quarter of 2006 given the continued strength in the market for its nickel products. Inco expects its adjusted net earnings to exceed significantly both current analyst estimates and the company's record second quarter results. The company has lowered its production estimates for nickel and copper for the third quarter following equipment breakdowns at its Ontario and Manitoba operations. These production losses are in addition to the previously announced extended outage at the company's Indonesian operations and the ongoing strike at its Voisey's Bay operations in Labrador. The company has now restored full production at both Indonesian and Ontario operations and expects the Manitoba operations to return to full production in early October. Contract talks between Inco and the union representing workers at Voisey's Bay resumed this week. Nickel and copper prices have increased considerably during the third quarter. The LME benchmark cash nickel price has averaged $13.18 per pound ($29,048 per ton) for the third quarter-to-date compared with the second quarter average of US$9.09 per pound ($20,036 per ton). The LME benchmark cash copper price has averaged US$3.49 per pound ($7,688 per ton) for the third quarter-to-date compared with the second quarter average of US$3.29 per pound ($7,251 per ton). Using actual nickel and copper prices for July and August and assuming nickel and copper prices for September equal the month- to-date average LME nickel price of US$13.68 per pound ($30,157 per ton) and the month-to-date average LME copper price of US$3.46 per pound ($7,637 per ton), the company currently estimates its adjusted net earnings for the third quarter to be approximately $610 to US$630 million based on revised production estimates. This is approximately 44 per cent above the current First Call consensus mean estimate of US$1.88 per share and more than three times the company's adjusted net earnings per share for the third quarter of 2005. Third quarter nickel production is now expected to be 118 to 123 million pounds (54,000 to 56,000 tons) compared with previously- announced estimates of 135 to 140 million pounds (61,000 to 63,000 tons), primarily as a result of downstream production issues at the company's Manitoba, Indonesian and Ontario operations. Third quarter copper production is expected to be 60 to 65 million pounds (27,000 to 29,000 tons) compared with the previously-announced estimate of 76 million pounds (34,000 tons), primarily as a result of the ongoing strike at Voisey's Bay and reduced oxygen availability at the company's smelter in Sudbury, Ontario. Inco's forecast platinum-group metals production for the third quarter is just slightly below 80,000 troy ounces as such production was largely unaffected by the equipment breakdowns or strike. Several factors have contributed to the reduction in third quarter production estimates. At the company's Indonesian subsidiary, PT Inco, repairs to an electric furnace damaged by fire in late May 2006, took longer than originally anticipated, reducing PT Inco's production of nickel-in-matte during the third quarter. The operation is now back to operating at full capacity. At the company's Sudbury, Ontario operations, a motor failure on one of the oxygen plants in July 2006 and the long lead-time to purchase and install a replacement motor will reduce finished nickel and copper production. At the company's Manitoba operations a production incident during the second week of September resulted in damage to the furnace and a converter and has led to the temporary suspension of the operation of one of the two smelter furnaces. Nickel refining operations in Manitoba are expected to return to stable operations in early October. "Inco's processing operations have been delivering at record production levels, as demonstrated by the company's first half results. Both the Ontario and Indonesian operations are now operating at plan production levels and Manitoba will resume operating at plan production levels in October," said Mark Cutifani, President, North America and Europe of Inco. "Our operations team is continuing to push operations performance to new levels and is focused on addressing the reliability of performance as part of our long-term improvement strategy." The strike by production workers at Voisey's Bay Nickel Company Limited is not expected to affect Inco's production of finished nickel or cobalt in the third quarter as Inco has sufficient stocks of nickel concentrates available for processing at its smelting and refining operations at Sudbury, Ontario and Thompson, Manitoba. However, the strike at Voisey's Bay has affected Inco's production of copper concentrate that is sold to customers in Europe. Meanwhile, very strong demand, especially from the stainless steel industry, and struggling production from a number of producers have created a very tight market and driven nickel prices to record levels. "Inventories throughout the supply chain are at the lowest levels we have ever seen," said Executive Vice-President Marketing, Peter Goudie. "Our customers are looking for more nickel and we are doing all we can to supply them, but it is difficult to meet all demands. As we have suggested would happen, the nickel market is now in a place where the industry has never been before. This is creating, as expected, considerable volatility in prices as the market adapts to the new pricing levels." Inco continues to expect that robust market conditions will lead to record second half earnings, despite the lower production estimates. "We believe that the great strength we are seeing in the nickel market will continue through the remainder of the year, and we continue to expect unprecedented earnings and cash flow in the second half of 2006," said Chairman and CEO Scott Hand. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. INSPIRED HR: Paul Appleton Leads Liquidation Procedure ------------------------------------------------------ Paul Appleton of David Rubin & Partners was appointed Liquidator of Inspired HR Limited (formerly Inspired H R Limited) on Aug. 29 for the creditors' voluntary winding-up proceeding. The company can be reached at: Inspired HR Limited 49A Richmond Avenue Islington London N1 0LX United Kingdom Tel: 020 7619 9619 Fax: 020 7745 2453 IPC ACQUISITION: Moody's Assigns Loss-Given-Default Ratings ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology, the rating agency took these actions on IPC Acquisition Corp.: Ratings changed: * IPC Acquisition Corp. -- First priority senior secured credit facilities to B1 (LGD 3) from Ba3 (LGD 2); and -- Corporate Probability of Default Rating (PDR) to B2 from B3. Ratings affirmed: * IPC Acquisition Corp. -- Corporate family rating at B2; and -- Second lien credit facilities at Caa1 (LGD 5). The ratings were assigned between Sept. 6 and 16. The changes were made as a result of an adjustment to Moody's assumptions regarding expected loss given default recovery rates at the family level. The corporate family ratings were affirmed as there were no changes to Moody's opinion regarding the strength of the underlying credits. JIGSAW PRINT: Creditors Confirm Liquidators' Appointment -------------------------------------------------------- Creditors of Jigsaw Print Limited confirmed on Aug. 30 the resolutions for voluntary liquidation and the appointment of Allan Cooper and Brendan Ambrose Guilfoyle of The P&A Partnership as Liquidators. The company can be reached at: Jigsaw Print Limited Moorfield Business Park Moorfield Close Yeadon Leeds West Yorkshire LS197YA United Kingdom Tel: 0113 250 0855 JOWETT ARTSTONE: Brings In XL Business to Administer Assets ----------------------------------------------------------- Jeremy Nicholas Bleazard of XL Business Solutions Limited was appointed administrator of Jowett Artstone Limited (Company Number 3504537) on Sept. 5. The administrator can be reached at: XL Business Solutions Limited 1st Floor 2-4 Market Street Cleckheaton BD19 5AJ United Kingdom Fax: 01274 870606 Tel: 01274 870101 E-mail: enquiries@xlbs.co.uk jbleazard@xlbs.co.uk Headquartered in Heckmondwike, United Kingdom, Jowett Artstone Limited retails artificial stones. LEADING EDGE: Liquidator Sets Oct. 3 Claims Bar Date ---------------------------------------------------- Creditors of Leading Edge Solutions Limited have until Oct. 3 to send in their full forenames and surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator Shay Lettice of Peters Elworthy & Moore at: Shay Lettice Peters Elworthy & Moore Salisbury House Station Road Cambridge CB1 2LA United Kingdom The company can be reached at: Leading Edge Solutions Limited Stow-Cum-Quy Cambridge Cambridgeshire CB5 9WU United Kingdom Tel: 01223 813 500 Web: http://www.leading-edge-solutions.co.uk/ LOADBETTER LIMITED: Names Joint Liquidators to Wind Up Business --------------------------------------------------------------- Steven Draine and David Rolph were appointed Joint Liquidators of Loadbetter Limited on Aug. 18 for the creditors' voluntary winding-up proceeding. The company can be reached at: Loadbetter Limited Old Wolverton Road Old Wolverton Milton Keynes Buckinghamshire MK125NH Tel: 01908 315 275 Fax: 01908 315 274 MATTHEW CORNISH: Hires Administrators from Smith & Williamson ------------------------------------------------------------- Anthony Murphy and Roger Tulloch of Smith & Williamson Limited were appointed joint administrators of Matthew Cornish Transport Limited (Company Number 01784845) on Sept. 8. Smith & Williamson -- http://www.smith.williamson.co.uk/-- is an independent professional and financial services group employing over 1,200 people. It is the leading provider of investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. Matthew Cornish Transport Limited can be reached at: Sub-Station Road Felixstowe Suffolk IP11 3JB United Kingdom Tel: 01394 676134 MORETTI LIMITED: Claims Registration Ends Oct. 10 ------------------------------------------------- Creditors of Moretti (Swiss Patisserie) Limited have until Oct. 10 to send in their names and addresses with particulars of the debts or claims to appointed Joint Liquidator David Moore of Begbies Traynor at: David Moore Begbies Traynor No. 1 Old Hall Street Liverpool L3 9HF United Kingdom The company can be reached at: Moretti (Swiss Patisserie) Limited 44 Liverpool Road Southport Merseyside PR8 4AY United Kingdom Tel: 01704 566 424 MOTORIST CENTRE: Hires Joint Administrators from Critchleys ----------------------------------------------------------- Anthony John Harris and Susan Margaret Roscoe of Critchleys were appointed joint administrators of The Motorist Centre Didcot Ltd. (Company Number 05300382) on Sept. 7. Critchleys -- http://www.critchleys.co.uk/-- is a leading independent firm of chartered accountants. We work in partnership with businesses and individuals to help them achieve their objectives. Headquartered in Didcot, United Kingdom, The Motorist Centre Didcot Ltd. -- http://www.tmcdltd.co.uk/--sells car styling accessories and performance car parts. MURDER MYSTERY: Hires Joint Liquidators from Portland Business -------------------------------------------------------------- James Richard Tickell and Carl Derek Faulds of Portland Business & Financial Solutions Ltd. were appointed Joint Liquidators of Murder Mystery Southern Limited on Aug. 29 for the creditors' voluntary winding-up proceeding. The company can be reached at: Murder Mystery Southern Limited 57 High Street Fareham Hampshire PO167BG United Kingdom Tel: 01329 231 361 Fax: 01329 230 460 NAPSTER: Engages UBS Investment to Assist in Possible Sale ---------------------------------------------------------- Napster has retained UBS Investment Bank to assist the Board and management in its evaluation of strategic alternatives. The company said the move is in response to recent third party interest in establishing strategic partnerships or potentially acquiring the company. "Napster is in a strong position to continue aggressively building our business as an independent company and we are pleased to also have the opportunity to thoughtfully examine potential combinations that may further enhance Napster's unique strategic and brand position in the center of digital media," Chris Gorog, Napster's Chairman & CEO, said. "Our goal is to enhance shareholder value which could potentially lead to a new strategic partnership or the sale of the company but in any event our primary focus will remain on growing Napster." Nand Gangwani, Napster's CFO, said, "Napster has a strong balance sheet with a healthy cash position of US$97 million as of the close of the first quarter and we are currently generating annual revenues in excess of US$100 million. For the second half of our fiscal year, we project a strong up-tick in subscription growth from a base of more than half a million subscribers and a significant expansion of our mobile business, including the addition of new tier one wireless partners. We are also looking forward to launching in Japan this fall as scheduled, expanding our global footprint to include the top four music markets in the world." The company advised that it has not set a definitive timetable for completion of its evaluation and further that there can be no assurances that the evaluation process will result in any specific transaction. The company also advised that it does not intend to disclose developments regarding its evaluation of strategic alternatives unless and until its Board of Directors approves a definitive transaction. Napster (Nasdaq: NAPS) -- http://www.napster.com/-- is committed to making great music experiences more accessible to all music fans. Napster.com gives web users the power to legally listen on-demand to a massive catalog of music from major and independent labels, wherever they are on the Web -- for FREE. The Napster music subscription service offers a premium experience that includes unlimited access to CD-quality music and advanced discovery, community and programming features in an advertising-free environment. Napster To Go subscribers also enjoy unlimited transfer of music to a compatible MP3 player. Napster Light, an a la carte download store, and Napster Mobile, a hosted music service featuring artist images, ring tones and full-length songs, round out the Napster digital music lineup. Napster is headquartered in Los Angeles with sales offices in Frankfurt and London. Napster along with its affiliates filed for chapter 11 protection on June 6, 2002 (Bankr. D. Del. Case No. 02-11573). Daniel J. DeFranceschi, Esq., Russell C. Silberglied, Esq., at Richards, Layton & Finger and Richard M. Cieri, Esq., Michelle Morgan Harner, Esq., at Jones, Day, Reavis & Pogue represented the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed debts of more than US$100 million. The Debtors chapter 11 plan of liquidation was confirmed on Apr. 20, 2004. The court entered an order formally closing the Debtor's chapter 11 petition on Jan. 10, 2005. NOVA FITNESS: Taps Julian Clive Rendell to Liquidate Assets ----------------------------------------------------------- Julian Clive Rendell of Rendell Thompson was appointed Liquidator of Nova Fitness Limited on Aug. 23 for the creditors' voluntary winding-up proceeding. The company can be reached at: Nova Fitness Limited Unit 1 Gasex Centre Frome Road Radstock Avon BA3 3PY United Kingdom Tel: 01761 233 823 OAK TREE: Nominates Alex Kachani as Liquidator ---------------------------------------------- Alex Kachani of Crawfords was nominated Liquidator of Oak Tree Furniture Limited on Aug. 23 for the creditors' voluntary winding-up proceeding. The company can be reached at: Oak Tree Furniture Limited Unit 3 Pennine Way Birmingham B8 1JW United Kingdom Tel: 0161 432 3839 ORGANICINDIA.CO: Creditors' Meeting Slated for September 25 ----------------------------------------------------------- Creditors of Organicindia.Co.UK Limited (Company Number 003999999) will meet at 10:30 a.m. on Sept. 25 at: UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH 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. 22 at: Andrew Andronikou Joint Administrator UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH United Kingdom Tel: 020 7216 4600 Fax: 020 7638 2159 PACIFIC TRADING: Names Liquidator from Parkin S. Booth & Co. ------------------------------------------------------------ Paul James Fleming of Parkin S. Booth & Co. was appointed Liquidator of Pacific Trading Limited on Aug. 16 for the creditors' voluntary winding-up proceeding. The company can be reached at: Pacific Trading Limited Unit 14 Cleveleys Road Penketh Business Park Great Sankey Warrington Cheshire WA5 2TJ United Kingdom Tel: 01925 243 344 Fax: 01925 636 926 PARADIGM LIMITED: Appoints John C. Moran to Liquidate Assets ------------------------------------------------------------ John C. Moran of Parkin S. Booth & Co. was appointed Liquidator of Paradigm (U.K.) Limited on Aug. 21 for the creditors' voluntary winding-up procedure. The company can be reached at: Paradigm (U.K.) Limited Unit 6 Beeches Business Centre Heysham Road Aintree Bootle Merseyside L30 6UZ United Kingdom Tel: 0151 523 3334 PARAGON CONCESSIONS: Brings In Joint Administrators from Kroll -------------------------------------------------------------- Simon Wilson and Charles Peter Holder of Kroll were appointed joint administrators of Paragon Concessions Limited (Company Number 03981722) on Sept. 6. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Headquartered in Manchester United Kingdom, Paragon Concessions Limited wholesales textiles. PDP ELECTRICAL: Claims Filing Period Ends Nov. 30 ------------------------------------------------- Creditors of PDP Electrical Contractors Limited have until Nov. 30 to send their names and addresses and particulars of their debts or claims and the names and addresses of the Solicitors (if any) to appointed Joint Liquidators Peter Andrew Blair and Richard Albert Brock Saville of Begbies Traynor at: Peter Andrew Blair Richard Albert Brock Saville Begbies Traynor Regency House 21 The Ropewalk Nottingham NG1 5DU United Kingdom The company can be reached at: Trafalgar Industrial Estate 3 Sovereign Way Downham Market Norfolk PE38 9SW United Kingdom Tel: 01366 384477 PLASTIC DESIGN: Brings In Joint Liquidators from Vantis ------------------------------------------------------- J. S. French & G. Mummery of Vantis Business Recovery were appointed Liquidators of Plastic Design Engineering Limited on Aug. 29 for the creditors' voluntary winding-up procedure. The company can be reached at: Plastic Design Engineering Limited Unit 7 Silk Mead Hare Street Buntingford Hertfordshire SG9 0DX United Kingdom Tel: 01763 849 992 Fax: 01763 849 997 POBOX LIMITED: Taps Liquidator from Levy & Partners ---------------------------------------------------- Peter Maurice Levy of Levy & Partners was appointed Liquidator of Pobox Limited (formerly Cheapnet Limited) on Aug. 15 for the creditors' voluntary winding-up procedure. The company can be reached at: Pobox Limited Lenton Business Centre Nottingham NG7 2BG United Kingdom Tel: 0870 516 8160 R.P.L. PRODUCTIONS: Taps Menzies to Administer Assets ----------------------------------------------------- Andrew John Duncan and Jason James Godefroy of Menzies Corporate Restructuring were appointed joint administrators of R.P.L. Productions Holdings Limited (Company Number 05213106) and R.P.L. Productions Limited (Company Number 01196463) on Sept. 6. Headquartered in London, Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- is a member of Moores Rowland International, an association of independent accounting firms throughout the world with some 20,800 partners and staff, operating from 628 offices in 92 countries. MRI, which is ranked 8th amongst the leading international accounting associations, achieved global revenues of US$1,800 million in 2003. R.P.L Productions Limited and R.P.L. Productions Holdings Limited can be reached at: Donovan Works Northcote Road Birmingham West Midlands B33 9BE United Kingdom Tel: 0121 784 5000 REGAL FLOWERS: Hires Martin Charles Armstrong as Liquidator ----------------------------------------------------------- Martin Charles Armstrong of Turpin, Barker Armstrong was appointed Liquidator of Regal Flowers U.K. Limited on Aug. 25 for the creditors' voluntary winding-up procedure. The company can be reached at: Regal Flowers U.K. Limited Units 18-19 Barwell Business Park Leatherhead Road Chessington, Surrey KT9 2NY United Kingdom Tel: 020 8397 8973 RESTAURANT. MEMBERS: Administrators Place Club Operator for Sale ---------------------------------------------------------------- The Joint Administrators, Jeremy French & Glyn Mummery, of Vantis Business Recovery Services offer for sale the business and assets of Restaurant. Members Club & Night Club. The Company operates an exclusive members club principally focused on members being in the creative communities of arts, literary and fashion in London. The assets for sale features: -- prime leasehold premises based in South Molton Street; -- good hospitality brand built over a short period; and -- good potential to grow business, especially in the music and film industries that have yet to be targeted by the Company. Inquiries can be addressed to: Nigel Strike, or Gemma Lane Vantis Business Recovery Services 43/45 Butts Green Road Hornchurch Essex RM11 2JX United Kindom Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. SHARPE MCKENNA: Filippa Connor Leads Liquidation Procedure ---------------------------------------------------------- Filippa Connor of B & C Associates was appointed Liquidator of Sharpe McKenna Limited on Aug. 24 for the creditors' voluntary winding-up procedure. The company can be reached at: Sharpe McKenna Limited 49 51 Causton Street City Of Westminster London SW1P4AT Tel: 020 7834 0775 SHARPMOVE LIMITED: Appoints Joint Liquidators from Kelmanson ------------------------------------------------------------ John Kelmanson and Elias Paourou of The Kelmanson Partnership were appointed Joint Liquidators of Sharpmove Limited on Aug. 25 for the creditors' voluntary winding-up procedure. The company can be reached at: Sharpmove Limited High Road Haringey London N17 0DA United Kingdom Tel: 020 8493 9911 Fax: 020 8493 0505 STAR LOGISTICS: Appoints Smith & Williamson as Administrators ------------------------------------------------------------- Anthony Murphy and Roger Tulloch of Smith & Williamson Limited were appointed joint administrators of Star Logistics Limited (Company Number 05817746) on Sept. 8. Smith & Williamson -- http://www.smith.williamson.co.uk/-- is an independent professional and financial services group employing over 1,200 people. It is the leading provider of investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. Headquartered in Surrey, United Kingdom, Star Logistics is engaged in road haulage. STATUS PRODUCTS: Hires Jeffrey Mark Brenner as Liquidator --------------------------------------------------------- Jeffrey Mark Brenner of B & C Associates was appointed Liquidator of Status Products Limited on Aug. 29 for the creditors' voluntary winding-up procedure. The company can be reached at: Status Products Limited Unit 1 Pilot Close Fulmar Way Wickford Essex SS118YW United Kingdom Tel: 01268 764 343 Fax: 01268 560 245 SUTLERS STORES: Brings In Administrators from Tenon Recovery ------------------------------------------------------------ Nigel Ian Fox and Carl Stuart Jackson of Tenon Recovery were appointed joint administrators of The Sutlers Stores Limited (Company Number 03795791) on Sept. 5. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The Sutlers Stores Limited can be reached at: 35 The Wessex Trade Centre Old Wareham Road Parkstone Poole BH12 3PG United Kingdom Tel: 01202-711660 Web: http://www.sutlers.co.uk/ SWITCH MEDIA: Calls In Liquidator from Rooney Associates -------------------------------------------------------- Gerard Keith Rooney of Rooney Associates was appointed Liquidator of Switch Media (U.K.) Limited on Aug. 25 for the creditors' voluntary winding-up procedure. The company can be reached at: Switch Media (U.K.) Limited 64 Park Road West Prenton Merseyside CH438SF United Kingdom Tel: 0870 220 0797 TEDDYFONE LIMITED: Mobile Service Provider Up for Sale ------------------------------------------------------ The Administrators, Nicholas John Miller and Ian Robert, offer for sale the following business and assets of Teddyfone Limited. The assets for sale features: -- dedicated supplier of children's mobile phones; -- registered trademark; -- innovative business with brand and Web site support; and -- substantial holding of SIM-ready "Teddyfone" phone handsets. Inquiries can be addressed to: Kingston Smith & Partners LLP Devonshire House 60 Goswell Road London EC1M 7AD United Kingdom Tel: 020 7566 4020 Fax: 020 7566 4021 Kingston Smith -- http://www.kingstonsmith.co.uk/-- advises owner-managers seeking solutions to business problems. The company has over 400 people, including 45 partners, based in six offices in London and the South East, and was founding member of KS International, a network of over 100 offices in 49 countries around the world. It was originally formed in 1923. THORNYCROFT LIMITED: Hires BDO Stoy as Administrators ----------------------------------------------------- Shay Bannon and Geoffrey Stuart Kinlan of BDO Stoy Hayward LLP were appointed joint administrators of Thornycroft (1862) Limited (Company Number 00907365) on Sept. 5. BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the U.K. member firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries. Its services include: audit and assurance, business restructuring, corporate finance, disputes and investigations, investment management, risk assurance services, tax services, and valuations. Thornycroft (1862) Limited can be reached at: New Farm Buckworth Road Alconbury Weston Huntingdon Cambridgeshire PE28 4JX United Kingdom Tel: 01480 891642 Web: http://www.thornycroft1862.com/ TIGER GARDEN: Appoints Joint Liquidators from Ashcrofts ------------------------------------------------------- Harjinder Johal and George Michael of Ashcrofts were appointed Joint Liquidators of Tiger Garden (Eton) Limited (formerly Lillymark Limited) on Aug. 22 for the creditors' voluntary winding-up procedure. The company can be reached at: Tiger Garden (Eton) Limited The Old House West Street Marlow Buckinghamshire SL7 2LX United Kingdom Tel: 01753 866 310 TRADEFRAME UPVC: Taps Ian C. Brown to Liquidate Assets ------------------------------------------------------ Ian C. Brown of Parkin S. Booth & Co. was appointed Liquidator of Tradeframe UPVC Limited on Aug. 24 for the creditors' voluntary winding-up procedure. The company can be reached at: Tradeframe UPVC Limited Unit 1 Berry Street Bootle Merseyside L20 8AT United Kingdom Tel: 0151 933 8883 TY MANUFACTURING: Brings In Administrator from Crawfords -------------------------------------------------------- David N. Kaye of Crawfords was appointed administrator of TY Manufacturing Limited (Company Number 04749388) on Sept. 4. The administrator can be reached at: Crawfords Stanton House 41 Blackfriars Road Salford Manchester Greater Manchester M3 7DB United Kingdom Tel: 0161 828 1000 Fax: 0161 832 1829 TY Manufacturing Limited can be reached at: 202 Monton Road Eccles Manchester Lancashire M30 9LJ United Kingdom Tel: 0161 789 1007 TYSON FOODS: Moody's Assigns Loss-Given-Default Ratings ------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology, the rating agency took these actions on Tyson Foods, Inc.: New ratings assigned: * Tyson Foods, Inc. -- U$1 billion senior unsecured revolving credit facility at Ba1 (LGD 3, 44%); -- Probability of default rating at Ba1; and * Lakeside Farms Industries Ltd. -- US$345 million senior unsecured term loan (originally US$353 million) at Ba1 based on full Tyson Foods, Inc. and Tyson Fresh Meats, Inc. guarantees (LGD 3, 44%). Ratings Upgraded: * Tyson Foods, Inc. -- Senior secured industrial revenue bonds to Baa2 from Ba1 based on full Tyson Foods, Inc. guarantee (LGD 2, 14%); and * Tyson Fresh Meats, Inc. -- Senior secured industrial revenue bonds to Baa2 from Ba1 based on full Tyson Fresh Meats, Inc. guarantee (LGD 2, 14%). Ratings Affirmed: * Tyson Foods, Inc. -- Corporate family rating at Ba1; -- US$1 billion 6.60% senior unsecured notes due 2016 at Ba1 (LGD 3, 44%); -- Short term rating at Not Prime; -- Speculative grade liquidity assessment at SGL-3; and * Tyson Fresh Meats, Inc. -- Senior unsecured debt at Ba1 based on the full guarantee of Tyson Foods, Inc. (LGD 3, 44%). Ratings Downgraded: * Tyson Foods, Inc. -- Senior unsecured debt with no guarantees to Ba2 from Ba1 (LGD 5, 88%); and -- Senior unsecured shelf registration with no guarantees to Ba2 from Ba1 (LGD 5, 88%). The outlook on all long-term ratings continues to be negative. The affirmation of Tyson's Ba1 corporate family rating reflects the fact that several elements of Tyson's overall business profile are very strong - such as its size, scale and diversification - and consistent with a mid-investment grade rating. However, these elements are more than offset by the severe volatility of the company's earnings and cash flow and its weak debt protection measures, which score well below investment grade. Moody's also continues to have concerns regarding some elements of Tyson's corporate governance, and shade its ratings as a result. Together these factors bring the corporate family rating down to the Ba1 level. Moody's has applied its new Probability-of-Default and Loss- Given-Default rating methodology to Tyson and its subsidiaries. Moody's current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology disaggregates these two key assessments in long-term ratings. The LGD rating methodology also enhances the consistency in Moody's notching practices across industries and improves the transparency and accuracy of our ratings as our research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to LGD6 (loss anticipated to be 90% - 100%). The assignment of Ba1 ratings to Tyson's various bank facilities, as well as the rating actions taken in relation to its various debt securities, reflects -- with one exception noted below -- Moody's new methodology for assigning ratings to individual securities and bank facilities rather than a change in the characteristics of any debt security or bank facility or in the company's fundamental credit profile. Moody's notes, however, that the higher rating on Tyson's 6.60% senior unsecured bonds reflects the benefits that these bonds receive from a recently established upstream guarantee from Tyson Fresh Meats which some other Tyson Foods, Inc. debt does not have. Tyson's SGL-3 speculative grade liquidity rating reflects concerns over the company's financial flexibility given continuing weakness in global protein markets. Tyson received covenant relief from its banks in March, April, and then again in July 2006. Tyson's ratings could come under downward pressure if earnings and cash flow remain weak - conceivably due to a prolonged continuation of the downturn in the beef processing industry - or its liquidity becomes constrained. Tyson's ratings could be downgraded if it is unable to improve its debt protection measures such that LTM Debt/EBITDA remains higher than 4.0 times at 9/30/07, and LTM EBIT/Interest remains below 2.0 times at 9/30/07. Given the recent downgrade, we do not expect an upgrade in Tyson's ratings in the near term. Tyson's rating outlook could stabilize if operating performance and returns on invested capital improve, and it is able to generate more stable and consistent earnings and cash flow. A stabilized rating outlook would also require Tyson to be able to boost earnings and/or reduce debt such that LTM Debt/EBITDA falls below 3.5 times, and LTM EBIT/interest rises above 2.5 times. With sales over US$26 billion, Tyson Foods is the world's largest protein processor with operations in beef, chicken, and pork processing, as well as branded packaged food manufacturing. VALUELIST LIMITED: Nominates Liquidator from Hodgsons ----------------------------------------------------- Lawrence I. Freedman of Hodgsons was nominated Liquidator of Valuelist Limited on Aug. 25 for the creditors' voluntary winding-up procedure. The company can be reached at: Valuelist Limited 219 Chester Road Manchester M15 4JE United Kingdom Tel: 0870 811 3600 Fax: 0870 811 3600 WATERSIDE KITCHENS: Alison M. Byrne Leads Liquidation Procedure --------------------------------------------------------------- Alison M. Byrne was appointed Liquidator of Waterside Kitchens and Bathrooms Limited on Aug. 10 for the creditors' voluntary winding-up procedure. The company can be reached at: Waterside Kitchens and Bathrooms Limited The Crystal Cave Commercial Road Penryn Cornwall TR108AF United Kingdom Tel: 01326 377 053 WESCO AIRCRAFT: Moody's Assigns Loss-Given-Default Ratings ---------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology, the rating agency took these actions on Wesco Aircraft Hardware Corp.: Ratings changed: * Wesco Aircraft Hardware Corp. -- First priority senior secured credit facilities to B1 (LGD 3) from Ba3 (LGD 2); and -- Corporate Probability of Default Rating (PDR) to B2 from B3. Ratings affirmed: -- Corporate family rating at B2; and -- Second lien credit facilities at Caa1 (LGD 5). The ratings were assigned between Sept. 6 and 16. The changes were made as a result of an adjustment to Moody's assumptions regarding expected loss given default recovery rates at the family level. The corporate family ratings were affirmed as there were no changes to Moody's opinion regarding the strength of the underlying credits. WESTON PLANT: Appoints Joint Administrators from Baker Tilly ------------------------------------------------------------ Adrian David Allen and Alec David Pillmoor of Baker Tilly were appointed joint administrators of Weston Plant Limited (Company Number 02567305) on Sept. 4. Headquartered in Birmingham, United Kingdom, Baker Tilly -- http://www.bakertilly.co.uk/-- is a leading independent firm of chartered accountants and business advisers in the United Kingdom. The firm's annual fee income is over GBP168 million and is part of a global network, which has 122 member firms in 85 countries as an independent member of Baker Tilly International. Headquartered in Leeds, United Kingdom, Weston Plant Limited wholesales and rents construction equipment. WIREBINDING COMPANY: Creditors' Meeting Slated for September 28 --------------------------------------------------------------- Creditors of The Wirebinding Company Limited (Company Number 05266286) will meet at 11:00 a.m. on Sept. 28 at: Turpin Barker Armstrong Allen House 1 Westmead Road Sutton Surrey SM1 4LA 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. 27 at: Martin C. Armstrong Administrator Turpin Barker Armstrong Allen House 1 Westmead Road Sutton Surrey SM1 4LA United Kingdom Tel: +44 (0) 20 8661 7878 Fax: +44 (0) 20 8661 0598 E-mail: tba@turpinba.co.uk Turpin Barker Armstrong -- http://www.turpinba.co.uk/-- is an independent four Partner firm of accountants, dedicated to ensuring our clients achieve their goals, maximizing profits and minimizing taxation liabilities. * BOOK REVIEW: Grounded: Frank Lorenzo and the Destruction of Eastern Airlines ------------------------------------------------------------- Author: Aaron Bernstein Publisher: Beard Books Paperback: 272 Pages List Price: US$34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1893122131/internetbankrupt Barbara Walters once referred to Frank Lorenzo as "the most hated man in America." Since 1990, when this work was first published and Eastern Airlines' troubles were front-page news, there had been many worthy contenders for the title. Nonetheless, readers sensitive to labor-management concerns, particularly in the context of corporate restructuring, will find in this book much to support Barbara Walters' characterization. To recap: For a few brief and discordant years, Frank Lorenzo was boss of the biggest airline conglomerate in the free world (Aeroloft was larger), combining Eastern Continental, Frontier, and People Express into Texas Air Corporation, financing his empire with junk bonds. TAC ultimately comprised a fleet of 452 planes and 50,000 employees, with revenues of $7 billion. But Lorenzo was lousy on people issues, famously saying, "I'm not paid to be a candy ass." The mid-1980's were a bad time to take that approach. Those were the years when the so-called Japanese model of management, which emphasized cooperation between management and labor, was creating a stir. The Lorenzo model was old school: If the unions give you any trouble, break 'em. That strategy had worked for him at Continental, where he'd filed Chapter 11 despite the airline's $60 million in cash reserves, in order to exploit a provision in the Bankruptcy Code allowing him to abrogate his contracts with the unions. But Congress plugged that Loophole by the time Lorenzo went to the mat with Charles Bryan, IAM chapter president. Lorenzo might have succeeded in breaking the machinists alone, but when flight attendants and pilots honored the picket line, he should have known it was time to deal. He didn't. Instead he tried again for a strategic advantage through the bankruptcy courts, by filing Chapter 11 in the Southern District of New York where bankruptcy judges were believed to be more favorably disposed toward management than in Miami where Eastern is headquartered, Eastern had to hide behind the skirts of its subsidiary, Ionosphere clubs, Inc., a New York Corporation, in order to get into SDNY. Six minutes later, Eastern itself filed in the same court as a related proceeding. The case was assigned to Judge Burton Lifland, whom Eastern's bankruptcy lawyer, Harvey Miller, knew well, but Lorenzo was mistaken if he believed that serendipitous lottery assignment would be his salvation. Judge Lifland a year later declared Lorenzo unfit to run the airline and appointed Martin Shugrue as trustee. Most hated man or not, one wonders whether the debacle was all Lorenzo's fault. Eastern unions, in particular the notoriously militant machinist, were perpetual malcontents, and Charlie Bryan was an anti-management zealot, to the point of exasperating even other IAM officers. The book provides a detailed account of the three-and-a-half period between Lorenzo's acquisition of Eastern in the autumn of 1986 and Judge Lifland's appointment of the trustee in April 1990. It includes the history of Eastern's pre-Lorenzo management, from World War I flying ace Eddie Rickenbacker to astronaut Frank Borman. ********* Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$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 * * *